EXECUTIVE SUMMARY




                                            TO
                                            THE


Success Stories and Strategies for Achieving
Climate Adaptation and Resilience
© 2024 The World Bank
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Contents

ACKNOWLEDGMENTS 	                                                                   4
EXECUTIVE SUMMARY	                                                                  7
  Climate change and extreme events are increasing, as are their impacts	           8
  Development, adaptation, and resilience are inseparable	                          9
  Countries have not mainstreamed adaptation and resilience in their economic and
  development policies	                                                             12
  Private and public actors are stepping up A&R action and investments	             15

REFERENCES	19




                                                                                         3
Acknowledgments

    The preparation of this report was led by Jia Li, Esther Naikal, and Thomas Kerr under the
    overall guidance of Stéphane Hallegatte. The core team comprises Jia Jun Lee, Francisna
    Fernando, Chloé Desjonqueres, Nisan Gorgulu, Camilla Knudsen, Penny Mealy, Ammara Shariq,
    and Jichong Wu.

    The case studies were prepared by teams from the World Bank and the International Finance
    Corporation (IFC), including: Paolo Avner, Anam Basnet, Sarah Coll-Black, Jana el-Horr,
    Habiba Gitay, Mohammad Rafiqul Islam, Bramka Jafino, Melanie Kappes, Camilla Knudsen,
    Jia Jun Lee, Nancy Lozano Gracia, Olivier Mahul, Sean Michaels, Tevi Obed, Ashley Pople, Anja
    Robakowski, Evelyn Sanchez Hernandez, Jun Rentschler, Varun Shankar, Tatiana Skalon,
    Vladimir Stenek, and Sara Turner. David Carlin of UNEP FI, Anne Chataigne and Mahesh Roy of
    IIGCC, Lori Collins of GARI Group, Marie Diron and Swami Venkataraman of Moody’s Ratings,
    Caitlin Drake and Felicity Spoors of Gold Standard, Irene Heemskirk of the European Central
    Bank, Jane Jamieson of PPIAF, Alexander Kennedy of Standard Chartered Bank, Ariane
    Pevide and and Michael Keane of Mitsubishi UFJ Financial Group, Ujala Qadir of Climate Bonds
    Initiative, and Nicola Ranger of University of Oxford contributed input and review of private
    sector and related case studies. Neven Fučkar of the University of Oxford provided input on
    climate risk and vulnerability contexts.

    The country adaptation and resilience readiness assessments were prepared by many
    colleagues across the World Bank Group, some as part of the Country Climate and
    Development Report process. The team is grateful for support and methodological and data
    input from Julie Rozenberg, Thomas Farole, Stavros Papageorgiou, Ellysar Baroudy, Ahmed
    Al Qabany, Craig Meisner, David Groves, Giovanni Ruta, Kai Kaiser, Elena Golub, Paola Agostini,
    Juan Jose Miranda Montero, Tao Wang, Katherine Stapleton, Andrea Liverani, Julian Lee,
    Sophie de Vries Robbé, Natalie Weigum, Serge Mandiefe Piabuo, Melanie Kappes, Ashley
    Pople, Yurani Arias Granada, Diji Chandrasekharan Behr, Raffaello Cervigni, Rangeet Ghosh,
    Wanli Fang, Philippe Ambrosi, Jun Rentschler, Phearanich Hing, and Zoran Kapor.




4
                     RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




The team gratefully acknowledges the invaluable comments and advice provided by peer
reviewers: Chiara Bronchi, Kevin Carey, Jana el-Horr, Nathan Engle, Forhad Shilpi and
Vladimir Stenek. We are also thankful for comments and insights received from: Seth Ayers,
Doerte Doemeland, Verena Fritz, Elisabeth Huybens, Sebastian Molineus, Franziska Ohnsorge,
Julie Rozenberg, Sandhya Srinivasan, Asmita Tiwari, and Wei Zhang.

The report would not have been possible without the communications, editorial, and
publishing teams. Ferzina Banaji led the communications strategy and engagement with
support from Lucy Buckley and Joana Lopes. Pascal Saura also provided invaluable support.
The report was skillfully edited by Lucy Southwood and designed by Fiorella Gil (ULTRA
Designs).

This work was conducted with guidance from Renaud Seligmann (Director for Strategy and
Operations of the Planet Vice Presidency), Jennifer Sara (Director of the Climate Change
Group), and Hania Dawood (Practice Manager of Climate Finance and Economics in the
Climate Change Group), and under the overall direction and leadership of Juergen Voegele
(Vice President of the Planet Vice Presidency).




