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Overview

  • Climate change is a threat multiplier, with the potential to push millions into poverty in the coming years and undo hard-won development gains.

    • The threat of climate change remains critical for countries – forcing people to evacuate homes, grapple with food insecurity or the impacts of deforestation and biodiversity loss – even as they also deal with the health and economic impacts of COVID-19.
      • Natural disasters cost about $18 billion a year in low- and middle-income countries through damage to power generation and transport infrastructure alone.
      • They also trigger wider disruptions for households and firms costing at least $390 billion a year.
    • The most vulnerable countries are at particularly high risk of seeing their existing health systems overloaded or wiped out; having emergency funds depleted and replenishment more challenging in a constrained fiscal space; and, facing rising economic vulnerabilities of people and communities.

    Countries now have a once-in-a-generation chance to set themselves on a sustainable, inclusive and resilient development path.

    • Making the right investments now can unlock short term gains – jobs and economic growth – as well as deliver longer term benefits for people, including decarbonization and resilience.
    • Low-carbon stimulus programs can drive new jobs that are sustainable, inclusive and equitable.

    Countries can unlock new economic opportunities and jobs through climate action.

    • Investing in resilient infrastructure in developing countries could deliver $4.2 trillion over the lifetime of new infrastructure. An investment of $1, on average, yields $4 in benefits.
    • Making infrastructure more resilient avoids costly repairs and minimizes the wide-ranging consequences of natural disasters for the livelihoods and well-being of people.
    • A shift to low-carbon, resilient economies could create over 65 million net new jobs globally out to 2030.

    Climate action helps countries develop sustainably. When countries act on climate change, they will also benefit from clean air and water, healthy oceans, resilient cities, sustainable food and agriculture systems.

    • The Bank has supported the governments of Mexico and Colombia to adopt carbon taxes, which maximize synergies between air pollution management and climate change mitigation.
    • In Vietnam, we supported investments in water infrastructure to mitigate the impacts of flooding and saline intrusion and to protect water resources for agriculture, benefiting 215,000 farmer households.
    • 9 million people have benefited from climate-smart crops and technologies, through the West Africa Agricultural Productivity Program. Yields and incomes for farmers have grown by an average of 30%, improving food security for about 50 million people in the region.
    • The Bank’s work on urban development has been instrumental in building resilient cities. For example, the World Bank helped the city of Beira in Mozambique strengthen its resilience to weather-related hazards; rehabilitating its storm water drainage system and installing flood control stations and a water retention basin. When Cyclone Idai hit in March 2019, Beira faced less damaging flooding than other parts of the country.

    Scaling up finance quickly is critical but public budgets alone are not enough. In addition to direct financing, the World Bank Group is also responding to country demand by mobilizing private investment and helping open low-carbon markets where they didn’t previously exist.

    • Along with other MDBs and the Climate Investment Funds, the Bank has supported the world’s largest concentrated solar power complex in Morocco. Generating 580 megawatts (MW) of clean energy, the Noor complex will soon produce clean power for 1.1 million Moroccans, while also accelerating global interest in this technology.
    • India is one of the first countries to deploy highly efficient air conditioners at scale through a bulk procurement program by Energy Efficiency Service Limited (EESL). An initial bulk procurement of 100,000 AC units, with 30% greater efficiency than the market average, led to a 15% reduction in price. The World Bank has an ongoing engagement and supports EESL through technical assistance and lending.

    Policies, such as carbon pricing, can help create incentives for transformational change.

    • Carbon pricing represents a simple, flexible, low-cost, fair and efficient policy option to address climate change. It can also deliver additional benefits, reducing air pollution and congestion while avoiding the increased costs of remedial measures associated with high-carbon growth paths. For businesses, carbon pricing enables them to manage risks, plan their low-carbon investments, and drive innovation. 
    • As of November 1, 2019, 46 national jurisdictions and 31 subnational jurisdictions are implementing or have scheduled for implementation initiatives to put a price on carbon. For the latest information, visit the Carbon Pricing Dashboard, an interactive online platform that builds on the data and analyses of the annual State and Trends of Carbon Pricing report series.

    Last Updated: Sep 30, 2020

  • The World Bank Group is committed to helping countries meet the goals of the Paris Agreement.

    • Addressing climate change is one of the central narratives and policy backbones of the Bank Group’s recent capital increase commitments and its past and current IDA replenishments.

    The Bank Group is financing country efforts to cut emissions and adapt to climate risk.

