President Joe Biden announced the nomination of former Mastercard CEO Ajay Banga on Thursday to lead the World Bank. Banga’s nomination comes shortly after the announcement of David Malpass’s plans to step down from his role leading the 189-nation poverty reduction agency in June of this year. The U.S. has traditionally nominated the World Bank chief, while the head of its sister agency, the International Monetary Fund (IMF), has come from Europe.

Banga, who is currently vice-chairman at private equity firm General Atlantic, has more than 30 years of business experience, having served in various roles at Mastercard and on the boards of the American Red Cross, Kraft Foods, and Dow Inc. He is also the first Indian-born nominee to the World Bank president role. The U.S. government praised Banga’s leadership experience and his critical work on global challenges, particularly climate change.

Priorities for the World Bank Under Banga’s Leadership

The U.S. has emphasized the importance of addressing the impacts of climate change at the World Bank, and leading climate figures have urged the Biden administration to use Malpass’s early departure as an opportunity to overhaul the institution. The bank has been criticized as being hostile to less-wealthy nations and efforts to address climate change. Banga’s experience in mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change, aligns with this priority.

In a statement, Treasury Secretary Janet Yellen noted that Banga’s experience “will help him achieve the World Bank’s objectives of eliminating extreme poverty and expanding shared prosperity while pursuing the changes needed to effectively evolve the institution.” These changes include meeting ambitious goals for climate adaptation and emissions reduction. John Kerry, Biden’s climate envoy, also praised Banga’s nomination, stating that he can help put in place new policies to reduce global emissions and help developing and vulnerable countries adapt, build resilience, and mitigate the impact of greenhouse gases.

The World Bank has pledged to conduct an open, merit-based, and transparent selection process and will accept nominations through March 29th. The bank is also under pressure to expand its mandate and convince donor countries to provide more money. Critics say the bank should be doing more to help poor countries finance projects to combat and prepare for climate change without saddling them with heavy debt burdens. Additionally, the bank needs to do a better job at tackling problems that cross borders, such as providing pandemic surveillance and supporting broad vaccination programs.

Nomination Aligns with USA’s Priority

Banga’s nomination as the next World Bank president aligns with the U.S.’s priority of addressing climate change and promoting international cooperation. His experience and leadership skills will help the institution achieve its objectives of eliminating extreme poverty and expanding shared prosperity while pursuing ambitious goals for climate adaptation and emissions reduction. As the World Bank continues to evolve, Banga’s appointment presents an opportunity to address pressing global issues and provide much-needed support to less-wealthy nations.