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At COP28, the Multilateral Development Banks (MDBs) agreed to developing a common approach for measuring climate results to complement tracking of climate finance. The MDBs have made significant progress in scaling-up climate finance commitments. However, there is recognition that climate finance neither measures the results nor the outcomes of climate actions.
This Note, MDB Common Approach to Measuring Climate Results, presents the first common structure to measuring climate results, a framework to define, measure, and link global progress on climate mitigation and adaptation with MDB results. This is a significant step which aims to provide stakeholders with a clearer view of the climate results of the MDBs related to the goals of the Paris Agreement.
The MDB Common Approach is aligned with the World Bank’s New Corporate Score Card. It consists of three levels: i) global and country context; ii) results from operations; and iii) institutional efforts.
Level 1. Global and country context: This level aims to take stock of the latest climate science and set the context for urgent action on global delivery of the Paris Agreement. The MDB Common Approach is aligned with the World Bank’s New Scorecard, referencing climate mitigation and adaptation trends through global greenhouse gas emissions and vulnerability of people to climate risks.
Level 2. Results from operations: This level aims to reflect results of MDB contributions to support public and private sector client progress towards equitable, low-carbon and climate-resilient development. On mitigation, tracking emissions from our financing operations, and on adaptation, where possible, tracking beneficiaries of our interventions that enhance resilience which is also aligned with the World Bank’s New Scorecard. This level also includes a set of indicative sector-level indicators that together will form a toolkit which provides guidance for operational teams. These indicators will be further developed with relevant technical and sector experts.
Level 3. Institutional efforts: This level tracks the delivery of MDB inputs, both finance and technical assistance, that the MDBs deploy to achieve operational results. Institutional efforts are commonly tracked and reported through each MDB’s own internal process and report systems.
The Common Approach is not a new reporting mechanism but rather helps to deepen collaboration across countries, sectors, MDBs, the private sector, and other stakeholders. The MDBs will continue to work on and refine the common approach, including further developing the set of common indicators and will report progress by COP29.
An enhanced approach to climate results measurement will enable the development community to augment its impact. It will support more informed risks and boost incentives to draw in more finance from all sources to make the planet more livable for people around the world. It can also support countries to measure their own efforts and results more effectively, making it easier for them to identify and address policy bottlenecks and track private sector investment opportunities.