Welcome to Carbon Brief’s China Briefing.
Carbon Brief handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
Clean-energy industry drives China growth in 2023
CLEANTECH BOOM: New analysis for Carbon Brief found that clean-energy sectors – spanning low-carbon power, grids, energy storage, electric vehicles (EVs) and railways – contributed 11.4tn yuan ($1.6tn) to China’s economy in 2023, accounting for “all of the growth in Chinese investment and a larger share of economic growth than any other part of the economy”. This was driven, in particular, by the “new three” industries of solar power, EVs and batteries. Investment totalled 6.3tn yuan ($890bn), growing 40% year-on-year and almost equalling all global investments in fossil fuel supply last year – or the entire economies of Switzerland or Turkey.
GDP BOOST: Clean-energy sectors accounted for 40% of the expansion of GDP in 2023, the analysis showed. Without this contribution, China’s GDP would have risen only by 3% instead of 5.2% – well below the growth target set for 2023. This makes the industry not only crucial for China’s energy transition, but also for “broader economic and industrial” development, found the analysis.
OVERCAPACITY CONCERNS: However, the analysis continued, “the spectre of overcapacity means China’s clean-energy investment growth…cannot continue indefinitely”, adding that “the manufacturing expansion has already saturated most of the global market”. In related news, Jiemian reported exports of the “new three” industries reached more than 1tn yuan ($141bn). This has seen the EU, among others, take steps to support their own clean-energy industries, reported Agence France-Presse, adding that Chinese premier Li Qiang recently held “frank” talks with European Commission president Ursula von der Leyen on trade imbalances.
China relaunched voluntary carbon market
RESUMED TRADING: State-run broadcaster CCTV reported that China’s voluntary carbon-trading system, the China Certified Emission Reduction (CCER) programme, resumed trading on 22 January. CCER’s relaunch “marks the completion of China’s domestic carbon-market architecture”, the broadcaster added. Beijing News described CCER as an “institutional innovation to mobilise the power of the whole society to participate in greenhouse gas emission reduction actions”.
NEW CREDITS?: Economic outlet Jiemian said that CCER project registration was suspended in 2017. It reported that “preparation on the policy end” for restarting issuance of carbon credits under the scheme is “almost complete”, pending the “state administration for market regulation (SAMR)…releas[ing] the list of recognised validation and verification institutions”. The scale of new CCER issuance is predicted to be between tens of millions to 100m tonnes per year, according to one analyst, the newspaper adds.
INCLUDED SCOPE: Finance news outlet EastMoney reported that the greenhouse gas trading under the scheme is primarily open to enterprises or institutions in four major sectors: “afforestation carbon sinks, grid-connected solar-thermal power generation, grid-connected offshore wind power generation and mangrove plantation”. It may in future allow individuals “to sell carbon emissions generated from green behaviours under the CCER scheme…as the trading mechanism matures”, according to the South China Morning Post.
Tasks, measures and timelines for ‘Beautiful China’
BEAUTIFUL CHINA: The top bodies of the Chinese government and governing Communist party – the state council and the central committee, respectively – issued the full text of new instructions on “comprehensively promoting the construction of a Beautiful China” in a 27 December official release, published by state news agency Xinhua on 11 January. The Beautiful China initiative is a “top-level development blueprint detailing specific targets for…the nation’s green and high-quality growth”, another Xinhua report explained. ClientEarth’s Dimitri De Boer wrote in China Dialogue that the initiative “ties a good environment to a sense of national pride”.
KEY GOALS: The document outlined a slew of tasks, measures and timelines within China’s overall push to peak its carbon emissions before 2030 and reach carbon neutrality by 2060. By 2027, “green and low-carbon development” will be “further promoted”, it said. By 2035, “green production methods and lifestyles will be widely formed”. By the middle of the century, “ecological civilisation will be comprehensively upgraded…[with] deep decarbonisation achieved in key areas”. Goals listed in the document include: the country will compile an annual national greenhouse gas inventory; “gradually shift” to “dual control” of carbon emissions; protect more than 3.15m square kilometres of land from being eligible for development projects under the national ecological “red line” policy; ensure China’s cities become “waste-free” by 2035; and see new energy vehicles (NEVs, mostly electric vehicles) comprise around 45% of new cars by 2027.
