76240 V1 DEVELOPMENT AND CLIMATE CHANGE A Strategic Framework for the World Bank Group Completion REPORT FY09–11 DEVELOPMENT AND CLIMATE CHANGE A Strategic Framework for the World Bank Group Completion REPORT FY09–11 June 2012 A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T iii CONTENTS 1. Context 1 2. A Changing Global Context 2 3. Achievements and Lessons 4 Action Area 1: Support Climate Actions in Country-led Development Processes 4 Action Area 2: Mobilize Additional Concessional and Innovative Finance 6 Action Area 3: Facilitate the Development of Market-based Financing Mechanisms 9 Action Area 4: Leverage Private Sector Resources 10 Action Area 5: Support Accelerated Development and Deployment of New Technologies 11 Action Area 6: Step Up Policy Research, Knowledge, and Capacity Building 12 4. Where We Are Headed 14 Climate Readiness 14 Knowledge 16 Partnerships 17 Finance 18 Measuring Progress  19 5 Conclusion 21 List of Abbreviations and Acronyms 22 List of Boxes Box 1. The “Durban Package� 2 Box 2. Highlights of the World Bank Group’s Implementation of the SFDCC (FY2009–11) 5 Box 3. IEG Review on Mitigation 6 Box 4. The Climate Investment Funds (CIF) 8 Box 5. infoDev and Innovation in Climate Technologies 12 Box 6. Climate Risk Screening 15 iv D E V E LO PM E N T A N D C L I M AT E C H A N G E Annexes (separate document) Annex 1. Highlights of WBG Engagement across the SFDCC Action Areas 1 Annex 2. Implementation Progress for Key Actions and Deliverables 18 Annex 3. Highlights of Addressing Climate Change-related Programs in the World Bank Regions  33 Annex 4. Results Framework for Climate Change  54 A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 1 1. Context The Strategic Framework on Development and Climate 3. Facilitating the development of market-based Change (SFDCC) for the World Bank Group was financing mechanisms requested by the Development Committee during the 4. Leveraging private sector resources World Bank/IMF Annual Meeting in 2007 and 5. Supporting accelerated development and deploy- endorsed by the Development Committee on October 12, ment of new technologies 2008. 6. Stepping up policy research, knowledge, and capacity building. The Framework provided a road map for climate action for the World Bank Group (WBG) over fiscal It acknowledged the need for decision making under years 2009–11, setting out the WBG’s objectives, uncertainty about future climate change scenarios, principles, areas of focus, and major initiatives in the and thus proposed a significant focus on improving field of climate change. knowledge, capacity, and learning-by-doing. It stressed the need for the WBG to be flexible to Its starting point was a strong recognition that the incorporating new developments in knowledge and core mission of the WBG is to promote inclusive negotiations into the Framework. growth and poverty reduction. Addressing climate change is an essential part of this mission. Particular An interim progress report (May 2010)1 documented attention was given to strengthening the resilience of the advances made in the WBG’s climate change economies and communities to increasing climate agenda since approval of the Framework. It empha- risks and adaptation. sized the need to refine priorities to respond to future internal and external developments, and highlighted The Framework was organized around six action progress on (a) mainstreaming climate actions; areas: (b) continued growth in low-carbon financing; (c) scaling up new and innovative climate financing; 1. Supporting climate actions in country-led devel- and (d) building up and disseminating knowledge on opment processes climate change. 2. Mobilizing additional concessional and innova- tive finance 1 World Bank. 2010. “Development and Climate Change: A Strategic Framework for the World Bank Group – Interim Progress Report.� (SecM2010–0227) Washington, DC: World Bank. 2 D E V E LO PM E N T A N D C L I M AT E C H A N G E A Changing Global Context 2.  The WBG recognizes the primacy of the United goal. This poses a greater threat to developing coun- Nations Framework Convention on Climate Change tries, and their requests for WBG assistance for (UNFCCC) process for achieving long-term coop- adaptation has grown more than expected. At the erative action on climate change. Deliberations under same time, a growing number of developing coun- the UNFCCC have helped guide our fast-growing tries have indicated that they want to become part of support to global climate action over fiscal years the solution, and are seeking support for moving 2009–11, and will continue to do so in the future. toward lower carbon growth. Today the WBG is When the Strategic Framework was launched, there providing support to 130 countries on climate change, were still expectations that a global agreement on and all country strategies include climate change as a climate would be forthcoming soon. The absence of core area for WBG support. such an agreement has made our engagement in cli- mate change more challenging, but also more urgent At the Durban COP in December 2011, the Parties and more productive. Global progress on mitigation agreed to reach an agreement with legal force by has been less than expected and most experts now 2015, to become effective from 2020 (box 1). While believe that it is very unlikely that increases in aver- highly positive, this means that voluntary actions, age global temperatures will be kept to the 2 degree supported by the WBG and others, are more Box 1. The “Durban Package� The “Durban Platform� at COP-17 outlined a path toward negotiating a global and legally binding agree- ment on emission reductions by 2015 that will include all countries in accordance with their common but differentiated responsibilities and respective capabilities. This global agreement would allow time for rati- fication and take effect from 2020. A second commitment period of the Kyoto Protocol was also agreed, as was the design instrument for the Green Climate Fund, which will take immediate steps toward full operationalization and capitalization. The details of the second commitment period of the Kyoto Protocol are to be negotiated in Doha (COP-18) at the end of 2012. The second commitment period will only enter into force when ratified by a sufficient number of countries. Further operationalization of the institutional modalities for the Technology Mechanism, the Adaptation Committee, and the establishment of a registry of developing country mitigation actions were similarly agreed. Other important decisions included (a) the establishment of a forum and work program on unintended consequences of climate change actions and policies; (b) procedures to allow carbon-capture and storage projects under the Kyoto Protocol’s Clean Development Mechanism; and (c) development of a new market-based mechanism to assist developed countries in meeting part of their targets or commitments under the convention. COP-17 also moved closer to including a work program on agriculture. The issue was debated in June 2012, and a decision is expected at COP-18. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 3 important than ever. At the same time the WBG 90 countries have registered plans with the UNFCCC can—through demonstrating that success is possible to address the emissions intensity of their growth by at scale at reasonable costs—make a global deal more 2020. This includes 51 developing countries that have likely. identified Nationally Appropriate Mitigation Actions (NAMAs), a quarter of which are low-income coun- Based on the current status of UNFCCC negotiations, tries. At the same time, 48 least-developed countries it does not appear that a globally binding regulatory (LDCs) have submitted their National Adaptation regime setting forth emission reduction obligations Plans of Action (NAPAs), which identify priority will come into force until the end of this decade. activities to adapt to climate change. The COP-17 Therefore voluntary action and leadership are needed decision calls for least-developed countries to develop if irreversible climate change impacts are to be avoided. National Adaptation Plans (NAPs), which will focus There are, however, some promising signals. Nearly on medium and long-term adaptation needs. 4 D E V E LO PM E N T A N D C L I M AT E C H A N G E Achievements and Lessons 3.  