Countries that hosted recent climate meetings worry banks are backing away from promises to help poor nations fight global warming. The Trump administration cut foreign aid and told American lenders like the World Bank to stop focusing on climate money. Poor countries need $1.3 trillion each year through 2035 to switch to clean energy and protect themselves from extreme weather. Rich nations only agreed to provide $300 billion annually, which experts say falls far short of what developing countries actually need.
Azerbaijan and Brazil started a program to fill the funding gap but only two development banks have shown interest. Officials from Azerbaijan visited Washington hoping to find the same support they saw before but discovered institutions reluctant to discuss climate lending at all. American Treasury Secretary Scott Bessent urged the World Bank to invest in dependable technologies instead of climate targets. This could mean putting money into gas and other fossil fuel projects rather than renewable energy.
The World Bank Group estimated it could provide $120 billion per year for climate projects in poor and middle income countries. European nations have also reduced their foreign aid spending recently. Development banks remain the biggest source of international public funding for poor countries despite political pressure to change direction.
Azerbaijan and Brazil started a program to fill the funding gap but only two development banks have shown interest. Officials from Azerbaijan visited Washington hoping to find the same support they saw before but discovered institutions reluctant to discuss climate lending at all. American Treasury Secretary Scott Bessent urged the World Bank to invest in dependable technologies instead of climate targets. This could mean putting money into gas and other fossil fuel projects rather than renewable energy.
The World Bank Group estimated it could provide $120 billion per year for climate projects in poor and middle income countries. European nations have also reduced their foreign aid spending recently. Development banks remain the biggest source of international public funding for poor countries despite political pressure to change direction.
