The World Bank Group announced it will drop its goal of directing 45% of its lending toward climate-related projects, according Reuters. Instead, it will focus on measuring the real-world impact of investments, such as economic growth, job creation, resilience, and emissions reductions.
The move reflects a debate among shareholders, with the US pushing for a stronger focus on development outcomes and some countries wanting to maintain stronger climate commitments. Critics worry the change could weaken global climate finance efforts, while supporters say it will make funding more effective.
