VERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | G VERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | G A Growing Trend Prosperity Insight Series CLIMATE CHANGE Abdulaziz Almuzaini and Nicholas Menzies click here for direct access. FRAMEWORK LEGISLATION available at http://reproducibility.worldbank.org. A verified reproducibility package for this paper is GOVERNAN | GOVERNANCE | GOVERNANCE | CLIMATE CHANGE GOVERNANCE FRAMEWORK LEGISLATION A Growing Trend | GOVERNANCE Abdulaziz Almuzaini and Nicholas Menzies | GOVERNANCE © 2024 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. 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Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: pubrights@worldbank.org. ABSTRACT Countries are increasingly adopting climate change framework laws to help them achieve their climate goals. Since 1998 – when the first law was adopted - 61 countries (and one regional bloc, the European Union) have enacted framework laws. Half of these have been in the last five years. Framework laws are especially prevalent in the Americas, Western Europe, and the Pacific and are more common among high-income and upper-middle-income countries. They are least common in Africa and the Middle East. This note analyzes 12 key elements of framework laws, covering strategic goals, policy development and execution, evaluation and enforcement. The most frequently included elements are mandates for measurement, reporting, and verification, and strategies and plans; the least common are mandates for national and sectoral targets and risk and vulnerability assessments. This note provides an analytical structure and summary of the latest practice to support countries interested in enacting climate change framework laws. TABLE OF CONTENTS Introduction 1 The 12 Elements of Comprehensive Climate Framework Laws 3 A Growing Trend 4 Latest Analysis of the 12 Key Elements of Climate Change Framework Laws 7 Setting Strategic Goals 7 Policy Development 9 Policy Execution 12 Policy Evaluation and Enforcement 14 Conclusion 15 Appendix: Scoring Methodology 19 CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 1 Prosperity Insight INTRODUCTION Countries are increasingly adopting framework all framework laws were passed in the last five laws to help them achieve their climate goals. years. The World Bank’s Reference Guide to Climate A climate change framework law structures Change Framework Legislation, published in 2020, the state’s overall response to climate change, provides a framework for analyzing these laws. establishing targets, institutional mandates, and Given the passage of a substantial number (24) of the means of implementation. It provides the new laws since then, this note provides updated backbone for developing more detailed laws and analysis of the inclusion of key elements in all regulations that are specific to different sectors. framework laws approved to date, with specific Since 1998 – when the first framework law was examples from the most recent laws. This note aims adopted - 61 countries (and one regional bloc, the to support policymakers engaged in the design and European Union) have enacted such laws. Half of implementation of climate change framework laws. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 2 Prosperity Insight Legislation can serve as a useful tool to that align with climate goals. Climate change address the policy challenges of climate demands collaboration among numerous state and change. Decarbonization and adaptation require nonstate actors, and framework legislation aids investments with long lead times, extending this by defining roles and establishing coordination well beyond electoral mandates. Legislation can structures. The law-making process also typically strengthen policy continuity across administrations involves extensive stakeholder participation and as laws are more difficult to change than executive discussion, fostering agreement and contributing to instruments, such as strategies and plans. This policy durability. Additionally, legislation enhances promise of continuity provides households and accountability in meeting climate objectives, with businesses the confidence to make investments the judiciary providing oversight. