The issue of climate change must be urgently addressed as it threatens economic growth of all countries, the World Bank said Sunday in its World Development Report 2010.

Developing countries would be the most vulnerable to the climate change as they would bear some 75 to 80 percent of the costs of damages caused by the changing climate, the report said.

"Even 2 degree centigrade warming above preindustrial temperatures -- the minimum the world is likely to experience -- could result in permanent reductions in GDP of 4 to 5 percent for Africa and South Asia," the report said.

Most developing countries lack sufficient financial and technical capacities to manage increasing climate risk, and they also depend more directly on climate-sensitive natural resources for income and well-being, it said.

The report concluded that an equitable and effective global climate deal is needed, which would recognize the varying needs and constraints of developing countries and assist them with the finance and technology to meet the increased challenges to development.