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This Country Climate and Development Report (CCDR) explores the challenges and opportunities of improving the alignment of Egypt’s development goals with its climate ambition. The CCDR offers a set of policy options and investment opportunities that, if implemented within five years, can deliver short-term benefits in selected sectors while also creating momentum toward important long-term benefits. The options identified in this report provide: Cost-effective adaptation approaches to reduce the negative impacts of climate change; Policy interventions to improve efficiency in the use of natural resources, and complement the creation of fiscal space to finance projects that reduce the vulnerability of people and the economy to climate shocks; Actions that can help avoid carbon lock-in through low-cost policy changes; Interventions to strengthen the country’s competitiveness while reducing negative externalities (such as pollution) and incentivize Egypt’s move towards a low carbon growth path in a manner consistent with its development objectives. Overall, the report identifies opportunities to reduce inefficiencies, manage risk, and strengthen the foundation for increased private sector participation.

The Peru Country Climate and Development Report (CCDR) provides analysis and recommendations on integrating the country’s efforts to achieve economic development with the pursuit of emission reduction and climate resilience. The CCDR explores opportunities and trade-offs for aligning Peru’s development path with its recent commitments on climate change. Peru is highly vulnerable to climate change and needs urgent adaptation action. Peru can benefit from decarbonization policies, thanks to its mining, forestry and agriculture, and renewable energy resources. Peru has many opportunities to develop and implement comprehensive climate policies that also increase productivity and reduce poverty. A low-carbon, resilient development for Peru would require substantial institutional reforms, in addition to public and private investments.

The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.

Climate change poses major risks for development in the Philippines. Climate shocks, whether in the form of extreme weather events or slow-onset trends, will hamper economic activities, damage infrastructure, and induce deep social disruptions. Adaptation to the risks of climate change, including both extreme events and slow-onset problems, is thus critical for the Philippines. Policy inaction would impose substantial economic and human costs, especially for the poor. Adaptation cannot eliminate the costs of climate change, but it can substantially reduce them. Many adaptation responses also contribute to mitigation; conversely, many mitigation measures generate local co-benefits, such as reduced air pollution. Although the Philippines is a relatively low emitter of greenhouse gas (GHG), it can contribute to global mitigation efforts through an energy transition, including a shift away from coal. The investment costs of such adaptation measures and an energy transition are substantial but not out of reach. The Philippines Country Climate and Development Report (CCDR) comprehensively analyzes how climate change will affect the country's ability to meet its development goals and pursue green, resilient, and inclusive development. The CCDR helps identify opportunities for climate action by both the public and private sectors and prioritizes the most urgent development challenges impacted by climate change in the Philippines.

The Iraq Country Climate and Development Report (CCDR) is a core WBG analytical product. The report focuses on specific analytical components that are critical to addressing Iraq's most pressing development needs and climate challenges simultaneously. The Iraq CCDR advocates for energy transition as a lever to address Iraq’s deep energy sector's inefficiencies and cope with the vulnerabilities of the water-agriculture-poverty nexus. The Iraq CCDR presents a set of prioritized and sequenced policy recommendations, which aim to accelerate Iraq's green, resilient and inclusive development.

Ghana has achieved major development gains over the past three decades, but progress has slowed and there are causes for concern going forward. Ghana sought to fuel its development by leveraging markets, but debt sustainability is a concern, compounded by crises. Ghana’s economic and human development is also vulnerable to climate change and climate-related shocks. While climate change cannot be solved by any single country, local actions can help manage physical and transition risks as well as bring large opportunities. This report explores the ways in which Ghana can pursue its development objectives while considering the challenges of climate change and the opportunities from the transition. It sets the stage in chapter 1 by documenting the various ways in which climate and development interact in Ghana, emphasizing that climate action can support development. Chapter 2 reviews Ghana’s climate commitments and institutional readiness to carry them out. Chapter 3 lays out concrete actions that Ghana can consider to boost its resilience and productivity in key sectors while reducing its emissions and associated externalities. Chapter 4 models some of these investments and policies to assess their overall economic and social effects and explores financing options as well as ways to crowd in the private sector. Chapter 5 concludes by laying out priorities for the government to consider that are achievable and can yield development and climate payoffs simultaneously.

South Africa's ambition is to build a more inclusive, resilient and sustainable economy. This ambition depends on the extent to which the country is able to shift from its heavy dependence on coal to low-carbon activities and to address the growing risks presented by climate change. This low-carbon path and adaptation must be people-centered, creating jobs and protecting the poorest in the most unequal society in the world. All of these require policies and actions with inevitable tradeoffs and some synergies. The South Africa Country Climate and Development Report (CCDR) provides analysis and recommendations on integrating the country’s efforts to achieve rapid growth, higher employment and lower inequality with the pursuit of a low-carbon and climate resilient development path. The CCDR provides a summary of key challenges and opportunities for the country's transition to a low-carbon economy in a just way. The report also provides assessment of what it takes (in terms of technical, financial and institutional and governance framework) for South Africa to achieve net-zero emissions by 2050 without undermining its development ambitions. The report examines ways in which South Africa could adapt and build resilience to a changing climate. Finally, the report provides priority packages of policy recommendations that South Africa could implement to achieve its just transition to a low-carbon economy and society by 2050.

