Climate Change

Development progress has stalled in many countries amid low growth, increased fragility and conflict, pandemic-related setbacks, and the impacts of climate change. An essential part of our vision to end poverty on a livable planet is helping people and communities adapt and prepare for the unpredictable and life-changing weather patterns they are experiencing.  Droughts, extreme heat, flooding and storms push millions into poverty annually, causing unemployment and risking unplanned internal and cross-border migration. Every year, an estimated 26 million people fall into poverty due to extreme weather events and natural disasters. These shocks have the potential to push a total of 130 million into poverty by 2030. We are supporting countries to meet these challenges in a way that builds resilience across families, communities, and companies, and doesn’t inadvertently increase pollution.

Helping people and communities adapt means making development investments that improve quality of life while also creating local jobs, strengthening education, and promoting economic stability. It also ensures that limited development resources are used wisely—by building infrastructure that can withstand future disasters, rather than needing to be rebuilt after each one. The World Bank Group is committed to meeting the needs of its clients – developing countries – who are asking our projects to have climate benefits, seeing it as smart development for their unique situations. This is a practical approach that opens the door to every resource at our disposal—bringing in industries and investors across the spectrum to participate. It creates opportunities, ensuring that no one is left out of the solutions we need for a more sustainable future. 

This means building hospitals that can withstand natural disasters and roads that don't get washed away with rainfall. Countries are investing in resource efficient rice harvests, heat-resistant varieties of seeds, drip irrigation, and restoring forests and mangroves to protect rural and coastal communities, improve their food security, and identify new private sector opportunities that will create jobs.

We are supporting reliable and affordable energy, boosting utility efficiency, and increasing regional power integration. We are also investing in country priorities – for example, improving affordable and efficient public transportation to get people back and forth to work, or improving on-farm productivity with new varieties of seeds and healthier livestock.

Last Updated: Apr 28, 2025

Strategy

The World Bank Group is committed to meeting the needs of developing countries with smart development solutions. We are guided by our Board-approved Climate Change Action Plan 2020-2025 (CCAP), which lays out our goals of supporting adaptation and mitigation, our diagnostic tools to help countries with analytics related to climate change and development, and our commitment to align financing flows with the objectives of the Paris Agreement to support countries’ climate commitments. The CCAP has been extended until June 30, 2026, with no other changes.

To respond to increasing client demands, the Bank is directing 45% of its financing to development projects with strong climate co-benefits, with the goal of half to projects with adaptation benefits and half with mitigation benefits in IBRD/IDA operations. 

Adaptation builds resilience with durable roads, flood-resistant infrastructure, and water-efficient irrigation. Simple, cost-effective solutions—like improving drainage systems or using drought-resistant seeds—deliver outsized impact. 

Mitigation cuts emissions. It is about helping countries grow and create jobs while minimizing their emissions.   It means investing in a mix of energy sources as part of a practical energy future, and extends beyond energy to sectors like agriculture, where better practices can cut methane, and transportation, where shifting freight from roads to rail can lower carbon footprints, and water and waste.

Smart development is an essential element of a more prosperous and healthier world. Through targeted support, we can help countries thrive, using new technologies that are more effective and efficient, while reducing poverty and building a cleaner planet.   

Activities

The World Bank Group delivered a $42.6 billion in smart development finance that had climate co-benefits in fiscal year 2024—which covers July 1, 2023 to June 30, 2024.

In 2024, we partnered with other Multilateral Development Banks (MDBs) to launch a common approach for measuring resilience outcomes in a more systematic way. This approach pivots from mostly measuring the volume of our finance with climate co-benefits, to also measuring results. In addition to the current practice of disclosing climate finance (mitigation and adaptation) data for each project, the World Bank is disclosing sub-project level climate finance data, from April 1, 2025.  The World Bank will also disclose climate finance at the close of each project which could facilitate comparison between committed and disbursed amounts. This enhanced transparency measure will be effective from July 1, 2025 (the start of fiscal year 2026). 

