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Energy

Where water and climate change meet

This week, the 2015 Paris Climate Conference, or COP21, will gather countries that want to take action for the climate. A central topic of these discussions will focus on the intersection of water and climate change.

Combating climate change is everyone’s business. Reducing emissions and investing in renewable energy, improving city planning and building design standards, developing more efficient transportation, and reducing deforestation (among others) all play key roles in mitigating the effects of climate change. At the same time, countries, and industries, will also need to adapt to changes in the climate as they unfold. Since climate change will significantly increase the variability of rainfall, different parts of the world will become more vulnerable to floods or droughts. 

“Water scarcity and variability pose significant risks to all economic activities, including food and energy production, manufacturing and infrastructure development,“ said Laura Tuck, World Bank Group Vice President for Sustainable Development during a recent press conference at COP21. “Poor water management can exacerbate the effects of climate change on economic growth, but if water is managed well it can go a long way to neutralizing the negative impacts.”

The War is Over. What Do We Do Now? Post-Conflict Recovery of the Private Sector in South Sudan

Steve Utterwulghe's picture


The White Nile in South Sudan. Photo by Steve Utterwulghe.

As I was landing in Juba, the bustling capital of South Sudan, I couldn’t help but reminisce about my days working in Khartoum for the UN Deputy Special Representative of the Secretary General. The war between the North and the South, of what was then, in 2004, still the Sudan, was raging as the peace negotiations were taking place in a plush resort on the shores of Lake Naivasha in Kenya. I was mainly focusing on guaranteeing access to the people of the Nuba Mountains, one of the three fiercely contested areas between Khartoum and the Sudan People’s Liberation Movement/Army (SPLM/SPLA). I was doing my fair share of shuttle diplomacy, going back and forth between the SPLM/SPLA leadership based in Nairobi and the Government of Sudan in Khartoum. At that time, hopes were high that one would soon see the end of decades of a bloody war in Africa’s largest country. The Comprehensive Peace Agreement was finally signed in 2005. In 2011, South Sudanese participated in a referendum and 99 percent voted for independence. South Sudan became the newest country in the world.
 
But what should have been a new era of peace and prosperity quickly turned into a feeling of dejà vu. Dreams were shattered as a new internal violent conflict broke out in December 2013, putting the progress achieved at significant risk and disrupting economic activities and livelihoods.
 
The country is very rich in natural resources, including oil, minerals and fertile arable land. However, with 90 percent of its population earning less than US$1 per day, South Sudan is ranked as one of the poorest countries on the planet. South Sudan remains an undeveloped economy facing important challenges, including high unemployment, weak institutions, illiteracy and political instability. The economic overview of the country by the World Bank suggests that “South Sudan is the most oil-dependent country in the world, with oil accounting for almost the totality of exports, and around 60 percent of its gross domestic product.” The conflict has dramatically affected the production of oil, which has fallen by about 20 percent and is now at about 165,000 barrels per day. This, combined with the sharp global drop in oil prices, has greatly affected the fiscal position of the government.

In such an environment, private sector development is a must, since it has the potential to create market-led jobs and growth. However, private sector growth requires a conducive investment climate and an enabling business environment.
 
South Sudan has made progress in this area, thanks in part to support from the international community, including the World Bank Group. Yet more needs to be done. South Sudan ranks 187th out of the 189 economies in the Doing Business ranking, just ahead of Libya and Eritrea. In addition, among the top constraints reported by firms in the World Bank Group's Enterprise Survey, 68 percent mention political instability and 58 percent cite access to electricity, followed closely by access to land and finance. 

Record investment in transport boosts overall private participation in infrastructure in 2014

Henry Kasper's picture

Imagine record commitments in transport that are 26% higher than the next best year since the inception of the Private Participation in Infrastructure (PPI) Database in 1990. That’s exactly what took place in 2014—massive private participation in transport that culminated in the fourth highest level of global investment (transport, energy, and water) ever recorded. Indeed, the PPI Database’s 2014 Global Update released in June, 2015, shows that total investment in transport hit a record high of US$36.5 billion, driven by a handful of outsized deals in
Latin America and, more specifically, Brazil—including a mega airport project totaling US$10 billion. Meanwhile, energy fell 19 percent year-over-year due to fewer commitments in five out of six regions, while water grew 14 percent, driven by key deals in Brazil, Mexico, and Peru. In a separate report, Telecom showed modest year-over-year declines, extending a trend of fewer projects and lower investment over the past five years.  

Is India’s growth oil-fueled?

Frederico Gil Sander's picture
Traffic jam in a street in Old Delhi
Traffic jam in a street in Old Delhi. Credit: Yann Doignon / World Bank

As an intrinsically-optimistic Brazilian, my new assignment following India’s economy suits me well: India is one of the few bright spots in a somber global economy and is set to become the fastest growing large economy in the world. Our recently-released India Development Update projects India’s GDP will grow by 7.5 percent in the fiscal year ending March 2016, and by 7.8 and 7.9 percent in the following two years. Not quite the double-digit growth the Government would like to see, and to be sure there are significant uncertainties about the outlook, but an enviable state of affairs nonetheless.

What is driving the favorable momentum?

The drastic decline in global crude oil prices since June 2014 clearly played an important role. As a net oil importer, the halving of oil prices has been a bonanza for India. External vulnerabilities were greatly reduced as the lower oil import bill shrank the current account deficit despite anemic exports. Lower oil prices also helped contain prices of global commodities, and along with the RBI’s prudent monetary policy led to a significant decline in inflation. This in turn boosted real incomes in urban areas and allowed RBI to lower policy rates by a cumulative 125 basis points in the first nine months of 2015.

