This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.
| Paris alignment | Reasoning |
|---|---|
| Some progress | New Country Climate Development Reports will inform Country Partnership Frameworks. There is potential for decarbonisation pathway development and NDC updates. |
Explanation
As part of the Climate Change Action Plan 2021-2025, the WBG has launched a diagnostic tool called ‘Country Climate and Development Reports (CCDRs). Country Climate and Development Reports (CCDRs) analyse the impact of climate change and decarbonisation on development prospects of a country and formulate specific investment priorities. Additionally, these reports are also aimed at supporting countries in the update process and implementation of Nationally Determined Contributions (NDCs).
The CCDRs prioritise actions by looking at three policy areas.
- Areas of alignment between climate action and short/medium term development objectives.
- Examine ‘the policy and investment trade-offs’ needed to achieve climate objectives. This will include inter-generational trade-offs and carrying out cost benefit analysis of delaying certain actions.
- Explore opportunities to leverage private sector resources and solutions.
CCDRs are a welcome addition to the current set of diagnostic tools at the WBG. These reports will also inform the broader Country Partnership Frameworks, and be complementary to the Systematic Country Diagnostics (SCDs), both detailed below. All World Bank countries will be covered over the next 4 years. As of February 2023, 25 CCDRs have been undertaken. The process with which they will be able to feed into Country Partnership Frameworks and eventually lead to projects will be crucial for the WBG’s ability to significantly contribute to country level climate action. The success of these reports is highly dependent on how well they will be developed with participation of all relevant stakeholders, and whether this will lead to a sense of ownership regarding the proposed priorities and strategies.
E3G is currently drafting a report on Just Energy Transition Partnerships, CCDRs and other World Bank tools and frameworks. The results of this report will be added to the matrix ahead of the World Bank / IMF Spring Meetings in April.
Systematic Country Diagnostic
The Systematic Country Diagnostic (SCD) is an analysis of challenges and opportunities facing the member country regarding the World Bank Group goals of “ending extreme poverty and promoting shared prosperity in a sustainable manner”. Climate considerations were included in these diagnostics but is likely these elements will gradually be replaced by the CCDRs for each country. During the development of CCDRs, the climate related aspects of SCDs will still be important.
The Systematic Country Diagnostic Guidance Note, updated in 2019, states that Systematic Country Diagnostics should “take into account climate change, which may directly influence economic growth, poverty reduction, and longer-term sustainability”. On adaptation, an Systematic Country Diagnostic should analyse “both climate-related risks and policy choices, including the potential benefits of taking early adaptation actions”. On mitigation the “Systematic Country Diagnostic is expected to assess the impacts of the policies that countries indicate through their NDCs… on growth and poverty objectives”.
Country Partnership Framework
All this analysis directly informs the four to six year Country Partnership Framework, which is the central element of the Bank’s country work. The guidance for Country Partnership Frameworks was last updated in 2014, prior to the Paris Agreement. The development of a Country Partnership Framework begins with the country’s development goals. Taking into account other activities in the country and the Bank’s own initiatives, a flexible action plan is set for the duration of the Country Partnership Framework. Climate risk concerns have been integrated into Country Partnership Frameworks since July 2014 when it was agreed that they all would incorporate climate and disaster risk considerations into the analysis of a country’s development challenges. This new requirement was implemented with training for World Bank staff to ensure buy-in and develop staff capacities in using climate risk screening tools. The WBG’s Guidance on Country Engagement, last updated in April 2018, states that “climate change is a special theme for IDA18 [… and] the WBG has committed that all Country Partnership Frameworks in International Development Association countries will incorporate climate and disaster risk considerations into the analysis of the country’s development challenges and priorities and, when the country agrees, in the content of the programs and results framework”. Within this guidance, there is more focus on adaptation than on mitigation.
Once the Country Partnership Framework is finalised and implemented, continuous monitoring and reviewing is carried out. A Performance & Learning Review is a culmination of this work, and is produced every two years. The Performance & Learning Review focuses on progress toward Country Partnership Framework objectives and overall alignment with its goals, and as such informs adjustments that need to be made during the current Country Partnership Framework, updates to the intended results and a potential two-year extension. At the end of a Country Partnership Framework, a Completion & Learning Review is conducted as a means of learning and accountability. The primary goal of the Completion and Learning Review is to take lessons learnt from the Country Partnership Framework and maintain or improve elements that aided the achievement of the results framework. The Completion & Learning Review is then used to inform the development of the country’s next Country Partnership Framework.
Recommendation: We recommend the World Bank Group incorporate NDC revisions into the Country Partnership Framework process and use its country level work to support the revision of all NDCs so that they are aligned with the 1.5C scenario.
In addition to the standalone country work process, the World Bank has recently confirmed that it will be taking part in the 2050 Pathways Platform initiative*. The Bank has launched its own initiative, Outlook 2050, to help integrate 2050 goals throughout Bank operations. Under this new initiative, five-year climate plans will need to be aligned within the long-term plans for the region- or country-mitigation plans. The plan development process includes single and multi-sector analysis and planning to address decarbonisation pathways for 11 key sectors. This process then includes a consultation with the Strategic Country Diagnostic advisory group to ensure Outlook 2050 goals are aligned with individual Country Partnership Frameworks. Because the initiative was only recently launched, it is not clear yet how effective or transformational it is.
Within the IDA19 capital replenishment discussion document, the Bank signalled several areas it would be prioritising with the investments including an increased focus on the resilience of individual projects, especially in coastal and other highly vulnerable regions, as well as systemic resilience which would include work and reform of governance structures and policy programmes. The replenishment document also emphasises the Bank’s shift toward a more holistic approach to policy and investment, which will be achieved by system-wide policy packages, outcome-oriented results monitoring and climate based metrics. It will be interesting to see how this new approach affects the Bank’s current project investment and country work programming.
*Information received directly from World Bank Group staff and comments at Civil Society Policy Forum Panel Event, 18th April 2018. More detail would be welcome on this initiative.
Last Update: February 2023