The World Bank Group announced on Monday that it will "discontinue" its previous target of allocating 45% of its annual lending resources to projects with climate co-benefits, but will extend its long-term Climate Change Action Plan (CCAP), which was originally set to expire on Tuesday.

The institution had been under pressure from the Trump administration to abandon the climate lending target set in 2023. In a statement, the Bank said it will complete its shift to focus on lending outcomes rather than input targets.

World Bank President Ajay Banga, initially tasked with squeezing more climate lending from the Bank's balance sheet, has shifted focus to "smart development," which aims to create jobs while delivering climate-related benefits such as drought-resistant agriculture, storm-resilient infrastructure, and renewable energy where appropriate.

The World Bank stated that, at the request of its Executive Board, its Independent Evaluation Group will review the Climate Change Action Plan (CCAP). The plan was initially adopted in 2016 as a rolling five-year program.

The Bank's previous target of dedicating 35% of lending resources to climate-related projects has also been dropped. However, Bank officials noted that client country demand for projects with climate co-benefits remains strong.

In October of last year, executive directors from 18 shareholder countries, including France, signed a letter supporting the World Bank's continued work on climate change. The largest shareholder, the United States, refused to sign, as did the executive directors for Russia, Kuwait, and Saudi Arabia, while India and Japan abstained.

U.S. Treasury Secretary Scott Bessent in 2025 called for the World Bank and International Monetary Fund to return to their core missions of development and financial stability, arguing the institutions had gone too far on climate, gender equality, and other areas opposed by the Trump administration. In April of this year, he stated that the World Bank's "short-sighted" focus on climate finance targets must change.

French Development Minister Éléonore Caroit made a last-minute appeal last week for the World Bank to maintain its climate finance targets.

The World Bank stated: "Our current framework is delivering results, integrating the concept of sustainable development into all our work to align with the needs and development priorities of borrowing countries. Therefore, we will extend the implementation of the Climate Change Action Plan (CCAP)."

The Bank said management will continue to track two climate performance indicators under the CCAP: global net greenhouse gas emissions and the number of people benefiting from enhanced climate resilience. The Bank will produce relevant assessments for all projects and issue separate quarterly and annual reports for all lending operations.

The Bank also stated: "We will study and explore ways to optimize our collaboration model to better advance work on climate adaptation, nature conservation, and pollution control."