World Bank and IMF Commit to Climate Aid Collaboration with Trump Administration
The leaders of the World Bank and International Monetary Fund (IMF) pledged on Tuesday to work with the incoming administration of US President-elect Donald Trump to sustain climate finance support for developing nations. The announcement was made during the UN COP29 climate summit in Baku, Azerbaijan, where officials discussed global commitments to address climate change.
IMF Managing Director Kristalina Georgieva expressed confidence in the ongoing collaboration with the US, emphasizing the critical role of the private sector in maintaining investment in green technologies. “The private sector recognizes that staying ahead in green innovation is essential for future competitiveness, and I am certain this commitment will persist,” Georgieva said, acknowledging Trump’s mandate from American voters.
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The re-election of Trump, known for his stance on reducing US involvement in multilateral climate efforts, has cast uncertainty over the roles of the IMF and World Bank—institutions where the United States holds significant influence. The focus of this year’s climate summit is to mobilize hundreds of billions of dollars to fund a global shift to renewable energy, aiming to mitigate climate impact from large carbon-emitting countries, including the United States.
World Bank President Ajay Banga noted the bank’s commitment to adapting and collaborating with Trump’s administration. “Respecting a historic election outcome is essential. Our role is to engage with the administration, ensuring continued climate finance efficiency,” he remarked. Banga highlighted that, under his leadership, the World Bank had focused on attracting private investments to amplify climate finance.
Banga also noted recent political shifts among other major donor countries, including Germany, France, Japan, and the United Kingdom, indicating the need for flexible responses to global leadership changes. Trump’s campaign, which promotes an “America First” economic approach, has included strong promises of tariff hikes on Chinese and other imports and prioritizes bilateral aid agreements over multilateral commitments. Although Trump has distanced himself from the conservative “Project 2025” agenda, which suggests a US withdrawal from the IMF and World Bank, the potential for change in the country’s multilateral engagement remains a concern.
Despite potential shifts in US climate policies, Mohamed Jameel Al Ramahi, CEO of UAE-based green energy company Masdar, expressed confidence in the US market’s stability for renewable energy investments. “We continue to see strong support for renewables in many Republican-led states. Their commitment to energy initiatives remains robust, so we don’t anticipate significant disruptions,” Al Ramahi noted.
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