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Welcome to Carbon Brief’s China Briefing.

China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

Solar and wind eclipsed coal

‘FIRST TIME IN HISTORY’: China’s total power capacity reached 3,890 gigawatts (GW) in 2025, according to a National Energy Administration (NEA) data release covered by industry news outlet International Energy Net. Of this, it said, solar capacity rose 35% to 1,200GW and wind capacity was up 23% to 640GW, while thermal capacity – which is mostly coal – grew 6% to just over 1,500GW. This marks the “first time in history” that wind and solar capacity has outranked coal capacity in China’s power mix, reported the state-run newspaper China Daily. China’s grid-related energy storage capacity exceeded 213GW in 2025, said state news agency Xinhua. Meanwhile, clean-energy industries “drove more than 90%” of investment growth and more than half of GDP growth last year, said the Guardian in its coverage of new analysis for Carbon Brief. (See more in the spotlight below.)

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DAWN FOR SOLAR: Solar power capacity alone may outpace coal in 2026, according to projections by the China Electricity Council (CEC), reported business news outlet 21st Century Business Herald. It added that non-fossil sources could account for 63% of the power mix this year, with coal falling to 31%. Separately, the China Renewable Energy Society said that annual wind-power additions could grow by between 600-980GW over the next five years, with annual additions of 120GW expected until 2028, said industry news outlet China Energy Net. China Energy Net also published the full CEC report.

STATE MEDIA VOICE: Xinhua published several energy- and climate-related articles in a series on the 15th five-year plan. One said that becoming a low-carbon energy “powerhouse” will support decarbonisation efforts, strengthen industrial innovation and improve China’s “global competitive edge and standing”. Another stated that coal consumption is “expected” to peak around 2027, with continued “growth” in the power and chemicals sector, while oil has already peaked. A third noted that distributed energy systems better matched the “characteristics of renewable energy” than centralised ones, but warned against “blind” expansion and insufficient supporting infrastructure. Others in the series discussed biodiversity and environmental protection and recycling of clean-energy technology. Meanwhile, the communist party-affiliated People’s Daily said that oil will continue to play a “vital role” in China, even after demand peaks.

Starmer and Xi endorsed clean-energy cooperation

CLIMATE PARTNERSHIP: UK prime minister Keir Starmer and Chinese president Xi Jinping pledged in Beijing to deepen cooperation on “green energy”, reported finance news outlet Caixin. They also agreed to establish a “China-UK high-level climate and nature partnership”, said China Daily. Xi told Starmer that the two countries should “carry out joint research and industrial transformation” in new energy and low-carbon technologies, according to Xinhua. It also cited Xi as saying China “hopes” the UK will provide a “fair” business environment for Chinese companies.

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OCTOPUS OVERSEAS: During the visit, UK power-trading company Octopus Energy and Chinese energy services firm PCG Power announced they would be starting a new joint venture in China, named Bitong Energy, reported industry news outlet PV Magazine. The move “marks a notable direct entry” of a foreign company into China’s “tightly regulated electricity market”, said Caixin.

PUSH AND PULL: UK policymakers also visited Chinese clean-energy technology manufacturer Envision in Shanghai, reported finance news outlet Yicai. It quoted UK business secretary Peter Kyle emphasising that partnering with companies “like Envision” on sustainability is a “really important part of our future”, particularly in terms of job creation in the UK. Trade minister Chris Bryant told Radio Scotland Breakfast that the government will decide on Chinese wind turbine manufacturer Mingyang’s plans for a Scotland factory “soon”. Researchers at the thinktank Oxford Institute for Energy Studies wrote in a guest post for Carbon Brief that greater Chinese competition in Europe’s wind market could “help spur competition in Europe”, if localisation rules and “other guardrails” are applied.

More China news

  • LIFE SUPPORT: China will update its coal capacity payment mechanism, which will raise thresholds for coal-fired power plants and expand to cover gas-fired power and pumped and new-energy storage, reported current affairs outlet China News.
  • FRONTIER TECH: The world’s “largest compressed-air power storage plant” has begun operating in China, said Bloomberg.
  • PARTNERSHIP A ‘MISTAKE’: The EU launched a “foreign subsidies” probe into Chinese wind turbine company Goldwind, said the Hong Kong-based South China Morning Post. EU climate chief Wopke Hoekstra said the bloc must resist China’s pull in clean technologies, according to Bloomberg.
  • TRADE SPAT: The World Trade Organization “backed a complaint by China” that the US Inflation Reduction Act “discriminated against” Chinese cleantech exports, said Reuters.
  • NEW RULES: China has set “new regulations” for the Waliguan Baseline Observatory, which provides “key scientific references for the United Nations Framework Convention on Climate Change”, said the People’s Daily.

