World Bank President David Malpass plans to step down a year before his term is set to end, the organization announced Wednesday.
Malpass will leave his position on June 30, the end of the World Bank’s fiscal year, after serving more than four years in the role.
“It has been an enormous honor and privilege to serve as President of the world’s premier development institution,” Malpass said in a statement on Wednesday. “With developing countries facing unprecedented crises, I’m proud that the Bank Group has responded with speed, scale, innovation, and impact.”
Malpass told CNN’s Julia Chatterley on Thursday he has “no regrets” over his four-year tenure.
“We’ve achieved many of the things I wanted to…I think it’s really important that institutions have energy, new energy, and this is a good time for the World Bank to do that,” he said.
The World Bank, a group of 187 nations, lends money to developing countries to help reduce poverty. Former US President Donald Trump appointed Malpass as World Bank chief in 2019 for a five-year period. As the largest shareholder, the United States traditionally appoints its president.
During Malpass’ tenure, the organization responded to multiple crises, including a global pandemic and Russia’s war in Ukraine. The World Bank said Malpass implemented record surges in finances in response to both. He also focused on policies to increase economic growth, reduce government debt burdens, and help reduce poverty.
But his tenure has been controversial.
Malpass faced criticism from climate activists in September after he refused to confirm during a climate panel whether he accepted the scientific consensus that burning fossil fuels were dangerously warming the planet. After an outpouring of criticism, many opponents called for his resignation.
He later clarified to CNN that he was a not a “a denier,” and that fossil fuel emissions are “clearly” contributing to global warming. The World Bank also noted on Wednesday that it more than doubled its climate financing in 2022 to a record $32 billion.
Malpass reaffirmed Thursday the World Bank’s commitment to reducing debt payments for developing nations so they can instead fund crucial projects like climate adaptation.
“This reason this is important because the governments and the people of the countries need the money for food, for health, for education, for in nutrition and for climate adaptation. These are all pressing needs,” he said.
Malpass said he has “decided to pursue new challenges” and that this is an opportunity for a smooth leadership transition at the Bank Group.
Treasury Secretary Janet Yellen on Wednesday thanked Malpass for his service, saying in a statement: “The world has benefited from his strong support for Ukraine in the face of Russia’s illegal and unprovoked invasion, his vital work to assist the Afghan people, and his commitment to helping low-income countries achieve debt sustainability through debt reduction.”
“And while we all must continue to raise our collective ambitions in the fight against climate change, during President Malpass’ tenure the World Bank has made important recent advances in this area,” she said.
Yellen also noted his commitment to “ensuring a smooth transition” and said the United States is looking forward to a “transparent, merit-based and swift nomination” for the next World Bank president.
The opening also provides an opportunity for President Joe Biden to nominate an official who can implement the administration’s green energy vision and help combat climate change while lowering energy costs for families.