The World Bank Group has announced an ‘extension’ of its Climate Change Action Plan (CCAP), which will see it shift away from financing targets towards measuring development outcomes.
As part of this transition, it plans to retire its target of directing 45% of annual lending towards projects with climate co-benefits, as well as the 35% under the CCAP to generate climate-related benefits.
It said that the next phase of its climate strategy will be driven by ‘client ambition’ and countries’ international commitments, with greater emphasis placed on the real-world impact of projects.
‘Client driven’
As the bank said in a statement, its work on climate ‘is and will remain firmly client driven, supporting them in delivering on their own ambitions as set out in their national plans and Nationally Determined Contributions (NDCs). Our framework has served its purpose well, embedding smart development in all we do in response to client needs and priorities.’
As it noted, it will continue to track and report across its two scorecard indicators on net greenhouse gas emissions and beneficiaries with enhanced resilience to climate risks, and will continue to refine its methodology for measuring climate outcomes and engage with other multilateral development banks (MDBs).
‘We will continue to report to the board on progress, including on climate co-benefits, and to contribute to our related joint MDB efforts,’ the World Bank said. ‘Reporting will apply, as is the case today, for all projects, as well as quarterly and annually for the portfolio, through existing channels. We will explore and discuss ways to better structure our engagement on adaptation, nature and pollution.’
The policy shift reflects the evolving priorities of World Bank president Ajay Banga, who has recently framed the institution’s approach around ‘smart development’ – supporting economic growth, job creation and resilience – however some countries, most notably France, have urged the institution to retain its climate finance target. Read more here.