Highlights of the WBG’s engagement across six action in regular operations. For example, the new action areas prioritized in the SFDCC are presented World Bank Group Environment Strategy—which in this section. Supporting information is provided in was endorsed by the Bank Board’s Committee of annexes 1 and 3. Development Effectiveness in January 2012—articu- lates a vision for a “Green, Clean and Resilient World for Action Area 1: All � and prioritizes scaled-up action in the following Support climate actions in key areas over the next 10 years: a new World Bank- country-led development led Global Partnership for Oceans; Wealth Account- processes ing and Valuation of Ecosystem Services (WAVES); low-emission development; pollution management; At the time of its approval, the SFDCC committed adaptation to climate change; disaster risk manage- to a demand-driven process to support country-led ment; and improving resilience of small-island states. climate actions. It acknowledged that the WBG’s response would depend on its ability to provide addi- The infrastructure lending portfolio has also moved tional financing, facilitate technology transfer, and toward less-GHG intensive projects in response to build knowledge and capacity. It identified a number country demand and new climate considerations in of operational priorities, including (a) strengthening Bank strategies (box 3). For example, there has been climate resilience, (b) realizing multiple benefits of a significant increase in renewable energy invest- sustainable development, and (c) taking advantage of ments and projects that facilitate a modal shift in low-carbon growth opportunities. transport. Another good example is the move toward integration of adaptation in disaster risk reduction Strong Mainstreaming across the WBG. One of the programs in partnership with the Global Facility for biggest achievements during the SFDCC implemen- Disaster Reduction and Recovery (GFDRR). tation period has been the growing integration of cli- mate change considerations at the strategic level Similarly, in recognition of agriculture as a sector (box 2). In fiscal 2011, 100 percent of approved coun- that both contributes to, and is impacted by climate try assistance or partnership strategies prepared in change, the Bank’s upcoming Agriculture Action consultation with client countries included climate Plan will include an increased focus on environmen- change as a priority. A growing number of sector tal services and sustainability. This includes the use strategies—ranging from social development such as of climate-smart agriculture as a way to increase farm education and social protection to urban and trans- productivity and incomes and make agriculture more port infrastructure—mainstreamed climate change resilient to climate change while also contributing to considerations, making it easier to support climate mitigation. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 5 Box 2. Highlights of THE World Bank Group’s implementation of the SFDCC (FY2009–11) The WBG is working in 130 countries supporting climate adaptation and mitigation. In fiscal 2011, 100 percent of the new country assistance strategies (CASs) or country partnership strate- gies (CPSs) prioritized climate change (compared to 32 percent in fiscal 2007, 63 percent in fiscal 2009, and 88 percent in fiscal 2010). IDA-16 requires that all CASs and CPSs address climate resilience. Actions to address climate resilience were specified in 41 percent, 65 percent, and 76 percent of CASs/CPSs approved in fiscal 2009, 2010, and 2011, respectively. Climate investment funds are up and running in 46 countries through 39 country and regional pilots that support transformations in clean technology, sustainable management of forests, increased energy access through renewable energy, and climate-resilient development. The share of low-carbon projects in the WBG portfolio increased from $6.76 billion (42 percent) in fiscal years 2006–08 to $14.9 billion (51 percent) in fiscal years 2009–11. WBG’s renewable energy portfolio increased from $2.9 billion (18 percent of total lending) in fiscal years 2006–08 to $6.6 billion (22 percent) in fiscal years 2009–11. In the same time period, the energy efficiency portfolio increased from $3.0 billion (19 percent) to $5.0 billion (17 percent). The WBG’s GEF portfolio supports climate change initiatives in 72 countries. The cumulative portfolio of GEF-supported projects incorporating climate change grew by $229 million (Board approvals) during the three years of SFDCC implementation. The WBG is supporting carbon markets in 63 countries and expanding market reach and access through the Partnership for Market Readiness in 15 countries. The WBG is working with 37 countries on the Forest Carbon Partnership Facility (FCPF), with 11 readiness grants signed. There are $200 million in carbon funds that provide performance-based payments for five REDD+ ready countries. There is greater emphasis on the “triple wins� of agriculture—productivity gains, resilience, and lower emissions—in Brazil, China, Kenya, and Yemen. There is increasing work at the city level on climate change. Examples include the Mayors’ Task Force on Climate Change, a citywide approach to carbon finance and GHG methodologies for cities. Knowledge products include the WDR on Development and Climate Change in 2009, the Economics of Adaptation to Climate Change in 2010, regional reports such as Adaptation to a Changing Climate in the Arab Countries and Winds of Change in East Asia; and tools such as EFFECT for low-carbon development. The Climate Change Knowledge Portal and the Climate Finance Options (jointly managed with the UNDP) add to the global public knowledge goods. 6 D E V E LO PM E N T A N D C L I M AT E C H A N G E emissions by 7 percent compared to 2006 levels at the Box 3. IEG review on mitigation Bank’s headquarters in Washington, DC. To help The phase II IEG evaluation report on mitigation maintain carbon neutrality, the WBG purchases ver- recommended that the WBG rebalance its efforts ified emissions reduction credits for facilities and toward higher-impact sectors and instruments, travel emissions, and renewable energy certificates for with relatively greater emphasis on energy effi- emissions related to electricity consumption. In fiscal ciency, such as lighting and improvements in elec- 2011, the WBG maintained carbon neutrality for its tricity transmission and distribution. The report also emphasizes the need for the Bank to actively global operations with the purchase of carbon credits assist clients to move away from coal, as well as from a composting project in Pakistan. using systemwide energy analyses to find cleaner, more cost-effective, and financeable alternatives. The WBG has successfully supported the SFDCC’s It urges the Bank Group to take a public venture operational priority areas and mainstreamed climate capital approach, incubating a portfolio of prom- considerations into the WBG’s core development ising investments and rapidly scaling up the suc- cessful ones. This approach to replication and agenda. The early establishment of a group-wide scaling up is reflected in the Bank’s work under Climate Change Management Group and the the GEF, the Climate Investment Funds, and the appointment of regional climate change coordinators various carbon funds it manages. were fundamental in effectively translating SFDCC goals into tangible strategies and investment portfo- lios. The appointment of a WBG vice president-level Country demand for assistance to build climate Special Envoy on Climate Change in 2010 created a resilience rose significantly, recognizing the urgent focal point for mainstreaming climate change actions challenge posed to the well-being of the poorest across the WBG, as well as the Group’s support to communities. Climate-resilient development is a clients and global processes. Moving forward and special theme of IDA-16, and additional resources building on this experience, mainstreaming climate are provided through the replenishment to support through the programs of all sectors is now the focus— the incremental cost of addressing climate risks supported by continued excellence and innovation in and impacts at a project level. The WBG is actively climate finance, management tools, data, and engaged in the $1 billion Pilot Program for Cli- evidence. mate Resilience (PPCR) to support efforts on adaptation. Action Area 2: Mobilize additional The WBG also took action to reduce its corporate concessional and innovative greenhouse gas emissions through a comprehensive finance program to measure and manage its emission sources. For example, technological upgrades and improve- International funding for climate action in develop- ments in operational efficiency have helped reduce ing countries, while growing, covers about 5 percent A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 7 of finance needed to build climate-resilient futures. 