What Counts as Climate? Preliminary Evidence from the World Bank’s Climate Portfolio

Dear Reader,

We wanted to let you know about our new study, published this week by the Center for Global Development and the Breakthrough Institute.

Climate finance at the World Bank is a hot topic, with major shareholders pushing for reforms that would have the Bank substantially expand its climate lending. But so far the discussion has focused much more on how much money the Bank can lend, rather than where that money is going.

With our colleague Guido Núñez-Mujica, we examined 2,554 projects between 2000 and 2022 that the World Bank includes in its climate portfolio, including 2,047 projects tagged specifically as climate mitigation. We found that the Bank has a climate portfolio skewed towards mitigation, both in middle-income countries and in energy-poor, low-income countries. 

We also found that hundreds of projects tagged climate—many in poorer countries—appear to have little to do with either climate change mitigation or adaptation, from teacher training to improving healthcare access for girls. $15 billion worth of the Bank’s climate finance portfolio is attributed to projects where climate accounts for less than 20 percent of the project’s value, and there typically is no climate rationale offered to support the climate tags in these cases. Further, most of the mitigation projects tagged as 100 percent climate lack estimates of greenhouse gas (GHG) emissions reductions, and there is no standardized reporting on GHG estimates across the portfolio.

What does this mean? It’s clear that reporting on climate programming at the Bank is still in its infancy. With immense pressure on the institution to scale up climate lending, it’s important that the Bank’s shareholders and climate advocates apply scrutiny to how the World Bank is spending its climate money, not just how it is raising it.

You can read the full paper here, and a shorter analysis of what we found here.

In Ghana, Sustainable Cocoa-Forest Practices Yield Carbon Credits

STORY HIGHLIGHTSCocoaRodney-QuarcooWorld-Bank

  • Cocoa farmers in Ghana are improving yields and mitigating climate change by adopting climate-smart cocoa practices while curbing deforestation.
  • Ghana has earned $4.8 million for reducing nearly 1 million tons of carbon emissions caused by deforestation and forest degradation—with up to $45 million expected by the end of 2024.
  • Ghana and other countries are generating high-quality, high-integrity jurisdictional carbon credits to realize their climate goals and gain access to international carbon markets.

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The role of ethical leadership in curbing corruption

As much as researchers try to isolate the factors of success in controlling corruption,blog-wbginstitutionsculture-hero-0623.jpg whether it be at a national scale or that of a particular organization, there is always a residual unexplained element. It may be attributed to culture, systems, or other factors, but one catalytic ingredient is almost always leadership.

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We can’t have a world without poverty in a world with plastic pollution

When future generations share the story of plastic pollution, it will include graphic images of plastics_blog_1140x500shutterstock_2176244901.jpgturtles choking on plastic debris, zooming out to show beaches and communities laden with trash, and panning to medical reports showing microplastic in the average person’s bloodstream.  This is a story that started as an environmental crisis, and quickly became an economic and health crisis. And it’s a story that intersects with the triple planetary crises we are grappling with today: biodiversity, climate, and pollution. We are on the brink of writing the next important chapter in this story.

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Climate Change in Africa

How the private sector is rising to meet the challenges of a global crisis

Across Africa, the private sector is rising to the pressing challenges posed by the bird-s-eye-view-of-the-kahone-solar-plant-994x604global climate crisis.

From housing and energy to transport and agriculture, businesses on the continent are delivering strategies, technologies, and projects that are reducing the human impact on the environment, while supporting jobs, reducing poverty, and furthering development.

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Investments in Africa

These are certainly challenging times. And in these challenging times, in Africa, the private unnamedsector is doing interesting things.

The nine stories in this second edition of IFC Insights Africa, published for the 2023 Africa CEO Forum in Abidjan, Côte d’Ivoire, showcase the innovative ways African businesses—both large and small—are addressing some of the continent’s most pressing challenges, and improving lives and creating jobs while doing it.

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Africa will remain poor unless it uses more energy

Published by the Economist

Greenhouse-gas emissions south of the Sahara are tiny

A window seat in a helicopter flying south-west from Windhoek, Namibia’s capital, offers an otherworldly diorama. The landscape shifts from earthly desert to Mars-red dunes, then to moonscape as the chopper nears Luderitz. In the early 1900s this tiny port was the hub for a diamond boom that brought the art-nouveau mansions that perch on the town’s slopes. More than a century on, Namibia hopes that the area will again bring riches, this time from sun, wind and land, by hosting one of Africa’s largest renewable-energy projects.

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A transformed fertilizer market is needed in response to the food crisis in Africa

One clear message from my dozen meetings last week with African leaders who were in Washington for a summit with the U.S. government was that fertilizer prices are out of reach for most farmers, putting the crop cycle and rural stability at risk. Across 45 countries globally, 205 million people are in acute food insecurity, meaning they have so little access to food that their lives and livelihoods are in danger.  One key obstacle to food production in many developing countries is access to fertilizers, which enrich the soil with the nutrients needed for healthy crops. Sufficient primary raw materials – nitrogen, potash, phosphate, and natural gas – and fertilizer production facilities are essential to farmers across the developing world, but high fertilizer prices are blocking the 2023 and 2024 crop cycle.

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Journey into the Congo Basin – The Lungs of Africa and Beating Heart of the World

STORY HIGHLIGHTS congo-bassin-v3-780x439

  • Spanning over six countries, the Congo Basin is the world’s largest carbon sink.
  • In the run-up to the Africa COP-27, Central African voices are calling for adaptation. Listen to voices of local climate champions in an immersive VR journey into the Congo Basin.
  • Together with governments, regional initiatives such as Blue Fund for the Congo Basin, and partners such as the Central African Forest Initiative, Forest Carbon Partnership Facility, Forest Investment Program, Global Environment Facility, PROGREEN, and REDD+, the World Bank is committed to supporting forest-smart development in the Congo Basin, putting people at the center.

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Empower HER to address food and nutrition security in Africa

Food and nutrition insecurity is escalating across the world.  Food price inflation exceeds 20180510-guinea-tremeau-230_oct_15_2022_1140x500.jpgoverall inflation in most countries, and at least 123 million people in Sub-Saharan Africa (SSA) will be in food crisis by the end of the year. This is partly due to lack of investments in domestic food production, exacerbated by climatic shocks, the COVID-19 crisis, and impacts of the war in Ukraine.

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