For over three decades, the World Bank has sought to reposition itself as a champion of sustainable development, repeatedly emphasising that poverty reduction and economic growth cannot be secured without addressing climate change, environmental degradation, and the need to build resilience. This trajectory now appears to be shifting. In June, the Bank announced that it is ending one of its most prominent climate commitments which required 45 per cent of its financing to generate "climate co-benefits".

The World Bank claims that rather than tracking how much finance is labelled as climate-related, it is more important to focus on whether projects being financed by it achieve their stated development outcomes. On the surface, this appears to be a sensible proposition. Yet, this powerful financial institution's decision to abandon climate finance targets reflects troubling political realities.

The US, the World Bank's largest shareholder, has dramatically altered its climate........

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