World Bank Scraps Climate Financing Targets After US Criticism
(Bloomberg) -- The World Bank decided to remove quantitative targets for incorporating climate objectives into its financing, months after criticism from the US — its biggest shareholder — that it should get back to focusing on economic development.
The World Bank Group will still work to support borrowers “in delivering on their own ambitions as set out in their national plans” for climate objectives, it said in a statement Monday.
It also will continue with its climate change action plan, the so-called CCAP, but will now retire a 45% co-benefits target. The term refers to funding aimed at both supporting climate action while also furthering development objectives.
“We will complete our shift from inputs to outcomes to maximize development impact,” the Washington-based bank said.
Monday’s move follows strong Trump administration pushback against the bank’s climate change initiatives. Treasury Secretary Scott Bessent said in April that the bank’s 45% target for climate finance “breeds inefficiency, distorts economic decision making and moves the bank away from its core mission.”
Bessent Expectation
Bessent also said in April he expected the bank to “immediately shift its myopic focus on climate and financing volumes to one that emphasizes high-quality, durable projects rather than shaping and selecting projects to chase arbitrary financing targets.”
Last year, 48% — over $39 billion — of the bank’s financing had climate co-benefits, up from a 44% share in 2024, according to the bank.
At the request of the World Bank’s board, the lender’s independent evaluation group will now evaluate the plan, the statement also said, without offering a timeframe for the review.
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