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Climate Change

Transboundary Water Cooperation Helps Build Climate Resilience

Jacqueline Tront's picture
The World Bank at World Water Week 2015

Water does not respect geopolitical boundaries. Hydrological systems are completely oblivious of international relations. This makes life complicated for the water managers, financiers, diplomats, and most of all – the water users around the world’s approximately 276 transboundary river basins, 63 of which are in Africa. Sixty percent of the world’s freshwater flows are in transboundary rivers, and 40% of the world’s population lives in their river basins. When water cuts across borders, it poses economic, financial, logistical and political challenges for people trying to manage and develop the resource.​

Climate change is
The Zambezi River Basin in Africa is shared
by eight countries: Angola, Botswana, Malawi,
Mozambique, Namibia, Tanzania, Zambia,
and Zimbabwe.
Photo Credit: CIWA / World Bank
increasing uncertainty about where and​ when water will​ be available. It is affecting billions of people living in transboundary basins, and as​ often happens, the poor are the hardest hit.​ There is a long list of potential problems people will face – supply in water-stressed regions will diminish; some regions are likely to have more water than they can handle; most challenging is the fact that​ the timing and amounts of future water availability are impossible to predict with certainty. Other risks - the increasing intensity of droughts, floods, typhoons, and monsoons; uncertainties around waterborne disease; glacier melt and decreased storage in snow-pack; glacial-lake outburst floods; sea-level rise and salt-water intrusion - all pose the highest risk to poor communities that are least able to cope.

How can we ensure that we build water and climate resilient cities?

Diego Juan Rodriguez's picture

The World Bank at World Water Week 2015

As population and economic growth bump up against finite—and increasingly degraded—water resources, competition between agricultural, industrial, and municipal water uses increases, putting stress on existing water sources. This stress is felt most acutely in urban areas, particularly among the urban poor.
 
Moreover, urban water management systems are inefficient, leading to an uneven quantity and availability of water and related services. In addition, urban water management must consider the effects of climate change, including rising temperatures, changes in precipitation patterns, and climate variability, on water resource availability.

Addressing these challenges requires building resilience not only in cities’ physical infrastructures but also in their social architecture, governance structures, financial systems, and ecosystems. A resilient city can adapt to changing conditions and withstand shocks while still providing essential services.

Water: At a Tipping Point

Junaid Kamal Ahmad's picture

The World Bank at World Water Week 2015

The Stockholm World Water Week’s focus on “Water for Development” comes at an opportune time. Water as a sector in world affairs is reaching a tipping point. Over the next two decades and more, the global push for food and energy security and for sustaining urbanization will place new and increasing demands on the water sector. 

Ours is a world of ‘thirsty agriculture’ and ‘thirsty energy’ competing with the needs of ‘thirsty cities.’ At the same time, climate change may potentially worsen the situation by increasing water stress as well as extreme events, reminding us that the water and climate nexus can no longer be a side event at global climate talks. All of this is happening in a context where the important agenda of access to services – despite the impressive gains over the past several decades – remains an unfinished agenda, requiring an urgent push if we are to fulfill the promise of universal access.

Using climate smart agriculture to build farmers’ resilience in Senegal

Aifa Fatimata Niane Ndoye's picture
Mamadou Faye is a sorghum farmer in Pointe-Sarene, Senegal. Thanks to the West African Productivity Program, he was able to grow healthy stalks of sorghum despite erratic rainfall.
World Bank / Daniella Van Leggelo-Padilla

Emissions trading in China: Early lessons from low-carbon pilots

Lasse Ringius's picture

 

A local emissions exchange in China. Lasse Ringius/IFC
A local emissions exchange in China. Photo: Lasse Ringius/IFC

 

China, the biggest source of CO2 emissions globally, accounts for more than 27 percent of the world's emissions. China is the first developing country to control CO2 emissions through a cap-and-trade system. Once a national carbon market is established, which could be as early as 2017, China will overtake the European Union (EU) to become the biggest carbon market in the world. The Chinese market will significantly alter the balance of power in global carbon markets in the mid-term. Significant challenges remain, and the IFC, a member of the World Bank Group, is helping China to overcome them with a project in Shenzhen that addresses key barriers to carbon trading.

Fundamentals of Emissions Markets

Once a liquid carbon market has been created, trading will mostly happen via forward and futures contracts. These instruments help companies to protect themselves against volatile prices and to hedge their carbon position. In the EU, exchange platforms emerged as one of the main mechanisms aimed at simplifying transactions, reducing risk and facilitating transparent pricing. As trading platforms, exchanges can facilitate price discovery and offer hedging products.

The financial sector and financial institutions (FI) play a fundamentally important role in an emissions trading system. It is to be expected that most companies in China will trade with the help of intermediaries; only large emitters will trade directly at an exchange. Thus, FIs will be in a position to offer trading-related services, as well as advisory products, to clients subject to mandatory CO2 regulation.

