David Malpass Resigns as World Bank President: Resetting the Climate Finance Agenda
By David Malpass, President of the World Bank, announced on Wednesday that he will step down from his post in June, nearly a year before his five-year term is due to expire.[0] Treasury Secretary Janet Yellen thanked Malpass for his service and said that during his tenure the World Bank has made “important recent advances” in the fight against climate change.[1] Malpass has been criticized for his refusal to confirm the scientific consensus on climate change during a panel last September, with many calling for his resignation.[0]
However, Yellen noted Malpass’ commitment to Ukraine in the face of Russia’s invasion and his aid to the Afghan people and low-income countries in terms of debt reduction. She also noted his commitment to ensuring a smooth transition and said the U.S. is looking forward to a “transparent, merit-based and swift nomination” for the next World Bank president.[0]
Malpass said he was proud of the Bank Group’s “speed, scale, innovation, and impact” in response to unprecedented crises, and the record levels of financing he achieved, including in climate financing.
But according to Oil Change International, the World Bank has provided $15 billion to fossil fuel projects since the Paris Agreement was signed in 2015, and its climate spending is “too small, too scattered, uncoordinated and badly targeted, and hard to access by the poorest countries.”[2]
In terms of succession, the U.S. has traditionally had the right to pick the president of the World Bank, while the European Union selects the head of the International Monetary Fund.[3] Yellen said the U.S. will put forward a candidate to “build on the Bank’s longstanding work,” and “carry forward the vital work we are undertaking to evolve the multilateral development banks.” Oil Change International campaign co-manager Bronwen Tucker said the departure of Malpass allows the World Bank to “hit the reset button” and commit to the leadership needed in the climate finance space.[4]
0. “World Bank President David Malpass to step down early” kuna noticias y kuna radio, 15 Feb. 2023, https://kesq.com/money/cnn-business-consumer/2023/02/15/world-bank-president-david-malpass-to-step-down-early/
1. “World Bank chief to leave by July” POLITICO, 15 Feb. 2023, https://www.politico.com/news/2023/02/15/world-bank-chief-malpass-departing-00083070
2. “David Malpass Is Resigning From the World Bank. Good. Let Poorer Countries Pick His Replacement.” The New Republic, 16 Feb. 2023, https://newrepublic.com/article/170634/david-malpass-resigning-world-bank-good-let-poorer-countries-pick-replacement
3. “David Malpass is stepping down as president of the World Bank” NPR, 15 Feb. 2023, https://www.npr.org/2023/02/15/1157343234/world-bank-president-david-malpass-stepping-down
4. “Why World Bank head's resignation is good news for climate crisis fight” The Guardian, 16 Feb. 2023, https://www.theguardian.com/environment/2023/feb/16/world-bank-chief-david-malpass-resignation-climate-crisis
