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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
Floods in the south, drought in the north
EXTREME WEATHER: China has been hit by extreme weather over the past two weeks. About 35% of its corn production was affected by severe drought in north China where some rivers had “dried up a month ago”, reported Reuters. In the south, torrential rain and flooding killed at least 38 people in Guangdong province – China’s most populated – as well as eight people in Hunan province and two in Anhui province. Local newspaper Guangxi Daily reported that this week’s floods in Guilin, capital city of Guangxi province, were the largest in the area since 1998. Chinese president Xi Jinping “has urged all-out efforts to fight floods and droughts, and to ensure solid work in disaster relief”, said state agency Xinhua. Some 33 rivers in China “exceeded warning levels”, according to Xinhua.
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GLOBAL WARNING: Yang Pingjian, director of the environmental sociology department at the Chinese Academy of Environmental Sciences, wrote in China Environment News that “the adverse effects of climate change have become more and more obvious: heavy rainfall, typhoons, hail and other extreme weather occur” in China. The National Climate Center said that China is “experiencing more frequent and intense heatwaves due to global warming”, reported China Daily. The “average onset of high temperatures (those exceeding 35C) has advanced by 2.5 days per decade” and the average heatwave starting date has moved from 24 June in 1981-1990 to 7 June in 2011-2020, the outlet added. New research covered by the Hong Kong-based South China Morning Post found that “widespread heat stress will be felt by most of China’s population by the end of the century due to climate change, with the north of the country expected to be hit hardest”.
SUMMER PRESSURE: These high temperatures may cause peak electricity consumption to grow by more than 100 gigawatts (GW) year-on-year during this summer’s peak period, putting pressure on “ensuring power supply”, China Securities Journal reported. Writing in financial newspaper Caixin, Qin Qi, China analyst at the Centre for Research on Energy and Clean Air (CREA) noted that this expected 100GW increase is “similar to 2022’s growth, which saw power shortages and blackouts”, adding that this “highlighted the need for a more flexible inter-provincial electricity trading mechanism”. She also pointed to the need for flexible grid operations and demand-side measures to help China “effectively manage peak demand pressures without compromising its climate commitments”.
Renewable energy pushed thermal power into decline
THERMAL DECLINE: A surge in solar power and hydropower in China in May led to a 4.3% decline in thermal power – mainly coal – that month, Bloomberg reported, adding that this supported earlier Carbon Brief analysis finding China’s emissions may fall this year. The drop in thermal power was the largest since 2022 and could continue as long as China does not “reprioritise carbon-heavy investment to revive growth”, the outlet added. Hydropower generation rose 38.6% year-on-year in May 2024 and solar by 29.1%, state-run industry newspaper China Energy Net said.
SOLAR CAPACITY: China’s National Energy Administration (NEA) pledged in a press conference to “guide production capacity expansion” and “prevent unnecessary investments” in the country’s solar manufacturing sector, following a call for help from industry participants “grappl[ing] with a surge in capacity”, according to finance newswire Yicai. Economic news outlet Jiemian quoted Li Chuangjun, director of the NEA’s new energy and renewable energy department, saying at the press conference that the industry should “avoid repetitive construction of low-end solar capacity”.
NO OVERCAPACITY?: NEA head Zhang Jianhua said at the same press conference that “whether from the perspective of comparative advantage or of global market demand, China’s new energy industry does not have a so-called ‘overcapacity’ problem”, state-run newspaper Science and Technology Daily reported. Zhang added that “supply moderately exceeding demand is helpful for achieving technological progress and reducing product costs”, and that the solar industry specifically is characterised by a strong private sector, “sufficient” competition and companies “choosing to expand production” due to “optimistic outlooks towards future markets”, according to the newspaper.
EU and China to discuss electric vehicle tariffs
NEW TALKS: After expressing opposition to the EU’s additional tariffs on Chinese electric vehicles (EVs) and announcing an anti-dumping investigation into pork products from the EU, China agreed to a new discussion over the tariffs this week, the Financial Times reported. Bloomberg said the talks “may buy time” for China to “sow enough opposition” between EU member states, as Beijing suggested German luxury automakers “could benefit if Berlin convinces the EU to drop tariffs”.
MIDDLEMAN GERMANY?: Germany’s economy minister Robert Habeck, who visited China last weekend, showed there was an “open attitude of China and some politicians in the EU in seeking dialogue and cooperation amid trade friction”, said a Global Times’ editorial. Habeck said the EU’s tariffs measures were “not a punishment” and its “doors are open for discussions”, Reuters reported. The German Chamber of Commerce in East China, a business advocacy group, also argued that the EU tariffs “cannot offer protection to German carmakers or increase their competitiveness”, SCMP reported. Reuters said that China’s share of Germany’s EV imports rose to 40.9% in the first quarter of this year.
