Integrating Environment into Development
Policy: The World Bank’s Experience with
Country Environmental Analysis
Sub-Regional Workshop for GEF Focal Points
East and Southeast Asia
Bangkok, April 2-3, 2007
Outline
 Background: Trend towards diagnostic
analyses
 Bank supported environmental analytical
work in East Asia
 Country Environmental Analysis: An
integrative environmental tool
 Links with other tools and processes
 Steps/Building Blocks
 Examples of CEA
Background
 Development community and Bank CDF
emphasize:
• country ownership,
• partnerships,
• focus on development outcomes,
• good policy based on sound analysis
 Need for broader environmental analysis is a part
of this vision
 Various diagnostic tools already in use, eg. Poverty
and gender assessments
 Tool required to integrate environmental concerns
into country programming
Bank Supported Analytical Work on
the Environment in East Asia
 Environment Monitors
 Studies on poverty-environment nexus for PRS:
Cambodia, Mongolia, Vietnam
 Health impacts and economic costs of pollution
helped policy makers set priorities: China
 Studies of CZM and fisheries management in
Viet Nam; land management policy reform in
Indonesia, Cambodia, China, Mongolia,
Philippines
 Strategic Environmental Assessment (SEA) –
sector focused – env. impacts
Country Environmental Analysis (CEA):
An integrative environmental tool
 CEA: systematic, country-level diagnostic
environmental analysis
 Objectives:
• Integrate environmental considerations
(including global) 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
Links with Other Tools and Processes
 Draws on:
• work on sustainability and environmental
indicators
• Country led analyses: NEAP, Strategic
Environmental Reviews, National Strategies
for Sustainable Development
• Work undertaken by development partners
 Could be underpinning for GEF RAF
prioritization
Key Steps/Building Blocks
 State of the environment and priorities for
development
 Policy analysis
 Institutional capacity assessment
 Scope: detailed or rapid
 $50,000 to $200,000
 Collaboration with country and development
partners
Examples of CEA
 10 completed world wide; 10 on going incl. Vietnam;
Indonesia and Timor-Leste planned
 Policy recommendations and identified WB and
GEF follow up programs
• Belarus
• Egypt
 Integrated environment into PRSP and CAS and
identified WB and GEF follow up investments
• Serbia and Montenegro
 Led to institutional change
• Tunisia decision to establish Ministry of
Environment and Sustainable Development
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 including GEF co-financing
Egypt CEA
 Objectives:
• Think piece to help government address MDG7:
new tools for mainstreaming environment focusing
on 4 priority issues
 Included specific GEF Recommendations:
• reducing methane in SWM
• Protect pristine areas of the Red Sea from
degradation enhancing coastal areas
• GEF financing incentives for greater private sector
involvement in sustainable development
• Combating desertification and land degradation to
improve water quality
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
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
Recommendations and Outcomes
 Policy measures
• Energy subsidies reduced
• Water agencies agree on water charges
 Identified key sectors for investment in short and
medium term
 donor support to build environment management
capacity
 Biodiversity strategy developed
 Environment mainstreamed in CAS
 Bank and GEF operations
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
GEF’S CHALLENGE
Further Information
 http://www.worldbank.org/
 Search for CEA