WASHINGTON / Investing an average of 1.4% of GDP annually could reduce emissions in developing countries by as much as 70% by 2050 and boost resilience, according to a new report from the World Bank Group.
The
analysis, Climate and Development: An
Agenda for Action, compiles and harmonizes results from the Bank Group’s
Country
Climate and Development Reports,
covering over 20 countries that account for 34% of the world’s greenhouse gas (GHG)
emissions. It shows that investment needs are markedly higher in lower-income
countries which are more vulnerable to climate risk, often exceeding 5% of GDP.
These countries will need increased amounts of concessional finance and grants
to manage climate change impacts and develop along a low-carbon path.
“Achieving climate and development objectives
must go hand in hand. Climate action is a key global public good, requiring significant
new financing from the global community and mechanisms for inflows,” said World Bank Group President David Malpass.
“Well prioritized and sequenced
climate actions, strong participation of the private sector, substantial
international support and a just transition are critical components for impact.”
The
report also notes that while all countries have to increase their climate
action, high income countries with their greater responsibility for emissions need
to lead the way with deeper and more rapid decarbonization, as well as
increased financial support to lower income countries. Major current and future
emitters in the developing world also have a key role to play for the world to
achieve the goals of the Paris Agreement. The report also examines the
technologies and innovations needed for lower carbon intensity production of
electricity, steel, cement, and manufacturing, and how the world will build
green and efficient supply chains for a sustainable future.
Country
Climate and Development Reports combine the best available data, models, and
tools and aim to provide policymakers with immediate and actionable
recommendations to guide climate and development decisions today. They are a
core element of the World Bank Group’s Climate
Change Action Plan, which outlines how the WBG will support climate
action in developing countries.
Countries
need to prioritize and sequence key investments and policy reforms, according
to the report. These will deliver multiple benefits. And emission reductions
can deliver immediate development outcomes such as reduced vulnerability to
fossil fuel price volatility, improved trade balances and enhanced energy security,
and better air quality and related positive health impacts. Early action can
also avoid locking countries into high emitting infrastructure and systems, which
will be costly or even impossible to transform in the future.
This
analysis covers over 20 countries including: Argentina, Bangladesh, Burkina
Faso, Cameroon, Chad, China, Arab Republic of Egypt, Ghana, Iraq, Jordan,
Kazakhstan, Malawi, Mali, Mauritania, Morocco, Nepal, Niger, Pakistan, Peru,
Philippines, Rwanda, South Africa, Türkiye, and Vietnam. The findings from these
analyses will inform Bank Group engagements with public and private sector
clients and will feed into the Bank Group’s own country engagement frameworks
and operational portfolio.