World Bank report urges faster development to tackle climate change risks

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Akihiko (Aki) Nishio Vice President, Development Finance | World Bank Group

1.2 billion people worldwide are currently at high risk due to climate change, according to a recent report by the World Bank Group. The report emphasizes that faster development and sustainable economic growth can mitigate the adverse effects of climate hazards such as heatwaves, flooding, hurricanes, and drought.

Titled “Rising to the Challenge: Success Stories and Strategies for Achieving Climate Adaptation and Resilience,” the report argues for improved development strategies and targeted adaptation interventions to better protect communities. It suggests that economic growth is closely linked with building resilience against climate change. Specifically, it estimates that a 10% increase in GDP per capita could reduce the number of vulnerable individuals by approximately 100 million.

The report stresses the importance of tailoring policies to fit each country's unique circumstances. Wealthier nations should focus on upgrading existing infrastructure, while lower-income countries have an opportunity to develop sustainably from the start.

Axel van Trotsenburg, Senior Managing Director at the World Bank, stated: “The sobering reality is that every country can be hit by climate change, but this challenge is gravest for the world’s poorest countries.” He added that the World Bank Group is intensifying efforts across various sectors including food and agriculture, water resources, ecosystems and biodiversity, infrastructure development, social safety nets, poverty eradication, and livelihoods.

The World Bank Group's climate initiatives aim to protect more communities from climate hazards by supporting early warning systems development, improving insurance access for at-risk communities and businesses, and establishing healthcare systems capable of rapid crisis response. For accountability purposes, progress on these interventions will be tracked using a new Corporate Scorecard.

Furthermore, through its Country Climate and Development Reports covering over 60 nations so far, the World Bank Group assists countries in identifying key climate risks and protective solutions to safeguard development achievements.

The adaptation report highlights successful examples in both public and private sectors that demonstrate significant progress:

- In India’s Ahmedabad Heat Action Plan has prevented over 2,000 heat-related deaths within two years by combining an early warning system with communication campaigns.

- Niger’s adaptive social protection system delivered cash during droughts improving food security by 8% and well-being by 18%.

- Bangladesh has reduced crop losses from bad weather by 75% through improved weather forecasts used by farmers.

- From Brazil to Albania private utilities are incorporating climate risks into business decisions investing in resilience using nature-based solutions.