World Bank considers scrapping 45% climate finance target

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Devex or enjoy below:

🗞️ Driving the news: The World Bank is considering removing the 45% climate finance target from its Climate Change Action Plan (CCAP), a flagship benchmark that guides the bank’s lending toward climate-related projects
• Pressure from the United States, the bank’s largest shareholder, is reportedly driving negotiations to weaken the target or let the framework lapse when the current one-year extension expires on June 30, 2026

🔭 The context: The CCAP, established in 2021 and extended through mid-2026, outlines how the World Bank integrates climate considerations into lending decisions and aligns investments with the Paris Agreement
• Stripping the 45% benchmark would remove the institution’s formal guideline for allocating lending toward climate mitigation and adaptation projects, potentially altering its role as a global climate finance leader

🌍 Why it matters for the planet: Without a binding climate finance target, the World Bank may channel less funding toward low-carbon and climate-resilient projects, slowing progress on global decarbonization and adaptation
• This could reduce support for developing countries that rely on multilateral climate financing to implement renewable energy, resilient infrastructure, and disaster-risk reduction programs, exacerbating global climate vulnerability

⏭️ What’s next: World Bank management will decide before June 30 whether to remove, revise, or retain the 45% climate finance target
• Stakeholders and climate experts are watching closely, as the decision could influence the bank’s alignment with global climate commitments and affect funding flows to developing nations

💬 One quote: “The U.S. has not come to the discussions on CCAP in good faith, but approached the conversations with no intention to compromise.” – Devex sources, June 2026

📈 One stat: 45% of World Bank lending was targeted toward climate finance under the current CCAP framework, representing its flagship climate benchmark

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