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US refuses to sign joint statement of World Bank Directors on Climate Agenda

The World Bank's executive directors, 19 of them, issued a statement last week expressing their support for its continued efforts to combat climate change. They did so in defiance of the United States, the largest shareholder and other countries.

Sources familiar with the situation said that the executive directors of the U.S. and Russia as well as Kuwait, Saudi Arabia, and Japan, who are both negotiating deals with the U.S. on trade, abstained from signing the document.

After a meeting with World Bank management the directors, who represent over 120 countries, released a statement highlighting their expectations that the bank would adhere to its goals for climate change action plans, including its pledge to dedicate 45% of annual financing to climate related projects.

This document, which was seen by, shows the deep divisions between the U.S., and a few allies, over climate change. The document comes just days before the World Bank's and the International Monetary Fund's annual meetings. The U.S. has the largest stake in both institutions, and it plays a major role in determining their agendas and work.

This week, it was reported that the European Union would double its support to reform global development banks in order to combat climate change.

Scott Bessent, U.S. Treasury secretary, called for both institutions to refocus their mandates in April at the IMF/World Bank meeting. He said that they were spending too much time and money on topics such as climate change.

Since Donald Trump became president, both institutions have been largely silent about climate change. The issue will not be highlighted on the agenda for next week. Trump dismissed climate change last month as a "con-job."

In addition, the statement called for the alignment of the bank's activities with the Paris Climate Agreement that President Donald Trump of the United States withdrew from shortly after assuming office in January. The statement also called on the bank to continue to include climate change in its core diagnostic work.

The statement stated: "We reaffirm that we support the World Bank Group in its leadership role within the (International Financial Institutions), advocating and supporting the countries' demands for low-carbon, climate resilient and nature positive paths.

The directors called for more work to be done in certain areas of the current Climate Change Action Plan. This includes supporting workers who are transitioning their countries away from coal.

The letter also said that more work was needed to help countries design and implement national climate and development programs, as well as develop effective carbon markets.

The bank's climate change plan does not cover several areas, such as pollution, nature, scaling up adaptation and resilience. (Reporting and Editing by Marguerita choy)

(source: Reuters)