Clean energy, not coal, is the solution to poverty

Rachel Kyte's picture

 Dana Smillie / World Bank

It is the development conundrum of our era. Extremely poor people cannot lift themselves out of poverty without access to reliable energy. More than a billion people live without power today, denying them opportunities as wide-ranging as running a business, providing light for their children to study, or even cooking meals with ease.

Ending poverty requires confronting climate change, which affects every nation and every person. The populations least able to adapt – those that are the most poor and vulnerable – will be hardest hit, rolling back decades of development work.

How do we achieve the dual goals of expanding energy production for those without power and drastically reducing emissions from sources such as coal that produce carbon dioxide, the primary contributor to climate change?

There is no single answer and we cannot ask poor communities to forego access to energy because the developed world has already put so much carbon pollution in the air.

An array of policies and programs backed with new technology and new thinking can — if combined with political will and financial support — help poor populations get the energy they need while accelerating a worldwide transition to zero net carbon emissions.

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week
 

Transforming our World: The 2030 Agenda for Sustainable Development, Finalised text for adoption
United Nations
This Agenda is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom. We recognise that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development.  All countries and all stakeholders, acting in collaborative partnership, will implement this plan. We are resolved to free the human race from the tyranny of poverty and want and to heal and secure our planet. We are determined to take the bold and transformative steps which are urgently needed to shift the world onto a sustainable and resilient path. As we embark on this collective journey, we pledge that no one will be left behind.  The 17 Sustainable Development Goals and 169 targets which we are announcing today demonstrate the scale and ambition of this new universal Agenda. They seek to build on the Millennium Development Goals and complete what these did not achieve.

There Are Still Tons of People Around the World Who Haven't Heard About Climate Change
Vice
Whether a person is aware of climate change or not — and how much they worry about it — depends on a range of factors, including what country someone lives in and how developed it is, their education level, and even what the local air quality is like, according to a report published in the journal Nature Climate Change.  In fact, when researchers analyzed data from over 100 countries collected by Gallup in 2007 and 2008, they found two big trends. The report could help to explain why, as extreme weather events displace tens of millions of people each year and diplomats prepare to meet in Paris for a historic climate change conference, public attention remains low in many countries, even ones most impacted by climate change.
 

For success and sustainability, seek broad social ‘well-being’; Good governance promotes a ‘virtuous cycle’ of growth

Christopher Colford's picture

Beyond the cold calculus of GDP and TFP and FDI, development is about promoting strong societies as well as propelling powerful economies. But how can we measure societies’ progress toward success? Some may try to calculate “Gross National Happiness” as a yardstick, and some may envision “getting to Denmark” as the ideal end-of-history destiny of development – but are there patterns that reveal how societies can flourish?

Two recent Washington seminars suggest that – by pursuing innovation and inclusion, and by focusing on broad-scale social “well-being” – policymakers can define realistic paths toward development success.

The methodologies used by Harvard economist Philippe Aghion at an International Monetary Fund forum and by former World Bank strategist Enrique Rueda-Sabater at a Center for Global Development discussion may have been different, but their conclusions were in harmony: Societies thrive – in a sustainable way – when inclusion and innovation help expand the circle of opportunity, and when strong governance standards lead to sound civic decision-making.

Taken together, the two seminars’ insights should help inform policymakers’ debate about the Sustainable Development Goals, which are due to be approved in September at the opening of the United Nations General Assembly.

Aghion, at an IMF seminar (sponsored by its Low-Income Countries Strategy Unit) on June 30, approached the topic of “Making Growth Inclusive” by imagining “how to enhance productivity growth while promoting social mobility.” Presenting data from a recent paper on “Innovation and Top-Income Inequality,” which he recently co-authored with an all-star team of economists, Aghion outlined the way that income and wealth inequality have drastically soared in developed countries since the mid-1970s – analyzing trends that by now are sadly familiar to the squeezed middle class, as calculated in the esteemed work of Thomas Piketty, “Capital in the Twenty-First Century.”

Building on that data, Aghion took the inequality-and-inclusion logic several steps further. He lamented the way that “skill-biased technological change” has (in the absence of policy safeguards) provoked societies to stratify along the lines of wealth, income, education and connections. Yet “creative destruction” is inevitable in “a Schumpeterian world,” reasoned Aghion: A significant factor expanding the wealth gap is the same process of continuous economic renewal that helps economies advance. “There is a big [economic] premium to being a superstar innovator,” he asserted, noting that “you can become rich by innovating” – and thus “innovation is a big part of top-1-percent income inequality.”



