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Why investing in forests is money—and time-- well spent

Tone Skogen's picture
Togo_Andrea Borgarello / World Bank

It is widely acknowledged that reducing emissions from deforestation could bring about one-third of the greenhouse gas emission reductions we need by 2030 to stay on a 2-degrees trajectory. But protecting and managing forests wisely does not only make sense from a climate perspective.  It is also smart for the economy. Forests are key economic resources in tropical countries. Protecting them would increase resilience to climate change, reduce poverty and help preserve invaluable biodiversity.

Here are just a few facts to illustrate why forests are so important. First, forests provide us with ecosystem services like pollination of food crops, water and air filtration, and protection against floods and erosion. Forests are also home for about 1.3 billion people worldwide who depend on forest resources for their livelihood. Locally, forests contribute to the rainfall needed to sustain food production over time. When forests are destroyed, humanity is robbed of these benefits. 

The New Climate Economy report shows us that economic growth and cutting carbon emissions can be mutually reinforcing. We need more innovation and we need more investments in a low carbon direction. This requires some fundamental choices of public policy, and the transformation will not be easy. However, it is possible and indeed the only path to sustained growth and development. If land uses are productive and energy systems are efficient, they will both drive strong economic growth and reduce carbon intensity.

Already, the world's large tropical forest countries are taking action. 

Economic diversification - the trillion dollar question: when and how?

Donato De Rosa's picture


This blog is part of an ongoing conversation on diversification

Countries with good institutions make good use of natural resource wealth, while the obverse is equally true.

However, our take diverges a little from the conventional wisdom: while it is certainly true that Norway was a strong parliamentary democracy when oil was discovered, did not have the legal and regulatory institutions to manage the oil boom. It developed them over time, as needs arose and circumstances changed. 

Mineral wealth for human development: The Texas way

Patricio V. Marquez's picture
A student with University of Texas at Austin Tower in the background. © qingwa/iStock


As countries look to domestic resources to help meet the ambitious development agenda laid out in 2015, there is value in looking at international experiences where mineral wealth has become a dedicated revenue stream for financing development efforts, particularly for investing in human capital (via public health or education).

Renewable energy export-import: a win-win for the EU and North Africa

Sameh Mobarek's picture

Also available in: Arabic | French | Spanish

Rows of solar panel at a thermo-solar power plant in Morocco. Photo by Dana Smillie / World Bank.
Rows of solar panel at a thermo-solar power plant in Morocco. (Photo: Dana Smillie / World Bank)

Over the past several years much has been written about the significant potential for solar energy generation in the Middle East and North Africa, where there is no shortage of sunshine. The International Energy Agency estimated that the potential from concentrated solar power technology alone could amount to 100 times the electricity demand of North Africa, the Middle East and Europe combined.   

In the wake of commitments at the Paris climate conference (COP21), it is time to develop this rich source of low-carbon energy sitting close to Europe’s southern shores, and bolster efforts to agree on a framework to import clean, sustainable energy from North Africa. 

As recently as 2012 there have been efforts to adopt a framework that would allow importing renewable energy from Morocco to Germany—through France and Spain—but electricity trade between countries typically becomes reality when there are economic benefits for all sides. Electricity trade has the added benefit of fostering closer political ties. 

Expanding regional trade between North Africa and Europe has also been hindered by inadequate physical electrical connections between the two continents and poor physical integration in European electricity grids. There is currently only one electrical transmission interconnection between North Africa and Europe, namely the Morocco-Spain connection.  Further, Spain’s interconnection with the rest of Europe is limited, with no new transmission projects undertaken to expand this capacity for the past three decades. At the same time, Spain had excess generation capacity because of the economic downturn experienced in Europe over the past several years. That made impractical the notion of allowing North African renewable energy into the Spanish market. Italy, another potential electricity gateway from North Africa, was in a similar situation.

A tool at the right time for tax reform

Jim Brumby's picture


In today’s world, international aid is fickle, financial flows unstable, and many donor countries are facing domestic economic crises themselves, driving them to apply resources inward. In this environment, developing countries need inner strength. They need inner stability. And they deserve the right to chart their own futures.

This is within their grasp, and last week the launch of an unassuming-but-powerful tool marked an important step forward in this quiet independence movement. It’s called the TADAT, or Tax Administration Diagnostic Assessment Tool. At first glance, this tool may look inscrutable, technical, and disconnected from development. But listen. 

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.

Unleashing private investment in renewable energy

Korina Lopez's picture
Angus McCrone, Jin-Yong Cai, and Rune Bjerke discuss renewable energy. © Franz Mahr/World Bank


More than 700 million people live in extreme poverty around the world. If that number seems daunting, then consider this: 1.1 billion people – more than three times the population of the United States – live without electricity.

So it goes without saying that ending energy poverty is a key step in ending poverty itself. And world leaders agree – a sustainable development goal just for energy was adopted last month. It emphasizes the role of renewable energy in getting us to the finish line of reaching sustainable energy for all by 2030. What will give us a big boost in that race? Private financing.

Putting a price on carbon, one jurisdiction at a time

Thomas Kerr's picture
CPLC Design Meeting at World Bank Group Headquarters
Credits: Max Thabiso Edkins


This week, the World Bank Group released the latest version of our annual State and Trends of Carbon Pricing report. It reports that today,39 nations and 23 cities, states or regions are using a carbon price.

​This represents the equivalent of about 7 billion tons of carbon dioxide, or 12 percent of annual global greenhouse gas emissions.

Part of the #Youthbiz movement? Share your story!

Valerie Lorena's picture

Also available in: Français | العربية
 



A boat trip from Port Elizabeth to Kingstown, in the Caribbean country of Saint Vincent and the Grenadines, is a one-hour trip that locals take several times a day. It was during one of these journeys that the boat of Kamara Jerome, a young Vincentian fisherman, ran out of gas six miles from Bequia City in what is termed locally as the "Bequia Channel." While waiting for help with strong wind gusts and the sun on his head, the idea of developing a boat that would run with wind and solar energy was born. Soon after, the idea became a prototype; a boat using green technology was on the water making 20-year-old Jerome a winner of international innovation competitions and a role model to other Caribbean youth. 
 
In Mexico, young engineer Daniel Gomez runs a multimillion bio-diesel company originally conceived as a research project for his high school chemistry class. Gomez and his partners - Guillermo Colunga, Antonio Lopez, and Mauricio Pareja - founded SOLBEN (Solutions in bio-energy in Spanish) in their early twenties. 
 
Although Daniel and Kamara have different educational backgrounds, they do share one important skill, the ability to identify a problem, develop an innovative solution, and take it to the market. In other words, being an entrepreneur, an alternative to be economically active, that seems to work and not only for a few.

Rachel Kyte: Takeaways from the Spring 2015 Climate Ministerial

Rachel Kyte's picture
Spring Meetings 2015


At this year's climate ministerial of the World Bank Group/IMF Spring Meetings, 42 finance and development ministers discussed phasing out fossil fuel subsidies, putting a price on carbon and mobilizing the trillions of dollars in finance needed for a smooth, orderly transition to a low-carbon economy. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte describes the conversations in the room and the key takeaways.  


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