    •  The Bank Group’s first Climate Change Action Plan (2016-2020) laid out ambitious targets to be met by 2020, including helping client countries add 30 gigawatts of renewable energy, put in place early warning systems for 100 million people, and develop climate-smart agriculture investment plans for at least 40 countries.
    • In December 2018, the Bank Group announced a major new set of climate targets for 2021-2025 to support countries taking ambitious climate action which include increased support for adaptation through a dedicated Action Plan on Climate Change Adaptation and Resilience. All Bank projects are now screened for climate and disaster risk to ensure that they build the resilience of people on the ground.
    • Since fiscal year 2018, all applicable investment lending projects incorporate a shadow price of carbon in their economic analysis. The Bank’s recommended shadow prices of carbon were updated in December 2017 and are consistent with achieving the core objective of the Paris Agreement of keeping temperature rise below 1.5 degrees Celsius.

    The Bank Group is the largest multilateral funder of climate investments in developing countries.

    • The Bank Group is working with the other multilateral development banks (MDBs) on common approaches to monitor and track their climate finance flows to client countries, as they increase their climate financing in mitigation and adaptation. The MDBs are continuing to align their financial flows to help countries meet the Paris Agreement, supporting the implementation of the NDCs and facilitating activities that transition development towards low greenhouse gas emissions and climate resilient development.

    Last Updated: Sep 30, 2020

  • The Bank Group successfully delivered its first ever Climate Change Action Plan (2016-2020):

    The World Bank Group is today the largest multilateral funder of climate investments in developing countries, having committed $83 billion to climate-related investments over the last five years.

    • In 2020, the WBG committed $21.4 billion to climate-related investments, surpassing targets for the third year in a row.
    • IDA/IBRD finance for adaptation specifically went from 40% of climate finance in 2016 to 52% in 2020.

    Other highlights from the last 5 years:

    • 120 million people in over 50 countries gained access to hydro-meteorological data and early warning systems crucial to saving lives in disasters
    • Over 30 countries were supported to implement or enhance the National Determined Contributions under the Paris Agreement, and over 35 national or sub-national governments were supported in their efforts to put a price on carbon.
    • All new Bank projects are screened for climate risk: climate change considerations are taken into account at every stage of project design and have been integrated into 100% of the Bank’s multi-year development strategies with developing country partners.
    • The Bank has also branched out beyond sectors traditionally identified with climate action, expanding the range of climate-smart development to projects that include enhancing digital development and climate resilience together in Bangladesh, integrating climate into macro fiscal budgeting and planning in the Philippines and improving energy and water efficiency into Egypt’s healthcare system.
    • As part of the new climate targets for 2021-25, through both the IBRD capital increase and IDA 19 replenishment, we set ourselves more ambitious climate co-benefits targets, and are ramping up efforts to mainstream climate into operations and country engagement.

    Selected sectoral results:

    Energy

    • Currently, around 789 million people live without electricity, mostly concentrated in rural areas of Africa and South Asia. The World Bank is committed to closing this gap by helping countries deliver access to affordable, reliable, sustainable, and modern energy for all.
    • Under the first Climate Change Action Plan, the Bank supported clients add 18 GW of variable renewable energy into grids and 16 GW of renewable energy generation capacity for a total of 34 GW of renewable energy to help communities, businesses, and economies thrive. Building on a strong track record of supporting the expansion of energy access, our financing over the past three years (FY2017-19) contributed to providing new electricity connections for over 30 million people through grid. In FY19 IFC arranged for $2.3 billion in renewable energy, including $545 million of own account investments and $1.8 billion in core mobilization.
    • In Ethiopia, the National Electrification Plan focuses on “last-mile service delivery” for households, schools and local health centers, with an emphasis on reliable and affordable access for all. The Bank is currently supporting the National Plan through a $375 million IDA credit that will help bring electricity to one million households, and pilot new approaches for off-grid electrification. In March 2019, Ethiopia launched an updated version of the Plan (NEP 2.0), which includes a detailed framework for the integration of off-grid technologies with grid connectivity to achieve universal access by 2025.
    • The $8.5 billion Climate Investment Funds (CIF) recently marked ten years of climate action, working in 72 countries. Among CIF’s 300 plus projects is the Noor Ouarzazate Concentrated Solar Power (CSP) complex in Morocco. The largest CSP facility in the world, Noor’s output of 580 MW provides clean energy to 2 million Moroccans and accounts for one-fourth of Morocco’s solar energy target of 2 gigawatts (GW) by 2020.
    • As part of a $775 million partnership through its Clean Technology Fund (CTF), CIF is helping India expand its rooftop solar industry. In less than a year, the program has enabled close to 500 MW of new rooftop solar capacity. It is estimated that rooftop solar alone can save almost 2 billion tons of CO2 emissions and lead to nearly 50,000 jobs.
    • The Wind Power Development Program supported the scaling up of wind power in Egypt with US $150 million of CTF financing. In addition to the installation of a 250 MW wind power plant, the project strengthened the country’s capacity to develop and operate renewable energy projects while increasing private sector participation in renewable energy development. There are nearly 1.5 million direct beneficiaries of this project, of which 49% are women.
    • In Egypt, IFC, the Bank and a consortium of other lenders committed $653 million to support the Benban Solar Park to bring electricity to homes and businesses. Benban is capable of producing 1,650 MW of electricity—enough to power hundreds of thousands of homes and businesses. The solar park is expected to avoid 2 million tons of GHG emissions a year, the equivalent of taking about 400,000 cars off the road. At the time of its completion, Benban will be the largest solar installation in the world —with more than 32 contiguous solar projects containing 6 million solar panels.
    • In Cameroon, IFC and the Bank are helping the government to construct the €1.2 billion Nachtigal Hydropower Plant – a privately owned and operated 420 MW power plant on Senaga River that will increase Cameroon’s power generation capacity by 30% and create up to 1,500 direct jobs.
    • IFC and partners are financing a $32 million rooftop solar project for up to 500 public schools to power more than 16,000 houses across the West Bank—a first-of-its kind project designed to enhance the renewable energy sector and address chronic power shortages and blackouts by harnessing a domestically available source of energy. The schools will receive free electricity and, in some cases, cash payments for hosting the installations. Most of the electricity generated from the solar panels will be fed into local distribution systems at a competitive tariff, and businesses. The Bank will provide a grant of up to $2 million from the Investment Co-Financing Facility.
    • Through the Scaling Solar program, the World Bank Group is helping emerging market countries – including Zambia, Senegal, Togo, Madagascar, Cote d’Ivoire, Uzbekistan and Afghanistan – develop utility-scale solar power quickly and affordably. Scaling Solar brings together a suite of Bank Group investment and advisory services under a single package to help create viable markets for solar power in each country. This “one-stop shop” aims to deliver privately funded grid-connected solar projects at competitive rates and shortens the period from project development to financial closure. On March 11, 2019, the program’s first solar plant, with a total capacity of 54 MW, was inaugurated in Lusaka, Zambia. In 2019, Uzbekistan represented the first time the program expanded beyond Africa.
    • In April 2020 the Bank’s Carbon Initiative for Development (Ci-Dev) had its third issuance of Carbon Emissions Reductions (CERs) for its West African Biodigester program. This will help scale up the National Biogas Programme of Burkina Faso which has achieved a total of 86,000 CERs to date. Biodigesters convert animal waste into clean fuel that can be used for cooking and a nutrient-rich fertilizer that can be used for agriculture. These payments will be used to support and scale up the national program, to share information on the benefits of biodigesters for clean cooking and agricultural improvement, and to train masons on biodigester construction.
    • Two new Emissions Reduction Payment Agreements (ERPAs) between the Carbon Partnership Facility (CPF) and Caixa Econômica Federal (CAIXA), Brazil’s second largest bank, were signed in March and August 2020. Participating waste management companies are committed to operating landfills that fulfill the rigorous requirements of the United Nations Framework Convention on Climate Change’s (UNFCCC) Clean Development Mechanism, reducing greenhouse gas emissions from the collection and destruction of methane. Under the new agreements they will continue to earn carbon credits and take the extra step of producing electricity from collected methane, displacing electricity usage generated from fossil fuels. Under the two new ERPAs, the landfills in Rio de Janeiro and Pernambuco aim to reduce about 0.86 million tCO2e of emissions between 2019 and 2020.

