The World Bank Group said on June 29 that it will retire its 45% climate co-benefits target and the earlier 35% target, while extending its Climate Change Action Plan beyond its June 2026 expiry.
The bank said its climate work will remain client driven and aligned with countries’ national plans and Nationally Determined Contributions. It said the change reflects a shift in management and scorecard reporting from input targets toward outcomes, and that the board has asked the Independent Evaluation Group to review the Climate Change Action Plan.
The bank said it will continue to track and report net greenhouse gas emissions and the number of beneficiaries with enhanced resilience to climate risks. It will also continue reporting progress, including climate co-benefits, to the board, continue participation in joint multilateral development bank work, and maintain project-level and quarterly and annual portfolio reporting through existing channels. It also said it will explore how to structure engagement on adaptation, nature and pollution.
The 45% target was announced in 2023 as a goal for annual financing with climate co-benefits, replacing an earlier 35% objective. Reuters and other outlets reported the decision after the U.S. administration had called for ending the target, with Treasury Secretary Scott Bessent saying in April that the 45% climate finance goal should be removed.