World Bank to abandon goal to devote 45% of lending to climate change projects
The World Bank is abandoning its target to allocate 45% of its lending to climate change projects by 2026, according to an internal memo. The decision marks a shift in the bank's climate strategy and is expected to free up funding for other priorities, such as pandemic preparedness and conflict response.
Background
The World Bank previously committed to allocating 45% of its annual lending to climate-related projects by 2025 — a target it has now dropped. This target had been a key part of the Bank's push to integrate climate goals across all its operations, following pressure from wealthy donor countries and climate activists. Critics argued the 45% target inflated climate spending by counting projects with only marginal climate benefits. The Bank's new leadership (President Ajay Banga, who took over in 2023) has been pushing for a broader focus on "livable planet" goals that include adaptation, energy access, and development, rather than a narrow climate quota. The decision also reflects pushback from developing-country borrowers, who want loans primarily for poverty reduction and infrastructure, not climate conditions imposed by rich nations.