Captured

New or reactivated proposals for coal-fired power plants in China totalled 161GW in 2025, according to a new report covered by Carbon Brief

Spotlight

Clean energy drove China’s economic growth in 2025

New analysis for Carbon Brief finds that clean-energy sectors contributed the equivalent of $2.1tn to China’s economy last year, making it a key driver of growth. However, headwinds in 2026 could restrict growth going forward – especially for the solar sector.

Below is an excerpt from the article, which can be read in full on Carbon Brief’s website.

Solar power, electric vehicles (EVs) and other clean-energy technologies drove more than a third of the growth in China’s economy in 2025 – and more than 90% of the rise in investment.

Clean-energy sectors contributed a record 15.4tn yuan ($2.1tn) in 2025, some 11.4% of China’s gross domestic product (GDP)

Analysis shows that China’s clean-energy sectors nearly doubled in real value between 2022-25 and – if they were a country – would now be the 8th-largest economy in the world.

These investments in clean-energy manufacturing represent a large bet on the energy transition in China and overseas, creating an incentive for the government and enterprises to keep the boom going.

However, there is uncertainty about what will happen this year and beyond, particularly due to a new pricing system, worsening industrial “overcapacity” and trade tensions.

Outperforming the wider economy

China’s clean-energy economy continues to grow far more quickly than the wider economy, making an outsized contribution to annual growth.

Without these sectors, China’s GDP would have expanded by 3.5% in 2025 instead of the reported 5.0%, missing the target of “around 5%” growth by a wide margin.

Clean energy made a crucial contribution during a challenging year, when promoting economic growth was the foremost aim for policymakers.

In 2024, EVs and solar had been the largest growth drivers. In 2025, it was EVs and batteries, which delivered 44% of the economic impact and more than half of the growth of the clean-energy industries.

The next largest subsector was clean-power generation, transmission and storage, which made up 40% of the contribution to GDP and 30% of the growth in 2025.

Within the electricity sector, the largest drivers were growth in investment in wind and solar power generation capacity, along with growth in power output from solar and wind, followed by the exports of solar-power equipment and materials.

But investment in solar-panel supply chains, a major growth driver in 2022-23, continued to fall for the second year, as the government made efforts to rein in overcapacity and “irrational” price competition.

Headwinds for solar

Ongoing investment of hundreds of billions of dollars represents a gigantic bet on a continuing global energy transition.

However, developments next year and beyond are unclear, particularly for solar. A new pricing system for renewable power is creating uncertainty, while central government targets have been set far below current rates of clean-electricity additions.

Investment in solar-power generation and solar manufacturing declined in the second half of the year.

The reduction in the prices of clean-energy technology has been so dramatic that when the prices for GDP statistics are updated, the sectors’ contribution to real GDP – adjusted for inflation or, in this case deflation – will be revised down.

Nevertheless, the key economic role of the industry creates a strong motivation to keep the clean-energy boom going. A slowdown in the domestic market could also undermine efforts to stem overcapacity and inflame trade tensions by increasing pressure on exports to absorb supply.

Local governments and state-owned enterprises will also influence the outlook for the sector.

Provincial governments have a lot of leeway in implementing the new electricity markets and contracting systems for renewable power generation. The new five-year plans, to be published this year, will, therefore, be of major importance.

This spotlight was written for Carbon Brief by Lauri Myllyvirta, lead analyst at Centre for Research on Energy and Clean Air (CREA), and Belinda Schaepe, China policy analyst at CREA. CREA China analysts Qi Qin and Chengcheng Qiu contributed research.

Watch, read, listen

PROVINCE INFLUENCE: The Institute for Global Decarbonization Progress, a Beijing-based thinktank, published a report examining the climate-related statements in provincial recommendations for the 15th five-year plan.

‘PIVOT’?: The Outrage + Optimism podcast spoke with the University of Bath’s Dr Yixian Sun about whether China sees itself as a climate leader and what its role in climate negotiations could be going forward.

COOKING FOR CLEAN-TECH: Caixin covered rising demand for China’s “gutter oil” as companies “scramble” to decarbonise.

