The World Bank has called for immediate, people-focused strategies to tackle the interconnected challenges of poverty and climate change.

In its latest report, People in a Changing Climate: From Vulnerability to Action, the bank emphasized the need for investments in resilience, adaptation, and low-emission development to shield vulnerable populations.

The report, released Wednesday, compiles insights from three years of Country Climate and Development Reports (CCDRs) covering 72 nations and economies.

It stresses that while climate change poses risks to all, poorer communities are disproportionately vulnerable to irreversible impacts.

“People are both the most vulnerable to climate change and the most critical to driving solutions,” the report stated.

The findings reveal that lower-income nations face labor productivity losses of approximately 6% by 2050 due to climate effects, compared to just 0.2% in wealthier nations.

The World Bank highlighted that investments in education, health, social protections, etc, are vital to help people adapt and thrive amid climate challenges.

“Centering people in climate-development policies not only enhances their effectiveness but also promotes inclusive economic growth,” the report noted.

The bank underscored the importance of building resilient infrastructure—including power, water, transportation, and digital systems—to support economic productivity and well-being.

It also pointed to the benefits of expanding renewable energy, improving public transit, and increasing access to electricity.

“Every dollar invested in resilient infrastructure generates benefits worth twice the initial investment,” the report highlighted.

With rapid urbanization presenting both challenges and opportunities, the World Bank stressed the potential of developing low-emission, climate-resilient cities to drive sustainable economic growth.

Delayed action, however, could lock nations into unsustainable development pathways.

The report highlighted the unique challenges faced by small island nations, which are particularly exposed due to geographic and economic constraints.

Additionally, it found that for every $1,000 increase in GDP per capita, climate-induced GDP losses in 2050 could drop by 0.5 to 0.7 percentage points, illustrating the link between economic growth and climate resilience.

Reducing greenhouse gas emissions remains a priority for all nations, with high-income countries and major emitters bearing significant responsibility.

To meet climate goals, CCDR nations require additional investments averaging 1.4% of GDP annually, with low-income countries needing over 5%.

While private investment can play a role, the bank emphasized the necessity of public financing, improved efficiency, and international support.

The World Bank described CCDRs as tools to align climate and development objectives, with early reports already influencing national strategies and international programs.

A companion report, From Knowledge to Action, showcased examples of CCDR-driven policies.

“By prioritizing people in climate strategies and involving communities from the outset, nations can achieve a green transition that enhances lives and fosters inclusive growth,” the report concluded.