1. Development and Climate Change: A Strategic Framework for the World Bank Group

2. Outline Mandate and Preparation of Paper
Global Consultations – Phase I
Draft Full Paper
Objectives
Guiding Principles
Action Areas
Measuring Progress
Examples of Actions and Indicators
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Chapter 1
Chapter 2
Chapter 3
Link to Phase I Consultations

3. Mandate and Preparation of Paper
Development Committee requested at 2007 Annual Meetings
“comprehensive, strategic framework for World Bank Group engagement” to address climate change
Concept and Issues Paper for 2008 Spring Meetings
Full paper for discussion at 2008 Annual Meetings
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Chapter 1
Link to Phase I Consultations

4. Consultations: Facts & Figures
March – July 2008 on Concept and Issues Paper
Online, face-to-face, videoconferences
71 countries, more than 1,800 individuals
Governments, civil society, UN agencies, indigenous peoples, youth, private sector
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5. Consultations: “Who We Heard From”
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6. Consultations: “Who We Heard From”
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7. Consultations: “What We Heard” - I
Don’t forget core mandate: poverty reduction
Global solution is necessary – leadership required by developed countries
Mixed views on funding for climate change: 1) additionality to ODA; 2) grants vs. loans; 3) relationship to UNFCCC funding mechanisms
Be neutral to UNFCCC negotiating party positions while advocating constructively for developing countries
More focus to supporting adaptation for developing countries
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8. Consultations: “What We Heard” - II
Debate: increasing energy access vs. use of fossil fuels
Don’t overlook importance of healthy ecosystems and biodiversity
More needs to be done on capacity building and knowledge sharing, in partnership with UNDP, UNEP, GEF
Equity issues relating to vulnerable groups, such as indigenous peoples, need attention
Private sector needs
post-2012 certainty for investment decisions
risk mitigation to accelerate new technology investment
speed and certainty in the dissemination of new donor funds
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9. Finalizing the Full Paper
Consultations Phase II
Public comment through September 15
Web-based platform, face - to - face, VC
Board of Directors will consider on September 23, 2008
Development Committee will discuss at IMF/World Bank Annual Meetings on October 12, 2008

10. The Development Challenge
Addressing climate change is critical to development and poverty reduction
Asymmetry of impacts and causes: poorest countries will suffer earliest and most – rich countries made largest contribution
Increasing energy access remains critical
Unprecedented scale of solutions needed for finance, technology, capacity
Unprecedented global cooperation necessary
Leadership by developed countries required as per UNFCCC
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Chapter 1

11. Objectives of the Strategic Framework
Enable the WBG to effectively support sustainable development and poverty reduction at the national, regional, and local levels, as additional climate risks and climate-related economic opportunities arise.
Exploit the WBG’s potential to facilitate global action and interactions among all countries.
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Chapter 3

12. Guiding Principles
Priority of growth, energy access, and attainment of MDGs in developing countries
Neutrality to UNFCCC negotiations
Working in strategic partnerships to achieve global impact
Inform and support the development objectives of operational strategies by WBG entities
Country-led approach
Customized support per client demand
Focus on learning and capacity building
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Chapter 3

13. Six Areas for Action Support climate actions in development processes
Mobilize concessional and innovative finance
Facilitate the development of innovative market mechanisms
Leverage private finance
Accelerate the development and deployment of new technology
Step up policy research, knowledge and capacity building
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Chapter 1

14. 1. Support climate actions in development processes
Strengthen resilience of communities and economies to climate risks
Capture full range of benefits: social, economic, environmental
Take advantage of low carbon growth opportunities
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Chapter 4

15. 2. Mobilize concessional and innovative finance
Learn and share lessons from Climate Investment Funds
Ensure strong IDA performance to provide a platform for supporting climate resilience with new and additional financing
Increase complementarity and effective use of all instruments at WBG’s disposal
Contribute to the development of the global financial architecture and monitoring of financial flows to developing countries
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Chapter 5

16. Climate Investment Funds
Transformational impact at scale
US$6 billion target
Clean Technology Fund
contribute to demonstration, deployment, and transfer of low-carbon technologies
Strategic Climate Fund
pilot new development approaches or scale-up activities aimed at a specific climate change challenge or sectoral response through targeted programs
Pilot Program for Climate Resilience
Equitable governance and decision making
Sunset clause
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Chapter 5
Link to

17. 3. Facilitate the development of innovative market mechanisms
Deepen reach of carbon market
Increase benefits to local communities
Increase customized application of climate risk insurance
Put capital markets to work for climate financing
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Chapter 6

18. 4. Leverage private finance
Continue improving investment climate in developing countries
Support enabling environment for EE and RE
Use IFC, MIGA and IBRD guarantees more effectviely
Package traditional instruments with climate finance
Use customized applications to support underserved clients such as municipalities and SMEs
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Chapter 7

19. 5. Accelerate the development and deployment of new technology
Scale up CGIAR work on agriculture technology innovation
Maximize opportunities provided by Clean Technology Fund and GEF/IFC Earth Fund
Support clean technology development:
Focus on creating knowledge base to facilitate countries’ decision making
IFC preparing strategy for investing in clean technologies
The Bank is working to adapt successful innovation models from other sectors
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Chapter 8

20. 6. Step up policy research, knowledge and capacity building
World Development Report on climate change (Nov 2009 release)
Work with UN partners to strengthen data collection, monitoring and reporting on progress with global climate action
Build country-specific knowledge on additional cost of adaptation and low carbon growth
Develop methods to analyze climate risks and GHG emissions at the project level
Expand training and knowledge sharing on climate – development linkages
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Chapter 9

21. Measuring Progress Dual-track approach for results framework
Monitor key actions, deliverables, indicators from FY09 – FY11
Develop comprehensive results framework over next two years through a consultative process
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Chapter 10

22. Examples of Actions and Indicators 2009 ~ 2011
Screen for climate risk in hydropower and other water investments with long life spans
Screen for energy efficiency opportunities, starting with energy projects
Operationalize Forest Carbon Partner Facility and Carbon Partnership Facility
Capitalize and operationalize Climate Investment Funds
Increase use of climate risk insurance products
Increase financing for EE and RE by average of 30% per year
Increase support to sustainable forest management, sustainable agriculture and food production, sustainable transport and urban development investments
Improve monitoring and reporting of financial flows for climate action
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Annexes

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We Are Listening
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