Philippe Aghion

“Creative destruction is good for social mobility” and broader inclusion, in the long run, because it causes a steady procession of “new innovators to replace old incumbents.” The effect of each wave of innovation is fleeting, especially in a hyperspeed economy: “You get temporary ‘rents’ when you innovate. You don’t get them forever,” because the relentless Schumpeterian process will eventually cause yesterday’s innovators to become, in turn, tomorrow’s has-beens.

The darker danger of entrenched inequality occurs, said Aghion, when incumbent interests use their political power to lobby for the protection of their advantages – whether by pleading for tax-code favors, seeking government-imposed barriers to the entry of new competitors, or purchasing influence with pliant politicians through campaign donations. (In an aside on U.S. politics, Aghion pointed to his paper’s data linking a state’s representation on the congressional Appropriations Committees with its amount of federal favors – a shrewd quantification of the pork-barrel compulsions of Capitol Hill.)

Because innovation promotes social mobility and thus greater inclusiveness, Aghion contended that “innovation is a good guy; lobbying is a bad guy.” So “if you’re for inclusive growth, then you will be against lobbying and [the creation of] entry barriers.”

Focusing simply on present-day inequality is less informative than focusing on social mobility, he asserted. There’s nothing wrong with an economy that bestows ample financial rewards upon genuine innovators who create new products and processes. There is, however, something deeply wrong – and economically growth-inhibiting – with governments that allow no-longer-innovative incumbents to use their political connections to suppress potential competitors.

The IMF panel’s respondents amplified Aghion’s analysis. World Bank economist Daniel Lederman noted that it would be wise to use “the lexicon of ‘inequality of opportunity’,” because some degree of wealth inequality is inevitable (and perhaps even desirable) when individuals’ talent and effort are rewarded with rising incomes. IMF economist Benedict Clements – deploring the “great degree of disparity in ‘equality of opportunity’ ” that now prevails in advanced economies, including the United States – noted that there need be “no conflict between equity and efficiency if you design your policies right.”

Getting policies right – by upholding strong standards of governance – was also one of the underlying themes at a July 21 seminar at the Center for Global Development led by Rueda-Sabater, who is now a senior advisor to the Boston Consulting Group and a visiting fellow among CGD’s strong lineup of scholars. Rueda-Sabater is well remembered at the World Bank for leading a research team’s detailed “scenario planninganalyses that, in 2009, discerned the contours of three possible scenarios for the world in the year 2020.

Presenting a recent BCG report, “Why Well-Being Should Drive Growth Strategies,” Rueda-Sabater outlined an imaginative BCG diagnostic tool: the “Sustainable Economic Development Assessment” (SEDA), which measures the relative well-being of 149 countries by gauging their success in converting wealth into well-being – that is to say, in effectively translating their potential into tangible progress.


 

Kicking green on the green for more than just the green

Leszek J. Sibilski's picture

Sport, and in particular football, can be used to promote health and development in many countries. However, large-scale sporting events like the football World Cup can have a detrimental effect on the environment and sustainable development.  Can FIFA and other governing bodies use their immense influence and budgets to establish environmentally friendly practices?

young kids play football in ZimbabweSport is a powerful symbol which eliminates barriers and provides opportunities for rapprochement. It does not have the power to stop tanks, but is capable of bringing people together and can be an excellent platform to open up dialogue, unite people and build trust. Sport is a bond to make a positive change in the world.” - Wilfried Lemke, UN Special Adviser on Sport for Development and Peace
 
An ever-increasing number of leaders in sports as well as politics, business, education and even religion are starting to pay closer attention to how sports can be a tool to benefit humanity. UN Secretary General Ban Ki Moon emphasized the commitment of the UN System to promote sport as a tool for development – including using it to achieve the United Nations Millennium Development Goals.
 
The game of football is a sport embedded in the lives of many people, communities, and economies. Often called “The Beautiful Game,” it is accessible to all. An estimated 265 million male and female players in addition to five million referees and officials make a grand total of 270 million people - or four percent of the world's population - that are actively involved in the game of football. 
 
Football supports development in various ways as it generates income from sports-related sales and services that boost international trade. It also creates jobs, supports local economic development, enhances a country’s reputation, transcends national differences, improves health and social well-being, encourages teamwork, and most importantly it serves as a global communicator while speaking a world language for the sake of social good.
 

Going, going, gone – timeline of an innovative auction that aims to reduce methane emissions

Scott Cantor's picture
Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)








Private investors bought price guarantees for 8.7 million tons of methane emission reduction in an innovative auction, attracting bidders from across the globe.
 
The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) provides support to businesses that invest in climate friendly projects.  The first pilot auction was held online on July 15, 2015, auctioning off price guarantees, or put options, targeting methane reducing projects. 
 
By providing a floor price for captured methane, the PAF offers private investors a financial incentive to fund carbon capture. Using an auction maximizes the impact of public funds dedicated to slowing climate change.
 
Here’s my journal entry from the day – July 15 – auction day (at last!)

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