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 3 Prosperity Insight THE 12 ELEMENTS OF COMPREHENSIVE CLIMATE FRAMEWORK LAWS The World Bank’s Reference Guide to Climate government levels, stakeholder engagement, Change Framework Legislation outlines 12 key empowering local governments, and funding the components of effective framework laws (table law’s implementation. The last two elements 1). The first two elements focus on setting strategic involve policy evaluation and enforcement, goals through national long-term targets and specifically through measurement, review, breaking them down into shorter-term and sector- verification, and oversight mechanisms. The specific targets. The next four elements address Reference Guide and this note look at the inclusion policy development, including risk assessments, of these 12 elements in framework laws.1 It is strategic planning, policy tools, and independent important to note that they could be covered by expert advice. Another four elements pertain to other laws and policies. policy execution, such as coordination across 1. For more information on the rationale for each element, as well as country examples from earlier laws, see Reference Guide to Climate Change Framework Legislation. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 4 Prosperity Insight A GROWING TREND Since 1998, 61 countries and one regional bloc change framework laws; and 53 percent of these (the European Union) have passed climate laws have been passed since 2019 (figure 1).2 2. A total of 59 national framework laws are currently in effect according to the Climate Change Laws of the World database. The scope of this note excludes regulations, policies, and decrees. Three countries have two framework laws (Colombia, France, and Japan). See figure 5 for the full list of countries and laws. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 5 Prosperity Insight Figure 1: Number of Climate Change Framework Laws Passed (1998 to 2024) 14 70 12 60 CAN Cumulative total number of countries COL Number of laws passed per year 10 50 EU FJI 8 40 ARG NGA AUS HRV PRT CHL 6 30 FIN FRA SRB GRC FRA NOR BEN DEU KOR CHE 4 20 IRL PAK COL MNE ESP BHS GTM MLT PRY JPN NPL ALB UGA USA KOS 2 10 BRA ISL LIE BGR PNG SWE PER NLD DNK RUS VNM BEL JPN NZL SVN GBR PHL AUT MEX FSM HND TWN KEN VUT AND TUV MUS MDV GAB DEU ZAF 0 0 1998 2002 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* Number of framework laws passed per year Culmulative total number of countries Source: World Bank. Notes: *As of September 2024. **Includes one regional bloc (European Union). Climate framework laws are more prevalent in West Pacific countries, such as Fiji, Federated the Americas, Western Europe, and the Pacific. States of Micronesia, Tuvalu, and Vanuatu. In contrast, they are less common in Africa, the Middle East, and Central and East Asia. High- The incidence of the 12 key elements across income and upper-middle-income countries have climate change framework laws range from the highest adoption rate, with 35 percent of each 43 percent to 91 percent (figure 2).3 The income category having such laws, followed by 22 elements most frequently included in climate percent of lower-middle-income countries. Low- change framework laws are (1) Element 11 – income countries have the lowest adoption rate Measurement, Reporting, and Verification, found in at 4 percent. Although small island developing 91 percent of laws; (2) Element 4 – Climate Change states are highly vulnerable to climate change, only Strategies and Plans, included in 89 percent of 15 percent have passed climate framework laws. laws; and (3) Element 5 – Policy Instruments, However, these laws are common in some South- present in 83 percent of laws. The least commonly 3. Incidence was measured by the authors applying the scoring methodology in the appendix, first by assessing each element’s individual score by country, and then aggregating the elements’ scores across all countries. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 6 Prosperity Insight included elements are (1) Element 1 – Long-Term of all laws.4 The rest of the note offers more Targets, found in 43 percent of laws; (2) Element detailed analysis of trends associated with each 2 – Intermediate and Sectoral Targets, found in of the 12 elements, highlighting country-specific 49 percent of laws; and (3) Element 3 – Risk and good practice examples from legislation passed Vulnerability Assessments, found in 55 percent since 2020. Figure 2: Incidence of the 12 Key Elements across Climate Change Framework Laws 1. Long-term targets 5% 38% 58% 2. Intermediate and sectoral targets 23% 26% 52% 3. Risk and vulnerability assessments 23% 32% 45% 4. Climate change strategies and plans 59% 30% 11% 5. Policy instruments 21% 62% 17% 6. Independent expert advice 14% 47% 39% 7. Coordination Mechanism 38% 30% 32% 8. Stakeholder engagement 24% 39% 36% 9. Subnational government 24% 36% 39% 10. Financing implementation 15% 47% 38% 11. Measurement, reporting, and verification 59% 32% 9% 12. Oversight 12% 53% 35% Integrated Somewhat integrated Not integrated Source: World Bank. 4. “Most” and “least frequently included” is defined as “integrated” plus “somewhat integrated,” as shown in figure 2. Just because an element does not appear in a framework law does not mean it is not legislated in the country; it may appear in another law or regulatory instrument. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 7 Prosperity Insight LATEST ANALYSIS OF THE 12 KEY ELEMENTS OF CLIMATE CHANGE FRAMEWORK LAWS Setting Strategic Goals Element 1. Long-term targets a small fraction (5 percent) of framework laws establish the strategic includes both decarbonization and adaptation direction to guide a country’s targets. Up until 2015, the number of laws with actions to decarbonize and decarbonization and adaption targets was roughly adapt to climate change by equal (figure 3). Since then, and particularly after 2050 (and beyond). Laws with 2020, there has been a marked rise in laws with decarbonization targets are more common, with decarbonization targets. When looking across nearly half (47 percent) including such goals, while income groups, decarbonization targets are much only 17 percent set targets for adaptation. Only more common in high-income countries. Of all CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 8 Prosperity Insight high-income countries with a climate change law, greenhosue gas emissions target by 2050 “through 60 percent have decarbonization targets, followed the development and implementation of carbon by upper-middle-income countries (26 percent) budgets, a low emissions development strategy, and lower-middle-income countries (9 percent).5 the National Climate Change Policy, and Nationally In Fiji, an upper-middle-income country, the Determined Contribution.” Climate Change Act (2021) sets a net-zero Figure 3: Trends in the Adoption of Long-Term Decarbonization and Adaptation Targets Paris Agreement 20 Number of long-term targets 15 10 5 0 1998 2002 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Culmulative total (Net zero target) Culmulative total (Adaptation targets) Source: World Bank. The lack of a universally accepted measurement for Mitigation to Global Climate Change mandates that climate adaptation, similar to how greenhouse gas measurable or descriptive adaptation targets, or emission reductions are used for decarbonization, both, be defined in the context of comprehensive complicates the establishment of quantifiable climate change action plans. adaptation targets in national laws. Since 2021, no climate change framework legislation has included Element 2. Intermediate specific adaptation targets within the text of the and sectoral targets serve law. Nevertheless, some of these laws do require as milestones that guide the formulation of adaptation targets in future policy makers in maintaining policy documents. For example, Argentina’s Law progress toward long-term 27520 on Minimum Budgets for Adaptation and targets. While only around 5. The one low-income country with a framework law, Uganda, does not include decarbonization targets. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 9 Prosperity Insight half of all climate change laws feature these kinds fifth (21 percent) of all climate laws now contain a of targets, their frequency has increased since mechanism that requires each new climate target to 2020, as evidenced by the higher “integrated” be more ambitious than the previous one. Notably, scores depicted in figure 5. For example, Greece’s most of these laws (71 percent) were passed after National Climate Law 4936/2022 sets forth 2015, reflecting a recent trend toward greater intermediate targets of cutting net human- climate ambition. This approach is in line with induced greenhouse gas emissions by at least 55 Article 4 of the Paris Agreement, which obligates percent by 2030 and 80 percent by 2040. In a countries to advance their climate commitments similar vein, Portugal’s Framework Climate Law with each new Nationally Determined Contribution 98/2021 stipulates a minimum reduction of 30 (NDC). For example, Canada’s Net-Zero Emissions percent by 2030 and a target range of 65 to 75 Accountability Act (2021) requires that “each percent reduction by 2040. In some countries, the greenhouse gas emissions target must represent framework law itself does not contain the targets, a progression beyond the previous one.” Similarly, but instead establishes an obligation for these to The Bahamas’ Climate Change and Carbon be arrived at through more detailed secondary Market Initiatives Act (2022) authorizes the Prime legislation or regulations. Minister to manage mitigation strategies, ensuring enhanced support for the country’s NDCs under the Moreover, countries are increasingly incorporating Paris Agreement and raising the level of ambition mechanisms to ratchet ambition and prevent with each subsequent submission. backsliding into their framework laws. About one- Policy Development Element 3. While only 55 in recent years (figure 5). These assessments percent of all climate change are critical tools for guiding decision-making laws require the creation processes across government, the private sector, of risk and