The Rwanda CCDR highlights key interventions that are needed in Rwanda to strengthen climate resilience in the context of country’s development priorities and its commitments under the Paris Agreement. The CCDR finds that Rwanda’s unconditional adaptation and mitigation commitments (i.e., the actions the country plans to implement through 2030 using existing and planned domestic and external financial resources) would substantially dampen the shocks to GDP resulting from increased weather variability. Unconditional NDC investments would boost industrial output and employment during project implementation compared to their baseline levels. The CCDR also finds that conditional actions boost the capital stock above the baseline by more than 4% on average in the late-2020s and by 1% towards mid-century. The additional climate investments in agriculture, energy, and infrastructure simulated in the CCDR could also accelerate the pace of structural transformation. Considering the current global and national fiscal context, finding the right balance between development and climate action will be instrumental for Rwanda to sustain its impressive growth rates and deliver its national development plan Vision 2050. The CCDR offers recommendations organized by priority areas, where sector-specific interventions and projects are presented.

Landfill gas (LFG) management can help mitigate greenhouse gas emissions and contribute to the overall safe operation of a landfill, sometimes simultaneously generating revenue. However, financing these systems can be a challenge, particularly in low-resource settings. Recognizing that landfill emissions are expected to rise into the foreseeable future, this report outlines a variety of ways that city governments, private landfill owners, or other project developers finance LFG management systems that mitigate these emissions. It is intended to offer policy-makers and practitioners an overview of financing models that have been used around the world and insights from existing projects, including key enabling conditions and risk mitigation strategies.

Armenia and Georgia are taking the climate change agenda seriously and contributing to efforts for mitigating global climate change through various ways, including preparation of low-carbon development strategies for their future economic growth. The improvement of energy efficiency is one of the key elements of the low-carbon development strategies. This study develops a methodology to estimate a marginal abatement cost curve for energy efficiency measures and applies it to the building sector in both countries. The study finds that among the various energy efficiency measures considered, the replacement of energy inefficient lightbulbs (incandescent lamps) with efficient lightbulbs is the most cost-effective measure in saving energy and reducing greenhouse gas emissions from the building sector. Most energy efficiency improvement options considered in the study would produce net economic benefits even if the value of reduced carbon is not taken into account.

The objective of this transport component of the broader Africa Climate Business Plan (ACBP) is to begin to mainstream climate benefits into the World Bank’s transport program for Sub-Saharan Africa, the better to assist African countries in bringing their climate change efforts to scale. It is a first step towards mainstreaming responses to the climate challenge into transport programs in Africa, and it represents the first time the Transport & ICT GP has produced a work plan for its investment and technical assistance operations that takes into account the content of countries’ Nationally Determined Contributions (NDCs) and attempts to align World Bank support to the goals stated therein. The transport work plan under this Africa Climate Business Plan will consist of up to $3.2 billion in investments and technical assistance over the 2016-2020 period – including $2.8 billion in World Bank funds. Those investments will help to make progress on two strategic objectives: (1) improving the resilience of African transport infrastructure to climate change by defining four pillars of resilient transport; and (2) improving the carbon-efficiency of transport systems in Sub-Saharan Africa.

In support of the Climate Change and Low Carbon Green Growth Program of Romania (LCGGP), the World Bank has prepared the current report with the aim of helping the Romanian Government to operationalize the strategic path chosen by the country for implementing its National Climate Change and Low Carbon Green Growth Strategy 2016-20302 (NSCC) and the associated 2016-2020 Action Plan for Climate Change (APCC). This includes some relevant institutional arrangements and Monitoring and Evaluation (M&E) activities for existing Climate Change (CC) related policies and measures, notably those derived from the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, plus the requirements for European Union (EU) Member States regarding the monitoring and evaluation of the EU-level climate and energy package and the Europe 2020 goals for a smart, sustainable and inclusive growth. It was recommended that the Romanian government should build upon current obligations for M&E of public policies, whilst recognizing that the M&E system initially established for the NSCC and APCC for Romania must not be considered as static, but rather as an on-going continuum that will evolve, expand and improve over time. The report highlights some key weaknesses in institutional capacity for CC-related M&E and identifies several sector-specific examples of areas for improvement. The report usefully reviews international good practices for the M&E of CC strategies and action plans under the headings of General good practice; Green Growth good practices; Special considerations for CC adaptation (including the selection of indicators), and; European examples (including short case studies on relevant M&E practices from Germany and France). In order to facilitate the necessary learning processes for policy-makers and other key stakeholders it is recommended that the Romanian government adopts a “theory-based” approach (in conjunction with the OECD DAC criteria) as the evaluation framework for the NSCC and APCC. The theory-based approach follows an iterative process of design, evaluation, and redesign based on lessons learned about whether specific interventions are successful or not, why they succeeded or failed and how they can be improved. The report concludes with numerous additional practical recommendations for development of a simple, affordable and cost effective M&E system for the NSCC and APCC. These recommendations are grouped into four categories: (i) general recommendations; (ii) recommendations for improving institutional arrangements; (iii) recommendations for developing a solid evaluation framework; and (iv) recommendations for reporting. Finally, to ensure a robust framework, the M&E and Reporting system should clearly define goals, indicators, responsibilities and communication strategies. It should facilitate continuous learning by policy-makers and other key stakeholders in order to underpin the long-term development of the knowledge and understanding needed to better design, implement and deliver future CC strategies and action plans for Romania.

