Global World Bank Institute & Implications& GAIN Business Alliance Future of Carbon

Djordjija Petkoski, Dr. Djordjija Petkoski Head of Business, Competitiveness & Head of the Business, Competitiveness & Development; World Bank Institute Development Program World Bank Institute, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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World Bank Group Milestones in Environment and Climate Change
1984 – Environmental Impact Assessments in investment lending adopted 1987 – Environment Department created 1992 – Earth Summit in Rio de Janeiro / Montreal Protocol launched / WDR on Environment 1993 – Global Environment Facility launched 1997 – Safeguards Policies adopted 1998 – The Pollution Prevention and Abatement Handbook launched 1999 – Prototype Carbon Fund launched

2001 – World Bank Environment Strategy
2003 – Equator Principles established (led by the IFC) 2006 – Sustainable Development Network (SDN) created

2006 – Policy and Performance Standards on Social and Environmental Sustainability adopted (IFC) – MIGA adopts in 2007 (Multilateral Investment Guarantee Agency)
2008 – Development and Climate Change Strategic Framework approved
Dr. Djordjija Petkoski dpetkoski@worldbank.org

2009 ~ 2010 – Development of Environment Strategy 2010 for the World Bank Group

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2008 The World Bank Group, All Rights Reserved. Legal.

Developing Countries Most At Risk:
6 Climate Threats
Drought
Malawi

Flood
Bangladesh

Storm
Philippines

Coastal 1m
All low-lying Island States Vietnam Egypt Tunisia Indonesia Mauritania China Mexico Myanmar Bangladesh Senegal Libya

Coastal 5m
All low-lying Island States Netherlands Japan Bangladesh Philippines Egypt Brazil Venezuela Senegal Fiji Vietnam Denmark

Agriculture
Sudan

Ethiopia Zimbabwe India Mozambique Niger Mauritania Eritrea Sudan Chad Kenya Iran

China India Cambodia Mozambique Laos Pakistan Sri Lanka Thailand Vietnam Benin Rwanda

Bangladesh Madagascar Vietnam Moldova Mongolia Haiti Samoa Tonga China Honduras Fiji

Senegal Zimbabwe Mali Zambia Morocco Niger India Malawi Algeria Ethiopia Pakistan

Source: Environment Department, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Access and Low Carbon Energy
Providing Energy Services for A Better Quality of Life
• Worldwide, nearly 2.4 billion people use traditional biomass fuels—wood, agricultural residues, and dung—for cooking and heating Nearly 1.6 billion do not have access to electricity. • • Four out of five people without access to electricity live in rural areas Without access to modern and sustainable energy services, poor people are deprived of opportunities for economic development and improved living standards.

Source: Environment Department, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Sources of GHG Emissions in Developing Countries
GHG Emissions by Sector, IBRD-IDA Countries
Transportation 6% Waste 3% Electricity & Heat 20%

Land-Use Change & Forestry 32%

Industry 13%

Other 11% Agriculture 15%
Source: Environment Department, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Climate change: Role of the WBG

10 Years Of Experience

WB: Started with $160 milion; now 10 Funds and facilities – US$2,5 billion catalyzing over $100 billion WB n = 212 vs Overall n = 4.820 E. Europe 18% vs. 5% Africa 21% vs. 2%

LAC
S. Asia E. Asia

26% vs. 17%
13% vs. 25% 21% vs. 50%

Source: Environment Department, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Climate change: Role of the WBG

Rationale of Carbon Finance:
Market facilitator and catalyst –addressing market failures –honest broker Learning by doing-Real life testing of the most

stringent standards
Providing the poorest people with resources and a stake in climate change

Development and adaptation opportunities to those
with the greatest exposure to climate change and the fewest possibilities to take an active role

Source: Environment Department, The World Bank Group
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Private sector as a key player
• Corporate response vs. FI response • Corporate Strategy • Collective Action – Green Pacts

Source: Nestle
Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.

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Governance Issues in New Markets
• Transparency, traceability and accountability • Fraud and corruption • Collective Action Against corruption • Climate Change is a key development and intergenerational challenge

But it is also an opportunity for businesses to develop new innovative solutions
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Dr. Djordjija Petkoski dpetkoski@worldbank.org 2008 The World Bank Group, All Rights Reserved. Legal.