54782 I NF RA GUIDANCE NOTES THE WORLD BANK, WASHINGTON DC July 2009 IN-3 "Greening" The Infrastructure Recovery and Assets (INFRA) Platformi This Guidance Note is a product of the Sustainable Development Network and is aimed at helping World Bank Task Team Leaders and other Bank specialists in the design and implementation of infrastructure investments, developed as part of the Infrastructure Recovery and Assets (INFRA) Platform. The INFRA Platform has been developed to bridge infrastructure financing, project preparation, and capacity gaps resulting from the global financial crisis. The Platform comprises a rapid diagnostic tool to identify at risk infrastructure projects, a concessional financing window to support the preparation and financing of projects, initiatives for parallel and donor financing, and a common reporting system. More information at www.worldbank.org/infra Abstract "Greening" infrastructure potentially offers a convergence of delivering multiple objectives: promoting economic growth and development, enhancing long-term competiveness, and poverty reduction along with environmental sustainability. This Guidance Note is aimed at providing a broad framework for the design and implementation of infrastructure investments, developed as part of the INFRA Platform, that helps increase resilience to climate variability and change, and provide infrastructure services through lower emission alternatives wherever possible. OBJECTIVE financing that can help in buying-down the cost of Greening efforts in the context of the World The primary objective of this note is to Bank's future infrastructure development summarize the key elements of Greening portfolio. approaches that could be incorporated under the interventions proposed as part of the INFRA WHY "GREEN" IN THE TIME OF CRISES? platform. In this context, "Greening" is defined as identifying and supporting opportunities to Coming at the heels of the food and fuel crises, improve natural resource management and the financial crisis has quickly transformed into increase resilience to climate variability and an economic crisis for World Bank client change, and provide infrastructure services countries, with a disproportionate impact on the through lower emission alternatives (with poor and vulnerable. It comes at a time when respect to harmful local pollutants and GHGs) the World is also faced with the real and wherever possible, while meeting the core growing threat of climate change, which ­ based objectives of re-vitalizing the economy and on current scientific evidence and climate generating employment. This note also projections - will lead to unavoidable impacts provides information on sources and such as water scarcity, and increased frequency mechanisms of additional and concessional of extreme weather events. This has the 1 This note was prepared by Sameer Akbar, with inputs from Andreas Kopp, Catherine Revels, Michael Jacobsen, Ashok Sarkar, Daniel Hoornweg, Kseniya Lvovsky, Elif Kiratli, and Philippe Ambrosi. potential to further aggravate the economic efforts in infrastructure have the prospect of impacts, particularly on the poor and vulnerable leading economic recovery while positioning in developing countries given their lack of countries for longer-term sustainable resources and capacity. development. There are also significant employment creation opportunities in the Green The timing of these crises has focused the sectors as part of short-term stimulus attention of national governments and the global package(s). development community to seek complementarities between the respective paths The infusion of new fiscal (stimulus) resources to recovery and future resilience. This in response to the global economic crisis, convergence is clearly illustrated in Table 1, coupled with availability of additional climate which shows that the fiscal stimulus packages of financing provides an opportunity for helping a number of countries include a significant share affected economies, as well as putting their of "Green" components, which are as high as infrastructure on a more environmentally 38% for China and 80% for South Korea (see Box sustainable path. 1). Clearly, there is acceptance that Greening Box 1: Examples of "Green" Components of Stimulus Packages As part of its stimulus package, China plans to i) promote smaller cars and alternate energy vehicles, ii) expand rail networks, iii) develop flexible and sophisticated electricity grid to enable greater use of renewable energy, and iv) enhance water and waste water management. South Korea's stimulus package includes i) a commitment to increase energy supply from renewable sources, ii) building energy efficiency measures, iii) allocation for promotion of fuel efficient vehicles, iv) expansion of rail network, bike paths, other public transport modes, and v) water and waste water management. through the latter. Given their inherent nature, THE WORLD BANK GROUP RESPONSE SILs are good at delivering physical interventions (at design, construction, and The World Bank Group Infrastructure operational stages of a project cycle) while DPOs Framework for Recovery and Assets (INFRA) are effective at facilitating institutional / policy platform is a manifestation of the global / regulatory / fiscal reforms. Both these response to the financial and economic crises. In instruments offer significant opportunities to addition to utilizing the Bank's existing lending scale up the delivery of projects and actions that instruments, INFRA targets the employment of are "Green" in nature, and in convergence with analytical and advisory services to support key the objectives of the World Bank's Strategic infrastructure operations, including those that Framework for Development and Climate support the Green agenda. It will also support Change (SFDCC). upstream diagnostic analysis and technical assistance during project implementation. The WHAT ACTIONS CAN BE TAKEN? upstream diagnostics will be a necessary tool to identify potential Greening entry-points in Given the long life time of infrastructure