    Adaptation and Resilience

    • In January 2019, the World Bank Group launched a new Action Plan on Climate Change Adaptation and Resilience. In FY20, the World Bank committed $9 billion in adaptation investments. Little over half (52%) of all World Bank climate finance is devoted to adaptation, demonstrating a commitment to focus as much on supporting countries to adapt to climate change as on mitigating future emissions.
    • The World Bank has scaled up investments and analytical work related to climate and disaster-resilient infrastructure. The flagship report “Lifelines: The Resilient Infrastructure Opportunity” makes the case that more resilient infrastructure systems not only avoid costly damage, but also minimize the wide-ranging consequences of disasters caused by natural hazards for the livelihoods and well-being of people. Tools and approaches developed through the Lifelines research are already being applied in a number of countries that have sought specialized technical assistance on the subject.
    • Some highlights of work underway with support from Global Facility for Disaster Reduction and Recovery (GFDRR):
      •  Beginning with 16 coastal cities, the City Coastal Resilience in Africa (CityCORE) initiative is using disruptive technology — including remote sensing and machine learning — to collect information on institutional capacity and existing hazard, exposure, and vulnerability mapping analysis to generate rapid risk screenings of coastal cities and to inform investments.
      • In Bosnia and the Herzegovina, GFDRR has been supporting authorities in mainstreaming disaster risk management into their road network management practices, leading to $65 million in IBRD financing to help upgrade  the country’s transport infrastructure.
      • Indonesia has recently completed flood hazard modeling for three cities highly vulnerable to flooding: Bima, Manado, and Pontianak; which . will lead to a comprehensive urban resilience diagnostic and roadmap, and potentially inform a Bank-supported national urban flood resilience program.
      • Creating a more resilient and sustainable future for Panama City, Panama – vulnerable to floods and sea level rise – requires investments that are comprehensive and multi-sectoral. GFDRR helped Panama City identify nature-based solutions as possible options for disaster risk management and building resilience. E.
      • Built on a low-lying river estuary overlooking the sea, Sri Lanka’s capital, Colombo is highly vulnerable to the risk of flooding exacerbated by changing weather patterns combined with haphazard land use. With support from GFDRR, the country has developed a geo-database to help integrate disaster risk into infrastructure planning.
      • In Yemen, as part of strengthening social resilience and inclusion, GFDRR is working with women and local communities to identify risk management mechanisms for conflict and disaster. They are also guiding decision-making processes for the restoration of critical urban services for water supply and sanitation, electricity, and transportation.
    • GFDRR, alongside the Bank Group, is helping countries manage the COVID-19 pandemic. Even before the pandemic, GFDRR has been supporting countries design and implement contingent financial instruments such as the Catastrophe Deferred Drawdown Option (Cat DDO) and Contingent Emergency Response Components (CERCs). These World Bank financial instruments help countries access emergency funds quickly in the face of disasters. In Morocco beginning in 2016, GFDRR provided $607,000 to support an integrated DRM and resilience project, which helped design a $275 million Cat DDO in 2019 and has now been disbursed to address COVID-19 challenges.
    • Niger, in partnership with the CIF and the Bank, is laying the groundwork for a more resilient future by placing nearly 39,000 hectares of silvo-pastoral land and over 4,700 hectares of agricultural land under improved management. This led to a 62% increase in crop yields in target areas. In parallel, these investments are equipping 231 communities with resilience-building technologies that foster climate-smart agricultural approaches and improve access to enhanced weather information.
    • Through the CIF-financed Improving Climate Data and Information Management Project, the government of Jamaica is upgrading the country’s hydromet monitoring network by putting in place an impressive range of essential equipment and infrastructure. This includes the installation of 35 automatic weather stations, 54 intensity rain gauges and stream flow monitors, 16 soil moisture probes, 1 water-monitoring situation room, and one sea-level tidal gauge. The project also has a climate change education component and it has made significant progress in promoting climate change awareness at the national and local levels.

