New report shows increasing demands for financing, knowledge sharing
Washington DC, May 11, 2010 - Despite the global financial crisis and the resulting economic downturn, the past year has witnessed unprecedented demand from developing countries for World Bank Group support in their efforts to address development and climate change as interlinked challenges, according to a new report. Released today, the Progress Report on the Strategic Framework for Development and Climate Change documents the Bank Group's growing response to these demands.
Developing countries are asking for a broad range of assistance, including help with climate resilient development, adaptation mechanisms, clean technology, and energy efficiency and renewable energy financing. The Latin America and Caribbean Region alone developed an IBRD (International Bank for Reconstruction and Development) portfolio of more than 180 country-led activities with climate change adaptation and mitigation co-benefits totaling more than US$7.3 billion. Making development climate resilient has emerged as a major theme in supporting poverty reduction and economic growth in Sub-Saharan Africa. From addressing drought risk in Ethiopia (second phase US$175 million) to watershed management in Kenya and Malawi (US$75.5 million), Africa is rapidly increasing its efforts to grapple with development challenges in a changing climate.
"Climate change is increasing the development challenge, most markedly in the poorest countries," said Katherine Sierra, Vice President for Sustainable Development at the World Bank. "From disaster risk reduction programs integrating climate adaptation to mobilizing almost US$1 billion for the Pilot Program for Climate Resilience, we have significantly increased the ability of the Bank Group working with other Multilateral Development Banks, the UN, bilateral agencies, civil society, and private sector partners to respond to the climate change priorities of many of the most vulnerable developing countries."
To meet the surging demand, the Bank Group has expanded its support to climate-resilient and low carbon investments by using and leveraging a suite of financing instruments, mobilizing and facilitating access to new additional resources, packaging "core" financial products with specialized climate resources, pioneering and broadening the reach of carbon markets, and complementing finance with technical assistance and policy advice. Working with multilateral development banks and UN agencies, the Bank Group is helping Bangladesh, Bolivia, Cambodia, Mozambique, Nepal, Niger, Tajikistan, Yemen and Zambia to scale up adaptation action through the Climate Investment Funds (CIF) Pilot Program for Pilot Resilience.
In addition, two regional programs in the Caribbean and South Pacific target small island states. The Bank Group-managed CIF Clean Technology Fund has endorsed US$4.4 billion of concessional finding in 13 investment plans that are expected to mobilize some US$36 billion in public and private resources for activities in 12 countries, along with one regional program in the Middle East and North Africa that will accelerate the development of Concentrated Solar Power.
Making climate change action part of development strategies
Developing country efforts to address climate related considerations in their broader economic growth and poverty reduction agenda is evidentmore than 80 % of all Country Assistance or Partnership Strategies with developing countries during the first months of this fiscal year substantially address climate change issues.
Another sign of developing country action is a new and growing generation of operations that address policy and institutional developments needed to tackle climate change. There was US$6 billion in such operations addressing climate change considerations over FY2009 and the first half of FY2010. These include loans to Mexico, Brazil, Turkey, Morocco, and Indonesia. Poorer countries, supported by the International Development Association (IDA), have so far requested four such operations. For example, the FY09 Ghana Natural Resource and Environment Governance development policy credit has a climate change component, aimed at strengthening institutions and governance in the forestry sector.