File Photo: The site of a natural gaz field in Lacq, western France, on October 9, 2013.
While low-carbon pathways can bring economic gains, they require “improved and sustained access to finance and mobilization of private capital” to meet countries’ needs, the bank said in a new report.
The publication comes days before nearly 200 countries gather for the COP27 climate summit in Egypt when the urgent need for funds to help vulnerable nations adapt will be on the table.
“Climate action is a key global public good, requiring significant new financing from the global community and mechanisms for inflows,” said World Bank President David Malpass said in a statement.
Investing an annual average of 1.4 percent of the gross domestic product of developing countries for adaptation and mitigation could help to slash emissions by as much as 70 percent by 2050, according to the report.
However, investment needs tend to be greater in lower-income countries, with some requiring up to five percent of GDP, even though the group has contributed the least to global warming.
They also have more limited access to financing, which is why rich countries need to play a role, the report said.
The efforts will require goverments to implement policy reforms, reallocate scarce public resources and mobilize private capital, on top of greater financial support from the international community.
The bank’s assessment covers more than 20 countries that account for over a third of the world’s greenhouse gas emissions, including Argentina and China, along with Niger, Chad and Egypt.
The World Bank said wealthy nations have yet to honor a decade-old pledge to boost climate financing for developing nations to $100 billion a year, even as the UN’s climate advisory panel estimates annual adaptation costs could hit $1 trillion by 2050 if warming continues apace.