This paper builds on the findings of an earlier unpublished discussion paper titled ‘designing a model for networked carbon markets’, with its objective being to describe key elements of the mitigation value assessment process. The outcome of this paper will inform a model for the Networked Carbon Markets concept, to be prepared at a later date. The following section two acknowledges the subject matter of the NCM initiative, namely the diverse and heterogeneous trading schemes and other carbon pricing mechanisms that are being put in place by jurisdictions around the globe. As this is the subject of another World Bank paper, only a brief reference is included. Section three sets out a conceptual framework within which to consider the key elements described in the glossary of terms, addressed in section four and annexure ‘C’. This section also looks at different transaction scenarios, introducing the concepts of an international transaction unit and an index. Section five turns attention to the types of institutions that might be suitable to participate in the mitigation value assessment process, providing practical examples, and considering the types of expertise and tools those institutions might leverage. Section six considers options for regulatory supervision of the MV assessment process. Section seven looks in more detail at the relationship between mitigation value and the compliance value that might be attached to carbon assets and, in so doing, considers the role and function of the settlement platform. This section also considers the feasibility and potential benefits of an index. The concluding section eight looks at the next steps that might flow from this work.

The case for climate action has never been stronger. Current weather extremes, including storms, floods and drought, affect millions of people across the world. Climate change is putting water security at risk; threatening agricultural and other supply chains as well as many coastal cities. The likelihood of severe pervasive and irreversible impacts will grow without action to limit and reverse the growth of GHG emissions globally. Last year’s Intergovernmental Panel on Climate Change (IPCC) report makes clear the overwhelming need to take action now on climate change and that the costs of inaction will only rise. The challenge is to decarbonize our economies by 2100 with action in the next decades being critical. The choices made by government, the private sector, and civil society as part of the transition to a decarbonized economy will determine the extent of future climate impacts but also provide an opportunity to unlock investment and build an innovative, dynamic low-carbon economy.

Climate change is a core development challenge in Tanzania, and the potential costs of inaction are significant. Current climate variability (including extreme events such as droughts and floods), already leads to major economic costs in mainland Tanzania and in Zanzibar. Individual annual events have economic costs in excess of 1 percent of GDP, and occur regularly, reducing long-term growth and affecting millions of people and livelihoods. Future climate change could lead to large economic costs, equivalent to a further 1 to 2 percent of GDP per year by 2030. Given this context, there is a clear need for strong and sustained effort by the government to help establish a growth pathway for the country that is resilient to climate variability and able to adapt to future change, as well as help Tanzania take advantage of external and domestic finance opportunities for sustained action on climate risks. This policy note responds to a request by the United Republic of Tanzania for technical assistance on next steps for implementing the National Climate Change Strategy (NCCS) and Zanzibar Climate Change Strategy (ZCCS). With strategies in hand, both mainland Tanzania and Zanzibar are at a crossroads where strategic actions have been identified, yet not yet supported with resources or adequate frameworks for implementation. Development partners are active in financing and supporting climate change activities in general, but more than one year after its adoption, a unified approach in support of the NCCS has yet to materialize. Tanzania has requested guidance for mobilizing additional funds, using funding sources more strategically, and delivering results on the ground.

This paper presents first concepts and insights on an International Carbon Asset Reserve. In particular, it explores how different design options can support a range of networked carbon pricing efforts. The report provides an overview of key risks in carbon markets, highlights the benefits of pooling risks on an aggregated scale, and identifies potential design options and structures for an international carbon asset reserve. The paper contributes to the wide effort to promote a long-term price on carbon and carbon market stabilization, comparability, and networking.