    Transport

    • The transport sector presently contributes about a quarter of global energy-related GHG emissions and 16% of total GHG emissions making decarbonizing transport is crucial to helping countries meet their climate commitments. At the same time, transport infrastructure is also particularly vulnerable to climate risk. Weather events such as floods or landslides can quickly paralyze transport networks, with a severe knock-on effect on economic life and recovery efforts. Long-term changes in temperatures and precipitation patterns also tend to reduce the lifespan and reliability of transport assets.
    • To address these challenges, the Bank supports an extensive range of climate-smart transport projects in low- and middle-income countries. Between FY17-20, we committed a total of $3.7 billion to support low-carbon and resilient transport infrastructure, policies, and planning. 58% of Bank transport project financing (both IBRD and IDA) in FY20, approximately $1.9 billion, generated mitigation and/or adaptation climate-co benefits.
    • In Dakar, Senegal, we are working with partners to help develop a new transport system aimed at moving 300,000 passengers per day. The Dakar Bus Rapid Transit (BRT) Pilot Project will improve travel conditions and reduce by half the average rush hour in-vehicle travel time by public transport. Senegal's NDC lists the BRT as central to reducing the country’s transport-related carbon emissions.
    • Traffic volume on India’s 5.5-million-kilometer road network is fast growing along with emissions, pollution and crashes. The $500 million Green National Highways Project, approved in March 2020, will help mainstream safety and green technologies in the highway network by demonstrating resource efficiency, climate resilience, green and safety aspects in the design and construction of about 783 km of selected existing National Highways. All told, the project will avoid the emission of almost 12.5 thousand tons of CO2 equivalent per year from 2024 to 2043.
    • Shifting freight traffic from roads to railways and waterways can significantly reduce the overall carbon footprint of transport. As part of this approach, the Bank has committed $375 million to India’s National Waterway 1 project, a modern inland waterway over a 1,360-km stretch of the Ganga River. The upgraded waterway will save an estimated 162,000 tons of CO2 emissions per year.
    • In Bangladesh, the NDC-Support Facility is supporting the development of the country’s inland waterway transport sector. Through a pilot exercise some of Bangladesh’s cargo transport along the Dhaka-Chittagong corridor is shifting to inland waterways which would reduce emissions, lower transaction costs for suppliers and improve the reliability and efficiency of freight transport in the country.
    • In the face of growing climate risk, we are working with client countries to design more resilient infrastructure, enhance maintenance, and build alternative connections between strategic points. In Mozambique, following cyclones Idai and Kenneth, the Bank’s $110 million Integrated Rural Roads Development Project, re-established links between agricultural product growers and consumers and restored communities’ access to education and health services, helping the country recover. Also in Mozambique, the CIFs and the Bank are supporting  technical work for climate-resilient road design to help rehabilitate and strengthen over 300 km of flood-damaged roads and vital infrastructure: an approach which has helped revise national design standards and specifications for roads and has been adopted by the Government nationwide .
    • Turkey’s Rail Logistics Improvement Project ($350 million), approved in June 2020, aims to reduce the need for heavy trucks and vehicles, shifting to rail. By doing so, Turkey could see economic gains - freight market rates per ton for road transport are 2.6 times higher than those of rail freight in the country – and also reduce emissions, making progress towards meeting the country’s NDC.
    • Due to their size and location, Small Island Developing States are disproportionately affected by climate change. In a bid to enhance their overall climate resilience, the Bank has substantially increased assistance to the transport sector in many of these countries, with a clear focus on adaptation. For instance, the Pacific Climate-Resilient Transport Program is currently under implementation in Samoa, Tonga, Tuvalu, and Vanuatu, with more countries expected to join in a second phase.
    • In Bogota, IFC is supporting the development of the TransMicable cable cars that link low-income neighborhoods with the primary bus system, and the expansion of the BRT system with a financing package of $140 million. The cable car project has reduced commute times for the poorest residents from 2 hours to 13 minutes and increased access to jobs. IFC is also supporting the city in enhancing its environmental and social standards, in particular, a community engagement program in one of the poorest areas of Bogota, in order to mitigate risk, improve development impact, and help attract private capital.
    • Recent decentralization reforms in Ukraine have given municipalities greater fiscal autonomy and enhanced their ability to raise financing, thus paving the way for IFC’s first pilot project in the city of Mariupol. IFC provided a EUR 12.5 million loan to Mariupol to procure 64 modern low-floor, large-capacity buses and upgrade the supporting infrastructure, including a bus depot, bus workshop tools and equipment, and existing traffic planning and management system. IFC is also providing advisory services to improve the regulatory approach and governance structure of the public transport system in Mariupol thus helping achieve financial sustainability while ensuring a safety net for the vulnerable and poor.
    • In January 2020, a vehicle scrapping and recycling program in Egypt supported by World Bank’s Carbon Partnership Facility (CPF) delivered all of the carbon credits in its contract with the Facility’s Participants. More than 46,000 new taxis – over 90% of Cairo’s taxi fleet – replaced aging taxis in the city, some of which were over 50 years old. This project has reduced accidents as well as pollutants affecting air quality and human health. The equivalent of over 340,000 tons of carbon dioxide were avoided between 2013 and 2018 as a result of the program.