vulnerability and individual households. They enable the assessments, the emphasis identification of key areas for investment and policy on these assessments within development to enhance resilience and prepare the laws has been increasing, as evidenced by the for the adverse effects of climate-related events. “integrated” and “somewhat integrated” scores For example, Vietnam’s Law on Environmental CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 10 Prosperity Insight Protection 08/2022 requires “assessment of Element 5. Policy instruments impacts, vulnerabilities, risks, loss and damage are crucial for providing clear caused by climate change to sectors, regions and pathways to achieve long-term residential communities based on the climate climate goals. The analysis change scenario and socioeconomic development identifies the types of policy forecast.” Similarly, Spain’s Law 7/2021 on Climate instruments mandated by Change and Energy Transition requires “the Ministry these laws and assesses whether they are aimed for the Ecological Transition and the Demographic at decarbonization or adaptation (see table 1 for Challenge…to prepare and publish reports, with a a description of policy instrument types). While a periodicity of at least five years, on the evolution large portion (83 percent) of climate change laws of the impacts and risks derived from climate call for the development of policy instruments, change and on the policies and measures aimed at only a small fraction (21 percent) do so in a increasing resilience and reducing vulnerability to comprehensive manner. Comprehensive laws climate change.” specify both decarbonization and adaptation policies, assign clear responsibilities for Element 4. The Paris implementation, and set timelines for when Agreement calls for countries these policies should be adopted. Without clearly to devise comprehensive defined responsibilities and timelines, uncertainty strategies and plans aimed could delay formulation and implementation. at both reducing greenhouse The data indicates that decarbonization policy gas emissions (mitigation) instruments (122) are more frequently included in and preparing for the impacts of climate change climate change framework laws than adaptation (adaptation). Since 2015, a majority of climate policy instruments (101), as illustrated in figure change framework laws (59 percent) have fully 4. Regulatory measures are the most common integrated the obligation to develop such strategies type of policy instrument, with informational tools and plans. The design and scope of these can vary also being widely used. For instance, in Fiji, the significantly from country to country. They might Climate Change Act (2021) enables the minister include broad, economy-wide plans that outline the responsible for climate change to “introduce and general direction for government policy across all implement a carbon pricing mechanism, including sectors, sector-specific plans that are spearheaded an emissions trading scheme” and “introduce and by individual ministries, or territorial plans that implement fiscal incentives and national levies with are developed by subnational governments. For the purpose of limiting or reducing Fiji’s greenhouse example, Serbia’s Law on Climate Change (2021) gas emissions, including in relation to particular mandates the adoption of an economy-wide sectors or industries.” In terms of adaptation, low carbon development strategy (and action Colombia’s Law 2169/2021 on Promoting Low plan) and a climate change adaptation program. Carbon Development enables the development Montenegro’s Law on Protection from the Negative of sector-specific policy instruments. One such Impacts of Climate Change (2019) requires “state example is the law’s provision for “adaptation administration bodies responsible for energy, actions in disease prevention and health promotion industry, agriculture, forestry and transport to by 2030, which contribute to reducing cases of submit to the Ministry a biannual report on the climate-sensitive diseases in 100 percent of the measures implemented according to strategic health sector entities.” documents, in order to prevent the negative impacts of climate change.” CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 11 Prosperity Insight Table 1: Description of Policy Instruments Policy Definition Instrument Information measures raise awareness of public entities, households, and businesses about decarbonization Information and adaptation. Provisions include mandating access to decarbonization and adaptation policies, climate risk and vulnerability assessments, scientific and technological information, and communication campaigns. Regulation encompasses rules, standards, and enforcement arrangements that limit and guide the activities of Regulation public agencies, households, and