Emiko Kashiwagi / Flickr
Industries account for nearly one-third of direct and indirect global greenhouse-gas emissions, and they will be playing an increasingly important role in achieving the global targets expected to be set at the international climate summit in Paris in December. For example, the cement (5 percent), chemicals (7 percent) and iron and steel (7 percent) sectors account for nearly one-fifth of all global greenhouse-gas emissions, and those sectors have significant potential to reduce those emissions.
Tackling climate change by focusing on industries has long been a contentious issue. Some industries claim that regulation will impede economic growth by imposing additional burdens on competitive sectors. In some cases, they have an argument; but, if it is designed well and adapted to the context, a smart and timely intervention can influence a socially and economically positive systemic change.
Many businesses themselves, by pursuing cost-effective, long-term, environmentally sustainable production, long ago realized that “going green” can be highly advantageous, and they have been taking a pro-active approach toward addressing the issue precisely because it makes business sense. One group of global business leaders – including Unilever, Holcim, Virgin Group and others – have taken their commitment further by encouraging governments to lend their support for net-zero emissions strategies by 2050.
Even in developing countries, companies like Intel are investing millions of dollars in energy efficiency to save on current and future energy costs. The company has already saved $111 million since 2008 as a result of $59 million worth of sustainability investments in 1,500 projects worldwide.
Source: New Climate Economy 2014; World Bank World Development Indicators
The sentiment that climate action by both the private sector and the public sector is urgent was also an important theme highlighted by World Bank Group President Jim Kim during January's World Economic Forum conference in Davos. Mitigation measures, such as energy-efficiency policies, have long been seen as a way to improve profits and manage risks. The logic for energy efficiency, a key set of abatement actions by the manufacturing sector, is there.
The recent New Climate Economy initiative, produced by the Global Commission on the Economy and Climate, estimates that at least 50 percent – and, with broad and ambitious implementation, potentially up to 90 percent – of the actions needed to get onto a pathway that keeps warming from exceeding 2°C could be compatible with the goal of ensuring the competitiveness of industries.
A new global network of Climate Innovation Centers will support the most innovative private-sector solutions for climate change.
Pop quiz: What does an organic leather wallet have in common with a cookstove for making flatbread and a pile of recycled concrete?
Believe it or not, each of these represents something revolutionary: a private sector-driven approach to climate change. Each of these products – yes, even concrete – is produced by an innovative clean-tech company. And as of March 26th, those businesses, and hundreds more like them, have something else in common. They’re connected through infoDev's newly established global network of Climate Innovation Centers (CICs), an innovative project that is taking the idea of green innovation beyond borders.
Having piloted the CIC model in seven different countries – Kenya, South Africa, the Caribbean, Ethiopia, Morocco, Ghana and Vietnam – it was time for infoDev, a global entrepreneurship program in the World Bank Group’s Trade and Competitiveness Global Practice, to follow a time-honored business practice: to scale up and take this movement global.
And so, as part of last month’s South Africa Climate Innovation Conference, we joined forces with 14 experts from the seven different countries where the CICs operate to establish the foundations of the world’s first global network devoted to supporting green growth and clean-tech innovation.
CIC staff debate and discuss the new CIC Network during the South Africa Climate Innovation Conference.
This global network of Climate Innovation Centers – business incubators for small and medium-sized enterprises (SMEs) – has been designed to help local ventures take full advantage of the fast-growing clean-technology market. The infoDev study “Building Competitive Green Industries” estimates that over the next decade $6.4 trillion will be invested in clean technologies in developing countries. An even more promising fact is that, out of this amount, about $1.6 trillion represents future business opportunities for SMEs, which are important drivers of job creation and competitiveness in the clean-tech space.
- sustainable development; sustainable leadership; climate change innovation; alleviating poverty;
- Climate Change
- climate action
- Apps for Climate Change
- Apps for Climate
- Africa climate change
- Information and Communication Technologies
- Private Sector Development
- Climate Change
- South Africa
As the people of Vanuatu begin the painstaking task of assessing the damage to their homes, businesses, and their communities in the wake of Cyclone Pam, another assessment is underway behind the scenes.
Given the intensity of the category 5 storm and the reports of severe damage, the World Bank Group is now exploring the possibility of a rapid insurance payout to the Government of Vanuatu under the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI).
The Pacific catastrophe risk insurance pilot stands as an example of what’s available to protect countries against disaster risks. The innovative risk-pooling pilot determines payouts based on a rapid estimate of loss sustained through the use of a risk model.
