Why it matters: Administration officials are deeply troubled by Malpass’s failure to answer this week when asked whether climate change is caused by humans. His response provides ammunition to officials who want Biden to spend some political capital to try to oust him.
But officials know replacing Malpas would be a messy process, and they aren’t sure how — or even if — the U.S. can orchestrate his ouster. Malpass was confirmed by the bank’s board, which the White House does not control.
State of play: Malpas, a Trump stalwart, was viewed with suspicion by the Biden administration from the start. This suspicion has now been confirmed. And it’s been on thin ice for months.
Malpas’ refusal to acknowledge fossil fuels were warming the planet sparked international outrage, including calls for his resignation. Malpas went into damage control on Thursday, sending a clarification to staff and telling CNN: “It’s clear that greenhouse gas emissions come from anthropogenic sources, including fossil fuels… I’m not denying it.”
Reality check: The fact that Biden hasn’t made a change suggests there is some internal resistance to ousting Malpas. Context: The World Bank, headquartered in Washington, D.C., uses capital contributions from member countries to provide loans to the developing world to help alleviate poverty and promote economic growth.
In recent years, the bank has increasingly focused on financing projects that will reduce carbon emissions. Critics, including Gore, want the bank to do more on climate change.
Between the lines: The nomination of the World Bank president could upset a delicate balance – the US traditionally chooses the World Bank president, while the European Union chooses the head of the International Monetary Fund.
The presidency of the bank lasts for five years. So the new US president often inherits bank presidents from the opposite party. Malpas is a former Bear Stearns economist and Treasury official in the Trump administration. His term ends in 2024.
What we’re watching: At a New York Times climate event this week, former Vice President Gore called for restructuring the World Bank, saying it’s “ridiculous to have a climate denier at the head of the World Bank.”
Some Biden officials have gone as far as selecting potential replacements — including Gore and former Secretary of State John Kerry, who is now Biden’s climate envoy. Biden’s thinking is not known. Kerry has been a strong advocate for the World Bank to focus more on climate. Asked at the Times event whether the administration had confidence in Malpas, Kerry demurred: “I can’t comment on what an individual’s situation is — that’s the president’s decision.”
Other possibilities for the Malpass job include former New York Mayor Mike Bloomberg and Raj Shah, chairman of the Rockefeller Foundation and former head of USAID. The intrigue: Countries from the so-called “Global South” were looking for an opportunity to claim the top spot for a candidate from Africa, Latin America, Asia or Oceania.
Biden officials have debated who could fit that bill. The choices include Ngozi Okonjo-Iweala, a Nigerian-American economist who now heads the World Trade Organization, and Minouche Shafik, an Egyptian-born British-American economist who is director of the London School of Economics.
What they say: “We expect the World Bank Group to be a global leader in climate ambition… We have [made] — and will continue to do so — make that expectation clear to World Bank leadership,” a Treasury spokesperson told Axios.
Malpas’ remarks “were seen as damaging, there’s no question about that,” said Mark Malloch-Brown, president of the Open Society Foundations and a former World Bank executive. “It’s a big problem,” he said. “These institutions don’t serve the agenda of their leader, but ultimately their government owners. And their clear priority is fighting climate change.”