2 take five or six years before this begins to result in The SFDCC had mandated the WBG to utilize scaled-up investment finance. To reach $100 billion financing instruments like climate investment funds annually by 2020 requires an upward trajectory in to not just address the financing needs, but to also financing to 2020 that is not yet clearly understood. develop capacity in client countries to address climate action at scale. The World Bank Group response. The main channels for mobilizing concessional and innovative climate The current resource gap. To address the looming finance have been the Climate Investment Funds financing gap, developed countries committed under (CIF) jointly managed by the multilateral develop- the Copenhagen Accord and Cancun Agreements to ment banks, the Global Environment Facility (GEF) provide new and additional resources for climate and its associated Least Developed Countries Fund change activities in developing countries. This (LDCF) and Special Climate Change Fund (SCCF), approaches $30 billion for the period 2010–12. By and IDA—the WBG’s fund for the poorest 2020—the same year a global agreement on climate countries. change is expected to enter into force—it will provide $100 billion per year, drawing on a wide range of The CIF 3 have demonstrated what can be done to conventional and innovative resources, including support transformative adaptation and mitigation public and private, bilateral, and multilateral sources. action at scale (box 4) and offer valuable lessons for the GCF design. CIF innovations in country-led A Green Climate Fund (GCF) is now being opera- processes, programming, and governance arrange- tionalized under the UNFCCC to help disburse ments have required substantial groundwork and these flows. The World Bank has a limited role as an time by all involved partners for each and every interim trustee for the GCF in its first three years of investment program. The Clean Technology Fund, operation. The Bank has been working with the one of several funds under the CIF, have a projected UNFCCC to support the design of the GCF and leveraging ratio of more than 1:7, and have so far led ensure it is both nimble and efficient. It is also to estimated CO2 reductions or avoidance of 1.56 trustee of the Adaptation Fund, monetizing certified billion tons. This shows a significant investment in emission reductions (CERs). climate mitigation in 46 CIF partner countries. However, current demand for CIF assistance out- Under the most optimistic assumptions, the GCF is weighs available resources, indicating a need for expected to start disbursing small amounts of project additional financing to cover the gap before the preparation funds in two to three years, but it may GCF is fully operational. 2 A World Bank study on Economics of Adaptation to Climate Change estimates that it will cost $70–$100 billion per year for developing countries to adapt. 3 All information on the CIF in this report is current as of February 2012. 8 D E V E LO PM E N T A N D C L I M AT E C H A N G E Box 4. The Climate Investment Funds (CIF) Climate Investment Funds (CIF) Clean Technology Fund (CTF) Demonstrate, deploy, and transfer Strategic Climate Fund (SCF) low-emissions technologies for low- Targeted programs to pilot new approaches to initiate transfor- emissions development mation with potential for scaling up climate resilience $5.0 billion $2.2 billion Scaling Up Clean Technology Fund (CTF) Pilot Program for Forest Renewable Energy Country and Regional Investment Climate Resilience Investment in Low-Income Plans (PPCR) Program (FIP) Countries (SREP) Demonstrate, deploy, and scale up Mainstream resil- Reduce emissions Create economic renewable energy efficiency, urban ience in develop- from deforesta- opportunity, transport, and commercialization of ment planning tion and forest increase energy sustainable energy finance through degradation access through local banks renewable energy 16 CTF Investment Plans: Chile, 9 PPCR countries, 2 8 FIP pilots 6 SREP pilots Colombia, Egypt, India, Indonesia, regional pilots ($639m): Brazil, ($410m): Ethiopia, Kazakhstan, Mexico, Morocco, ($1.2b): Bangladesh, Burkina Faso, Honduras, Kenya, Nigeria, Philippines, South Africa, Bolivia, Cambodia, Democratic Maldives, Mali, Thailand, Turkey, Ukraine, Vietnam, Mozambique, Nepal, Republic of Nepal, Tanzania regional MENA Concentrated Solar Niger, Tajikistan, Congo, Ghana, Power (Algeria, Egypt, Jordan, Yemen, Zambia, Indonesia, Lao Morocco, Tunisia) Caribbean, S. Pacific PDR, Mexico, Peru Note: Information on CIF current as of February 2012. Nearly $2 billion in GEF financing has supported early GEF initiatives have laid the foundation for renewable energy, energy efficiency, and sustainable much of the Bank’s current low-carbon development transport projects. The GEF received a record boost work. from donor countries in May 2010. The GEF subse- quently expanded support to recipient countries for The current (sixteenth) replenishment of IDA capacity building, climate friendly technologies, and includes a special theme on “achieving climate-resil- sustainable development. After nearly 20 years of ient development.� It recommends that all IDA proj- operation, the Bank remains the GEF’s largest ects in climate change-sensitive sectors analyze the implementing agency partner in the climate change potential climate impact of project activities to ensure focal area. Approaches and concepts supported by they are consistent with national climate mitigation A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 9 and adaptation strategies. This is a clear indication of sector has been showing increasing interest in invest- the mainstreaming of climate change concerns in the ing in green projects, especially related to energy largest fund for the poorest countries. There have efficiency. been successful efforts to increase funding for adapta- tion through GEF-operated funds like the Least The World Bank Group response. Carbon finance has Developed Country Fund (LDCF) and the Special been integrated into the assistance programs of all Climate Change Fund. But uptake for the LDCF by World Bank operational regions—from forest resto- the poorest countries has been slow. ration in Ethiopia to clean energy in Sub-Saharan Africa and capacity building in Latin America. The Action Area 3: aim is to deepen and broaden the Bank’s response to Facilitate the development of climate change, helping poor communities and coun- market-based financing tries cope with climate change while still achieving mechanisms economic growth, poverty reduction, and sustainable development. For example, the Community Develop- Market-based financing mechanisms have the poten- ment Carbon Fund and the BioCarbon Fund show tial to contribute significantly as a source of finance that carbon markets can work to bring in revenue for scaled-up climate action. But clear market signals, streams to rural communities that otherwise have enabling environments, safeguards, and strong, pre- limited sources of income. It has demonstrated that dictable and transparent regulatory frameworks are these initiatives are not only mitigating climate important prerequisites for helping countries opt for change but also improving rural livelihoods, improv- low-emission pathways. The SFDCC committed to ing resilience to climate change, conserving biodiver- explore and pilot avenues to deepen the reach of the sity, and restoring degraded lands. carbon market, and expand work on climate risk insurance and capital markets. It recognized the The Bank’s carbon funds have employed a learning- important role the WBG was playing in supporting by-doing approach, testing innovative market client countries’ access and effectively using market- approaches and contributing to global knowledge based instruments. through the development of new methodologies. For example, a soil carbon methodology was approved Current carbon market trends. Although the carbon recently that involved working