Human capital investments are climate investments

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The floods that swept through several regions of Brazil this past May displaced more than half a million people. The floodwaters not only destroyed their belongings but also disrupted their access to electricity, clean water, education, and healthcare. These disruptions have long-lasting effects on human capital, which are crucial for long-term resilience and economic stability.

Climate change is making weather events more extreme, disrupting education, undermining livelihoods, and exacerbating health issues. The numbers are alarming. For instance, heat-related deaths have surged by 68% in the last two decades. If we don’t reduce greenhouse gas emissions, extreme heat could cause more deaths by 2100 than all infectious diseases combined today. 

So, what can we do?

Our recent policy note, “How to Protect, Build, And Use Human Capital to Address Climate Change,” highlights how investing in human capital protects people from the impacts of climate change and empowers them to deliver solutions. The policy note provides an in-depth analysis of climate change’s impacts on people and presents five strategies to better invest in both people and the planet.

1.      Protect people and build resilience with social safety nets

Natural disasters like floods devastate communities, pushing them into poverty and hindering long-term development. Cash transfers and other social assistance aren’t just a first line of defense to protect people from the immediate effects of climate change; they arealso a proactive investment to enhance long-term climate resilience.

In Bangladesh, anticipatory cash transfers reduced food insecurity following flooding by more than one-third. Additionally, cash transfers have other positive multigenerational impacts.  Families can avoid pulling kids out of school, selling off productive assets, or making other decisions that could reinforce cross-generational poverty traps. In Brazil, Colombia, and Mexico, cash transfers increased the likelihood of kids staying in school.

2.      Improve the preparedness and resiliency of health and education services

Teachers, health workers, and infrastructure are critical for the continuity and readiness of service delivery during climate disasters. These services must remain accessible during and after such events.

Staff preparedness and early warning systems help countries prepare for and minimize the impacts of climate change. Energy-efficient designs in schools and hospitals not only reduce carbon footprints but also set a standard for climate-friendly infrastructure. For example, in the Philippines, improved school infrastructure withstands typhoons, protecting educational attainment and future job prospects.

3.      Invest in quality education for climate action

People are at the heart ofclimate action, and education informs how people act.  Both basic and environmental education foster pro-climate beliefs and behaviors in the next generation and influence their parents’ actions. Each additional year of education can significantly boost environmental awareness and advocacy. 

Source: World Risk Poll, 2021

4.      Prepare the workforce through skills development

As we transition to renewable energy, there’s a growing need for a workforce skilled in low-carbon technologies. The demand for these “green skills” is outpacing the supply of qualified individuals. The International Finance Corporation predicts that climate business could create 213 million jobs globally by 2030. To bridge this gap, investing in technical and vocational education and training programs and universities is crucial.

In India, the government established a Skills Council for Green Jobs to identify the skills needed for renewable energy, transport, waste management, construction, and water management. The council also built credibility for new green training modules by integrating them into the National Skills Qualification Framework. The World Bank is partnering with governments across the Middle East to analyze how to create jobs in renewable energy and to identify needed curriculum reforms. 

Source: IFC (2021)

5.      Empower people for green job opportunities

Differences in job tasks, skills, and locations of closing and emerging industries make it difficult for dismissed workers to find immediate new opportunities. Jobs programs for reskilling workers displaced by the move from fossil fuels are essential. A global opportunity is to ensure that women benefit from new jobs created by the climate transition. In Costa Rica, climate-sensitive jobs for women include fostering self-employment in forest conservation and management.  In Tajikistan, boosting women’s employment involves green electrification in solar photovoltaic, small hydro, wind, and battery energy storage systems.  

The right mix of policies depends on country context

Solutions to climate change require investments in people.  Social safety nets and resilient health and education services are often urgent investments for countries already adapting to new and more frequent climate hazards. Education, skills development, and jobs are important investments for green economies globally.

Human capital—protecting it, building it, and using it—must be at the center of climate action. The World Bank’s Human Capital Project is helping countries better invest in people for a more sustainable and inclusive future. This is because investing in human capital is not just an economic strategy, it’s a climate strategy.

source : blogs.worldbank.org