The World Bank has formally abandoned its longstanding target of directing 45 percent of its annual financing toward projects with climate co-benefits.
The decision marks a significant departure from the institution’s previous rigid lending mandates, signaling a strategic pivot in how the global lender prioritizes environmental objectives within its portfolio.
Developers and advocates for emerging markets have warned that the move could result in reduced support for poorer nations, particularly across Africa.
Developers and advocates for emerging markets have warned that the move could result in reduced support for poorer nations, particularly across Africa.
These regions have historically relied on the World Bank’s climate-focused financing to fund adaptation and mitigation projects, and the removal of the specific target introduces uncertainty regarding future capital allocation.
The shift reflects a broader recalibration of the World Bank’s approach to climate finance, moving away from fixed percentage goals toward a more flexible framework.
While the institution has not specified a replacement metric, the absence of a binding target suggests that climate considerations may now compete more directly with other development priorities for limited resources.