with experts across market was worth $142 billion in 2011, confidence in the world, the validating entity in the United States, the post-2012 market—when the first Kyoto Protocol and farmers in Ethiopia over several years. This will commitment period comes to an end—is low. How- now enable smallholders in Kenya to get revenues ever, countries like China, Chile, Colombia, Costa from the carbon market for improved soil Rica, Indonesia, Mexico, Thailand, and Turkey are management. adopting cap and trade systems, which they feel will boost technology and competitiveness. The private The Bank continues to explore new opportunities to 10 D E V E LO PM E N T A N D C L I M AT E C H A N G E broaden the scope of carbon finance. For example, The World Bank and IFC have successfully raised the Partnership for Market Readiness (PMR), a funds through capital markets by issuing “green grant-based capacity-building fund, has made sig- bonds,� which support dedicated projects or programs nificant progress since its launch in Cancun in 2010. that finance low-carbon or climate-resilient develop- PMR is becoming one of the most important plat- ment activities in client countries. Fixed-income forms to discuss new market instruments and help investors are increasingly familiar with World Bank prepare countries to scale up mitigation efforts green bonds, which now support 26 climate change through their use. Other more recent innovations projects and pave the way for green bonds to become include the Carbon Initiative for Development (Ci- an asset class of choice for investors interested in cli- Dev), which aims to build readiness and capacity to mate change and sustainability issues. The WBG is access carbon markets in low-income countries and also working with the P8, a group of the world’s larg- support a pipeline of low-carbon investment oppor- est pension funds, to explore ways in which institu- tunities. Another is the third tranche of the BioCar- tional financing can be directed to climate-friendly bon Fund, which pilots soil carbon sequestration, investment in emerging markets. explores landscape accounting approaches, and values ecosystem services. Collectively, the World Bank’s carbon finance opera- tions have catalyzed and fostered the development of With an expected increase in the intensity and a global carbon market under the Kyoto Protocol. damage caused by natural disasters, the WBG is However, there are growing demands from client offering catastrophe-risk-financing products and countries to help countries get ready for the growing advisory services tailored to provide relief for coun- menu of climate products, including those offered on tries when they most need it. These include catastro- insurance and capital markets. phe bonds, catastrophe swaps, weather derivatives, and Catastrophe Risk Deferred Drawdown Options Action Area 4: (Cat DDOs). Two complementary products and ser- Leverage private sector vices are available to countries: (1) sovereign risk resources financing for direct budget support (to provide imme- diate liquidity should a disaster occur while other The private sector is a major investor in renewable resources are being mobilized); and (2) advisory ser- energy and energy efficiency worldwide and in devel- vices to strengthen domestic property catastrophe oping countries. With adequate policies and incentives insurance markets (to facilitate increased penetration in place, it is expected to contribute the larger share of of insurance in developing countries and access to mitigation-related financing and a significant share of re-insurance). Index-based agricultural insurance—to adaptation financing. Since several of the poorest help farmers hedge against weather risk—has recently countries do not hold a private sector capital base, the been extended. It is estimated that nearly 1 million WBG could help countries attain the scale required farmers have benefited from such schemes since 2003. for adequate climate action. The SFDCC agreed to A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 11 innovatively apply or package WBG instruments to Fund have successfully leveraged over $3 billion in reduce barriers to private investments, with IFC and investment from IFC and third parties. IFC has also MIGA taking a leading role. helped leverage private sector funds in the CIF’s Clean Technology Fund (CTF) at a 1:3 leverage ratio, Private sector plays a vital role. The commitment by representing 30 percent (or $12.5 billion) of the total developed countries to provide $100 billion annually expected project financing. Despite these promising by 2020 would include contributions from the private figures, private sector engagement in the CTF design sector. Unlocking the substantial potential for private phase has been uneven and has proven difficult for investment will require overcoming a range of barri- the Pilot Program for Climate Resilience. ers to investment. Engagement with the private sector will need to recognize different perspectives: institu- Rapid growth in the use of WBG guarantees has tional investors/pension funds, project developers, and helped support climate-friendly investments and financial intermediaries (FIs). mobilize private capital into countries and sectors with a high risk perception. IFC and MIGA are The World Bank Group response. IFC is seeking to working with financial institutions to help enlarge its climate business from current levels of 14 strengthen capital and financial markets and reach percent to 20 percent of its long-term finance (and 10 out to smaller clients. Between fiscal 2008 and the percent of its trade finance) by 2015. first half of fiscal 2012, MIGA issued $402 million in new guarantees for a number of clean energy proj- To better engage with the private sector, IFC estab- ects. These included guarantees for methane gas lished a Climate Business Group in fiscal 2011 for cli- extraction and energy production in Rwanda; biofuel mate-related transactions and a new Climate Business in Liberia; solid waste management and energy pro- Group Investment Team to focus on late-venture and duction in El Salvador; geothermal power in Kenya; growth-stage cleantech companies in emerging mar- and hydropower in Uganda. kets. A Climate Risk and Adaptation Program was also launched in 2008. Colombian port authorities Action Area 5: recently committed to invest $30 million in adaptation Support accelerated measures as a result of joint work under this program, development and deployment which has received national recognition as a guide and of new technologies standard for private sector climate risk management. The WBG sees technological innovation as a key Concessional investments and technical assistance driver to lower emissions and build resilience to cli- grants aimed at climate change are managed by IFC’s mate impacts. The SFDCC has proposed to continue Financial Mechanisms for Sustainability Unit. A to support the commercialization, scale up, and dem- total of $700 million from the Global Environment onstration of clean technologies and related research Facility, the CIF, and the Canada Climate Change and development. 12 D E V E LO PM E N T A N D C L I M AT E C H A N G E The World Bank Group response. IFC has led WBG The World Bank Group response. Several key knowl- efforts to accelerate the development and deployment edge products have been delivered that have helped of new climate technologies through eight climate raise awareness of the costs and impacts of climate change funds and innovations in clean energy tech- change. The 2010 World Development Report showed nology. A Solar Investment Strategy has been that a “climate-smart� world is possible if the world adopted, together with a Cleantech Investment Pro- decides to “act now, act together, act differently.