Economics & Development

The number of countries that have announced some type of commitment to net zero emissions has increased very rapidly in recent years, from five in 2018 to over 145 in 2023. Many of these are middle-income countries (MICs) and low-income countries (LICs), whose greenhouse gas (GHG) emissions are concentrated in the power sector. As domestic electricity demand grows, these countries must increase power generation while reducing carbon emissions to meet socioeconomic needs and align with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C. Therefore, the power sector must increasingly rely on low-carbon energy sources. LICs and MICs are therefore considering introducing a range of policies to decarbonize their power sectors, and a growing number of them are considering carbon pricing instruments (CPIs), such as carbon taxes and or emissions trading systems (ETSs) to transition to low-carbon electricity systems, as part of a broader policy mix. A literature review confirms the gaps that exist in developing economies to introduce carbon pricing. This report aims to fill some of the identified knowledge gaps and assess the role that CPIs, specifically carbon taxes and ETSs, can play in supporting decarbonization of the power sector. The report also provides actionable recommendations for policy makers considering implementing a CPI in their countries.

Ratings of the Ghana FIP - Enhancing Natural Forest and Agroforest Landscapes Project for Ghana were as follows: outcome was moderately satisfactory; Bank performance was moderately satisfactory; monitoring and evaluation quality was modest. Decentralized governance and legally backed benefit-sharing mechanisms motivate communities to manage forests sustainably, and these arrangements should be paired with financially viable alternative livelihoods to sustain engagement and reduce pressure on forests. A holistic, coordinated approach such as integrated landscape management (ILM) that balances conservation and economic objectives, combines policy reforms with investment packages, manages trade-offs among competing land uses, and aligns the efforts of multiple institutions is necessary to address complex drivers of deforestation. Preventing forest degradation from artisanal small-scale gold mining (ASGM) is more cost-effective and sustainable than rehabilitating mined-out areas; future efforts should prioritize legal, regulatory, and enforcement frameworks that protect forests from mining, complemented by inclusive landscape management. A robust monitoring, reporting, and verification (MRV) system with comprehensive baselines, sound methodologies, and independent analysis is essential to ensure credible estimates of forest cover and greenhouse gas outcomes, to demonstrate economic, environmental, and social benefits, and to underpin access to results-based finance and participation in carbon markets. Mainstreaming implementation into government systems strengthens institutional capacity and enhances sustainability, but it may slow early progress; therefore, projects should balance timely delivery with institution building and conduct thorough institutional assessments to identify capacity gaps and mitigation measures from the outset.

The 2024 Annual Meetings of the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), the International Development Association (IDA) Boards of Governors, the Multilateral Investment Guarantee Agency (MIGA) Council of Governors, the International Centre for the Settlement of Investment Disputes (ICSID) Administrative Council, held jointly with that of the International Monetary Fund (IMF or Fund) Board of Governors, took place on October 25, 2024 in Washington, DC. His Excellency Ahmed Munawar, Governor of the Maldives Monetary Authority and Governor of the Bank and the Fund for Maldives, served as the Chair. In a joint Plenary Session with the Board of Governors of the Fund, the Boards of Governors considered and adopted reports and recommendations submitted by the Executive Directors, and decided on matters raised during the Meeting. These Summary Proceedings outline the work of the Annual Meetings and the final decisions taken by the Boards/Council of Governors. Texts of statements by Governors submitted during the time of the Annual Meetings are available on the Documents & Reports webpage, the World Bank’s official repository for publicly disclosed documents