Our analytics include the Country Climate and Development Reports (CCDRs), with over 60 published to date covering 74 economies. Countries are tapping into our vast stores of development knowledge to gain expertise, especially in strengthening the enabling environment for private sector investment and supporting smart development in their local communities and local businesses.

Since 2008, we have issued approximately $19 billion equivalent through over 220 labeled (green, blue) bonds in 28 currencies. We have also engineered new instruments, whether issuing the Bank’s first sustainability linked loan to Uruguay to improve livestock productivity and decrease their footprint, or developing new instruments including outcome-based bonds or guarantees that have supported carbon markets.

We are working with over 30 countries in establishing domestic carbon pricing mechanisms and preparing for the next generation of international carbon markets. We are also helping countries to design and implement large scale programs that generate high integrity carbon credits in the forests and other sectors.

And we are supporting nature-based solutions to development challenges such as using soil stabilization to reduce erosion, and mangrove restoration to improve fisheries and protect coastal infrastructure from wave inundation. The World Bank currently has over $14 billion active investments in environment, natural resources, and the ocean.

Efforts like Mission 300 help align private capital with public priorities to achieve results neither could accomplish alone. Philanthropies and development banks provide the financial backbone; countries take the lead on project conception and implementation.

As part of a blueprint for methane reduction, through the Global Methane Reduction Platform For Development (CH4D) platform we are supporting 24 country-led programs to deliver better rice production, livestock operations and waste management systems with methane reduction, enhanced environmental resilience and improved livelihoods.

We have significantly expanded our crisis toolkit in several ways: broadening the scope of our Climate Resilient Debt Clauses to now cover disasters such as droughts, floods, and pandemics, offering vulnerable countries much-needed financial flexibility during crises.

Last Updated: Apr 29, 2025

Selected sectoral results:

Disaster Resilience

• The World Bank developed flood risk management strategies in Buenos Aires, including education activities and data collection, reducing the risks of flooding for close to 47,000 people in vulnerable communities.
• The World Bank has supported the design and construction of weather-resilient housing in Sindh Province of Pakistan, following the 2022 floods. Around 1,050,000 families have received funding for the construction of new weather-resistant homes. This effort has generated an estimated 450,000 direct jobs and an additional 650,000 jobs in the construction supply chain, enabling families to rebuild and remain in their communities.
• Some highlights of work underway with support from Global Facility for Disaster Reduction and Recovery (GFDRR) include:
  • In Bhutan, a longstanding partnership with the country on strengthening hydromet and early warning systems has paved the way for the development of the country’s Agrometeorological Decision Support System, which uses machine learning algorithms to generate specific crop advisories based on weather and climate data. Bhutan’s Department of Agriculture has recently enhanced and operationalized the system and it now disseminates advisories to 11 gewogs, a group of villages, covering a total population of approximately 43,270 people.
  • In Honduras, technical assistance has been provided to the national government, which has enabled the construction of 37 disaster- and climate-resilient schools in vulnerable communities, with 30 additional schools under construction.
  • In the Kyrgyz Republic, analytical work has informed the design and implementation of nature-based solutions under the Kyrgyz Republic Resilient Landscape Restoration Project, which is being supported by a $45 million financing commitment from IDA. The analytical work, among others, has highlighted key considerations for planners with regard to the design and implementation of a range of potentially suitable options for the Kyrgyz Republic, including slope stabilization and riverbank and riverbed protection.
• The World Bank has scaled up analytical work and metrics related to adaptation and resilience.
  • The Resilience Rating System is a method that helps assess and embed resilience in investment projects across two dimensions: the resilience of a project’s design (whether it is resilient to risks from climate change and natural hazards); and the resilience gained through project outcomes (whether it builds the resilience of people and of the wider system). An accompanying climate risk stress testing method and tool supports integration of climate and disaster impacts in project economic and financial analysis. This system was piloted across 21 projects in multiple regions and sectors, and the lessons will be used to inform future investment projects.
• The Rising to the Challenge report presents a whole-of-economy framework for adaptation and assessments of adaptation and resilience readiness of 44 countries. The report also examines 39 examples of adaptation good practices from the public and private sector that could be scaled up to increase resilience around the world.

