Download World Bank`s Climate Change Actions in East Asia & Pacific Region

World Bank's Climate Change
Actions in EAP Region
Jiang Ru
March 11, 2009
Hanoi Sub-Regional Workshop for Asian GEF Focal Points
Development and Climate Change

Development and Climate Change


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A Strategic Framework Approved by WB Board
and Development Committee
Guide and support response of WBG to
development challenges posed by climate
change
As part of core development efforts, effective
response to climate change must combine:


Mitigation of global GHG emissions—to avoid the
unmanageable
Adaptation at regional, national and local levels—
to manage the unavoidable
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Actions Proposed
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Step-up policy research in both adaptation
and low carbon growth
Support acceleration of new technology
Pioneer innovative market mechanisms
Create an enabling environment to tap private
sector resources
Address the resource gap through existing
and new instruments for concessional finance
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Mid-term report on SFDCC implementation (2009)
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Policy mainstreaming: >60 % of CASs FY09
address climate change
Lending mainstreaming: >40% WBG projects
FY09 contain climate actions
Strong increase lending to renewables and
energy efficiency
New financing instruments rolled out
Major AAA on climate change, including World
Development Report (WDR)
Improved partnerships and communication
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Tons CO2 per capita
EAP contains emitters of global significance
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EAP countries are among the most affected by
climate-related threats
Droughts
Floods
Storms
Sea Level rise
Malawi
Bangladesh
Philippines
All low-lying Island
States
Ethiopia
China
Bangladesh
Vietnam
Zimbabwe
India
Madagascar
Egypt
India
Cambodia
Viet Nam
Tunisia
Mozambique
Mozambique
Moldova
Indonesia
Niger
Laos
Mongolia
Mauritania
Mauritania
Pakistan
Haiti
China
Eritrea
Sri Lanka
Samoa
Mexico
Sudan
Thailand
Tonga
Myanmar
Chad
Viet Nam
China
Bangladesh
Kenya
Benin
Honduras
Senegal
Iran
Rwanda
Fiji
Libya
Note: The typology is based on both absolute effects (e.g., total number of people affected) and
relative effects (e.g., number affected as a share of GDP).
Source: World Bank Environment Department
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EAP Strategy for Delivering
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Screening
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Financing
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Include climate analysis in Bank AAA / CAS to identify large
scale, long-term mitigation opportunities
Consider carbon option in all projects under preparation
Create synergies and fill funding gaps by blending financial
instruments (FCPF/CPF, GEF, CIF, IBRD/IDA)
Develop new “climate loans” for financing and risk
management.
Capacity

Support clients’ work on GHG mitigation: analysis and
framework for client execution of programs
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Analysis of Opportunities and Risks
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
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EAP: Energy Flagship Study
ID: Low-carbon growth study and TA on REDD
methodology development and forest governance
PH and VN climate change strategy (incl. adaptation)
Climate Resilient Cities: A Primer on Reducing
Vulnerabilities to Disasters
Climate Change Impact and Adaptation Study
for the Bangkok Metropolitan Regions
East Asia Environment Monitor 2007:
Adapting to Climate Change
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Where We Are Now?
EAP CC Mitigation Portfolio in FY09

~$600m active EAP lending
portfolio* (IBRD/IDA),
representing 40% of the
Bank’s climate change
portfolio with emphasis on
energy efficiency and
renewable energy


Indonesia $300m CC DPL
under preparation
$101 m active GEF portfolio
with emphasis on energy
efficiency, renewable, clean
technologies, more recently
urban transport
World Bank IBRD/IDA Climate Change
Lending by Regions
MNA LCR
0% 2%
ECA
19%
AFR
15%
SAR
24%
EAP
40%
World Bank GEF Portfolio by Regions
AFR
8%
LCR
24%
MNA
21%
EAP
37%
ECA
9%
SAR
1%
*CC lending portfolio: data from Business Warehouse, it includes all the projects that have climate change in the title and/or
as one of operation themes
Source: Business Warehouse, Active Portfolio, FY99-FY09
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Additional Mitigation Financing in EAP
CTF Investment plans endorsed (under CIF established in July
2008)
 Philippines with $75m for RE and $50m for urban transport
 Thailand with $150 m for clean energy and $70m for urban
transformation
 Vietnam with $30m for grid investment
CTF Investment plans under preparation:

