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China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
New sector targets in renewable portfolio standard
NEW QUOTAS: China has published the 2025-2026 provincial quotas for renewable energy consumption, which for the first time included sectoral targets for iron and steel, cement, polysilicon and certain types of data centres, industry news outlet BJX News reported, as well as updates to the aluminium sector targets established last year. Bloomberg said that the steel, cement and polysilicon sectors will need to use low-carbon energy to “meet between 25% and 70% of their demand” under the policy. Energy news outlet International Energy Net noted that Sichuan, Yunnan and Qinghai provinces faced the “highest quotas”, at 70%. (For comparison, the average provincial quota is 38%, Carbon Brief calculated. A separate quota for these three provinces that does not include hydropower is much closer to the national average.)
POWER RUSH: In contrast to expectations that renewable installations in China would slow for the rest of 2025, the state-run thinktank State Grid Energy Research Institute estimated that 380 gigawatts (GW) of solar, 140GW of wind power and 120GW of thermal power (likely mostly coal) will be added this year, Bloomberg reported. It noted that the solar figure is “more than 50% higher than forecasts from the leading solar industrial group”. According to NEA data, the estimate implies China will add 182GW in solar, 94GW in wind and 102GW in thermal power between June and December.
MANAGING THE INCREASE: Li Chao, spokesperson for the National Development and Reform Commission (NDRC), told reporters that “large-scale xiaona (消纳) consumption of renewable energy is critical” given rapid capacity growth, according to industry outlet China Energy News, adding that consumption rates continue to exceed 90% – meaning no more than 10% of potential output is being wasted, according to government calculations. However, separate outlet China Energy Net reported that wind and solar utilisation rates (利用率) in some provinces fell below the government-set red line of 90%, due to rapid growth. Dr Muyi Yang, senior energy analyst for Asia at thinktank Ember, told Carbon Brief: “The recent dip in utilisation rates in the western regions is an early warning that [investment in the grid] needs to speed up.”
OPEN ARMS?: Coal power still has “room to grow” during the fifteenth five-year plan period (2026-2030) despite market challenges, China Electricity Council chief expert Chen Zongfa told BJX News. Chen said this was due to the changing “attitude of the government”, which “no longer demonises coal”. The influential State-owned Assets Supervision and Administration Commission of the State Council (SASAC) pledged to “speed up the construction of thermal power projects” and “ensure the safe and stable supply of coal”, according to China Energy News. Another China Energy News article quoted an NDRC official saying China needed to “ensure the stability of coal supply”. Meanwhile, in a visit to Shanxi, President Xi Jinping told local policymakers to transform the coal industry “from low-end to high-end” while also developing clean-energy, Xinhua said.
Floods and heatwaves
‘INTENSE’ RAINS: Several regions in China, including the southern Henan, Guizhou and Hubei provinces, were hit by “intense rainfall” throughout late June and early July, causing “severe flooding” and several deaths, Bloomberg reported, in an article noting that climate change is “fuelling” extreme weather events. Meanwhile, high temperatures “enveloped China’s eastern seaboard…raising fears of droughts and economic losses”, Reuters said, adding that “extreme heat, which meteorologists link to climate change, has emerged as a major challenge for Chinese policymakers”.
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NEW WARNINGS: At the launch of the China Blue Book on Climate Change 2025 – a document outlining global and China-specific impacts of climate change – National Climate Center deputy director Xiao Chan stated that the “national average temperature in June was 21.1C”, marking the hottest June since records began, according to business news outlet 21st Century Business Herald. State news agency Xinhua quoted Chen Min, vice-minister of the Ministry of Water Resources, telling reporters that 329 rivers had flooded “above warning levels” as of 4 July. Meanwhile, the government established a new heat-health warning system, which “aims to strengthen public health preparedness amid growing climate challenges”, the state-run newspaper China Daily said.
GRID PRESSURES: Linked to high temperatures along the east coast, the National Energy Administration (NEA) revealed that China’s maximum power demand reached a “record high” of 1,465GW on 4 July, finance news outlet Yicai reported, adding that air-conditioning load “accounted for about 37%” of the peak power grid load in eastern China. Bloomberg said that the grid is “in better shape to take on peak summer demand this year”, following preparations to avoid previous blackouts.
Setting the tone on ‘overcapacity’
MIIT HAUL-UP: In a meeting with solar industry representatives, Ministry of Industry and Information Technology (MIIT) head Li Lecheng said MIIT “will further increase macro-guidance and governance of the industry” in the face of “low-price disorderly competition”, BJX News reported. The Hong Kong-based South China Morning Post (SCMP) noted that Li also said companies should be “guided” to phase out “outdated production capacity”. In its coverage, Bloomberg noted that it was “unclear” what impact the meeting would have, but that it “highlight[ed] the seriousness with which Beijing views” the issue.