                                                                                                                         5
Contents




6
                                      RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




A girl returning from school wades
across a flooded street after heavy
                                      In Ahmedabad, India, the extreme heat warnings established as part of the
rains, in Guwahati, India.            first heat-health action plan in a South Asian city saved thousands of lives in
Credit: © D. Talukdar/istock.com
                                      its first two years of implementation. Vanuatu, a highly vulnerable Small Island
                                      Developing State, has embarked on a journey to reform its institutions and
                                      integrate climate adaptation and disaster risk management into development
                                      policies, land use plans, and infrastructure projects, ensuring that the country
                                      and its communities are better prepared for a future with accelerating climate
                                      impacts. At the same time, a commodity broker is helping to implement large-
                                      scale agroforestry programs in Côte d’Ivoire, aimed at restoring ecosystems,
                                      sequestering carbon, and improving soil fertility, while also supporting farmers’
                                      livelihoods. Private electricity utilities are increasingly including climate risks in
                                      their business decisions and investing in resilience, and the financial sector is
                                      developing new strategic partnerships and innovative fund structures to channel
                                      more capital into resilience solutions for vulnerable populations and regions.


                                       In the context of increasingly visible climate       scaled up to build resilient communities,
                                       change and disaster impacts, and the widely          businesses, and economies.
                                       recognized need to do more to adapt and
                                                                                            Building on what can be learnt from these
                                       prevent them, these success stories of
                                                                                            initiatives, this report aims to frame the
                                       private actions, locally-driven solutions, and
                                                                                            adaptation and resilience (A&R) imperative in
                                       government interventions offer a vision of
                                                                                            the context of global development challenges,
                                       what can be done. As well as contributing to
                                                                                            and to offer examples of successful and
                                       faster, better, and more resilient development,
                                                                                            replicable actions that can accelerate progress
                                       these actions are replicable with appropriate
                                                                                            toward more resilient development and poverty
                                       adjustments in other contexts, and can be
                                                                                            reduction.




                                                                                                                                           7
EXECUTIVE SUMMARY




                            Climate change and extreme                                         2017). Children are particularly vulnerable
                            events are increasing, as are                                      to climate risks, with long-term impacts on
                            their impacts                                                      economic and human capital development
                                                                                               (UNICEF 2023).
                            As the climate changes, countries,
                            businesses, and communities must adapt.                            About one-fifth of the world’s population is at
                            The earth’s climate system is experiencing an                      high risk from climate-related hazards. A new
                            unprecedented rate of warming that has already                     analysis to inform the World Bank scorecard
                            led to record-breaking heatwaves, droughts,                        overlays spatial data of key climate hazards
                            storms, floods, and wildfires. There is evidence                   (heatwaves, droughts, floods, and cyclones)
                            that climate impacts are undermining progress                      with household data to count people who are
                            toward the Sustainable Development Goals                           both exposed and highly vulnerable due to their
                            (WMO 2023). Vulnerable countries, people, and                      propensity to be adversely affected or their
                            communities are disproportionately affected.                       inability to cope with the impacts (Hill et al.,
                            Warming has slowed down the convergence in                         forthcoming). Estimates from 103 countries,
                            income between countries in recent decades                         which comprise 86 percent of the global
                            (Diffenbaugh and Burke 2019); and within                           population, show that 1.2 billion people are
                            countries, the expected impacts of climate                         both exposed to at least one climate-related
                            change on the bottom 40 percent are, on                            hazard and highly vulnerable (figure ES.1). While
                            average, 70 percent higher than those on the                       high-income countries have large populations
                            average population (Hallegatte and Rozenberg                       exposed to climate-related hazards, most


    FIGURE ES.1. SHARE OF POPULATION THAT IS EXPOSED AND HIGHLY VULNERABLE BY REGION, 2021




                                                                     Europe & Central Asia
                                  North America


                                                                                                           South Asia           East Asia & Pacific



                                                         Middle East & North Africa




                                 Latin America & Caribbean

             Total population
                                                                               Sub-Saharan Africa

             Population exposed
             Population exposed
             and highly vulnerable

    Source: World Bank staff calculations using World Bank Group Scorecard indicator data on percentage of people at high risk from climate-related hazards
    (https://scorecard.worldbank.org/); Hill et al. (forthcoming)




