Developing countries face the possible shelving of a crucial green action plan at the IMF and World Bank spring meetings this week, as the US administration pressures institutions to downplay climate change. Insiders say the White House is forcing a choice between opening a rift or sidelining climate priorities, even as the oil crisis underscores the need for renewable energy investment.
The World Bank’s current Climate Change Action Plan (CCAP) expires in June, but a replacement may be delayed. The US Treasury Secretary Scott Bessent demanded removal of some climate finance targets last autumn, insisting on an “all-of-the-above” energy approach including fossil fuels. The US holds about 17% of World Bank capital, giving it significant influence.
Senior staff at international finance institutions report “self-censoring” on climate language in reports and projects. Some leading countries prefer not to push for a new CCAP, which experts warn would be disastrous for developing nations already paying billions for climate damage. Mohamed Adow of Power Shift Africa called the situation “beyond absurd” amid an escalating oil crisis.
The World Bank is the largest source of climate funding, and its current CCAP targets 35% of funding for climate activities. At COP29, countries agreed on $1.3tn annual flows to developing nations by 2035, with $300bn from developed countries. The World Bank’s last financial year saw 48% of financing with climate co-benefits.
A World Bank spokesperson said the group supports clients in achieving low-carbon, resilient infrastructure. However, critics fear the spring meetings will test whether these institutions can respond to the majority of members or be swayed by powerful minorities.
