Malpass, appointed by President Donald Trump, seeks to “enhance economic growth, alleviate poverty, improve living standards, and reduce government debt burdens,” according to a statement released by bank.
But the World Bank, which more than doubled its climate finance to developing countries to a record $32 billion last year, has failed to fund climate-related projects at the level the administration had hoped for. Biden. With Congress unwilling to help Biden fulfill his commitments to help developing countries with climate aid, the White House is increasingly turning to global financial institutions to help reduce those greenhouse gas emissions and strengthening adaptation defenses against a warming world.
Less than a week ago, Yellen urged the World Bank to “expand its vision to include solving global challenges” and to do so “quickly.” And late last year he asked Malpass for a road map to outline the type and pace of change for the bank.
“The world is changing, and we need these important institutions to change with it,” he said. “In today’s world, continued progress in poverty alleviation and economic development is not possible without addressing the global challenges we all face.”
Malpass faced calls in September for his removal after he refused to say whether he accepted the scientific consensus that man-made burning of fossil fuels is warming the planet. “I’m not a scientist,” Malpass said at a New York Times event. He later changed his comments, and Kerry did not call for his ouster.
The bank says it has set a target for climate financing to come 35 percent of its total lending, resulting in loans of $25 billion per year on average over five years, a number that many government officials and climate activists said to be too low.
On Wednesday, Yellen praised Malpass’ tenure, announcing his support for Ukraine, his aid for the Afghan people and his commitment to reducing the debt of low-income countries while saying “we all need which will continue to raise our collective ambitions in the fight against climate change.”
But others are more direct. In a tweet, Sen. Edward J. Markey said, “I am pleased that David Malpass has heeded my calls to resign as President of the World Bank. His support for fossil fuels and abject failure to fund climate action are unacceptable. He said the bank “must recover from its missteps.”
“Leaving Malpass allows the World Bank to hit the reset button and finally commit to the leadership needed in the climate finance space,” said Jake Schmidt, senior strategic director for international climate at the Natural Resources Defense Council.
The World Bank has spent nearly $15 billion on fossil-fuel-related projects from 2016 to 2021, according to a study. That includes a $200 million loan guarantee by 2021 for a gas-fired power plant in Uzbekistan.
Facing various global problems, the bank financed a $1.6 billion pandemic fund and mobilized $19 billion for Ukraine in its war with Russia.
“The last four years have been some of the most meaningful of my career,” Malpass said in a statement. “There has been a lot of progress, and after much thought, I have decided to pursue new challenges.”
Before leading the World Bank, Malpass served in various positions under Presidents Ronald Reagan, George HW Bush and Trump. He was also chief economist at Bear Stearns, an investment bank, before it collapsed. He later joined the Trump campaign as an economic adviser.
According to an informal agreement between member countries, the World Bank chooses a US citizen as president and a European candidate (usually French or German) as managing director of the International Monetary Fund. This custom has come under increasing criticism because much of the global economy is located beyond the borders of the United States and Europe, and the choice of president places nationality above merit.
The United States has 16.32 percent of the World Bank’s total votes, enough to give it veto power over major policy decisions, which requires an 85 percent majority. The largest shareholders after the United States are Japan (6.89 percent of the voting power), China (4.45 percent), Germany (4.03 percent), France (3.78 percent) and the United Kingdom (3.78 percent).