A joint statement released this week by 19 of the World Bank’s 25 executive directors voiced strong backing for the institution’s climate initiatives, setting them at odds with the United States, its biggest shareholder, and a few allied nations that withheld support.
The executive directors for the U.S., Russia, Kuwait and Saudi Arabia declined to sign the document; Japan and India – both negotiating trade deals with the U.S. – abstained, a source familiar with the matter said.
The directors, who represent 120 countries, issued the statement after a board meeting with World Bank management, underscoring their expectation that the bank will stick to its climate change action plan goals, including a pledge to devote 45% of its annual financing to climate-related projects.
The document reflects the deep divide separating most other countries from the U.S. and a handful of allies over climate change. It comes days before the start of the annual meetings in Washington of the World Bank and International Monetary Fund. The U.S. is the largest shareholder in both institutions and plays a big role in shaping their work and agendas.
European Union’s Support
It was reported this week that the European Union will double down on its support for reforming global development banks to do more to fight climate change.
In April, at the last IMF-World Bank meetings, U.S. Treasury Secretary Scott Bessent called on both institutions to refocus on their core mandates and said they were devoting too much time and resources to topics like climate change.
The leaders of both institutions have gone largely silent on climate change since U.S. President Donald Trump took office, and the issue is not highlighted in next week’s agenda. Trump last month dismissed climate change as a “con job.”
The statement also called for aligning the bank’s work with the Paris climate accord, from which U.S. President Donald Trump withdrew shortly after taking office in January. It also called for continuing to factor climate change into its core diagnostic work.
“We reaffirm our support for the World Bank Group’s leadership role across the (International Financial Institutions) on climate and nature action, advocating for and supporting countries’ demand for low carbon, climate resilient, and nature positive pathways,” the statement said.
The directors also called for further work in some areas under the bank’s current Climate Change Action Plan, supporting workers as their countries transition away from coal, a shift described as “complex but essential for energy transition.”
More work was also needed in helping countries design and implement long-term national climate and development plans, and developing effective carbon markets, the letter said.
The statement listed several areas that were being demanded by client countries but are not covered by the bank’s current climate change plan, including addressing pollution, mainstreaming nature and scaling adaptation and resilience efforts.
(With inputs from Reuters)
