Financing of Climate Change
Mitigation and Adaptation
The World Bank Perspective
ECOSOC-BWI Meeting
United Nations
April 14, 2008
1
Bank Work on Climate Change is about
development in the context of climate change
• Priority of growth, poverty reduction and MDGs
• Importance of meeting energy needs of developing
countries
• Development imperative of helping to adapt to climate
risks
• Resource mobilization in addition to the current ODA
levels
2
Framework for Action
1.
2.
3.
4.
5.
6.
Make effective climate action – both adaptation and
mitigation - part of core development efforts
Address the resource gap through existing and
innovative instruments for concessional finance
Facilitate the development of innovative market
mechanisms;
Create enabling environment for private sector
finance;
Accelerate the deployment of existing and
development of new climate-friendly technologies;
Step-up policy research, knowledge management and
capacity building
3
World Bank Lending - Portfolio FY07
GHG Emissions by Sector, IBRD-IDA Countries
Transportation
6%
Waste
3%
Total IBRD-IDA Lending by Sector, FY07
Financial & PSD
8%
Electricity &
Heat
20%
Energy & Mining
5%
Other
40%
Land-Use
Change &
Forestry
32%
Transport
19%
Industry
13%
Urban
Development
6%
Other
11%
Agriculture
15%
Agriculture &
Rural
Development
12%
Water
10%
Much of WB lending is in sectors with largest potential for adaptation and /or
mitigation, creating numerous opportunities to make a difference
4
Clean Investment Funds
• It is proposed that the portfolio of
funds/programs initially include:
– The Clean Technology Trust Fund to help
countries undertake transformative projects to
reduce carbon emissions
– The Strategic Climate Fund (including the
Pilot Program for Climate Resilience) is an
umbrella program to study and pilot activities
on the ground to learn best how to build
climate resilience into development
Common Features of the CIFs
• Incentives for Scaled-up action and
transformational change
• Promote cooperation and support towards a
post 2012 agreement
• Provide experience and lessons
• Utilize skills and capabilities of IFIs
• Support investments based on country-led
strategies
• Maximize co-benefits, and
• Be flexible and efficient
Thank you