We are grateful to all those who contributed to Phase II of consultations on the Strategic Framework. For the reference of engaged stakeholders, and in the spirit of full transparency, this web page will remain live for a period to allow continued access to the draft document and comments received.
Phase II Summary: Development and Climate Change A Strategic Framework for the World Bank Group 
Phase II Draft Document
Table of Contents
Chapter 1. The Challenge: Development in the Context of Climate Change
Climate change is a development reality and developing countries and the poorest communities are likely to suffer earliest and the most. It has the potential to reverse the hard-earned development gains of the past decades, and impede the progress toward achieving the Millennium Development Goals (MDGs), such as eradicating poverty, combating communicable diseases, and ensuring environmental sustainability. A delay in reducing GHG emissions significantly constrains opportunities to achieve lower GHG atmospheric concentration stabilization levels and is likely to increase the risk of severe (and possibly some irreversible) impacts and the cost of adapting to them. An effective response to climate change must combine both mitigation�to avoid the unmanageable�and adaptation, to manage the unavoidable.
Chapter 2. Working with the Global Community to Address the Global Challenge
Climate change demands unprecedented global cooperation. The developing world looks for strong leadership from the developed countries to achieve a successful solution to the most difficult collective action problem in human history. The WBG is one of the many international, regional, national and local actors in a complex international arena of climate change. To effectively support developing countries and to contribute to a global solution, the WBG will continue strengthening existing and building new partnerships with the many international, regional, national and local actors, basing the division of labor on the advantages and mandates of the respective institutions. The WBG attaches top priority to building collaborative relations with developing country partners.
Chapter 3. Scaling-up World Bank Group Response: Guiding Principles
The primary objective of this Strategic Framework is to enable the WBG to effectively support sustainable development and poverty reduction in the new realm of changing climate, through demand-based approaches that focus on new business opportunities and economic benefits accruing to developing country clients. Building on the WBG core mandate and competencies, the Framework seeks to help the entities of the Group - including IFC, MIGA, IDA, and IBRD - to maintain and increase the effectiveness and benefits of the core development and poverty reduction efforts by developing countries as these efforts are becoming threatened and constrained by the added costs and risks due to climate change. The second objective of this Strategic Framework is to explore the WBG�s potential to have an impact at the global level by facilitating actions and interactions by all countries.
Chapter 4. Support Climate Actions in Country-led Development (Action Area 1)
The scale of WBG support will be determined by client demand and depend on its ability to make progress with providing additional financing, facilitating transfer of technology, and building knowledge and capacity. The WBG operational priorities are to help interested clients to: (1) Strengthen climate resilience, (2) Realize multiple benefits of sustainable development, and (3) Take advantage of low carbon growth opportunities. It will do so through customizing support through operational strategies and products and making a conscious effort to support �no-regret� investments whose benefits to developing countries are robust, notwithstanding uncertainties about future climate change policies and impacts.
Chapter 5. Mobilize Concessional and Innovative Finance (Action Area 2)
The resources needed to tackle climate change are unprecedented compared to existing development and global public goods financing. Recognizing the critical importance of additional financing for developing countries, the WBG sees its key strength as supporting the development of the global financial architecture by learning from implementation experience. The WBG will be doing so through stronger partnerships with the other MDBs, International Financial Institutions, and the private sector, and in collaboration with UN agencies, the GEF and other partners. This will provide practical lessons and capacity for developing country clients and international financial institutions.
Chapter 6. Facilitate the Development of Innovative Market Mechanisms (Action Area 3)< br /> Market mechanisms or economic incentives, when appropriately designed and matched by an adequate regulatory capacity, can play a key role in mobilizing financing for development with environmental benefits. The WBG can play a significant role in the facilitation of market development and financial intermediation to reconcile climate and development. The WBG operations will focus on carbon markets, climate risk insurances, and capital markets.
Chapter 7. Leverage Private Sector Finance (Action Area 4)
Generating 86 percent of global investments, the private sector has a vital role in the global economic transformation towards development in a climate constrained world. The WBG � with leadership by IFC and MIGA � will address some of the constraints to a more significant participation of the private sector through a collective effort of its different institutions.
Chapter 8. Accelerate Technology Development and Deployment (Action Area 5)
Technology is central to both adaptation and mitigation solutions. The WBG will scale-up support to technology deployment and develop concepts to promote collaborative processes for technology development to harness the growing innovation potential in developing countries.
Chapter 9. Stepping Up Policy Research, Knowledge & Capacity Building (Action Area 6)
For investments, markets, and technologies to work, knowledge and capacity are crucial. The WBG has already stepped up its analytical work across sectors, issues, countries and at the global level, with a significant focus on adaptation. In addition to capacity development through its analytical and project work, the WBG has engaged with UN partners to coordinate and scale-up capacity building, taking lessons from the existing initiatives such as its Carbon Finance-Assist program. In addition, the WBG has developed and piloted in FY2008 two new internal training programs - Climate Change for Development Professionals, and the Sustainable Development Leadership Program � that will be rolled-out to cover a large number of staff in FY2009-11.
Chapter 10. Developing the Results Framework
The Strategic Framework has adopted a dual-track approach to establish the results framework: (i) identify an immediate set of key actions, deliverables and indicators that will be used to monitor the WBG progress over a three year period; and (ii) initiate a longer-term process of developing, in a consultative manner, an outcome-oriented results framework. The Framework will remain will remain flexible to incorporating new developments in negotiations and knowledge, and lessons from implementation and consultations.
|Phase II: Face-to-face and video conference consultations|
|Sept. 4, 2008||Sept. 4, 2008||Sept. 9, 2008||Sept. 15, 2008|
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|Last updated - September 23, 2008|