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DanChurchAid raises concerns over World Bank’s climate finance target decision – EnviroNews
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DanChurchAid has expressed concern over the World Bank’s decision to retire its climate finance target, warning that the move could weaken global efforts to address climate change and undermine support for developing countries.
The World Bank announced on Monday, June 29, 2026, that it would retire its target of directing 45 percent of its financing toward projects with climate co-benefits, while extending its broader Climate Change Action Plan (CCAP).
“We will retire the 45 percent climate co-benefits target and the 35 percent target in the CCAP. We have done significant work in answering client demand and needs. Future progress on outcomes will continue to be driven by client ambition and enabled by the work of the Knowledge Bank, consistent with countries’ international commitments,” the World Bank said in a statement.
The institution said it would continue tracking and reporting its scorecard indicators on net greenhouse gas emissions and the number of beneficiaries with enhanced resilience to climate risks.
It added that it would continue strengthening its climate outcome measurement methodology while working with other Multilateral Development Banks (MDBs).
Commenting on the decision on Wednesday, July 1, DanChurchAid Global Climate Lead, Mattias Söderberg, described the move as troubling, saying the climate crisis requires greater, not reduced, financial commitment.
“This is deeply worrying. The climate crisis has not become smaller. If anything, the need for climate finance is greater today than ever before,” Söderberg said.
He said the World Bank has played a leading role in mobilizing international climate finance, and any perceived weakening of its commitment sends an unfavorable message at a time when climate action is becoming increasingly urgent.
“The World Bank has been one of the engines of international climate finance. Weakening its climate commitment sends the wrong signal at the wrong time,” he said.
Söderberg said his greatest concern is the long-term implications of the decision.
“My biggest concern is not today’s decision alone, but what it could mean over the coming years. If climate is no longer treated as a strategic priority, we risk seeing less investment in climate solutions and more investment in activities that increase emissions,” he said.
The decision comes as countries have committed to working toward mobilizing at least $300 billion annually by 2035 to help developing nations address climate change and its impacts.
According to Söderberg, achieving that goal will depend heavily on strong support from multilateral development banks.
“The promise to mobilise $300 billion a year for developing countries depends on strong multilateral development banks. If the World Bank steps back, that promise will become hard to achieve,” he said.
He added that climate finance extends beyond financial resources and is also critical for maintaining trust between developed and developing nations.
“Climate finance is not only about money. It is also about trust. Developing countries have repeatedly been promised support to tackle a crisis they did little to create. If those promises were to become weaker, confidence in international cooperation will also suffer,” Söderberg said.
The World Bank’s decision follows months of political pressure from the United States and marks a significant policy shift for one of the world’s largest providers of climate finance.
While retiring the financing target, the World Bank has maintained that it remains committed to supporting countries in addressing climate change through continued investment, technical expertise, and monitoring of climate-related outcomes.
By Steria Manda, AfricaBrief
