World Bank Global Knowledge and Capacity Building Program: Public Financial Management for Climate-Resilient Infrastructure

The World Bank's 'Public Financial Management for Climate-Resilient Infrastructure' program is a landmark initiative that recognizes the foundational role of sound fiscal governance in building a climate-safe future. It is not merely a funding opportunity but a comprehensive technical assistance platform designed to transform how governments plan, budget, and oversee public investments in infrastructure. The program confronts a critical reality: while billions of dollars are allocated to infrastructure annually, insufficient attention is paid to whether these investments are resilient to climate shocks or whether they inadvertently increase vulnerability. For example, a road built without considering increased flood risks would wash away, representing wasted resources and increased hardship. This program addresses such failures by strengthening the PFM processes that govern infrastructure spending. It targets ministries of finance, planning, and line ministries responsible for sectors like water, transport, energy, and urban development. The overarching objective is to create a pipeline of bankable, climate-resilient infrastructure projects by integrating climate concerns into every step of the public investment cycle. The World Bank will provide expert advisors, diagnostic tools such as the PEFA Climate module, and knowledge products like the Climate Budgeting Handbook. Applicants are expected to champion reforms and demonstrate a clear mandate from the highest levels of government. With a deadline of September 1, 2026, the program offers a tight but manageable timeline to prepare a robust application. The urgency of this program is underscored by the accelerating pace of climate change and the significant infrastructure deficits in developing countries. According to the Global Commission on Adaptation, investing $1.8 trillion globally in climate adaptation from 2020 to 2030 could yield $7.1 trillion in net benefits. However, without strong PFM systems, such investments are unlikely to materialize or be effective. The program aims to bridge this gap by equipping governments with the tools to make climate-informed decisions. For instance, it will support the adoption of climate budget tagging, which tracks expenditures that contribute to climate goals, enabling better planning and reporting. It will also promote the use of cost-benefit analysis that includes climate risk scenarios, ensuring that projects are robust under different climatic futures. Additionally, the program will facilitate knowledge sharing among countries through South-South exchanges, allowing successful reforms to be replicated. From a geopolitical perspective, the program aligns with the World Bank's evolution to become a 'better bank' that addresses global challenges, including climate change. It also responds to calls from developing countries for greater support in meeting their Nationally Determined Contributions (NDCs) under the Paris Agreement. This overview would not be complete without considering the institutional readiness required. Applicants must not only have a strategic interest but also the operational capacity to implement complex reforms over three to five years. This includes having a cross-sectoral team with skills in finance, climate science, and project management. The World Bank expects full commitment from the highest levels of government, often requiring a letter from the minister of finance affirming support. The program also encourages involvement from civil society and the private sector to ensure transparency and accountability. In summary, this is not a typical grant but a partnership aimed at systemic change. The benefits extend beyond the direct project outcomes: countries that successfully participate will be better positioned to access climate finance from other sources, including the Green Climate Fund and multilateral development banks. Therefore, this program represents a strategic opportunity for institutions to catalyze broader climate action.

Strategic Overview

The World Bank's 'Public Financial Management for Climate-Resilient Infrastructure' program is a landmark initiative that recognizes the foundational role of sound fiscal governance in building a climate-safe future. It is not merely a funding opportunity but a comprehensive technical assistance platform designed to transform how governments plan, budget, and oversee public investments in infrastructure. The program confronts a critical reality: while billions of dollars are allocated to infrastructure annually, insufficient attention is paid to whether these investments are resilient to climate shocks or whether they inadvertently increase vulnerability. For example, a road built without considering increased flood risks would wash away, representing wasted resources and increased hardship. This program addresses such failures by strengthening the PFM processes that govern infrastructure spending. It targets ministries of finance, planning, and line ministries responsible for sectors like water, transport, energy, and urban development. The overarching objective is to create a pipeline of bankable, climate-resilient infrastructure projects by integrating climate concerns into every step of the public investment cycle. The World Bank will provide expert advisors, diagnostic tools such as the PEFA Climate module, and knowledge products like the Climate Budgeting Handbook. Applicants are expected to champion reforms and demonstrate a clear mandate from the highest levels of government. With a deadline of September 1, 2026, the program offers a tight but manageable timeline to prepare a robust application. The urgency of this program is underscored by the accelerating pace of climate change and the significant infrastructure deficits in developing countries. According to the Global Commission on Adaptation, investing $1.8 trillion globally in climate adaptation from 2020 to 2030 could yield $7.1 trillion in net benefits. However, without strong PFM systems, such investments are unlikely to materialize or be effective. The program aims to bridge this gap by equipping governments with the tools to make climate-informed decisions. For instance, it will support the adoption of climate budget tagging, which tracks expenditures that contribute to climate goals, enabling better planning and reporting. It will also promote the use of cost-benefit analysis that includes climate risk scenarios, ensuring that projects are robust under different climatic futures. Additionally, the program will facilitate knowledge sharing among countries through South-South exchanges, allowing successful reforms to be replicated. From a geopolitical perspective, the program aligns with the World Bank's evolution to become a 'better bank' that addresses global challenges, including climate change. It also responds to calls from developing countries for greater support in meeting their Nationally Determined Contributions (NDCs) under the Paris Agreement. This overview would not be complete without considering the institutional readiness required. Applicants must not only have a strategic interest but also the operational capacity to implement complex reforms over three to five years. This includes having a cross-sectoral team with skills in finance, climate science, and project management. The World Bank expects full commitment from the highest levels of government, often requiring a letter from the minister of finance affirming support. The program also encourages involvement from civil society and the private sector to ensure transparency and accountability. In summary, this is not a typical grant but a partnership aimed at systemic change. The benefits extend beyond the direct project outcomes: countries that successfully participate will be better positioned to access climate finance from other sources, including the Green Climate Fund and multilateral development banks. Therefore, this program represents a strategic opportunity for institutions to catalyze broader climate action.

