Without strong action, climate change could cut Uganda’s economic growth by up to 3.1% by 2050, pushing more than 613,000 people into poverty and turning 12 million more into internal migrants.
The Country Climate and Development Report (CCDR) for Uganda, published by the World Bank Group and launched today in Kampala, examines the country’s vulnerability to climate change and outlines interventions to mitigate its impacts.
The report highlights serious risks from climate change, including a drop in overall labour productivity up to 2.4% due to heat stress, threats to 21% of the electricity network, and annual road damages costing as much as $26 million.
To address these challenges, it recommends a shift toward climate-resilient, low-carbon growth through coordinated actions across sectors, focusing on building resilience among Uganda’s youth and low-income earners while strengthening agriculture, energy, infrastructure, and urban development.
“Uganda faces a critical moment as the 14th most climate-vulnerable country,” said Qimiao Fan, World Bank Division Director for Kenya, Rwanda, Somalia, and Uganda. “Climate action is not only essential but offers an opportunity to redefine the country’s development trajectory. The CCDR provides a roadmap for integrating climate consideration into national policies and investments, ensuring that growth is sustainable, inclusive, and climate resilient.”
To achieve climate-positive growth, the report recommends four multisectoral intervention packages, backed by economy-wide measures and strong private sector engagement.
“Private investment in climate-smart agriculture, solar irrigation, renewable energy, e-mobility, and green building can enhance food security, energy access, and livable cities—while creating jobs and driving economic growth,” said Mary Porter Peschka, International Finance Corporation (IFC) Division Director for Eastern Africa. “By fostering private engagement in climate-resilient projects, Uganda can build a greener and more prosperous future.”
The report recommended four intervention packages.
One approach is to enhance resilience through targeted job creation for youth and the provision of essential services to the poor. This involves expanding shock-responsive social protection, digital financial services that include insurance, and ensuring access to water, sanitation, hygiene, and climate-resilient health systems. Promote education and job placement for climate-resilient occupations.
Two, advance sustainable agriculture and natural resources: Increase irrigation without depleting water sources; improve livestock productivity while reducing methane emissions; protect natural resources; reduce unsustainable firewood use and charcoal production; and accelerate the adoption of clean cooking technologies.
Three, invest in climate-smart infrastructure: Scale renewable energy (hydro, solar) to meet growing demand; expand climate-resilient transport and digital connectivity to underserved populations; support sustainable mining of energy transition minerals; and improve logistics and transport infrastructure systems to leverage in a low-carbon economy.
Four, plan for climate-positive urbanisation: Incorporate climate change projections and risks into urban planning and infrastructure design; support decentralisation of decision-making regarding climate action; promote e-mobility, green building materials, and better transport systems to reduce greenhouse gas emissions.
The report also called for coordinated climate action across government, the private sector, communities and partners.
Key actions include implementing Uganda’s National Climate Finance Strategy, integrating climate considerations into public procurement, public-private partnerships, fiscal policies, and financial regulations, strengthening disaster risk management and legal frameworks for crisis management, adapting trade policies to access international and regional markets for low-carbon goods and services, expanding real time climate data collection and early warning systems and making them user friendly for households, communities, and firms and enhancing private sector engagement through carbon markets, green finance, affordable insurance, and innovative climate financing.
