1

Transitioning Towards Environmentally Sustainable Growth in Asia & the Pacific:

Key issues, progress and drivers of change

Asia Environment Lecture

Bindu N. Lohani

Vice President for Knowledge Management & Sustainable Development

Asian Development Bank 1

Outline

1 Asia 2050: what does the future look like?

2 Shaping development: environmental policies and the sustainability agenda

3 Environmental issues: current status, trends and drivers

4 Transitioning to green growth: important approaches

5 Knowledge Management and the Environment

2

2

I. LOOKING TO ASIA 2050

What progress has been made in development in Asia-Pacific?

What does the future of Asia look like in 2050?

3

Developing Asia – Significant Economic Growth and Poverty Reduction

GDP growth in developing Asia 1990-2015

Population living in poverty 1990-2010 (2005 PPP$1.25 a day)

Source: ESCAP, Statistical Yearbook for Asia and the Pacific 2012

4

3

GDP growth and inequality

5

y = 0.6948x - 4.9101 R² = 0.0962

-25

-20

-15

-10

-5

0

5

10

15

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

Ch

an

ge

in

Gin

i (e

arl

y 1

99

0s t

o l

ate

st)

Average annual GDP growth (early 1990s to late 2000s)

GDP growth vs change in Gini coefficient

Economic growth & the environment

Data source: ESCAP (2013) http://www.unescap.org/stat/data/statdb/DataExplorer.aspx

0

5000000

10000000

15000000

20000000

0

1

2

3

4

5

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Asia-Pacific - CO2 emissions

Tonnes per capita Thousand metric tonnes (total)

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Thousa

nd t

onnes

PRC (China) - SO2 Emissions

0

5000000

10000000

15000000

20000000

25000000

30000000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Mill

ion P

PP inte

rnational

dolla

rs (

2012)

Asia-Pacific – GDP (Total at PPP)

0

20

40

60

80

100

120

140

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Mic

rogra

ms

per

m3 (

ave

rage)

PRC (China) - Urban PM10 Concentration

WHO (2005) AQG - 20 μg/m3 annual mean

6

4

Millennium Development Goals - Progress

7

Country groups on and off track for the MDGs

Source: UNESCAP, ADB & UDP (2013)

Progress in MDG 7 in Selected Countries

REGION COUNTRY FOREST

COVER

PROTECTED

AREA

CO2

EMISSIONS

ODP

SUBSTANCE

CONSUMPTION

SAFE

DRINKING

WATER

BASIC

SANITATION

EAST ASIA CHINA

MONGOLIA

SOUTHEAST

ASIA

INDONESIA

LAO PDR

PHILIPPINES

VIET NAM

SOUTH ASIA

BANGLADESH

INDIA

MALDIVES

NEPAL

CENTRAL ASIA

PAKISTAN

KAZAKHSTAN

UZBEKISTAN

PACIFIC

PAPUA NEW

GUINEA

TONGA

Early achiever On track Slow Regressing/No progress

Source: Asia Pacific MDG Report 2012 8

5

9

Asia, 52%

North

America, 13%

Latin

America & Caribbean,

10%

Europe,

18%

Sub

Saharan Africa, 2%

Middle East

& North Africa, 3%

Rest of

World, 2%

Asian Century Scenario: 2050

GDP at market exchange rate (Trillion)

World 333

Asia 174

United States 38

GDP per capita at constant PPP

World 37,300

Asia 40,800

United States 94,900

Asian century driven by Asia 7: India, Indonesia, Japan, Malaysia, PRC, Republic of Korea, and Thailand projected to account for 90% of Asia’s growth between 2010 and 2050.

LOOKING AHEAD ASIA 2050 - The Asian Century?

