News

Draft World Bank Strategy for Climate Change and Development Available for Public Comment

Climate Change and Development 21 August 2008: The first phase of consultations on a

Strategic Framework on Climate Change and Development for the World Bank Group

(WBG) has concluded with the release of a draft document entitled “Development

and Climate Change - A Strategic Framework for the World Bank Group.” The

document will be finalized, taking into consideration comments received through

15 September 2008, and submitted to the Board of Directors, on 23 September

2008, and to the Development Committee, during the 2008 IMF/World Bank Group

Annual Meeting in October 2008.

The primary objective of the Strategic

Framework is to enable the WBG, through its main institutions, the

International Finance Corporation, the Multilateral Investment Guarantee Agency

(MIGA), the International Development Association (IDA), and the International Bank

for Reconstruction and Development (IBRD), to perform its core functions of

promoting sustainable development and poverty reduction within the new realm of

a changing climate. Access to reliable energy services and adaptation to

climate variability and change are among the priority areas proposed by the

Strategic Framework. The draft Framework encompasses activities under six

inter-related action areas, corresponding to some of the key items in the Bali

Action Plan:

  1. Support climate actions in country-led development processes;

     

  2. Mobilize concessional and innovative finance; 3. Facilitate the development of

    innovative market mechanisms;

     

  3. Leverage private sector finance;

     

  4. Increase

    support to technology acceleration; and

     

  5. Step up policy research, knowledge

    and capacity building.

     

According to the document, the WBG expects to increase

lending to energy efficiency and new renewable energy by 30% a year, with the

share of low-carbon projects rising from 40% in fiscal 2006–08 to at least 50%

in fiscal 2011. It also contains a summary of major initiatives to be supported

by the WBG, including:

  • Help some of the most vulnerable countries increase

    resilience to climate risks with new adaptation financing and good performance

    of IDA15;

     

  • Enhance development effectiveness of its operations by screening

    for climate risk in hydropower and major water investments with long life spans

    and screening for energy efficiency opportunities starting with energy projects;

     

  • Operationalize, execute, and share lessons from the Climate Investment Funds,

    Carbon Partnership Facility, and Forest Carbon Partnership Facility, and work

    with UN and OECD partners to improve monitoring of climate-related finance and

    its “additionality;”

     

  • Promote packaging of its development finance instruments

    with Carbon Finance, the Global Environment Facility grants, and the Climate

    Investment Funds, and the customized application of climate risk insurance

    products;

     

  • Pilot new initiatives to support clean energy technology

    development and dissemination;

     

  • Facilitate global dialogue by launching the

    World Development Report on Development and Climate Change in fiscal 2010; and

     

  • Enhance the knowledge and capacity of clients and staff to analyze and manage

    development-climate linkages, including methods for estimating the costs of

    adaptation and undertaking carbon analysis.

[Climate Consult]