27 May 2026
Sent via email
To:
Ajay Banga, President, World Bank Group
Paschal Donohoe, Managing Director & Chief Knowledge Officer, World Bank Group
World Bank Group executive directors
Dear World Bank management and executive directors,
Pending expiry of World Bank Climate Change Action Plan
We, the undersigned civil society organizations, write to voice our collective concern regarding widespread reports that the World Bank’s Climate Change Action Plan (CCAP) is currently due to expire on 30 June 2026, without a clear plan from World Bank management about how to advance the World Bank’s climate commitments. This is particularly unacceptable given that World Bank shareholders agreed in the IDA21 replenishment report, approved by IDA’s executive directors in March 2025, that “The WBG commits to developing a successor to the Climate Change Action Plan (CCAP) 2021-2025. It will evolve in view of the WBG Scorecard, corporate targets, and other strategic initiatives.” Given that this report forms the legal basis for the IDA21 replenishment, management’s unclear signals regarding its intent to follow through on this commitment raise serious governance concerns for the World Bank Group as a whole.
We reject the argument made by some World Bank shareholders that climate change is not a core concern of development finance institutions in 2026. With the internationally agreed 1.5°C global warming limit increasingly likely to be overshot by the early 2030s, the Bank’s efforts to eradicate extreme poverty and promote shared prosperity on a ‘liveable planet’ are increasingly in peril, as climate disasters erase development gains, increase climate vulnerable countries’ debt burdens, and exacerbate cost of capital issues that limit investments in development. To exacerbate matters, developing countries are facing yet another external shock due to the Iran war, which, inter alia, has cast doubt on the viability of liquefied natural gas as a ‘transition fuel’ and risks triggering severe food price inflation. In this context, demand for renewable energy is growing, with energy security and development among the core drivers. As noted in ODI’s recently published report, Reforming multilateral development banks: perspectives from client countries, “When asked specifically about the type of energy projects respondents would prefer to invest in, most cited renewables: 79% for solar photovoltaics, 54% for hydropower plants and 47% for wind energy,” with officials highlighting climate change resilience and mitigation as key overall priorities.
The future of the Bank’s CCAP is thus a referendum on its credibility as a multilateral institution that is responsive to the views of the majority of its member countries. As civil society organizations from around the world, we call for the following:
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No lapse or retrogression in the World Bank’s climate commitments: The science is clear – the climate crisis is intensifying, with increasingly severe impacts for countries and communities on the frontlines. At this moment, multilateral institutions should be redoubling their efforts to address this crisis. Given this, we call for a further one-year extension of the 2021-2025 CCAP, allowing time for the development of a new five-year CCAP, via consultation with Bank member states and global civil society - in line with commitments the World Bank has already made as part of the IDA21 replenishment.
- Strengthening of the World Bank’s Paris Agreement alignment process and the quality and transparency of climate finance provision: The Bank must continue to refine and strengthen its Group-wide commitment to align all its investments, trade financing and other activities with the Paris Agreement, after initiating this process on 1 July 2023. Given significant climate financing needs, the commitment by the World Bank and other multilateral development banks (MDBs) to provide $120 billion in climate finance to low- and middle-income countries by 2030 is a key source of financing amid global efforts to mobilise $300 billion per year in climate finance by 2035. The World Bank must maintain its 45% climate finance target, increase its provision of grants, continue to report on climate finance totals annually (including disaggregated data by project of climate finance before approval and during implementation), and work with other MDBs to improve and refine joint climate finance definitions to ensure this finance has a genuine impact on climate action. The Bank must improve the transparency of climate finance reporting for IFC and MIGA.
