Creating an Enabling Environment for Climate Action

Climate change has traditionally been addressed in a bottom-up, project-based way, through sectors such as energy, transport, and agriculture. However, climate change is not confined to these sectors alone, but increasingly involves more expansive macroeconomic areas such as fiscal policy, the financial sector, industrial policy, trade, and private sector development, while ensuring a just transition.

The Whole of Economy Program is dedicated to undertaking transformational and cross-sectoral changes that create an enabling environment for countries to deliver on their nationally determined contributions (NDCs) and long-term strategies (LTSs). The program recognizes not just the urgency but also the scale required for impactful and credible climate action. It fulfills its objectives through two primary methods:

  • Strengthens the analytical basis and diagnostics to support effective policy advice on issues relating to a whole-of-economy approach to climate change.
  • Improves the capacity of client countries to design and implement climate considerations into their macroeconomic, fiscal, financial, trade and private-sector development policies.
infographic of the Whole of Economy Approach to Climate Action

Infographic: Whole of Economy Approach to Climate Action

Targeted Sectors

The ambitious Whole of Economy Program – the only one of its kind at scale – has grown in just two years to support over 140 projects at the country, regional and global levels. It focuses on bringing about reforms in seven key areas:

  1. Fiscal instruments and fiscal risk
  2. Greening private and public finance
  3. Innovation and industrial development
  4. Trade policy
  5. Institutions
  6. Social change, equity, and just transition
  7. Macro-critical aspects of climate change

Impacts and Results

  • Scaled up climate analytics globally and at country level​, helped develop analytical tools, climate-informed diagnostics and comprehensive training.
  • Enhanced capacity of governments and policy makers to formulate and implement effective climate reforms at country, regional and global level.
  • Fostered innovation to mainstream climate action, introduced climate considerations into key sectors, created catalytic impact throughout 'real economy' sectors vital to climate (e.g., energy).
  • Influenced World Bank lending operations by providing analytical underpinnings for key climate reforms and investments 
  • Enhanced engagement with Coalition of Finance Ministers for Climate Action.
By the Numbers*
56
countries supporting
55
lending operations
79
analytical products supported
30
completed climate-informed diagnostics
93
ongoing climate-informed diagnostics
38
capacity building/training initiatives delivered
13.65
approved operations supporting climate change action
billion (USD)
8.5
in pipeline
billion (USD)

*Data as of July 1, 2024

Partnerships

Coalition of Finance Ministers for Climate Action

The Whole of Economy Program was instrumental in the expansion of the Coalition of Finance Ministers, which connects fiscal and economic policy makers to lead the global climate response and secure a just transition for low-carbon, resilient development. The World Bank hosts the secretariat to the Coalition of Finance Ministers for Climate Action through the Climate Support Facility.

 

C3A: Coalition for Capacity on Climate Action

The Coalition for Capacity on Climate Action (C3A) is a World Bank initiative supported by the Whole of Economy program. The initiative has identified the needs of government counterparts (primarily at ministries of finance and economy), on climate knowledge and skills and is now delivering the learning and capacity. It employs an integrated two-level framework with a capacity creation program and a knowledge network. The program is:  

  • demand-driven
  • addresses beneficiary needs
  • adopts a coordinated regional and thematic approach
  • a platform for partners, researchers and institutions to join forces

 

C3A supports countries, governments and ministries

  • 5 regional hubs – share common challenges and leverage local partners (Latin America, Central Asia, Africa, South Asia, South-East Asia)
  • 5 thematic hubs – help compare different solutions to face a critical challenge and promote knowledge retention and dissemination (climate smart analytical toolbox, green innovation, fiscal policy and debt, nature transition, adaptation)
  • Capacity building activities – demand assessments, publications and outreach, training activities and materials, peer-to-peer exchanges
  • Building upstream knowledge – tools developed under C3A
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