The Committee on Development Effectiveness met to consider the report Creating an Enabling Environment for Private Sector Climate Action: An Evaluation of World Bank Group Support, Fiscal Years 2013–22, and the World Bank Group management response.

The committee welcomed the report noting its timeliness and relevance in the context of the World Bank Group evolution roadmap discussion. They noted the Bank Group’s achievements and the challenges toward improving an enabling environment for private sector climate action, the need to mobilize private capital beyond the energy sector into other major sectors such as transport and agriculture, and the importance of establishing robust outcome and impact indicators to measure achievements in implementing private sector climate action.

Members expressed their full support for Independent Evaluation Group recommendations and encouraged Bank Group management to implement them in advancing the climate agenda. Members stressed the importance of articulating realistic longer-term financing strategies for climate action in country climate diagnostics, including the Country Climate and Development Reports. While members recognized that creating an enabling environment for private sector engagement in addressing climate change is a complex agenda, they encouraged management to explore ways in which private sector capital can be enabled and mobilized to support climate change adaptation efforts. They underscored the importance of developing standardized private sector business models for various sectors including public transport, agribusiness, and technology, and encouraged management to support scalable projects as needed. In addition, members appreciated management’s efforts to improve climate metrics in the context of the new Bank Group Corporate Scorecard. Members also stressed the importance of effective and strong collaboration between the World Bank and International Finance Corporation in attracting and mobilizing private capital to invest in climate action and to deliver results.