businesses. These include building codes, land-use zoning, energy efficiency requirements, and fuel source standards. Fiscal Fiscal management practices align budget processes with resilience and decarbonization objectives, including Management reporting on climate-related public expenditures and climate-informed public investment management. Fiscal Fiscal measures promote actions by businesses and households to reduce their vulnerability and emissions Measures and can include tax expenditures. Programs support emissions reductions and adaptation through public spending, including public Programs infrastructure investments (such as flood and drought management, public transport, and reforestation). Carbon pricing internalizes the cost of emissions generated during production, delivery, and disposal of goods Carbon and services. It does that by eliminating fossil fuel subsidies and introducing carbon taxes, emissions trading Pricing systems, charges, and rebates that reward emissions reductions and penalize emissions. Source: World Bank. 2020. “World Bank Reference Guide to Climate Change Framework Legislation.” Equitable Growth, Finance & Institutions Insight – Governance. Washington, DC: World Bank. Figure 4: Policy Instruments Included in Climate Framework Laws 50 47 45 40 35 35 30 30 25 20 18 20 17 15 15 11 11 10 9 10 5 0 0 Information Regulation Fiscal Fiscal Programs Carbon pricing management measures Adaptation Decarbonization Source: World Bank. CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 12 Prosperity Insight Element 6. Independent Determined Contribution.” In response, “the expert advisory bodies Minister must, within six months after that advice integrate scientific knowledge was given, prepare a written statement setting out: and evidence into the climate (i) the Minister’s response to that advice; (ii) if the policy-making process. Minister has decided not to accept that advice— These bodies contribute to the reasons for the decision not to accept that the continuity of climate policy across political advice; and (iii) the Minister must cause a copy of administrations. Although more than half of all the statement to be tabled in each House of the climate change framework laws provide for the Parliament within 15 sitting days of that House establishment of such independent advisory after the preparation of the statement.” Similarly, mechanisms, only 14 percent of these laws ensure a France’s Law No. 2019-1147 on Energy and the comprehensive approach – for instance by obliging Climate establishes the High Council for Climate, an governments to formally respond to the advice given independent expert advisory body under the Prime by these bodies. Under Australia’s Climate Change Minister’s authority. The French government is then Act (2022), the Climate Change Authority is tasked required to publicly respond to the High Council for with advising the Minister for Climate Change and Climate’s opinions before Parliament, ensuring that Energy on “greenhouse gas emissions reduction the advisory body’s contributions are considered targets that the Climate Change Authority believes and addressed in the legislative process. should be included in a new or adjusted Nationally Policy Execution Element 7. Coordination ministers). For example, Nepal’s Environment mechanisms are essential for Protection Act 9/2019 establishes the Climate managing collective action Change Management National Council. The Council on climate change across is chaired by the Prime Minister and includes different government agencies “the Minister for Forest and Environment, three and levels. These mechanisms Ministers of the Government of Nepal designated by are present in 68 percent of climate change the Prime Minister, Chief Ministers of all provinces,” framework laws; however, only 38 percent of laws as well as experts in forestry and environmental clearly established these entities with leadership science. Similarly, Nigeria’s Climate Change Act from high-level officials and representation (2021) creates the National Council on Climate from subnational governments. When creating Change led by the President, with responsibilities coordination bodies, framework laws invariably including coordinating sectoral targets, managing designate the chair, which can be a signal of the a Climate Change Fund, and developing policies importance of climate change to government and programs. Despite the establishment of these decision-making. The vast majority of coordination bodies, Climate Change Institutional Assessments bodies (79 percent) are chaired by very high-level reveal that many do not function effectively. government officials (presidents, prime ministers, The main issues are the lack of clear roles and CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 13 Prosperity Insight responsibilities, and