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

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]