World Bank scraps climate finance targets after U.S. criticism

📌 Summary:

• Following disapproval from the U.S. administration, the World Bank Group said it will retire its dedicated funding targets for climate projects
• In a June 29 statement on its Climate Change Action Plan (CCAP), the Bank announced it will drop the 45% climate co-benefits target and the 35% CCAP target
• The Bank framed this as a "shift from inputs to outcomes" to maximise development impact and respond to client demand
• Concern for developing countries: dilutes multilateral climate finance commitments at a time when the Global South faces an estimated multi-hundred-billion-dollar climate funding gap; weakens accountability of MDBs on climate goals

🎯 UPSC Relevance: GS3 (Environment – Climate Change/Climate finance) and GS2 (International institutions) — role of MDBs in climate finance, North-South equity, and how great-power pressure reshapes multilateral priorities.

📝 Prelims Facts:

• The World Bank Group comprises IBRD, IDA, IFC, MIGA and ICSID
• Climate co-benefits target = share of lending contributing to climate action
• Climate finance is central to UNFCCC/Paris Agreement obligations of developed nations

🔑 Key Term: Climate Co-benefits Target — a commitment that a fixed share of an institution's total financing must generate measurable climate mitigation or adaptation benefits.