CLEAR SIGNALS: The meeting followed days of signalling from China on the need to crack down on industrial overcapacity, which has been blamed for “flood[ing trading] partners’ markets with artificially low-cost goods”, according to the Financial Times. In late June, the front page of the party-affiliated newspaper People’s Daily carried an article under the byline Jin Sheping – used to signal the thoughts of party leadership on economic matters – stating that “rat race competition”, a term linked to overcapacity, would “destroy” industries such as solar, lithium-ion batteries and new-energy vehicles (NEVs). At an economic policy meeting, Xi said China must “govern low-price and disorderly competition…and promote the orderly withdrawal of outdated production capacity”, BJX News said. (He also noted the need to develop more “offshore wind power” and a “unified national market”.) On the same day, ideological journal Qiushi also published an article criticising “rat race competition”. Meanwhile, the Associated Press reported, China also “shows signs of tackling” similar overcapacity issues in the NEV industry.
EUROPE UNHAPPY: European policymakers appear unconvinced, however, with top EU diplomat Kaja Kallas telling her Chinese counterpart Wang Yi that China must “put an end to its distortive practices…which pose significant risks to European companies and endanger the reliability of global supply chains”, according to Reuters. It added that the remarks came during meetings aiming to “lay the groundwork for a summit between EU and Chinese leaders” set to take place on 24 July. Meanwhile, the EU is refusing to consider publishing a joint EU-China climate declaration at the leaders’ summit “unless China pledged greater efforts to cut its greenhouse gas emissions”, the Financial Times reported.
BRICS message on climate finance
MITIGATION FUND: The heads of the BRICS nations, a grouping of China and several other global south countries, “demand[ed] that wealthy nations fund mitigation of greenhouse gas emissions in poorer nations” at a leaders summit in early July, Reuters said. It added that, while Brazil “urged a global transition away from fossil fuels”, the resulting joint statement “argued that petroleum will continue to play an important role in the global energy mix, particularly in developing economies”. Reacting to the summit, the campaign group WWF said in a press release: “When it comes to climate, the message falls short.”
GLOBAL SOUTH VOICE: The Guardian noted that “Brazilian diplomats see the BRICS alliance as part of an emerging new world order”, noting that the summit featured “pushback against the EU” over “discriminatory protectionist measures under the pretext of environmental concerns”. Brazil also used the summit to ask “China and BRICS member states in the Middle East to be among the seed funders” for long-term financing for conservation, the newspaper said, adding that this did not seem to have been successful. The absence of Xi from the meeting, in a first at a BRICS leaders summit, sparked significant speculation around how valuable China saw the block as being.
Spotlight
Key takeaways from China’s latest climate adaptation progress report
China’s Ministry of Ecology and the Environment (MEE) recently published a report outlining China’s progress last year in adapting to climate change. In this issue, Carbon Brief outlines three key messages from the assessment.
Extreme weather events are becoming more severe
China’s climate was “relatively poor” (偏差) in 2024, the MEE report stated, with several “record-breaking or severely disastrous” extreme weather events.
These include extreme heat and cold, rainfall, typhoons, flooding and severe convective weather.
Weather events have generally worsened year-on-year, the report said. In 2024, China’s average temperature stood at 10.9C – the warmest since modern records began.
Similarly, national average rainfall totalled almost 698 millimetres, up 9% year-on-year. More typhoons made landfall in China in 2024 compared to 2023, of which several had “large disaster impacts”, according to the report.
It added that these events had “serious adverse” socio-economic impacts, noting that extreme weather led to at least 500 deaths or disappearances in 2024. (Statistics for deaths and disappearances were not included in the 2023 edition of the report.)
In 2024, the central government spent more than 2.5bn yuan ($350m) on “natural disaster relief funds”, covering flooding, drought and extreme cold.
Climate-resilient infrastructure still a main focus
Extreme weather is also increasingly damaging infrastructure, the report noted. For example, more than 29m users lost power due to extreme weather.
Much of the report is dedicated to describing China’s efforts to develop infrastructure that can resist or help mitigate the effects of extreme weather events.
Managing “water resources” and water conservation continued to receive a strong focus in the report, which added that, in 2024, “major water conservancy projects continued to be developed to a high quality”.
It also noted that this infrastructure buildout “played a key role” in mitigating the impact of floods in 2024, with thousands of reservoirs nationwide being used to store floodwater.
This, it said, “reduced” the impact of 26 floods on 2,300 cities and towns and 17m mu [slightly more than 1m hectares] of arable land”.