to be lending operations, including parallel financing supported under the INFRA platform ii, opportunities, as well as in scoping the technical "Greening" provides a strategic opportunity for assistance requirements. the Bank to help facilitate longer-term sustainable development. New approaches to It is expected that conventional Specific incorporate Greening opportunities in early Investment Loans (SILs) and Development stages of preparing interventions under the Policy Operations (DPOs) will form the two INFRA platform will help prevent client main lending instruments under the INFRA countries from locking-in to a high-carbon platform, with the bulk of the lending expected emissions path. In addition, investments in 2 infrastructure should also help incorporate "Green" investments face technical, climate resilience and adaptability to current institutional, policy and financial barriers, often and future climate variability and impacts that accentuated by irrational tariffs in a large these client countries face. One possible number of the client countries. Energy Efficiency approach that has also been recommended measures in key sectors include, inter alia: under the SFDCC is to undertake screening of buildings (better insulation, advanced windows, all relevant interventions for opportunities to EE lighting, space conditioning, water heating reduce GHG emissions, as well as for their and refrigeration technologies); industry (waste vulnerability to extreme weather events. The heat recovery, cogeneration, efficient drives); preferred way to implement these actions under households (EE lighting, appliances, and the INFRA platform is to prioritize and focus on improved cook stoves); Agriculture (efficient interventions that are already "tried and tested" irrigation water pumping); Power supply and in past projects, before venturing into new distribution (efficient generation plants and methods and applications. T&D loss reduction measures like efficient distribution transformers and smart metering The following sections provide an illustrative systems).iii list of possible "Greening" interventions that the World Bank has employed in various sectors In the short- to medium-term, encouraging and could possibly be scaled-up further under investment and use of RE sources such as small the INFRA platform. However, their hydro, wind, biomass, geothermal and solar, is applicability will depend on country-specific considered a win-win solution from both priorities and the enabling environment. economic and environmental standpoints. While Examples of World Bank interventions that the developing world has 1.6 billion people include "Greening" components are presented lacking access to modern energy services, in Box 2. Annex A provides a list of useful mostly in Sub-Saharan Africa (SSA) and in references and sources of additional information South Asia, RE opportunities, which lend related to Greening infrastructure. themselves more readily to decentralized, off- grid installations than do conventional sources ENERGY of energy, become an important cost-effective choice for the provision of the infrastructure, Both renewable energy (RE) and energy particularly amongst populations that are sparse efficiency (EE) offer tangible "Greening" and dispersed across far-flung areas, away from solutions towards climate-friendly development urban centers. Renewable Energy solutions in while meeting the pressing needs for scaling up many countries, such as many implemented by energy access for development. the World Bankiv, have already demonstrated their efficacy in terms of providing energy A range of EE interventions, across the entire access to the poor as well as creating chain of modern energy production, distribution employment (e.g. Bangladesh, China, Vietnam, and consumption, and ensuing energy saving and now in Africa). Globally about 2.3 million options that exist across different sectors, jobs have been created in the RE sector in recent ranging from households to buildings to yearsv, even though these provide only 2 percent industries, offer multiple opportunities to of global primary energy. simultaneously address the challenge of rising energy prices, dwindling energy security and TRANSPORT rising local and global environmental impacts. These interventions can also have a significant Transport projects which are advanced in the impact in creating new jobs. While disparities in project preparation cycle can have a strong energy intensities between developing and impact on effective demand at low industrialized countries, create short- to administration and implementation costs due to medium-term opportunities for providing their generally large scale. Desirable reforms of significant gains through EE in both the supply- transport infrastructure and policy reforms, and demand-side and would continue to be such as increased expenditure on maintenance, scaled-up under the INFRA platform, these are particularly labor-intensive and offer 3 protection against crisis-induced job lossesvi. In tax, emission trading schemes etc.) and rapid addition to the benefits as "counter-cyclical" urbanization is associated with drastic increases expenditures, they offer opportunities to make of road congestion, mass transit projects are of the transport sector more resilient against the particular importance to provide affordable consequences of climate change and to change mobility at the urban level. the modal structure of transport to reduce its environmental footprint. At the same time the WATER AND WASTE investments meet the increasing demand for passenger and freight transport services. Greening of INFRA in the field of water management can include actions in three main The most important short-run measures are the areas: watershed management and catchment reform of infrastructure maintenance and protection, urban and rural water supply and retrofitting existing facilities. Maintenance for sanitation, as well as multi-purpose roads and rail tracks is underprovided in many infrastructure. countries, leading