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.
In January, World Bank Group President Jim Yong Kim urged the audience at the World Economic Forum in Davos to look closely at a young, promising form of finance for climate-smart development: green bonds. The green bond market had surpassed US$10 billion in new bonds during 2013. President Kim called for doubling that number by the UN Secretary-General's Climate Summit in September.
Just a few days ago—well ahead of the September summit—the market blew past the US$20 billion mark when the German development bank KfW issued a 1.5 billion Euro green bond to support its renewable energy program.
Average economic losses from natural disasters are rising, despite considerable efforts to better manage risk from natural hazards over the last few decades. Data from Munich Re shows a sharp rise, from $50 billion a year in the 1980s to just under $200 billion annually in the last decade. Population growth, rapid urbanization, and climate change are compounding these losses. Securing prosperity in the midst of growing hazards is an enormous challenge that demands a new approach to development.
The international community is rising to meet this challenge head-on. Last week in Oslo, Norway, I had the privilege of participating in the 15th Consultative Group Meeting for the Global Facility for Disaster Reduction and Recovery (GFDRR), where 75 representatives from partner countries and international development organizations met to help scale up and better mainstream efforts to build climate and disaster resilience in some of the most vulnerable communities around the globe.
With the importance of this effort in mind, I co-authored an article with Norwegian Minister of Foreign Affairs Børge Brende, in which the minister and I argue that sustainable development gains require a new approach towards mitigating risk from climate change and natural hazards. After the recent days spent with my colleagues in Norway, I’m encouraged by the shared enthusiasm of GFDRR and its partners for the task ahead. It’s time to get to work.
World Bank Vice President for Sustainable Development Rachel Kyte issued the following statement welcoming the United Nations announcement today of two new UN special envoys on climate change: John A. Kufuor, who served as president of Ghana from 2001 to 2009 and chairperson of the African Union from 2007 to 2008, and Jens Stoltenberg, the prime minister of Norway from 2000 to 2001 and 2005 to 2013.
"The appointment of President John A. Kufuor and former PM Jens Stoltenberg as the Special Envoys on Climate Change by UN Secretary-General Ban Ki-moon is a crucial step to mobilize political will in advance of the UN 2014 Climate Summit. At the World Bank Group we are working with countries to increase ambition and take climate action by highlighting their opportunities for action that build growth, jobs, and resilience. We are delighted to support the Special Envoys, who will be critical to meeting the climate challenge."
Today, three countries – Norway, the United Kingdom and the United States – pledged $280 million to the World Bank’s BioCarbon Fund, kicking off a groundbreaking initiative for sustainable forest landscapes.
Their significant commitment to land and forest preservation is important for two reasons.
The new Initiative for Sustainable Forest Landscapes will manage landscapes in a holistic fashion by working across sectors, rather than in “silos.” It also brings in the private sector already in the design phase, recognizing that many private firms are committed to “greening” and securing their supply chains from the impact of climate change.