The country is also strengthening its ability to predict future extreme weather events, building more than 10,000 new monitoring and early-warning stations in 2024.
Cities are being encouraged to become more “climate resilient”, with 39 authorised to develop pilot programmes exploring possible solutions.
The report noted that, in 2024, 60 cities were developing “sponge city” projects, using nature-based solutions to absorb, collect or reuse floodwater.
Liu Junyan, project lead for the climate risk project at campaign group Greenpeace East Asia, told Carbon Brief that sponge-city solutions did seem to play a beneficial role during the deadly Henan floods in 2021, where floodwaters receded more quickly in Zhengzhou city than other areas.
“But sponge-city methods are not made to handle the extreme rainfall caused by climate change,” she added.
China’s response is relatively ‘holistic’, but disconnects remain
The MEE report emphasised that China’s overarching climate adaptation strategy covers a broad range of socio-economic impacts.
For example, it mentioned efforts in 2024 to prepare technical guidelines for assessing climate change impacts and risks. Carbon Brief understands that the aim of these efforts is to help provincial governments use more standardised, science-based assessments of climate risk, as well as how they should respond.
The report also noted efforts to develop climate-conscious behaviours, such as campaigns encouraging farmers to use “water-saving” irrigation technologies and guidelines to “enhance public awareness” of potential climate-related health risks.
Liu said China’s approach to adaptation is “holistic”, but added that it remains “top-down”, sometimes causing local needs to go unmet.
Furthermore, the report said China needs to further develop strategies for climate impacts on “urban and rural habitats” and “sensitive” industries such as finance, tourism and energy.
Watch, read, listen
HAWKS AND DOVES: The European Parliament broadcasted a debate on EU-China relations ahead of the upcoming leaders’ summit, in which European Commission president Ursula von der Leyen spoke on electric vehicles, rare earths and overcapacity.
DEFINING MOMENT: Shanghai-based news outlet the Paper interviewed former UN secretary-general Ban Ki-moon on China’s role in accelerating climate ambition this year.
CLIMATE PATH: Analysts at the Asia Society Policy Institute’s China climate hub spoke on Environment China about China’s latest emissions, clean-energy and climate diplomacy trends.
STUNTING GROWTH: The US-based National Public Radio explored how climate change is affecting China’s tea-growers, with crops “stunted” and farmers struggling with “changing rhythms”.
6%
The electrification rate of China’s transport sector – well below the economy-wide figure of close to 30% – despite the rapid adoption of NEVs, Chen Ji, executive director at China International Capital Corporation, said at the China launch of the International Energy Agency’s World Energy Investment 2025 report, attended by Carbon Brief. Chen added that the low figure was due to the lack of progress in electrifying aviation and heavy-duty trucks.
New science
Increased socioeconomic impacts with future intensifying flash droughts in China
Geophysical Research Letters
A new paper found that “China will experience longer and more severe droughts, exposing 33% of the population and 35% of gross domestic product to risks under a medium-emission scenario”. The authors analysed economic and soil moisture data over 2000-22 to quantify past changes in “flash droughts”, using models to assess future changes under different climate scenarios. The paper found that “droughts are becoming more frequent in some areas, with a twofold increase in frequency in approximately 32% of these areas by the century’s end”. It added that wealthier regions will face greater economic losses due to flash droughts.
Communications Earth & Environment
Rice cultivation in China’s Sanjiang Plain has expanded northeast by more than two million hectares between 2000 and 2020, driving up irrigation demand by 6bn tonnes, according to a new study. The authors analysed data on “rice migration”, finding that rice expansion drove up irrigation by 122% over 2000-20, while an increase in rainfall due to climate change reduced irrigation demand by 22%. The authors said their findings “highlight the urgent need to make integrated strategies balancing crop migration [with] climate change and water resource conservation”.
Climate Change Research
The poorest counties in China are much more likely to experience record-breaking extreme weather events, which may push them “back to poverty”, according to new research published in a Chinese academic journal. The study combines more than twenty models with eight extreme weather indices to assess “patterns of extreme weather across 832 poverty-alleviated counties [as well as] other counties in China”. The authors recommend actions covering “water infrastructure; disaster mitigation; catastrophe insurance; and public awareness and education” to support climate adaptation in these areas.
China Briefing is compiled by Wanyuan Song and Anika Patel. It is edited by Wanyuan Song and Dr Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 10 July 2025: New sector targets; Overcapacity dressing-down; Adaptation scorecard appeared first on Carbon Brief.