to high asset value losses which exceed the required maintenance costs. Local/rural employment guarantee schemes Compared to new investment the labor-intensity and/or community driven development of maintenance is usually far higher. Climate schemes may support the Green agenda through change will even increase the demand for the construction of small-scale ecological reliable and more frequent maintenance services infrastructure such as reforestation, small water to avoid an increase in asset losses and to storage and retention, rainwater harvesting etc. respond to an increased wear and tear due to In relation to existing projects and where flooding and more frequent extreme weather appropriate such components may be added in events. Retrofitting existing infrastructure is a the short-term. second dimension of scaling-up adaptation in transport. It will include the rehabilitation and Ongoing and planned urban water supply and up-grading of drainage systems to avoid traffic wastewater investments can be extended with disruptions by changing precipitation patterns additional emphasis on rehabilitation of existing and the protection of bridges, canals and port infrastructure and with a focus on energy facilities from extreme weather events and rising efficiency in infrastructure and operations. sea levels. Rehabilitation investments are often more labor intensive and will reduce water losses and Limited and uncertain prospects of technology energy consumption. A large number of options substitution to reduce the environmental costs exist for improved energy efficiency including of transport will require a change of the modal renewed pumping stations, better pressure structure of transport to reduce environmental zoning, leakage detection and repair, more costs. In a long-term perspective, the increase in energy efficient treatment plants etc. Digestion infrastructure investment can correct the modal of wastewater solids combines improved structure which may have grown out of an infrastructure with addressing climate change as imperfect regard for the external costs of the digestion process generates methane that transport. The neglect of environmental costs can be used for power generation or other has privileged the road sector over rail and energy uses, while reducing the volume of waterborne transport, and individual car use solids that need further management (landfill, over mass transit in the urban context. The long, composting, land application, etc). In a number over half a century lifetime of infrastructure of cases investments in wastewater have facilities and the fact that investment included wastewater re-use (recently Morocco). expenditures are sunk, determines the long-run The issue of designing wastewater treatment pollution and carbon-intensities of transport. plants to make the effluent and sludge Changes in the modal structure of transport appropriate for re-use is becoming more avoid a future "lock-in" of developing countries prominent with the increase in peri-urban into transport systems with high environmental agriculture. costs. As external costs of transport will increasingly be internalized (e.g. through carbon 4 For rural water supply, there are often options the financial crisis. With more than half of the to improve drainage and rehabilitate irrigation world's population residing in cities, they are infrastructure, which have negative economic also responsible for almost three-quarters of costs to the economy as a whole. Principled, but energy consumption and related GHG practical interventions in making such systems emissions. In addition, many coastal cities are financially sustainable when including this type threatened by the impacts of climate change (e.g. of investment may yield very high returns. sea-level rise). Urban poor are particularly vulnerable in this respect. Multi-purpose infrastructure, such as dams and reservoirs, from the smallest to the largest may Most of the World's existing backlog on the provide win-win-win opportunities in terms of Millennium Development Goals in cities is mitigation of climate change, adaptation to caused by poor urban environments. Immediate variability in run-off and increased resilience of requirements for the urban poor are increased local communities to deal with climate change, access to basic urban services: water, sanitation, in addition to the economic benefits from power safe neighborhoods. Longer term efforts for the production and irrigation. However, urban poor involve moving people away from environmental flows continue to be a challenge dangerous lands. Experience however shows for these projects, and need to be studied. that the first option is in-situ improvement. Solid waste management projects including The most important area for targeting within the landfill investments that include collection of urban sector is municipal management. Through gas (and possibly electricity production) is a blend of enhanced staff capacity; improved another area that combines improved data collection, management and infrastructure with the climate change agendas. communication; better integration of community Improvement of landfill design and operations groups; legal framework; and clear and credible that maximizes the potential for landfill gas inter-governmental relations, overall city capture as well as provides other environmental management and service delivery improves. and public health benefits is an outgrowth of These improvements to service delivery, if well such a program. Composting of the organic targeted, can benefit the poor most dramatically fraction of municipal waste and/or wastewater while also contributing to the Greening agenda. treatment plant sludge is another example of an action in the waste management field that can For the long term development of cities, support combine improved infrastructure with can be provided to ensure integrated urban addressing climate change. There are many planning in coordination with investment in examples of successful inclusion of traditional transport