DON’T GO IT ALONE: China News broadcast the Chinese foreign ministry’s response to the withdrawal of the US from the Paris Agreement, with spokeswoman Mao Ning saying “no country can remain unaffected” by climate change.


$6.8tn

The current size of China’s green-finance economy, including loans, bonds and equity, according to Dr Ma Jun, the Institute of Finance and Sustainability’s president,in a report launch event attended by Carbon Brief. Dr Ma added that “green loans” make up 16% of all loans in China, with some areas seeing them take a 34% share.


New science

  • China’s official emissions inventories have overestimated its hydrofluorocarbon emissions by an average of 117m tonnes of carbon dioxide equivalent (mtCO2e) every year since 2017 | Nature Geoscience
  • “Intensified forest management efforts” in China from 2010 onwards have been linked to an acceleration in carbon absorption by plants and soils | Communications Earth and Environment

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The post China Briefing 5 February 2026: Clean energy’s share of economy | Record renewables | Thawing relations with UK appeared first on Carbon Brief.

China Briefing 5 February 2026: Clean energy’s share of economy | Record renewables | Thawing relations with UK

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Great White Sharks Are Overheating

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The ocean’s fastest and most formidable predators might also be the most physiologically vulnerable to warming waters, researchers warn.

The evolutionary edge that fueled great white shark dominance for millions of years could soon become its greatest downfall.

Great White Sharks Are Overheating

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Climate Change

China Briefing 16 April 2026: Billions for grid | Petrochemical plan | China’s high-seas bid

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Welcome to Carbon Brief’s China Briefing.

China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.

Key developments

Surge in grid investment

TRILLION-YUAN ERA: China’s two largest power grid operators invested a total of 167.5bn yuan ($24.5bn) in the first quarter of 2026, reported state broadcaster CCTV. State Grid said that during this period it spent more than 10bn yuan on connecting “new energy” projects to the grid, up 50% from last year, reported Shanghai-based news outlet the Paper. The two state-owned enterprises (SOEs) plan to invest 1tn yuan ($146bn) annually over the 15th five-year plan period (2026-2030), said finance news outlet Yicai.

POWER CURBED: However, in what Bloomberg called a “clear signal that the grid is struggling to absorb all the extra power from the rapid growth in renewables”, solar and wind utilisation rates – the percentage of total power generated by a source that is used by the grid – fell again at the start of the year. They stood at 90.8% and 91.5%, respectively, in January and February 2026, according to a post by an SOE-linked research institute republished by energy news outlet International Energy Net. The rates are now “approaching [minimum] limits that the government had relaxed only two years ago”, added Bloomberg.

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SIX PROVINCES SUPERVISED: A recent meeting of the National Energy Administration (NEA) concluded that China’s renewable installations had seen “steady growth” in 2026, adding that the body must make “sustained efforts” to “expand” investment in renewable power, reported International Energy Net. Separately, International Energy Net also said that the NEA will increase “supervision” of the power sectors in six provinces – Hebei, Jilin, Xinjiang, Fujian, Hunan and Guangdong. The outlet said this would entail scrutinising how they implement “energy conservation and carbon reduction” tasks, with a “focus” on coal plants, how they construct large clean-energy bases and their consumption of new energy, as well as their power infrastructure and markets.

Conflict spurred cooperation with China

CHINA ‘WINNING’: In Vienna, Chinese climate envoy Liu Zhenmin told state news agency Xinhua that the Middle East conflict has created an urgent need for countries to rethink energy security strategies and accelerate the energy transition. Xinhua also cited Liu as warning against over-reliance on a single source of energy imports. Meanwhile, state broadcaster CCTV published a segment arguing that a “greener” system will “provide a strong guarantee” for energy security, although it did not mention the conflict. Several outlets have continued to highlight how low-carbon energy has helped China weather the conflict and boosted sales of Chinese technologies, including the New York Times, Wall Street Journal, Associated Press, Indian Express, Washington Post and Bloomberg. Semafor said China was “winning the global energy war”.

MANY MEETINGS: United Arab Emirates crown prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Chinese president Xi Jinping discussed how to “prevent further impacts” from the conflict on energy security, said Xinhua. Australian prime minister Anthony Albanese said he addressed “regional energy security” with Chinese premier Li Qiang, reported Reuters. A post by China-Russia Information Net on nationalist media outlet Guancha quoted a Chinese diplomat in Russia telling reporters that “current dramatic changes in the international situation” are causing the two countries to discuss “further energy cooperation”. The Philippines is continuing to consider “oil and gas cooperation” with China, despite territorial disputes, Reuters also reported.