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1960-1970 1970-1980 1980-1990 1990-2010

GD

P G

row

th R

ate

Asian Growth Rates

Japan

NIC's

China & India

• Asia began to re-emerge after 1950, spurred first by Japan, then NICs

• Starting in 1980s, first PRC then India, Indonesia and Viet Nam, gave further boost

10

Re-Emergence of Asia

• Asia accounted for about 60% of world economy before Industrial Revolution

• In the following two centuries, Asia’s share declined to 15%

• Asia’s share today is 28%

PRC & India

Asia’s Share of Global GDP, 1700-2010

6

11

Avoiding the

Middle Income Trap

• Inclusive growth and creation of large middle class

• Sound and efficient financial systems

• Technologically capable, skilled labor force

• Specialization to gain competitiveness

• Corruption under check

• Inequities within countries (e.g. across geographical regions, rural vs. urban) major risks to social stability

• Disparities across countries increase risks: migration; tensions and even conflict

• Regional cooperation necessary to mitigate such risks

Addressing Inequities

and Disparities

• Urban poverty

• Environmental stress and climate change

• Strain on urban mobility

• Need for livable cities

Massive

Urbanization

Asia Faces 6 MEGA Challenges

• Gap between region’s advanced and least-developed economies larger than in any other region – region must find ways to spread prosperity

• Disparities left unaddressed will create significant risks

12

• Environmental constraints to growth – eg clean water • Climate change impacts eg. extreme floods • Opportunities for new growth model

eg – green jobs & sustainable consumption

Environment & Climate Change

Global Competition

for Finite Resources

• Increasing affluence could lead to unsustainable pressure on finite natural resources

• Growth patterns and lifestyle must change dramatically

Asia Faces 6 MEGA Challenges

Disparities across

Countries and Subregions

7

II. THE SUSTAINABILITY AGENDA FOR ASIA-PACIFIC

What is the policy context for environmentally sustainable growth?

13

Club of Rome “Limits to Growth”

Report

Rio + 20

green economy

1987 1992 2002 2009 1972 2012

Brundtland Commission “sustainable

development”

Rio Earth Summit sustainable

development, and poverty reduction

OECD Declaration on Green Growth; formulation of green growth

strategy

UN Stockholm Conference

environment as a global agenda,

creation of UNEP

Rio + 10, address social dimensions

and role of partnerships

MCED 5 (2005)

report on green growth

MCED 6 (2010)

Declaration on green growth

UNEP

Green Economy

Report (2010)

Sustainable Development Timeline

UNCLOS

“constitution for the seas”

1982

10 years after Stockholm

“Rio COVENTIONS”

14

8

Global Milestones

1970s - United Nations Environment Programme, US-EPA

1972 - Stockholm Conference

Creation of UNEP

Formulation of Environmental Legislations/Regulations

(Malaysia 1974, Thailand 1975, Philippines 1977, PRC 1979)

1982 - 10 years after Stockholm

More environmental institutions were established/strengthened

Formulation of environmental legislations

- UN Convention on the Law of the Sea

Defined the rights and responsibilities of nations in their use of the world's oceans

15

1987 - Brundtland Commission’s “Our Common Future”

Concept of Sustainable Development as development which “meets the needs of the present without compromising the ability of future generations to meet their own needs”

Integration of environment into macro operations and sectoral policies and creation of environmental cells in sectoral departments or agencies

1992 - UNCED or “Rio Summit”

Brought “the environment” to political agenda of governments

Committed nations to implementation of Agenda 21,

United Nations Framework Convention on Climate Change

UN Convention on Biodiversity

Agreements on Basic Principles for Managing and Conserving World’s Forests

Global Milestones

16

9

17

1994 - Convention to Combat Desertification

1997 - Kyoto Protocol

established legally binding obligations for developed countries to reduce GHG emissions

2002 - WSSD / Rio + 10

Stockholm Convention (POPs) in 2004

2006 - Stern Review

Helped galvanize attention to climate change among finance ministers

2009 - UNFCCC Copenhagen Accord (Climate Change)

Commitments on the establishment of a “Green Climate Fund”

Global Milestones

2009 - Declaration on Green Growth (OECD)

