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Climate Change

Getting a global initiative off the ground: What can transport learn from energy?

Nancy Vandycke's picture

In May last year, key stakeholders joined the World Bank Group in calling for global and more concerted action to address the climate impact of transport while ensuring mobility for everyone. More recently, the Secretary-General’s High-Level Advisory Group on Sustainable Transport noted, in its final recommendations to Ban Ki-Moon, emphasized the need for “coalitions or partnership networks” to “strengthen coherence” for scaling up sustainable transport, as well as establishing monitoring and evaluation frameworks. These issues have been raised at Habitat III, COP22 and at the Global Sustainable Transport Conference in Ashgabat.
 
As the global community readies itself to move from commitments to implementation, what can transport learn from similar initiatives in other sectors, such as Sustainable Energy for All (SE4All)?

Assessing disaster risk in Europe and Central Asia – what did we learn?

Alanna Simpson's picture
Heavy rains on June 13-14, 2015 caused a 1 million cubic-meter landslide to flow down the Vere River valley and damage the capital city of Tbilisi, Georgia. (Photo via Wikimedia Commons)
Across the Europe and Central Asia region today, policymakers are confronted daily with a wide range of development challenges and decisions, but the potential impacts of adverse natural events and climate change – such as earthquakes or flooding – may not always be first and foremost in their thoughts.

Admittedly, the region does not face the same daunting disaster risks as some other parts of the world – especially in South Asia, East Asia and Latin America – but nevertheless, it is far from immune to the effects of natural hazards – as the past clearly reminds us.

Upgrading Apia’s main road, a path to climate-proofing Samoa’s future

Kara Mouyis's picture
Vaitele Street, Samoa
Vaitele Street is considered the most important section of road in Samoa and in 2016, through the Enhanced Road Access Project, it received a critical upgrade and extension.


Driving from the airport into the city of Apia, the capital of Samoa, is a great introduction to the country. Villages line the road with gardens filled with colorful flowers and palm trees. Hugging the northwest coastline, the road sometimes comes as close as five meters from the shoreline, giving passengers truly spectacular views of the Pacific Ocean.

While it’s a scenic introduction to Samoa, this drive is also a stark reminder of just how sensitive the country’s coastline is to erosion and damage. More than 50% of West Coast Road, Apia’s main roadway, sits less than three meters (9.8 feet) above sea level and just a few meters from the shoreline, making it highly vulnerable to damage and deterioration. When tropical cyclones, heavy rain, king tides and storm surges hit these coastal roads, they can lead to erosion, flooding and landslips, causing road closures and threatening the safety of the people who use them.

Will Sovereign Wealth Funds Go Green?

Håvard Halland's picture



Sovereign Wealth Funds (SWFs) currently have a very limited role in climate finance and green investment – reportedly, below the average for institutional investors. According to the Asset Owners Disclosure Project (AODP), which evaluates institutional investors on the basis of their low-carbon performance, five of the 10 lowest-rated large investment funds were SWFs.

However, the more progressive SWFs are currently divesting from assets with large climate-related risks, and some countries are pondering whether their SWF should take a more pro-active role in green finance. What lies ahead for SWFs in this rapidly changing landscape?
 
SWFs could have an impact on climate finance
 
The sheer amount of capital managed by SWFs means that their impact on green finance, while marginal historically, has the potential to become significant. According to the Sovereign Wealth Fund Institute (SWFI), SWFs hold assets worth approximately $7.4 trillion, and the total capital of SWFs has more than tripled over the last decade.
 
But SWFs’ mandate does not typically include green finance. To the extent that they have been active in this area, it has been to reduce climate-related risk to their portfolios – including exposure to fossil fuels. For example, last October the $22.6 billion New Zealand Superannuation Fund (NZSF) announced a strategy to address climate-change risks that represent a “material” issue for long-term investors, and to “intensify its efforts” in areas including alternative energy, energy efficiency and “transformational” infrastructure. Norway’s giant Government Pension Fund Global ($873 billion) has adopted similar policies to reduce climate-related risk.

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.

Making climate finance work in agriculture

Alberto Millan's picture

Farmers, like these women in Nepal, are eager to help the agriculture sector become part of the solution to climate change. / Photo: Neil Palmer/CIAT
 

It’s widely recognized that agriculture can be part of the solution to climate change. The worldwide agriculture sector currently accounts for between 19 percent and 29 percent of total greenhouse gas (GHG) emissions. A combination of policies, investments and targeted action is critical to achieve a low-carbon and climate-resilient agriculture sector.
 
