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illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:
🗞️ Driving the news: The World Bank is adjusting its public messaging on climate to navigate growing political pressure from a potential second Trump administration
• While the bank’s climate policies remain largely unchanged—including its pledge to allocate 45% of annual lending to climate-related projects—its tone has shifted to emphasize energy diversity, job creation, and energy access
• President Ajay Banga has highlighted nuclear and natural gas alongside renewables, reflecting a more politically palatable “all of the above” strategy for U.S. Republicans
🔭 The context: The U.S., as the World Bank’s largest shareholder, plays a critical role in funding, particularly for initiatives aiding the poorest nations
• Under President Biden, the U.S. pledged $4 billion to the International Development Association, the bank’s concessional arm
• However, with rising Republican influence and allies of former President Trump calling for a U.S. withdrawal from the World Bank, the institution is moderating its rhetoric to avoid jeopardizing this support.
🌍 Why it matters for the planet: This shift underscores a growing tension between political pragmatism and climate ambition within multilateral development banks
• While the World Bank continues investing in climate adaptation and mitigation, its tempered messaging may reduce momentum for transformational change
• The broader risk lies in diluting global leadership on climate finance at a time when support for vulnerable nations is urgently needed
⏭️ What's next: A review of U.S. participation in international institutions is expected by August, with potential implications for World Bank funding and direction
• Meanwhile, Banga’s energy strategy, including renewed support for nuclear power, will go to the board in June
• Shareholder negotiations, especially with the U.S. and European partners, will determine how far the bank can maintain climate commitments without alienating key backers
• The IMF has also scaled back its climate rhetoric, suggesting a wider institutional recalibration may be underway
💬 One quote: “I think the institutions right now are walking a tightrope between policing the biggest shareholder and having legitimacy with the rest of the members.” – Kevin Gallagher, Global Development Policy Center, Boston University
📈 One stat: 45% – the share of the World Bank’s annual lending earmarked for climate-related projects in fiscal year 2025.
See on illuminem's Data Hub™ the sustainability performance of the Bank of America and its peers Royal Bank of Canada, Swedbank, and Deutsche Bank
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