In recent years, climate change has emerged as a significant development issue: two key recent reports – the Stern Report on the Economics of Climate Change and the Intergovernmental Panel on Climate Change (IPCC): Fourth Assessment Report – underscore the need for quick measures to slow down climate change. The impact of climate change is expected to be even more severe for developing countries, putting the achievement of the Millennium Development Goals at risk, and requiring an appropriate response from the international aid community and in particular IDA.

IDA’s response to the challenge of climate change has been developed as part of the Bank’s Clean Energy Investment Framework (CEIF). Its main elements are:
- improving access to clean energy
- supporting the transition to a low carbon development trajectory
- supporting adaptation to climate change.

Over the past two decades, IDA’s aggregate commitments specifically targeting the environment have been approximately US$9 billion. In addition, IDA has leveraged significant amount of resources through trust funds and funding. Over the last five years alone, environment-related trust fund disbursements exceeded US$2.4 billion. In addition, IDA has partnered with the Global Environment Facility (GEF) to implement a number of environmental projects.

IDA is able to link global issues with country strategies and to invest in global public goods at the country level. But IDA will also need to intensify its focus on climate change, both in terms of policy and financial support. A strong replenishment of IDA15, coupled with other additional concessional financing and partnerships, will be essential for the CEIF to succeed and for scaling up clean energy initiatives.

Learn more: IDA at Work: Environment [PDF]

Providing cash transfers to people affected by the floods that have devastated parts of Bangladesh, India, and Nepal is one of the most effective ways to help rebuilding lives and stimulate local markets, World Bank South Asia experts said today.

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