New report highlights five steps to confront climate change
Nov 09, 2010
- Energy Central
The World Bank's Independent Evaluation Group (IEG) released a new report
Thursday after reviewing the Bank's efforts in mitigating climate change, stressing
five measures that offer attractive local benefits while fighting climate change:
energy efficiency; forest protection; appropriate project finance; technology
transfer; and accelerated learning.
The report, named The Challenge of Low Carbon Development, notes that carbon
finance has yet to realize its promise of catalyzing large scale new investments
in renewable energy.
The report recommends that the World Bank Group rebalance its efforts toward
higher-impact sectors and instruments, with relatively greater emphasis on
energy efficiency, such as lighting and improvements in electricity transmission
and distribution. The report also emphasizes the need for the Bank to actively
assist clients to move away from coal, using energy-system-wide analysis to
find cleaner, more cost-effective and financeable alternatives. It urges the
Bank Group to take a venture capital approach in the public as well as private
sectors, incubating a portfolio of promising investments and rapidly scaling
up the successful ones.
"Floods in Pakistan and West Africa, and heat waves in Russia, bring
home the severe threats that climate change poses to development," said
Vinod Thomas, director-general of IEG in a statement. "To meet the urgent
challenges of financing development, adapting to climate change, and promoting
greener growth in a recession-battered world, it is crucial that efforts focus
sharply on areas of greatest effectiveness."
During fiscal years 2003-08 the World Bank Group scaled up annual investments
in renewable energy and energy efficiency from 200 million to 2 billion U.S.
dollars, with sizeable further increases since then. In 2008 it adopted a policy
framework on development and climate change, subsequently mobilizing an additional
5 billion dollars in concessional funds for greenhouse gas reduction.
"For higher impact, the World Bank Group and the world at large need
to learn faster what works and what doesn't and focus on results, not just
dollars committed. Most projects reviewed lack periodic, reliable reporting
on impacts, leading to lost opportunities for learning," said Kenneth
Chomitz, report author and Senior Advisor at IEG.
The Independent Evaluation Group is an independent unit within the World Bank.
It reports directly to the World Bank Group Board of Executive Directors.