Low- and middle-income countries can transition to low-carbon, resilient growth pathways if key conditions are met with international support the World Bank Group has said.
According to a new report from the World Bank Group investing an average of 1.4 per cent of GDP annually could reduce emissions in developing countries by as much as 70 per cent by 2050 and boost resilience.
The Bank’s analysis, Titled Climate and Development: An Agenda for Action, compiles and harmonises results from the Bank Group’s Country Climate and Development Reports, covering over 20 countries that account for 34 per cent of the world’s greenhouse gas (GHG) emissions. It shows that investment needs are markedly higher in lower-income countries which are more vulnerable to climate risk, often exceeding five per cent of GDP. These countries will need increased amounts of concessional finance and grants to manage climate change impacts and develop along a low-carbon path.
The report draws from the richness of the individual country reports and highlights lessons for countries on integrating climate and development objectives. It finds that this approach to climate action can help them manage the negative impacts of climate change, while generating positive impacts on GDP and economic growth, and delivering critical development outcomes such as reducing poverty.
