Overview
- The World Bank retired its 45% and 35% climate co-benefits lending targets when it extended the Climate Change Action Plan on June 29, 2026.
- The change followed sustained pressure from the United States and Treasury Secretary Scott Bessent and exposed a split on the board that left France and other directors urging the targets be kept.
- Bank management framed the move as a shift from input quotas to outcome-focused 'smart development' and said it will keep tracking and reporting net greenhouse gas emissions and project climate indicators.
- Civil society groups warned that dropping numeric targets removes a clear accountability tool and could make the level of future climate finance less predictable for developing countries.
- The bank had been exceeding the target in 2025, reporting roughly $50.8 billion or 48% of financing with climate co-benefits, and the Independent Evaluation Group review and client demand will now shape how much of that work continues.