Photo: Felix_Broennimann | Pixabay Creative Commons
Infrastructure is a key driver for growth, employment, and better quality of life in emerging markets and developing economies (EMDEs). But this comes at a cost. Approximately 70% of global greenhouse gas emissions come from infrastructure construction and operations such as power plants, buildings, and transport. The Overseas Development Institute estimates that over 720 million people could be pushed back into extreme poverty by 2050 as a result of climate impacts, while the World Health Organization projects that the number of deaths attributable to the harmful effects of emissions from key infrastructure industries will rise from the current 150,000 per year to 250,000 by 2030.
Does this mean we need to build less infrastructure? No. But part of the solution lies in low-carbon infrastructure.
This was reinforced by more than 100 countries worldwide, which highlighted cities as a critical element of their greenhouse gas (GHG) emission reduction strategies in their national climate plans (aka INDCs) submitted to the UNFCCC in 2015.
Since the ensuing signing of the Paris Agreement, these countries have shifted gear to focus on turning their climate plans into actions. What if, as many of us may wonder, we could find a cost-effective and efficient way to help put cities—in developing and developed countries alike—onto a low-carbon path of growth?
CURB: Climate Action for Urban Sustainability, launched this Climate Week, is an attempt to do just that. A free, data-driven scenario planning tool, improve overall efficiency, and boost jobs and livelihoods.
A joint vision for effective city planning
What CURB can do for cities owes very much to the inspiration and stories we have taken from them in developing the tool. It was a fortuitous few hours in early 2014 at the C40 Cities Climate Leadership Summit in Johannesburg, South Africa that really got the ball rolling on the development of CURB.
It does not happen often that one of the finest actors of our time tweets about a World Bank supported project and invites all his fans to have a look at the impressive pictures taken from space. In fact, I can’t remember having seen that before.
But this is what Oscar winner and climate activist Leonardo DiCaprio did a few months ago when the Noor Concentrated Solar Plant (CSP) in Morocco—the largest CSP plant in the world - was opened. Once finalized, in two years, it will provide clean energy to 1.1 million households. I visited the plant two weeks ago and it is truly an impressive site. The indirect benefits of the project might even be larger: it has advanced an important and innovative technology, it has driven down costs of CSP, and it holds important lessons for how public and private sectors can work together in the future.
I am proud that the World Bank, jointly with the African Development Bank and a number of foreign investors, supported this cutting-edge solar energy project. But it was made possible thanks to the Climate Investment Funds (CIF), which put in US$435 million to “de-risk” the investment, playing an essential role to kickstart the deal.
In just six weeks, world leaders will meet in Paris to negotiate a new global climate-change agreement. To date, 150 countries have submitted plans detailing how they will move their economies along a more resilient low-carbon trajectory. These plans represent the first generation of investments to be made in order to build a competitive future without the dangerous levels of carbon-dioxide emissions that are now driving global warming.
The transition to a cleaner future will require both government action and the right incentives for the private sector. At the center should be a strong public policy that puts a price on carbon pollution. Placing a higher price on carbon-based fuels, electricity, and industrial activities will create incentives for the use of cleaner fuels, save energy, and promote a shift to greener investments. Measures such as carbon taxes and fees, emissions-trading programs and other pricing mechanisms, and removal of inefficient subsidies can give businesses and households the certainty and predictability they need to make long-term investments in climate-smart development.
Sitting on the train heading back from New York to Washington D.C., gazing out of the window at stressed watersheds, I had some time to reflect on a very special Climate Week. What does it all add up to? Where does it leave us as a global community needing speed and scale in our climate action?
Much is being written. Let me add a perspective. Here are three thoughts amid my swirl of memories, moments and impressions.
Climate osmosis – the street reaches the hallowed halls
It was difficult to stand in the canyon that is 6th Avenue, with a sea of people stretching in both directions – environmental activists, nurses, pensioners, business people, every possible faith community, moms, a sprinkling of celebrity and a dash of statesmen – and not be moved. On the Sunday before the Summit, more than half a million people took to the streets in People’s Climate Marches in New York and more than 160 countries across the globe. The marchers demanded climate action from their leaders, suggesting that the politics of climate action, once considered too hard to handle, might no longer be as difficult as leaders think.