8
                          RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




people at high risk are in South Asia and Sub-              crucial for enhancing adaptive capacity and
Saharan Africa; this is a consequence of lower              the resilience of people and communities.
income levels and a lack of access to the basic             There is a wealth of evidence demonstrating the
infrastructure and social services people need to           interconnectedness of development progress
cope with and recover from shocks.                          and adaptation. Adaptation interventions
                                                            alone cannot make people and households
                                                            resilient; they also need to have access to basic
Development, adaptation, and
                                                            infrastructure services (such as energy and
resilience are inseparable
                                                            improved water), financial instruments (such
 KEY MESSAGE #1                                             as saving accounts and borrowing), and critical
                                                            services (such as health care).
Reducing climate and disaster impacts
on people, communities, and economies                       Thanks to economic development, the share
requires more rapid development, more                       of people at high risk from climate-related
resilient development, and targeted                         hazards has halved within a decade. Increased
adaptation interventions. Only a whole-                     gross domestic product (GDP) per capita is
of-society strategy will allow countries                    associated with lower impacts of climate change
to coordinate efforts across sectors and
                                                            on GDP and poverty, lower well-being losses from
support people, the private sector, and
                                                            natural hazards, and a lower share of population
communities to build resilience.
                                                            at high risk from climate-related hazards (table
Rapid, inclusive development, poverty                       ES.1). Although GDP per capita does not influence
reduction, and access to basic services are                 asset losses due to climate-related hazards in a


TABLE ES.1. A 10 PERCENT INCREASE IN GDP PER CAPITA IS ASSOCIATED WITH IMPROVEMENTS IN VARIOUS RISK OR RESILIENCE METRICS

RISK OR RESILIENCE METRIC                                   CHANGE                                    BASED ON
Proportion of people highly vulnerable to climate-          2.8 percentage point reduction            http://scorecard.worldbank.org/; Hill
related hazards                                                                                       et al. (forthcoming)
Proportion of people at high-risk from climate-related      1.5 percentage point reduction
hazards
Absolute asset losses (in $ per capita) from natural        8.6 percent increase                      CDRI (2023)
disasters
Relative asset losses (in % of GDP) from natural            1.2 percent reduction
disasters                                                   (not significantly different from zero)
Socioeconomic resilience from natural disasters             0.8 percentage point increase             Middelanis et al. (forthcoming)
Absolute well-being losses (in $ per capita) from natural   7.4 percent increase
disasters
Relative well-being losses (in % of GDP) from natural       2.4 percent reduction
disasters
Number of people falling in extreme poverty in 2030 due 5 percent reduction                           Jafino et al. (2020)
to climate change
Expected GDP losses due to (a subset of) climate            0.2 to 0.3 percentage point reduction     World Bank Group (2024)
change impacts in 2050




                                                                                                                                              9
EXECUTIVE SUMMARY




                                      statistically significant manner relative to total                           on its own: countries also need to achieve
                                      GDP and as estimated by CDRI (2023), it does                                 better development through climate-informed
                                      influence macroeconomic impacts, well-being                                  policies.  Income growth only explains a fraction
                                      impacts, and extreme risk levels. A 10 percent                               of the differences in resilience and risk levels.
                                      increase in GDP per capita translates into a                                 This means that countries at all income levels
                                      0.2–0.3 percentage-point reduction in the                                    can do more to boost resilience and reduce
                                      estimated impact of climate change on GDP in                                 risks. Policy choices regarding inequality,
                                      2050, a 5 percent decrease in the number of                                  financial inclusion, infrastructure development
                                      people living in poverty due to climate change                               and quality, and social safety nets can enhance
                                      in 2030, a 2.4 percent reduction in average well-                            adaptive capacity and socioeconomic resilience
                                      being losses from natural disasters (as share of                             at any income level. To deliver the expected
                                      GDP), and a 1.5 percentage-point decline in share                            development gains despite climate and disaster
                                      of population at high risk from climate hazards.                             risks, development policies and investment
                                      It means that a 10 percent increase in income                                decisions also need to be climate-informed.
                                      could reduce the global population at high risk                              There is a growing number of examples of how
                                      by almost 100 million people. This benefit from                              better development can deliver higher resilience,
                                      economic development is also visible in the                                  including:
                                      evolution of the number of people at high risk
                                                                                                                   ■	     Ensuring that urban development takes
                                      from climate-related hazards, which has halved
                                                                                                                          place in safe areas: With urban growth in
                                      within a decade, dropping from 36 to 18 percent
                                                                                                                          the most hazardous flood zones outpacing
                                      of the global population between 2010 and 2021
                                                                                                                          growth in safe zones (Rentschler et al.
                                      (figure ES.2).
                                                                                                                          2023), driving rapidly urbanizing populations
                                      While increased development is a requisite                                          toward safer areas can prevent flood losses
                                      for improved resilience, it is not sufficient                                       and protection or resettlement costs. This


