The World Bank - Climate Change

Event

GHG Analysis at the World Bank

On Tuesday, July 14 the World Bank and IFC launched the first in a series of twice-yearly workshops on Greenhouse Gas (GHG) Analysis, entitled, “Tools for Greenhouse Gas Analysis: Exploring Methodologies for Development Finance.” The gathering of Bank staff and external stakeholders was centered on sharing the experiences and perspectives of different institutions, explaining the current Bank program primarily in the Energy, Transport and Forestry sectors and at the IFC.

Presentations

Other Documents

World Resources Institute (WRI) stressed that GHG analysis is important for multilateral development banks (MDBs), in order that the MDBs may report transparently on the climate impacts of projects and programs financed. WRI shared experiences of the active country programs and methodologies of its GHG Protocol (download presentation). A representative of the Overseas Private Investment Corporation (OPIC) presented that institution’s history of implementing GHG accounting, as well as its current climate change policy goal to reduce the direct GHG emissions associated with projects in OPIC’s “active portfolio” by 30% over a ten-year period (2008 -2018), including an annual cap of 3 million (U.S.) tons per year.

Under the Strategic Framework on Development and Climate Change, the WBG is committed, through GHG Analysis, to build staff and client capacity to understand and apply the analytical tools to prepare for a carbon constrained future, and to gather information to better understand the implications of possible new approaches. The Bank is strengthening its support to clients in identifying low cost mitigation opportunities across its operations, and facilitating analysis of investment alternatives. A key aspect of the Bank’s role is promoting the efficient use of emerging climate funds, and sharing lessons learned early on through a “learning by doing” approach, as through the Climate Investment Funds of the MDBs.

Warren Evans, Director of the Environment Department, stressed that Bank Group efforts are currently, “…a broad and exploratory process of developing methodologies for GHG analysis. Right now we have a blank page to work with, remembering that application must be based on demand from clients and is not a new condition or criteria for World Bank supported projects or investments.”

In the context of the ongoing UNFCCC negotiations toward an international climate change regime, developing countries are careful to point out that World Bank actions should not imply that they have any international obligations relating to GHG emissions. Reflecting the consensus of WBG shareholders, any work by the Bank Group on GHG analysis must be demand driven, undertaken as an analytical exercise and not used for decision making.

During an open panel discussion, Mamou Kouyate Ehui, Advisor to the Executive Director representing 24 Sub-Saharan African countries, suggested that Bank staff think about “…how to bring the client up front in deciding how to undertake and apply GHG analysis at the World Bank.” Eduardo Paes Saboia, Advisor to the Executive Director representing Brazil and eight other countries in Latin America, added, “…the World Bank is a development institution, not a climate change bank, and as such needs to keep its focus on development results.”