World Bank Seeks Action To Shield Poorer Nations From Climate Shocks

World Bank Seeks Action To Shield Poorer Nations From Climate Shocks

The World Bank has called for urgent, people-centred action to address the dual challenges of poverty and climate change, urging countries to prioritise investments in resilience, adaptation, and low-emission development.

The recommendation was outlined in the bank’s latest report, People in a Changing Climate: From Vulnerability to Action, released on Wednesday.

The report, which summarises findings from the first three years of Country Climate and Development Reports, underscored the importance of placing people at the heart of climate policy.

Covering 72 countries and economies, the bank revealed that while climate change threatens all nations, poorer populations are at the highest risk of long-term, irreversible harm.

“People are both the most vulnerable to climate change and the most essential in driving solutions,” the report stated.

The findings highlight that lower-income countries face labor productivity losses of around 6 per cent by 2050 due to climate impacts, compared to only 0.2 per cent in higher-income nations.

The global bank emphasised that investments in education, reskilling, health, labor markets, and social protection are crucial for helping people adapt to climate challenges.

“Placing people at the center of climate-development policies enhances policy effectiveness and fosters more inclusive growth,” the report noted.

The CCDRs also stress the importance of resilient infrastructure systems—such as power, water, transport, and digital networks—for both well-being and economic productivity.

The report identified significant benefits in improving access to electricity, expanding renewable energy, and enhancing public transit systems.

“Every dollar invested in resilient infrastructure can yield benefits worth twice the investment,” the World Bank highlighted.

The report pointed to rapid urbanization as an opportunity to create resilient, low-emission cities that can drive economic growth, but warned that delaying action could lock countries into unsustainable development pathways.

The report also noted that poorer nations face greater vulnerability due to limited adaptation capacity.
For every $1,000 increase in GDP per capita, climate-induced GDP losses in 2050 could be reduced by 0.5 to 0.7 percentage points.

However, small island nations remain particularly exposed due to their geographic and economic constraints.

Reducing greenhouse gas emissions remains a priority for all countries, especially high-income nations and major emitters.

The report estimated that CCDR countries need additional investments averaging 1.4 per cent of GDP annually, with low-income countries requiring over 5 per cent. While private investments can help, public financing, increased efficiency, and international support are essential.

The World Bank highlighted that CCDRs are a diagnostic tool to align development and climate goals.

A companion report, From Knowledge to Action, demonstrated how early CCDRs have informed national strategies, IMF programs, and World Bank operations.

“This review shows that by placing people at the core of climate policies and engaging communities from the start, countries can achieve a green transition that improves lives and promotes inclusive growth,” the report concluded.