Towards a World Bank Group Strategic Framework on Climate Change and Development

Warren Evans, Director, Environment Department The World Bank

Objective of Consultations
Listen to views Better integrate perspectives of diverse stakeholders Facilitate consensus on the World Bank Groups role

Climate Change is a Development Issue

The poorest countries stand to suffer the earliest and the most Developing countries are already being affected Achievement of the Millennium Development Goals is at risk Development gains are also at risk

Developing Countries Are Most At Risk

6 Climate Threats
Drought
Malawi Ethiopia Zimbabwe India Mozambique Niger Mauritania Eritrea Sudan Chad Kenya Iran

Flood
Bangladesh China India Cambodia Mozambique Laos Pakistan Sri Lanka Thailand Vietnam Benin Rwanda

Storm
Philippines Bangladesh Madagascar Vietnam Moldova Mongolia Haiti Samoa Tonga China Honduras Fiji

Coastal 1m
All low-lying Island States Vietnam Egypt Tunisia Indonesia Mauritania China Mexico Myanmar Bangladesh Senegal Libya

Coastal 5m
All low-lying Island States Netherlands Japan Bangladesh Philippines Egypt Brazil Venezuela Senegal Fiji Vietnam Denmark

Agriculture
Sudan Senegal Zimbabwe Mali Zambia Morocco Niger India Malawi Algeria Ethiopia Pakistan

Low Income
Middle Income

Source: World Bank

World Bank Group Experience Some Highlights

1992 Began implementing / leveraging GEF funding for climate change mitigation over 15 years experience 1999 Pioneered Carbon Finance through $180 million Prototype Carbon Fund now over $2 billion in funds and two new pioneering facilities 2001 Adopted Environment Strategy with climate change pillar Initiated focus on impacts and adapation in poorer countries 2005 Bonn Commitment to renewable energy and energy efficiency exceeded commitment 2006-08 Clean Energy Investment Framework (CEIF):
Substantial inrease in technical and financial assistance for: (i) access to energy; (ii) low carbon energy; and (iii) adaptation.

2007 IFC adopts Climate Change Action Plan with clean energy growth targets 2007 - IDA and Climate Change Paper 2008 SFCCD

Key Progress to Date

Access and Low Carbon Energy (1)
Cumulative energy commitments of over US$11 billion for FY06FY08 to date are 57% higher than the energy lending in FY0305. Energy financing to IDA countries also increased significantly, from annual average of US$0.9 billion between FY03 and FY05 to an annual average of US$1.8 billion between FY06 and FY07. But energy access remains a policy and financing challenge in all regions, especially in SSA. Share of support for low-carbon energy projects up from 28% in FY0305 to 40% since Gleneagles. GEF and Carbon Finance contributed US$546 million, or 13 percent. 6

Key Progress to Date

Access and Low Carbon Energy (2) RE and EE for the period FY05 to H1FY09 was US$2.3 billion, exceeding Bonn commitment 1.5 years ahead of schedule CEIF low-carbon work extended to other sectors, such as transport and urban sectors, showing good potential. Two new Carbon FacilitiesCPF and FCPF approved in September 2007 Pilot program to begin measuring GHG emissions of the WBG lending portfolio is underway.

Key Progress to Date

Carbon Finance Now managing 10 carbon funds, and over US$2 billion BioCarbon Fund: including for Reducing Emissions from Deforestation and Degradation (REDD) at the project level Community Development Carbon Fund (CDCF): to enable poorer communities to access carbon finance 16 countries and 66 private sector companies have made contributions to funds
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How we will develop a comprehensive strategic framework to address climate change

Neutrality to UNFCCC Negotiations Flexibility to Accommodate New Developments Working with Multiple Partners Inclusive and Consultative Process

SFCCD is about development in the context of climate change

Priority of growth, poverty reduction and MDGs

Importance of meeting energy needs of developing countries Development imperative of helping to adapt to climate risks Resource mobilization in addition to the current ODA levels
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6 Pillars
1. Make effective climate action both adaptation and mitigation part of core development efforts 2. Address the resource gap through existing and innovative instruments for concessional finance 3. Facilitate the development of innovative market mechanisms 4. Create enabling environment for and leveraging private sector finance 5. Accelerate the deployment of existing and development of new climate-friendly technologies 6. Step-up policy research, knowledge management and capacity building
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Consultations
SFCCD requested at Annual Meetings 2007 as evolution of CEIF Through March 2008: Concept and issues development, early consultations April June 2008: Consultations on draft concept and issues paper July October 2008: Consultations on draft final paper 2008 ~ beyond: Consultations on implementation
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Consultations

Developing countries, UN agencies (UNFCCC, UNEP, UNDP, etc.), donors, CSOs, private sector, youth
Multisector
In all regions
Web-based; videoconferencing; teleconferences; faceto-face

Internal consultations underway

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1.

[Global] What should the World Bank Groups role on climate change be within the international development community?

2.

[Climate & Development] The Concept and Issues Paper states that both mitigation and adaptation must be integrated into development efforts: where do you see the key areas of focus for the World Bank Group?
[Clean Technologies] What role can the World Bank Group play to accelerate the development and deployment at scale of climate friendly technologies for energy, transport, agriculture and other sectors in developing countries? [Capacity Building] Building capacity within countries, regions and institutions will be crucial to address climate change issues. How can the World Bank Group contribute? [Additional Financing] What should be the role of the World Bank Group in mobilizing additional concessional financing and private sector investments to respond to climate change?
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www.worldbank.org/climateconsult

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