OFFICIAL COMMENT: The document was passed in a meeting chaired by Chinese president Xi Jinping, who said that “building a Beautiful China is an important goal for building a modern socialist country”, the state-run China Daily reported – giving the document more weight and signalling to officials that China’s carbon-neutrality goals remain an important target. Adding to the momentum, following its publication, Sun Jinlong and Huang Runqiu – the Communist party secretary and the minister at the ministry of ecology and environment (MEE), respectively – wrote an opinion piece in the Communist party-backed newspaper People’s Daily saying that the document “clearly defines the overall requirements, key tasks and major initiatives” guiding the Beautiful China initiative. In an interview with Xinhua, a senior official of the MEE said incentives and policy measures could “mobilise enthusiasm, initiative and creativity” to build a Beautiful China.
US and China climate envoys step down
KERRY RETIRES: US climate envoy John Kerry plans to retire from his role in the next few months, in order “to help President Biden’s [re-election] campaign”, Axios reported. In stepping back from “a major diplomatic role that was created especially for him”, the New York Times reported, Kerry casts the position into “an uncertain future”. The fact that he has chosen to do so following the retirement of Chinese climate envoy Xie Zhenhua “[raises] concerns about what climate diplomacy will look [like]” without their cooperative personal dynamic, it added.
END OF AN ERA: Xie and Kerry “have a close personal relationship”, Climate Home News reported, adding that “Xie’s return from retirement in 2021 was widely interpreted as a response to Kerry’s appointment [to the climate envoy role]”. “If Kerry and Xie weren’t in office…there’s no way we’d be even close to where we’re at,” the Financial Times quoted Jake Schmidt, a senior director at thinktank NRDC, saying. It also reported that Kerry said he and Xie were “doing all we can to stay in very close touch; and he and I will continue to work in respective institutions [to forge collaboration on climate change]”.
NEW BLOOD: Career diplomat Liu Zhenmin – profiled in Carbon Brief’s DeBriefed newsletter – will become China’s new climate envoy, Reuters reported. The newswire added that Liu has “long experience in climate diplomacy”, participating in both the Kyoto Protocol and Paris Agreement negotiations. Liu “was a key driver in landing the Kyoto Protocol”, Greenpeace East Asia chief China representative Yuan Ying told Carbon Brief, which is “a promising piece of experience”. However, Climate Home News quoted an anonymous analyst as saying “many experts wanted someone from the environment ministry appointed”, as “[the foreign ministry] approaches climate as a card in US-China [manoeuvring]” instead of seeing it “as a real issue that needs to be solved”.
Spotlight
Interview with Prof Zou Ji, CEO and president of the Energy Foundation China
At COP28, Carbon Brief sat down with Prof Zou Ji, CEO and president of the Energy Foundation China, to discuss China’s energy transition.
Prof Zou previously served as a deputy director-general of China’s National Center for Climate Change Strategy and International Cooperation.
He was part of China’s negotiation team for the Paris Agreement and a lead author of several Intergovernmental Panel on Climate Change assessment reports.
Below are highlights from the wide-ranging conversation, covering China’s stance on coal, renewables, issues-based alliances and more. The full interview will be published on the Carbon Brief website soon.
China’s decisions at COP28
On signing pledges at COP: “If you look at the whole history of the COP…I do not [remember] China joining any alliances. I have never seen that…As a party, China [is only concerned with] official procedures, waiting for a legal framework of the UNFCCC or the Paris Agreement.”
On why China did not join the pledge to triple renewables and double efficiency: “[Before COP28] we have not seen [it laid out] very clearly which year should be the base year [from which tripling renewables should be calculated]. Should it be 2020? Should it be 2022? This might seem to be technical but, [in] the past two years, global development of renewables, especially in China, [have been significantly boosted, and so]…the difference in targets might be very significant.”
On China’s commitment to decarbonisation: “If you look back at history, there have been very few cases that show China [first making] and then [giving up] a commitment. This is not the political culture in China.”
The future of coal
On fossil fuel phaseout: “I would like to see…[China] very quickly enlarging its renewable capacity. Only if [there is] adequate capacity and generation of renewables can this lead to a real phasing out or phasing down of fossil fuels.”
On others’ views of required coal capacity: “Even though China will reach its [2060] carbon neutrality target, it will continue to have to maintain 600 gigawatts of coal-fired power plant capacity. These are the sort of estimations [we’re working with now].” (Prof Zou disagrees with this, believing that renewables growth, better grid connectivity and increased energy storage capacity should reduce the need for such a large amount of coal capacity.)
On the need for CCUS: “In some sectors, like, for example, iron and steel, cement, chemicals and petrochemicals, we do need carbon capture, utilisation and storage (CCUS), because it is very difficult to phase out coal or carbon dioxide [completely].”
