The World Bank has removed quantitative targets for climate objectives from its financing framework, bowing to sustained pressure from the United States to refocus the institution on economic development and poverty alleviation.
The move marks a significant retreat from the bank’s climate ambitions, which had included directing 45% of its annual lending toward climate-related projects. US Treasury Secretary Scott Bessent had publicly labeled those targets as “distortionary” and “nonsensical,” arguing they pulled the institution away from its core mission.
What the World Bank is walking back
The World Bank’s Climate Change Action Plan set the 45% lending target as a cornerstone of its sustainability strategy. That plan is set to expire on June 30, 2026, and the removal of quantitative benchmarks effectively guts its most measurable commitment before the clock even runs out.
Here’s the thing: the bank wasn’t just hitting that target. It was exceeding it. In fiscal year 2025, the World Bank Group delivered $50.8 billion in development finance with climate co-benefits, representing 48% of its total financing. In other words, the institution scrapped a goal it was already surpassing.