This joint report on MDB Climate Finance captures a particular context of activities that Multilateral Development Banks (MDBs) carry out in developing and emerging economies. The context is built on the premise that development finance is being provided in a world shaped by climate change. This is the fourth edition of the Joint Report on MDB Climate Finance. The report covers financing for climate change mitigation and adaptation projects and activities, in developing and emerging economies, committed by this group of MDBs in 2014. The report contains the following new information, not presented in previous years: overview of MDB climate finance from 2011 to 2014; information about the financial instruments used by MDBs for climate finance; and additional thematic regional coverage, including small island states and least developed countries. This report has two main sections. Section 1 contains total MDB climate finance numbers for 2014, broken down by adaptation and mitigation and by sector and geographic region, as well as MDB climate finance since 2011. Section 2 provides explanations on the MDB joint approach: definitions, geographical coverage, and sectoral breakdown. It also contains a guidance section and provides case studies to illustrate the MDB adaptation and mitigation finance tracking approach. Annexes A to C provide additional information and numbers on A) Finance with dual, adaptation and mitigation, benefits; B) Financial instruments used by MDBs for climate finance; and C) MDB mitigation finance outside of the Joint Methodology. This report does not cover public or private capital mobilized by MDB climate finance. A parallel group is working on the development of a harmonized methodology to be used toward that end.

The Government of Vietnam (GoV) has conducted a Climate Public Expenditure and Investment Review (CPEIR) with the support of the World Bank and the United Nations Development Programme (UNDP). The review examined Vietnam’s policies and climate change expenditure for the period 2010–2013 from five ministries (MONRE, MOIT, MARD, MOC, and MOT) and three provinces (Bac Ninh, Quang Nam and An Giang). To assess the public expenditure and improve alignment with policy goals and targets, a Typology of Climate Change Response Expenditures (TCCRE) was developed. This typology was used to classify the government’s spending on its climate change response into three pillars: (i) Policy and Governance (PG), (ii) Scientific, Technological and Societal Capacity (ST), and (iii) Climate Change Delivery (CCD). The typology also examined how expenditure within each pillar and in each sector is relevant to Vietnam’s climate change response (CC-response). Since roughly 70 percent of the total investment spending is allocated at the provincial level, the analysis does not represent the totality of Vietnam’s CC-response, but still offers substantive insight into spending, in particular through a comprehensive focus on the five key line ministries. Based on its findings, the CPEIR proposes solutions for how to accelerate Vietnam’s CC-response through the state budget and informs decision makers on readiness for scaling up the CC-response while increasing coherence across sectors’ and provinces’ policies. The CPEIR report is released at an opportune time, allowing the review’s recommendations to inform the formulation and implementation of the SEDP 2016–2020, and enabling/ promoting the GoV’s post-2015 climate change and green growth response program.

Climate-related hazards have adverse effects on national growth and poverty reduction, affecting the poor and several sectors of the economy simultaneously. At its current rate of growth, Vietnam will become a major global greenhouse gas (GHG) emitter. The Government of Vietnam initiated the Climate Public Expenditure and Investment Review (CPEIR) to advance an understanding of the current policy and institutional architecture as well as to assess current spending on its climate change response to help guide future climate change-related expenditures and policy implementation. The report has three components: (i) a policy, institutional and methodological review; (ii) an analysis of climate change response (CC-response) spending in five line ministries and three provinces; and (iii) recommendations and an action plan. The main goal of the CPEIR is to provide an overview of the current CC-response activities and formulate recommendations for how to improve priority setting, capacity building, coordination, expenditure management, and mainstreaming of CC-response strategies into socio-economic development plans.

According to the United Nations population fund, the world is undergoing the largest wave of urban growth in history, with more people now living in cities than in rural areas. Cities are also responsible for a high proportion of global carbon emissions, which are the main driver of anthropogenic climate change. By taking the lead on low carbon development, cities have the opportunity to engage in an important dialogue about sustainable development, directly address local issues, and contribute to the reduction of greenhouse gas (GHG) emissions. Low carbon development strategies allow cities to position themselves as major players in climate change mitigation, as well as set an example for the development of national emission reduction policies. The systematic approach offered by a low carbon city development program (LCCDP) enables a city to overcome the barriers faced in single project implementation and pursue an integrated low carbon pathway. It provides a common framework to identify, implement, and measure low carbon interventions that will not only contribute to lower emissions, but will also address urban development needs. The LCCDP guidebook helps orient cities to design and implement an LCCDP that complies with the LCCDP assessment protocol, which is a new protocol based on existing, internationally recognized standards for systems design, and GHG accounting. The LCCDP assessment protocol consists of a set of standardized requirements developed to ensure that LCCDPs will achieve their targets and objectives when implemented. Thus the guidebook aims to assist the reader through the process of designing and implementing an LCCDP.

The new environment strategy for the World Bank Group lays out an ambitious action agenda that seeks to respond to calls from our client countries for a new kind of development path, one that supports growth while focusing more on sustainability and ensuring that the environment is a key enabler for green, more-inclusive growth. This strategy recognizes the importance of our convening power, access to policy makers, analytical work, development of new financial tools, and smart risk management as well as a portfolio of investments to accelerate solutions. Spreading these solutions by sharing knowledge, demonstrating success, and working in partnership, mobilizing action, and leveraging financing will be critical to our success.