‘PROFOUND’ IMPACTS: Energy administration head Wang Hongzhi wrote a chapter in a “study guide” to the 15th five-year plan, published by industry outlet China Power News Net, in which he noted that “geopolitical conflicts are profoundly reshaping the global energy landscape”. He added that “traditional fossil fuels must continue to serve as a safety net while [China] simultaneously accelerates efforts to transition [to clean energy sources]”. Environment minister Huang Runqiu wrote in the CPPCC Daily, the official newspaper for the advisory body Chinese People’s Political Consultative Conference (CPPCC), that China will “earnestly” carry out “carbon peaking actions” in the next five years. Huang also said that, with “concerted efforts”, China’s 15th five-year plan targets are “achievable”.

Petrochemical plan published

UPGRADE DEADLINE: China issued a plan for either upgrading or phasing out “outdated” petrochemical plants by 2029, reported Reuters. It added that the plan did not confirm explicitly “how many plants ​may be upgraded or phased out”. The news outlet Economic Daily said that, according to the document, China would focus on upgrading or phasing out outdated capacity “as determined in 2025”, while also developing a “long-term working system” for assessing the industry. According to the full document, published on the Ministry of Industry and Information Technology (MIIT) website, carbon-emission assessments were part of the selection criteria, with policymakers planning on “developing or revising” further standards for carbon emissions under the plan.

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CHEMICAL OVERCAPACITY: The Paper quoted MIIT official Chang Guowu telling reporters that the plan will address the “low standards of design and construction” and “outdated processes” in older plants that lead to “significant” environmental risks. Xinhua said that, of China’s more than 27,000 petrochemical plants, “more than 1,600…outdated facilities” were reported in 2025, 600 of which required upgrading. Chemical news WeChat account WeLink Chemicals noted the policy was released against a backdrop of “overcapacity and declining demand for road transport fuels”, with the government having “stepped up efforts to curb overcapacity” in 2025.

More China news

  • TARGET PLEDGED: China will cut the carbon intensity of its international shipping vessels by at least 15% by 2030 compared to 2025 levels, said climate outlet IdeaCarbon. It said China will also “significantly enhance” its influence in emission reduction talks at the International Maritime Organization.
  • SANCHEZ VISITED: China and Spain “can contribute to finding solutions” for environmental issues, Spanish leader Pedro Sanchez told Xi Jinping, according to the Associated Press. Ahead of the meeting, Sanchez also argued China should play a more substantial role on climate change, said the Singapore-based Straits Times.
  • CHINA COMMITTED: Huang Runqiu reaffirmed China’s support, “as always”, for global climate governance in a meeting with UN advisor Selwin Hart, said the Paper.
  • FUNDING HALTED: The EU “quietly” approved a plan to prevent EU funds being provided to “clean technology projects containing Chinese inverters”, said the Hong Kong-based South China Morning Post.
  • AI UNVEILED: Chinese researchers developed a “first-of-its-kind artificial intelligence model designed to track carbon emissions”, reported Xinhua, adding that it “could shift the balance of power” in global climate negotiations, such as by quantifying the “embedded carbon” of products that developed countries import from China.
  • CONTROLS CONSIDERED: China is deliberating “limiting exports” to the US of the equipment needed to make solar panels, according to Reuters.

Spotlight 

The debate over China’s bid to host the “high seas” treaty

The final preparatory commission for the Biodiversity Beyond National Jurisdiction (BBNJ) agreement has closed, laying the groundwork for the treaty’s first conference of the parties (COP1).

One key agenda item was China’s presentation of a bid to host the secretariat. In this issue, Carbon Brief examines the debate surrounding the bid.

The BBNJ agreement, also known as the High Seas Treaty, governs the sustainable use and conservation of the “high seas” – marine areas outside national jurisdictions – with a new United Nations (UN) body established to oversee enforcement.

As well as facing significant impacts from climate change, the ocean plays an important role as a carbon sink, absorbing around 29% of man-made emissions.

The treaty “recognis[es]” the need to address oceanic biodiversity loss and ecosystem degradation, according to previous Carbon Brief analysis, identifying key impacts from climate change, acidification, pollution and “unsustainable” use.