FIGURE ES.2. SHARE OF POPULATION AT HIGH RISK FROM CLIMATE-RELATED HAZARDS, 2010–21
                          70                                                                                  70

                          60                              East Asia & Pacific
                                                                                                              60

                          50                              Europe & Central Asia                               50                                    Low-income countries
Share of population (%)




                                                                                    Share of population (%)




                                                          Latin America &
                          40                              Caribbean                                           40                                    Lower-middle
                                                                                                                                                    income countries
                                                          Middle East & North
                          30                                                                                  30                                    Upper-middle
                                                          Africa
                                                                                                                                                    income countries
                          20                              North America                                       20
                                                                                                                                                    High-income countries
                                                          South Asia
                          10                                                                                  10
                                                          Sub-Saharan Africa                                                                        Countries with
                                                                                                                                                    fragility, conflicts,
                          0                               World                                               0                                     and violence
                               2010    2021                                                                             2010       2021
Source: World Bank staff calculations using World Bank Group Scorecard data on percentage of people at high risk from climate-related hazards (https://
scorecard.worldbank.org/); Hill et al. (forthcoming)
Note: Countries are excluded if the underlying survey data are not within a three-year window around the reporting year.




10
                        RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




     is particularly so for informal settlements,
     which tend to be exposed to higher levels
     of risk.                                        The balance between the three elements—faster
■	   Building infrastructure with resilience
     standards that consider current and
                                                     development, better development, and targeted
     future climate risks and incorporating          interventions—will depend on the context. In high-
     nature-based solutions: In low- and             income countries, where people have universal
     middle-income countries, more resilient         access to basic social, financial, and infrastructure
     power, water, sanitation, and transport
     sector assets would cost around 3 percent
                                                     services, the focus will naturally be toward
     more, on average. But over their lifetimes,     targeted intervention to adapt existing systems
     the net benefits could reach an estimated       and infrastructure to cope with increased climate
     $4.2 trillion, or $4 for each $1 invested       impacts. In rapidly-growing low-income countries,
     (Hallegatte, Rentschler and Rozenberg 2019).
■	   Reallocating direct public investment
                                                     where most of these systems still need to be built,
     and distortive public subsidies to ensure       the broader development agenda will play a much
     a more resilient development pathway:           bigger role, and this will have implications for both
     Subsidies in the energy, water, agriculture,    financing and resources (box ES.1).
     and land sectors total $1.2 trillion per
     year and often have a negative effect
     on resilience by incentivizing excessive
     risk-taking and degrading natural areas or
                                                       BOX ES.1.
     ecosystem services (Damania et al. 2023).
                                                       Capturing the full picture of adaptation financing
But countries cannot manage climate change
                                                       Investment needs and financial flows for adaptation and
and natural hazards through faster and better
                                                       development are impossible to separate, particularly in low-
development alone: retrofitting and targeted
                                                       income countries. The broader framework proposed in this report
risk management and adaptation interventions
                                                       suggests higher investment needs for resilience, because they
will also play a key role in reducing future
                                                       include expenditures that are more often considered “development
impacts. For example, countries will need to
                                                       needs”—such as providing universal access to improved water,
upgrade their river and coastal flood defenses         sanitation, or electricity—that are foundational for resilience (UNEP
in response to changing hydrology and sea level        2023; CPI 2023; World Bank Group 2023b, 2024). This contrasts
rise. On average, annual capital costs for river       with estimates of climate finance, which focus on investments
flood protection in low- and middle-income             with explicit adaptation needs or that involve incremental costs
countries would need to be 0.04–0.47 percent           (CPI 2023). The limited scope of existing estimates partly explains
of GDP, while maintaining the current absolute         why only 5 percent of total climate finance ($63 billion per year in
level of risk would cost 0.15—2.4 percent of           2021–22) is considered adaptation finance. Recent efforts to better
GDP (Rozenberg and Fay 2019). And due to more          capture private finance for adaptation will help improve these
frequent and intense heatwaves, countries will         assessments (CPI 2024). But despite these differences in scope and
need specific interventions to retrofit buildings      definition, it is clear that adaptation and development finance needs
to make them healthier, more comfortable, and          in developing countries are greater than current finance flows.
more energy efficient.