China Briefing 10 July 2025: New sector targets; Overcapacity dressing-down; Adaptation scorecard
Climate Change
DeBriefed 3 July 2026: US faces scorching Independence Day | Record ocean temperatures | Vietnam’s EV surge
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
Heating up
NOT FREE FROM HEAT: “Dangerous, record-breaking” heat altered plans for 4 July celebrations across the US this weekend, reported the Associated Press. New York and Boston hit 100F (37.8C) on Thursday, said the newswire. CNBC reported that temperatures of up to 105F (40.5C) are forecast in central and eastern parts of the country, with “daily, monthly and all-time records possible”.
TEMPERATURES SOAR: Heat that hit western Europe last week spread east to “scorch” Germany, Hungary, Romania, Poland and others, said Bloomberg. Red warnings for extreme heat were issued in a number of nations, noted the outlet, adding that the heat “underscores how climate change is transforming summers in the world’s fastest-warming continent”. The Independent said last month was confirmed to be England’s hottest June on record.
HEAT DEATHS: June’s extreme temperatures caused more than 2,000 excess deaths in Spain and France, reported the Guardian. The countries are bracing for further heat that “could bring temperatures of 44C (111F) over the coming days”, said the newspaper. Deaths in France rose almost 30% at the heatwave “peak” on the week of 22 June, according to Le Monde. Last week’s conditions also led to around 480 excess deaths in the Netherlands, reported Reuters.
BOILING: Global ocean temperatures reached record levels for this time of year, reported NBC News, “fuelling fears of more dangerous heatwaves this summer and fanning concerns over the escalating global climate crisis”. Scientists told the Financial Times that this could lead the world towards “uncharted territory”. The newspaper said global average sea surface temperatures reached 20.96C on 21 June, exceeding June records for 2023 and 2024.
Around the world
- GOAL DROPPED: The World Bank will “abandon” its goal to devote 45% of annual lending resources to climate-related projects, reported Reuters. Carbon Brief explored what it could mean for global climate action.
- FIVE-YEAR PLAN: China plans to invest more than 20tn yuan ($2.9tn) in “key energy projects and new business models” over the next five years, according to International Energy Net.
- DRILLING: The Guardian said UK Labour politicians “urged” the likely next prime minister Andy Burnham to ignore “deluded” calls to develop the Rosebank oil field located in the Atlantic north of Scotland.
- PLASTIC TALKS: Countries and activists feared key issues could be sidelined at “critical” talks on a global treaty to curb plastic pollution in Kenya, said Climate Home News. A treaty could have “important implications” for climate change, reported Carbon Brief in 2024.
- CANADA PIPELINE: Canadian prime minister Mark Carney announced plans to build an oil pipeline to supply Asia with up to 1m barrels per day, reported the Financial Times. Earlier this week, Carney called the previous government’s climate plans “expensive” and “divisive”, said CBC News.
63
The number of UK newspaper editorials calling for more oil and gas extraction in the North Sea so far in 2026, according to Carbon Brief analysis.
Latest climate research
- Including emissions from permafrost thaw raises the likelihood of the Arctic becoming a net-carbon source by more than 50% at 2C of warming | Earth System Dynamics
- Net-zero scenarios relying less on carbon dioxide removals lead to fewer residual emissions, which offers greater health improvements for “non-white and low-income groups” in particular | Nature Climate Change
- Agricultural plots of land in sub-Saharan Africa owned by women face heat impacts 2-2.5 times higher than those owned by men | Nature Sustainability
(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)
Captured
Wind and solar were the world’s largest source of new energy in 2025, according to Carbon Brief analysis of the latest Energy Institute statistical review of world energy. Wind and solar also saw the fastest growth, up by 18% in 2025. Nevertheless, every source of energy – including coal, oil, gas, nuclear and hydro – also reached global all-time highs last year.
Spotlight
Vietnam’s EV surge
Carbon Brief explores the reasons behind soaring electric-vehicle sales in Vietnam.
Motorbikes are a constant fixture on streets across Vietnam. They pollute the air in cities and make crossing the road a feat of endurance.
But, increasingly, people are moving away from petrol-powered vehicles to save money and reduce air pollution.
Sales of electric motorbikes, scooters and mopeds more than doubled in Vietnam last year, according to a recent report from the International Energy Agency (IEA).
This identified that Vietnam has the largest electric vehicle (EV) market in south-east Asia.
Nearly one-in-five of the two-wheeled vehicles sold last year were electric, it noted, in a nation with 102 million people and 77m motorbikes.
This is “particularly impactful” given they are the main mode of transport in Vietnam, said Lam Pham, Asia energy analyst at thinktank Ember. He told Carbon Brief:
“Electrifying road transport is essential for Vietnam to achieve its net-zero target by 2050. Road transport accounted for around 86% of transport-sector emissions in 2022.”
