Climate finance sidelined

Climate finance slipped behind war, oil-shock fears and growth worries at the International Monetary Fund and World Bank spring meetings in Washington last week. (worldbank.org, downtoearth.org.in) The 2026 meetings ran from April 13 to 18, and the World Bank’s own wrap-up framed the week around “jobs and growth” rather than climate. The Bank’s public agenda highlighted water, energy, agriculture, health and gender sessions, while climate was less visible in the main messaging. (worldbank.org, worldbank.org) The sharpest resistance came from the United States. In its April 16-17 statement to the International Monetary and Financial Committee, Treasury Secretary Scott Bessent said the International Monetary Fund had drifted into “climate change, gender, and social issues” and should return to its “core mandate.” (imf.org) That argument spilled into the World Bank’s climate plan, which expires at the end of June. Reuters reported on April 17 that France and other shareholders were searching for a way to keep the Bank’s climate-finance strategy alive after its scheduled end date. (wtvbam.com) The plan at issue is the World Bank Group’s 2021-2025 Climate Change Action Plan, a rulebook for how much of its lending should carry climate benefits. In December 2023, the Bank raised its target and said 45% of annual financing in fiscal 2025 would go to climate-related projects. (worldbank.org, ideas.repec.org) The same strategy also promised to double adaptation finance to $50 billion over fiscal years 2021 to 2025. Adaptation means spending on tougher roads, water systems, farms and cities so countries can absorb floods, heat and drought, not just cut emissions. (ideas.repec.org, documents1.worldbank.org) Critics said weakening that plan would hit poorer countries first because the Bank is still the biggest source of long-term development lending for many governments. African Climate Wire reported that possible changes under discussion included dropping the 45% target or loosening rules meant to keep projects aligned with the 1.5 degrees Celsius warming limit. (africanclimatewire.org) Other shareholders pushed back. France’s development minister, Eleonore Caroit, told Reuters that governments were trying to preserve the “basic benefits” of the climate strategy even if the formal plan lapses on June 30. (y94.com) The United States says its position is about focus, not withdrawal from development finance. Bessent’s statement said the Fund and Bank should prioritize growth, macroeconomic stability, poverty reduction and supply chains for energy and critical minerals. (imf.org, africanclimatewire.org) Delegates left Washington without a clear replacement for the expiring climate plan. That left the spring meetings with a narrower message: in a week dominated by conflict and economic shock, climate finance had less room at the top table. (downtoearth.org.in, wtvbam.com)