                                                                                                                           11
EXECUTIVE SUMMARY




                    Improved resilience will enhance and                        to anticipate, adapt to, and cope with climate
                    accelerate long-term development and                        impacts and, as development strengthens
                    poverty reduction. Not only will it reduce the              countries’ institutional development and
                    losses to climate change and natural hazards                governance capacity, they are more likely to
                    (a first dividend from resilience), it will also            include climate considerations in their economic
                    encourage more productive investments and                   and development decision-making. Development
                    behaviors, a benefit referred to as the “second             gaps, poverty, inequalities, macroeconomic
                    dividend” of disaster risk reduction (Tanner et al.         instability, and institutional development and
                    2015; Heubaum et al. 2022).                                 governance capacity are key constraints to
                                                                                adaptation and resilience.
                    Countries have not                                          The assessment highlights three major gaps in
                    mainstreamed adaptation and                                 mainstreaming A&R and suggests three ways
                    resilience in their economic and                            to bridge these gaps and design a whole-of-
                    development policies                                        society approach.

                        KEY MESSAGE #2                                          First, focus on institutions and
                                                                                implementation. Most, if not all, countries have
                    A&R readiness assessments for 44
                                                                                established A&R priorities in various policy
                    countries and economies identify major
                                                                                instruments—most commonly their national
                    gaps and limits in current policies and
                                                                                adaptation plans or nationally determined
                    systems, particularly in poorer countries.
                                                                                contributions (NDCs)—but these often diverge
                    These include key gaps in implementing
                                                                                from sectoral development plans and do not
                    adaptation measures at sector level,
                                                                                consider existing challenges for policy action.
                    addressing broader macrofiscal risks
                                                                                A handful of the countries assessed have set
                    and implications, and monitoring and
                                                                                up legal frameworks for climate adaptation
                    evaluation.
                                                                                and resilience. Notable examples include
                    A&R readiness assessments in 44 countries1                  Colombia’s strong and extensive institutional
                    show that they have made progress in                        framework for climate change with two key
                    implementing A&R interventions, but most                    climate laws, Uganda’s National Climate Change
                    struggle to move to a whole-of-society                      Act of 2021, and Peru’s Framework Law No
                    approach. The assessment uses the Adaptation                30754 on Climate Change. Many countries lack
                    Principles framework (figure ES.3) and finds                institutional arrangements for devolving and
                    that preparedness varies significantly across               delegating responsibility and finance to local
                    countries, sectors, and domains (figure ES.4).              governments so they can lead efforts on the
                    Countries with higher income, more stable                   ground. Another key area for improvement
                    macroeconomic framework, more fiscal space,                 lies in clarifying private actor responsibilities
                    and lower debt levels are better able to respond            and aligning incentives for adaptation and
                    to shocks, anticipate future risks and invest in            resilience. Countries tend to perform relatively
                    adaptation and resilience. Their populations                well on preparing their health care systems
                    tend to have the tools and instruments they need            for shocks and pandemics, possibly due to the


                    	 The country selection is based upon the completion of A&R readiness assessments as a key input to various World
                    1

                      Bank Group Country Climate and Development Reports (CCDRs), and results from a World Bank Caribbean region report
                      (Browne et al. 2021).




12
                                          RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




  FIGURE ES.3. THE ADAPTATION PRINCIPLES FRAMEWORK



                                                                          APPLICATIONS
                                                    Legal and institutional framework, implementation, and monitoring


                        PRIORITY AREA                     PRIORITY AREA                   PRIORITY AREA                          PRIORITY AREA

                        01                                02                              03                                     04
                        Facilitate the adaptation         Adapt land use plans and        Help people and firms                   Manage financial and
                        of people and firms                protect critical public         manage residual risks                  macrofiscal issues
                                                          assets, services                and natural disasters



                                                                          FOUNDATIONS
                                                               Rapid, robust, and inclusive development




  FIGURE ES.4. SUMMARY OF COUNTRY PERFORMANCE IN THE SIX A&R PILLARS

                  3.0

                  2.8

                  2.6

                  2.4
Readiness score




                  2.2

                  2.0

                  1.8
                  1.6

                  1.4

                  1.2

                  1.0
                                    Foundations:          Priority 1:       Priority 2:      Priority 3:           Priority 4:        Applications:
                                      Economic          Adaptation of    Land use plans     Disaster risk         Macrofiscal          Institutions,
                                     growth and        people and firms     and critical     management                              implementation,
                                      inclusive                           public assets                                              and monitoring
                                    development

  Source: World Bank staff calculations, based on World Bank A&R country readiness assessments
  Note: Each indicator is assigned a score of 1 (nascent), 2 (emerging), or 3 (established) using a range of information sources and methods, including
  benchmarking against peer countries and expert judgment, and then aggregated with equal weight for each priority area and pillar. Each dot represents a
  country’s average score in the corresponding pillar, with the mean represented by a cross and scores between the 25th and 75th percentiles represented in
  the shaded box.