infrastructure which can have a lock- human scavengers into such projects, thus in impact on settlement patterns and hence providing better working conditions while determine the trajectory of future growth. preserving jobs. HOW TO ENABLE "GREENING" ACTIONS? In both the short- and the long-term an increased emphasis on a risk-based approach to In addition to financing the interventions, project preparation will be essential to secure appropriate government policies and the viability of investments, and in the face of regulations, and fiscal measures, accompanied uncertainties induced by climate change. In by dedicated institutions, will be indispensable some cases such an approach will require an to create an enabling environment for Greening additional investment now in order to reduce infrastructure. These measures also create the risk of poor performance (or failure) later. incentives to generate more private sector participation which could help leverage limited URBAN DEVELOPMENT and targeted public sector funds. Experience from around the world, particularly the Cities have emerged as the engines of economic industrialized countries, indicates that broad growth for most countries in the world, and range of financial incentives, aggressive subsidy hence are facing a disproportionate impact of reforms, and a spectrum of EE policies and RE 5 legislations, together with appropriate that can support Greening interventions in the government and para-statal institutions that are medium- to long-term. effective in working with private players and domestic financial sector for implementing and WHAT ARE THE ADDITIONAL enforcing the measures, can go a long way in FINANCING MECHANISMS AVAILABLE? Greening infrastructure. However, implementation always faces difficult political A number of dedicated resources are available economy considerations, which need to be to provide financial incentives for scaling up the assessed on a case by case basis. Table 2 presents Greening agenda within the World Bank Group illustrative examples of such enabling measures infrastructure portfolio. These are shown in Table 3 belowvii, and discussions are on-going to leverage additional financial resources. Table 3 - Main Instruments for Financing Climate Action viii (A=Adaptation; M=Mitigation) Adaptation Fund Funding mainly comes from a 2% levy on Certified Emission Reductions A (CERs) issuance. World Bank is trustee for Adaptation Fund. Carbon Funds and 12 funds and facilities, of which 2 recent facilities focusing on post-2012: (i) Facilities the Forest Partnership Facility (FCPF), to pilot a market mechanism to M provide incentives for reducing emissions from deforestation and land degradation; (ii) the Carbon Partnership Facility (CPF), to use carbon finance to catalyze a transformation toward low-carbon economic development. Climate Investment The Clean Technology Fund: to finance scaled-up demonstration, M Funds deployment, and transfer of low-carbon technologiesix. A The Strategic Climate Fund: (i) Pilot Program for Climate Resilience (PPCR) to help build climate resilience in core development; (ii) Forest Investment Program (FIP); (iii) Program to Scale up Renewable Energy (SREP) for Low M Income Countries. Global Environment M Largest source of grant-financed mitigation resources. Special Program on Facility (GEF)x Adaptation (SPA) is a funding allocation within the GEF T to support pilot and demonstration projects that address local adaptation needs and generate (A) global environmental benefits in all GEF focal areas. UNFCCC GEF- Least Developed Countries Fund (LCDF): helps in the preparation and administered Special financing of implementation of national adaptation programs of action Funds (NAPAs) to address the most urgent adaptation needs in the least developed A countries. Special Climate Change Fund (SCCF): supports adaptation and mitigation projects in all developing countries, with an emphasis on adaptation. Global Facility for Partnership within the UN International Strategy for Disaster Reduction Disaster Reduction (ISDR), focusing on building capacities to enhance disaster resilience and A and Recovery adaptive capacities in changing climate. In addition, there are specific instruments for climate risk managementxi Other Trust Funds M Grant financing for knowledge products, capacity building, upstream and Partnerships; project work/pilots; Partial risk guarantees to support development / Guarantees adoption / application of clean energy technologies, including those not A fully commercialized in client countries. EXPECTED OUTCOME(S) AND countries, while addressing the drivers and INDICATORS impacts of climate change. In order to measure / track the outcome from a global environment Greening the INFRA platform will help deliver perspective, following are some of the generic positive outcome of re-vitalizing the economy indicators proposed for interventions under the and spurring employment in World Bank client INFRA platform: 6 Enhanced public spending on CONCLUDING REMARKS development measures that bring about climate benefits. The economic crisis offers an opportunity to Reduction in GHG emissions compared reinvigorate a transition across various sectors, to without Greening scenario. towards a more climate-resilient and low-carbon Amount of leveraged additional private economy. Greening infrastructure potentially investments through different climate offers a convergence of delivering multiple financing instruments and policies. objectives: promoting economic growth and Increased number of regulatory, development, enhancing long-term institutional and policy frameworks competiveness, and poverty reduction along introduced/strengthened for scaling up with environmental sustainability. Greening of Green interventions in the energy sector. infrastructure should be considered as a good Enhanced investment in resilience to development practice and as a means for extreme weather events such as enhanced business opportunities. In droughts and floods. communicating to clients about what options Enhanced