insufficient financial and more clearly, as indicated by the increasing human resources to effectively drive the climate number of “integrated” scores in recent years change agenda.6 (figure 5). Since 2021, a third of all laws have defined explicit roles for subnational governments. Element 8. Stakeholder engagement is key for For instance, Uganda’s National Climate Change Act including nongovernmental (2021) requires each district “to develop a District actors like civil society and Climate Change Action Plan within one year after the private sector in climate the development of the National Climate Change change decisions. Although Action Plan.” Similarly, Chile’s Framework Law on 63 percent of climate change Climate Change (2022) empowers municipalities laws feature stakeholder “to collect, organize and keep their climate data engagement mechanisms, only 24 percent together with reports on the measures taken or clearly define the platforms for involvement, planned for mitigation and adaptation and make such as committees or citizens’ assemblies. these available to the Ministry.” While assigning These platforms allow nongovernmental actors to responsibilities to subnational governments meaningfully contribute to policy development, is essential for a harmonized approach to implementation of climate actions, and monitoring climate change, various factors such as financial of progress. For instance, Tuvalu’s Climate Change constraints, data and capacity limitations, Resilience Act 09/2019 establishes the National and political barriers, as well as the nature Climate Change Resilience Forum, “ensuring that of the intergovernmental system, may have the general community has an opportunity to implications for how such action is coordinated participate in the formulation of climate change and implemented. resilience related policies and the implementation of related programs and activities.” Croatia’s Law Element 10. Significant on Climate Change and the Protection of the Ozone financing is required to act Layer (2019) combines coordination (Element 7) on climate change. Aligning with stakeholder engagement (Element 8) into financial needs with national one body, enabling nongovernmental participation budgetary policies is crucial in decision-making through its Commission for for efficient planning and Intersectoral Coordination Policy and Measures for funding of development that is low in greenhouse Mitigation and Adaptation to Climate Change. gas emissions and resilient to climate impacts. Mobilizing climate finance remains an emerging Element 9. Framework trend across climate change laws. Despite the legislation can play a pivotal importance of financing, only 15 percent of role in delineating the duties framework laws require countries to address of subnational governments climate change in their public finances and to within climate change policy. publish information on climate spending. For Of all the laws reviewed, 60 example, Uganda’s National Climate Change Act percent recognize the involvement of subnational amends the country’s Public Financial Management governments in climate-related decision-making, Act, requiring the Minister of Finance, in close yet only a quarter of these laws clearly define collaboration with the National Planning Authority, the roles for such engagement. However, there to certify that the National Budget Paper is climate- is a positive trend toward specifying these roles responsive and allocates adequate funding to 6. Climate and Development: An Agenda for Action - Emerging Insights from World Bank Group 2021-22 Country Climate and Development Reports (World Bank, 2022). CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 14 Prosperity Insight climate change actions. In addition, Belgium’s devote to federal climate policy, including the Law on the Governance of Federal Climate Policy new funding requests they submit as part of (2024) requires federal public departments and the budget preparation process, in their annual institutions to indicate the expenditures they progress reports. Policy Evaluation and Enforcement Element 11. Measurement, Element 12. Oversight Reporting, and Verification measures in climate change (MRV) systems are critical to framework legislation are the advancement of national designed to ensure the climate change objectives. They executive complies with the inform the review, revision, law. Framework legislation and evaluation of targets, risk assessments, typically requires the executive branch to submit strategies and plans, climate finance, and policy periodic reports to the legislature. In some cases, instruments. MRV systems also enhance oversight supreme audit institutions may be mandated to and accountability. Governments are ramping up conduct periodic compliance and performance their efforts to establish