• Energy Research
• 11. Sustainability close
• 12. Responsible consumption close
• English close
• World Bank close

The country’s unique philosophy is expressed by Bhutan’s Gross National Happiness (GNH) as the guiding principle of development. Bhutan is at a crossroads: It can maintain the current pattern of development—with rising inequality—or develop a vibrant private sector to generate jobs and diversify the economy, building resilience to future external shocks. The overarching priority of this Country Partnership Framework (CPF) is job creation. This CPF presents an integrated framework of WBG support to help Bhutan achieve inclusive and sustainable development through private sector–led job creation.

This report makes the case for a big investment push for EMDEs’ sustainable recovery and development, assesses the magnitude and composition of such investment, presents actions needed for an energy transition, looks at the role that innovations and state capacity can play in facilitating GRID, and proposes actions that governments, the private sector, MDBs, the IMF, and donors can undertake to mobilize financing at the large scale needed. The report summarizes the insights derived from the meetings of the High-Level Advisory Group (HLAG) on Sustainable and Inclusive Recovery and Growth, jointly led by Mari Pangestu, Ceyla Pazarbasioglu, and Nicholas Stern, and composed of experts from research institutions, the private sector, and governments, as well as senior World Bank Group and IMF staff members. The work of the HLAG, and thus this report, focuses on EMDEs and delves in greater depth into climate investment and financing, particularly for energy transition, as it is a less researched area. While doing so, it recognizes that policy and investment decisions in high-income countries, which accounted for only 16 percent of the global population in 2019 and yet for 32 percent of total greenhouse gas emissions (World Bank 2023a, 2023b), will be critical to whether the Paris Agreement goals can be reached. It also recognizes that these countries must play a key role in contributing financially to EMDEs’ transition to low-carbon economies.

This issue includes the following headings: mass rapid transit: a tool for urban expansion; financing: beyond sovereign guarantees; and low-income housing: lessons from Latin America.

Population growth and economic development, aggravated by climate change, will increase pressure on energy and water resources. Integrated planning can make the most of these two essential and scarce resources. Thirsty Energy, a World Bank initiative, helps countries address these issues and ensure sustainable development of both resources. This note focuses on the water needs of the power sector and particularly answers the following questions: Why is this issue important? Do power plants need all that much water? What about other types of plants? What are the challenges? and, What are our options?

South Africa has a comprehensive climate change response strategy to support the transition to a low carbon economy and a climate-resilient society. Improving the national Greenhouse Gas (GHG) inventory and implementing a carbon tax are but two elements that form part of this transition. Developing mandatory GHG reporting regulations will support not only the National GHG Inventory but also aid policy formulation, implementation, and legislation while allowing South Africa to meet its reporting obligations under the United Nations Framework Convention on Climate Change (UNFCCC).

Climate change presents risks and opportunities for the financial sector in both emerging and advanced economies. Financial institutions cannot afford to be outside of the transition path to low-carbon economies. Energy subsidies, emission standards, and carbon prices will all have a direct impact on the financial positions of these institutions’ clients, making climate risk an important element of any credit decision. Financial institutions will also need to understand the climate risks associated with their non-green assets and design measures to mitigate them. Yet there are also significant opportunities for financial institutions to provide innovative financing products for energy efficiency upgrades, renewable power generation, green buildings, green transport, and climate-smart agriculture and architecture. And there is a growing community of investors seeking new climate and environment friendly opportunities, which financial institutions can use to diversify their funding base and reduce their funding costs.

This policy brief presents the findings of a recent study focusing on two important aspects of forest ecosystems: how forest ecosystems help enhance people’s resilience to climate impacts, and how forest ecosystems support livelihood development for the poor.

There is a quiet revolution underway in a previously sleepy segment of the transport sector: the electrification of municipal buses and other intra-city vehicles. As McKinsey reported last October, the compound annual growth rate of battery-electric buses has exceeded 100 percent since 2013- surpassing that of every other electric vehicle segment. Investing in battery-electric buses - as well as other high-use vehicles, such as e-delivery trucks - is an effective way for International Finance Corporation (IFC) to move the needle on air quality and greenhouse emissions from urban transportation. The opportunity is massive, and IFC has the capacity to fast-track implementation. It’s time to hit the accelerator. A cocktail of technology, investment, and scale in electric buses (and other high-use intra-city electric vehicles) will soon reach a point where reliability and cost advantages create the death spiral for internal combustion engines. Superior technology and declining costs will eventually overwhelm the old, static, diesel driven transportation paradigm.

This Good Practice Handbook is designed to provide guidance to practitioners on taking rigorous and consistent approaches to assess hydropower project impacts on downstream river ecosystems and people, and determine their Environmental Flows (EFlows) commitments. The Handbook outlines a good practice approach for integrating EFlows into hydropower projects, emphasizing the selection of context-appropriate EFlows Assessment methods. Its structure follows the main steps of this approach: 1. Understand the context of river functioning and the provision of ecosystem values and services into which EFlows will be introduced (Section 2); 2. Understand the potential downstream impacts associated with hydropower development (Section 3) and how these can be mitigated (Section 4); 3. Align ESIA and EFlows Assessments and ensure data sharing and good communication between the assessment teams (see Section 5); 4. Apply a context-appropriate EFlows Assessment method (Section 6); 5. Conduct a comprehensive and appropriate stakeholder engagement program leading to a decision on EFlows and other mitigation measures based on the outcome of the assessment (Sections 7 and 8); and 6. Prepare an Environmental Flow Management Plan (EFMP2; Section 9). It also provides the following: A logframe for integrating EFlows into hydropower plants (Section 10); and Case studies to illustrate the main concepts addressed in the Handbook (Section 11).

Significant additional resources from the private sector will be needed for infrastructure in emerging market countries if the Sustainable Development Goals are to be achieved. Close to 80 percent of all infrastructure investments are government funded in these countries, yet it is recognized that public sector investments alone will not be sufficient to bridge the infrastructure gap. Scaling up the role that private firms and investors play in infrastructure provision will require a better understanding of the advantages and disadvantages of public versus private provision, including the issues and incentives that need to be considered in order to find the right balance between the two.