An investment of 1.4% of GDP per year would reduce emissions by 70% by 2050 and strengthen the resilience of countries

According to a new publication from the World Bank Group, an investment of 1.4 percent of gross domestic product (GDP) per year on average would reduce emissions in developing countries by 70 percent by to 2050 and build their resilience.

Climate and Development: An Agenda for Action compiles and analyzes the results of the various national climate and development reports (a) produced to date by the World Bank Group and covering more than 20 countries, responsible for 34% of global greenhouse gas (GHG) emissions. It shows that investment needs are significantly higher in low-income countries, which are more vulnerable to climate risk, and that they often exceed 5% of GDP. These countries will need more concessional finance and grants to manage the effects of climate change and embark on a low-carbon development path.

The report benefits from the extensive information and data collected by the various national reports and draws lessons for the integration of climate and development objectives. It finds that this approach to climate action can help countries manage the negative consequences of climate change, while generating positive effects on GDP and economic growth, and achieving critical development results. , such as poverty reduction. Success requires the adoption of effective reforms, better allocation of public resources, greater mobilization of private capital and significant financial support from the international community.

“Climate goals and development goals must go hand in hand. Climate action is an essential global public good, which requires significant new financing from the global community and mechanisms to encourage capital flows,” said David Malpass, President of the World Bank Group. “Achieving this requires well-prioritized and sequenced climate actions, strong private sector engagement, substantial international support and a just transition. »

According to the report, while all countries need to step up their climate action, high-income countries, which bear a greater responsibility in terms of emissions, must lead the way by decarbonizing deeper and faster and by strengthening their financial support to low-income countries. Today’s and tomorrow’s large emitters in the developing world also have a key role to play in ensuring the world achieves the goals of the Paris Agreement. In addition, the report looks at the technologies and innovations needed to produce lower-carbon electricity, steel, cement and manufactured goods, as well as to create green supply chains. and performance for a sustainable future.

The National Climate and Development Reports combine the best models, data and tools available and aim to provide public officials with immediate and actionable recommendations to guide their climate and development decisions today. They form a key part of the World Bank Group’s Climate Change Action Plan, which sets out how the Group will support climate action in developing countries.

According to the report, countries must prioritize and sequence the necessary investments and reforms, with the key to multiple benefits. Reducing emissions can also have immediate development effects: reduced vulnerability to fossil fuel price volatility, improved trade balance and energy security, better air quality and positive health effects. Early action can also prevent countries from locking themselves into emissions-heavy infrastructure and systems that will be costly, if not impossible, to transform in the future.

The report covers the following countries: Argentina, Bangladesh, Burkina Faso, Cameroon, China, Arab Republic of Egypt, Ghana, Iraq, Jordan, Kazakhstan, Malawi, Mali, Morocco, Mauritania, Nepal, Niger, Pakistan, South Africa, Peru, Philippines, Rwanda, Chad, Türkiye and Viet Nam. Its findings will feed into the World Bank Group’s work with its public and private sector clients and inform the development of its engagement frameworks and country portfolios.

Source: World Bank