CHINA COMPROMISE?: China’s state-controlled Global Times newspaper wrote “observers said the best outcome the Chinese side wants is that the EC, the executive body of the EU, scrap its tariff decision before 4 July and abide by WTO rules”. Another state-run newspaper China Daily said in an editorial that Beijing is “willing…to try and resolve the reasonable concerns of the EU” and hopes that Brussels will avoid escalating frictions “by meeting China halfway”. In an interview with the Financial Times, Zhu Min, a member of China’s “five-year plan” committee, argued there was no “overcapacity” or “dumping” of cheap EVs on the European market. He said the price of EVs is higher overseas than in the domestic market and that China’s domestic buyer rebate also applied to foreign EV brands, such as Tesla in China, added the outlet.
EU-China climate dialogue and Li’s new commitment
CHINA-EU TALKS: Amid their ongoing tariff dispute, China and the EU held the fifth “high-level environment and climate dialogue” on 18 June, said Xinhua. The Chinese vice premier Ding Xuexiang and the European Commission’s Maroš Šefčovič agreed there were “common interests” and discussed “climate change and protecting the ecological environment”, the state news agency continued. Ding also said the EU’s tariff plan was “typical protectionism” which is “not conducive to the EU’s green transformation”, added the agency. China’s minister of ecology and environment, Huang Runqiu, and the EU’s commissioner for climate action, Wopke Hoekstra, signed “an updated memorandum of understanding to enhance cooperation on emissions trading”, the Chinese International Environment Net reported.
PREMIER’S REMARKS: The Chinese premier Li Qiang announced yesterday that “China is committed to addressing climate change and has been proactively developing green industries such as new energy” at the World Economic Forum’s “summer Davos” meetings in Dalian, China, Xinhua reported. Li said “the green transition itself holds immense potential for development” and that all nations should “create more growth drivers for the green economy”, added Xinhua. Reuters said Li also “hit back” at overcapacity accusations from the US and EU, arguing that China’s production of clean energy technologies “first met our domestic demand, but also enrich[es] global supply”. At a domestic conference, president Xi encouraged technology innovation and said Chinese EVs “add[ed] new momentum to the global automotive industry”, according to Xinhua.
Spotlight
How is China adapting to increasingly frequent flooding?
In recent years, China has seen more frequent floods caused by heavy rains. Dozens of people have died in south China this month due to torrential rain and flooding. In April, floods caused damage worth 12bn yuan ($1.65bn) – “the worst [losses] in 10 years”.
In this issue, Carbon Brief looks at the reasons for China’s recent floods and how the country is trying to adapt. A full version of this article will be published on Carbon Brief’s website.
Rising floods
There are various factors behind the frequent heavy rain and flooding in China in recent years.
In a press briefing covered by China Daily, Zheng Zhihai, chief forecaster at the National Climate Centre of the China Meteorological Administration (CMA), said that “higher than normal temperatures” were behind frequent heavy rainfall in southern provinces since April.
China Daily noted: “This temperature increase has elevated the atmospheric moisture levels, intensified convective processes, and led to more frequent occurrences of heavy rainfall.”
Sea level rise has also been cited as a primary factor behind China’s coastal floods, as it increases the intensity and frequency of storm surges and raises baseline water levels.
The El Niño-Southern Oscillation, a natural climate cycle that entered its warmer El Niño phase in mid 2023, was partly to blame as it raised sea surface temperatures and directed vast amounts of water vapour from the South China Sea and the Bay of Bengal towards southern China, found one analysis.
Dr Faith Chan, head of the School of Geographical Sciences at the University of Nottingham Ningbo China, told Carbon Brief that the rainfall pattern in Guangdong during this April was quite similar to the intensive rainstorm on 6-8 September in 2023 after Typhoon Haikui.
In addition to the natural causes, human activity also played a role. Chan said:
“Of course, the El Niño effect enhanced the wet and low-pressure moist current in the east coast of China and the west Pacific. But human-induced climate change led to the greenhouse effect and caused sea temperature to rise, which caused more storms and low-pressure rain belts. That is a fact.”
Indeed, Prof Yang Chen of the Chinese Academy of Meteorological Sciences told Carbon Brief that human-caused intensification of heavy rainfall over China had been even larger than expected.
Adaptation measures
China has built a number of large water projects to prevent flooding, such as the south-north water transfer projects in the Yangtze river that was launched in 2002.
In the most recent “national water network construction planning outline” published by the State Council – China’s top administrative authority – constructing “national water networks” by 2035 is labelled as the “backbones” of future flood prevention.
China also launched the “sponge city programme (SCP)” in 2015.
Sponge cities cost the government 1.5–1.8bn yuan ($210-250m) between 2015 and 2018. They are designed to collect, purify and re-use at least 70% of the floodwaters through “green-blue facilities”, such as green roofs, permeable pavements and stormwater parks, in urban areas. The overall system was meant to resolve the issues of urban heating, freshwater scarcity and flooding all at once.