But the question arises: Where will the money to fund this transition come from? Can farmers alone finance the productivity and climate change adaptation and mitigation changes that are needed?
 
The vast majority of climate finance has traditionally flowed to other sectors, accentuating even more the shortfall in finance for agriculture.
 
Due to perceptions of low profitability, along with high actual and perceived risks, lenders often severely limit the flows of finance directed to smallholder farmers and small and medium-sized enterprises (SMEs) in agriculture. Without access to capital, farmers cannot invest in raising their productivity and incomes, becoming more resilient to climate change and mitigating their farms’ negative impact on climate.
 
But untapped sources of capital exist for making agriculture more climate-smart — namely, in climate finance. A recent World Bank discussion paper, Making Climate Finance Work in Agriculture, explores ways to use climate finance to dramatically increase the flows of capital directed to smallholder farmers and agricultural SMEs, aiming to deliver positive climate outcomes.

Protecting our water sources brings a wealth of benefits

Andrea Erickson's picture
The journey of our water from source to tap is long, and not one we think much about. For most of us, our water starts high in the mountains, hundreds of miles away. From there, water flows across natural and working lands until a portion is channeled to water pipes that move water to our faucets, to farms, and to various types of businesses.

Transforming Transportation: Toward Sustainable Mobility for All

Jose Luis Irigoyen's picture


To learn more about the future of sustainable mobility, don't miss Transforming Transportation 2017 on January 12-13. Click here to watch the event live and submit your questions to our experts.

 
From taxi apps to car sharing, from buses to the metro, from bike sharing to walking, not to mention personal cars, there are more transportation choices than ever before for that staple of modern life: the daily commute. The same goes for the transport of goods, which can get from A to B by road, air, rail, waterways and soon drones. There are currently more than 12,600 km (nearly 8000 miles) of metro or urban rail and 5,400 km (3,300 miles) of bus rapid transit (BRT), collectively providing 154 million trips a day in 250 cities. Increased access to transport and enhanced connectivity decreases travel time and generates higher rates of direct employment, keys to elevating overall economic opportunity. 

That’s the good news. The bad news is that the increase in mobility options comes at a high price. The challenges associated with growing traffic, especially in cities, are significant and threaten to become insurmountable. And despite the wide range of ways to get around, there have never been so many people who lack access to transportation or the means to use transportation.

Follow the moving carbon: A strategy to mitigate emissions from transport

Shomik Mehndiratta's picture


To learn more about the future of sustainable mobility, don't miss Transforming Transportation 2017 on January 12-13. Click here to watch the event live and submit your questions to our experts.

 
Transport currently accounts for 23% of energy-related carbon emissions--equivalent to 7.3 gigatons of CO2 globally in 2013—and, unfortunately, ranks among the fastest growing sources of such emissions.

If we’re serious about bucking the trend and reducing the environmental footprint of the sector, we first need to understand where transport emissions come from, and how they will evolve. If you take out the 1 GT of CO2 emissions released by the aviation and maritime industry for international transport, about 6 GT of transport emissions are classified as “domestically generated.” Today, the share of domestically generated emissions is split pretty much evenly between developed and developing countries: high-income OECD countries account for about 3 GT, while non-OECD countries are responsible for another 3 GT.

However, under a business-as-usual scenario, this breakdown is expected to change dramatically. Without bold action to make transport greener, emissions from emerging markets are poised to grow threefold by 2050, and would then make some 75% of the global total. Domestically generated emissions from OECD countries, in comparison, should rise by a more modest 17%.

The share of each mode in overall transport emissions also differs depending on which part of the world you’re looking at: while 2/3 of emissions in OECD countries are from cars, freight and particularly trucking is currently more important in the context of emerging markets.  Trucks actually generate over 40% of transport emissions in China, India Latin America and Africa.

A year of building sustainable communities in 12 stories

Andy Shuai Liu's picture
What are some of the key issues that will shape global development in 2017?

​From addressing the forced displacement crisis to helping indigenous communities, and from implementing the “New Urban Agenda” to enhancing resilience to disasters and climate change, one thing is clear: we must step up efforts to build and grow economies and communities that are inclusive, resilient, and sustainable for all—especially for the poor and vulnerable.
 
In the timeline below, revisit some of the stories on sustainable development that resonated the most with you last year, and leave a comment to let us know what you wish to see more of in our “Sustainable Communities” blog series in 2017.

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