A Climate Year in Review

[tweetquote:[tweetText=2024 raised the stakes for climate action with impacts getting worse disrupting and delaying much-needed development.,tweetData=WBG_Climate,tweetHash=]] In March 2024, for instance, temperatures soared to 113 degrees farenheit in South Sudan, causing the government to announce a ‘serious health hazard’ turning 2.2 million children away from schools. In the last 18 months, children in Fiji lost about two months of learning, or 20% of a typical academic year. In Tuvalu, two out of the 10 schools in the nation will need to relocate due to climate risk.

But there are bright spots behind these grim statistics – new solutions, technologies and policies around the world are helping shape a different world, making people resilient; food, water, and clean air abundant; and poverty defeated.

[tweetquote:[tweetText=Here is a snapshot of 10 efforts the Bank Group advanced in climate action this year.,tweetData=WBG_Climate,tweetHash=]]

1. Delivering a record-breaking $42.6 billion in climate finance in fiscal year 2024.

Each institution within the World Bank Group is contributing to this objective but there is more to do. IBRD and IDA together delivered $31 billion in FY24 in climate finance, of which $10.3 billion specifically supported investments in adaptation and resilience. IFC, the private sector arm of the World Bank Group, delivered $9.1 billion in long-term climate finance. MIGA, the World Bank Group’s political risk insurance and credit enhancement arm, delivered $2.5 billion in climate finance.

2. Boosting climate finance with the Multilateral Development Banks.

[tweetquote:[tweetText=MDBs estimate that, by 2030, annual collective climate financing for low- and middle-income countries will reach $120 billion, including $42 billion for adaptation.,tweetData=WBG_Climate,tweetHash=]] MDBs will also aim to mobilize $ 65 billion from the private sector.

3. Making the case for adaptation finance and much more.

Adaptation finance is only a fraction of what is needed to make countries, communities, and people more resilient.[tweetquote:[tweetText= Adaptation finance is only a fraction of what is needed to making countries, communities, and people more resilient.,tweetData=WBG_Climate,tweetHash=]] In fact, reducing vulnerability to climate impacts and building resilience requires three things: more rapid development, more resilient development, and targeted adaptation interventions. Climate finance numbers tend to only capture the latter, while countries need to achieve all three for good adaptation with the first two particularly important for the world’s poorest countries.

4. Outlining how better development can help the 1.2 billion people facing life-changing climate risks worldwide

Development plays a key role as nobody can be resilient without access to basic infrastructure and social services, decent housing, or while living in poverty. While a 10-percent increase in income is associated with a decrease in the population at high risk by close to 100 million people, current development patterns will not be enough. Around the world, there are increasingly many positive examples in both the public and private sectors where significant progress is visible, already helping save lives and helping communities thrive. These examples offer useful lessons that can be adopted more widely.

5. Shining a spotlight on how adaptation is a game changer.

[tweetquote:[tweetText=Along with reducing emissions, adaptation is a central part of the fight against climate change.,tweetData=WBG_Climate,tweetHash=]] As the planet heats up, increased extreme flooding, drought, pollution, crop failure, and loss of biodiversity are devastating lives and livelihoods. Adapting to this new reality can be a gamechanger by making people and planet more resilient and ensure survival. Around the world, people are applying innovative solutions and approaches to not only adapt to the changing climate, but in many cases also increasing productivity and efficiency to bring more resources to the challenge.

6. Putting people at the heart of adaptation and mitigation solutions

Climate change poses significant risks to people, causing long-term, irreversible, and intergenerational harm, especially for populations already affected by unemployment, exclusion or food insecurity. [tweetquote:[tweetText=Investing in people—through education, reskilling, health, labor markets, social protection, and so on—is crucial for building people’s ability to adapt to climate change and contribute to and benefit from low-emission development.,tweetData=WBG_Climate,tweetHash=]] Placing people at the center of climate-development policies, as opposed to addressing their challenges through complementary policies, enhances policy effectiveness and can foster more inclusive growth.

7. Hosting intergenerational dialogues at COP29

The World Bank Group hosted multiple events, discussions and sessions at COP29 in Baku, Azerbaijan, from November 11-22, 2024. Highlights from these include conversations with young climate champions from around the world, co-hosted with Connect4Climate. These covered a range of topics including education, climate finance, water, cities, small island states and helped make a strong case for youth voices as a vital aspect of climate action.

8. The first ever IDA session at COP29

The World Bank’s International Development Association (IDA) is a critical source of concessional finance for 78 low-income countries. As IDA prepared for its 21st replenishment, this event was an important opportunity to highlight the strategies and attributes that have made IDA an effective tool for driving climate action and how to scale up its impact.

9. Carbon pricing revenues topped a record $100 billion

[tweetquote:[tweetText=According to the annual “State and Trends of Carbon Pricing 2024” report, carbon pricing revenues reached a record $104 billion in 2023.,tweetData=WBG_Climate,tweetHash=]] There are now over 75 carbon pricing instruments in operation worldwide covering 24% of global emissions. Over half of the collected revenue was used to fund climate and nature-related programs.

10. Transformative policy crediting helping reduce emissions in Uzbekistan

In Uzbekistan, energy subsidies have been distorting the actual costs of energy use and production. [tweetquote:[tweetText=With the support of the World Bank, the government of Uzbekistan is gradually reducing subsidies which is expected to result in more efficient energy use and also create more incentives for renewable energy scale-up.,tweetData=WBG_Climate,tweetHash=]] The first results-based payment for the verified emission reductions was made in June 2024. The country is rewarded for the reduction in greenhouse gases through payments from TCAF for verified carbon credits.