The reverberations continued for 48 hours and became a point of reference in almost every speech at the UN Secretary-General’s Climate Leadership Summit. More than 120 heads of state and government came to hint and in some cases pledge action on climate change. New coalitions of governments, businesses, investors, multilateral development banks and civil society groups announced plans to mobilize over $200 billion for low-carbon, climate-resilient development. Forests and cities were big winners, landing pledges of around $450 million for forests and bringing together more than 2,000 cities in a new Compact of Mayors to help improve accounting of urban greenhouse gas emissions and the actions cities are taking to reduce them.
A few weeks ago, we passed a big milestone in the World Bank Group’s climate change and development work. For the first time, small-scale farmers earned carbon credits from an agricultural land management project.
The project in western Kenya kicked off what will surely be many more soil carbon projects in coming years. It also shows how sustainable farming (such as increased mulching and less tilling) can be part of the global effort to reduce greenhouse gas emissions – while improving livelihoods for poor, rural families.
The soil carbon project, made possible by an accounting system for low-carbon farming approved in 2011, took several years to prepare and implement. I had the fortune to be right there, working with farmers on the ground in Kenya and trying to understand their reality.
Right now, as you read this, wherever you are, we are in uncharted territory. Our global population of 7.1 billion is headed for more than 9 billion by 2050. With our growing numbers and aspirations for shared prosperity comes a growing demand for energy to power homes, businesses, industry and transport. Our continuing reliance on fossil fuels is generating pollution and a dangerously high amount of greenhouse gas emissions – this past summer, the concentration of CO2 in the atmosphere passed levels not seen in 3 million years.
If you were in Beijing last week, you felt the impact in your lungs: Just 16 days into the new year, the city woke up to its first “airpocalypse” of 2014, the latest in a series of dangerously high smog days. Beijing’s mayor announced plans the same day to cut coal use by 2.6 million tons and ban heavily polluting vehicles.
That was an important local step, and we are seeing forward-thinking cities and national governments make similar moves as they develop the architecture for a cleaner, low-carbon future.
Find a good longread on development? Tweet it to @worldbank with the hashtag #longreads.
China’s prospects stirred interest as the BRICs met in South Africa and a new survey by the Organization for Economic Co-operation and Development found China on course to become the world’s largest economy by 2016. The OECD study says China has “weathered the global economic and financial crisis of the past five years better than virtually any OECD country” and should be able to continue catching up and improving living standards over the next decade. While the OECD study says China needs to shift to more environmentally friendly modes of consumption and production, a new Climate Institute/GE Low-Carbon Competitiveness Index finds that France, Japan, China, South Korea and the United Kingdom are “currently best positioned to prosper in the global low-carbon economy.”
The World Bank recently launched an East Asia energy flagship report in Singapore: “Winds of Change: East Asia’s Sustainable Energy Future” (full disclosure: I&r
Friday morning, I braved the snow, wind and sub-zero temperatures and hopped on the train around 7.30 a.m. to avoid what was billed as "extensive delays" as the 119 heads of state would be making their way to the Bella Center.
The main questions on the train were "when does he touch down?", "has he arrived?", and "will he be able to help seal the deal?" And just after 9 a.m., Barack Obama's Air Force One touched down at Copenhagen Airport.
Meanwhile, delegates had been hard at work for much of the night. We understood that 26 ministers met the night between Thursday and Friday, preparing the core document for the leaders.
On Friday we spent a lot of time waiting. First we waited for the Heads of State to take their seats. Word in the corridors had it that they had agreed to 2 degrees, which would imply serious emission reductions, as well as to the provision of long term finance. The issue of whether any agreement on emissions reduction is "MRV-able", i.e. whether emission reductions are monitorable, reportable and verifiable, has been key when it comes to reductions from the economies in transition such as India, China, Brazil, and others. These countries can only accept MRV on the condition that the developed countries make an ambitious and legally binding target for emission reductions. The developed countries, meanwhile, have put serious cash on the table, on the condition that the big emerging economies will commit to MRV. Further, the governance and financial architecture of the resources, should they be realized, remained unclear. The G-77 has pushed direct access to the financial mechanism, as well as for giving the COP the power to appoint the Board for the mechanism, while other countries have been more comfortable drawing on existing financial institutions and mechanisms.