Santo Domingo.- World Bank report highlights the potential of Dominican Republic’s climate action for economic growth and poverty reduction.
Today, the World Bank released a report emphasizing the transformative potential of climate action. This action can boost economic growth and reduce poverty levels in the Dominican Republic. To achieve its ambitious goal of achieving net-zero emissions by 2050, the Dominican Republic must undertake more ambitious mitigation and decarbonization efforts across all sectors of its economy. This includes implementing strategies to reduce pollution, safeguard biodiversity, strengthen public health, and create green job opportunities in key sectors such as agriculture, energy, and tourism.
The National Climate and Development Report (CCDR) for the Dominican Republic, part of the World Bank Group, highlights the risk that the projected impacts of climate change pose to the nation’s development achievements. By 2050, climate change is expected to have a significant effect on public health, infrastructure, and natural ecosystems, including forests and coastal areas. Crop yields could decline by up to 30 percent and poverty rates could increase. Without adaptation measures, the country could potentially lose up to 16.7% of its GDP compared to a scenario without climate change impacts. This would be driven primarily by lower tourism demand, an increase in tropical storms and flooding, and lower labor productivity due to rising temperatures caused by climate change.
The report highlights that the Dominican Republic can align its climate and development objectives, benefiting both its citizens and the economy, despite substantial financial requirements.
Alexandria Valerio, World Bank Representative for the Dominican Republic, said: “The Dominican Republic’s Vision 2030 places climate and development at its center, with a strong focus on carbon neutrality, mitigation of economic and fiscal impacts of climate change, safeguarding critical infrastructure, and ensuring a better future for its people. The World Bank remains committed to supporting the country’s efforts to improve economic resilience, reduce vulnerability, and accelerate the decarbonization of its economy.”
As electricity constitutes the largest source of emissions in the country, the report recommends taking measures for a low-carbon development trajectory. These measures include replacing coal-based power generation, investing in renewable energy sources, and decarbonizing transportation and industrial processes. The report also suggests improving practices in agriculture, forestry and land use, as well as reducing emissions in the waste sector.
Carolina Cárdenas, Resident Representative for the Dominican Republic and Haiti at the International Finance Corporation (IFC), the private sector arm of the World Bank Group, emphasized: “The private sector plays a fundamental role in the Dominican Republic’s coordinated transition to a more resilient economy, inclusive, low-carbon future. In line with this, IFC is actively supporting the development of the country’s green taxonomy, a framework designed to help investors and businesses make informed decisions about sustainable economic activities using standardized terminology.”
Private capital will be essential to meet the Dominican Republic’s climate financing requirements. This will involve leveraging the new Public Private Partnership framework for investments in infrastructure and tourism, exploring available lines of credit and catastrophe bonds, increasing insurance coverage in agriculture, developing affordable microinsurance products for low-income households, and promoting greater use of technology in risk assessment.