Mitigating climate change while addressing development needs will involve a massive scale-up of investments in Renewable Energy (RE) and Energy Efficiency (EE). Most of these climate investments will come from the private sector, which will be the main driver of low-carbon growth in both developing and developed countries, provided that countries have the right investment climate for climate investment. The enabling environment for climate investment in each country depends on a variety of factors. These include macroeconomic determinants such as a functioning bureaucracy and banking system; as well as a narrower set of policy determinants such as renewable energy targets, mandatory standards, preferential power tariffs, waiver of import duties, and other fiscal incentives. While the exact mix of policies, regulations and incentives will depend on country-specific circumstances, the fact that they exist sends the right signal to climate investors, by providing them with legal certainty and lowering their costs and risks. Policies, regulations and incentives also help to level the playing field for climate investors in the face of market realities that tend to favor the continued use of carbon intense energy sources, such as support for fossil fuels and the high costs of renewable energy technologies.

Much of the world’s built environment is found in urban areas, and cities are thought to be responsible for up to 70 percent of global greenhouse gas (GHG) emissions, and up to 80 percent of primary energy demand. Most of the energy consumed in the world fuels urban industry, powers urban homes and offices, and moves people within and between cities. This paper is about climate change mitigation in cities, and will primarily look at how local authorities can provide a higher quality of life for their citizens while at the same time achieving higher resource efficiency. It will also look at how climate change mitigation measures could help boost local employment and drive economic growth. The focus will be on buildings (residential, commercial, and office), public services infrastructure (water, sewage, solid waste management, and public lighting), and urban form. Other topics of interest in this respect, such as transport and industrial production will be discussed tangentially in relation to the other topics (e.g. urban form influences and is influenced by transport patterns and strategies).

This note examines how to maximize the benefits from the use of market instruments in support of developing countries' low-emission development priorities. First, it briefly surveys the current state and trends of the carbon market, highlighting the main achievements of carbon finance over its decade-long history. Second, it reviews updated scenarios of the scale of future carbon markets and associated financial flows, in light of developments in climate negotiations and domestic markets. Finally, it identifies the necessary steps to scale up carbon market flows in future, on both the demand and supply sides, including the reform of existing mechanisms, and innovation to broaden the scope, scale and reach of carbon markets. The most important determinant of carbon offset market flows to developing countries is clearly the level of international mitigation targets: the more ambitious the targets the greater the scope for such flows. Developed countries can also encourage flows by increasing supplementary limits, which are the proportion of mitigation targets that can be met by purchases from developing countries. Finally, there remains a considerable need for innovation, awareness-raising and capacity building in public and private institutions in developing countries, to increase their participation in the carbon market and build and enabling environment for low-emission development.

This note, prepared as background for the G20 submission, explores the potential for Multilateral Development Banks (MDBs) to increase the volume of climate financing by leveraging and intermediating resources, through two main avenues: leveraging shareholder capital through the MDBs non-concessional windows, by raising debt from capital markets to finance climate investment; and mobilizing and 'pooling' concessional flows to support climate investment beyond the MDBs own balance sheets. The note is organized along these two lines, with the aim of providing some insights into the feasibility for MDBs to mobilize resources to leverage a significantly larger volume of climate financing assistance. The next section of this note provides information on how MDBs can support concessional flows to climate investments through pooling of external concessional flows beyond traditional balance-sheet capital. Leveraging shareholder capital and mobilizing and-pooling concessional flows are two potential avenues through which MDBs can leverage and intermediate resources to ultimately increase the volume of climate financing. The experience gained by the MDBs and their clients and donors from implementing these financing arrangements should provide helpful lessons for the development community as it considers how to develop the green climate fund and other future climate change initiatives.

The purpose of this paper is to summarize the challenges and the practical successes that a selected number of countries are experiencing in moving towards 'climate-smart' agriculture while also meeting the food requirements of a growing population, broader economic development and green growth objectives. It complements papers prepared in 2010 on technologies and policy instruments, research, and farmers' perspectives. The paper is also intended to provide a broad country perspective to two additional papers produced for a meeting of African Ministers of Agriculture which took place in Johannesburg in September 2011. The main conclusion is that a number of countries have made impressive progress in integrating 'climate-smart agriculture' into broader development and growth programs. Several countries are supporting policy measures and programs to conserve soil and moisture while enhancing productivity and competitiveness, and are addressing the particular concerns of drought-prone semi-arid areas. They are improving agricultural water management and watershed management, and addressing sea-surges, salinity and coastal flooding. Some countries are also including climate-smart agriculture as a core element in broader green growth agendas. The private sector has a key role to play in climate-smart agriculture, especially where the enabling environment has been favorable. Achieving climate-smart agriculture needs an integrated approach, tackling productivity and food security, risk and resilience, and low carbon growth together, but integration and institutional coordination remains a challenge in many countries.