                                                                                                                                                       13
       EXECUTIVE SUMMARY




Caring for mangroves on the coast,   lessons learnt from the COVID-19 pandemic.          and conclude that countries have made least
Situbondo, Indonesia.
                                     But they lag in strengthening the resilience        progress in addressing macrofiscal issues. This
Credit: ©Sam Maulidna/
shutterstock.com                     of their energy systems, public assets, and         highlights the technical and capacity challenges
                                     infrastructure; making land use and urban plans     to identifying, quantifying, and managing
                                     risk-informed; and increasing water security.       macrofiscal risks posed by climate impacts,
                                     Despite rapid urbanization, many countries lack     including risks to macroeconomic stability,
                                     the institutional frameworks, technical capacity,   public finances, debt sustainability, and the
                                     and finance they need to integrate climate          financial sector. Among emerging economies,
                                     resilience in urban and land use planning. Most     Colombia remains a leader in this area and was
                                     also lack asset management systems, climate         the first Latin American country to carry out a
                                     risk screening, an inventory of critical public     climate stress test of its financial sector (World
                                     assets, and sufficient budget allocation for        Bank Group 2023a). Many countries have made
                                     climate-resilient infrastructure.
                                                                                         progress on incorporating climate risks in their
                                     Second, think macro. Many studies note              national budget processes—for example, Senegal
                                     that adaptation action remains fragmented,          has a green budget. But most still need to
                                     local and incremental, with limited evidence        develop a financial strategy to manage climate
                                     of transformational adaptation and risk             and disaster risks, with clear emergency budget
                                     reductions (Berrang-Ford et al. 2021). The A&R      allocation guidelines and ex post financial
                                     readiness assessments confirm this finding          assistance processes, a more reactive social




  14
                         RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




protection system, and the development of             report identifies a set of good practices that can
appropriate financial instruments, such as            be replicated, with appropriate adjustments to
insurance.                                            the local context, and scaled up across countries
                                                      or sectors.
Third, monitor progress and learn from it.
As countries progress with A&R action, having         Private actors are stepping up their
robust monitoring, evaluation, and learning           investments in resilience. Firms will invest in
systems in place is vital. But given the evolving     adaptation if it is relevant to their continued
nature of climate change dynamics and other           profitability and market position. But while
socioeconomic factors that can exacerbate             adaptation can reduce costs and improve
climate vulnerabilities or hinder climate action,     performance, there are persistent barriers
monitoring and evaluating climate adaptation is
                                                      to greater private investment. These include
inherently complex and challenging, and most
                                                      information asymmetries and knowledge gaps;
countries have limited capacity in this area.
                                                      difficulties monetizing resilience benefits;
A noteworthy exception is Uganda, one of the
                                                      limited awareness; unclear metrics to measure
few countries that has developed an integrated
                                                      success; coordination failure; and credit
monitoring, reporting and verification tool,
                                                      vulnerabilities that increase capital costs even
which has been instrumental in enhancing
                                                      for low-risk, high-return resilience investments.
coordination between public and private sector
                                                      These barriers disproportionally affect small
stakeholders on key areas of climate adaptation
and mitigation action, including data sharing and     businesses and informal firms.
tracking financial flows.                             Investing in A&R solutions often increases
                                                      revenue, but all firms face implementation
Private and public actors are                         challenges. Companies are increasingly
                                                      implementing strategic interventions—such
stepping up A&R action and
                                                      as regenerative agriculture, more resilient
investments
                                                      infrastructure designs, and climate risk stress-
 KEY MESSAGE #3                                       testing of financial portfolios—which not only
                                                      increase resilience, but also improve efficiency
While not always visible, there are
                                                      and returns. Private sector initiatives and
strong examples of effective adaptation
                                                      investments in resilience are often constrained
practices in all sectors, regions, and
                                                      by capacity issues, especially for small- and
income levels. These provide lessons
                                                      medium-size firms, and depend on a supportive
for delivering successful adaptation
interventions in both the public and                  policy and regulatory environment.
private sectors and offer opportunities               When adaptation solutions generate
to replicate and scale up proven                      noneconomic gains, private actors need
solutions.                                            dedicated public support. When gains cannot
Despite major gaps, this report dispels the           be monetized, strategic coalitions and public-
idea that no progress is being made. Given            private partnerships help to mobilize resources.
that climate change is often one among many           This is especially true in the infrastructure
considerations in an intervention’s design and        sector, where private companies, government
implementation, A&R actions are not always            agencies, and nonprofit entities partner to pool
visible. Through a series of case studies, this       resources and secure finance for resilience.