The World Bank Group acts as an intermediary between Pacific Island countries and a group of reinsurance companies – Mitsui Sumitomo Insurance, Sompo Japan Insurance, Tokio Marine and Nichido Fire Insurance and Swiss Re. Under the program, Pacific Island countries – such as Vanuatu, the Cook Island, Marshall Islands, Samoa and Tonga – were able to gain access to aggregate risk insurance coverage of $43 million for the third (2014-2015) season of the pilot.
Japan, the World Bank Group, and the Secretariat of the Pacific Community (SPC) partnered with the Pacific Island nations to launch the pilot in 2013. Tonga was the first country to benefit from the payout in January 2014, receiving an immediate payment of US $1.27 million towards recovery from Cyclone Ian. The category 5 cyclone hit the island of Ha’apai, one of the most populated of Tonga’s 150 islands, causing $50 million in damages and losses (11 percent of the country’s GDP) and affected nearly 6,000 people.
Globally, direct financial losses from natural disasters are steadily increasing, having reached an average of $165 billion per year over the last 10 years, outstripping the amount of official development assistance almost every year. Increasing exposure from economic growth, and urbanization—as well as a changing climate—are driving costs even further upward. In such situations, governments often ﬁnd themselves faced with pressure to draw funding away from basic public services, or to divert funds from development programs.
Investing in Innovative Financial Solutions
The World Bank Group and other partners have been working together successfully on innovative efforts to scale up disaster risk finance. One important priority is harnessing the knowledge, expertise and capital of the private sector. Such partnerships in disaster risk assessment and financing can encourage the use of catastrophe models for the public good, stimulating investment in risk reduction and new risk-sharing arrangements in developing countries.
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is another good example of the benefits of pooled insurance schemes, and served as the model for the Pacific pilot. Launched in 2007, this first-ever multi-country risk pool today operates with sixteen participating countries, providing members with aggregate insurance coverage of over $600 million with 8 payments made over the last 8 years totaling of US$32 million. As a parametric sovereign risk transfer facility, it provides member countries with immediate liquidity following disasters.
We also know that better solutions for disaster risk management are powered by the innovation that results when engineers, sector specialists, and financial experts come together to work as a team. The close collaboration of experts in the World Bank Group has led to the rapid growth of the disaster risk finance field, which complements prevention and risk reduction.
- disaster recovery; Aceh; tsunami
- disaster response
- disaster relief
- disaster recovery
- disaster preparedness
- Disaster management
- Disaster Funding
- disaster coverage
- Disaster Risk Financing and Insurance Program
- catastrophic risk; livestock; disaster risk management
- Public Sector and Governance
- Private Sector Development
- Financial Sector
- Climate Change
As the world’s policymakers and business leaders converge in Davos, Switzerland for tomorrow’s opening of the World Economic Forum, there’s certainly no shortage of global threats for them to worry about during the WEF’s annual marathon of policy seminars and economic debates. A world of anxiety enshrouds this week’s conference theme of the “New Global Context,” judging by the WEF’s latest Global Risks Report: Its analysis of 28 urgent threats and 13 ominous long-term trends offers a comprehensive catalogue of extreme dangers to social stability and even human survival.
As if the Davos data isn’t worrisome enough, several just-issued scientific studies – which document worsening trends in climate change, humanity’s imminent collision with the limits of the planet’s resilience and the intensifying damage being wrought by voracious consumption-driven growth – trace a relentlessly gloomy trajectory.
Relieving some of the substantive tension, there’s also often a puckish undercurrent within each year’s Davos news coverage. Poking holes in the self-importance of Davos’ CEOs and celebrities – with varying degrees of lighthearted humor or reproachful reproof – has become a cottage industry, springing up every January to chide the mountaintop follies of “the great and the good.” Skeptics often scoff that the lofty pronouncements of Davos Deepthink have become almost a caricature of elite self-importance, and there’ll surely be plenty of the customary sniping at the insularity of Davos Man and at the insouciance of the globalized jet set as its over-refined One Percent folkways become ever more detached from the struggles of the stagnating middle class and desperate working poor.
