Latin America
Changing
Climate
World Bank Engagement
2010
World Bank role in Latin America with
respect to Climate Change
The World Bank aims to help countries:
Better understand the issues (scientific, economic)
Formulate appropriate policies, regulations and
legal frameworks to address the issues
Finance investments
Take advantage of concessional finance--carbon,
GEF, CTF
Prepare to participate in international negotiations
Types of World Bank Support
Regional Studies
Country Specific Studies
IBRD/IDA lending
Technical Assistance
GEF grants
Carbon Finance
Other concessional financing
(CTF, adaptation, other trust funds)
Regional and Country Specific Studies Scientific
In 2008-2009 financed a series of scientific studies to better
understand impacts…
Monitoring:
Impact of glacier melt on water supply, hydrology, ecosystems
(Andean countries)
Increase in sea level and sea surface temperatures (Caribbean)
Impact on Corals (Mesoamerican Barrier Reef, Caribbean)
Impact on ecosystem functioning in paramos (Colombia)
Impact on water resources (Jamaica, Belize)
Modelling
Impact on the Amazon ecosystem (Brazil)
Impacts on agriculture (Mexico, Uruguay, Peru)
Impacts on hydrology and hydropower (Peru)
Example: Agricultural Vulnerability
Question: How vulnerable is LAC agriculture to
climate change? What can be done to adapt?
Analysis suggests that:
– For example, in Mexico, maize, which occupies 50% of
total cultivated area, is the crop most susceptible to
climate variability, particularly to droughts
Example: Mexico
Background:
• Economics of CC
• Medec
• RIMISP
• Subnational CC Plans
Key recommendations:
– Preparedeness: Organization, Technical Capacity,
Information, Early Warning Systems, Hillside Mgt
– Food Security: Old and New Technology, Drought
tolerance of maize, wheat varieties
– Opportunities: corridors, silvopastoral, greenhouse
Regional and Country Specific Studies
Economic/Social
In 2008-2009 financed a series of economic and social
studies to better understand impacts…
Overview Reports: World Development Report,
LAC Regional Flagship
Economic Impacts of climate change on fisheries,
agriculture, tourism, hydropower, etc. (Caribbean, Peru,
region-wide)
Economics of Low-Carbon Alternatives (Mexico, Brazil)
Social Impacts on income (poverty), migration, health
(Region-wide)
Example: Social Impacts Study
By 2050 number of people in waterstressed areas in LAC may triple from 22 to
76m people
– Disproportionally affects the poor
– Lack of water for domestic consumption and
subsistence farming may lead to food
insecurity, health problems, migration, conflict
Rising sea levels will force migration
– 40% of Mexico’s population lives within 10 km
of coast
Tamaulipas
Aumento del Nivel del Mar 1 a 5 metros en diferentes zonas costeras de México
Campeche
Veracruz
Q. Roo
World Bank in LAC
Financing for Adaptation
LAC portfolio: 6 activities, over $28.3m
Hurricane-proofing public buildings -- schools, hospitals, other
essential services -- in Eastern Caribbean
Improving dike system to handle sea level rise and salt water
intrusion – Guyana
Watershed stabilization and reforestation – Haiti
Using wetlands as tool to combat sea level rise – Mexico
Managing coastal zones through land use planning (DPL in Mexico)
and pollution management - Argentina
Training and equiping health providers to deal with increased
incidence of vector-borne diseases - Colombia, Brazil
World Bank in LAC
Financing for Mitigation
LAC portfolio: ~ 130 activities, over $2.8b
Transport:
Regional Air Quality and Sustainable Transport (Mexico, Brazil,
Argentina $20m)
Urban transport projects in most large cities-Rio,Sao Paulo, Buenos
Aires, Lima, Santiago, Federal District of Mexico
Energy Efficiency:
Supporting introduction of compact fluorescent lighting, appliances,
air conditioning, new building codes (Argentina, Mexico, Brazil)
Reducing losses in transmission (Honduras, Uruguay)
Technical Assistance to reform policy and regulatory framework to
encourage energy efficiency (Nicaragua, Honduras, Dominican
Republic, Ecuador, Uruguay, Argentina, Guatemala)
Renewables:
Mini-hydro power plants, off-grid rural electrification throughout
Central America, Peru, and the entire region; wind in Colombia
World Bank: Carbon Finance in
LCR
Emission Reduction Purchase Agreements in Region
Honduras
4%
Guyana
3%
Guatem ala
6%
Mexico
24%
Peru
4%
Ecuador
5%
T&T
0%
Costa Rica
2%
Colom bia
8%
Total signed: 36
Total value: US$ 126.3m
Total reduction in tCO2e :20.3m
Nicaragua
1%
Uruguay
8%
Chile
8%
Brazil
24%
Argentina
1%
Bolivia
2%
World Bank in Mexico
Financing for Adaptation and Mitigation
Policy:
Support to GOM's Climate Change Programs: DPL $501m
Environmental Sustainability DPL $700m
REDD strategy under the Forest Carbon Partnership Fund
Transport:
Climate Friendly Measures in Transport $5.8m
DF Insurgentes Bus Transit Corridors
Urban Transport Program $700m (IBRD SIL, IBRD DPL, CTF)
Sustainable Transport and Air Quality $5.4m
Energy Efficiency
FIRCO--Energy efficiency in agriculture and rural sectors $60.5m (GEF, IBRD)
Efficient lighting and appliances (IBRD, CTF, CF financing) $480m
Integrated Energy Services $30m (GEF and IBRD)
Renewables:
Solar Thermal $50m (GEF) --Barrier removal and economic potential
Large Scale Renewable Energy--wind $37m (GEF and CF)
Integrated Energy Services $30m (GEF and IBRD)
World Bank in Mexico
Financing for Technical Assistance
World Bank Support for Mexico’s Environmental Agenda
Focus on Climate Change
Memorandum of Understanding (MOU) outlines support to:
– Promote policy dialogue
– Further strengthen capacity to mainstream environmental considerations
into productive sectors
– Support implementation of National Climate Change Strategy and
Special Climate Change Program
Main activities
–
–
–
–
Methodology to evaluate effectiveness of environmental regulations
Support to possible establishment of a cap-and-trade system
Several sub-national climate change strategies
Energy Efficiency, Water Adaptation, Low Carbon Economy (MEDEC),
Pro Poor Adaptation
– Mainstreaming environment in housing and energy sectors
Thank you