    Food and Agriculture

    • In 2020, 52% of the Bank’s agricultural investments are directly financing climate mitigation and adaptation measures.
    • Climate change is a major driver of the current Desert Locust outbreak. Unusual weather conditions exacerbated by climate change created ideal conditions for locust numbers to surge. Increasing temperatures in the Western Indian Ocean in 2019 gave rise to abnormally heavy rainfall, creating humid conditions that were ideal for hatching and breeding, and strong cyclones in typically arid areas of Africa and the Middle East helped dispersed the swarms. The Bank Group is working to provide flexible support to countries affected by the Desert Locust Outbreak. In response to urgent need, the Bank Group will provide financing, complemented by policy advice and technical assistance, to help countries mobilize a response to the outbreak.
    • The Niger Irrigation Program initiative is a three-year partnership between IFC, the CIF, and Netafim, a global leader in micro-irrigation technology. Family-size drip- irrigation systems are installed on parcels of land across Niger ranging from 250 square meters to 2500 square meters. The technology – powered entirely by solar energy pumps – slowly delivers water to the base of a plant, drip by drip. So far, Netafim has trained more than 300 farmers to use this technology, more than half of whom are women. Participating farmers have reported receiving extra income of more than $200 per season and water savings from 30% to 55%.
    • The West Africa Agricultural Productivity Program (WAAP), a regional program involving 13 countries and multiple partners, helped develop climate-smart varieties of staple crops, such as rice, banana plantain and maize. Collaboration with cooperative and extension workers across West Africa helped deliver 233 improved technologies including climate-smart crop varieties to farmers; provided climate-smart technologies such as post-harvest and food processing technologies; and trained farmers on climate-smart practices such as composting and agroforestry. Farmers also gained access to technologies such as efficient water harvesting systems. As of July 2019, the project had directly helped more than 9.6 million people and more than 7.6 million hectares of land be more productive, resilient and sustainable. Beneficiary yields and incomes have grown by an average of about 30%, improving food security for about 50 million people in the region.
    • In March 2017 IFC committed over $40 million in a loan through the Global Warehouse Finance Program to Sofitex, an agriculture export company in Burkina Faso. The project aligns with World Bank’s Sahel Irrigation Initiative and supports Burkina Faso’s NDC. The loan enables farmers use of efficient warehousing facilities to reduce post-harvest losses and includes advisory support to help Sofitex client farmers realize ~40% and ~30% increases in cotton and maize yields respectively without exploiting ground water resources.
    • A $10.6 million CIF investment to pilot low-carbon agricultural practices in the Brazilian Cerrado cultivated keen interest and investment among the 7,800 farmers and ranchers who participated. The project improved over 378,000 hectares of degraded pastures a—an area larger than Brazil’s biggest city, São Paulo. 

    Forests and Landscapes

    • The World Bank’s forest and land use funds work to provide results-based payments for the reduction GHG emissions from the forest and land use sectors. These funds work across nearly 50 countries and have a combined capital of over $1.5 billion. In addition to the focus on implementation and readiness for reducing emissions from deforestation and forest degradation and developing sustainable land use activities, these initiatives also deliver poverty and societal co-benefits to stakeholders in program areas, with a notable focus on the role and involvement of women and Indigenous Peoples.
    • ChileDemocratic Republic of the CongoGhana and Mozambique –all countries with globally significant forest resources – have signed landmark agreements with the World Bank that reward community efforts to reduce carbon emissions by tackling deforestation and forest degradation. Together, these four agreements, known as Emission Reductions Payment Agreements (ERPAs), unlock performance-based payments of up to $181 million. The payments will come from the World Bank’s Forest Carbon Partnership Facility Carbon Fund. Several other countries are expected to finalize their emission reductions programs and follow suit with ERPA signings valued in total at approximately $800 million by the end of 2020.
    • For decades, illegal hunting and overfishing in Colombia’s Orinoquia region contributed to significant biodiversity loss. But leveraging financing opportunities can support new economic options for local communities, while also helping to preserve the enormous biodiversity, carbon and ecosystem value of the region. The World Bank’s BioCarbon Fund Initiative for Sustainable Forest Landscapes aims to support these efforts by building an enabling environment in Orinoquia for economic growth in harmony with environmental conservation.
    • Results-based land use programs reward stakeholders for their efforts in reducing emissions, managing land sustainably, and protecting ecosystems. The right incentives in the right hands can ensure success and sustainability, but achieving this winning combination requires careful consideration, especially for larger-scale programs like those supported by the Forest Carbon Partnership Facility and the BioCarbon Fund Initiative for Sustainable Forest Landscapes. A recently-launched suite of tools and guidance resources now offer a step-by-step process for developing fair and efficient benefit sharing arrangements.
    • Supported by the CIF, the $76.5 million Dedicated Grant Mechanism for Indigenous Peoples and Local Communities is a one-of-a-kind initiative that empowers indigenous peoples and local communities to lead and engage in sustainable forestry dialogue and actions. It is part of the CIF Forest Investment Program, which globally has reduced the equivalent of 12.3 million metric tons of carbon dioxide, putting over 30 million hectares of forests under sustainable management, and benefiting more than 1.3 million people.

