This guidance note aims to highlight the general ingredients for a successful Poverty and Social Impact Analysis (PSIA) and political economy analysis in climate change Development Policy Operations (DPOs) and to demonstrate that integrating a strong social perspective into DPOs and climate change strategies will contribute to effective, pro-poor actions at the national and sub national levels. The objectives of this note are to facilitate the understanding of social and poverty impacts of climate change and climate action and team members with a climate change background; and provide an overview of key issues and challenges of climate change operations to team members tasked with poverty and social analysis. It complements existing resources on poverty and social impact analysis and political economy analysis in DPOs by providing an overview of the specific issues arising in the analysis of the distributional impacts of climate change policy measures. Highlighting social risks and opportunities, and their costs, can enable clients to make more accurate assessments of the true costs of mitigating and adapting to climate change and to better target World Bank support to the poor and vulnerable.