global implications and future of carbon petkoski

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Dr. Djordjija Petkoski dpetkoski@worldbank.org 1

Djordjija Petkoski,Head of Business, Competitiveness &Development; World Bank Institute 

World BankInstitute & GAIN

Business Alliance

GlobalImplications &

Future of Carbon

Dr. Djordjija PetkoskiHead of the Business, Competitiveness &Development Program World Bank Institute, The World Bank Group 

8/3/2019 Global Implications and Future of Carbon Petkoski

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World Bank Group Milestones in Environment andClimate 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 Sustainabilityadopted (IFC) – MIGA adopts in 2007 (Multilateral Investment Guarantee Agency)

2008 – Development and Climate Change Strategic Framework approved

2009 ~ 2010 –

Development of Environment Strategy 2010 for the World Bank Group

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Developing Countries Most At Risk:

6 Climate Threats 

Drought Flood Storm Coastal 1m Coastal 5m Agriculture  

Malawi Bangladesh PhilippinesAll low-lying Island

StatesAll low-lying Island

StatesSudan

Ethiopia China Bangladesh Vietnam Netherlands Senegal

Zimbabwe India Madagascar Egypt Japan Zimbabwe

India Cambodia Vietnam Tunisia Bangladesh Mali

Mozambique Mozambique Moldova Indonesia Philippines Zambia

Niger Laos Mongolia Mauritania Egypt Morocco

Mauritania Pakistan Haiti China Brazil Niger

Eritrea Sri Lanka Samoa Mexico Venezuela India

Sudan Thailand Tonga Myanmar Senegal Malawi

Chad Vietnam China Bangladesh Fiji Algeria

Kenya Benin Honduras Senegal Vietnam Ethiopia

Iran Rwanda Fiji Libya Denmark Pakistan

Source: Environment Department, The World Bank Group

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Access and Low Carbon Energy

• 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 sustainableenergy services, poor people are deprived

of opportunities for economic development

and improved living standards.

Source: Environment Department, The World Bank Group

Providing Energy Services for A Better Quality of Life 

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Sources of GHG Emissions in Developing Countries

GHG Emissions by Sector, IBRD-IDA Countries

Electricity &

Heat

20%

Industry

13%

Other

11%

Agriculture

15%

Land-Use

Change &

Forestry

32%

Transportation

6%

Waste3%

Source: Environment Department, The World Bank Group

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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 26% vs. 17%

S. Asia 13% vs. 25%

E. Asia 21% vs. 50%

Climate change: Role of the WBG

Source: Environment Department, The World Bank Group

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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

Climate change: Role of the WBG

Source: Environment Department, The World Bank Group

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Private sector as a key player

• Corporate response vs. FI response

• Corporate Strategy• Collective Action  – Green Pacts

Source: Nestle

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• Transparency, traceability and accountability

• Fraud and corruption

• Collective Action Against corruption

• Climate Change is a key development and inter-generational challenge

But it is also an opportunity for businesses to developnew innovative solutions

10

Governance Issues in New Markets