Thailand needs to avoid the high-carbon growth path of many developed countries and, instead, take a low-carbon growth path. A green low-carbon growth path is in Thailand's own interest as it can simultaneously tackle local environmental degradation, global climate change, and energy security challenges. It can also position Thailand as a regional leader in green, sustainable growth. Green low-carbon growth in Thailand could focus on the following four pillars: 1) maintaining rapid economic growth while adjusting the country's economic structure toward a less energy, and carbon-intensive economy; 2) achieving greater urbanization while shifting toward green livable low-carbon cities; 3) meeting the huge thirst for energy while transforming the energy sector toward one of high energy efficiency and widespread diffusion of low-carbon technologies; and 4) improving quality of life while shifting toward a resource-efficient and sustainable lifestyle.

Nearly half the world's population and about 81 percent of Sub-Saharan African (SSA) households rely on wood-based biomass energy (fuel wood and charcoal) for cooking. This degree of reliance is far greater than in any other region. While the use of biomass fuels in China, India and much of the developing world has peaked or will do so in the near future, SSA's consumption will either remain at very high levels or even grow over the next few decades. Population growth, coupled with strong urbanization dynamics and relative price changes of alternative fuels, offset the important achievements made over the past decade by significant investments in energy access, rural and urban electrification, off-grid energy developments, and the promotion of alternative energy sources. With increasing economic development, the demand for energy is increasing as well and consumers depend on a broader portfolio of energy sources to satisfy growing energy needs. While electricity and other energy sources are needed to satisfy additional energy needs emerging with economic development, a vast majority of Sub-Saharan African consumers continue to use wood based biomass energy for cooking. Especially electricity is not regarded a suitable alternative for cooking given equipment and use costs. Biomass burning in cook stoves also emits black carbon (BC) as part of visible smoke, which is particulate matter that results from incomplete combustion. Climate science now views BC as the second or third largest warming agent after carbon dioxide, alongside methane. In the case of biomass cooking, the warming effects of BC and the cooling effects of organic carbon that is also emitted during the burning appear to be closely balanced. Given the present uncertainty about the net impact, additional research is currently underway. Black carbon has also an impact at the regional level: it accelerates melting of ice and snow, and contributes to regional pollution which can alter climatic conditions and precipitation patterns over a wide area. This paper advocates that any policy reform should entail a combination of clear rules, transparent enforcement, strong incentives and awareness-creation/capacity development. Key stakeholders and the general public need guidance by way of information campaigns, training, and demonstration projects to ensure that awareness-deficits or false perceptions do not curtail policy implementation. The bureaucratic and administrative barriers e.g. overcomplicated forest management planning requirements, complex fiscal systems and land tenure procedures may inhibit development and thus warrant critical reflection. The regulatory framework needs to integrate externalities in order to promote adequate pricing of charcoal, and thus enhance regional economies.

Since 2005, a growing number of vulnerable communities and nations have used the human rights lexicon to argue their case for an urgent and ambitious response to climate change. The purpose of this Social Development Department Working paper is to examine the emergence of a new discourse linking climate change and human rights, and to assess its social and political implications, particularly as they relate to development practitioners. The scope of this paper is to explore what relevance this new discourse has on what David Kennedy calls the 'vocabularies, expertise, and sensibilities' of development practitioners (Kennedy 2005). The methodology for this paper involved interviews with academics and policy practitioners who have shaped this emerging discourse; a wide-ranging literature review of texts relevant to the fields of development, climate change and human rights; discussions with development professionals who have the daily responsibility of operationalizing approaches to reducing vulnerability and building resilience; and finally drawing upon the author's own experience leading the Maldives' government's initiative on the Human Dimensions of Climate Change and as a consultant within the Social Dimensions of Climate Change Cluster of the World Bank's Social Development Department. It is important to stress that this paper is not a legal piece. Human rights are as much about ethical demands, calls for social justice, public awareness, advocacy, and political action as they are concerned with legal norms and rules. Sen has pointed out a 'theory of human rights cannot be sensibly confined within the juridical model in which it is frequently incarcerated' (Sen 2004, 319). Consequently this piece will focus on the wider, political economy aspects of the interface between human rights and climate change. It is further appropriate to state that this is not an advocacy piece. The paper deliberately avoids being normative or prescriptive in recommending a human rights-based approach to developing climate change operations. It does examine why vulnerable populations chose to embrace this approach, why they continue to view it as a transformative strategy, and what some of the successes and challenges have been.

