The World Bank Group (WBG), along with the other multilateral development banks (MDBs), plays a critical role in helping its client countries transition to low-carbon economies and strengthen their resilience to the impacts of climate change. In late June, however, following pressure primarily from the United States, the WBG abandoned its target of allocating 45 per cent of its financing to climate-related activities. The Bank's broader Climate Change Action Plan, which was due to expire on 30 June 2026, was nevertheless extended.
What are the implications for the WBG's work on climate change? How can 'climate-progressive' MDB shareholders navigate these challenging dynamics? And what might the US administration do next?
To find out, Anna and Bhargabi speak with Melanie Robinson (Global Climate, Economics and Finance Program Director at the World Resources Institute) and Dr Nancy Lee (Senior Fellow and Director for Sustainable Development Finance at the Center for Global Development).