Despite such Davos-season misgivings, it’s worth recalling the value of such frequent, fact-based knowledge-exchange events and inclusive dialogues among business leaders and thought leaders. Some of the Davos Set may revel in after-hours excess – its Lucullan cocktail-party scene is legendary – yet the substantive centerpiece of such meetings remains a valuable venue for expert-level policy debates, allowing scholars to inject their ideas straight into the bloodstream of corporate strategy-setting. The global policy debate arguably needs more, not fewer, thought-provoking symposia where decision-makers can be swayed by the latest thinking of the world’s academic and social-sector experts. Judging by the fragmented response to the chronic economic downturn by the global policymaking class, every multilateral institution ought to host continuing consultations to help shape a coherent policy agenda.
Focusing on just one area where in-depth know-how can serve the needs of decision-makers: The World Bank Group has long been tailoring world-class knowledge to deliver local solutions to client countries about one of the trends singled out in this year's WEF list of long-term concerns – the worldwide shift from “predominantly rural to urban living.” The biggest mass migration in human history has now concentrated more than 50 percent of the world’s population in cities, leading this year’s Global Risks Report to assert that the risk of failed urban planning is among the top global concerns.
“Without doubt, urbanization has increased social well-being,” commented one WEF trend-watcher. “But when cities develop too rapidly, their vulnerability increases: pandemics; breakdowns of or attacks on power, water or transport systems; and the effects of climate change are all major threats.”
Yet consider, also, the potential opportunities within the process of managing that trend toward ever-more-intense urban concentration. What if the prospect of chaotic urbanization were able to inspire greater city-management creativity – so that urban ingenuity makes successful urbanization a means to surmount other looming dangers?
For an example of the can-do determination and trademark optimism of the development community – with the world’s urbanization trend as its focus – consider the upbeat tone that pervaded a conference last week at the World Bank’s Preston Auditorium, analyzing “Smart Cities for Shared Prosperity.” With more than 850 participants in-person, and with viewers in 92 countries watching via livestream, the conference – co-sponsored by the World Resources Institute (WRI), Embarq, and the Transport and Information & Communications Technology (TICT) Global Practice of the World Bank Group – energized the world’s leading practitioners and scholars across the wide range of transportation-related, urban-focused, environment-conscious priorities.
(Thinking of the Preston gathering’s Davos-season timing and full-spectrum scope: It sometimes strikes me that – given the continuous procession of presidents, professors, poets and pundits at the Preston podium – there could be a tagline beneath Preston's entryway, suggesting that the Bank Group swirl of ideas feels like “Davos Every Day.”)
Amid its focus on building “smart cities” and strengthening urban sustainability, the annual Transforming Transportation conference took the “smart cities” concept beyond its customary focus on analyzing Big Data and deploying the latest technology-enabled metrics. By investing in “smart” urban design – and, above all, by putting people rather than automobiles at the center of city life – the scholars insisted that society can reclaim its urban destiny from the car-centric, carbon-intensive pattern that now chokes the livability of all too many cities.
The fast-forward series of “smart cities” speeches and seminars reinforced the agenda summarized by TICT Senior Director Pierre Guislain and WRI official Ani Dasgupta – formerly of the Bank Group and now the global director of WRI’s Ross Center on Sustainable Cities – in an Op-Ed commentary for Thomson Reuters: “We can either continue to build car-oriented cities that lock in unsustainable patterns, or we can scale up existing models for creating more inclusive, accessible and connected cities. Pursuing smarter urban mobility options can help growing cities leapfrog car-centric development and adopt strategies that boost inclusive economic growth and improve [the] quality of life.”
- business environment
- Competitiveness Policy
- Competitive Industries
- competitive cities
- Competitive Sectors
- urban competitiveness
- public private dialogue
- Private sector competitiveness
- Urban Development
- Public Sector and Governance
- Private Sector Development
- Law and Regulation
- Climate Change
Growing up, I always dreaded to enter my grandmother’s kitchen in the village. She used firewood to cook: There was such a dark, thick smoke in the room that I couldn’t breathe or keep my eyes open. I really don’t know how my grandmother could spend hours and hours in there, every day, for so many years. And unfortunately, my grandmother is not an isolated case. More than 90 percent of Kenya’s population uses firewood, charcoal or kerosene for their daily cooking needs.
I always dreamed that clean sources of energy would make Kenyans more independent and less exposed to the serious health risks posed by fossil fuels. In rural areas, most women like my grandmother rely on firewood; its consumption not only depletes our forests but also emits hazardous smoke that causes indoor pollution and eventually respiratory illness. In areas where firewood is scarce, women have to use cow dung as fuel, an option possibly even worse in terms of pollution. Urban areas are affected too: The poor rely mostly on charcoal, another biomass that has the same negative effects and health risks of firewood.