The nation has just 6.8m cars, but this number is also climbing, partly due to EVs, with nearly 40% of new car sales being electric.
This is “above levels seen in most European countries”, noted the IEA. (The UK’s figure is around 30%.)
EV incentives
Fuel costs surged in south-east Asian countries earlier this year after the energy crisis caused by the US-Israel war on Iran.
This “accelerated” discussions from “why use EVs” to “why keep paying more for fuel”, said Dr Tham Nguyen, a lecturer at the Ho Chi Minh City campus of Australia’s Royal Melbourne Institute of Technology (RMIT) University, who has researched Vietnamese public attitudes to EVs.
But the surge is “not driven by fuel prices alone”, noted Pham.
Increased EV sales can also be attributed to a “convergence of affordability, convenience and sustainability”, Nguyen said:
“Vietnamese consumers buy EVs because they see real value with immediate personal benefits, such as cost savings and energy security, alongside long-term environmental gains.”
Government policies have also incentivised sales through registration fee exemptions and tax cuts for EVs.
Another factor is affordable EVs sold by Chinese companies and Vinfast, a Vietnamese manufacturer. The IEA report noted that Vietnam is the only country in south-east Asia with “sizeable” domestic production of accessible EVs.
Vinfast reported a 219% year-on-year increase in orders for electric motorbikes and e-bikes in the first quarter of 2026, but the company has yet to turn a profit.
Pham noted that “growing public awareness of air pollution” has also “dramatically strengthened” public support for EVs.
Future plans
Vietnam’s major cities also have plans to get drivers to go electric or turn to public transport.
The capital city Hanoi announced that it would ban fossil-fuel-powered motorbikes from a central zone this month, but this has been postponed until 2028.
Ho Chi Minh City, the nation’s largest city with more than 9.5 million people, intends to introduce low-emission zones and swap 400,000 petrol-powered motorbikes to electric by 2028.
The city’s green transport plans focus on metro lines, electric buses and e-bikes, explained RMIT associate professor Catherine Earl. She noted that walking and cycling are currently “not popular, accessible or safe for many residents in Ho Chi Minh City’s hot and humid climate”.
Looking ahead, Pham said Vietnam could focus on “purchase subsidies, financing schemes and adequate charging or battery-swapping infrastructure, to ensure lower-income riders, including delivery and ride-hailing drivers, are not negatively affected”.
Watch, read, listen
‘JUST 1%’ OF EMISSIONS: The Guardian debunked arguments that climate actions from smaller countries are “insignificant”.
DRILLING RISKS: Mongabay reported on the possible impacts oil drilling in the Amazon could have on a “little-known reef”.
HEATING UP: The BBC Climate Question podcast discussed the weather pattern El Niño and its links to climate change.
Coming up
- 7-10 July: AI for good global summit, Geneva, Switzerland
- 7-15 July: UN high-level political forum on sustainable development, New York
- 8-10 July: Ninth meeting of the board of the fund for responding to loss and damage, Manila, Philippines
Pick of the jobs
- Green Alliance, senior partnerships officer | Salary: £42,748-£47,346. Location: London
- World Vision, environment and climate action senior adviser | Salary: Unknown. Location: Kenya
- Nature Energy, interim associate or senior editor | Salary: Unknown. Location: London or Milan
- Climate Analytics, senior communications manager – climate policy (maternity cover) | Salary €60,605-€66,880. Location: Berlin
- Carbon Exchange, researcher | Salary: Unknown. Location: Hong Kong
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 3 July 2026: US faces scorching Independence Day | Record ocean temperatures | Vietnam’s EV surge appeared first on Carbon Brief.
The World Bank has abandoned a target for 45% of the funding it gives developing countries to be “climate finance”, following months of pressure from the Trump administration in the US.
However, a concerted effort by developed- and developing-country shareholders has seen the bank hold onto its “action plan” for tackling climate change.
The multilateral development bank (MDB) – which is headquartered in Washington DC – is the single largest provider of climate finance globally, distributing $39.2bn in 2025 alone, primarily as loans.
Amid widespread aid cuts by developed countries, the World Bank and other MDBs have previously pledged to significantly scale up their climate finance over the next decade.
Despite scrapping its central target, the bank says it will continue to support the demands of its “clients”, many of which have explicitly stated their need for climate-related investment.
Here, Carbon Brief looks at the likely impact of the World Bank’s policy shift and whether it is – as one expert puts it – “mostly a symbolic victory” for the US.
- How does the World Bank support climate action?
- Why has the World Bank abandoned its climate-finance target?
