The world Bank Group has abandoned its commitment to direct 45% of its annual lending toward climate co-benefits.
For years, the bank directed a specific portion of its funding toward projects that tackle environmental issues.
These projects include but are not limited to: building wind farms or solar panels instead of coal plants and helping countries survive droughts, floods and extreme weathers.
However, in a statement issued in late June, that benchmark, which was previously 35%, has now been removed.
This is despite the bank exceeding its own goals in the 2025 financial year with a 48% funding on climate. This was equivalent to about N$838 billion.
According to the World Bank, it is not cutting climate funding but rather extending its Climate Change Action Plan (CCAP), with a focus on outcomes rather than inputs.
The bank says by reducing targets, it will prioritise the measurable impact of projects on greenhouse gas emissions and resilience.
“In line with our work on the scorecard, we will complete our shift from inputs to outcomes to maximise development impact. We will retire the 45% climate co-benefits target and the 35% target in the CCAP,” the World Bank says.
THE GENESIS OF THE THE END
During the World Bank spring meetings in Washington, United States (US), which is the bank’s largest shareholder, US treasury secretary Scott Bessent said the climate targets are distracting the bank from its core mission of development and poverty reduction.
“The World Bank must maintain focus on its core mission of reducing poverty and increasing economic growth. It also means jettisoning the World Bank Group’s 45% climate finance target that breeds inefficiency, distorts economic decision making, and moves the bank away from its core mission,” Bessent said.
The Trump administration has been clear on its lack of interest in renewables and advocacy for fossil fuels.
Within the bank’s board, the US was supported by Russia and Saudi Arabia, overriding the opposition of nearly 100 nations, including China.
After the meeting, more than 80 civil society organisations, in a direct letter addressed to World Bank Group president Ajay Banga and managing director Paschal Donohoe, called out management for breaking past promises.
Five of these organisations are currently operating in Namibia: the Economic Justice Network of Fellowship of Christian Councils in Southern Africa, Amnesty International, Christian Aid, Climate Action Network Africa and Misereor.
The letter points to a governance breach under a replenishment agreement approved in March 2025, under which the World Bank officially committed to developing a successor to the CCAP.
The organisations are demanding an immediate one-year extension of the 2021-2025 CCAP, giving time to draft a new five-year plan through transparent public consultations.
“We reject the argument made by some World Bank shareholders that climate change is not a core concern of development finance institutions in 2026.
“We call for a further one-year extension of the 2021-2025 CCAP, allowing time for the development of a new five-year CCAP,” reads the letter.
