Publication: Financing Climate Adaptation and Nature-Based Infrastructure
Loading...
Published
2025-05-14
ISSN
Date
2025-05-14
Author(s)
Editor(s)
Abstract
This report assesses opportunities to increase private sector participation and financing for climate adaptation and nature-based infrastructure in Emerging and Developing Economies (EMDEs). Climate change is intensifying hydrological variability, coastal storms, and heatwaves, and these effects are anticipated to intensify as global temperatures continue to rise in the coming decades. The impacts of climate change will be felt hardest in EMDEs, which are structurally the most vulnerable to climate change. These climate trends are also combining with economic and population growth to drive unprecedented impacts on nature, including biodiversity, ecosystems, and the services they provide.
Link to Data Set
Citation
“World Bank Group. 2025. Financing Climate Adaptation and Nature-Based Infrastructure. © World Bank. http://hdl.handle.net/10986/43189 License: CC BY-NC 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Biodiversity, Climate Change, and Adaptation : Nature-based Solutions from the World Bank Portfolio(World Bank, Washington, DC, 2008)Climate change is a serious environmental challenge that could undermine the drive for sustainable development. Since the industrial revolution, the mean surface temperature of earth has increased an average of 1degree celsius per century due to the accumulation of greenhouse gases in the atmosphere. Furthermore, most of this change has occurred in the past 30 to 40 years, and the rate of increase is accelerating, with significant impacts both at a global scale and at local and regional levels. While it remains important to reduce greenhouse gas emissions and reverse climate change in the long run, many of the impacts of climate change are already in evidence. As a result, governments, communities, and civil society are increasingly concerned with anticipating the future effects of climate change while searching for strategies to mitigate, and adapt to, it's current effects.Publication Biodiversity, Climate Change, and Adaptation : Nature-Based Solutions from the World Bank Portfolio(Washington, DC, 2008-09)Climate change is a serious environmental challenge that could undermine the drive for sustainable development. Since the industrial revolution, the mean surface temperature of earth has increased an average of 1degree celsius per century due to the accumulation of greenhouse gases in the atmosphere. Furthermore, most of this change has occurred in the past 30 to 40 years, and the rate of increase is accelerating, with significant impacts both at a global scale and at local and regional levels. While it remains important to reduce greenhouse gas emissions and reverse climate change in the long run, many of the impacts of climate change are already in evidence. As a result, governments, communities, and civil society are increasingly concerned with anticipating the future effects of climate change while searching for strategies to mitigate, and adapt to, it's current effects.Publication Climate Change Adaptation and Social Inclusion Screening and Quantification Tool for PT Indonesia Infrastructure Finance(Washington, DC: World Bank, 2024-07-24)Indonesia is highly vulnerable to the impacts of climate change, including projected sea-level rises, changing precipitation patterns, intense tropical cyclones, and storm surges. This is largely due to the concentration of urban poor in city peripheries, where infrastructure supply is limited and of low-quality. The government of Indonesia is strongly committed to combating climate change and, as such, has made a number of commitments to strengthen its climate change adaptation and mitigation priorities. As a step towards this, Indonesia ratified the Paris Agreement in 2016 and submitted its nationally determined contributions (NDCs). In this context it becomes imperative to catalyze infrastructure investments that foster E&S sustainability, with a focus on gender protection and equality, particularly in, vulnerable communities. To help further the government’s strategic priorities, PT Indonesia Infrastructure Finance (IIF), a leading non-bank private infrastructure financing institution, is committed to strengthening the application of international best practices in climate risk and social inclusion standard. The objective of this assignment was to (i) strengthen IIF’s capacity to develop a strategy and methodology to screen climate-smart projects and quantify the impacts and benefits of the application of climate risk, gender, and other social inclusion considerations such as Cultural Heritage, Biodiversity, Ecosystem Services, and Indigenous peoples from a project perspective and (ii) help support and advance Indonesia’s sustainability and climate commitments.Publication Insurance against Climate Change : Financial Disaster Risk Management and Insurance Options for Climate Change Adaptation in Bulgaria(Washington, DC, 2014)Bulgaria is exposed to nearly all types of climate extremes, including floods, droughts, and others, as well as earthquakes. The combination of insurance products, early warning systems, information campaigns, infrastructure