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Climate Change

Transforming markets, one fan at a time: Punjab and the drive for more energy-efficient celling fans

Saima Zuberi's picture

Surrounded by hardened fan manufacturers in the city of Gujranwala, 70 kilometers north of Lahore, the task facing our World Bank Group team was to convince them that more efficient fans, to be promoted through an energy-efficiency labeling program by Pakistan’s government, would be beneficial to the sector as a whole. Questions abounded about how regulations can help competitiveness, and about whether small and lower-tier manufacturers might be left out of the equation. How would labeling be enforced, and how would forgeries be kept off the market?

Fast-forward 12 months to an IFC advisory project, which the government has set up for the procurement of 20,000 Pakistan Energy Label (PEL) energy-efficient fans in public buildings. Those fans will save the country an estimated  800,000 kilowatt hours – the  equivalent of the annual energy use of about 600 domestic refrigerators – translating to about 400 tons of greenhouse gas (GHG) emissions reduction per year.

The project has created a new market segment for manufacturers of more efficient fans, nine of whom have received certification for the PEL from the National Energy Efficiency and Conservation Authority (NEECA). The fact that four fan manufacturers out of these nine are from the small and medium-sized enterprise (SME) sector is a positive indication of wider acceptance of this standards and labeling initiative.



Photo by Etiennne Kechichian

In time for the region’s next hot season, the request for more information and knowledge about energy-efficient fans has increased. The government of Punjab, as well as NEECA, has launched a comprehensive marketing campaign to promote these PEL fans and to improve the public’s knowledge about their benefits. In a market where heavy, inefficient cast-iron fans are considered good quality, changing perceptions requires coordination with technicians, real estate developers, retailers in the streets of Lahore and the countryside, and a deep understanding of the market.

The concept of market transformation is at times abstract – but we’ve seen signs in this relatively small project, implemented by the Trade & Competitiveness (T&C) Global Practice of the World Bank Group, that targeted and client-based interventions can have a significant impact on the competitiveness of an industry.

In China, a South-South Exchange Helps Countries Yearning for Clean and Efficient Heating Learn from Each Other

Yabei zhang's picture

Places with cold climates need access to a reliable and efficient heat supply for the health of their population. But in developing countries, the majority of rural and peri-urban households do not have access to centralized heating or gas networks. Instead, they use traditional heating stoves that use solid fuels like coal, wood, and dung for heating. These stoves are often inefficient (with thermal efficiency as low as 25%-40% compared to 70% or above for efficient stoves) and emit large amounts of pollutants (e.g., CO and PM2.5), causing indoor and outdoor air pollution with negative health and environmental impacts.
 

Water and War: The turbulent dynamics between water and fragility, conflict, and violence

Claudia W. Sadoff's picture
View the full infographic here

For the past two years, the rains have been poor in Somalia. What comes next is tragically familiar. Dry wells. Dying livestock. Failed harvests. Migration.  Masses of people in dire need of humanitarian assistance. The same is happening in Yemen, Sudan, Kenya, Ethiopia, and Nigeria. However, poor rains are not the only water problem that creates havoc. Floods, water-borne diseases, and transboundary water conflicts can all cause severe human suffering and disruptions to political, economic, and environmental systems.

Start-up from scratch? How entrepreneurship can generate sustainable development and inclusion in the Sahel

Alexandre Laure's picture

Also available in: Français

In a first for Africa’s Sahel region, entrepreneurs from Senegal to Chad assembled in Niamey, Niger, for the SahelInnov Expo last month to showcase their businesses and exchange ideas. From livestock to drones, all sectors were on display as a new generation of entrepreneurs and start-ups emerges with bold and innovative ways to address the challenges facing their countries and communities. Increasingly recognized as a strategic path to economic growth, supporting SMEs and entrepreneurs has a key impact on development and is generating more interest from governments in the Sahel. 



Michaëlle Jean, the Secretary General of the International Organisation of La Francophonie, His Excellency Mahamadou Issoufou, the President the Republic of Niger, and Almoktar Allahoury, the CEO of CIPMEN.
Photo Credit: CIPMEN


Hosting the event was Niger SMEs Incubator Center (CIPMEN) whose CEO, Almoktar Allahoury, lauded the initiative. “This is the first time all stakeholders have come together: entrepreneurs, public officials, investors, academia and development partners in one place to discuss the many opportunities and remaining obstacles for the private sector — this is just what we need to take the region to the next level.”

Indeed, entrepreneurship could be especially important for this extremely poor region, with half the population living below the poverty line. Burkina Faso and Niger, for example, are among the fastest-growing economies in the world, yet their GDP per capita are just $395 and $652 respectively, compared to the Sub-Saharan African average of $1,647. A vibrant and active entrepreneurial ecosystem would therefore not only boost economic diversification and improve productivity, it also could prove the vital lever to tackling two of the Sahel’s biggest challenges: youth unemployment and climate change.

The devastating combination of climate change, mass migration, trafficking and the rise of violent extremism has resulted in recurring humanitarian crises and massive food insecurity, affecting more than 20 million people across the Sahel in 2015. Enduringly high birth rates, furthermore, will require millions of jobs to be created to respond to the needs of a rapidly growing and increasingly young population. Institutional reach remains weak and a state of protracted insecurity has taken root over vast swathes of territory.

Sovereign wealth funds: the catalyst for climate finance?