Among wealthy nations, Nordic countries are leading the pack on sustainable development

Craig James Willy's picture
Source: Bertelsmann Stiftung

Sustainable development was once thought of as primarily a concern for the poorer, so-called “developing” countries. Today, with industrial civilization spreading across the entire world, devouring ever more resources and emitting more greenhouse gases into the atmosphere, economists believe wealthy countries too are in a sense still “developing” ones. Life on Earth will not survive in its current form if lifestyle of the northern countries remains as it is and extends across the planet.

That is the spirit behind the Bertelsmann Foundation’s latest report on wealthy country’s progress on fulfilling Sustainable Development Goals. Recent developments have often not been pretty. Many countries have stuck to energy-intensive economic models, and inequality has been rising almost everywhere, with economic elites getting an ever-larger part of the pie, while working and middle classes decline.

Let's come clean about dirty cooking

Anita Marangoly George's picture
Photo by Rodney Rascona / Global Alliance for Clean Cookstoves

Really – let’s.

It’s a fact: Indoor air pollution from cooking with solid fuels including wood, charcoal, coal, animal dung, and crop waste in open fires and traditional stoves is the fourth leading cause of death in the world, after heart and lung disease and respiratory infection.

Nearly 2.9 billion people, a majority of whom are women, still cook with dirty, smoke and soot-producing cookstoves and solid fuels. That’s more people using these dangerous appliances than the entire populations of India and China put together.

This has to change. And change is happening as I heard from the various discussions that took place in Accra, Ghana at the Clean Cooking Forum 2015 last week.  Hearing the Minister of Petroleum of Ghana and the Deputy Minister for Gender and Development, I realize that the ambition to provide clean cookstoves and cleaner fuels to the households who need it most is definitely there. But transforming ambition into reality is a challenge. This is true not just in Ghana but in many other parts of the world.    

I have been thinking a lot about this lately, especially as we come up on the climate change conference (COP21) in Paris, where world leaders will gather to reach a universal agreement on mitigating the effects of climate change. Adopting clean energy sources is key to reach that goal. To that end, the UN’s sustainable energy goal (SDG7) that aims to ensure access to affordable, reliable, sustainable and modern energy for all also aims for bringing clean cooking solutions to the 2.9 billion who do not have it today.

Lifting of Iran sanctions could have major impact on energy markets

John Baffes's picture
With a lifting of sanctions in 2016, Iran could play a key role in energy markets but boosting capacity will require foreign investment, according to the World Bank’s latest edition of Commodity Markets Outlook.
 

Boosting clean tech to power a low-carbon future

Zhihong Zhang's picture
 
A thermo-solar power plant in Morocco. Photo by Dana Smillie / World Bank.

Global warming can be limited by reducing or avoiding greenhouse gases stemming from human activities - particularly in the energy, industry, transport, and building sectorswhich together account for over 75% of global emissions. So low carbon technologies are key to achieving mitigation while creating new economic opportunities.
 
Since 2008, the $5.3 billion Clean Technology Fund (CTF) - one of the $8.1 billion Climate Investment Funds' (CIF) four funding windows—has been partnering with multilateral development banks (MDBs), including the World Bank and the IFC, to provide concessional financing to large-scale country-led projects and programs in renewable energy, energy efficiency and sustainable transport.
 
As the world gets ready for the climate negotiations in Paris later this month, the governing bodies of CTF met in Washington D.C. MDBs, donor countries, recipient countries and civil society organizations gathered to, among other things, share the results and lessons of how the CTF is reducing greenhouse gas emissions, creating energy savings, and improving the lives of some of the world’s poorest people by creating jobs and reducing pollution.
 
The CTF report card is based on the results from operational projects and programs over a one year period. In total, the CTF has achieved 20 mtCO2e in emission reductionsthat’s the equivalent to taking four and a half million cars off the road or shutting down six coal fired power plants.

A better way to build -- promoting sustainable infrastructure

Robert Montgomery's picture

As countries prepare to meet at the G20 summit in Turkey next week, global growth and infrastructure needs will be at the top of decision makers’ concerns. And rightly so: Infrastructure – roads, bridges, ports, power plants, water supply – drive economic growth in many countries by facilitating manufacturing, services and trade. But it’s not just a matter of building more. To achieve good development on a planet stressed by climate change and diminishing natural resources, infrastructure needs to be sustainable.

Energy access is a social justice issue

Jim Yong Kim's picture
Dignity-DTRT, a garment factory in Accra, Ghana, employs 1,500 workers, 75% of them low-income women. © Dominic Chavez/World Bank.
Dignity-DTRT, a garment factory in Accra, Ghana, employs 1,500 workers, 75% of them low-income women.
© Dominic Chavez/World Bank. More photos from Ghana.

ACCRA, Ghana — Energy rationing is popularly nicknamed “dum-sor,” or “on-off” in Ghana, an expression that people use to talk about the country’s frequent power outages. This is a challenge faced by countries across the region — sub-Saharan Africa loses 2.1% of gross domestic product from blackouts alone — and across the developing world.

While the lack of a consistent electricity supply is one of Ghana’s largest economic challenges, the truth is that the country has made progress in increasing access to energy. Today, about 75% of the country is connected to the national electricity grid. This is significantly higher than the regional average: only one in three people in sub-Saharan Africa has access to electricity.


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