What we committed
At COP28, the Multilateral Development Banks (MDBs) committed to develop a common approach for reporting climate results ¨C so that we not only measure the volume of dollars spent on climate action, but also the impact of our financing. This was the first time a joint approach to look at MDB results had been presented.
What we delivered
At the 2024 World Bank Group Spring Meetings, the MDBs released the Common Approach to Measuring Climate Results ¨C presenting a common structure to measuring climate results: a framework to define, measure, and link global progress on climate mitigation and adaptation with MDB results.
The Common Approach consists of three levels: i) global and country context; ii) results from operations; and iii) institutional efforts. It reflects a bottom-up approach that links MDB finance and wider resources to results from operations to global and country progress.
Impact
The Common Approach supports MDB ambition to move from strategic decision-making focused on financial deliverables to a view of results on the ground. It will provide stakeholders with a clearer view of MDB climate results and enhance consistency in measuring results across MDBs. This approach complements existing individual MDB frameworks and is aligned with the new World Bank Group Corporate Scorecard.
MDBs will be able to better measure the number of beneficiaries of their projects that build resilience, for instance, those benefitting from climate resilient food and agriculture systems. They will also be able to measure the greenhouse gas emission reductions supported by their projects, while measuring progress in areas such as the amounts of renewable energy capacity enabled and the amount of terrestrial and aquatic areas supported by projects with sustainable practices.
The Common Approach will support more informed risks and boost incentives to draw in more finance from all sources. It can also support countries and clients to measure their own efforts and results more effectively, making it easier for them to identify and address policy bottlenecks and track private sector investment opportunities.
Next steps
At COP29, the MDBs will release an update to the Common Approach. This note expands on the Spring Meetings publication by providing:
- A set of common indicators that MDBs can apply to track climate impact for adaptation and resilience, mitigation, and country and client transition support.
- A definition for each common indicator, including the metric used to track the indicator and a summary of what the indicator captures.
- High-level methodological principles to shape the indicators and their definitions.
Following COP29, MDBs will work to operationalize these indicators within the context of their mandates and institutional data collection and reporting systems. They will continue to refine and adjust the indicators through lessons learned and collaboration. This process will also be informed by further dialogue with stakeholders, advances in relevant technical areas, and evolving global reporting standards.