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November 2012

Forging a new path forward on climate change

Vipul Bhagat's picture

As world leaders convene in Doha for this year’s UN Climate Change Conference  developing countries are looking for ways to maintain momentum for change to help them transition to climate-smart growth.

When it comes to delivering improved, cost-effective infrastructure and services – a precondition for green growth – public-private partnerships (PPPs) are one way forward. At a recent event co-sponsored with the United Nations Development Programme (UNDP) in Doha, we shared our unique perspective on public sector efforts to attract and leverage private sector climate finance through PPPs.

Some key takeways from the event include:

  • PPPs help tap new money for infrastructure:  Since the 2008 financial crisis, governments have limited financial resources to devote to capital expenditures and expanded public services. Involving the private sector offers a solution.
  • PPPs boost efficiency through cost savings and shorten delivery periods. They also spur innovation by bringing in private sector know-how.
  • PPPs facilitate projects under one umbrella: When it comes to climate initiatives, PPPs can efficiently organize and consolidate the numerous and complex arrangements that make a renewable energy (or any other climate-related) project work.
  • PPPs allow for appropriate allocation of supply and risk demand to the private sector, reducing taxpayer costs.
  • Since 1989, IFC has been the only multilateral institution providing advice to national and municipal governments on designing and implementing PPP transactions to improve infrastructure and access to basic services such as water, power, agribusiness, transport, health and education.

A Wake Up Call

Rachel Kyte's picture

Photo courtesy IISD

This week, negotiators from nearly 200 countries have gathered at the UN Climate Conference in Doha to try to hammer out an agreement on a second commitment period of the Kyoto Protocol.

Once again, the gathering of the parties to the Framework Convention on Climate Change highlights the lack of action on climate change, and the subsequent threat to the prosperity of millions. Climate change may roll back decades of development.

Several reports in the last month have reached the same conclusion. First, the science is unequivocal: humans are the cause of global warming, and major changes can be observed today. Second, time for action is running out – if we don’t act, we could experience a 4°C warmer world this century, with catastrophic consequences.

The World Bank commissioned the Potsdam Institute for Climate Impact Research and Climate Analytics to better understand the potential impact of a 4°C warmer world on developing countries. Turn Down the Heat provides a stark picture of the state of the planet in a 4°C warmer world and the disruptive impacts on agriculture, water resources, ecosystems and human health. It also gives a snapshot of changes already observed. 

Global mean temperatures are about 0.8°C above pre-industrial levels. Current greenhouse gas emission pledges place the world on a trajectory for warming of well over 3°C, even if the pledges are fully met. 

A tribute to John Hoffman, an unsung champion of the global environment

Alan Miller's picture

The accomplishments of mid-level bureaucrats, particularly in this time of anti-government sentiment, are rarely celebrated. It was therefore striking to see major newspapers devote significant space to obituaries for John Hoffman, a long-time friend and former colleague who did as much as any one individual I know to design and implement measures to protect the global environment.

I first met John as a young lawyer in the late 1970s, while working on the then new issue of ozone depletion – he for US EPA, me for an environmental advocacy group. We quickly became close confidants working to leverage a unilateral US phase-out of CFCs to achieve an effective international agreement, the Montreal Protocol (recently celebrated at events hosted by the World Bank).

Before almost anyone, he saw the linkages between ozone depletion and climate change, and used his office to produce the first major government report on climate policy – “Can We Delay a Greenhouse Warming?” – in 1983. He was equally adept at highly technical matters such as the creation of a single metric for comparing the impact of ozone depleting substances and policy issues such as the design of environmental regulations. 

Climate for change in Istanbul

Joumana Asso's picture

A view of the Blue Mosque in Istanbul, Turkey. - Photo: Shutterstock 

As the Climate Investment Funds (CIF) and its stakeholders from the private sector, government,  the multilateral development banks, civil society and indigenous peoples’ groups gathered in Istanbul to participate in the first CIF Private Sector Forum, their attention is increasingly focused on synergies between the private and public in addressing climate change.  There is a growing understanding among both governments and private sector players - from investors to small project developers to large utility companies - that gains are much larger if common strategies are developed and new partnerships are forged.

Michael Liebreich, CEO of Bloomberg New Energy Finance, opened the day with an energetic keynote address, provocative and positive, setting up the stage for the day by announcing the scope of challenge and opportunities for dynamic, and pragmatic climate investment strategies. Sessions on private sector adaptation, and business attitudes towards climate risk followed. The `Matching Expectations' panel brought together indispensable partners, the triangle of project developers-investors-policy makers, into discussion of regulations, fund raising challenges and investors' expectations and requirements. 

The day also showcased five CIF projects, beginning with the highlight of the Morocco Ouarzazate CSP project, a unique PPP model, presented by Paddy Padmanathan, the CEO of the project's developer ACWA Power. 

Consensus emerged that the private sector will deliver much of the innovation and finance required for investments in low carbon technologies and climate resilience in rich and poor communities alike. With scientists warning that we are not on a path to limit global warming to 2° or less, there is growing urgency to identify effective ways in which the public and private sectors can best work together to tackle and adapt to climate change.  The CIF provide a platform for learning by doing to develop such models for effective collaboration and share experiences among the network of CIF recipient and contributor countries.