The World Bank has issued a call for urgent, people-focused strategies to combat the twin crises of poverty and climate change, highlighting the critical need for investments in resilience, adaptation, and sustainable development.
In its latest report, People in a Changing Climate: From Vulnerability to Action, released on Wednesday, the Bank emphasized that climate policies must prioritize vulnerable populations while fostering inclusive growth. The findings, derived from three years of Country Climate and Development Reports (CCDRs) covering 72 nations, underline the disproportionate burden faced by poorer countries in combating climate shocks.
The report revealed that low-income nations could see labor productivity decline by 6% by 2050 due to climate impacts, compared to just 0.2% in higher-income countries. It called for investments in education, health, reskilling, labor markets, and social protection to help communities adapt to these challenges effectively.
“People are both the most vulnerable to climate change and the most essential in driving solutions,” the report noted, emphasizing the dual role of individuals as both recipients and enablers of change.
The World Bank highlighted the critical need for resilient infrastructure systems, including power, water, transport, and digital networks. It stressed that every dollar invested in resilient infrastructure could yield double the benefits, making it a vital area for economic and social development.
The report also pointed to urbanization as an opportunity to create sustainable, low-emission cities that drive economic growth. However, it warned that delays in adopting climate-smart policies could lock countries into unsustainable pathways.
The Bank underscored the heightened vulnerability of poorer nations due to limited adaptation capacity. It projected that 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. Small island nations remain particularly exposed due to geographic and economic constraints, requiring tailored interventions.
The report called for additional investments averaging 1.4% of GDP annually in CCDR countries, with low-income nations needing over 5% of GDP to build resilience. While private sector participation is crucial, the Bank emphasized the importance of public financing, international support, and policy efficiency.
The Bank reiterated the shared responsibility of all nations to reduce greenhouse gas emissions, with high-income countries and major emitters bearing a greater burden. It highlighted the significant role CCDRs play in aligning climate and development goals, with early findings already shaping national strategies and international financial programs.
“This review demonstrates that placing people at the core of climate policies can enable a green transition that improves lives and drives inclusive growth,” the report concluded, urging nations to act decisively in safeguarding their populations and economies against the escalating threats of climate change.