Food and Agriculture

• In Ethiopia, a project has helped reduce greenhouse gas emissions intensity by 33% in the livestock sector. This was achieved through targeted livestock value chains – dairy cattle, sheep, goats, and poultry. The project implemented better livestock practices, such as improved livestock feed and feeding practices, and enhanced manure management, which reduced methane emissions and minimize the carbon footprint of the livestock sector.
• In Haiti, a project contributed to enhance the country’s resilience through institutional strengthening, adoption of better agricultural practices, and development of tools for better climate adaptation and monitoring. Over 20,000 farmers were provided with better crop varieties/seeds.
• A program in Jordan aims to strengthen the development of Jordan’s agriculture sector by enhancing its climate resilience, increasing competitiveness and inclusion, and ensuring medium- to long-term food security. The program has increased the capacity for rainwater harvesting by 2.2 million and enhanced resilience to extreme weather for 19,600 beneficiaries by supporting the adoption of water-efficient agriculture practices.
• The Word Bank continues to support the Accelerating Impacts of CGIAR Climate Research for Africa project in advancing climate-smart agriculture technologies and addressing critical gaps in climate resilience and food security in Ethiopia, Ghana, Kenya, Mali, Senegal, and Zambia. In Mali, for example, 150,000 farmers increased their income by $364 per hectare thanks to a digital app called RiceAdvice, which contributed to the adoption of drought-tolerant rice varieties and other practices to manage water scarcity.
• The World Bank is supporting countries that produce the world’s rice, such as Viet Nam, to repurpose policies and invest in systems that reduce emissions and save water while improving crop yield. This includes developing better irrigation systems for rice paddies, promoting the use of seeds that use less water while improving yields, and providing training to farmers for dry seeding techniques.

Transport

• The Bank is investing in Bus Rapid Transit systems to reduce vehicle-related air pollution and improve commuting times for millions of workers, in a number of cities including Cairo, Egypt; Dakar, Senegal; Abidjan, Côte d'Ivoire; Douala, Cameroon; Kampala, Uganda; Kumasi, Ghana; Maputo, Mozambique; and Ouagadougou, Burkina Faso.  The World Bank is also supporting the use of small, affordable electric vehicles, such as electric bikes and three-wheel vehicles, to further reduce emissions. In Dakar, for instance, the Bank is 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.
• In Haiti, 475 km of rural roads and eight critical bridges were rebuilt, increasing access to all-weather roads, benefiting around 400,000 people, including improved access to health facilities and better access to markets.
• IFC, Buquebus, and Banco Santander partnered to finance the construction of the world's largest electric ferry, the China Zorrilla, which will operate between Buenos Aires, Argentina, and Colonia del Sacramento, Uruguay. The transaction represented the first blue loan in Uruguay and the first in the maritime ferry space worldwide, with IFC providing a $67 million partial credit guarantee, and Banco Santander Uruguay providing a $107 million loan. This innovative project aims to reduce 37,545 tons of carbon dioxide (tCO2e) per year and promote sustainable maritime transport, aligning with Uruguay's and Argentina's environmental commitments. The e-ferry—equipped with modern and sustainable features—is expected to be operational in October 2025 and will have a capacity for 2,100 passengers and 225 vehicles.

Water and Waste

• In Indonesia, nearly 350,000 farmers across 10 provinces have benefited from a project to improve irrigation water use efficiency and improve the quality of service delivery, raising the incomes of local families who rely on agriculture for their livelihoods.
• In Georgia, IFC acted as an anchor investor with a $40 million subscription to a $300 million green bond issued by GGU, Georgia's largest privately-owned water supply and wastewater utility company. The project is expected to lead to enhanced water services for GGU’s 1.3 million customers, or approximately 35 percent of Georgia's population, in the capital of Tbilisi and nearby cities of Rustavi and Mtskheta.
• The World Bank is supporting nine countries, including densely populated cities in Egypt, Pakistan, and Türkiye, to improve waste management systems. This includes investing in improved at-source collection and sorting systems for organic waste, improved waste transportation, upgrading landfills with anaerobic digestors, and setting up waste treatment plants.
• We are supporting Egypt to reduce air pollution and boost resilience in the Greater Cairo Region, which is home to a quarter of the country’s population, through better solid waste systems that capture methane as a scalable model for other regions.
  

