World Bank abandons 45% climate finance target amid US pressure but retains climate action plan
By
Josh Gabbatiss
Summary
The World Bank has abandoned its target for 45% of funding to developing countries to be classified as "climate finance," following pressure from the Trump administration. Despite this, the bank has retained its broader climate action plan due to support from both developed and developing country shareholders. As the largest provider of climate finance globally, distributing $39.2bn in 2025 primarily as loans, this shift raises questions about the future of international climate funding amid widespread aid cuts.
Source
Carbon BriefWorld Bank abandons 45% climate finance target amid US pressure but retains climate action plancarbonbrief.orgKey quotes
· 3 pulledThe World Bank has abandoned a target for 45% of the funding it gives developing countries to be 'climate finance', following months of pressure from the Trump administration in the US.
The multilateral development bank (MDB) – which is headquartered in Washington DC – is the single largest provider of climate finance globally, distributing $39.2bn in 2025 alone, primarily as loans.
a concerted effort by developed- and developing-country shareholders has seen the bank hold onto its 'action plan' for tackling climate change.
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