As the World Bank undergoes a change in leadership and prepares to adapt its mission to address global warming, it should not only provide financial resources, but also enhance its ability to generate evidence-based solutions and bring them to policymakers’ attention. As a guiding example, research by Esther Duflo, co-founder and co-director of the Abdul Latif Jameel Poverty Action Lab (J-PAL) in India pointed out that, contrary to common belief, India has some of the strictest environmental regulations in the world, but lacks the ability to enforce them. Duflo's team show how devising proper mechanisms to address weak state capacity, unreliable contract enforcement and institutional corruption can significantly improve emission outcomes. It is here, in the design and implementation of policies to address institutional shortcomings, that the World Bank could add enormous value, in addition to investing in renewable energy and other climate-friendly technologies.
