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Development

The World Bank and climate change: Six years down the road

Kseniya Lvovsky's picture

My foray into climate change in the World Bank Group started with the drought-affected regions in Andhra Pradesh, India in 2003. The WB had just started thinking about adaptation to climate change and was trying to begin a dialogue with developing countries dealing with overwhelming challenges of poverty. With my colleagues in India, we began looking at drought-proofing in Andhra Pradesh without labeling this a `climate change’ study. In many ways, this was probably the first attempt to integrate adaptation into a Bank rural poverty reduction project. Two years later, the study was well received and became the pilot for drought-adaptation, to be linked to India’s National Rural Employment Guarantee Program.

This experience served as a laboratory for us to learn lessons that have helped mould Bank’s engagement with climate change. It went on to shape the key features of the Strategic Framework on Development and Climate Change (SFDCC) that was approved a year ago. Connecting with client countries and listening to their concerns became the cornerstone for the SFDCC. The Framework was formulated through an extensive global consultation with both World Bank Group staff and external stakeholders. It was the process itself that helped build ownership for climate change work inside the Bank Group and among client countries.

How Can We Untie the Climate-Development Gordian Knot?

Jean-Charles Hourcade's picture

   Photo © iStockphoto.com
The participation of developing countries is essential for effective climate policy. But this participation is hampered by the fact that many developing countries perceive environmental policies as a new form of Malthusianism. And unfortunately, despite repeated references to sustainable development in the climate negotiations, the debates about climate and development policies continue to occur in separate spheres. A new Gordian knot has been tied through a succession of misunderstandings.

Economists may have caused some of these misunderstandings by laying out simple principles that are useful as a introduction to the underlying economic parameters of climate policies: first, a unique carbon price (through carbon taxes or a cap & trade system) to foster carbon saving behaviours without distorting international competition; second, compensatory transfers to offset the adverse impact of higher energy prices for the most affected countries. But this has resulted in climate policies being considered a cost-minimization exercise conducted regardless of the nature of development issues.

Renewable, Clean - and Lycra-clad - Energy

300 miles. Starting September 26, about 200 cyclists, including myself, will embark on a 300 mile, 5-day ride from New York City to the steps of the Capitol in Washington, DC to promote awareness for climate change and to raise money for rails-to-trails conservancies and clean energy NGOs (http://www.climateride.org/). If I were to drive the same distance, using my beloved '93 Ford Probe (Ford Mustang Lite), my gas consumption would produce about 100 kilograms of carbon dioxide.

Listening to views from around the world

Marianne Fay's picture

Every year, the World Development Report focuses on a different topic of global importance, and, as part of its preparatory activities, consults with various groups around the world.  The 2010 World Development Report on Development and Climate Change is no exception. This report has required unique attention to varying points of view because climate change affects different countries in drastically different ways. Over the past year, as we approached the task of putting together a report on such a significant topic, we sent our team of authors all over the world to consult with representatives from over 40 countries.  We listened to stories about how climate change is affecting them, and sought their views on our report’s evolving messages, which I described in an earlier blog post. We compiled this feedback as it was received, and have posted summaries of these consultations on our website.

Climate dilemmas in Central Asia

Rasmus Heltberg's picture
    Photo © Rasmus Heltberg/World Bank

How should climate change be addressed in Tajikistan, the poorest and—according to a World Bank regional assessment, most climate-vulnerable—country in Eastern Europe and Central Asia?1  On a recent visit to this scenic nation to assess the poverty aspects of climate change, we struggled with this seemingly simple question. Answers remain elusive, given the country’s daunting climate dilemmas. So, while in Dushanbe, I attempted to write about the range of the challenge.

First, consider Tajikistan’s thousands of glaciers, many of which are receding. As they melt, farmers downstream enjoy plentiful water supply and see no need to take action. However, once the glaciers are gone, dry rivers and extreme water scarcity could mean the end of farming livelihoods in some areas.

Agricultural trade, global warming, and development: Part 1 Can global warming thaw the Doha negotiations?

John Nash's picture

As we approach a critical phase in the negotiations regarding climate change, and continue to grope for a way forward in the Doha Round negotiations, it seems to me to be worth emphasizing the multi-faceted linkages between a liberalized trade regime and climate change. Some of these linkages have received fairly extensive attention.  For example, it is widely recognized that trade barriers to movement of low-carbon technology need to be kept low, and this is being addressed (although some might think inadequately) under the rubric “trade in environmental services” in the Doha Round negotiations. But other connections have received, IMHO, a level of attention that grossly undervalues their potential to contribute to objectives on either the trade side or the climate change side, or both. This is especially true in the realm of agriculture.

Low-carbon growth: the only sustainable way to overcome world poverty

Nicholas Stern's picture

The two great challenges of the 21st century are the battle against poverty and the management of climate change.  On both we must act strongly now and expect to continue that action over the coming decades.  Our response to climate change and poverty reduction will define our generation.  If we fail on either one of them, we will fail on the other. The current crisis in the financial markets and the economic downturn is new and immediate, although some years in the making. All three challenges require urgent and decisive action, and all three can be overcome together through determined and concerted efforts across the world. But whilst recognising that we must respond, and respond strongly, to all three challenges, we should also recognise the opportunities: a well-constructed response to one can provide great direct advantages and opportunities for the other.

Gathering clouds—climate change or economic recession

Richard Damania's picture
Gathering clouds—climate change or economic recession
   Photo © Curt Carnemark/World Bank

Climate change is not a new phenomenon. It has been around through much of Earth’s history. But what is new is the speed of climate change today and the growing certainty that it is a consequence of human actions. Why should poor and developing countries worry about climate change? Many say that it is a distant threat of uncertain magnitude and scale. With the global financial crisis, is it not more reasonable to address current priorities such as food security, unemployment, growth and burgeoning fiscal deficits?

Why coal?

Justin Yifu Lin's picture

Some readers and activists may question why the World Bank Group funds coal-fired power plants and yet professes to embrace sustainable development. The answer is that there is an urgent need for energy in the poor countries that we serve and indeed in my home country, China. There are roughly 1.6 billion people in developing countries--700 million of whom are in Africa and 550 million in South Asia--who lack access to electricity.

Making Stimulus Packages Green

Justin Yifu Lin's picture

The financial meltdown dominates agendas across the world today, in the wake of two other recent shocks--high food prices and energy price volatility--that have particularly affected many developing countries. Yet, even in a time when countries are preoccupied by pressing economic problems, we cannot afford to take our eye off the ball of another emerging crisis---global warming caused by climate change. Every crisis is an opportunity. With the right handling, we could simultaneously solve the current financial crisis and prevent the emerging climate change crisis.

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