Bangkok / Berlin, October 16, 2026
The conclusion of the 2026 World Bank and IMF Annual Meetings in Bangkok shows the increasing disconnect between the World Bank’s energy policy and the real-world impacts of the energy crisis, which the closure of the Strait of Hormuz set off.
In a townhall meeting with civil society on Monday, President Ajay Banga once again emphasized the Bank’s openness to funding gas to ensure energy security – despite gas’ demonstrated lack of resilience to global shocks. He also underlined the Bank’s commitment to fund nuclear power if governments request it, ignoring the enormous costs, decade-long delays, and environmental and health risks associated with this technology.
“The World Bank’s own analyses conclude that decentralized renewable solutions offer the most reliable way to lift millions of people out of energy poverty. Yet President Banga’s energy agenda ignores these clear findings and instead squanders limited public resources on false solutions like fossil gas and nuclear power, both of which involve high costs, long-term dependency on unreliable actors, and environmental and social harm,” says Dr. Dustin Schäfer, Head of Multilateral Financial Institutions Campaigns at Urgewald.
Following the removal of concrete climate finance targets from the Bank’s Climate Change Action Plan in June, it is unclear whether mitigation and adaptation to the climate crisis will continue to be mainstreamed throughout WBG programming. Also questionable: what role will climate considerations play in President Banga’s jobs agenda, which primarily focuses on achieving development impact through private capital mobilization. “Private capital mobilization is still front and center in President Banga’s strategy, but means to ensure its positive impacts on the ground and overall Paris alignment remain scarce,” Schäfer adds.
Trade finance portfolio grows, transparency gaps remain
The International Finance Corporation’s (IFC) trade finance portfolio has at least tripled since 2016, yet its development and climate impacts remain largely unexamined. The World Bank Group’s Independent Evaluation Group (IEG) has not evaluated IFC’s flagship Global Trade Finance Program (GTFP) since 2013, while other trade finance programs have never undergone an independent evaluation.
In a new briefing, Urgewald highlights critical gaps in transparency, accountability and evidence of development impact, alongside concerns about continued fossil fuel financing. “We call for a comprehensive independent evaluation of IFC’s entire trade finance portfolio to assess its contribution to sustainable development, its alignment with the Paris Agreement and its environmental and social performance,” Emma Beelen, campaigner on multilateral financial institutions at Urgewald and lead author of the briefing, says.
World Bank’s current course set for reality check in 2027
The World Bank Group’s current course will be put to the test in 2027 during the IDA-22 replenishment, when shareholders are asked to contribute to funding for low-income countries. “We expect shareholders to take a close look at the World Bank’s direction during the upcoming IDA replenishment phase and demand course correction on its energy projects, greater transparency as well as a clear commitment to the independence of its accountability mechanisms,” Dustin Schäfer predicts.
