US president Donald Trump's administration today called on the IMF and the World Bank to focus resources away from climate action and energy transition and to make lending available to fossil fuels programs.
The IMF "devotes disproportionate time and resources to work on climate change, gender, and social issues," US treasury secretary Scott Bessent said in remarks today timed to coincide with the two international lending institutions' annual meeting in Washington. "Like the IMF, the World Bank must be made fit for purpose again," he said, during an event hosted by trade group Institute of International Finance.
The IMF and the World Bank in recent years have followed the preferences of their largest shareholders — the US and European countries — in incorporating the effects of climate change in their analysis and to facilitate energy transition in the emerging economies. The World Bank, together with other multilateral development banks globally, announced at the UN Cop-29 climate conference last year that they could increase climate financing to $170bn/yr by 2030, up from $125bn in 2023.
"I know 'sustainability' is a popular term around here," Bessent said. "But I'm not talking about climate change or carbon footprints. I'm talking about economic and financial sustainability."
Bessent urged the World Bank to "be tech neutral and prioritize affordability and energy investment," adding that "in most cases, this means investing in gas and other fossil fuel based energy production."
"In other cases, this may mean investing in renewable energy coupled with systems to help manage the intermittency of wind and solar," Bessent said.
The US is the largest shareholder at both the IMF and the World Bank, with a 16pc stake in both institutions. The Trump administration, which has slashed climate programs at US government institutions and withdrew the US from climate-focused international efforts, has so far refrained from interfering in the operations of the IMF and the World Bank.