Pursue green growth strategies as part of response to crisis and beyond

2010 - Incheon Declaration on Green Growth (ESCAP)

strengthen efforts to purse green growth strategies as part of response to the current crisis and beyond”

ASEAN Leaders’ Statement on Sustained Recovery and Development – promote green growth, investments in long term sustainability and sustainable use of natural resources

PRC, Japan and Republic of Korea pursued green growth initiatives

2010 - Aichi Biodiversity Targets and Nagoya Protocol 20 ambitious targets on biodiversity Access to Genetic Resources and the Fair and Equitable Sharing of

Benefits Arising from their Utilization

18

Global Milestones

10

2012 - UNCSD or “Rio + 20”

Outcome document: “The Future We Want” (green economy as a tool for SD, stronger UNEP, CSR, beyond GDP, SD financing strategy, oceans and marine BD, SCP 10 years framework)

Commitment to a process to establish Sustainable Development

Goals to be integrated into the post 2015 development agenda

2013 - Minamata Convention

Commitment to a process to establish Sustainable Development Goals to be integrated into the post 2015 development agenda

Looking ahead:

UNFCCC Expected agreements at COP19?

Green Climate Fund?

Post 2015 Development Agenda

19

Global Milestones

Moving forward: MDG+ and SDGs

• MDGs & the post-2015 development agenda

• Sustainable development goals (SDGs)

• Status of discussions?

• What might they look like?

20

11

Post 2015 Agenda Three main types of proposals

Options Prospects

1) MDG+ (base case) Retain current 8 MDGs, which apply to

developing countries, but make MDG7 and MDG8 applicable to all countries.

Most discussion in the MDG HLP context falls into this category.

2) Integrated SD Model (MDG++) Adopt a broader set of 10-12 goals, that

include additions like access to energy, food security, governance etc.

Represent what many aspired to in the SDG discussion, but no practical proposals for action.

3) Transformational model Adopt a broader set of 10-12 goals (like

MDG++) . Plus, integrate all 3 dimensions of sustainability within each goal.

Attempts to capture the different domains within which poverty, inequality and sustainability can be addressed.

21

MDG+: Asia-Pacific goals?

22

12

Sustainable Development Goals (SDGs)

• Rio+20: launched a process to develop SDGs (Open Working Group of the UN General Assembly on SDGs)

• Action orientated…universally applicable…

• Based on Agenda 21 and JPOI.

• Build on existing commitments…

• Not divert focus from MDGs & integrated with UN post 2015 agenda

23

Thematic Areas of SDGs • Food security and nutrition, sustainable agriculture,

desertification, land degradation and drought

• Water and sanitation

• Employment and decent work for all, social protection, growth, education and culture

• Health, population dynamics

• Sustained and inclusive economic growth, macroeconomic policy questions (including international trade, international financial system and external debt sustainability),infrastructure development and industrialization

• Energy

• Means of implementation(science and technology, knowledge-sharing and capacity building); Global partnership for achieving sustainable development

• Needs of countries in special situations

24

13

Illustration: Erik Rosin, based on Rockström and others. Nature, 2009

Climate

350 ppm CO2

+1 W/m2

Biodiversity loss

10 E/MSY

Land use

15%

Chemical pollution

Not yet quantified

Aerosol loading

Not yet quantified Ozone depletion

276 DU

Ocean

acidification

Aragonite saturation

ratio > 2.75

Nitrogen &

Phosphorus loading

35 MT N/yr

11 MT P/yr

? ?

Freshwater use

4000 km3/yr

Environmental Context for the SDG? Planetary Boundaries

25

ADB: “A ZEN Approach to Post-2015”

Z

E

N

Zero extreme poverty

• A set of minimum standards to eliminate extreme poverty everywhere, by a deadline (e.g., 2030)

“Epsilon” or “Extended” goals

• Countries’ voluntary targets beyond the minimum Z standards and country specific (e.g. x income from 1.25$/day to 2$/day)

“N” (Nature) with the goals for the Environment

• Targets to address underpinning challenges of environmental sustainability (cross cutting and included under “z” and “e” goals )

26

14

•Source: D. Brooks, K. Joshi, J. W. McArthur, C. Rhee and G. Wan. 2013. A ZEN Approach

to Post-2015: Addressing the Range of Perspectives across Asia and the Pacific. ADB

Economics Working Paper Series No. 327.

