The Multilateral Development Banks (MDBs) have unveiled a new framework to measure climate results, fulfilling a commitment made at COP28. This initiative marks the first time a joint approach has been presented to assess MDB results in terms of climate impact.
During the 2024 World Bank Group Spring Meetings, the MDBs introduced the Common Approach to Measuring Climate Results. This framework aims to define, measure, and link global progress on climate mitigation and adaptation with MDB outcomes. It is structured into three levels: global and country context, results from operations, and institutional efforts. The approach reflects a bottom-up methodology that connects MDB finance and resources to operational results and broader progress.
The Common Approach is designed to shift MDB focus from financial deliverables to tangible results on the ground. It offers stakeholders clearer insights into MDB climate achievements and enhances consistency in measuring these outcomes across different banks. This approach complements existing frameworks within individual MDBs and aligns with the World Bank Group Corporate Scorecard.
With this framework, MDBs can better quantify beneficiaries of projects aimed at building resilience, such as those involved in climate-resilient food systems. They will also be able to measure greenhouse gas emission reductions supported by their initiatives and track advancements in renewable energy capacity and sustainable practices in terrestrial and aquatic areas.
Furthermore, the Common Approach is expected to support more informed risk assessments and encourage increased financing from various sources. It will assist countries and clients in effectively measuring their own efforts, identifying policy bottlenecks, and tracking private sector investment opportunities.
Looking ahead, an update to the Common Approach will be released at COP29. This update will include common indicators for tracking climate impact related to adaptation, resilience, mitigation, and transition support for countries and clients. Each indicator will have a defined metric for measurement along with a summary of its scope.
Post-COP29, MDBs plan to implement these indicators within their mandates while refining them through ongoing collaboration and stakeholder dialogue. This process will also consider advances in technical areas relevant to climate reporting standards.