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”.
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“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.
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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.
An Lambrechts is a biodiversity politics expert at Greenpeace International with extensive experience in biodiversity-related multilateral negotiations. She is the head of the Greenpeace delegation at the Convention on Biological Diversity (CBD) COP17 happening in Yerevan, Armenia.
In 2022, COP15 delivered the landmark Kunming-Montreal Global Biodiversity Framework to halt and reverse biodiversity loss by 2030. With COP17 starting in Yerevan, we are now halfway to the deadline, and according to the first Global Review of progress, countries are not on track to meet the biodiversity targets, and implementation must accelerate fast.
One of the main findings of the Global Review is that funding falls far short of the scale needed to halt and reverse nature loss. But the crisis facing the world’s biodiversity is not an absolute scarcity of capital – it is a profound public policy distortion.
The global economy currently spends roughly $30 destroying nature for every single dollar invested in its protection. According to a report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, a staggering $2.4 trillion is spent in public subsidies for fossil fuels, agriculture and water use, while global investment in biodiversity conservation and restoration stands at a mere $220 billion.
Countries urged to ramp up “insufficient” nature policies at COP17
Yet, discussions about how to close the biodiversity finance gap continue to claim that salvation lies in mobilising private capital, scaling offsets and “derisking” investments in nature. This is a fundamental misunderstanding of both the nature of ecological stewardship and of the global financial architecture.
Biodiversity conservation is not a speculative investment portfolio – it is the foundation of human survival. The health of our planet is a non-monetisable, non-excludable public good. Expecting profit-seeking private capital to protect nature perpetuates the structural drivers of ecosystem destruction in the first place.
But if private market mechanisms cannot save biodiversity, where will the necessary public resources come from?
Money going to the wrong places
The answer lies in recovering the vast public wealth currently drained by cross-border tax abuse, financial secrecy and corporate impunity. Finance and environment ministers meeting in Yerevan must give a strong political signal that, to avert ecological breakdown, countries need to take swift action to reform global tax rules, eliminate harmful public subsidies and cancel unsustainable sovereign debts for the public revenues to end up where they belong.
Extractive sectors such as industrial agriculture, fishing, timber and mining continue business-as-usual, often heavily subsidised by public treasuries, while voluntary carbon and biodiversity offset markets pose a serious risk to nature conservation. Offset schemes have delivered only a negligible fraction of the funding needed to preserve ecosystems, allowing industries to continue with their destructive business-as-usual practices.
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In advanced economies, public funding often actively undermines biodiversity. In Europe, over €5.3 billion in public subsidies is funnelled annually into intensive forest biomass harvesting under renewable energy directives, degrading primary forest ecosystems and undermining long-term climate resilience. Pleading with private investors to fill a “finance gap” while pouring billions into ecological destruction is an exercise in futility.
Developing countries struggle with debt burden
For developing countries, reliance on private finance is further compounded by a crushing sovereign debt crisis. In 2024, public debt in developing economies reached record levels, with net interest payments alone absorbing $921 billion. A record 61 developing countries now spend more than 10% of government revenue on foreign debt service, with many climate-vulnerable nations spending twice as much servicing external debt as they receive in climate and biodiversity finance combined.
This burden acts as a structural driver of ecosystem destruction. Under pressure from external creditors and international financial institutions to avoid default and secure foreign exchange, governments are routinely forced into austerity measures and pushed to expand raw commodity exports into pristine biomes.
Comment: World Bank and IMF should lead the financial system in responding to the climate crisis
The current negotiations for a United Nations Framework Convention on International Tax Cooperation (UNFCITC) also offer a way forward. An estimated $492 billion in tax revenue is lost every year to offshore tax havens. Multinational corporations account for around $348 billion of this total by shifting profits away from the countries where real economic extraction and environmental degradation occur.
In the mining sector alone, developing nations lose tens of billions annually to corporate tax dodging. Furthermore, international financial secrecy shields environmental criminals, with illicit financial flows from illegal logging draining between $51 billion and $152 billion annually.
At COP17, leaders must seize the opportunity to build a bridge between the two conventions and enhance cooperation. Governments must put the world on a firm path to securing predictable, sufficient, sovereign public finance for biodiversity conservation. It’s the only path to a restorative, rights-based future for people and the planet.
The post Protecting nature is a public duty, not a Wall Street profit opportunity appeared first on Climate Home News.
Protecting nature is a public duty, not a Wall Street profit opportunity
Climate Change
Greenpeace delivers 47 metre-long petition with half a million signatures to Woodside HQ following major gas protest
Greenpeace delivers 47 metre-long petition with half a million signatures to Woodside HQ following major gas protest
PERTH, Monday 19 October 2026 — Dozens of Perth community members delivered a giant petition, signed by almost half a million people, to Woodside’s corporate headquarters this morning, calling on the government to save Scott Reef from Woodside’s reckless Browse gas proposal.
