Development and Climate Change: A Strategic Framework for the World Bank Group was adopted during the October 2008 Annual Meetings. Recognizing the primacy of the United Nations Framework Convention on Climate Change (UNFCCC) process, the Framework will help IDA, IBRD, MIGA and IFC provide better support to their clients in developing countries. It will facilitate both growth objectives and poverty reduction goals while recognizing the added costs and risks of climate change. The Framework will also facilitate new economic opportunities that will arise from the development of global climate policies. Climate risk management and adaptation is a top priority as developing countries and the poorest communities are likely to suffer earliest and the most. The Framework will guide the specific strategies and business plans of IFC, MIGA and World Bank regions and climate sensitive sectors, such as agriculture and natural resources, water, energy and health.
The Framework is based on six action areas, each addressing both adaptation and mitigation:
- Support climate actions in country-led development processes;
- Mobilize additional concessional and innovative finance;
- Facilitate the development of market-based financing mechanisms;
- Leverage private sector resources;
- Support accelerated development and deployment of new technologies; and
- Step-up policy research, knowledge and capacity building.
Progress on Development and Climate Change at the World Bank
As a result of the Framework, over 60% of Country Assistance Strategies in fiscal year 2009 address climate-related issues. The SFDCC promotes work with the other MDBs in assisting countries in incorporating adaptation and mitigation programs into their development plans. It focuses on rolling out innovative financial instruments and building new partnerships.
Mobilizing Finance for Climate Action
SFDCC stresses the need for working towards closing the gap in knowledge, experience and finance between adaptation and mitigation. The WBG believes that adaptation is at the centre of its support to the developing countries. Supports is provided to client countries through innovative financing in the form of lending, grants, guarantees, equity stakes to support low-carbon growth.
Knowledge Sharing and Policy Research
To bridge the knowledge gap on the impacts of climate change, the Bank Group has made an effort to support client countries in assessing climate change risks. The rich body of work also informs the process of international negotiations.