    Cities

    • The Bank has worked in cities and towns across over 140 countries, investing $4.5 billion during fiscal year 2020 in disaster risk management.
    • The Bank and the European Investment Bank are implementing the City Climate Finance Gap Fund, a new partnership supporting green, inclusive, resilient, creative, and competitive cities in developing countries. Through donor support, technical assistance, and targeted finance of at least €100 million, the Gap Fund will aim to unlock an estimated €4 billion to help cities transform climate ambition into finance-ready projects.
    • Established in June 2017, the City Resilience Program (CRP) – a partnership between the Bank and GFDRR – is a multi-donor initiative aimed at increasing financing for urban resilience. The Program strives to catalyze a shift from a primarily siloed, single-stream city-level resilience operations approach to longer term, more comprehensive, multi-disciplinary packages of technical and financial services, building the pipeline for viable projects at the city level that, in turn, build resilience.
    • As a starting point for engaging with cities to support them to effectively plan for resilience, the CRP has delivered 41 City Scans which provide a series of maps, visualizations, and analysis which spatially lay out the city’s risk information and the built environment.
    • Urban resilience goes hand in hand with environmental sustainability. The World Bank’s Global Platform for Sustainable Cities is a partnership and knowledge platform that includes 28 cities across 11 countries that have received $151 million from the Global Environment Facility. This support has leveraged $2.4 billion in project co-financing. The platform promotes integrated solutions and cutting-edge knowledge for cities seeking to improve their resilience and overall urban sustainability in the areas of indicators and tools, integrated urban planning and management, and municipal finance.
    • As part of its focus on cities, IFC analysis estimates that there is a $24.7 trillion opportunity in green buildings in emerging market cities to 2030 and showing how financiers, governments, developers and building owners can take the lead in shaping and accelerating this multitrillion-dollar business opportunity.
    • IFC has developed a green building certification tool for emerging markets known as EDGE (Excellence in Designing Greater Efficiencies), which is available in 160 countries for residential, public and commercial projects. EDGE stimulates demand for green buildings and boosts the capacity of developers and banks to build and finance environmentally friendly construction. As of September 2020, nearly 7.7 million square meters of floor space have been EDGE-certified, with CO2 savings of over 130,000 tons per year.
    • IFC’s cumulative commitments for green buildings have reached a total of $3.9 billion dollars, including own account investments and mobilized financing. In FY20, IFC committed $362 million of own-account in green buildings, mobilizing an additional $215 million for a total of $577 million.
    • Through the World Bank’s Cities and Climate Change Program, co-financed by CIF, the city of Beira in Mozambique is implementing a green infrastructure program to build its resilience to extreme weather events and devastating floods, and improve the living conditions of its residents. The city upgraded its storm water drainage system, resulting in a 70% reduction in flood risks, and adopted a nature-based approach to prevent flooding. It has planted 7,000 trees, established a botanical garden, rehabilitated mangrove areas and built recreational infrastructures. The program has become a source of pride for Beira as being the largest green infrastructure program in the region. It was able to transform marginal areas along Chiveve River into a green urban park that offers services to ecosystems such as biodiversity, drainage, urban cooling and flood mitigation, as well as economic and recreational opportunities to Beira citizens.

