Social Dimensions of Climate Change

Addressing weather events and disasters with a lens to reach the poor and most vulnerable is one of the smartest strategies for countries to eliminate extreme poverty, boost shared prosperity, and build resilience needed for sustainable development. Extreme weather events are deeply intertwined with global patterns of inequality and poverty. As the impacts of climate change mount, local impacts are clear and the challenge is substantial: millions of vulnerable people face disproportionate challenges in terms of loss of jobs; physical harm; disease; mental health effects; food insecurity; access to water; migration and forced displacement; loss of shelter, assets, and community ties, and other related risks.

1.2 billion people face life-changing risks through exposure to at least one critical climate hazard, such as heatwaves, flooding, hurricanes, and drought.

More than two-thirds of people in low-income countries that were hit by a natural disaster or extreme weather event suffered loss of income (69 percent) or assets (72 percent) as a result.

Yet, less than 17 percent of climate finance reaches local levels.

Female-headed households, children, persons with disabilities, Indigenous Peoples, migrant workers, and other marginalized groups have fewer resources to cope with climate shocks threatening their wellbeing. Smart investments in locally and community-led resilience building, and equitable climate finance are critical for setting vulnerable populations on a path to greater prosperity and helping countries compete in a rapidly changing global economy. Experience shows that engaging communities as partners—drawing on scientific, Indigenous, and local knowledge—can strengthen climate resilience and deliver locally relevant and effective development outcomes.

The World Bank's work to address the social dimensions of climate change focuses on poverty reduction and the underlying causes of socio-economic vulnerability. Climate impacts hit the poorest communities hardest, which is why the Bank adopts a whole-of-society approach—working with national and local governments, civil society, grassroots communities, and other partners to strengthen resilience where it matters most. Transitioning to low-carbon, climate-resilient development requires acting urgently to meet today's needs while pursuing long-term decarbonization. This means embedding climate action within the social realities communities face now, ensuring equity for all and listening to those most affected.

The World Bank supports these objectives through three interconnected areas of activity:

Channeling resources and decision-making power to support locally led climate action: The World Bank works with communities as equal partners, building on their experience and expertise in managing risk and adapting to climate change. This approach draws on community and local development (CLD) principles that emphasize citizen control over development investment planning, decision-making, and implementation. For decades, CLD has effectively supported basic service delivery, livelihoods and jobs, social services, and poverty reduction at large scale. CLD programs use resources more efficiently and demonstrate greater transparency and accountability when they empower local stakeholders to lead investment decisions.

This proven mechanism is now being adapted to deliver local climate resilience support at the necessary scale, with core principles of citizen control and social inclusion integrated into innovative approaches to decentralized climate finance. Key activities include:

Devolving climate finance and decision-making power to empower communities to drive climate agendas aligned with their development goals

Linking community-led action to national climate priorities and strategies

Strengthening monitoring and evaluation of resilience and adaptation

Promoting financial inclusion for better and more resilient jobs

Understanding the social impacts of green transitions: While there is global recognition of the need to decarbonize economies, scaling down carbon-intensive industries will generate widespread impacts on dependent communities. Ensuring a just transition means putting affected communities at the center of the process and promoting dialogue at all levels—from planning through implementation.  This involves:

Analyzing what "just transition" means across different sectors and contexts, ensuring affected communities participate in decision-making

Identifying and addressing distributional impacts of decarbonization approaches, including understanding who stands to gain or lose from transition policies and the broader social, community, and cultural implications

Supporting new economic and livelihood opportunities for those negatively impacted, including direct, indirect, and induced employment effects

Promoting knowledge exchange between communities, regions, and countries as they navigate the green transition

Facilitating inclusive climate governance: Effective climate action requires engaging all citizens in shaping their community's future. The World Bank supports:

Community and citizen engagement in climate decision-making through national dialogues, citizen feedback mechanisms, and improved governance structures

Strengthened institutions that enable inclusion and empowerment

Building government and partner awareness on addressing the social dimensions of climate change and green growth

Through these strategic areas, the World Bank fosters collaboration across practice areas to empower vulnerable communities, reduce risks from future crises, and bridge local, subnational, and national levels for effective climate action.

• Stockholm Environment Institute
• Global Environment Facility
• Nordic Development Fund