The World Bank Group has announced that it is abandoning its commitment to dedicate 45% of its annual lending to projects delivering climate co-benefits (World Bank statement, 29/06/2026). “We will retire the 45% climate co-benefits target and the 35% target in the Climate Change Action Plan (CCAP). We have done significant work in answering client demand and needs. Further progress on outcomes will continue to be driven by client ambition and enabled by the work of the Knowledge Bank, consistent with countries’ international commitments”, said the organization’s press release.
The World Bank pledged to end financing for upstream oil and gas projects starting in 2019, while maintaining the possibility of supporting natural gas investments in countries facing urgent energy needs and lacking short-term renewable energy alternatives, provided such investments do not result in long-term carbon lock-in. The 45% climate co-benefits target was subsequently introduced in 2023.
The organisation had faced pressure from the Trump administration to remove its climate lending target. The United States holds the greatest influence over World Bank decisions, accounting for approximately 16% of the voting power in the International Bank for Reconstruction and Development (IBRD), the institution’s lending arm. According to the organization’s website, the United States is the only World Bank Group shareholder with veto power over certain changes to the Bank’s structure.
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