awareness and capacity of are available to further scale up the Bank's task teams and clients to access Greening agenda, it is important to identify the additional climate finance to deliver local opportunities and additional, positive co- local and global benefits. benefits that can accrue from Greening, such as higher employment, reduced local pollution, While all the indicators will not apply to each and better quality of life. xii. and every proposed intervention, they can be made more specific depending on the nature of intervention. Box 2: Examples of World Bank Interventions that Include "Greening" Components The names and identification numbers of relevant IBRD/IDA project interventions, some of which are blended with climate finance instruments, are provided below: P115066: Efficient Lighting Program, Togo P090119: Energy Efficiency Project, Argentina P103238: Renewable Energy Development Project, Vietnam P114012: Sustainable Transport and Air Quality, Mexico P092509: Urban Transport Project, Ghana P097974: Multi-sectoral Water and Electricity Infrastructure Project, Burundi P104937: Solid Waste Sector DPL, Morocco P 110849: Climate Change DPL, Mexico P096481: Municipal Services Improvement, Macedonia P095847: Second Water Sector Investment, Tunisia P099224: Liaoning Third Medium Cities Infrastructure Project, China P107612: National Water Supply and Sanitation Program, Moldova P108078: Environmental Management Project, Maldives P103539: Conservancy Adaptation Project, Guyana 7 ANNEX A: REFERENCES AND USEFUL SOURCES FOR ADDITIONAL Energy and Climate, INFORMATION http://go.worldbank.org/7W3DZHKNF0 http://go.worldbank.org/E74523IC70 A Climate for Recovery: the Color of Stimulus http://www.worldbank.org/energy goes Green, Hong Kong and Shanghai Banking Corporation (HSBC), February 2009 Environmental Life-cycle Assessment of Passenger Transportation A Green Global Economy Assessing US http://www.sustainable-transportation.com/ Economic Stimulus and the Prospects for International Coordination, Policy Brief, EU Transport Indicators Petersen Institute for International Economics http://www.eea.europa.eu/themes/transport/i and World Resources Institute, February 2009 ndicators Adaptation Fund, Freight best Practice http://go.worldbank.org/94MCZJN740 http://www.freightbestpractice.org.uk/ An Outline of the Case for a "Green" Stimulus, Global Environment Facility (GEF), Policy Brief, Alex Bowen, Sam Fankhauser, http://www.thegef.org Nicholas Stern, and Dimitri Zenghelis, Granthan Research Institute on Climate Change and Global Facility for Disaster Reduction and Environment and Centre for Climate Change Recovery, http://www.gfdrr.org Economics and Policy, February 2009 Global Green New Deal: Policy Brief, United Autoblog green National Environment Program and http://www.autobloggreen.com/ International partners, March 2009 Bringing Home the Green Recovery: A User's Green Growth: Overcoming the Crisis and Guide to the 2009 American Recovery and Beyond, OECD, 2009 Reinvestment Act, http://www.greenforall.org/resources/recover Green Jobs: towards decent work in a yusersguide sustainable, low-carbon world, UNEP 2008 Carbon Finance, Green Jobs Guidebook: Employment http://www.carbonfinance.org Opportunities in the New Clean Economy, www.edf.org/cagreenjobs Carbon Finance and Urban Waste, http://go.worldbank.org/MIQIKRO3N0 Infrastructure Recovery and Assets INFRA http://go.worldbank.org/1VP9TKKAO0 Platform: World Bank Group Response to http://go.worldbank.org/6GRFSZ8ZZ0 Support Infrastructure, March 10, 2009 Climate Investment Funds, International Energy Agency (IEA): Transport www.worldbank.org/cif Sector http://www.iea.org/Textbase/subjectqueries/ Declaration on Green Growth, Adopted at the keyresult.asp?KEYWORD_ID=4121 Council Meeting at Ministerial level on 25 June 2009, OECD Non-motorized Transport: Confronting Poverty Through Affordable Mobility (Infra Note UT-4), Eco Transit http://www.ecotransit.org/ Paul Guitink, Susanne Holste and Jerry Lebo, The World Bank, April 1994 Ecological Cities as Economic Cities, http://www.worldbank.org/eco2 8 Non-Motorized Transport in African Cities: The official UK source for Car Fuel Lessons from Experience in Kenya and Consumption and Exhaust Emissions Figures Tanzania, Sub-Saharan Africa Transport Policy http://www.vcacarfueldata.org.uk/ Program, SSATP Working Paper No. 80, The World Bank, September 2005 The Role of Non-motorized Transport. Chapter 9 from "Cities on the Move, A World Bank OECD: Environmentally Sustainable Urban Transport Strategy Review, 2002 Transportation http://www.oecd.org/department/0,3355,en_2 Towards a global Green Recovery: 649_34363_1_1_1_1_1,00.html Recommendations for Immediate G20 Actions, Report Submitted to the G20 London Meeting, PEW Center on Global Climate Change: Ottomar Edenhofer and Lord Nicholas Stern, Transport Sector Resources April 2009 http://www.pewclimate.org/technology/secto r/transportation Urban Environment and Climate Change http://go.worldbank.org/EGNG7C0SS0 Pathways to a Low Carbon Economy: Version 2 of the Global Greenhouse Gas Abatement Cost UNFCC GEF-administered Special Funds ­ Curve, McKinsey & Company, 2009 Least Developed Countries Fund (LDCF) - http://go.worldbank.org/0AMPS3UNG0 Policy and Institutional Reforms to Support Climate Change: Adaptation and Mitigation in UNFCC GEF-administered Special Funds ­ Development Programs, A Practical Guide, Special Climate Change Fund (SCCF) - Muthukumara Mani, Anil Markandaya, Viju http://go.worldbank.org/03VKHCLY60 Ipe, The World Bank, 2008 Water and Climate, Strategic Planning for Non-motorized Mobility http://www.waterandclimate.org/index.php?i (Infra Note OT-4), Paul Guitink, August 1996 d=5thWorldWaterForumpublications810 http://go.worldbank.org/9M1BQ7DZR0 Strategic Framework for Development and Climate Change, The World Bank World Resources Institute EMBARQ: Center for http://go.worldbank.org/PGEGF0GKW0 Sustainable Transport http://www.wri.org/project/embarq Sustainable Prosperity: making markets work for the environment, Building a Green Economic Stimulus