In a striking rebuke to U.S. climate policy, 19 of the World Bank’s 25 executive directors signed a joint statement reaffirming their commitment to expanding climate finance, even as the United States declined to join them. The statement, representing 120 countries, reaffirms the Bank’s pledge to dedicate 45% of annual financing toward climate‑related projects and emphasizes that its lending should stay aligned with the Paris Agreement.

The dissenters, countries including the U.S., Russia, Saudi Arabia, and Kuwait, opted out of the declaration, citing concerns about mission creep and a drift from the Bank’s core development objectives. Japan and India abstained, reportedly due to ongoing trade negotiations with Washington.

At the heart of the dispute is a fundamental tension over the role of multilateral development banks: should they prioritize poverty alleviation, infrastructure, and classic development goals, or increasingly pivot toward global public goods like climate resilience and nature protection? The 19 directors argue for the latter, insisting that sustainable development is inseparable from climate action.

Their statement also pushes for a stronger focus on areas that the Bank has so far under‑emphasized: pollution control, nature integration, adaptation and resilience, just transition for coal workers, and carbon markets. The signatories call for more robust support to countries in designing long‑term climate and development strategies, especially in vulnerable regions exposed to climate risks.

Timing is crucial. The statement comes just ahead of the World Bank–IMF annual meetings in Washington, traditionally a moment to showcase climate commitments. But with the U.S. refusal to sign, consensus will be harder to build and signals widening geopolitical fractures over climate finance.

The rift underscores how climate policy is becoming a litmus test of influence within global institutions. While European and emerging‑market directors are pushing for more ambitious climate mandates, U.S. resistance signals a pushback against what it sees as overreach. Whether the World Bank can maintain momentum in its climate agenda, without the explicit backing of one of its most powerful shareholders, will now be a central question this week.

Source:

https://esgnews.com/us-declines-to-back-world-bank-climate-statement-signed-by-19-directors/