� The gram for early-stage clean technology companies in subsequent Economics of Adaptation to Climate Change developing countries. estimated global costs of $75 to $100 billion to adapt to a 2-degree warmer world over 2010–50. The The World Bank and IFC have jointly launched recent Bank-UN report on the Economics of Effective infoDev, a trust fund to support the establishment of Risk Prevention made the economic case for investing a network of Climate Innovation Centers to acceler- in ex ante risk reduction and disaster prevention. ate locally relevant climate technologies (box 5). Cli- mate Innovation Centers are being introduced in Ethiopia, India, Kenya, South Africa, and Vietnam, and other countries are seeking such support. Box 5. info Dev and innovation in climate technologies The CIF are supporting the deployment of new cli- Through info Dev, the WBG is rolling out Climate mate technologies such as, for example, concentrated Innovation Centers (CICs) in a number of coun- solar power in Morocco. However, more needs to be tries, including Ethiopia, India, Kenya, South Africa, and Vietnam. The $15 million Kenya CIC is done to address the gap in the scale of support required currently under implementation, with launch for new climate technologies from the R&D stage to expected in early CY2012. The center will pro- commercialization, particularly for climate adaptation. vide, among other services, proof of concept and seed financing, advisory services, market intel- Action Area 6: ligence, policy support, and access to technical Step up policy research, facilities. The center’s priority sectors include off- grid renewables, water management and purifi- knowledge, and capacity cation, micro-hydro, and technologies for adapta- building tion. When operational, the Kenya CIC will fund up to 70 climate entrepreneurs, create up to At the time of SFDCC approval, the WBG had 4,000 jobs in the first 5 years, and mitigate a pro- already stepped up its analytical work on climate jected 1.5 to 2 MtCO2 over 10 years. change across sectors and regions. The SFDCC com- Implementation activities for Ethiopia and India mitted to further scale up the knowledge agenda by CICs will begin in CY2012, and CIC business plans building effective partnerships and capitalizing on are being developed in Vietnam and South Africa. Future CIC development is scheduled for synergies, with work being carried out inside and Morocco and the Caribbean in CY2012. outside the WBG. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 13 The WBG has developed a range of complementary the science community to move research and dialogue products and tools to inform and implement climate on this issue forward. change projects and policies. Examples include the Climate Change Knowledge Portal, which provides In parallel, the World Bank Institute has scaled up interactive climate-related spatial data sets and tools engagement with developing country stakeholders on (box 6); the Climate Finance Options platform, climate change, providing a range of services from which serves as a one-stop virtual knowledge center e-learning to face-to-face exchanges such as the Mit- on climate finance sources; and the MACTool, igation Actions Implementation Network (MAIN), which brings to the public domain a free, user- which delivers regional peer-to-peer learning on cli- friendly, open-source tool to help countries build and mate change. Social media—including blogs, Twitter, master their own marginal abatement cost curves. and multimedia—have become integral parts of the communication strategy, enabling the WBG to In 2009, the WBG also established global expert expand its reach on climate change to a younger and teams for disaster risk management and climate wider audience in a more interactive way. change adaptation to ensure that the best expertise (internal and external) is available to country teams Overall, the WBG has expanded its “footprint� as a and clients and deployed quickly and flexibly to the generator, broker, and connector of knowledge. It is right problem. The subsequent appointment of a well positioned to push the frontiers of accessibility World Bank Fellow for climate adaptation in 2011 will of products, tools, and services to its clients and help connect global expertise and world-class ideas in others in an open and transparent manner. 14 D E V E LO PM E N T A N D C L I M AT E C H A N G E 4.  Where we are headed Climate change is one of the multiple stressors that Many developing countries face challenges in scaling affect the environment and impact on income and up low-carbon, climate-resilient actions due to ana- welfare. Further, its impact is worsened by other envi- lytic and institutional capacity constraints, inade- ronmental damages. Looking ahead, strategies to quate enabling policies and regulations, and a lack of combat climate change have to account for the contin- baseline finance within the public and private sectors. ued need for rapid growth in developing countries. In No single solution is available because of large differ- this context, the World Bank is now looking at climate ences in country geophysical and terrestrial circum- change in a holistic manner, bringing together climate stances; exposure to climate impacts; and the mix change efforts with work on growth and broader man- of—and access to—energy resources and develop- agement of natural resources and pollution. ment progress. Tailored support is needed at a coun- try level to develop a medium-to-long-term As climate change considerations have increasingly “bankable� project pipeline for financing from the been mainstreamed into the WBG’s business, Green Climate Fund and other sources. This needs SFDCC implementation has demonstrated what can to be complemented by coordination and collabora- be achieved with clients and partners through tion among partners (south-north, south-south) on focused and comprehensive action. Yet the demand diagnostics, knowledge sharing, technology innova- for WBG support continues to grow, and the sheer tion and take-up, and innovative financing from mul- pace of change in tools and technologies requires tiple sources. continued ramping up of our capacity and effective- ness. Reaching scale, leverage, and impact will The WBG is, for these reasons, placing readiness at require knowledge to be built and shared, climate the heart of its support to clients on climate change. action “readiness� to be supported among clients, and This responds to exponential growth in demand for innovative financing modalities to be developed. support from all types of clients, exemplified by the more than 80 additional countries seeking support Climate Readiness from the CIF alone (demand that cannot be met with existing CIF resources). With decades of experience in As countries develop Nationally Appropriate Mitiga- financing country development efforts and piloting tion Actions (NAMAs) and National Adaptation climate action through dedicated instruments—such Plans (NAPs) in response to UNFCCC require- as the CIF, GFDRR, ESMAP, and the carbon ments, and put in place the supportive policies and finance portfolio—the WBG is well placed to further programs for their implementation, more help is scale up readiness support for actions on adaptation needed for readiness and the design of financeable and low-emissions development (LED), including investments. landscape-based approaches. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 15 Box 6. Climate risk screening Achieving climate-resilient development is one of the special themes for IDA-16. Among other things, it requires the Bank to (a) include a discussion of climate change mitigation/adaptation in 100 percent of IDA CASs/CPSs; (b) analyze the climate impacts of projects in sensitive sectors; and (c) ensure they are consistent with country climate change strategies. The WBG Climate Change Knowledge Portal (CCKP)* is a web-based tool that can assist in furthering the screening of the Bank portfolio of country strategies (sector, CASs) and in some cases at the project level to take better account of risks to development planning and implementation that arise from climate vari- ability and climate change. In partnership with GFDRR, the CCKP has successfully supported risk assess- ment and upstream planning by providing rapid access to synthesis material—including national climate risk and adaptation profiles** and existing national planning documents such as national communications to the UNFCCC, NAPAs, Poverty Reduction Strategy Papers, and regional strategies—at different levels of aggregation. The CCKP is also part of the newest WB Open Climate Data Initiative, launched at COP-17 in South Africa. Through the Open Data Initiative, users will have improved access, synthesis, and usability of Bank-wide development data to support the design of risk management, adaptation, and mitigation actions. The CCKP is now moving to a more strategic and focused phase. It will seek to scale up efforts at the country level, but with greater attention to outreach dissemination