The World Bank Group (WBG) is an international organization that provides significant funding to developing nations. Previously, the Group adopted financing targets under its climate action plan. These targets ensured that significant portions of funding would only be available to projects with climate benefits. This week, the Group announced it’s nixing these targets, stating in a press release:
“In line with our work on the scorecard, we will complete our shift from inputs to outcomes to maximize development impact. We will retire the 45% climate co-benefits target and the 35% target in the CCAP. We have done significant work in answering client demand and needs. Further progress on outcomes will continue to be driven by client ambition and enabled by the work of the Knowledge Bank, consistent with countries’ international commitments.”
The decision to remove the targets comes amid significant pressure from the United States. The current presidential administration has criticized the WGB’s targets and encouraged their removal. While the WBG is capitulating on the targets, they are keeping the Climate Change Action Plan in place. Without tangible metrics in place, it’s unclear how much less effective the action plan will be.
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