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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).

This learning product draws upon existing IEG evaluations, project documents and analytical work relating to the World Bank Group’s (WBG’s) experience with supporting efforts towards the rapid scale up of off-grid electrification (pico-solar products, individual solar home systems, and micro and mini-grids), in client countries. The focus is on experiences geared towards efficiently and effectively integrating off-grid electrification scale-up efforts with grid rollout – within a national roadmap for achieving universal access in a given time-frame. Relevant findings and lessons are framed as strategic considerations to inform the design, development and implementation of country engagements tailored to the prevailing sector conditions and readiness; through capacity building, technical assistance, and investment lending.

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.

Accurate forecasts of electricity demand inform investment decisions about power generation and supporting network infrastructure. Of major interest to energy policymakers, power utilities, and private investors alike, forecasts are also essential for development professionals. Inaccurate forecasts, whether they over- or under predict demand, can have dire social and economic consequences. Underestimating demand results in supply shortages and forced power outages, with serious consequences for productivity and economic growth. Overestimating demand can lead to overinvestment in generation capacity, possible financial distress, and, ultimately, higher electricity prices. This Live Wire provides practitioners with a quick reference to historical trends for electricity demand in the developing world and to new econometric forecasts at the country level. By providing a succinct overview, it allows the patterns and interrelationships of economic growth (and other relevant drivers) to come into focus. The note also reviews demand-forecasting methodologies and discusses their applicability in different contexts.

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.

Are you facing the challenge of installing solar at high altitudes with difficult terrain and climatic conditions? This Live Wire recommends practices for setting up solar installations in snowbound terrain, based on the Bank’s assessment of technical requirements for setting up a 1 GW solar power project in Spiti Valley, Himachal Pradesh. Possible technical solutions include bifacial modules and passivated emitter and rear cell technology, all with fixed mounting systems. With nuanced solutions, it is crucial to train staff and optimize equipment for site-specific risks like heavy snow loads. Both utility-scale projects for export, as well as small setups for supplying local communities, could potentially benefit from such solutions.