package for Canada www.sustainableprosperity.ca Sustainable Urban Transport Project http://www.sutp.org/ The Eddington Transport Study http://www.dft.gov.uk/about/strategy/transp ortstrategy/eddingtonstudy/ The Green Rebound: Clean energy to become an important component of global recovery plans, Hong Kong and Shanghai Banking Corporation (HSBC), Climate Change Global Renewable Energy, January 2009 9 Table 2 - Examples of Fiscal Stimulus Packages which Include "Green" Components (HSBC, 2009) Low Carbon Power Energy Efficiency (EE) Green Fund % Green Building Low C Country Period Years Fund Renewable CCS/Other Rail Grid Water/Waste USD bn Fund EE Veh + USDbn Asia Pacific Australia 26.7 2009-12 2.5 9.3% 2.48 China 586.1 2009-10 221.3 37.8% 1.50 98.65 70.00 51.15 India 13.7 2009 0.0 0.0% Japan 485.9 2009 onwards 12.4 2.6% 12.43 South Korea 38.1 2009-12 30.7 80.5% 1.80 6.19 1.80 7.01 13.89 Thailand 3.3 2009 0.0 0.0% Sub-total Asia Pacific 1,153.8 0.0 266.9 23.1% 1.80 0.00 21.10 3.30 105.70 70.00 65 Europe European Union 38.8* 2009-10 22.8 58.7% 0.65 12.49 2.85 1.94 4.85 Germany 104.8 2009-10 13.8 13.2% 10.39 0.69 2.75 France 33.7 2009-10 7.1 21.2% 0.87 0.83 1.31 4.13 Italy 103.5 2009 onwards 1.3 1.3% 1.32 Spain 14.2 2009 0.8 5.8% 0.83 United Kingdom 30.4 2009-12 2.1 6.9% 0.29 1.38 0.41 0.03 Other EU states 308.7 2009 6.2 2.0% 1.90 0.40 3.90 Sub-total Europe 325.5 0.0 54.2 16.7% 3.50 12.50 14.70 7.90 5.80 9.00 0.9 Americas Canada 31.8 2009-13 2.6 8.3% 1.08 0.24 0.39 0.79 0.13 Chile 4.0 2009 0.0 0.0% US EESA 185.0** 10 Years 18.2 9.8% 10.25 2.60 3.34 0.76 0.33 0.92 US ARRA 787.0 10 Years 94.1 12.0% 22.53 3.95 27.40 4.00 9.59 11.00 15.58 Sub-total Americas 1,007.8 114.9 11.4% 32.80 7.60 31.00 4.80 10.30 12.70 15.7 Total 2,796.0 436.0 15.6% 38.00 20.10 66.80 15.90 121.80 91.70 81.6 10 Table 3 - Examples of "Greening" Interventions and supporting Enabling Measures xiii Interventions Enabling Measures Fiscal Policy / Regulatory Design / Physical Technical Assistance Interventions Low carbon Production tax credit; Reform of Open access to energy Development and installation Communication to increase or renewable tariff structure and promote produced from RE sources; of software and systems to public awareness on benefits energy feed-in tariffs; Provide capital Reform legal environment to allow accurate load and of clean energy; Programs to production investment grants to promote promote use of RE; Develop demand forecasting to enable develop local expertise in the and use (e.g. and commercialize RE institutional arrangements dynamic systems installation, operation, wind, solar, generation; Financial incentives for operation of RE projects; configuration management, and hydro, to support the development of Programs to enforce maintenance of technically biomass) advanced electricity storage mandatory RE targets and economically proven RE technologies to store generated (portfolio standards) to raise systems; Support energy from RE sources i.e. the contribution of RE demonstration of RE wind and solar; Green sources in the total electricity technologies to encourage Innovation R & D Fund targeted supply mix; Programs to adoption; Increasing R & D at universities and the private develop codes and of cleaner power generation sector procedures for RE and storage generation and distribution Upgrading Subsidies for incentivizing Plans for grid upgrade and Creating a smart national Communication to increase and access to grids for energy extension; Plans for smart power grid with smart public awareness about extending generated from RE sources metering and smart grids metering; Connecting RE demand-side measures; electricity sources to the grid; Combining Programs to develop local grids with increasing energy storage expertise for operation and maintenance of upgraded grids; Support to R&D for energy storage Electric home Upfront subsidies to Codes and standards, energy Educational and awareness appliance manufacturers; Incentives to labeling; Programs to programs to encourage consumers for use; Subsidy enforce minimum EE consumers to select EE schemes to provide financial requirements /standards for appliances; Programs to incentives/discounts for retail household appliances, office develop the capacity of the purchase price of the energy equipment, etc; Schemes to relevant institutions and 11 Interventions Enabling Measures Fiscal Policy / Regulatory Design / Physical Technical Assistance Interventions saving devices; Financial enforce mandatory energy professional organizations; incentives penalties to enforce labeling Increasing R & D for EE labels on equipments and enhancing EE of home appliances appliances Building Low-interest loans to those who Codes and regulations to Design / construction of new Training and capacity construction want to improve EE and include EE and resilience low-carbon and climate building to increase access / / retrofits resilience of buildings; measures in building (e.g. resilient buildings; Use of adoption of appropriate Performance-based tax credit minimum thermal resistance appropriate building materials technologies and measures; programs to encourage rapid of walls, maximum window (solar panels on roofs, heat Provide assistance and adoption of energy efficient / heat loss/gain, and recovery ventilation systems develop guidance material Green building practices; Mass minimum boiler efficiency); etc); Scope for building for households , architects procurement for public Mandatory EE audits of envelope and weatherization and construction industry; buildings boilers and air conditioning retrofits such as insulation, Support programs to units; Enforcement of certain mechanical measures to disseminate knowledge Energy Performance heating and cooling systems, about strategies and Standards for buildings; and replacement furnaces, available technologies of Development of EE boilers, and air-conditioners; sustainable energy use for legislation for buildings; Public buildings such as cooling and heating services Voluntary EE ratings for school, offices in vulnerable buildings