- World Bank energy investments must be aligned with 1.5°C: energy investments and advice should prioritise decentralised renewable energy, energy access and community-centred energy systems that meet the needs of people, particularly women and marginalised communities. The Bank must work to align its policies with a just transition away from fossil fuels. With a growing group of countries committing to transition away from fossil fuels, the World Bank must support a just transition for countries and workers by ensuring adequate finance for strategic renewable energy investments (including financing with greater concessionality), and by equitably phasing out all direct and indirect financing for fossil fuel exploration, extraction, transport and power generation, including through financial intermediaries. The Bank must recognize that continued investments in fossil fuel expansion and associated infrastructure deepen authoritarianism, conflict economies, and ecological harm across the Global South. The Bank’s new critical minerals strategy must avoid creating new environmental “sacrifice zones” and work to ensure value-addition for source countries to enable green economic transformation.
- Strong integration of climate change into the revision of the IFC and MIGA Performance Standards as part of broader due diligence efforts: To remain aligned with current climate goals and best available science and practices in resource management and pollution prevention, the Performance Standards require an ambitious update. This must include closing loopholes that allow financial intermediaries to fund coal and fossil fuel expansion. Doing so would enhance the development impact of IFC’s investments and MIGA’s support for projects, re-affirm the Performance Standards as a global reference point for commercial finance, and help promote resilient, equitable, and low-carbon development pathways. The Bank must also align its policies and investments with its climate change due diligence obligations under international law. Failure to renew and improve the CCAP to meet these obligations would be a step backwards in meeting these requirements.
We look forward to discussing these matters with you at your earliest convenience.
The undersigned:
- AbibiNsroma Foundation
- Action Aid International
- Africa Center for Energy and Environmental Sustainability
- Africa Change Lab
- African Climate Reality Project
- African Industrial Solution
- Aid Life Learn Environment
- Aksyon Klima Pilipinas
- Amal Organization for Relief and Development
- Amnesty International
- Bank Climate Advocates
- Bank Information Center
- Bretton Woods Project
- CAJUST Senegal
- Canadian Association of the Club of Rome
- Care Aid Support Initiative
- CIDSE, an international family of Catholic social justice organizations
- Citizens Network for Community Development Zambia
- Changing Lives CBO
- Christian Aid
- Climate Action Network Africa
- Climate Action Network International
- Climate Change Network of Kenya
- CNCD-11.11.11
- Compassion in World Farming International
- Co-ordination Office of the Austrian Bishops' Conference for International Cooperation and Global Church
- Community Action for Health and Development, Kenya
- Community Climate and Energy Shield Initiative
- Counter Balance
- Debt Justice Norway
- Dulcet Association
- Economic Justice Network Of FOCCISA
- EKOenergy ecolabel
- End Climate Silence
- Eurodad
- Fossil Free South Africa
- Foundation for Environmental Management and Campaign Against Poverty
- Fundación Ambiente y Recursos Naturales
- Germanwatch
- Global Policy Forum Europe
- Global Responsibility
- Globalt Fokus
- Greenpeace International
- Grupo de Financiamiento Climático para América Latina y el Caribe
- Habitat Defenders Africa
- Indus Consortium
- Industrious Labs
- Initiative for Inclusive Empowerment
- Innovea Development Foundation
- Islamic Relief
- International Accountability Project
- Japan Center for a Sustainable Environment and Society
- Jubilee Australia Research Centre
- Kenya Network of Grassroots Women Foundation
- Kitui County Disability Network
- MenaFem Movement
- Mercy Corps
- Misereor
- Mothers Rise Up
- Natural Resources Defense Council
- Oil Change International
- Oxfam
- Peace Point Development Foundation
- Polen Transiciones Justas
- Power Shift Africa
- Quest For Growth and Development Foundation
- Recourse
- Resilient40
- Rockville Centre for Sustainable Development
- South Eastern Kenya University
- Southern Africa Region Climate Action Network
- Strategic Youth Network for Development
- Surfrider Argentina
- Sustainable Futures Initiative
- Sustaining Way
- The Climate Reality Project
- The Climate Reality Project Canada
- The Climate Reality Project Europe
- The Green Connection
- The Swallows India Bangladesh
- Trend Asia
- Urgewald
- WECF International
- Women for Green Economy Movement Uganda
- World Animal Protection
- Yanayi Haki Afriqya
- YIM NPC - Environmental, Social Development & Sustainability
- Youth and Environment Europe
- 350.org