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The World Region

Will climate finance mean a new path for the World Bank?

Athena Ballesteros's picture

In Copenhagen, donor countries pledged to raise US$30 billion in “fast start funds” and an additional US$100 billion a year by 2020 to invest in reducing emissions and adapting to the impacts of climate change. Though the commitments are clear, the delivery is uncertain. By the June UNFCCC meetings in Bonn, countries will need to start drafting a set of decisions on the financial architecture to manage and distribute these climate funds.

 

Photo: Woman in China counting moneyBy embarking on several climate change initiatives, including an assessment of progress in implementing the Strategic Framework on Development and Climate Change (SFDCC) and the revision of its Energy Strategy, the World Bank has positioned itself to play a role in the management of new climate funds.  The Bank already hosts several climate related trust funds, including the Climate Investment Funds. It is the trustee of the Global Environment Facility (GEF), and its largest implementing agency. The question is whether the Bank should be entrusted with an even larger role in the future of climate finance. If it is going to gain the political support necessary to make this happen, the World Bank must systematically address issues of environmental and social sustainability in its mainstream investments.

 

Political will, money, ingenuity and cooperation for UN Energy goals

Jamal Saghir's picture

Access to energy services and energy efficiency are the two key messages of the report released in New York April 28 by UN Secretary-General Ban-Ki-moon and his Advisory Group on Energy and Climate Change. “Energy for a Sustainable Future” calls on countries—rich, poor and middle-income—to transform their national energy systems to ensure universal access to modern energy services, and reduce global energy intensity by 2030.


These are ambitious goals, the report says. It notes that access, in particular, “requires overcoming complex challenges in some of the poorest and most remote locations on the globe.” Although ambitious, the goals are certainly attainable. Achieving both of them will require political will, money, ingenuity and cooperation, not only among governments, but must also include the private sector and civil society.

Iceland’s Volcano and Climate Science: Will there be a Silver Lining to the Ash Cloud?

Michael Levitsky's picture

The eruption of Eyjafjallajokull in Iceland could mean some good news for those of us concerned with understanding the science of climate change.

As volcanoes go, this is small stuff.  The last volcano to have a substantial effect on global climate was Mount Pinatubo which erupted in the Philippines in 1991. Volcanoes affect global climate largely because the sulfur gases that they emit oxidize in the atmosphere to form sulfate aerosols (fine particulate matter), which stay around in the stratosphere for at least 12 months, and act as a strong cooling agent. According to the National Oceanic and Atmospheric Administration (NOAA), Mt. Pinatubo caused global temperatures to dip by about 0.5 degrees Centigrade for a year. The ash, which has been of concern to airline passengers in Europe and many others across the globe recently, generally has only a small and local effect on climate –it tends to fall to earth in a matter of weeks.

Disasters: what is the cost ?

Julia Bucknall's picture

Buried under the most snow since records have been kept, as we are right now in Washington, the mind turns naturally to the effects of  extreme weather events. Clearly the impacts for those of us with solid housing and uninterrupted WiFi access are minimal compared with the impacts of extreme weather for most people in the world.  But even here we can see a combination of effects -- the costs of closing offices or of running through the whole winter's supply of firewood in  one week, at the same time as the economic uptick for those who repair household boilers, restore downed power lines or dig people's cars out  of the snow or shovel their sidewalks for a fee. Since climate change is expected to increase the frequency and severity of extreme weather  events, figuring out the net cost of natural disasters is an important topic.  And figuring out sensible ways to reduce those costs is also  going to be increasingly important.

At the World Bank last week, we had an interesting seminar from Stéphane Hallegate from the French International Centre for Research on Environment and Development and the National Meteorology School that shed light on some of these issues. Stéphane has modelled the impacts of a number of natural disasters looking at both the direct costs of  the disaster (how much does it cost to rebuild structures that were destroyed?) and the indirect costs (what is the cost of a business  being closed for several months net of any local economic benefits that may occur as reconstruction starts). 