effective MRV systems. audits. The analysis shows that 65 percent of Since 2020, 78 percent of climate change laws all climate change laws stipulate some form of have fully integrated MRV systems. Kosovo’s Law reporting and 53 percent require reporting to the on Climate Change 08/L-250 requires “reporting on legislature, but only 12 percent require reports greenhouse gas emissions, including greenhouse to the legislature and independent assessments gas absorption” and “reporting on policies and of progress. France’s Law No. 2019-1147 on measures to mitigate climate change by March Energy and the Climate requires the government 15 of the first reporting year and every two years to “present to Parliament and to the Economic, thereafter.” Albania is notable for incorporating Social and Environmental Council, the measures adaptation tracking in its Law 155/2020 on already implemented (and planned) within six Climate Change, which sets up a system to track months of submitting its report.” It also requires the effectiveness of adaptation policies, plans, the government to present an explanation for and investments in reducing vulnerability and each of the objectives not achieved. In addition, enhancing the well-being of populations impacted Chile’s Framework Law on Climate Change (2022) by climate change. mandates that the “Comptroller General of the Republic…must consider compliance with the goals of the sectoral mitigation and adaptation plans.” CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 15 Prosperity Insight CONCLUSION In addition to the 12 elements, some other environmental sustainability and to submit annual themes are emerging in more recent climate reports on their decarbonization and adaptation change framework laws. Quite a few laws are efforts. Similarly, laws in Fiji and Portugal compel mandating the inclusion of climate change at all private companies to report financial risks related levels of the education system (e.g., Fiji, Nigeria, to climate change in their financial statements, Spain, Tuvalu, Albania, Bahamas, Portugal, and along with their risk reduction measures. Moreover, Uganda). Framework laws also increasingly govern some laws aim to bolster government capacity private sector actions. For example, Nigeria by requiring ministries to designate climate focal requires companies with more than 50 employees points, a step taken by Fiji and Nigeria. to appoint a dedicated officer for climate change or CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 16 Prosperity Insight Despite the growth in climate change framework highlights a growing role for courts in supporting laws, there remain gaps in country coverage, the implementation.7 The decision whether to adopt a comprehensiveness of each piece of legislation, framework law, sectoral laws, or other governance and implementation. Many countries that tools to achieve climate goals must be informed by might benefit from framework legislation have each country’s unique context. The Climate Change not yet adopted it, especially in the Middle East Institutional Assessment provides one framework and Africa. Comprehensiveness would benefit to help countries understand the broader range from a greater focus on targets and risk and of possible governance reforms that can be taken vulnerability. The effectiveness of framework laws to respond to climate change. The World Bank’s depends on implementation, which often requires Reference Guide to Climate Change Framework subsidiary regulatory instruments, resources, Legislation and this note provide an analytical and accountability mechanisms, including the structure and summary of the latest practice to judiciary. The global increase in climate litigation, support countries that choose to adapt their legal including cases enforcing framework laws, framework to address climate change. 7. For instance, Ireland’s Supreme Court required the government to revise its National Mitigation Plan for not meeting the ambitions of the country’s framework law. https://climatecasechart.com/non-us-case/friends-of-the-irish-environment-v-ireland/ CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 17 Prosperity Insight Figure 5: Heat Map – Status of Element Integration in Climate Change Framework Laws 1 2 3 4 5 6 7 8 9 10 11 12 Intermediate and Implementation Sectoral Targets Climate Change Reporting, and Strategies and Measurement, Income Group Expert Advice Assessments Independent Coordination Vulnerability Engagement Instruments Government Stakeholder Subnational Verification Mechanism Long-term Financing Oversight Risk and Targets Policy Plans Year Japan (M) 1998 HIC New Zealand 2002 HIC Slovenia 2006 HIC UK 2008 HIC Brazil 2009 UMIC Philippines 2009 LMIC Austria 2011 HIC Iceland 2012 HIC Mexico 2012 UMIC Guatemala 2013 UMIC Liechtenstein 2013 HIC Micronesia 2013 LMIC Bulgaria 2014 UMIC Honduras 2014 LMIC Finland 2015 HIC France 2015 HIC Ireland 2015 HIC Malta 2015 HIC Papua New Guinea 2015 LMIC Taiwan 2015 HIC Kenya 2016 LMIC Norway 2017 HIC Pakistan 2017 LMIC Paraguay 2017 UMIC Sweden 2017 HIC Vanuatu 2017 LMIC Benin 2018 LMIC Colombia 2018 UMIC Japan (A) 2018 HIC Peru 2018 UMIC Andorra 2018 HIC Argentina 2019 UMIC Croatia 2019 HIC France 2019 HIC Germany (M) 2019 HIC CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 18 Prosperity Insight Figure 5 continued... 