1. The World Bank’s Experience with Country Environmental Analysis (CEA) Sub-Regional Workshop for GEF Focal Points Europe and the CIS 7-8 March 2007, Istanbul

2. Outline  Background: Evolution of development focus  Objectives of Country Environmental Analysis (CEA)  Building Blocks  Examples of CEA

3. Background  Development community and Bank CDF emphasize: long term vision, country ownership, partnerships, focus on development outcomes good policy based on sound analysis  Need for broader environmental analysis is a part of this vision  Other diagnostic tools available, eg. Poverty and gender assessments – CEA an integrative environmental tool

4. Objectives of CEA  CEA: systematic, country-level diagnostic environmental analysis  Objectives: Integrate environmental considerations into country-level development assistance strategies and programs Open avenues for upstream discussion of key cross-sectoral policy issues behind a country’s environmental challenges Guide capacity building and institutional reform efforts

5. Links with Other Tools and Processes  Draws on work on sustainability and environmental indicators Country led analyses: NEAP, SER, NSSD Work undertaken by development partners

6. Key Building Blocks  State of the environment and priorities for development  Policy analysis  Institutional capacity assessment  Scope: detailed or rapid  Collaboration with country and development partners

7. Examples of CEA  10 completed world wide; first in Belarus and Serbia & Montenegro in 2003; 10 ongoing; Ukraine planned  Policy recommendations and identified WB follow up programs Belarus  Integrated environment into PRSP and CAS Serbia and Montenegro  Contributed to identification and preparation of investment projects Serbia EE Project; Montenegro Tourism Project  Led to institutional change Tunisia decision to establish Ministry of Environment and Sustainable Development

8. Belarus CEA  Objective: To engage government and local stakeholders in dialogue on links between environmental management and underlying policy framework  Content: Critical review of situation in water, energy, solid waste and NRM Poverty dimensions of these areas Macroeconomic linkages and long term sustainability  Recommended: policy actions in support of more environmental sustainability, and investments in above sub-sectors

9. Serbia and Montenegro CEA  Objectives Review the existing situation, identify priority areas for policy changes and consider roles of government, private sector and donors Assess macroeconomic-environmental linkages Provide basis for defining the Bank’s long term involvement in the environment sector

10. Main Trends Identified  Deteriorating trends in water, sanitation and waste management  Threat of coastal zone deterioration in Montenegro  Air pollution hotspots  High energy efficiency  Excessive industrial pollution  Weak environmental management system  Transboundary water and global environment issues  Lack of sustainable forest management

11. Recommendations  Policy measures  Policy and institutional reforms on CZ, biodiversity, EM  Identified areas for immediate investment, eg. Solid waste disposal rural and urban water  Areas for medium term investment: pollution hot spots, energy efficiency, reduce pollution to Danube  Bank supported investment projects

12. Outcomes  Energy subsidies reduced  Water agencies agree on water charges  EU and donor support to environment management capacity building and legal harmonization  Biodiversity strategy  Environment mainstreamed in CAS  Several Bank Operations including two GEF co- financed

13. Conclusions  Built knowledge base on environmental issues and priorities  Established dialogue with various government agencies during study  Clarify Bank’s comparative advantage in meeting the priorities  Establish donor coordination; and  Mainstream environment in sector operation thanks to integrated approach

14. Further Information  http://www.worldbank.org/  Search for CEA