and increasing user penetration, as well as wider partnership support. * http://climateknowledgeportal.worldbank.org ** http://countryadaptationprofiles.gfdrr.org To achieve these objectives, the WBG will enhance Market Readiness, the Carbon Initiative for Devel- its operational and analytical capacity to leverage its opment (Ci-Dev), the Forest Carbon Partnership adaptation and LED portfolio for the benefit of its Facility, and the IFC Post-2012 Carbon Facility. Ini- client countries. The World Bank will scale up lend- tiatives supporting clean energy include the SIDS- ing for clean energy by identifying additional capital DOCK Fund for renewable energy and energy for dedicated instruments, by strengthening the sup- efficiency in the small-island states, ESMAP’s ongo- port that the Bank provides to relevant sectors ing engagement in low-carbon development planning, through various advisory services, and by internal- and infoDev’s Climate Information Centers. More izing and replicating learning derived from climate programs will be tailored to regional needs. In Africa, finance instruments. for example, a $63 million Investment Readiness Fund is under development, and an Early Action A number of readiness support instruments have Program on Climate Smart Agriculture for Africa been launched to support this objective. They include has recently been launched under the Comprehensive market mechanisms such as the Partnership for Africa Agriculture Development Program (CAADP). 16 D E V E LO PM E N T A N D C L I M AT E C H A N G E A number of complementary readiness initiatives are climate risk and integrate climate change informa- emerging under the Rio+20 agenda, such as the focus tion into decision making. Building on its role as a on green growth, the Sustainable Energy for All Ini- global connector, the World Bank has developed a tiative, and the (re-)emerging focus on water, biodi- Green Growth Knowledge Platform (GGKP) in versity, and natural capital accounting. partnership with OECD, UNEP, and the Global Green Growth Institute. While this covers more Knowledge than climate change, climate change concerns are very much at the heart of the work that the plat- Reaching scale, leverage, and impact will require form will support. In particular, the goal is to estab- knowledge to be built and shared. To support this lish a program on data and tools that will link with objective, the World Bank has created a new position the Open Data Climate Initiative and includes the within the Sustainable Development Network—a Climate Change Knowledge Portal and the Open Knowledge Management Director—to advance the Data for Resilience Initiative. It will additionally knowledge agenda, implement the knowledge strategy, support development of a concept for an open plat- and lead the coordination of sustainable development form of climate-smart development tools, data, and knowledge activities across the Bank. capacity support to help developing countries create viable plans for low-emissions, climate-resilient Under the modernization agenda, the World Bank is growth that are tailored to local needs, capacities, committed to greater openness in its knowledge, and challenges. The joint World Bank-UNDP Cli- operations, and partnerships. The Bank’s new Open mate Finance Operations Platform4 is another hub Access policy marks a significant shift in how Bank for information on sources of climate finance. content is disseminated and shared. The Bank will now have an aggregated portal for research and It remains a key role for the WBG in coming years to knowledge products, where the metadata is curated, help support clients and all other relevant stakehold- the content is discoverable and easily downloaded, ers climb a global learning curve for climate finance and third parties are free to use, reuse, and build on it. or country-led programs on climate action. For this, every knowledge exchange and communication tool As climate change considerations are increasingly will need to be used, including the WBI’s e-institute reflected in the Bank’s portfolio, there is an urgent platform,5 the regionally based Mitigation Actions need for knowledge tools to understand and assess Implementation Networks,6 south-south and 4 The CFO aims to improved access by policy makers and project leaders in developing countries to information on various sources of climate finance for making more informed decisions on mitigation and adaptation investments, and to develop an interactive south-south community of practice. 5 LED, energy efficiency, carbon markets, and so on. 6 This WBI initiative is already active in Latin America and the Caribbean, East Asia and Pacific. Plans are under way to expand to the Middle East and North Africa and Africa. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 17 south-north exchanges, and using the reach of social starting points for addressing projected trends in media. The last few years have seen the success in exposure, vulnerability, and climate extremes. Build- reaching a global audience through blogs, Facebook, ing evidence on the impacts of climate change and and Twitter. These will continue to be used exten- creating proof of concept on climate action is becom- sively for sharing lessons from climate change proj- ing important for informing the UNFCCC negotia- ects that help build awareness on climate change tions. The WBG can play a vital role in this area in impacts. the next few years. The World Bank also launched WAVES, a partner- Partnerships ship to promote sustainable development by ensuring that national accounts used to measure and plan for The WBG is experiencing increasing demand to join, economic growth include the value of natural capital. help forge, or lead new climate action coalitions. It is Incorporating natural capital in national income increasingly engaging in major joint initiatives with accounts will help support better decisions on issues the UN system, other multilateral development that are a development priority for countries, includ- banks, the OECD, civil society, and the private ing issues related to climate change such as renewable sector to widen our reach and service client demand. energy and water resources management. Under the Examples of new partnerships are outlined below. partnership, for example, Botswana wants to under- stand the role of their coal reserves in a green economy Within the UN framework, there are a number of and plans to create energy and water accounts to help strategic climate change partnerships. The World determine the country’s optimal energy mix, consider- Bank has close working relations with the UN Secre- ing the costs and benefits of coal and the impact on tary-General’s High-Level Panel on Global Sustain- already stressed water resources. ability, as well as the UNSG’s High-Level Panel on Sustainable Energy to advance the Sustainable As adaptation becomes an imperative for our client Energy for All and UN-Energy Initiatives. In 2010 countries, there will be increased demand for science- the WBG was actively engaged in the UNSG’s based work to assess ramifications of a 3 to 4+ degree High-Level Advisory Panel on Climate Finance, and Celsius warmer world. The Global Expert Team on subsequently on the same topic under the French Climate Change Adaptation is embarking on a stra- presidency of the G20 in 2011 with the IMF, MDBs, tegic analytical study to understand what a warmer OECD, and select UN agencies. At the level of the world means for development to help guide the Chief Executives Board, the World Bank maintains WBG’s operations. Stronger attention will also be regular interaction through the UN HLCP Working given to integrating disaster risk reduction and cli- Group on Climate Change. mate adaption in WBG’s policy and investment work, in line with the IPCC consensus that low-regrets At an operational level, UNDP and the World Bank measures for managing current disaster risks are are partners on the Climate Finance Options (CFOs) 18 D E V E LO PM E N T A N D C L I M AT E C H A N G E Platform. Pooling resources and delivering joint ser- On finance issues, the WBG is working with P8, a vices has proven cost-effective and the modality could group of the world’s largest pension funds, to explore be replicated to provide access to other types of infor- ways in which institutional financing can be directed mation, tools, and instruments. The World Bank and to climate-friendly investment in emerging markets. UNDP are also collaborating on the $25 million The Bank Group is also a partner in the San Georgio “SIDS DOCK� Support Program to help the small- Group with Climate Policy Initiative (CPI), China island states “dock into� carbon markets and climate Light & Power (CLP), and the Organisation for Eco- finance sources and develop renewable energy. nomic Co-operation and Development (OECD). This new working group of key financial intermedi- Outside the UN system, the World Bank is actively aries and institutions is actively engaged in extracting engaged with the G20 and B20 on climate finance, lessons on effective green, low-emissions finance. and with the G20 on energy subsidies, infrastructure financing, and green growth, among other issues. Finance The WBG is engaged with other MDBs on the CIF, with MDBs and bilaterals in exchanging knowledge The WBG recognizes five immediate challenges to and practice on GHG accounting, and with the financing climate action, among others: OECD-DAC and MDBs on tracking climate finance. 