World Bank Abandons Climate Finance Goals Amid US Influence
In a significant policy change announced on June 30, 2026, the World Bank has abandoned its specific climate financing targets. This decision comes after enduring pressure from the United States, the bank’s largest shareholder, to concentrate on primary economic development objectives.
The institution has indefinitely extended its Climate Change Action Plan (CCAP), but has officially discarded two critical benchmarks: a 45% climate co-benefits financing target and a 35% secondary target. These targets have been guiding the bank’s lending practices since 2021. “We will complete our shift from inputs to outcomes to maximize development impact,” stated the World Bank Group in an official press release.
This decision comes after months of pressure from the Trump administration, which has labeled climate policy a “hoax”. The administration has urged international financial institutions to amplify support for fossil fuel infrastructure. U.S. Treasury Secretary Scott Bessent had publicly urged the bank to discard what he termed its “distortionary” climate goals. Since the CCAP’s inception, the World Bank’s climate funding had nearly doubled — from $21 billion in 2021 to $39 billion in 2025. This upward trajectory is now uncertain.
Despite the shift, the World Bank has stated it will continue to support borrower nations “in delivering on their own ambitions as set out in their national plans” for climate objectives. However, critics caution that the removal of rigid targets will significantly undermine accountability. European governments and small island states had lobbied intensely to retain the plan, indicating a profound divide among the bank’s shareholders.
Source: Bloomberg — World Bank Abandons Climate Financing Goals Amid US Influence