    Innovative Partnerships

    • In April 2019, at the Spring Meetings of the World Bank Group and International Monetary Fund, Finance Ministers from more than twenty countries aimed at driving stronger collective action on climate change and its impacts. The Coalition of Finance Ministers for Climate Action endorsed the Helsinki Principles at that meeting, a set of six principles that promote national climate action, especially through fiscal policy and the use of public finance. The membership of the group has since more than doubled, comprising over 50 countries covering 30% of global GDP. Finance Ministers also gathered at COP25 where they launched the Santiago Action Plan which details how progress will be made on each of the Helsinki Principles.
    • The Carbon Pricing Leadership Coalition (CPLC), a World Bank Group  initiative, brings together leaders from national and sub-national governments, the private sector, and civil society with the goal of promoting the use  of effective carbon-pricing policies to support ambitious climate action and contribute to sustainable development.
      • The CPLC is convening a panel of senior experts across the public and private sector and civil society to explore how to achieve net-zero targets and commitments, including the role of carbon pricing.
      • The industry-led High-Level Commission on Carbon Pricing and Competitiveness— comprising CEOs and senior executives from leading global companies, as well as former high-level government officials and representatives from academia— launched a flagship report in September 2019 calling on industry peers and governments to adopt strong carbon pricing policies. As more businesses develop low-carbon strategies, supportive government policies can act in tandem to unlock economic opportunities, advance innovation, job creation and manage competitiveness concerns.
      • CPLC, together with the Partnership for Market Readiness (PMR) supports the Carbon Pricing Dashboard, an interactive online platform that provides up-to-date information on existing and emerging carbon pricing initiatives around the world.
    • The Partnership for Market Implementation, a successor to our readiness work program,  was launched at COP25, by the Bank, and country partners including Canada, Chile, Colombia, European Commission, Finland, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom and Vietnam. This Partnership will provide technical assistance to countries to design, pilot and implement carbon pricing and market instruments. It will support the direct implementation of carbon pricing in at least 10 developing countries and help a further 20 countries get ready to do so.
    • Innovate4Climate hosted by the World Bank Group, is the preeminent annual global conference on climate change action and has built a reputation for high quality technical knowledge sharing. Launched in 2017, it attracts global leaders from government, industry, business, finance, and technology, who gather to envision the next generation of climate-smart solutions with the potential to transform the global economy.
    • The Connect4Climate (C4C) global partnership program of the Communications for Climate Change Multi Donor Trust Fund connects over 500 organizations to drive global and local climate action through advocacy, operational support, research and capacity building. Its use of creative communications enables C4C to engage and activate diverse audiences, with a particular focus on amplifying youth voices and collaborating with the creative industries, including but not limited to film, fashion, music and sports, to inspire meaningful behavior change.
      • C4C is currently producing the #Youth4ClimateLive Series in collaboration with the Italian Ministry of Environment, Land and Sea and the office of the UN Secretary-General’s Envoy on Youth, as part of the initiatives organized in the run-up to the 2021 Pre-COP26 in Milan, Italy and COP26. Each monthly episode brings together a diverse group of unstoppable youth at the forefront of creative climate action for intergenerational and interactive conversations with policy makers and experts.
      • The Great Green Wall feature documentary  follows the journey of Malian musician Inna Modja as she takes us on an epic quest along Africa's Great Green Wall — an ambitious vision to grow an 8,000km 'wall’ of green stretching across the entire width of the continent to restore productive land and provide a future for millions of people.  C4C has partnered with UNCCD on the global advocacy campaign around the film to increase support for the Great Green Wall and help young Africans take part in the regeneration and renewal of their land.   
      • C4C has hosted Digital Media Zones at events such as the GEF Assembly in Vietnam and COP25 in Madrid, amplifying messages of climate action for a global audience, as well as facilitating high-profile events that bring together policy, science and art, such as the IPCC’s 30th anniversary celebration in Bologna.
      • At COP25 in Madrid, C4C championed the message of #WeAreAction through the launch of a green bowtie campaignyouth-focused video contentside events, and an Instagram portrait series featuring young climate leaders from around the world.
      • C4C helped produce the feature documentary Youth Unstoppable that chronicles the rise of the global youth climate movement and continues to inspire young people around the world to take action. At COP24 in Poland, C4C invited director Slater Jewell-Kemker and Greta Thunberg for a conversation on how to roll-out transformative solutions with young people at the center.
      • At UNGA74, C4C partnered with Youth Climate Lab to host a Policy Jam on Unlocking Climate Finance, attended by over 100 young people from all over the world. The outcomes of this innovative workshop were presented at the High-Level Dialogue on Financing for Development, bringing youth voices and proposals into official UN spaces.

    Last Updated: Sep 30, 2020


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In Depth

IDA and Climate Change

IDA helps the poorest nations adapt to climate change by building their resilience to disasters, and promoting sustainable development to minimize their vulnerability.

Carbon Pricing Leadership Coalition (CPLC)

The Carbon Pricing Leadership Coalition brings together leaders from across government, the private sector and civil society to share experience working with carbon pricing and to expand the evidence base for the most ...

IFC Climate Business

IFC invests in the private sector in clean energy, sustainable cities, climate-smart agriculture, energy efficiency, green buildings and green finance.

Connect4Climate

Connect4Climate is a global partnership program dedicated to driving climate action with creative communications, by amplifying youth voices and generating advocacy campaigns centered on Film, Fashion, Music and Sports.

Climate Action Peer Exchange (CAPE)

Climate Action Peer Exchange (CAPE) is a forum for peer learning, knowledge sharing, and mutual advisory support. It brings together ministers and senior technical specialists from finance ministries across the world, as ...

Climate Investment Funds

The $8.3 billion Climate Investment Funds (CIF) is providing 72 developing and middle income countries with urgently needed resources to manage the challenges of climate change and reduce their greenhouse gas emissions.

Forest Carbon Partnership Facility

The Forest Carbon Partnership Facility is focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest ...

BioCarbon Fund Initiative for Sustainable Forest Landscapes

The BioCarbon Fund Initiative for Sustainable Forest Landscapes is focused on reducing emissions from the land sector through smarter land use planning, policies, and practices.

Carbon Pricing Dashboard

This interactive dashboard provides an up-to-date overview of carbon pricing initiatives around the world and allows users to navigate through the visuals and data of the annual State and Trends of Carbon Pricing report ...

Additional Resources