• France’s new development minister Eleonore Caroit says Paris will continue backing the World Bank’s 45% climate finance target despite U.S. opposition.
• The Trump administration is pressing the lender to drop its climate agenda and resume funding for fossil fuels.
• France plans to make climate action central to its 2026 G7 presidency, keeping Paris Agreement goals aligned with global development priorities.
France Pushes Back on U.S. Efforts to Dilute Climate Ambition
France’s newly appointed development minister, Eleonore Caroit, has pledged that Paris will continue to defend the World Bank’s climate finance mandate against U.S. efforts to roll it back. Speaking on the sidelines of the World Bank and IMF annual meetings, Caroit said France “will not give up” on the lender’s 45% target for climate-related financing — a goal set under the Biden administration and now under threat from the Trump administration’s renewed push for fossil fuel funding.
“So we obviously continue to support the 45% objective,” Caroit told reporters. “Climate is of utmost importance because we’re aligned with the Bank’s objective of development and job creation, but it has to be jobs on a livable planet.”
Her comments come days after her appointment to the cabinet of French Prime Minister Sebastien Lecornu as junior minister for Francophonie, international partnerships, and overseas citizens. France’s assertive stance highlights its intent to keep global financial governance aligned with the Paris Agreement at a time of rising geopolitical divergence on climate priorities.
Clash Over the Bank’s Climate Mandate
In 2023, World Bank President Ajay Banga persuaded shareholders to adopt a new vision statement: “A world free of poverty on a livable planet.” That wording was designed to embed climate and sustainability into the Bank’s development mission while unlocking additional balance sheet capacity.
But U.S. Treasury Secretary Scott Bessent has criticized that approach, calling it “vapid, buzzword-centric marketing.” The Trump administration has urged the Bank to drop its climate focus and resume financing for coal, oil, gas, and nuclear energy projects. In his address to the IMF steering committee last week, Bessent said the 45% climate “co-benefits” target distorts lending priorities and restricts access to reliable energy for developing nations.
Caroit confirmed that she raised the issue directly with Bessent in Washington. “What is important is to have frank conversations and see where the disagreements are,” she said. Despite their policy divide, she noted areas of convergence, particularly around nuclear energy and resilience projects.
France Seeks Common Ground on Energy and Adaptation
France and the U.S. share a pragmatic view on nuclear power’s role in the energy transition. With more than 50 reactors generating over 70% of its electricity, France has long championed nuclear as a sustainable, low-carbon energy source. Caroit said this common ground could anchor broader cooperation even as Washington resists multilateral climate targets.
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She also emphasized that both countries can collaborate on adaptation and resilience efforts — projects that mitigate flood or wildfire risks while safeguarding economic growth. These investments, she argued, are “climate finance by another name,” even if the U.S. prefers to frame them as infrastructure or disaster prevention. “They can call it however they want,” Caroit said, “but the impact is the same.”
Broader Implications for Global Climate Finance
The dispute over the World Bank’s climate goals reflects a deeper fault line in global development finance. Under Banga’s leadership, the Bank has sought to mobilize trillions in private capital for climate and sustainability projects while balancing the energy needs of low-income nations. The U.S. opposition could weaken that agenda, potentially discouraging other shareholders from maintaining ambitious climate targets.
For France, the confrontation carries both political and diplomatic weight. As it prepares to lead the G7 in 2026, Paris intends to use its presidency to strengthen alignment between multilateral finance institutions and the Paris Agreement. Maintaining the World Bank’s climate mandate is central to that vision.
Caroit’s early intervention in Washington signals continuity in France’s climate diplomacy and reaffirms Europe’s broader stance that sustainable growth and development must remain interlinked. As she put it, “development and jobs make sense only on a livable planet.”
Outlook
The coming months will test whether the World Bank’s shareholder bloc can preserve consensus on its climate goals amid U.S. resistance. For investors and policymakers, the outcome will shape not only future lending flows but also the credibility of multilateral finance as a driver of the low-carbon transition. France, for its part, appears determined to keep that agenda alive — even as Washington’s tone shifts in the opposite direction.
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