Cleaner fuel options have already been developed but are often too expensive or too difficult to transport across the country to be adopted by a large part of the population, especially by the 40 percent of people at the base of the pyramid.
So what can be done? How can we make clean fuels more affordable and accessible?
I first heard about bottled biogas when I visited a "green" slaughterhouse in Kiserian, Kenya. I was really impressed: My dream of a cleaner, more affordable and easily accessible fuel was right there before my eyes.
The Keekonyoike Slaughterhouse found an innovative way to produce affordable biogas and package it for distribution all around the country. Using a special bio-digester, this business can turn blood and waste from a community-based Maasai slaughterhouse into biogas for cooking. To facilitate transport, the firm stores the fuel in recycled cylinders and used tires, reducing even further the environmental impact of the operation. Just to give me a better idea of the "green" potential of his business, the manager told me that this first biogas plant is expected to cut methane emissions by more than 360,000 kilograms per year (the equivalent of almost 2,000 passenger vehicles).
Indeed, "bottled" biogas (biogas compressed into a cylinder) has huge potential in Kenya: Farmers can directly produce it, recycling the waste from their farms; can use it for their cooking needs; and, thanks to the bottling process, can sell the excess on the local market, generating income while saving the environment.
Keekonyokie is a company that began operations in 1982. It runs an abattoir that slaughters about 100 cows per day to meet the meat demand in Nairobi and its environs. In 2008, with the support from GTZ, the company constructed two 20-foot-deep biogas digesters that would help manage the abattoir waste, which was becoming a menace and a health hazard. Within a short time, the biogas being produced from the digesters was more than the company could absorb. The company managers started thinking of compressing and bottling the excess biogas, but they needed support to test the technical and commercial viability of their idea.
When infoDev’s Kenya Climate Innovation Center (KCIC) opened its doors in October 2012, Keekonyokie was one of the first companies to be admitted.
Photo: When disasters strike – like floods, tsunamis, earthquakes or cyclones – they can cause, not just human suffering, but financial damage. Using well-crafted Disaster Risk Financing and Insurance (DRFI) instruments can help ease the impact of a potential financial catastrophe. Credit: World Bank Photo Collection.
When Tropical Storm Sendong battered the Philippines in late 2011, catastrophic flash floods claimed more than 1,200 lives and damaged over 50,000 houses. In addition to the human suffering, disasters like this often have a devastating effect on the budget of vulnerable countries, leading to the reallocation of scarce resources away from development programs to recovery and reconstruction. Governments also need immediate resources for rapid response to minimize post-disaster impacts.
But the Philippines had taken steps to prepare against such disasters. Just months before Sendong made landfall on the island of Mindanao, the government signed a US$500 million contingent credit line with the World Bank. This provided immediate access to liquidity to help finance emergency response and recovery operations.
Yet questions remain about financial protection strategies and instruments such as this contingent credit in the Philippines. For example: Does a government need to establish prior rules for post-disaster expenditure, or does it otherwise risk a slow and poorly targeted response with low impact on poverty and developmental outcomes? Was contingent credit the most appropriate instrument to finance this risk, or should other instruments, such as insurance, have been considered instead of or in addition to it? And fundamentally: Is disaster risk financing and insurance (DRFI) a cost-effective way of reducing (expected) poverty and improving (expected) developmental outcomes?
“Every two seconds, across the world, an area of forest the size of a football field is clear-cut by illegal loggers.” This is not the work of poor people trying to find wood to cook a few grains of rice to sustain life. No. This is the work of the illegal logging mafia - aided and abetted by corrupt government officials - from forest rangers to ministers of government. They do this for greed and with the arrogance of those who have no fear of arrest or prosecution.
The plight of refugees is in the news all the time, mostly as a result of war. But recently, I saw a post in Dot Earth, a New York Times blog, about a documentary called Climate Refugees. It suggests that climate change will lead to massive refugee problems, mainly as a result of flooding. Disasters in New Orleans, Bangladesh and Myanmar offer a glimpse of what might come.
A few years ago I had the pleasure of swimming in a big, heated pool. Outdoors. In winter. It sounds like an unaffordable luxury, and in most places, it is. But in Iceland, you can swim all year round in geothermal swimming pools. Iceland sits on the boundary of the Eurasian and North American tectonic plates, which are slowly pulling apart, giving it extraordinary geothermal resources. Besides year-round outdoor swimming, this renewable resource provides heat, hot water, and electricity.