The current El Niño is highlighting the vulnerability of economies to climate shocks, with droughts and extreme rainfall threatening food production, energy supplies, infrastructure and livelihoods, the World Bank says.
The Bank says countries must invest in climate resilience as part of their development strategies to protect livelihoods, create jobs and sustain economic growth.
In a new assessment of lessons from its Country Climate and Development Reports (CCDRs), the World Bank says climate shocks can quickly become major development challenges, with impacts varying across countries and regions.
“Drought can wither crops and drain the reservoirs that power homes and factories. Heavy rainfall can wash away schools, roads, and other infrastructure,” the Bank said.
The CCDR programme now covers 100 economies, following the addition of São Tomé and Príncipe, providing countries with roadmaps for resilient, low-carbon growth aligned with national development priorities.
The reports examine how climate action can support wider development objectives, including employment, energy security, infrastructure, healthcare and economic stability.
The World Bank identified four key lessons from the programme, alongside two priorities for future climate and development planning.
The first is to ensure climate investments respond to national development priorities, including reliable energy, better infrastructure, cleaner air, employment and economic resilience.
It cited Fiji as an example, saying renewable energy and energy efficiency investments could reduce the country’s dependence on expensive imported fuels.
Other examples include off-grid solar power in Niger, low-carbon manufacturing in Morocco and flood management in Thailand to protect its position in global manufacturing supply chains.
The Bank also stressed the need to prepare workers and businesses for changing labour markets as climate change, digitalisation, artificial intelligence and migration reshape employment opportunities.
In Tajikistan, an estimated 65,000 temporary workers will be needed for rooftop solar installations, creating a need for reskilling and training as demand changes.
In Brazil, 88 percent of formal job transitions occur within the same state, highlighting the importance of regional development strategies to support workers in areas with high concentrations of vulnerable jobs.
Another key lesson is the need to link climate investment decisions with national economic policies, including energy, transport, agriculture and water management.
The Bank said climate priorities must be integrated into government planning, budgeting and financial decision-making rather than remaining within individual ministries.
It cited Côte d’Ivoire, where the Council of Ministers endorsed its CCDR as a government-owned document and tasked the Prime Minister’s office with taking forward its recommendations.
The reports are also helping translate climate priorities into funded projects, with 42 percent of identified opportunities currently being addressed through World Bank Group financing.
The Bank said successful implementation depended on selecting projects based on their development benefits, feasibility and urgency, with strong national leadership.
It highligted the expansion of solar power in Pakistan and electric mobility in Nepal as examples of initiatives that advanced because they aligned with national priorities.
Looking ahead, the World Bank identified greater private-sector involvement and recognition of natural assets as two priorities for future climate assessments.
It said businesses and financial institutions could help identify investment barriers, improve project design and mobilise private finance for climate-related development.
The Bank also plans to strengthen the integration of natural capital, ecosystem services and nature-related financial risks into economic planning.
Reports covering Cambodia, Peru, Ethiopia and Fiji demonstrate how natural resources support employment, economic growth and resilience.
The World Bank said its approach would continue to be guided by national demand, with the institution providing development expertise, financing and partnerships to help countries turn climate priorities into practical investments.
The Bank said climate-smart development must deliver economic benefits while protecting communities and infrastructure from increasingly severe climate shocks.