Juergen Braunstein's picture



Following the Paris deal on international climate change, governments are beginning to explore new financing mechanisms for investing in the growing low carbon economy. Over the next decade sovereign wealth funds (SWFs) could become an important game changer in green investing. Recognizing the untapped potential of SWFs, two key questions emerge: how can SWFs increase their exposure to green asset classes? And what are the constraints?
 
Investors and financial institutions are becoming increasingly aware of the risks associated with fossil fuel projects and are showing growing interest in green bonds and other financing tools that facilitate investment in low-carbon energy solutions.
 
Being patient investors, with longer term investment horizons than many others in the financial services sector, SWFs could become catalysts for implementing the December 2015 Paris Climate Agreement. In the November 2016 annual meeting of the International Forum of Sovereign Wealth Funds in Auckland, participants highlighted that SWFs are particularly well-positioned to become trailblazers in green investment. The majority of members are oil-based SWFs which are looking to economic diversification of their finite carbon wealth into industries and sectors that would yield broader societal, economic and financial benefits.

An early education in development

Ellysar Baroudy's picture
This World Bank staff member, from a traditional Maasai pastoralist family in Southern Kenya, is helping to ensure that indigenous people have a seat at the table when it comes to forest conservation and climate change.

The story begins a world away from Washington. Nicholas Meitiaki Soikan — or Soikan as he’s known to most — was the sixth of seven children in what is considered a small Maasai family from Kajiado county in Kenya.
As a young boy, his mornings were spent herding livestock, mostly cattle that he had names for and considered his pets. He and his siblings went to primary school in shifts, so that meant Soikan’s turn to study was in the afternoon, often under a large acacia tree.

Energy storage can open doors to clean energy solutions in emerging markets

Alzbeta Klein's picture

Also available in: French

Energy storage is a crucial tool for enabling the effective integration of renewable energy and unlocking the benefits of the local generation of clean resilient energy supply. Photo credits: IFC


For over a hundred years, electrical grids have been built with the assumption that electricity has to be generated, transmitted, distributed, and used in real time because energy storage was not economically feasible.
This is now beginning to change.

The first line of defense against outbreaks is to finance pandemic preparedness at a national level

Peter Sands's picture
A portrait of an Ebola survivor, Dr. Gassama Ibrahima at the Matam Medical Center in
Conakry, Guinea on March 16, 2015. Photo © Dominic Chavez/World Bank

The case for investing in pandemic preparedness is –or at least, should be -  completely compelling. Few things could kill as many people as an influenza pandemic. Few threats can cause as much economic disruption as the contagion of fear triggered by a rapidly escalating epidemic. Reinforcing capabilities such as disease surveillance, diagnostic laboratories and infection control would be more effective and cost far less than spending money to contain outbreaks when they occur. Yet, so far, the global community has demonstrably not invested enough in preparedness. As a result, too many lives have been lost and too many livelihoods damaged, and the world remains scarily vulnerable.  

Five Film4Climate films to inspire you in 2017

Lucia Grenna's picture



It’s just one month into 2017, and for many,  that means they have just launched their New Year’s resolutions. The gym is still crowded, your refrigerator is still full of healthy food, but that initial motivation may not be as high as it was on, say, January 2. So, it’s time to find new sources of motivation and even inspiration for keeping that New Year’s resolution. One place to find that inspiration is the Film4Climate competition. If you’re trying to find a reason to persevere through whatever new challenges you are finding, look no further than the winners of this competition. All these films put things in a unique perspective.

The five winners in the short film category really can be your springboard for an inspiring 2017.

Envisioning the global financial system in a decade

Gloria M. Grandolini's picture


4 unprecedented disruptions to the global financial system


Climate change, migration, correspondent banking and cybercrime are putting unprecedented and unforeseen pressures on global financial markets.

They aren’t just disrupting the global financial system, but also affect how we approach international development work.

Let’s examine each trend:
  1. “Greening the financial sector” is the new buzz term to finance a transition toward a climate-resilient economy and to help combat climate change. This topic is now getting a lot of attention from the G20 to the Financial Stability Board. The international community is trying to understand what this transition will imply: how resilient the financial sector is to deal with risks stemming from climate change, and how efficiently the financial sector can allocate financial resources. What we know is that currently fossil fuel subsidies and a lack of carbon tax are hindering the market from shifting financial resources from brown to green.
  2. Globally, an estimated 65 million people are forcibly displaced. Migration, resettlement or displacement, of course, impact where and how to channel aid to those in need. But more importantly, as displaced people settle down -- no matter how temporary or long-term -- to become self-sufficient and thrive, they will need to establish new financial relations. This can be for simple transactions such as receiving aid through payment cards (as opposed to cash) or for sending remittances. Or it can be for something more complex as getting a loan to start a business.
  3. At the same time, as the global banking industry is tightening regulations, large banks are withdrawing from correspondent banking and shutting down commercially unsustainable business lines. This recent phenomenon can have a huge impact in some regions on SMEs and on money transfer operators, which largely handle remittances.
  4. Cybercrime is no longer a sci-fi thriller plot, but a tangible potential risk to both national and international financial markets. The focus on cybersecurity risk has increased along with the proliferation of internet and information technology. Fintech is transforming the financial industry -- by extending access to financial services to people and small- and medium-sized enterprises (SMEs) previously left out of the formal financial system – but is also raising many questions, including concerns about cybersecurity. The same technology advancements that are propelling fintech are also addressing cybersecurity risk. However, there is a need to develop an appropriate regulatory framework in combination with industry best practices. This framework is evolving and regulators are grappling with how and when to regulate.

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