It aims to encourage conservation and sustainable use of marine biodiversity in the high seas, such as by managing “marine genetic resources”, creating protected areas in the ocean, developing environmental impact assessments and facilitating capacity-building and transfer of marine technology.

China’s bid

China’s bid to host the secretariat focused on its “sustainability efforts” and “commitment to multilateralism”, reported the Earth Negotiations Bulletin.

The country’s bid document drew attention to several of its emission-reduction efforts, including “green shipping corridors” and strengthening carbon sinks through protecting mangroves, seagrass beds and coral reefs.

In a speech, Chinese ambassador to the UN Fu Cong said that the bid “reflects China’s unwavering support” for multilateralism, adding that a successful Chinese bid would lead to the first UN-related body headquartered in the Asia Pacific region. He said:

“That means it will not only be welcomed, but also be prioritised. It will have the full backing from all levels of government in China and its people.”

Li Shuo, director at the Asia Society Policy Institute’s China climate hub, attended the meetings. He said in a note that China’s decision to bid “reportedly came from [President] Xi Jinping”, galvanising a coordinated cross-ministry effort to secure host the secretariat.

Creating debate

China entering the race has caused a stir.

As host, it could inhibit “robust environmental safeguards” by “embedding elements of its domestic governance model” into how the treaty operates, wrote Dr Chime Youdon, research fellow at India’s National Maritime Foundation, on the organisation’s platform.

But such concerns are weakened by the fact that China would “want the treaty to function” if it were host, argued Prof Philippe Le Billon and Zelda Ladefoged, professor and master’s student at the University of British Columbia, in an article for the Conversation.

Nevertheless, they noted “sustained” worries around China’s influence, given the extensive involvement of its companies in distant-water fishing and deep-sea mining, which are not covered in the treaty.

Li told Carbon Brief that, as far as he saw, no-one was “actively pushing back against” the bid on any of the above grounds. Instead, he observed “anxieties” around “accreditation, information security and visa and conference participation issues”.

Daniel Kachelriess, cross-cutting coordinator at the High Seas Alliance, an umbrella group of non-governmental organisations focused on ocean governance, echoed this in comments to Carbon Brief. He said “values like neutrality and impartiality, transparency and accountability” are important for the decision, as well as practical issues such as “reliable” internet access.

The Financial Times reported that Chinese delegates have offered immunity to attendees and flexibility around visas, citing unnamed sources.

But a successful Chinese bid could be a “significant escalation” of China’s involvement in global environmental governance, wrote Le Billon and Ladefoged.

As such, the BBNJ could prove a “case study” of sustaining environmental progress without the US and of China “learning to translate its ambitions into leadership”, said Li.

Watch, read, listen

PROFIT PRESSURE: The Economic Observer investigated how higher profit remittance requirements for state-owned enterprises is placing pressure on the balance sheets of power, coal and other energy companies.

CARNEY’S CALCULUS: The Wire China Podcast discussed how a deteriorating relationship with the US affected Canada’s approach to importing Chinese electric vehicles.

AFRICAN SOLAR: Climate Home News interviewed a renewables company working in Africa about what the end of Chinese solar export rebates could mean for the continent.

FUEL PRICE WOES: The New York Times published a video about how rising diesel prices are hitting China’s long-haul truck drivers hard.


140%

The year-on-year rise in March in exports of Chinese new-energy vehicles (NEVs, including both plug-in hybrids and pure electric vehicles), reported Bloomberg, citing renewed interest caused by the “global energy shock stemming from the Iran war”.

-14%

The year-on-year fall in March in domestic sales of Chinese NEVs, reported Yicai, citing “changes to the NEV purchase tax exemption and the overlapping effects of the Chinese New Year holiday”.


New science 

  • Between 1978 and 2023, emissions of “gaseous reactive nitrogen” – including ammonia and nitrous oxide – from croplands in China more than doubled | PNAS
  • There are “disparities in [the] energy transition” between households in rural China, with small, low-income households and areas in the Loess plateau facing a “disproportionate energy burden and energy poverty” | Communications Earth and Environment

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China Briefing is written by Anika Patel, with contributions from Lekai Liu, and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org 

The post China Briefing 16 April 2026: Billions for grid | Petrochemical plan | China’s high-seas bid appeared first on Carbon Brief.

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US pressure puts World Bank’s climate plan at risk

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The World Bank’s work to tackle climate change is under threat as the Trump administration pushes the lender to ditch its green targets and step up support for fossil fuel infrastructure in the developing world.