Indonesia (expected in FY10Q3)
Carbon Finance
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About $1.4b & 60% of Bank share
Kyoto funds now phasing out
CPF to be operational, VN (hydro)
CN (IGCC, biogas), ID (geothermal)
FPCF started with Readiness Fund
7 selected (IN, Lao, VN, Vanuatu moving)
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Examples for Strategic Mitigation Programs
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Renewable energy development would meet future energy demand and
help transform the power sector’s GHG emissions trajectory.
 Geothermal in ID, PH, hydro in VN, offshore wind in CN
Public transport and integration of work and living space would frame
future transportation and production choices, putting transport-related
emissions on a lower carbon trajectory while reducing air pollution.
 EcoCities in CN, Urban Transport in TH (Bangkok)
Promotion of energy efficiency would lift private and public investments in
EE and reduce future energy demand and associated emissions.
 Rural / provincial EE program in CN.
Use of waste biomass and better manure management in the agroindustry would reduce GHG emissions and reduce pollution.
 Livestock biogas energy program in CN.
Saving remaining rainforests and providing economic alternatives would
eliminate large streams of GHG emissions while protecting biodiversity.
 REDD readiness plans in VN, Lao PDR, ID.
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Adaptation Financing in EAP
GEF
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SCCF: China and Philippines
LDCF: Pacific Islands (Kiribati, Solomon Islands)
Adaptation Fund (to be operational)
The Global Facility for Disaster Reduction and recovery

Funds disaster risk assessments, mitigation policies and strategies,
prevention preparation and recovery projects at global, regional and country
levels
Strategic Climate Fund under CIF

Pilot Program for Climate Resilience (PPCR): Pilot and demonstrate
approaches for integration of climate risk and resilience into development
policies and planning
 Cambodia: joint donor mission Oct. 2009, CC policy implementation expected
from June 2010. Identification of investments to follow
 Samoa: scoping mission in Dec. 2009 and joint donor mission in April 2010.

Forest Investment Program (FIP) supports REDD. Subject to decision on
March 17, Investment Strategies will be prepared in IN, PH, Lao.
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Examples of EAP Adaptation Activities
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The Economics of Adaptation (VN case study), social welfare
CC study in VN (GFDRR), vulnerability of the poor in VN
Urban sector:
i.
ii.
iii.
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Coastal city study – to be used as a model for scaling up
CRC and Local Resilience Action Plan implementation in
cities in VN, PH, TH and CN
CC focus in CDS in the PH
DRM: disaster management mitigation programs in ID, PH, VN
and linkages with Adaptation programs
Two SCCF operations in CN (agricultural adptation) and PH (CC
adaptation pilot and integration into economic and operational
planning)
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Bank Lending as a Platform for Climate Financing
Strenghtening development outcomes by integrating climate finance
The Climate Change Financing Landscape
Strategy and AAA
Financing
IDA’s leverage for
climate change
Climate
change
AAA work
IDA 15
IDA
performance
measurement
CAS
WB and
regional
CC
Strategy
Monitoring
CIF: PPCR, SREP, FIP
GEF
SFDCC
Rio markers
GFDRR
CF: CDCF, BioCF, FCPF
UNFCCC Climate Funds
Note: Elements in red indicate what is new under IDA 15
Source: IDA and Climate Change: Progress Report, octobre 2009.
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Complimentary Use of Financing Mechanisms to Accelerate Low-carbon Investment
…by reducing barriers, internalizing carbon, buying down cost.
(+)
Mitigation Project— with climate financing to:
Condition Markets, Transform Markets, Enhance Revenues
CF
GEF
C
a
s
h
F
l
o
w
Year
(-)
CTF
Source: Richard Hosier “GEF support to Climate Change” Climate Finance Workshop (July 2009)
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World Development Report 2010
A climate-smart world within reach if we…
Act now: to stay close to a 2° C warming target
Act together: for fairness and cost-efficiency,
starting with the high-income countries taking
aggressive action
Act differently: a transformation needed to reduce
emissions 50-80% in the next decades
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Thanks!
Additional info:
www.worldbank.org/eapenvironment
[email protected]
[email protected]
Where to find Displayed Publications
Climate Resilient Cities: A Primer on Reducing
Vulnerabilities to Disasters
www.worldbank.org/eapenvironment
Climate Change Impact and Adaptation Study for the
Bangkok Metropolitan Regions
www.worldbank.org/eapenvironment
East Asia Environment Monitor 2007: Adapting to Climate
Change
www.worldbank.org/eapenvironment
Convenient solutions to an inconvenient truth : ecosystembased approaches to climate change
www.worldbank.org/publications
Natural solutions : protected areas helping people cope with climate
change
http://www.iucn.org/knowledge/publications_doc/publications
/
Additional Slides on Related CC Financing
Mechanisms at the Bank
Climate Investment Funds (CIF)
A collaboration between donors, World Bank and regional development banks
to support a transformation towards low-carbon development
Partnership Forum
Clean Technology Fund (CTF)
Trust Fund Committee
Finance scaled-up demonstration,
deployment and transfer of
low carbon technologies with
significant potential for long-term
GHG savings
• Supports countries’ development
strategies and low-carbon
programs
• Leverages financial products of
International Financial Institutions
• Stimulates private sector
engagement
$5 billion (mostly concessional finance)
Strategic Climate Fund (SCF)
Trust Fund Committee
Targeted programs with dedicated funding
to pilot new approaches with potential for
scaling up
Pilot
Program for
Climate
Resilience
Forest
Investment
Program
Mainstream
climate
resilience into
core
development
planning
Reduce emissions
from
deforestation
and forest
degradation
(under design)
$1 billion
Scaling Up
Renewable
Energy in
Low Income
Countries
Transformational
change to use of
renewable energy
(under design)
Carbon Partnership Facility (CPF)
Participants and partners work together to develop programs to achieve
“larger scale and longer term” emission reductions
Participant
s and
partners
provide
funds
Carbon
Asset
Develop
ment
Fund
Grants to
Sellers to
prepare
carbon assets
Sell
ers
Host
Govern
ments
and
Donors
Buy
ers
Sellers
propose and
develop
Emission
Reductions
Programs
Buyers provide
funds and
received emission
reductions
Emission
Reductions
delivered to the
Carbon Fund
Carbon
Fund
CPF – Objectives and Projects in EAP
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Scaling up of carbon finance through efforts that:

