India, July 3 -- The World Bank has retired its target of allocating 45 per cent of annual lending to climate-related activities, marking a significant rollback of one of its flagship climate finance commitments, while extending its Climate Change Action Plan (CCAP) after negotiations among shareholders.

The move comes despite appeals from France and developing countries to preserve the target and at a time when multilateral development banks (MDBs) are expected to play a central role in mobilising at least $1.3 trillion annually in climate finance for developing countries by 2035 under the roadmap agreed at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29).

The Bank said it would co...