According to a recent World Bank report, developing nations can lower their greenhouse gas emissions with relatively smaller investments, but more assistance.
According to the report Climate and Development: An Agenda for Action, allocating 1.4% of the GDP of developing nations to adaptation and mitigation could reduce emissions by as much as 70% by 2050.
Varying Investment Requirements
The report has taken note of the varying investment needs of different countries. It said that low-income countries have typically a greater need for investments. They require to spend about 8 per cent of their GDP for the same. For lower-middle-income countries, it is 5.1% and 1.1% for upper-middle-income countries.
“Climate-development financing needs are larger as a percentage of GDP in the countries that have contributed least to global warming and where access to capital markets and private capital is more limited,” read the report.
Climate and Development go Hand-in-Hand
In the Sahel, Rwanda, Cameroon, and Pakistan, it is impossible to distinguish between the needs for development and those connected to the climate. The research also stated that the best way to address climate change vulnerability is through filling in infrastructural gaps.
From Senegal in the west to Ethiopia in the east of Africa, the Sahel region stretches south of the Sahara. It is highly susceptible to climate shocks, such as droughts, floods, and land degradation.
The report examined more than 20 nations, which together accounted for 34% of global greenhouse gas emissions. Low-income and low-middle-income nations are ill-prepared to fend off the effects of climate change.
Achieving climate and development objectives must go hand in hand, said World Bank Group President David Malpass in a statement.
Benefits will outweigh the costs
The road to low-carbon and resilient economies demands significant investments. But the transition can offer benefits that wholly or partially nullify costs, the report has claimed.
For instance, Turkey will benefit from reduced energy imports and decreased air pollution to the tune of $146 billion (1 percent of GDP) between 2022 and 2040.
Well-prioritised climate actions, strong participation of the private sector, substantial international support and a just transition can help achieve positive impacts, Malpass claimed.
Easing Accessibility to Funds
In low-income and some middle-income countries, renewable energy initiatives call for large investments. There is minimal money available for mitigation measures in countries with low credit ratings or significant perceived risks.
The World Bank recommended strengthening institutions and policies to reduce such risks. Access to concessional capital can encourage investments from the private sector, it added.
High-income countries responsible for historical emissions must rapidly decarbonise while ramping up financial support to lower-income countries, it added.
The World Bank report also stated that significant present and future emitters in the developing world, as well, have a crucial role to play in maintaining the emission-reduction goals set forth in the UN-mandated Paris Agreement.