World Bank drops 45% climate finance target amid shift towards broader development goals

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1. https://www.clearbluemarkets.com/knowledge-base/the-world-banks-new-climate-approach-smart-development-or-setback – Please view link – unable to able to access data
2. https://www.wri.org/news/statement-world-bank-extends-climate-change-action-plan-drops-key-climate-finance-target – The World Resources Institute reports that the World Bank Board of Directors has decided to drop its goal of having 45% of its investments support climate mitigation and adaptation. The Board extended the rest of the Climate Change Action Plan (CCAP), which was set to expire, and agreed to conduct a review of the Plan. The elimination of the 45% climate finance goal came at the demand of the current United States administration, along with a small number of additional countries, including Russia and Saudi Arabia. This decision was made despite resistance from a large coalition of developing nations and other shareholders who called for continued climate finance commitments.
3. https://www.worldbank.org/en/news/statement/2026/06/29/update-on-the-world-bank-group-climate-change-action-plan – The World Bank Group announced an extension of its Climate Change Action Plan (CCAP) while retiring its 45% climate co-benefits target. The Bank stated that its future work will continue to be driven by the priorities of client countries, supporting their national development plans and Nationally Determined Contributions (NDCs) under the Paris Agreement. The Bank emphasized that climate action will continue to be integrated into development projects, with lending evaluated based on economic and social outcomes rather than the percentage of financing labeled as climate-related.
4. https://iaspoint.com/world-bank-withdraws-45-percent-climate-finance-target/ – IASPOINT reports that the World Bank announced on June 29, 2026, that it has retired its 45% annual-lending climate target and the 35% CCAP target. The Climate Change Action Plan (CCAP) is extended; the Bank will shift from input targets to outcome metrics while continuing scorecard reporting and evaluations. The change follows sustained pressure from the United States, and the Bank says future lending will be client-driven and aligned with national development priorities. The shift affects predictability, accountability, and measurement of climate finance for low- and middle-income countries.
5. https://www.devex.com/news/scoop-world-bank-considers-scrapping-45-climate-finance-target-112730 – Devex reports that the World Bank management may remove the target to spend 45% of its lending on climate finance from its Climate Change Action Plan (CCAP), under pressure from its largest shareholder — the United States — to weaken climate targets. In just two weeks, the bank’s only plan for meeting global climate targets and climate finance commitments will lapse after a one-year extension. The plan, originally established in 2021 and already extended one year past its initial 2025 expiration date, lays out the institutional roadmap for responding to climate change and avoiding projects that worsen global warming.
6. https://globbrief.com/en/news/2026-06-30-world-bank-abandons-45-climate-lending-target/ – Globbrief reports that the World Bank dropped specific climate finance targets following pressure from the U.S. Treasury, shifting focus to development outcomes. The removal of binding climate finance percentage targets signals a major policy shift for the World Bank, potentially reducing the prioritization of green projects in developing nations in favor of broader development goals demanded by client countries. Observers will monitor the World Bank’s future lending reports to see if the actual volume of climate finance decreases without specific percentage targets, and watch for reactions from other shareholder nations regarding the U.S. influence on the bank’s agenda.
7. https://www.world-energy.org/article/55593.html – World-Energy reports that the World Bank Group said on June 29 it will ‘retire’ its previous goal to devote 45% of its annual lending resources to projects with climate co-benefits, but extend its longstanding Climate Change Action Plan that was due to expire. The development lender, which had been under pressure from the Trump administration to abandon the climate lending target adopted during the Biden administration in 2023, said in a statement it would complete a shift to focusing on lending outcomes rather than input goals. World Bank President Ajay Banga, who was initially charged with squeezing more climate lending resources from the bank’s balance sheet, has shifted his focus to ‘smart development,’ which aims to boost job opportunities while still providing climate-related benefits such as drought-resistant agriculture or storm-resistant infrastructure and renewable energy where appropriate.