- Why is the World Bank important for international climate finance?
- How will these changes affect global climate action?
How does the World Bank support climate action?
The World Bank is the oldest and largest MDB. It is tasked by its 189 member governments – the bank’s shareholders – with supporting development projects around the world.
The US is the bank’s largest shareholder, followed, in order, by Japan, China, Germany, France and the UK.
Every year, the bank provides billions of dollars – predominantly as loans – to developing countries.
(One part of the World Bank, the International Development Association – IDA – specifically distributes grants to lower-income nations, as well as lower-interest loans.)
Through its financing, the World Bank also has an important role in “mobilising” private investments in developing countries.
In recent years, the bank has increasingly focused on helping developing countries to cut emissions and adapt their economies for climate change.
The World Bank provided $164bn in what it calls financing with climate “co-benefits” between 2020 and 2025.
The largest share of this funding – roughly one-fifth – went to clean energy and electricity access projects. Smaller shares went to areas such as public transport, water supply and sustainable farming.
As the map below shows, the largest recipients of the bank’s climate funds since 2020 have been emerging economies, such as Turkey ($10.3bn), India ($9bn) and Nigeria ($6.3bn).
Among the largest World Bank projects in recent years are two extensive programmes in India, totalling nearly $3bn, supporting renewables and green hydrogen.
Others include $1.7bn for a Pakistan hydropower project, $926m for Iraq’s railways and $803m to boost “green development” in Colombia.
Despite the bank’s major role in providing climate finance to developing countries, it has faced heavy scrutiny from climate advocates.
In particular, they have noted the dominance of loans that push developing countries further into debt. The World Bank has also been criticised for a lack of transparency around how it classifies projects as “climate-related”, as well as “over-reporting” of climate finance.
Why has the World Bank abandoned its climate-finance target?
When World Bank president Ajay Banga – nominated by former US president Joe Biden – took over the institution in 2023, there were widespread calls for MDB reform.
Many of the bank’s shareholders wanted to see billions more dollars being channelled to support climate action. Later that year, Banga announced that the bank would ensure that 45% of the bank’s funding was climate finance by 2025.
This replaced an existing target of 35% for climate finance between 2021 and 2025, which had been set out in the bank’s second climate change action plan (CCAP).
The CCAP is intended to “mainstream” climate action in the bank’s work. With it in place, the World Bank’s climate finance more than doubled from $17.2bn in 2020 to $39.2bn in 2025.
As the chart below shows, this meant the World Bank exceeded its 2025 goal, with climate-related projects making up a 48% share of total funding that year.
When Biden was replaced by Donald Trump as president in 2025, the US administration turned against international cooperation, including climate finance.
However, the US did not walk away from the World Bank, where it exerts considerable power as the largest shareholder.
With the CCAP due to expire in July 2026, the US has spent months pressuring the bank and its shareholders to weaken or abandon the plan altogether.
US Treasury secretary Scott Bessent issued a statement during the 2026 World Bank and International Monetary Fund (IMF) spring meetings in April 2026, in which he called for “jettisoning” the 45% climate-finance target. More broadly, he said:
“We welcome the coming expiration of the CCAP and…expect the bank to immediately shift its myopic focus on climate and financing volumes to one that emphasises high-quality, durable projects.”
This vision involves a push for the World Bank to finance more fossil-fuel projects, including drilling for new gas. (The bank has committed since 2019 to stop funding upstream oil and gas projects.)
The decision on whether to continue with the CCAP was negotiated behind closed doors by the board of directors – representing national shareholders. There were reports of “deep divides”.
A joint statement from 19 of the 25 directors last year affirmed the need for both a plan and a target. The US, Russia, Kuwait and Saudi Arabia all declined to sign up, while Japan and India abstained, according to Reuters.
There were reports of European nations championing a climate plan, bolstered by support from the developing countries that would stand to receive climate finance. The US call to drop the 45% target entirely was reportedly backed by Saudi Arabia and Russia.
Ultimately, the day before the CCAP was due to lapse, the World Bank announced what appeared to be a middle ground. It would drop both the 45% target and the 35% goal it had replaced, while also “extend[ing]” the CCAP.
UK development minister Jenny Chapman told a committee hearing in the House of Commons the next day that this marked a “compromise”. She said:
“It wasn’t clear we were going to get a CCAP at all and a bank without an action plan on climate is a problem for us – so that’s a good outcome.”
Supportive shareholders had been pushing for a one-year extension of the plan. While the World Bank did not initially define the length, Chapman confirmed on LinkedIn that the plan had, in fact, been extended “indefinitely”.
The bank said it would also engage an “independent evaluation group” to assess the CCAP, in line with a board request.