                                                                                                                         15
EXECUTIVE SUMMARY




                       Companies are beginning to take a broader                    are already showing results. Although these
                       sustainability lens when implementing                        examples are not intended to be comprehensive
                       climate resilience. Firms are increasingly                   or representative of all interventions, they
                       looking at risks and resilience in the context               demonstrate that significant action and
                       of broader sustainability challenges, including              investments are already taking place, with
                       pollution, biodiversity, and greenhouse gas (GHG)            measurable results. They also highlight the
                       emissions. They are also focusing on vulnerable              diversity of interventions, the variability in
                       communities, driven by business and ethical                  indicators and metrics, and the challenges in
                       considerations.                                              systematically measuring their performance
                       In the public sector, governments and local                  and impact and aggregating their results. It
                       authorities are increasingly promoting                       also confirms that adaptation and resilience
                       adaptation and resilience. A first selection of              present a whole-of-society challenge and need
                       case studies in this report, summarized in table             to be mainstreamed in all (public and private)
                       ES.2, emphasizes innovative interventions that               decisions and policies.



TABLE ES.2. OVERVIEW OF CASE STUDIES ON PUBLIC SECTOR-LED A&R PROGRAMS

CASE STUDY       SECTOR(S)        CLIMATE         ADAPTATION POLICY/             RESULTS/OUTCOMES               KEY TAKEAWAYS
                                  HAZARDS/        PROGRAM
                                  RISKS
Bangladesh:      Disaster risk    Flood,          Improving the hydromet         Reducing farmers’ crop         Modernizing hydromet
Building end-to- management       cyclone         services, including            losses due to better           services needs to
end hydromet                                      all parts of the value         weather forecasting from       address sector-specific
services                                          chain, and establishing        4.11% to 0.82%                 needs along the entire
                                                  agrometeorological                                            downstream value chain
                                                  services for farmers                                          to deliver actionable
                                                                                                                information and better
                                                                                                                decision-making
Pacific Island   Transport,       Cyclone,        Regional framework that        Increasing climate             In countries where
Countries:       infrastructure   flood,          mainstreams climate            resilience in 11.2 km roads    resources and capacity
Programmatic,                     landslide,      considerations in transport    (140 km by 2030), airport,     are constrained, a
regional                          sea level       projects in all segments of    bridges, wharves; reducing     regional, programmatic
solutions                         rise, coastal   the transport infrastructure   maintenance expenditure        approach generates
for resilient                     erosion         lifecycle                      by 20% and post disaster       benefits across projects
transport                                                                        rehabilitation costs by 75%    by improving management
                                                                                                                efficiency, reducing
                                                                                                                transaction costs, and
                                                                                                                sharing data and lessons
                                                                                                                learned
Brazil:          Water,           Drought         The First Water Cisterns       Improving water                Promoting decentralized
Infrastructure   infrastructure                   program builds resilience      availability; decreasing the   technologies and services
investment to                                     among the poorest in the       risk of diarrhea episodes      and shifting from drought
build drought                                     face of growing water          by 73%; improving birth        relief/response to building
resilience                                        stress and moves from          weight, neonatal outcomes,     sustainable drought
                                                  relief and response to         and gender equality;           resilience improves water
                                                  building sustainable           delivering an approximate      availability and quality
                                                  coexistence with drought       net gain of $200 per cistern




16
                             RISING TO THE CHALLENGE: SUCCESS STORIES AND STRATEGIES FOR ACHIEVING CLIMATE ADAPTATION AND RESILIENCE