Sunita Narain on acting now for climate-smart development

Alexander Lotsch's picture

The World Bank's Sustainable Development Network held its annual forum over the past two weeks in Washington DC with World Development Report 2010’s theme of 'Act now, Act together, Act differently'. Hundreds of World Bank staff convened to discuss the way forward on climate action with colleagues, clients and climate experts. With the Copenhagen Accord leaving many important issues of international climate policy unresolved, development experts focused on the positive actions that can be taken to foster ‘climate-smart’ development. In a high-level plenary discussion, international experts discussed how green investments stimulate economic recovery and climate-smart growth, as in Korea and China, and the role of rich and poor countries in sharing the global atmospheric commons going forward. We asked Sunita Narain, one of the panelists—and Director, Centre for Science and Environment, New Delhi—about what actions she thinks need to be taken now at the global level, and about the role of international development institutions in putting climate-smart development into practice. 
 

Sunita Narain, Director, Centre for Science and Environment, New Delhi from World Bank on Vimeo.

Why Aren't Asset Managers Factoring in Climate Change?

Rachel Ilana Block's picture

There is a self-interested economic logic that often holds true for political questions relating to climate change.  As reflected in the poll of public attitudes toward climate change commissioned by the WDR and published last month, citizens of the poorest countries—those most vulnerable to the physical impacts of climate change—are much more likely to rate climate change as “very serious” than are citizens of high-income countries, who possibly perceive themselves as less vulnerable.  The shares ranking climate change as a very serious problem were: U.S. 31%, Japan 38%, and France 43%, in contrast to Senegal 72%, Kenya 75%, and Bangladesh 85%.

Yet, while the livelihoods of a fisherman in Senegal, a pastoralist in Kenya, and a rice farmer in Bangladesh’s delta might be the most immediately vulnerable to climate change, it’s worth noting that the assets of an insurance company on the U.S.’s Gulf Coast, a real estate investor in Japan, and a champagne-producing giant in France are vulnerable too.

Technology Innovation

Xiaodong Wang's picture

As my colleague Mike Toman noted recently, Geoffrey Heal of Columbia University said the following in a recent blog post:

"neither costs nor capital requirement will prevent us from decarbonising the electricity supply. The real obstacle to doing this largely with renewables is our current inability to store power, and as long as we cannot store power we will need to use non-renewable sources like nuclear and coal with carbon capture and storage."

However, this view does not factor in future technological innovation, which I think is very significant.

The IEA Energy Technology Perspective projected that renewable energy could contribute around 50% of the power mix by 2050 under their Blue Scenario to achieve a 450 ppm world. Many other global leading energy/climate scenarios have the same projections, including those from Shell. Of renewable energy resources, geothermal, hydro, and biomass can provide base-load power. Indeed, solar and wind are intermittent.

Forests: One of the few bright spots in Copenhagen

Benoît Bosquet's picture
  Photo © iStockPhoto.com

With only about 36 hours left before the curtain falls on the climate negotiations in Copenhagen, forests have so far been one of the few bright spots. The Parties to the UNFCCC agree on the basic premise that the forests of developing nations ought to play a significant role in a future climate change regime. The activities that would be implemented, monitored and incentivized in a successor agreement to the Kyoto Protocol are referred to as 'REDD+', which includes reducing emissions from deforestation and forest degradation, conserving forests, sustainably managing forests and enhancing forest carbon stocks (code for things like re-vegetation and reforestation).

The three-page framework text on REDD+ likely to be agreed upon in Copenhagen is good. It covers aspects such as the scope of activities, reporting and safeguards. The need to respect the knowledge and rights of indigenous peoples is included, which is a marked improvement from Poznan last year when the U.S. received the Fossil of the Day award from Climate Action Network for opposing this inclusion, or Bali two years ago when the launch of the Forest Carbon Partnership Facility triggered a protest by some civil society groups. Some sticky points remain, including the details of how to link subnational monitoring and implementation with that at the national level. But, as of Thursday mid-day, the number of brackets in the REDD+ text was significantly lower than in the general text on climate finance. 

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