Cities face significant impacts from climate change, both now and into the future. These impacts have potentially serious consequences for human health, livelihoods, and assets, especially for the urban poor, informal settlements, and other vulnerable groups. Climate change impacts range from an increase in extreme weather events and flooding to hotter temperatures and public health concerns. Cities in low elevation coastal zones, for instance, face the combined threat of sea-level rise and storm surges. The specific impacts on each city will depend on the actual changes in climate experienced (for example, higher temperatures or increased rainfall), which will vary from place to place. Climate change will increase the frequency at which some natural hazards occur, especially extreme weather events, and introduce new incremental impacts that are less immediate. However, few climate impacts will be truly unfamiliar to cities. Cities have always lived with natural hazards, such as earthquakes, tsunamis, hurricanes, and flooding. In some situations, cities will experience an increase in the frequency of existing climate-related hazards, such as flooding. Climate change considerations can be integrated with disaster risk reduction (DRR) in cities. DRR efforts already familiar to many may be used as a platform from which to develop climate change adaptation plans. In practical terms, disaster risk reduction and climate adaptation can be integrated in many instances, although cities should also consider incremental or gradual changes in climate that affect government operations or community life in less immediate and visible ways than conventional disasters. Approaches to collecting information on climate change impacts in a city can range from highly technical and resource-intensive, to simple and inexpensive. Technically complex assessments are likely to require collaboration with external experts, if a city is not large or well-resourced with sufficient in-house capacity.

The World Bank Group (WBG) has focused on reducing the environmental impacts of its internal operations and improving corporate environmental practices since 2002, when the WBG President announced WBG's commitment to Corporate Social Responsibility (CSR). The objective of this document is to summarize the actions WBG has taken thus far to reduce environmental impacts from internal operations and present an action plan to further integrate sustainability into WBG's internal operations. Although this work focuses on the environmental impact associated with WBG daily operations, the links between WBG policies and actions related to environmental management and the financial/social considerations are significant. The International Finance Corporation (IFC) footprint and World Bank corporate responsibility teams facilitate the sustainability commitment of the WBG and monitor and track its progress. These teams provide technical information and research support to a dedicated group of champions throughout the WBG who implement emission reduction activities. Budget for these activities flows primarily through the environment department, the general services department, and IFC facilities management and administration. The environment department and IFC facilities management each resource one staff member to provide back-up research support and to monitor and report on environmental metrics, with building engineers and managers and project officers from across the WBG contributing.

This internal background paper has been prepared to help inform the 2010 environment strategy with respect to a proposed way forward on use of country systems. The World Bank Group environment strategy is built on three pillars: leveraging natural resources for growth and poverty reduction; managing the environmental risks to growth and development; and transforming growth paths. As part of its exploration of these three pillars, the strategy considers the question of environmental co-benefits of climate change actions. In particular, it poses the question of potential trade-offs between actions to address climate change and other local and regional environmental priorities, and considers how to maximize co-benefits arising from climate action. The primary objective of this background paper is to assess the potential for climate change mitigation and adaptation actions to provide environmental co-benefits, particularly in the quality of environmental media, flow of ecosystem services, and maintenance of biodiversity. To accomplish this, the paper is organized in five sections: section one gives provision of an organizing framework to identify and classify potential co-benefits; section two gives summary of the external literature on co-benefits; section three gives review of examples from the World Bank portfolio; section four presents initial thoughts on creation of enabling conditions for co-benefit provision; and section five gives review of implications for the environment strategy.

The Strategic Framework for Development and Climate Change (SFDCC) approved in 2008 guides and supports the operational response of the World Bank Group (WBG) to new development challenges posed by climate change. One activity pursued by the SFDCC is to further develop and test methods to analyze climate risks and greenhouse gas (GHG) emissions at the project level. The SFDCC emphasizes the need to improve GHG accounting activities at the project level to understand the implications of the World Bank's interventions. The objective of this study is to contribute to the SFDCC goal of improving GHG accounting in the energy sector by reviewing, assessing, and recommending GHG accounting methodologies for electricity Transmission and Distribution (T&D) projects. Existing methodologies are examined to test whether they can provide simple and accurate estimates of net project emissions. In addition, the study identifies and conceptually designs a methodological approach for T&D projects. The study focuses on the T&D sector due to its importance in the World Bank's energy lending portfolio and the lack of comprehensive methodologies to determine the impact of such interventions on GHG emissions. The study builds on existing information and relies on methodologies developed under different climate finance mechanisms such as the Clean Development Mechanism (CDM). The study also considers some of the fundamental principles in other accounting procedures, such as corporate GHG accounting. Methodologies that have the objective of emissions accounting for climate finance mechanisms need to have specific characteristics, such as additionality and ex post monitoring. These methodologies must calculate a project's emissions reductions or increases by estimating the project's net emissions impact.