areas to serve as multipurpose shelters against adverse weather events Roads Tax breaks for using low carbon Revision of construction All roads in vulnerable areas Training and capacity repair/ construction practices and codes and manuals to ensure to be multipurpose; building to increase access / construction technology; Easing import factor of safety for extreme Development and adoption of appropriate duties / taxes for low carbon weather events; Contract maintenance of road network, technologies and measures; technology and equipment evaluation to provide taking into account of need to Provide assistance and weightage for appropriate reduce energy use develop guidance manual for practices and technology use road construction industry; 12 Interventions Enabling Measures Fiscal Policy / Regulatory Design / Physical Technical Assistance Interventions Support dissemination of knowledge about available appropriate technologies and practices Promotion of Grants to states and Reduction of demand for Dedicated lanes for public Training and capacity modal shift to municipalities ; Preferential private transport use; transport and other high building on various aspects public loans to public transport Promote the availability and occupancy vehicles of public transport reform transport projects; Congestion pricing; use of carpools, vanpools, and management; Programs to provide discounts and public transportation; Communication campaign to and other incentives for using Enforcement of tolls on improve the image of public public transportation system congested routes transport Facilities for Provision of credit facilities for Integration of NMT into the Provision of infrastructure Communication campaigns non- NMT purchase by the poor; transport system and into such as bike lanes and for NMT promotion and motorized Improving availability and infrastructure and land use pedestrian walkways; Improve educational campaigns for all transport prices of NMTs s and spare Planning; Endorsing and NMT infrastructure in high road users; Support research (NMT) parts through the removal of facilitating the use of non- dividend areas and eliminate and new initiatives to import restrictions and lowering motorized transport modes; safety "black spots"; Introduce improve NMT performance; of tariffs and taxes Development of road design traffic calming measures to Training courses to sensitize and maintenance standards reduce speed and increase policy makers, traffic that recognize NMT as a safety for NMT users; planners and engineers to traffic component; Appropriate intersection transportation systems that Development of traffic designs to increase the efficient include all transport modes legislation that takes account flow of NMTs of NMT as a transport mode Shift freight Tax breaks for using rail; Increase private sector Design and construction of the Communications campaigns from road Frequent usage points / miles participation in rail services; rail network system taking for promoting rail freight and air, to redeemable against future use Improved service standards, account climate effects and movement; Sensitize policy rail transport including tracking facility impacts (e.g use of locomotives makers and planners about with regenerative brakes) the climate benefits of rail Low emission Scheme to provide tax Program to enforce energy Developing advanced batteries Support R&D for lower vehicles incentives based on emission- labeling with fuel efficiency for fuel efficient cars; Retooling emission vehicles, including 13 Interventions Enabling Measures Fiscal Policy / Regulatory Design / Physical Technical Assistance Interventions tax deductions for cleaner standards of all new cars and vehicle manufacturing electric, and hybrids vehicles; Programs to impose other vehicles; Set up clean- facilities lower taxes on cleaner fuels ; vehicle quotas for Investment programs to government vehicle improve fuel efficiency of procurement programs vehicles Urban Incentivize integrated planning Promulgate guidelines and Provide adequate basic Training and capacity development and mixed-use development codes for Greening, energy services infrastructure, such as building of city planners, efficient housing, and public water supply, waste managers, and relevant procurement for utilities management, transportation private stakeholders; (such as street lights); etc; Ensure that infrastructure Provision of building codes Regulation for integrated facilitates densification and template, energy efficiency urban planning and mixed reduces the need to travel; targets, city planning, use development; Target Prepare neighborhood vulnerability assessments backlog of provision of basic improvement programs ­ services to low income implement with service neighborhoods ­ map and provisions, e.g. water, protect areas of high sanitation, street upgrading vulnerability Water supply Reforms in pricing of municipal Institutional arrangement for Invest in energy efficiency in Communications and public and water used so as to reflect at comprehensive upstream water infrastructure (pumping extension/education sanitation least the full operational costs (e.g river basin) planning stations, pressure zoning etc.); programs to encourage water (inclusion of depreciation and and management to help Invest in improved operations conservation; the true economic value should solve problems of water (bulk metering, pressure Communications and public be a long term goal); Reform in quality and quantity; zoning, leakage detection and extension / education pricing of power for irrigation Mechanisms to regulate repair etc.) to reduce leakage programs to encourage good water supply and initial step in water supply; Schemes to and system inefficiency and sanitary practices; Support to pricing of the water resource to promote water conservation; reduce non-revenue water; develop institutional reflect true economic value Plans for short-term Rehabilitation of drainage and mechanisms for addressing measures to adapt to water irrigation infrastructure to water and climate