Dressed in sea creature costumes and hats, supporters carried one of Australia’s biggest environmental petitions to Woodside’s headquarters, and a local choir performed a ‘Scott Reef’ rendition of Angie McMahon’s iconic cover of ‘Reckless’ by Australian Crawl.
On the sidelines of the Perth Global Citizen Now event, it comes following a two day-long protest at Woodside’s Scarborough gas platform that saw activists scale and occupy the Floating Production Unit calling to “Stop Woodside’s Dirty Gas” and “Save Scott Reef”. The activists were taken from the platform by police helicopter on Sunday afternoon.
David Ritter, CEO at Greenpeace Australia Pacific, said: “Less than a day after two Greenpeace Australia Pacific activists were arrested for their peaceful protest at Woodside’s Scarborough gas platform to save Scott Reef, we are here again with another message to Woodside: half a million of us do not want your dirty gas at Scott Reef.
“Community pressure on Woodside is rising. Today we are here to show Woodside that they can’t ignore half a million people who want Scott Reef protected, not turned into an industrialised gas zone.
“Woodside can’t be trusted with our oceans. Woodside’s plans to drill up to 57 toxic wells at Scott Reef, Australia’s largest oceanic reef, putting endangered pygmy blue whales at risk, and jeopardising a nesting ground for unique green sea turtles.
“We Australians love our oceans and this is an opportunity for our governments to do the right thing, to reject Woodside’s reckless drilling plans, and save Scott Reef.”
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Media contact
Kate O’Callaghan on +61 406 231 892 or Emma Sangalli on +61 431 513 465
Climate Change
Greenpeace Australia Pacific activists in police custody after two-day protest against Woodside’s Browse gas project at Scott Reef
PERTH, Sunday 18 October 2026 — Two Greenpeace Australia Pacific activists are in police custody after occupying a gas platform at Woodside’s Scarborough gas project, in peaceful protest of the fossil fuel corporation’s plans to drill for oil and gas at Scott Reef.
NEW footage and photos of the peaceful protest available here and on Instagram
The activists used specialised climbing equipment to scale and attach themselves to a Floating Production Unit (FPU), a key piece of gas processing infrastructure at the Scarborough gas field over 200km off the coast of Exmouth, at around 05:45am AWST on Saturday and proceeded to occupy the platform for two days, displaying banners reading “Stop Woodside’s Dirty Gas. Save Scott Reef.”
Special police forces landed a helicopter on the FPU at around 11:30am AWST. The activists safely removed themselves from their equipment before being taken into police custody around 1:00pm AWST. At the time of writing, no charges have been laid.
David Ritter, CEO at Greenpeace Australia Pacific, said: “It takes guts and conviction to do what our activists have done, peacefully protesting Woodside’s reckless gas plans at Scott Reef.
“Woodside’s plans to drill up to 57 toxic wells at Scott Reef are outrageous. If allowed to go ahead Woodside would turn Scott Reef, Australia’s largest oceanic reef, home to nesting green sea turtles and elusive pygmy blue whales, into an industrial gas zone. Around half a million people have called on our governments to stop Woodside and to save Scott Reef.
“Our activists are highly trained and experienced in these activities. West Australia has a proud history of peaceful, democratic protest at sea, to protect our oceans from environmental threats. From whaling in Albany in the seventies, to Woodside’s threat to Scott Reef today, there’s more than fifty years of history, of Greenpeace taking action off WA’s coast to protect the places we love.
“Peaceful protest has long been part of what has given us so many of the things that are great about Australia and is part of the fabric of our democracy and our national identity.”
“The right to peaceful protest is fundamental to a healthy democracy. From Australia to the Arctic and the Amazon, Greenpeace has been peacefully protesting for more than 50 years to expose the biggest environmental threats around the world. We will not be silenced by corporations like Woodside who actively try to stop everyday people from speaking out against their reckless plans.
“Woodside’s reckless proposal to drill at Scott Reef is an unacceptable risk to Scott Reef and to the climate, which our government should emphatically reject.”
Speaking from the Rainbow Warrior, Captain of the Rainbow Warrior Hettie Geenen, said:
“It felt powerful watching from the Rainbow Warrior as these brave activists scaled Woodside’s enormous and imposing gas infrastructure, which has no place at Scott Reef. We are all out here because we feel an urge to act, in the face of Woodside’s grave threat to Scott Reef and to our climate. Now we ask for the Australian government to act too, and reject Woodside’s reckless Browse project.
“Just before this peaceful protest, the Rainbow Warrior sailed to Scott Reef, where our whole crew got to witness the magic of an untouched, healthy reef ecosystem full of marine life. It was my second time visiting Scott Reef with the Rainbow Warrior. When you see Scott Reef up close and witness its magic first hand, it is impossible not to feel driven to try and protect it.”
The activists sailed to Scarborough on the Rainbow Warrior, Greenpeace’s flagship vessel, which is in the region campaigning to protect Australia’s oceans, including Scott Reef.
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Media contact
Greenpeace Australia Pacific media team in Perth on +61 406 231 892 or +61 407 581 404 or email media.au@greenpeace.org
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