Who is it For?

This program is designed for central and sub-national government agencies, ministries of finance, planning, public works, and environmental affairs in World Bank client countries. Eligible entities must be official public sector institutions with a mandate over public financial management, infrastructure planning, or climate policy. Specifically, the program targets countries that are classified as IDA-eligible or IBRD blend countries, with a preference for those with high climate vulnerability and low adaptive capacity. Organizations such as national treasury departments, budget offices, and sectoral ministries overseeing water, transport, energy, and urban development are typical candidates. Additionally, think tanks and research institutes can participate as implementing partners if they are affiliated with a government agency. The program excludes private sector entities and NGOs unless they are formally mandated by the government. To qualify, the institution must have a proven track record in managing World Bank-funded projects, including fiduciary compliance under World Bank procurement and financial management guidelines. The program also welcomes regional organizations like the African Development Bank, but only when they collaborate with national governments. In summary, the ideal applicant is a government entity with a clear reform agenda, senior political backing, and the absorptive capacity to coordinate multi-stakeholder input.

Priorities

The World Bank’s primary priorities for this program revolve around strengthening the credibility, transparency, and climate-sensitivity of public financial management systems globally. Specifically, the donor seeks to: (1) Integrate climate risk assessments into all stages of the public investment cycle, from project appraisal to ex-post evaluation. (2) Enhance the capacity of ministries of finance to use climate-informed fiscal frameworks for annual budgeting and medium-term expenditure frameworks. (3) Promote the adoption of green budgeting tools, such as tagging climate expenditures and establishing performance indicators related to resilience. (4) Foster good governance in infrastructure procurement, ensuring that climate-resilient design and lifecycle costing are applied. (5) Support regulatory reforms that enable private sector investment in resilient infrastructure through public-private partnerships. Key performance indicators include the number of pilot projects adopting new PFM tools, the percentage increase in climate-related capital expenditure, and improvements in the Public Expenditure and Financial Accountability (PEFA) climate responsiveness scores. Additionally, the donor expects knowledge dissemination through South-South learning exchanges and peer-to-peer networks. The program also prioritizes gender-responsive budgeting to ensure that climate actions address differential impacts on women. Cross-cutting themes include digitalization of PFM processes, anti-corruption measures, and alignment with the Sustainable Development Goals (SDGs), especially SDG 9 (industry, innovation and infrastructure), SDG 11 (sustainable cities and communities), SDG 13 (climate action), and SDG 16 (peace, justice and strong institutions).

Eligibility

Eligibility requires conducting a financial and spatial audit. Financially, the applicant institution must have a stable budget with no material audit findings from previous World Bank projects. The country must be a member of the World Bank and not under sanctions. A minimum of 20% co-financing from government own resources is expected, either in cash or in-kind (e.g., staff time, office space). The institution must have a demonstrated absorptive capacity to manage at least $500,000 in technical assistance funds. Spatially, the program targets countries in Sub-Saharan Africa, South Asia, East Asia and Pacific, Latin America, and the Caribbean, with a focus on small island developing states and least developed countries. Legally, the applicant must have a valid legal status as a public entity, with no pending litigation with the World Bank. A resolution from the cabinet-level authority endorsing the reform agenda is mandatory. Additionally, the team must include a qualified financial management specialist with at least 10 years of experience in PFM reforms, and a climate change specialist. The World Bank requires a gender policy in place. Cross-cutting requirement: The institution must commit to publishing fiscal transparency reports and open budget data.

Path to Success

Step 1: Strategic Alignment and Core Team Formation (Months 1-2) – Immediately assemble a cross-departmental steering committee led by the Ministry of Finance, including representatives from line ministries (e.g., Public Works, Environment) and the national planning authority. Conduct a baseline assessment of existing PFM frameworks, identifying gaps in climate risk integration. Enroll key staff in GSLI’s 'Financial Management for NGOs' and 'Monitoring & Evaluation (M&E)' courses to build core competencies in results-based management and fiduciary controls. These courses provide practical tools for structuring program budgets, tracking climate-related expenditures, and designing M&E frameworks aligned with World Bank standards. Step 2: Develop a Comprehensive Project Concept Note (Months 3-4) – Draft a concept note detailing the proposed capacity building activities, target outcomes, and institutional reforms. Employ a theory of change mapping PFM reforms to climate resilience outcomes. Use insights from GSLI's 'Writing Winning Proposals' course to ensure the narrative is compelling, data-driven, and aligned with donor expectations. The concept note should include a stakeholder engagement plan, a preliminary budget with 20% government co-financing, and a risk assessment matrix. Step 3: Pre-Application Technical Support and Capacity Strengthening (Month 5) – Before the final submission, send key personnel for GSLI's 'Grants Management' training to enhance skills in fund utilization, procurement compliance, and reporting. This course directly addresses World Bank’s financial management requirements. Also, conduct a simulation of the application process with peer reviewers. Step 4: Submit Full Proposal and Prepare for Negotiation (Months 6-7) – Submit the final proposal via the World Bank’s e-procurement system by September 1, 2026, including signed letters of commitment, detailed work plan, and budget. Post-submission, remain ready for clarifications and negotiations. GSLI's alumni community can serve as a network for best practices.

Recommended GSLI Courses

Deadline: 2026-09-01

Persona: General

Urgency: Normal