Gaia Larsen, director of climate finance at the World Resources Institute (WRI), tells Carbon Brief that this evaluation will likely be “relatively free from political ideology” and could be “focused on how to make the CCAP more effective”.
Why is the World Bank important for international climate finance?
Under the Paris Agreement, developed countries – including major World Bank shareholders in Europe and elsewhere – are obliged to provide climate finance for developing countries.
This includes a target of $300bn a year by 2035, which is expected to largely come from developed countries. One significant way these nations can contribute to this goal is via their support for MDBs, particularly the World Bank.
The World Bank has described itself as “by far the largest provider of climate finance to developing countries”. Each year, it oversees half of all climate finance from MDBs and far more than any single donor country.
Many developed countries have, therefore, enthusiastically backed the World Bank’s climate efforts, as well as a “bigger” role for MDBs in development more broadly. The bank can lend sums that far exceed the amount of new public finance that individual nations are willing to commit.
This is particularly significant, given many of these nations, including the UK, Germany and France, have announced large cuts to their aid budgets in recent years.
Carbon Brief analysis suggests that roughly a fifth of the international climate finance provided and “mobilised” by developed countries in recent years can be attributed to their World Bank contributions, as the chart below shows.
(This only accounts for the World Bank financing that can be linked to developed-country shares in the bank. Developing countries, such as China, also have significant shares, which are not included in the chart below.)
MDBs – including the World Bank – have committed to providing $120bn in climate finance to developing countries by 2030.
This was set to come from greater shareholder contributions, combined with a programme of reforms to free up capital.
If the World Bank continued to provide half of the MDB total, it would need to increase its climate finance by around 50%, from $39.2bn today to $60bn in 2030.
Therefore, experts see a “key” role for the World Bank in achieving not only the $300bn target, but also the more aspirational $1.3n target that countries agreed as part of the “new collective quantified goal” (NCQG) on climate finance at COP29 in 2024. This includes the private capital it could “unlock” through its lending.
Joe Thwaites, international climate finance director at Natural Resources Defense Council (NRDC), tells Carbon Brief that these “NCQG politics” are “quite important”. He says:
“The maths of the $300bn does not work if the MDBs pull back and so I think that’s why you’re seeing developed countries taking a stand.”
How will these changes affect global climate action?
To date, the World Bank has only released minimal details about its new climate plans. As such, experts say the impact on future climate finance remains uncertain.
Jon Sward, environment project manager at the Bretton Woods Project, tells Carbon Brief:
“They have said they are going to retain all the same processes about climate-finance reporting. So, of course, there is a world in which, actually, climate finance continues to increase like it has been.”
Some of the World Bank’s internal organisations will, in fact, keep their climate-finance goals for the time being. For example, the IDA’s largely grant-based funding retains a 45% target for its current round, which will last until 2028 – the year of the next US presidential election.
However, WRI’s Larsen tells Carbon Brief that the changes, from a bank that was previously a “champion for climate action”, remain significant:
“This reality, reinforced by the elimination of the 45% goal, means that it would not be surprising to see a reduction in climate investments.”
In a statement, the World Bank said its “work on climate is and will remain firmly client driven”, noting that it supports nations undertaking their Paris Agreement climate plans.
Therefore, its climate focus may come down to whether there is demand for climate action from “client” countries receiving finance.
At an April event in discussion with the climate sceptic Bjørn Lomborg, Bessent said that global financial institutions should focus on growth, characterising climate action as an “elite belief”.
The implication from the US Treasury secretary was that recipient countries are not interested in climate action. However, as reported by Devex, a group of World Bank shareholders representing nearly 100 developing countries, wrote a letter that appeared to push back against this framing.
This “G11+” group, led by Brazil and China, said the bank “must remain firmly client-driven”, noting that countries are “following nationally determined pathways toward climate action”. NRDC’s Thwaites tells Carbon Brief:
“It’s one thing for the Europeans to talk about climate…This was the client countries [100 developing countries] saying: ‘No, we want this.’”
Recent research by the ODI thinktank found that 79% of developing-country officials polled wanted to see MDB investment in solar projects, 54% wanted hydropower and 47% wanted wind power. Only 13% wanted investment in gas-power plants.
Rishikesh Ram Bhandary, a senior development researcher at Boston University, has stressed the need for an “enhanced CCAP”, which could be supported by the bank’s new independent evaluation. Among other things, he tells Carbon Brief:
“The bank needs to make a more convincing case about how climate change is being integrated into development priorities rather than competing with them.”
Thwaites says he is hopeful that the outcome is “mostly a symbolic victory for the US”.