With the World Bank’s key climate policy framework set to expire in June, closed-door negotiations between shareholders and the bank’s management over its successor have stalled, sources familiar with the discussions told Climate Home News.

This throws into doubt the future direction of the world’s largest provider of international climate funding to developing countries. Rajneesh Bhuee, just transition lead at campaigning group Recourse, said that scrapping the bank’s climate targets and markers would be “worrying”.

First introduced in 2021, the Climate Change Action Plan (CCAP) has driven an expansion in the World Bank’s funding for emission-cutting projects and support for vulnerable communities dealing with the growing impacts of climate change.

The plan embedded climate considerations across the bank’s lending practices and committed it to directing a defined share of its annual budget – now 45% – to projects with climate benefits.

Since the plan was introduced, the World Bank’s climate funding nearly doubled from $21 billion in 2021 to $39 billion in 2025.

Bessent attack on climate

That trajectory is now under threat. Since Donald Trump’s return to the White House, the US – the bank’s largest shareholder – has waged an aggressive campaign against its climate commitments.

US Treasury Secretary Scott Bessent said on Wednesday that the World Bank should abandon its “distortionary” climate finance target, claiming without evidence that it “undermines efforts to reduce poverty and spur economic growth”.

    “We welcome the coming expiration of the Climate Change Action Plan, and upon its long-overdue expiration, expect the bank to immediately shift its myopic focus on climate,” he added in the statement issued during the World Bank’s Spring Meeting in Washington DC this week.

    Earlier in the week, Bessent pushed back against the scientific consensus that human activities, and the burning of fossil fuels in particular, are the dominant drivers of global warming.

    Progress called into question

    With negotiations heading for a crunch, battle lines are hardening. Sources familiar with discussions told Climate Home News that European countries, backed by some Latin American nations and small island states, are holding firm in their push to see a version of the climate plan extended.

    But nations reliant on the production of fossil fuels, like Russia and the Gulf States, have sided with the US, they said. The decision will ultimately be taken by the bank’s management, led by Biden appointee Ajay Banga, but with powerful advice from the governments that make up the bank’s shareholders.

    Jon Sward, environment project manager at the Bretton Woods Project, said that any watering down of the World Bank’s climate agenda would be damaging.

    “Over the past decade until last year, the scope and depth of the bank’s climate work, though still imperfect, had been expanding. That feeling of progress is being called into question,” he told Climate Home News.

    IEA slashes pre-war oil demand forecast by nearly a million barrels per day

    Multilateral development banks (MDBs) led by the World Bank have been handed an increasingly central role in providing funding for climate action to developing nations, as many rich governments channel a large share of their climate finance through the MDBs.

    MDBs accounted for over 40% of public international climate finance in 2022, the latest year for which data is available. Growing support from MDBs and shrinking overseas aid budgets in developed countries suggest their role is likely to have grown even bigger since then.

    ‘Imperfect’ plan better than no plan

    The World Bank’s climate approach has faced repeated criticism. Activists accused the lender of relying heavily on loans and adding to the debt piles of vulnerable countries, and of inflating its climate finance numbers by overstating the real climate benefit of its projects.

    But Recourse’s Bhuee, said that, despite its flaws, a weak climate action plan is still better than no climate action plan. “Imperfect as the current plan is, it provides a basis for accountability,” she added.

    While experts do not expect an immediate drop in climate funding, the removal of formal targets could weaken internal incentives to prioritise climate projects and reduce transparency over how funds are allocated.

    In the short term, it would give the US administration a big symbolic win in its wide-ranging quest to hollow out international financing for climate action and boost support for planet-warming fossil fuels.

    Gas compromise

    “The US strategy is to run out the clock,” an expert with knowledge of the discussions told Climate Home News. “It is using the June deadline to either get rid of the plan altogether or as leverage to extract concessions on a weakened climate plan in exchange for something else like funding upstream gas”.

    The World Bank committed to stopping support for gas extraction projects in 2019, but that ban has been reconsidered since Trump’s return to office. Bessent said on Wednesday that the World Bank should support an “all-of-the-above” approach to energy, including gas, oil and coal.

    “The US has outsized importance over the World Bank’s policy,” the expert said, “but it is incumbent on the European shareholders to show some spine here”.

    The post US pressure puts World Bank’s climate plan at risk appeared first on Climate Home News.

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