The World Bank has formally abandoned its commitment to direct 45 percent of its annual financing toward projects with climate co-benefits, marking a significant departure from its previous rigid lending targets.
The decision, confirmed by RFI, removes a key metric that had guided the institution's allocation of capital toward environmental sustainability over recent years.
The move has prompted immediate warnings from development advocates and economists that poorer nations, particularly across Africa, could face reduced support for critical climate adaptation and mitigation infrastructure.
Without the binding target, there is concern that climate-focused projects may lose priority in favor of other development needs, potentially slowing progress on emissions reduction and resilience building in vulnerable regions.
This policy shift reflects a broader recalibration of the World Bank's approach to development finance.
By retiring the specific percentage goal, the institution appears to be moving away from prescriptive quotas toward a more flexible framework that balances climate objectives with immediate economic and social priorities.