On CCUS in the power sector: “I have mixed feelings about CCUS for the power sector. I have an ideal vision that we can reach real zero emissions in these sectors through a more developed grid system, with more connectivity across provinces or regions and the use of AI technology.”
Transitioning to renewable energy
On ensuring more renewables uptake: “We have raised the share of renewable power generation from seven, eight, nine per cent to today’s 16%. This is progress, but it is not quick enough or large enough. We want to push the grid companies…to do more and do it faster.”
On the power of distributed solar: “We should also consider…creat[ing] another, totally new power system. This would be a sort of nexus of a centralised and decentralised grid system…If [the central grid] is having difficulties [increasing renewable generation], and if these are very challenging to overcome, then let’s [shift] to a lot of microgrids.”
On distributed solar growth: “Today, the share of distributed [renewables] is still lower than centralised renewables. But the incremental [distributed] renewables growth has become higher than growth of centralised renewables in the past year or two, and I would assume this will remain a trend in the future.”
Measuring energy use
On China’s electricity consumption: “For low-income level groups, although their income has not grown very much, their consumption preferences and mindsets – especially for younger generations of consumers – mean they are more willing to use electricity [than previous generations].”
On comparisons of China to the EU and US: “There is a structural [difference] compared to the [energy mix] in Europe and the US. The majority of energy use [in China] has been for industrial production, rather than for residential [use]…In China, the average power consumption per capita is around 6,000 kilowatt-hours (kWh), compared to 8,000kWh in Europe and over 12,000kWh in the US.”
On energy efficiency: “Physically, I think China has become better and better [in terms of] its efficiency, but, economically, this cannot produce as high a value-add as Europe and the US in monetary terms.”
On challenges calculating carbon intensity: “The raising of interest rates by the US Federal Reserve makes US dollars more expensive, increasing foreign exchange rates which then enlarges the monetary GDP gap making Chinese GDP [in dollar terms] fall, and carbon intensity rise.”
Watch, read, listen
FOSSIL FUEL HIGHS: Clyde Russell, Asia commodities and energy columnist at Reuters, wrote that, although China’s crude oil and coal imports “all soared to record highs in 2023”, crude oil is likely being added to inventories rather than being used, while the spike in coal is a temporary response to hydropower shortages.
ROSEWOOD DEFORESTATION: The China-Global South Project spoke to Ma Haibing, Asia policy specialist at the Environmental Investigation Agency, about illegal harvesting of rosewood by Chinese traders in the “rapidly shrinking forests” of west Africa.
GREEN SHOOTS: Yicai interviewed Zhang Xiaoqiang, executive vice-president of the China Center for International Economic Exchanges (CCIEE), on prospects for “green” development in China in 2024, the growth of renewables, cross-provincial power transmission and other topics.
ANTARCTIC RESEARCH: CCTV broadcasted a short news report on the progress of the 40th Chinese Antarctic research expedition in building China’s newest research station in Antarctica.
New science
Drought-related wildfire accounts for one-third of the forest wildfires in subtropical China
Agricultural and Forest Meteorology
A new study found that “drought plays a dominant role” in wildfires in subtropical China, adding that “from 2001 to 2020, excess wildfires caused by drought accounted for approximately 31% of the total number of forest fire points during the fire season (November to May)”. As the drying trend caused by climate change intensifies, wildfires will “show different patterns due to the large differences in the sensitivity of wildfire to drought in subtropical China”, it added.
Bulletin of the American Meteorological Society
Human-caused climate change made the August 2022 heatwave in southern China 50% hotter than it would have been without global warming, according to new research. The heatwave, the researchers noted, was “extraordinary and unprecedented”, being the “longest-lasting and most intense [China has seen] since 1961”. The study also found that, although it was focused on southern China, “the main conclusions also apply to the eastern Tibetan plateau”.
Potential for CO2 storage in shale basins in China
International Journal of Greenhouse Gas Control
Researchers used the latest data to calculate new “potentials of [carbon dioxide (CO2)] storage in major shale gas/oil basins in China”, driven by the fact that China, as the second largest shale gas and oil producing country, possesses “large and significant” shale basins. They found that China could sequester approximately 6,194bn tonnes of CO2 in shale basins, equivalent to 620 years’ of China’s projected carbon emissions.
China Briefing is compiled by Anika Patel and edited by Wanyuan Song and Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 25 January: Clean energy drives growth; ‘Beautiful China’ instructions; Interview with EFC’s Prof Zou Ji appeared first on Carbon Brief.
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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