Energy

• Mission 300 is the WBG's initiative to connect 300 million people in Africa to electricity by 2030. In Eastern and Southern Africa, the ASCENT Program will provide energy access to 100 million Africans across 20 countries over the next five years, helping countries achieve their national energy access goals through grid expansion and densification, strengthening utilities, regional power trade, and investments to scale up distributed renewable energy and clean cooking.
• The World Bank’s support to clean cooking totals more than $400 million in 21 countries—mainly in Africa and South Asia—helping 20 million people access cleaner and more efficient cooking and heating solutions.
• As part of a $775 million partnership, the $8.5 billion Climate Investment Funds 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.
• In Uzbekistan, IFC provided a project finance package including a $53 million loan and $20 million in blended finance, together with interest rate swaps and a World Bank payment guarantee, to fund a 250 MW solar plant with a 63 MW battery energy storage system developed by Abu Dhabi Future Energy Company (Masdar) in Uzbekistan. The project marks Central Asia’s first renewable energy initiative with an integrated storage component, which will improve the efficiency and flexibility of the power system, providing greater security of supply and helping to mitigate the intermittency of renewable generation.

Forests and Landscapes

• The Forest Carbon Partnership Facility (FCPF) has 15 Emissions Reduction Payment Agreements (ERPAs) with a total contract value of over $720 million, committing to reduce emissions through reforestation programs by more than 145 million tons of carbon to 2025. The 15  FCPF countries are: Chile, Costa Rica, Côte d'Ivoire, Dominican Republic, DRC, Fiji, Ghana, Guatemala, Indonesia, Lao PDR, Madagascar, Mozambique, Nepal, Republic of Congo and Viet Nam.
• In Cote d'Ivoire, the Dedicated Grant Mechanism (DGM) project has significantly enhanced sustainable forest management within local communities. The project, led by local communities, funded initiatives aimed at reforesting, promoting natural forest regeneration, agroforestry and climate smart agriculture, the use and conservation of local medicinal plants, and sustainable landscape management practices, directly benefiting 5,700 people (far exceeding the target of 1,100 beneficiaries), 63 percent of whom were women. As a result, the project has successfully contributed to reduced pressures on 15 gazetted forests, Tai National Park, and the Nzi Nature Reserve, which cover a total area of more than 1.3 million hectares.
• IFC has published first-to-the-market Biodiversity Finance Reference Guide, to bring clarity and confidence to investors and financiers on what constitutes biodiversity and nature finance, as well as the Biodiversity Finance Metrics for Impact Reporting, to promote transparency and credibility of measuring the impact of investments in this area.

Cities

• A World Bank program in Mozambique created a 17-hectare urban green park to restore stormwater drainage, enhancing flood protection for 50,000 people, while providing livelihood and recreational opportunities.
• The City Climate Finance Gap Fund (Gap Fund) was launched in 2020 to support cities turn their climate ambitions into projects ready to be financed and implemented. The Gap Fund focuses its support on the critical early stage of project identification and preparation.
• The City Resilience Program (CRP)  helps cities become more resilient to the adverse impacts of disasters and climate change. The program supports risk-informed urban planning, identifies investments that enhance city resilience, and facilitates access to financing to ensure that those investments materialize. To date, the program has worked with 253 cities in over 80 countries around the world.  
• Urban resilience goes hand in hand with environmental sustainability. The World Bank’s Global Platform for Sustainable Cities is a partnership and knowledge platform to promote integrated solutions and cutting-edge knowledge for cities seeking to improve their resilience and overall urban sustainability. The Platform includes 28 cities across 11 countries that have received $151 million from the Global Environment Facility and leveraged $2.4 billion in project co-financing. 

Last Updated: Apr 30, 2025