1. Operationalizing the Green Climate Fund (GCF) due to the extensive amount of work The WBG is also reaching out to non-traditional placed with the GCF Board and the Secretariat partners. For example, the World Bank has signed an as mandated by the UNFCCC COP. MOU with the C40, a consortium of the 40 largest 2. Delivering in full the $30 billion in fast-start cities globally, to further the cities and climate finance by the end of 2012. About $22 billion is change agenda. With the Organisation for Economic so far committed. Co-operation and Development (OECD), the United 3. Avoiding a gap in financing after 2012 due to the Nations Environment Programme (UNEP), UN- need for an upward trajectory toward the target of Habitat, and the World Resources Institute (WRI), $100 billion annually by 2020. A related chal- the WBG has supported the Global Protocol for lenge is the sourcing of these funds. Community-scale Greenhouse Gas Emissions. The 4. Ensuring legitimacy and adequacy of climate protocol was released by ICLEI’s Local Governments finance by building transparent frameworks for for Sustainability and the C40 Cities Climate Lead- accounting, given the methodological complexity ership Group to help cities around the world measure involved and the multifaceted nature of these flows. and report GHG emissions. The OECD, UNEP, 5. Ensuring country readiness due to the relative and Global Green Growth Institute are working with absence of adequate enabling environments for the World Bank on the Green Growth Knowledge investments, and instruments for leveraging with Platform. private sector and carbon market flows. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 19 The WBG can play a major role in addressing these related investments by more than 50 percent to about challenges due to its technical capacity across sectors $3 billion. While domestic and international frame- and on an economy-wide basis, its pivotal role and works to advance carbon market solutions progres- experience with innovative development and climate sively solidify, the WBG continues to innovate and finance, and its global reach and local presence. build readiness for future scaled-up markets, leverag- ing its decades-long experience on the ground. The WBG remains fully committed to support the immediate operationalization and capitalization of The WBG will continue efforts to put capital mar- the GCF. A substantial work program is being kets to work. The variety of IBRD, MIGA, and IFC launched under the UNFCCC to advance this, and guarantee instruments can be further scaled up to the WBG will support global efforts by sharing rel- strengthen capital and financial markets as an inte- evant expertise and experience. The WBG will con- gral element of wholesale approaches to governments tinue serving as interim trustee to the Adaptation and the private sector. Efforts are also under way— Fund, trustee to the GEFs dedicated climate funds, for example, in the Latin America and Caribbean and potentially as interim trustee for the GCF. Region—to develop asset-backed green bonds, an innovative climate financing instrument. Drawing on To help address the risk of a financing gap after 2012, the best expertise available, it is expected that this the WBG will scale up efforts to accelerate disburse- first-of-a-kind security will be launched in the inter- ment of dedicated climate and development finance national bond market by a Latin American energy instruments. The WBG will continue to maximize company. its convening power and market presence to (a) mobi- lize additional concessional and innovative finance, Measuring Progress (b) facilitate the development of innovative market- based financing mechanisms, and (c) leverage private For the WBG going forward, important objectives sector resources. include tracking progress in the delivery of finance (with climate cobenefits), the climate impacts of To drive leverage, scale, and impact, a particular operations, and the achievement of climate outcomes. effort will be invested to refine, develop, and execute financing instruments that attract the private sector. A new Climate Coding System to track the climate IFC expects to increase climate-related investments (mitigation and adaptation) cobenefits of the Bank’s to at least 20 percent of its annual long-term commit- portfolio will be made mandatory starting in fiscal ments and 10 percent of its short-term commitments 2013. The system provides detailed guidance to within three years—increasing its annual climate- World Bank task teams to assess and record the share 7 The system does not measure/report the amount of avoided carbon emissions or increases in climate resilience. The shares for mitigation and adaptation are independent of each other and are made using a “without project� situation baseline. 20 D E V E LO PM E N T A N D C L I M AT E C H A N G E of investments (dollars) that provide (a) direct climate understand the Bank’s carbon footprint, help client adaptation benefits; and/or (b) direct climate mitiga- countries seek and obtain concessional finance where tion benefits for each component of the project.7 The GHG analysis suggests that there is scope for finan- new system will enable the Bank to report climate- cial assistance, and learn from such analysis. It is not related activities in a consistent and transparent intended to guide project selection. manner across the entire portfolio. It is based on the OECD DAC Rio markers, which classify projects A two-track approach to climate change results based on the overall objectives of the project.8 The measurement has been employed. In 2008, the system has been developed in consultation with other SFDCC adopted an immediate set of actions to MDBs and the OECD DAC Secretariat.9 measure WBG progress over fiscal years 2009–11. An update on the status of these actions is provided A corporate commitment to better understand the in annex 2. It demonstrates the strong mainstream- GHG footprint of the WBG portfolio is articulated ing and scaling-up of actions that were envisaged to in the SFDCC. In February 2009, IFC began esti- be undertaken on climate change when the mating GHG emissions for all new, real-sector proj- SFDCC was prepared in 2008. A process was also ects.10 IFC is now introducing methodologies for initiated to develop a forward-looking results GHG emission reduction calculation for its climate- framework for climate change, included in annex 4. related projects. GHG analysis has been piloted in This results framework has been developed through select energy, transport, and forestry sector projects a consultative exercise with all relevant sectors, at the World Bank. It is expected the GHG footprint drawing on indicators that are already in use to of investments will become a business requirement measure progress and performance. This will con- for the World Bank starting January 2013 in select tinue to evolve as improved measurement and data sectors, and will be introduced across the Bank over a becomes available to track outcomes from the period of two years. The purpose of this analysis is to WBG’s portfolio. 8 All assessments are carried out at the project subcomponent level, the lowest level for which costs are available. 