TABLE ES.2. (cont.)
CASE STUDY            SECTOR(S)       CLIMATE      ADAPTATION POLICY/              RESULTS/OUTCOMES              KEY TAKEAWAYS
                                      HAZARDS/     PROGRAM
                                      RISKS
Albania:         Energy,              Drought,      Government mandate to          Providing electricity         The project’s hybrid
Creating an      hydropower           flood         diversify energy sources,      to 66,000 households;         commercialization
enabling                                            focusing on non-hydro          creating jobs in              framework mitigates risks
environment to                                      renewable energy, and          community; contributing       posed by public sector
mobilize private                                    country’s first large-scale    to NDC adaptation priority    dominance in the energy
investment                                          solar photovoltaic project     of climate-proofing energy    sector and sets a model
                                                                                   infrastructure and reducing   for future private sector
                                                                                   GHG emissions                 participation
Bangladesh,           Social          Flood,        Anticipatory and early         Helping alleviate short-      Anticipatory action/
Nigeria, Nepal,       protection,     drought       response programs,             term humanitarian             early response are
and Niger:            disaster risk                 including through national     need by reducing food         more effective than
Adaptive social       financing                     safety net programs,           insecurity: e.g. in Niger,    a traditional, ex post
protection to                                       delivering social protection   the early transfers improve   response in helping people
support poor                                        and financial inclusion by     food security by 8%,          recover from climate
and vulnerable                                      acting ahead of predicted      consumption by 17.6%, and     shocks; they are also more
people                                              hazards; preventing or         psychological well-being      impactful when integrated
                                                    reducing the adverse           by 17.8%                      into comprehensive
                                                    effects of shocks on lives                                   climate resilience
                                                    and livelihoods before the                                   strategies
                                                    impacts fully manifest
India: Saving         Health, urban   Extreme       The Ahmedabad Heat             Preventing 2,380 heat-        Effective emergency
lives with heat-                      heat          Action Plan establishes        related deaths in the first   response to extreme heat
health action                                       key measures for both          two years; reducing deaths    requires clearly defined
plans                                               immediate and longer-          on days with maximum          roles and responsibilities
                                                    term actions to reduce         temperatures of 47°C by       across departments,
                                                    the public health impacts      88%                           elevated public
                                                    of extreme heat, through                                     awareness, and accessible
                                                    early warnings, community                                    information
                                                    outreach, capacity building,
                                                    and the adoption of cool
                                                    roofs
Philippines:          Disaster risk   Cyclone,      Disaster risk finance and      Mobilizing the private        Implementing a
Comprehensive         financing       flood,        insurance (DRFI) strategy      sector through insurance;     comprehensive risk-
financial                             landslide     that ensures sound             improving fiscal              layering strategy takes
preparedness                                        fiscal health at national      resilience; protecting        time; strong ownership
                                                    government level, improves     more households and           is crucial for continuity;
                                                    financial resilience at        farmers, especially the       and engaging the private
                                                    local government level,        most vulnerable; increasing   sector ensures DRFI
                                                    and protects financial         insurance uptake among        instruments protect more
                                                    preparedness at individual     farmers to one-third          people
                                                    level
Vanuatu:              Multiple        Cyclone,      Government’s multipronged      Increasing policy cohesion    Achieving policy
Climate and                           flood,        approach to incorporate        for climate adaptation and    coherence and
disaster-                             landslide     climate and disaster risk      disaster risk management;     coordination is a challenge
resilient                                           and resilience in policies,    strengthening resilience      and requires continued
development                                         legislations, climate-         in project design and         government leadership
                                                    informed investments, and      standards across various      and sustained/long-term
                                                    land-use planning through      sectors                       commitments from all
                                                    institutional strengthening                                  stakeholders
                                                    and policy reform




                                                                                                                                       17
     EXECUTIVE SUMMARY




                          These promising examples of innovation and          This report is only a start. Realizing the full
                          effectiveness from both public and private          impact of policies, private sector initiatives
                          sector actors are already helping communities       and other programs takes time, and it will take
                          and countries better prepare and respond.           decades to fully implement some interventions
                          At the very least, they offer an opportunity        and measure their benefits. The World Bank aims
                          to better understand gaps and barriers, and         to continue collecting, analyzing, and sharing
                          taken together, for replication and learning.       examples of successful (and less successful)
                          This combination offers a way forward: once         climate A&R policies or interventions to inform
                          countries and communities have defined their        decision-making across the world. Through this
                          own priorities according to their objectives,       work, it hopes to spark more discussion among
                          needs, and risks, and have clearly identified and   governments, private sector actors, international
                          selected key gaps, they can use the innovations     financial institutions, development partners,
                          and examples summarized in this report to           and civil society, encouraging them to engage
                          develop their own solutions to accelerate           in the journey of broader coordination and
View of Benjakiti Park,   progress toward more inclusive and resilient        collaboration to support more rapid, inclusive,
Bangkok, Thailand.
                          development, higher adaptation capacity, and        and resilient development.
Credit: © tonbluesman/
istock.com                better and safer lives.




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