The early exit of World Bank Group head David Malpass brings pressure from the White House and beyond for the bank to make climate change a central focus under his successor, Ben and Axios‘ Hans Nichols report.

Why it matters: The bank and other multilateral development institutions are key sources of finance and expertise to help poor nations cut emissions and adapt to unavoidable harms.

Catch up fast: Malpass, who was then-President Donald Trump’s 2019 pick, said yesterday he will leave by June 30, well before his term expires.

• The announcement followed criticism of his performance on global warming, even though bank climate funding rose on his watch.
• Last fall, Malpass drew calls to resign when he declined to endorse the scientific consensus on human-caused warming, though he later clarified his agreement.
• Malpass touted his climate record in his resignation announcement.

What’s next: President Biden plans to move quickly on a replacement, and the bank will be under careful scrutiny from activists.

• Malpass’ departure “must be the first step toward true reform that places the climate crisis at the center of the bank’s work,” tweeted Al Gore, who called for Malpass’ ouster last fall.

What we’re watching: Treasury Secretary Janet Yellen last fall called for development banks to further evolve beyond traditional country-based lending models.

• Just last week, she said the bank should be “bolder and more imaginative” (though she also praised Malpass’ “recent advancements” in a statement yesterday).

Zoom in: Barbados Prime Minister Mia Mottley, a high-profile voice for climate-vulnerable nations, used last year’s UN climate summit and other forums to promote a major overhaul of development finance.

• Her proposal includes greater finance and on more favorable terms, as well as the ability to suspend debt payments when major disasters strike to provide more liquidity.
• U.S. climate envoy John Kerry has also pushed development bank overhaul as a core part of climate action.

 The big picture: The World Bank Group’s total climate finance grew to a record $31.7 billion in fiscal 2022, a 19% rise from the prior year and up from roughly $11 billion in 2016, bank officials say.

• Last week, Michael Bloomberg penned an op-ed alleging the bank nonetheless remains a laggard on funding and is too risk-averse.
• “The whole point of a publicly funded bank is to take risks that the private sector would not, to achieve a goal that carries broad public benefits,” he wrote.

Andrew Freedman contributed.