9 Retroactive coding of all World Bank lending approved in fiscal 2011 shows that 25 percent of activities are expected to provide climate change cobenefits in over 60 countries; almost $7 billion in funding commitments support mitigation cobenefits; and over $2 billion support adaptation cobenefits, with a stronger focus on adaptation in IDA and mitigation in IBRD countries. 10 Not for financial intermediary or advisory services. A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 21 5. Conclusion At the UNFCCC meeting in Durban in December infrastructure, and urban development; (b) issues of 2011, governments decided that by 2015 they will energy, water and food security, and migration; and arrive at a global agreement on climate change. The (c) the cost of delayed action and policy lock-in. agreement will require all countries to combat cli- mate change in accordance with the goals, principles, The urgency and scale of the challenge requires a and means set out in the UNFCCC framework. continued learning-by-doing approach as we respond The agreement would enter into force by 2020. to the immediate needs and opportunities of our cli- Additional modalities to support climate action in ents and prepare for longer-term transformation. The developing countries will flow from this agreement, importance of sustaining strong diagnostics and but it may take time to operationalize new knowledge management, and effectively applying instruments. achieved learning is fundamental to realizing this transformation. The WBG has successfully worked with clients and partners to mainstream climate considerations into The SFDCC has helped position the WBG at the the WBG’s core business and strategies to reach forefront of knowledge generation, innovation, and impact on the ground. Yet this remains a make-or- financing for climate change. But more needs to be break decade for climate action despite escalating done. While adhering to its mission of promoting levels of engagement within and outside the WBG. inclusive growth and poverty reduction, the WBG is The window of opportunity to curb emissions, limit committed to work with its public and private sector the rise in global temperatures, and build climate clients to support readiness efforts by scaling up resilience among clients is closing. The looming gap financial innovation and building capacity to deliver in climate finance and lack of a legal framework in transformational climate action that supports inclu- the near term will require voluntary action and lead- sive and sustainable development. In doing so, the ership to accelerate efforts and maximize the use of WBG will place particular emphasis on strengthen- existing instruments. ing adaptation mechanisms and partnerships with the private sector. The WBG will continue to sup- Countries are demonstrating firm commitment to a port the exchange of best practice and knowledge global transformation process but lack tailored tools, with clients and partners and ensure full integration policies, capacity, and resources to enable green, of learning across WBG tools and instruments. The clean, and resilient development at scale. They are WBG will measure progress through systems to track concerned about (a) the development ramifications of financial flows, impacts and the outcomes of climate increased climatic variability within sectors such as support across its portfolio, retaining flexibility to agricultural production, human and animal health, adjust interventions as needed. 22 D E V E LO PM E N T A N D C L I M AT E C H A N G E List of Abbreviations and Acronyms AAA analytical and advisory activities CIC Climate Innovation Center ADB Asian Development Bank CIF Climate Investment Funds AF Adaptation Fund CNG compressed natural gas AfD Agence Française de Développement CODE Committee on Development AFR Africa Region Effectiveness AGF United Nations Secretary-General’s COP Conference of Parties High-Level Advisory Group on Climate CSP concentrated solar power Change Financing CTF Clean Technology Fund ARD Agriculture and Rural Development DAC Development Assistance Committee Department DPL Development Policy Loan AusAID Australian Agency for International DPO Development Policy Operation Development DRM Disaster Risk Management BioCF BioCarbon Fund EAP East Asia and the Pacific Region BRT bus rapid transit EC European Commission CAADP Comprehensive African Agriculture Development Programme ECA Europe and Central Asia Region CAS country assistance strategy EE energy efficiency Cat DDO Catastrophe Deferred Drawdown ENV Environment Department Option ERPA Emission Reduction Purchase CCS carbon capture and storage Agreement CDM Clean Development Mechanism ESMAP Energy Sector Management Assistance Program CEA Country Environmental Assessment ESW economic and sector work CEET carbon emissions estimator tool FAO Food and Agriculture Organization CER certified emission reduction FCPF Forest Carbon Partnership Facility CFOs climate finance options FIP Forest Investment Program CGIAR Consultative Group on International Agricultural Research GCF Green Climate Fund Ci-Dev Carbon Initiative for Development GEF Global Environment Facility A S T R AT EG I C FR A M E WO R K F O R T H E WO R L D BA N K G R O U P: T EC H N I C A L R E P O R T 23 GFDRR Global Facility for Disaster Reduction MDTF Multi-Donor Trust Fund and Recovery MENA Middle East and North Africa GHG greenhouse gas MIGA Multilateral Investment Guarantee GIZ Deutsche Gesellschaft fuer Agency Internationale Zusammenarbeit MNA Middle East and North Africa Region HCFC hydrochlorofluorocarbon MOU Memorandum of Understanding IBRD International Bank for Reconstruction MRV measurement, reporting, and verification and Development NAMA Nationally Appropriate Mitigation ICT information and communication Action technology NAP National Adaptation Plan ICZM integrated coastal zone management NAPA National Adaptation Programme of IDA International Development Association Action IEA International Energy Agency NCCAP National Climate Change Action Plan IEG Independent Evaluation Group NEPAD New Partnership for Africa’s IFC International Finance Corporation Development IMF International Monetary Fund OCHA Office for the Coordination of JICA Japan International Cooperation Agency Humanitarian Affairs KP knowledge product ODA Official Development Assistance LAC Latin America and the Caribbean OECD Organisation for Economic Co- LCD low-carbon development operation and Development LCR Latin America and the Caribbean OPCS operations policy and country services Region PIN project idea note LDCF Least Developed Countries Fund PMR Partnership for Market Readiness LED low-emissions development PoA Programme of Activities LULUCF land use, land-use change, and forestry PPCR Pilot Program for Climate Resilience MAC marginal abatement cost PPIAF Public-Private Infrastructure Advisory MAIN Mitigation Action Implementation Facility Network PPP public-private partnership MDB multilateral development bank PSIA Poverty and Social Impact Analysis MDG Millennium Development Goal RE renewable energy 24 D E V E LO PM E N T A N D C L I M AT E C H A N G E REDD Reducing Emissions from Deforestation UN United Nations and Forest Degradation UNCSD United Nations Conference on REDD+ Reducing Emissions from Deforestation Sustainable Development and Forest Degradation, forest carbon UNDP United Nations Development stock conservation, sustainable Programme management of forests, and enhancement UNEP United Nations Environment of forest carbon stocks Programme SAR South Asia Region UNFCCC United Nations Framework Convention SCCF Special Climate Change Fund on Climate Change SCF Strategic Climate Fund UNICEF United Nations Children’s Fund SDV Social Development Department UNISDR United Nations International Strategy SIDS small-island developing states for Disaster Reduction SIP Strategic Investment Program VPU vice presidential unit SLM sustainable land management WBG World Bank Group SMEs small and medium enterprises WBI World Bank Institute SPCR Strategic Program for Climate Resilience WDI World Development Indicators SREP Scaling Up Renewable Energy in WDR World Development Report Low-Income Countries Program WHO World Health Organization STAQ regional sustainable transport and air WSP Water and Sanitation Program quality TA technical assistance TF trust fund Note: All dollars are U.S. dollars unless otherwise TTL task team leader indicated. The World Bank Group 1818 H Street, NW Washington, D.C. 20433 USA Tel: 202-473-1000 Fax: 202-477-6391 Internet: www.worldbank.org/climatechange