1. Tracking activities with Climate Co-benefits – MDB experience October 2011 www.worldbank.org/climatechange

2. Context: Why a tracking system Increasingly reliable, comprehensive and transparent reporting is needed to demonstrate that new climate finance instruments are not introduced at the expense of those targeting other objectives Exact and comparable figures on additional contributions to fund incremental expenses are not possible to ascertain at low cost. Need to continue to develop and improve Rio Markers 2

3. What is being tracked at WB ? Tracks inputs (dollars of investments), as a percentage share of costs, for projects in the World Bank’s portfolio: that provide direct climate adaptation benefits that provide direct climate mitigation benefits The shares for mitigation and adaptation are independent of each other and are made using a “without project” situation baseline. The system does not measure nor report the amount of avoided carbon emissions nor increases in resilience that these investments yield. Tracks lending and non-lending operations. 3

4. How is the tracking done at WB? Project managers will apply expert judgment to assign the percentage share of costs based on guidance that includes step-by-step instructions, definitions and typology of WB activities with climate co-benefits. (Time requirement 5-15 minutes.) Data will be reviewed centrally at time of project approval for quality assurance and control. All assessments are carried out at the project sub-component level, the lowest level for which costs are available. 4

5. 5 Examples of sector-specific guidance WD: Flood Protection Activities with Adaptation co-benefitsActivities with Mitigation co-benefits Retain or reestablish mangrove forests and wetlands as protection against floods. Construct or strengthen polders, dykes, and embankments to protect against added risks from CC&CV. Incorporate CC&CV in design standards for drainage systems. Reestablish mangroves and floodplains with carbon sequestration properties. WS2: Sewage (Wastewater Treatment and Disposal) Activities with Adaptation co-benefitsActivities with Mitigation co-benefits Reduce GHG emission (methane and nitrous oxide) from wastewater. Reduce energy consumption during wastewater treatment (e.g. from activated sludge to upflow anaerobic sludge). Capture or reuse of the biogas produced at sludge digestion. WC: Water Supply Activities with Adaptation co-benefitsActivities with Mitigation co-benefits Demand side management to respond to CC&CV by reducing water consumption or increasing water use efficiency. Supply side management to respond to CC&CV by expanding supplies, reducing water losses, or improving cooperation on shared water resources. Reduce energy intensity of existing water supply systems (e.g. replacing pumps). Reduce per capita water consumption using demand-side interventions (e.g. household water, shower, toilet, and dishwasher). Change production techniques to reduce water consumption per unit of output produced in industry or commerce.

6. Example: Sample Project to be coded …. a $100 million Water supply & sanitation project Subcomponent(Mil $) 1.Rehabilitate existing stormwater drainage system$40 2.Reestablish mangrove forest for flood protection$10 3.Rehabilitate existing sewage system$33 4.Reuse of biogas produced at sludge digestion$3 5.Pilot water supply expansion & capacity building$10 6.Project Management/Capacity building$ 4 Total all subcomponents$100 6

7. Analyzing the project based on guidance: Project Id Project title Sector Code Sector Allocation (%) Adaptation co-benefit (%) Mitigation Co-benefit (%) Notes P9999D. WSS Project WD5010020 Rehab stormwater drainage ($40m) -- 100% adaptation, Reestablish mangrove ($10m) -- 100% adapt & 100% mitigation WS36 0 8 Reuse of biogas produced at sludge digestion ($3m): (100% mitigation) BW 8 00 WC 4 00 7 Adaptation co-benefits = $50 million Mitigation co-benefits = $13 million

8. What is recorded in the system: 8 For each economic sector that is impacted by the project: share of project commitments allocated to impacted sector. share of allocation to impacted sector that contribute to adaptation co-benefits share of allocation to impacted sector that contribute to mitigation co-benefits System will aggregate data from projects to the portfolio level to report Amount of commitments that provide adaptation co-benefits Amount of commitments that provide mitigation co-benef its

9. Implementation of coding system By end of calendar year 2011 Detailed methodology and approach finalized Initial results available for approvals in FY11 Implementation in 2012 Staff training Integration of coding into the Bank data systems Fully operational – July 2012 9