adaptation measures, and strict regulations can be very useful in tackling the negative climate change impacts. This note provides an overview of the insurance sector s contribution to climate change - related risk prevention and highlights some of Bulgaria s ongoing disaster risk management (DRM) efforts. The note aims to raise awareness and emphasize the role that financial disaster risk management (FDRM), including insurance, can have in climate change adaptation. Based on a desk review and preliminary in-country stakeholder consultations, the note s findings are meant to motivate new thinking and serve as an engagement tool for ongoing in-country discussions, as well to help identify analytical work to be carried out in the future. Based on the preliminary review of Bulgaria s specific context, several ideas are being put forward to be further explored in the ongoing discussions toward creating FDRM products to address the major natural disasters (in particular, floods, droughts, and earthquakes) and improving adaptation to climate change. Potential areas of analysis that can be further explored and, as such, plant a seed for future action can focus on promoting risk prevention and deploying insurance instruments, including issues around traditional risk management, technology innovation, compulsory disaster insurance, forecast insurance, and disaster insurance pools. The analysis which will assess the extent of vulnerability of the subjects covered by existing insurance products, can subsequently lead to the decisions on priority insurance products to be introduced in the future.Publication Zambia : Economic and Poverty Impact of Nature-based Tourism(Washington, DC, 2007-12)This study estimates the contribution of nature-based tourism in Zambia to economic growth and poverty reduction as well as to the sustainability of the management of the wildlife estate. The Zambian Government has identified tourism along with agriculture, mining and manufacturing as the most important sectors for economic development in its various planning documents, including the 2007 Fifth National Development Plan (FNDP). This report is organized into three sections: chapters two and three characterize the tourism industry and the economic impact of nature tourists. Using a variety of sources of information, the two chapters profile the tourism industry in Zambia and analyze the barriers to growth. The chapter four investigates the welfare of communities living in game management area (GMAs) around national parks. These communities are the most likely to suffer from wildlife conflicts and/or benefit from economic activities in and around the parks. A household survey compares the welfare of communities living in GMAs with ordinary rural communities. The chapter five analyzes the performance of Zambia Wildlife Authority (ZAWA) during its first five year of existence, and explores the current state of the management of the wildlife estate and its potential to contribute to economic growth through tourism.
Users also downloaded
Showing related downloaded files
Publication State of Social Protection Report 2025(Washington, DC: World Bank, 2025-04-07)Social protection goes well beyond cash transfers; it includes policies and programs that bridge skill, financial, and information gaps, aiding people in securing better jobs. The three pillars of social protection—social assistance, social insurance, and labor market programs—support households and workers in handling crises, escaping poverty, facing transitions, and seizing employment opportunities. But despite a substantial expansion over the past decade, 2 billion people remain uncovered or inadequately covered across low- and middle-income countries. Drawing from administrative and household survey data from the World Bank’s Atlas of Social Protection Indicators of Resilience and Equity (ASPIRE), the "State of Social Protection Report 2025: The 2-Billion-Person Challenge" documents advances and challenges to strengthening social protection and labor systems across low- and middle-income countries, analyzing the evolution of expenditure, coverage, and adequacy of support. This report details four policy action areas governments can embrace to maximize the benefits of adequate social protection for all: extending social protection to those in need; strengthening the adequacy of social protection support; building shock-proof social protection systems; and optimizing social protection financing. The report discusses how the path of reforms will depend on country context, capacity, and fiscal space. The rising frequency of shocks and crises calls for major investments in the adaptability and preparedness of social protection and labor systems. Amid a world in transition, social protection is more important and necessary than ever.Publication Indonesia Economic Prospects, December 2024(Washington, DC: World Bank, 2024-12-19)Indonesia’s economy remains resilient, buoyed by strong domestic demand and a recovering service sector. The current account deficit widened, driven by moderating terms of trade and cyclical factors that intensified services and income outflows. After two years of consolidation, the fiscal policy stance loosened slightly. Meanwhile, Bank Indonesia (BI) has been incrementally easing its policy stance while managing currency stability. Indonesia needs to significantly increase tax revenues to investment in human and physical capital to achieve its high-income status ambitions. The country’s public capital stock lag regional and structural peers, falling far short of advanced economies. Closing these gaps could enhance productivity growth and support the sustained 6 percent growth required to reach high-income status by 2045. However, the investment needed is substantial. A significant portion of this must be financed through increased tax revenues, as a substantial rise in debt would be risky and would violate statutory caps on deficit and debt levels. Overall, increasing tax revenues will require reforms that widen the tax base, improve tax administration, and address structural constraints to compliance. Reforms to widen the tax base could lower the registration threshold for VAT to align with middle-income country norms, which also applies to the temporary final tax for MSMEs. Meanwhile, a permanent final tax regime could be introduced for MSMEs below the threshold. Special CIT treatments, such as for construction services, publicly listed firms, and non-standard VAT exemptions, may be phased out gradually. Tax incentives need to become more strategic, time-bound, and systematically reviewed. Improving compliance requires better risk management, using high-quality third-party data and integrating fragmented government systems. Simplifying and clarifying VAT regulations can reduce disputes and administrative burdens. Lastly, addressing structural constraints involves deepening financial sector depth, which is expected to have the secondary effect of facilitating compliance through improved information and formalization.Publication World Bank East Asia and Pacific Economic Update, April 2025: A Longer View(Washington, DC: World Bank, 2025-04-24)East Asia and Pacific (EAP) outpaced most regions in economic growth in 2024. To sustain this momentum and generate jobs, EAP countries must navigate global uncertainty and tackle long-term challenges tied to shifting global integration, climate change, and demographic trends. In its 2025 Regional Economic Update, the World Bank projects that growth in EAP will slow down to 4.0 percent in 2025, compared to 5.0 percent in 2024. Uncertainty around these projections remains high, and growth outcomes will depend on global developments and national policy choices.Publication World Development Report 2023: Migrants, Refugees, and Societies(Washington, DC : World Bank, 2023-04-25)Migration is a development challenge. About 184 million people—2.3 percent of the world’s population—live outside of their country of nationality. Almost half of them are in low- and middle-income countries. But what lies ahead? As the world struggles to cope with global economic imbalances, diverging demographic trends, and climate change, migration will become a necessity in the decades to come for countries at all levels of income. If managed well, migration can be a force for prosperity and can help achieve the United Nations’ Sustainable Development Goals. World Development Report 2023 proposes an innovative approach to maximize the development impacts of cross-border movements on both destination and origin countries and on migrants and refugees themselves. The framework it offers, drawn from labor economics and international law, rests on a “Match and Motive Matrix” that focuses on two factors: how closely migrants’ skills and attributes match the needs of destination countries and what motives underlie their movements. This approach enables policy makers to distinguish between different types of movements and to design migration policies for each. International cooperation will be critical to the effective management of migration.Publication Africa's Pulse, No. 31, Spring 2025: Improving Governance and Delivering for People in Africa(Washington, DC: World Bank, 2025-04-23)Amid global economic uncertainty and limited fiscal space in the region, Sub-Saharan Africa's economic activity is showing some resilience, with projected growth gradually increasing over 2025-2027 period. This growth is driven primarily by a rise in private demand, alongside a reduction in inflation rates and stable currencies. However, growth has been unable to reduce poverty and meet people's aspirations. The region is also grappling with persistent challenges, including political unrest and escalating demands for adequate economic opportunities, as reflected in a surge in protests over the past decade and a notable rise in coups since 2000. These dynamics highlight the urgent need for a renewed social contract between governments and citizens, emphasizing efficient public spending, better governance, and transparent market regulations to foster job creation and sustainable economic growth. African governments must prioritize governance reforms to maintain growth momentum and restore public trust. The report underscores the importance of strategic investments and complementary policies that bolster human capital, improve public services, and create a fair tax system, thereby fostering a business environment that supports growth and job creation.