The financing required for an orderly transition to a low carbon, climate 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.
- The IEA estimates that limiting the rise in global temperature to below 2 Celsius by the end of the century will require an average of $3.5 trillion a year in energy sector investments until 2050.
Climate action is a vast opportunity for sustainable global development, with investment potential in the trillions of dollars and the ability to drive innovation and create green industries and new jobs.
- The IFC estimates that the NDCs of 21 emerging market economies alone represent $23 trillion in investment opportunities.
- According to IRENA, the global energy transition could contribute $19 trillion in economic gains by 2050.
Climate-smart finance is critical to fighting poverty and meeting development goals.
- 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.
- By 2050, without concrete climate and development action, more than 143 million people in three regions, Sub-Saharan Africa, Latin America, and South Asia, could be forced to move within their own countries to escape the slow-onset impacts of climate change, such as water stress and crop failure.
Concessional climate finance is critical to supporting developing countries to build resilience to worsening climate impacts and to catalyzing private sector climate investment.
- The WBG along with other multilateral developments banks (MDBs) continues to make a strong contribution to the global climate challenge. Collectively, the MDBs increased their climate financing in developing countries and emerging economies to $35.2 billion in 2017 – including more than $13 billion from the WBG.
fiscalyear 2013-2017, the International Development Association (IDA), the World Bank’s fund for the poorest, provided on average $2 billion a year in concessional finance to help countries adapt to the effects of climate change and $1.7 billion a year to reduce emissions.
- The $8.3 billion Climate Investment Funds (CIF), now marking ten years of climate action, have helped 72 developing countries pilot low-emission and climate-resilient development through country-led programs and investments.
The World Bank Group (WBG) is more committed than ever to helping countries meet the climate challenge.
- The WBG’s twin goals of ending extreme poverty and boosting shared prosperity cannot be achieved without tackling climate change.
- More than 135 developing and middle-income countries have submitted national plans for climate action under the Paris Agreement – the Nationally Determined Contributions, or NDCs.
- The World Bank Group is actively working with countries to help them deliver on and exceed their Paris ambitions, including through financing, technical assistance, and knowledge sharing on the implementation of the NDCs.
Last Updated: Aug 23, 2018