integrate carbon into investment decisions early on
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work with client countries over a long period of time
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move to more programmatic and sector-wide approaches
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commit to long-term carbon purchases post-2012
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Support transition to a low-carbon economy
Examples in EAP
–
–
–
–
Vietnam: development small scale hydropower
Indonesia: scaling up of geothermal potential
China: support for IGCC pilot plants
China: energy from agricultural waste
Forest Carbon Partnership Facility (FCPF)
Participants Committee (10 recipients & 10 donors with same rights)
Primary decision making body, including all policy issues
Readiness Mechanism
Carbon Finance Mechanism
Readiness Fund: ~$150 mil.
Carbon Fund: ~$200 million
Funding for REDD Readiness
(capacity building) (2008 - ?):
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Reference Scenario
National REDD Strategy
National Monitoring System
REDD = Reduced emissions from
deforestation and degradation
Ad Hoc Technical Advisory Panels
of REDD
Payments for Emission
Reductions (not necessary
purchase) (2009 - ?):
recipient

countries
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Selection
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Performance-based
Verification, reporting
Registration
Buyer Participants Committee
Participants Assembly (recipients & donors)
Observers (Indigenous People, NGOs, IGOs, privat sector)
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Progress with the Forest Carbon Partnership Facility

Papua New Guinea (PNG), Indonesia, Vietnam, Lao PDR, Cambodia,
Thailand and Vanuatu Readiness Plan Idea Notes and have been
selected as FCPF Participants Countries.

Indonesia completed its Readiness Preparation Proposal (RPP) and is
accessing a FCPF US$3.6million Grant for implementation.
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Lao has obtained the first US$200,000 grant to prepare the RPP
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Vietnam is in the process of obtaining the first US$200,000 Grant
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Vanuatu has started discussion
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Papua NG decided to move ahead with REDD without Bank support
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Thailand has not yet expressed interest in preparing an R-PP and has
not yet signed its FCPF Participation Agreement.
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Cambodia receives support from UNREDD and has recently requested
Bank support.
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Pilot Program on Climate Resilience (PPCR)

First active program under the Strategic Climate Fund

Objective: Pilot approaches for integration of climate
risk into development policies and planning

Approximately $30m - $60m, 50% grants, 50% in
optional co-financing available to each of 9 pilot
countries and 2 regional groupings worldwide.

EAP Pilots: Cambodia; Pacific Islands (Samoa, Tonga,
PNG + small regional component)
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