But the 2021 floods in Zhengzhou, a showcase sponge city, laid bare the inadequacy of the SCP in the face of climate change.
A paper suggested the SCP, which is designed to withstand one-in-30-year rain events, has limited effectiveness against more intense downpours.
Additionally, SCP can create a false sense of security, which encourages more people to move to high-risk areas, leading to an increase in population and assets in exposed areas that require ever-increasing protection in a cycle referred to as a “levee effect”, said Chen.
Meanwhile, a lack of coordination added another layer of difficulties. Zheng Yan, researcher at China Academy of Social Sciences, noted in the aftermath of the 2023 Beijing flood that government bodies often looked after their own jurisdiction and aimed only to move the problem and divert the floods quickly, which piled pressure on cities in downstream areas.
Looking abroad
As flooding is a challenge faced by cities across the world, there is a plethora of ideas and technologies that China can draw on.
Rotterdam, a Dutch delta city of 600,000 people that is surrounded by water on four sides, has built water storage facilities, such as an underground parking garage with a basin the size of four Olympic swimming pools. It has also installed green roofs and facades to absorb rainwater.
Japan has built an intricate network of concrete tunnels and vaults about 14 storeys beneath the Saitama prefecture in the outskirts of Tokyo, Japan’s capital city, that could hold more than 1,000 Olympic pools of rainwater.
Both cities’ underground flood diversion facilities are often used as a prime example of a viable flood defence system for urban cities on the frontline of climate change.
Hong Kong has a similar underground stormwater storage system beneath the sport pitches of the Happy Valley Racecourse, designed to withstand one-in-50-years flood events.
Chan said it is difficult to compare flood mitigation measures as each city is very different in terms of geography, demographic, densities and topography.
Nevertheless, he told Carbon Brief:
“In my opinion, China’s megacities should think about using underground spaces to store the sudden extreme discharge from super intensive rainstorms…Tokyo and Rotterdam are quite wise in that regard for using their underground spaces.”
This Spotlight is written by freelance climate journalist Jia Ning Tan for Carbon Brief.
Watch, read, listen
CHINA IN SPACE: The Economist’s “The Intelligence” podcast aired an episode about China becoming a “superpower” in the physical sciences.
RUSSIA-CHINA PIPELINE: A Financial Times podcast said Russia and China are “deadlocked” over a gas pipeline deal.
FARMING LAND: The Chinese communist party’s magazine Qiu Shi published an article by Hunan province’s communist theory study group on protecting arable land and the “political responsibilities” related to it.
CARBON FOOTPRINT: Finance outlet Southern Finance Omnimedia’s social media account 21 Low Carbon published an explanation of China’s new “national unified carbon footprint management system”.
$940m
The total value of an international “sustainability bond” issued by the Bank of China for investment in “renewable energy, sustainable water resources and wastewater management infrastructure projects” in the countries that joined China’s Belt and Road Initiatives (BRI). (The total value of loans for BRI countries reached $87bn in 2016 and $3.7bn in 2021.)
New science
Climate Policy
China and the US – two of the world’s biggest methane emitters – should make their methane policies more “climate-centric”, according to a new study. Existing policies relating to methane are concentrated in the energy sector and are “largely driven” by safety, pollution concerns and use of resources, rather than reducing greenhouse gas emissions, the study said. The researchers suggested that both countries should focus on methane mitigation and “consider more climate-centric policies”.
Energy Policy
The Chinese government has employed economic incentives to offset the financial impact of the clean energy transition, but “these measures may not fully address the underlying issue of climate apathy, wherein individuals prioritise immediate interests over long-term climate concerns”, a new study said. Surveying 4,700 Chinese adults each year for three years, the study found that those on low incomes were less likely to support climate policy, with “climate apathy” explaining a much larger share of this effect – some 38% – than “economic burden”, which only explained 8% of the effect on policy support. The authors concluded: “Addressing climate apathy is a cost-effective strategy to boost policy support.”
Investigating the impact of weather on stroke in summer
International Journal of Biometeorology
A new study collected data of stroke hospitalisation in the city of Tianjin, China, from 2016 to summer 2022. The study found a direct link between temperature extremes and hospitalisation: “83% of the Inpatient-heavy events within the study period were caused by a combination of dramatic temperature changes and continuous high temperatures.” The authors concluded: “More attention should be paid to the combined effects of continuous high temperature and sudden temperature changes in summer stroke prevention.”
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 27 June 2024: Extreme weather; New talks on EV tariffs; Coal power decline appeared first on Carbon Brief.
China Briefing 27 June 2024: Extreme weather; New talks on EV tariffs; Coal power decline
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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