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World Bank’s Climate Change Action Plan 2021–2025
The World Bank has authorised retirement of the 45% climate co-benefits target and the 35% target in its Climate Change Action Plan, following disapproval from the United States (the bank’s largest shareholder). The World Bank provides for continuing its Climate Change Action Plan, and its work on climate remains client driven. The Climate Change Action Plan 2021–2025 applies until June 30, 2026.
World Bank Climate Change Action Plan (CCAP) 2021–2025:
| Dimension | Key Details |
|---|---|
| Largest shareholder | The World Bank comprises the United States as the bank’s largest shareholder. |
| Client-driven approach | The CCAP authorises the World Bank’s climate work to remain firmly client driven. |
| Genesis | The first CCAP is established under 2016 as a five-year Climate Change Action Plan 2016–2020, launched after the Paris Agreement. |
| Plan period | The second CCAP comprises the period 2021–2025. |
| Climate finance allocation | The second CCAP provides for allocating 35% to climate finance. |
| Extension | The CCAP 2021–2025 applies until June 30, 2026. |
| Purpose | The CCAP provides for increasing financial and technical support to client countries and private sector clients for mitigation and adaptation. |
| Climate co-benefits (definition) | Climate co-benefits comprise financial resources which deliver positive benefits associated with climate change mitigation and adaptation. |
| World Bank financing (FY 2025) | In FY 2025, 48% of World Bank financing comprises climate co-benefits. |
| India project coverage (examples) | World Bank projects in India with climate co-benefits apply to states such as Uttar Pradesh, Maharashtra, and Kerala. |
| NCQG at CoP29 (UNFCCC) | The New Collective Quantified Goal adopted at CoP29 of the UNFCCC mandates scaling up financing for developing countries to at least USD 1.3 trillion annually by 2035 from all sources. |
| UNEP Adaptation Gap Report (2025) | UNEP’s 2025 Adaptation Gap Report provides for the estimate that adaptation financing needs in developing countries are 12–14 times current flows. |
| NITI Aayog estimate (India) | NITI Aayog provides for the estimate that India needs cumulative investment requirements of USD 22.7 trillion by 2070. |