The World Bank announced on June 29, 2026, that it will abandon its target of dedicating 45 percent of its annual lending capacity to climate change projects.
The institution is shifting its focus toward development outcomes rather than input goals following pressure from the United States administration.
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World Bank President Ajay Banga has altered the strategic direction to prioritize employment growth alongside resilient infrastructure development.
Banga described the new approach as "smart development."
The policy shift follows directives from the Trump administration to return the multilateral lender to its core mandate of economic development and financial stability.
U. S.
officials had previously criticized the bank's focus on climate goals under the Biden administration's 2023 framework.
The decision comes as the bank's executive board requested an independent evaluation of its long-standing climate strategies.
New Framework and Continued Monitoring
The lender stated it will maintain its oversight of global greenhouse gas emissions and adaptation benefits across its global portfolio.
Management will proceed with tracking specific climate indicators on a quarterly and annual basis.
"Our framework has served its purpose well, embedding smart development in all we do in response to client needs and priorities.
We will therefore extend the CCAP," stated the World Bank in an official release.
The institution plans to reform its long-term financial engagement regarding ecological preservation and environmental risk mitigation.
Officials noted that client countries continue to exhibit significant demand for projects with climate co-benefits.