1 2 3 4 5 6 7 8 9 10 11 12 Intermediate and Implementation Sectoral Targets Climate Change Reporting, and Strategies and Measurement, Income Group Expert Advice Assessments Independent Coordination Vulnerability Engagement Instruments Government Stakeholder Subnational Verification Mechanism Long-term Financing Oversight Risk and Targets Policy Plans Year Montenegro 2019 UMIC Nepal 2019 LMIC Netherlands 2019 HIC Tuvalu 2019 UMIC Albania 2020 UMIC Denmark 2020 HIC Mauritius 2020 UMIC Canada 2021 HIC Colombia 2021 UMIC European Union 2021 N/A Fiji 2021 UMIC Nigeria 2021 LMIC Portugal 2021 HIC Serbia 2021 UMIC Republic of Korea 2021 HIC Spain 2021 HIC Uganda 2021 LIC Russia 2021 UMIC Maldives 2021 UMIC Australia 2022 HIC Chile 2022 HIC Greece 2022 HIC Switzerland 2022 HIC The Bahamas 2022 HIC United States 2022 HIC Vietnam 2022 LMIC Gabon 2022 UMIC Germany (A) 2023 HIC Kosovo 2024 UMIC South Africa 2024 UMIC Belgium 2024 HIC Integrated Somewhat integrated Source: World Bank. 2020. Note: Figure 5 shows an assessment of the integration of each of the 12 elements into the specific framework law reviewed. It does not look at the overall regulatory framework. Some EU countries have chosen to incorporate EU-level targets in their domestic climate framework legislation while others have not. A = Adaptation ; M = Mitigation CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 19 Prosperity Insight APPENDIX: SCORING METHODOLOGY Consistent with the methodology used in the elements. Elements 2 (Intermediate and Sectoral Reference Guide to Climate Change Framework Targets), 3 (Risk and Vulnerability Assessments), Legislation, this note assesses the incidence and 9 (Subnational Government), have 3 sub- of the elements across the laws (figure 2) and elements. Elements 5 (Policy Instruments), the integration of each of the elements into the 6 (Independent Expert Advice), 7 (Coordination framework law of each country. Mechanism), and 8 (Stakeholder Engagement) have four sub-elements. Partial scores are An element was determined to be either provided when the language used in the law is “integrated,” “somewhat integrated,” or “not ambiguous, vague or if the law relies on other integrated” into the relevant framework law based mechanisms to achieve a specific purpose. The on the summation of answers to each question purpose of this analysis is to provide an overall (yes, no, or partial), and the number of questions view of the incidence of the 12 elements and offer (i.e., “sub-elements”) under each element (see a snapshot of examples for countries to use to table below). guide the development of new or updated climate legislation. The purpose is not to rate individual Elements 1 (Long-term Targets), 4 (Climate country legislation – because in some countries, Change Strategies and Plans), 10 (Financing the elements may not be relevant, or the issue may Implementation), 11 (Monitoring, Reporting, and be regulated by other legal instruments. Verification), and 12 (Oversight) have two sub- CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND 20 Prosperity Insight 2 Sub-Elements 3 Sub-Elements 4 Sub-Elements 2 Yes = Integrated 3 Yes = Integrated 4 Yes = Integrated 1 Yes; 1 Partial = Somewhat integrated 2 Yes; 1 Partial = Integrated 3 Yes; 1 Partial = Integrated 1 Yes; 1 No = Somewhat integrated 2 Yes; 1 No = Somewhat integrated 3 Yes; 1 No = Somewhat integrated 2 Partial = Somewhat integrated 1 Yes; 2 Partial = Somewhat integrated 2 Yes; 2 Partial = Somewhat integrated 1 No; 1 Partial = Not integrated 1 Yes; 1 No; 1 Partial = Somewhat integrated 2 Yes; 1 Partial; 1 No = Somewhat integrated 2 No = Not integrated 1 Yes; 2 No = Somewhat integrated 2 Yes; 2 No = Somewhat integrated 3 Partial = Somewhat integrated 4 Partial = Somewhat integrated 1 No; 2 Partial = Not integrated 3 Partial; 1 Yes = Somewhat integrated 2 No; 1 Partial = Not integrated 3 Partial; 1 No = Somewhat integrated 3 No = Not integrated 2 Partial; 2 No = Somewhat integrated 2 Partial; 1 Yes; 1 No = Somewhat integrated 2 No; 1 Yes; 1 Partial = Not integrated 3 No; 1 Yes = Not integrated 3 No; 1 Partial = Not integrated 4 No = Not integrated Prosperity Insight CLIMATE CHANGE FRAMEWORK LEGISLATION: A GROWING TREND | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | G 21 VERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | GOVERNANCE | G