However, he says major shareholders from Europe and elsewhere should make it clear to the bank that it is not “the only game in town” when it comes to climate finance. He says:
“If [the World Bank] are going to cave into one shareholder, when the vast majority of the other shareholders are supportive of continuing climate action, they can take their money elsewhere.”
The post Q&A: How will the World Bank’s abandoned finance goal affect climate action? appeared first on Carbon Brief.
Q&A: How will the World Bank’s abandoned finance goal affect climate action?
Rich Wilson is CEO of the Iswe Foundation and co-founder of the Global Citizens’ Assembly.
The numbers are stark. According to the 2026 Global Report on Food Crises, 266 million people across 47 countries experienced high levels of acute food insecurity last year, nearly double the figure recorded a decade ago.
Meanwhile, disruptions to oil, gas and fertiliser flows through the Strait of Hormuz drove a 46% month-on-month spike in urea prices early this year, sending agricultural price indices up 8% and raising the spectre of a global affordability crisis.
This is not a blip. It is a new baseline. The EAT-Lancet Commission concluded that food systems now account for roughly 30% of total greenhouse gas emissions and are the largest single contributor to the climate crisis. The science has been clear for years.
Now some of the solutions to the problem are becoming socially acceptable too.
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Earlier this year, people from more than 60 countries and territories, selected not by vested interest, but by lottery, spent seven weeks examining the evidence on food and climate for the latest Global Citizens’ Assembly. They heard from scientists, farmers and industry. They worked through 42 hours of structured deliberation, engaging with some difficult trade-offs.
They were not asked to endorse a predetermined conclusion. They were asked an open question: what changes, if any, should we make to how we grow, share and eat food, so that everyone has enough to nourish themselves while tackling the causes and impacts of climate change?
Phase down industrial animal farming
Their answer was unambiguous. They voted to protect forests. They voted to phase down industrial animal food production. They voted for supply chain reform and corporate accountability, explicitly rejecting the idea that the burden of change should fall on individual consumers. All 22 of their Calls to Action passed with over 85% support, a super-majority of randomly selected people from every region of the world, in agreement.
Consider what the assembly was actually being asked to decide. Industrial animal food production is the primary driver of tropical deforestation. Protecting more land as forest and ecosystem means less land available for the expansion of industrial production. That is a real trade-off, with real consequences for real livelihoods. Politicians have spent years avoiding it.
These randomly selected people looked at the evidence, deliberated across time zones and cultures, and chose the forests, with 64% in strong support and a further 20% in favour. People from livestock farming communities voted for change. Not because they were told to. Because deliberation led them there.
We estimate there have now been more than 7,000 citizen participation initiatives worldwide in the last decade. They have been organised because, as our 2025 report: People in the Lead demonstrated, people are now consistently and significantly ahead of politicians on issues ranging from climate to AI governance.
The people know best
What the research consistently shows is that ordinary people, given proper evidence and time, produce recommendations that are more effective and more aligned with public values than what emerges from elected legislatures. The gap in global governance is no longer primarily between science and the public. It is between citizens and their political leaders.
That gap matters for more than procedural reasons. When policy treats people as passive recipients rather than active participants, it leaves out the very actors whose behaviour, trust and consent the transition depends on. Institutions that speak only to other institutions, and negotiate only with state actors and industry lobbies, are missing out on the trust and energy of the people they are supposed to serve.
Governments, left to their own devices, are not moving fast enough to prove that argument wrong. At COP30 in Belém last November, countries failed to agree on a fossil fuel phaseout roadmap, and even full implementation of every submitted national climate plan still leaves the world on course for 2.3 to 2.8C of warming.
Citizens’ track at COP
But the Brazilian presidency grasped something important. Among the conference’s more significant outcomes was the formal launch of a Citizens’ Track within the UNFCCC process, a mechanism for connecting the global participation field to intergovernmental climate negotiations. Türkiye and Australia, who together hold the COP31 presidency in Antalya this November, now have the opportunity to strengthen and institutionalise what Brazil began.
In Guatemala, Indigenous women build climate resilience with old and new farming methods
The question before us is no longer whether citizens can contribute to solving these problems. Across the world, in local food networks, in community assemblies and in participatory planning processes, they already are, quietly generating more ambitious and more legitimate solutions than those emerging from formal diplomatic channels.
What is required now is the political courage to connect people to power. Not to consult citizens and file the results. Not to invite them to observe while the real decisions are made elsewhere. But to recognise the public as partners in perhaps the most consequential governance challenge of our time.
The post As food shocks spread, citizens are showing more leadership than governments appeared first on Climate Home News.
As food shocks spread, citizens are showing more leadership than governments
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