issues shortages reduce wastage of water and 14 Interventions Enabling Measures Fiscal Policy / Regulatory Design / Physical Technical Assistance Interventions Use of appropriate design energy; Construct rainwater standards (water use per harvesting and storage capita, taking increased facilities and increase on-site variability in run-off into storage capacities; Recycle account, re-use of water used in cooling and wastewater etc.); Policies / processing; Infrastructure for Programs to improve access water transfer from alternative to improved water and water sources if needed; sanitation services; Foster Improve construction of water integrated water resource resources infrastructure (such management for sustainable as reservoirs, dams, canals, consumptive water use; pipelines, pumping plants, Schemes to encourage storm drainages and flood adoption of water control works etc) to adapt to conservation practices at increased variability in runoff home such as water saving or to a need for greater storage taps, flushing and showering capacity appliances Waste CDM as a source of finance for Schemes to implement Upgrade wastewater treatment Communications and public management solid waste management standards for land-fill facilities to improve effluent extension/education projects; Incentives/Tax credits performance to reduce quality and sludge treatment programs to encourage good for electricity generation from methane emissions; where appropriate; Upgrade waste management practices, landfill gases; Programs to Mechanisms to regulate landfill infrastructure to such as reduction of waste, provide tax exemption for wastewater discharge extend their life (e.g. through appropriate disposal, electricity generated by waste Design of policies (pollution segregation and compaction of separation and recycling. incineration with energy tariffs, penalties etc.) to waste); Investment in landfill recovery ensure that pollution does gas collection (and electricity not pay; Enforcement of generation where appropriate) existing pollution regulation policies 15 ENDNOTES i This Guidance Note is not intended to provide detailed operational guidance to technical staff; such information can be sourced from relevant sector teams. ii The INFRA platform will support investments in Energy, Transport, Urban and Water sectors. The overarching considerations for investment selection will be impact on the real economy in the near-term (i.e., within 12 months); and on employment in terms of labor intensity. It is anticipated that the order of priority will be projects/activities related operations and maintenance; ongoing public or public-private infrastructure projects facing liquidity problems; continued preparation of labor intensive investment projects close to implementation; and finally new labor-intensive infrastructure investments. iii Transport and Urban sector EE interventions also offer significant greening opportunities but are not elaborated in this section. iv World Bank has articulated an Africa Energy Access Plan that aims to provide new and credible way to provide access in Sub-Saharan Africa (SSA), an increase to 47% by 2030. v In comparison the oil and gas industry employed about 2million people in 1999. vi A study by Sub-Saharan Africa Transport Policy Program (SSATP) found that a loss of $ 45 bn in road assets for all of SSA between 1970 - 1989 could have been avoided by increasing maintenance by $ 12 bn vii In addition, World Bank Group is deploying efforts to increase resources mobilization, maximize leverage and impact of existing resources and instruments on core development finance, for instance through: (i) Green Bonds, to raise funds on capital markets for climate-friendly initiatives; (ii) exploit synergies between funding mechanisms (e.g. improving energy efficiency of building chillers - a major source of power demand in some developing countries - and accelerating phasing out of ozone depleting substances, building on synergies between Montreal Protocol Fund, Carbon Finance and GEF support); (iii) maximize leverage of available resources through innovative combination of instruments (e.g. combination with risk-management tools, such as Carbon Delivery Guarantee (IFC), Carbon Insurance Product (MIGA) or other in-house Guarantees, or with frontloading mechanism of future carbon finance revenues). viii Some instruments are Bank executed (e.g. TFs and partnerships) and others Recipient executed (e.g. Adaptation Fund and GEF) ix Investment plans endorsed for three countries: Egypt, Mexico and Turkey. x In addition, resources from the Special Climate Change Fund (a GEF-administered UNFCCC Special Fund) are available for technology transfer. With respect to WB engagement, cumulative GEF resources committed to mitigation projects reached US$ 1.64 billion at mid-FY08, with a leverage (on IBRD/IDA resources) of roughly 2.2. xi The WBG has begun offering a complementary suite of products and services to assist countries develop catastrophe risk financing strategies, increase penetration of insurance and access reinsurance markets. Examples include assistance to develop innovative agriculture index-based insurance programs in several low- and middle-income countries (e.g., Mongolia, India, etc.); catastrophe risk deferred drawdown option (CAT-DDO), or contingent loan providing immediate liquidity during an emergency, while other forms of assistance are being mobilized; assistance to 16 Caribbean countries in establishing the Caribbean Catastrophe Risk Insurance Facility (CCRIF), offering parametric insurance against major hurricanes and earthquakes; insurance-linked securities, to transfer catastrophe risk to capital markets. xii It is important to be aware of the sensitivities of different client countries related to climate change negotiations. xiii For a more exhaustive treatment of this subject refer to Policy and Institutional Reforms to Support Climate Change: Adaptation and Mitigation in Development Programs, A Practical Guide, (Muthukumara Mani, Anil Markandaya, Viju Ipe)The World Bank, 2008. 16