The World Bank has called for urgent, people-centred action to address the intertwined challenges of poverty and climate change.
The institution stressed the need for countries to prioritise investments in resilience, adaptation, and low-emission development to mitigate the impacts of these crises.
This recommendation was outlined in the bank’s latest report, People in a Changing Climate: From Vulnerability to Action, released on Wednesday, December 18.
The report summarises the findings from the first three years of Country Climate and Development Reports (CCDRs), focusing on the importance of placing people at the heart of climate policy.
The World Bank’s findings cover 72 countries and economies and highlight that while climate change poses a threat to all nations, it is poorer populations that are most at risk of long-term, irreversible damage.
According to the report, lower-income countries could face labour productivity losses of up to 6 per cent by 2050 due to the impacts of climate change, compared to just 0.2 per cent in higher-income nations.
“People are both the most vulnerable to climate change and the most essential in driving solutions,” the report states, underscoring the crucial role that individuals and communities must play in mitigating and adapting to climate impacts.
The World Bank advocates for increased investments in education, health, reskilling, labour markets, and social protection to help vulnerable populations adapt to the changing climate.
These investments, the bank argues, will be key in enhancing the resilience of people, communities, and economies. “Placing people at the center of climate-development policies enhances policy effectiveness and fosters more inclusive growth,” the report highlights.
The CCDRs also stress the importance of developing resilient infrastructure systems—including power, water, transport, and digital networks—which are essential for both well-being and economic productivity.
Notably, the report identifies significant benefits from improving access to electricity, expanding renewable energy sources, and enhancing public transportation systems.
The bank asserts that every dollar invested in resilient infrastructure could yield benefits worth twice the original investment.
The World Bank also pointed to rapid urbanisation as an opportunity to build resilient, low-emission cities capable of driving economic growth. However, the report warned that delaying action on this front could lock countries into unsustainable development pathways.
Despite the urgency for climate action, the report noted that poorer nations are especially vulnerable due to limited capacity for adaptation. 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.
In terms of emission reductions, the World Bank maintains that cutting greenhouse gas emissions remains a global priority, particularly for high-income nations and major emitters.
The report estimated that countries covered by the CCDRs will need additional investments averaging 1.4 per cent of GDP annually, with low-income nations requiring more than 5 per cent. While private investments can play a role, the report emphasises the need for public financing, greater efficiency, and international support.
The CCDRs are presented as a diagnostic tool to align national development and climate goals.
A companion report, From Knowledge to Action, demonstrated how early CCDRs have informed national strategies, including IMF programmes and World Bank operations.
The World Bank concluded that by placing people at the core of climate policies and engaging communities from the outset, countries can achieve a green transition that improves lives, promotes inclusive growth, and helps build resilience against climate impacts.
