Climate change is already impacting countries and communities around the world, with the most vulnerable hit the hardest.
2016 was the hottest year since record-keeping began, and in November 2016 the UN announced that global temperatures have risen 1.2 degrees Celsius above pre-industrial levels.
Under the Paris Agreement (adopted December 2015, in force November 2016), the world committed to limiting the rise in global temperatures to below 2C by the end of the century.
Climate change increases volatility and threatens efforts to end poverty.
Without urgent action to reduce vulnerability, provide access to basic services, and build resilience, climate change impacts could push an additional 100 million people into poverty by 2030.
The impact of extreme natural disasters is equivalent to a $520 billion loss in annual consumption, and forces some 26 million people into poverty each year.
Climate change will contribute to significant shifts in population settlements over time; development planning will have to take such shifts into account.
The financing required for an orderly transition to a low carbon, resilient global economy can be counted in the trillions, not billions.
Over the next 15 years, the world will require about $90 trillion in new infrastructure – most of it in developing and middle-income countries. Making the right choices in favor of infrastructure that is climate resilient and locks in a low carbon development pathway is critical and urgent. Action now will avoid huge costs later.
To mobilize private sector climate financing at scale, the world needs a greener financial sector that integrates climate risks and opportunities, and expands the use of approaches such as risk mitigation, blended finance and green bonds.
Carbon pricing delivers a triple dividend – it protects the environment, raises revenue, and drives investments to clean technologies. Greater cooperation through carbon trading could reduce the cost of mitigation by 32 percent by 2030.
Climate action makes good business sense
The IFC estimates that the NDCs of 21 emerging market economies alone represent $23 trillion in investment opportunities. Post-Paris, 200 companies with a market capitalization of $4.8 trillion have set emissions targets, and more than 800 companies are planning to put a price on carbon.
Achieving the goals of the Paris Agreement will require coordinated global action at an unprecedented scale and speed.
The SDGs will only be achieved if tackled along with climate change. The world will need to feed 9 billion people by 2050 while reducing emissions, provide electricity access to 1.1 billion people while transitioning from fossil fuels, and prepare for 2 billion new urban dwellers while reducing the carbon footprint of cities and improving urban resilience.
The World Bank Group (WBG) is more committed than ever to helping countries meet the climate challenge and achieve their NDCs.
The WBG’s twin goals of ending extreme poverty and boosting shared prosperity cannot be achieved without tackling climate change.
More than 140 WBG client countries have submitted national plans for climate action – the Nationally Determined Contributions, or NDCs.
We are actively working with countries to help them deliver on and exceed their Paris ambitions, including through financing, technical assistance and knowledge sharing.
Last Updated: Mar 28, 2017