This report synthesizes the findings for the energy sector of a broader study, the Brazil low carbon study, which was undertaken by the World Bank in its initiative to support Brazil's integrated effort towards reducing national and global emissions of greenhouse gases while promoting long term development. The main aim of the study is to examine the potential for abating Greenhouse Gas (GHG) emissions in Brazil in the energy area and to assess the relative costs of doing so for the time frame 2010-2030. Basically the study seeks to demonstrate by how much, by when and at what cost Brazil could reduce its GHG energy sector emissions. Given its special features, the fuel use and emissions of greenhouse gases in the transportation sector are dealt with in another report of this project. In addition the study aims to provide information for the Brazilian government to enable it to develop a long-term strategy (2030) for reducing carbon in the energy area (except the transport sector) and, more specifically, to provide the technical input needed for evaluating the potential for reducing greenhouse gas emissions produced by the key economic sectors. In short, the study seeks to identify the different options and opportunities that could justify possible international resources being allocated to Brazil. The teams involved in the study needed first to focus on the proposed mitigation and carbon sequestering options and then, after identifying these proposals, to focus on existing barriers to the successful deployment of these options and suggest a set of public policies which could be mobilized to overcome them. The study also provides estimates of the scale of investments and operating costs likely to be involved, as well as a mitigation cost curve.

Vietnam's transport sector plays an important role in its socioeconomic development. Passenger transport helps meets daily needs and contributes significantly to tourist service development while freight transport helps meet the country's demand for delivery of raw materials and of semi-finished products to production facilities and for transport of finished products to consumers. With the overall growth in transport in the country, each of the main forms of transport (road, railway, aviation, inland waterways and maritime) are currently increasing the total fuel use for transport and as a result overall greenhouse gas emissions. In addition to the mix of transport modes used, the major factors affecting the impact of this growth on current and future greenhouse gases from each mode of transport are the quality and quantity of the vehicles and supporting infrastructure and the type of fuels used and their efficiency. The following sections evaluate the infrastructure and fuel use of each of the modes of transport (sections 1.1-1.5), the current and projected greenhouse gas emissions from the sector and the reasons for this (section 2), and typologies of interventions that can reduce the emissions from the sector (section 3).

The 2005 Gleneagles G8 summit in July 2005 stimulated a concerted effort of the Multilateral Development Banks (MDBs) to broaden and accelerate programs on access to energy and climate change mitigation and adaptation through the Clean Energy Investment Framework (CEIF). At the Gleneagles summit, it was agreed that a report on the implementation of the CEIF would be prepared for the 2008 G8 (Group of Eight: Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States) summit hosted by Japan. This joint report of the MDBs to the G8 summit in Hokkaido is intended to provide information on the outcomes and lessons learned under the CEIF, describe the collective MDB objectives for addressing the energy access and climate change challenges, and outline how the MDBs plan to build on the CEIF experience to date to more fully achieve these objectives. The report builds upon the 'the MDBs and the climate change agenda' report that was presented at the December 2007 Bali climate change conference. This report describes actions taken by each MDB to develop climate change strategies and programs of actions tailored to their particular client needs, based on resources and funding mechanisms currently available. Under the CEIF, the MDBs have strengthened collaboration on analytical work and programming and committed to expand this collaboration to optimize the impact of their collective actions. In addition to reporting on the status of the CEIF, this report outlines the collective ambition of the MDBs with respect to assisting the developing countries in meeting the climate change challenge, summarizes their evolving strategies designed to meet these objectives and the mechanisms through which they intend to achieve the necessary collaboration to optimize the collective impact of their climate change interventions.

This strategic framework serves to guide and support the operational response of the World Bank Group (WBG) to new development challenges posed by global climate change. Unabated, climate change threatens to reverse hard-earned development gains. The poorest countries and communities will suffer the earliest and the most. Yet they depend on actions by other nations, developed and developing. While climate change is an added cost and risk to development, a well-designed and implemented global climate policy can also bring new economic opportunities to developing countries. Climate change demands unprecedented global cooperation involving a concerted action by countries at different development stages supported by "measurable, reportable, and verifiable" transfer of finance and technology to developing countries. Trust of developing countries in equity and fairness of a global climate policy and neutrality of the supporting institutions is critical for such cooperation to succeed. Difficulties with mobilizing resources for achieving the millennium development goals and with agreeing on global agricultural trade underscore the political challenges. The framework will help the WBG maintain the effectiveness of its core mission of supporting growth and poverty reduction. While recognizing added costs and risks of climate change and an evolving global climate policy. The WBG top priority will be to build collaborative relations with developing country partners and provide them customized demand-driven support through its various instruments from financing to technical assistance to constructive advocacy. It will give considerable attention to strengthening resilience of economies and communities to increasing climate risks and adaptation. The operational focus will be on improving knowledge and capacity, including learning by doing. The framework will guide operational programs of WBG entities to support actions whose benefits to developing countries are robust under significant uncertainties about future climate policies and impacts-actions that have "no regrets."