ADB: “A ZEN Approach to Post-2015”

III. KEY ENVIRONMENTAL TRENDS &DRIVERS

What’s the state of the environment? What’s driving change?

28

15

How many planets do we need? - Ecological Footprint (2012)

29

2012

2050

2100 ?

= 1.6 planets

= 2.9 planets

Source: WWF, 2012

Ecological footprint per capita

Ecological

footprint per

capita by

country

Ecological

footprint

composition

30

16

Environmental trends in Asia-Pacific

1. Energy: demand is projected to almost double in the Asia and Pacific region by 2030.

2. Transport: Asia’s fastest growing source of CO2. Vehicle fleet has more than doubled in the past decade.

3. Urban: 44 million people/yr are added to Asian cities.

4. Water: Demand is expected to significantly exceed sustainable supply in India and PRC by 2030.

5. Biodiversity: Key populations declined by 60% in 30 years. Trends likely to continue without mitigation

6. Climate vulnerability: 7 of the world’s 10 countries at greatest vulnerability to climate change and variability.

31

1. Energy: Developing Asia’s Share in Global Energy-Related CO2 Emissions

Rest of the Word 37%

63%

47%

Rest of the Word

53%

2010

Actual (World)

Total = 31,305 million tons CO2

2035

Projection (World)

Total = 43,220 million tons CO2

Source: ADB, APERC 2013

32

17

Hydro

2.5%

2010: 12,730 MTOE

32.3%

Oil

27.3%

Coal

21.5%

Gas

10.0%

Biomass

5.6%

Nuke

2.3% 0.9%

Other

RE

Source: IEA, 2013

2035: 18,677 MTOE

29.6%

Coal

27.1%

Oil

23.5%

Gas

9.3%

Biomass

5.5%

Nuke

2.7%

Other

RE

Hydro

Asian Energy Outlook: Next Two Decades

33

34

China and India are driving world energy consumption energy - 56 percent in the next three decades

18

•Energy

Efficiency

•RE

•Fossil

•Fuels

2050

Market Transformation:

Unlock Asia’s Clean Energy Future

•EE&R

E

•Gas

•Coal/Oil/Nucle

ar

Current

•EE&R

E

•Gas

•Coal/Oil/Nuclea

r

Near-Future

35

2. Transport: Asia-Pacific Trends

36

0

10

20

30

40

50

60

70

2010 2020

2030 2040

2050

Source: ADB and IEA, 2011

Public transport, walking, and cycling

Cars and motorcycles

•Mo

de

sh

are

(p

-km

)

19

Lag times

37

0

10

20

30

40

50

60

70

2010 2020

Public transport

Cars and motorcycles

Mo

de

sh

are

(p

-km

)

The trend for the next 5 to

8 years is fixed

Transport

• Need to transform the transport sector

• Need for a new approach to

transport financing and investment

38

20

3. Urbanization: growth at an unprecedented rate

39

• Urban areas account for 84% of global GDP

• Urbanization is expected to grow by 3% annually in Asia

• 600 cities account for 60% of GDP (50% of these cities are in Asia)

• 23 megacities account for 14% of Global GDP but will decline to 10% by 2025

• 577 second-tier cities to account for 50% of global GDP by 2025

Source: McKinsey Global Institute. 2011. Urban world: Mapping of the economic power of cities.

Climate Change Environment

Energy Economy

Air pollution can have estimated

2%-4% negative impact on GDP

Cities use about 85% of energy

Asia - 35% CO2 emissions

Cities produce 80 % of GDP

Drivers of economic growth

Vulnerable to impacts of CC-

inundation, sea level rise

Asian URBAN

Challenge

40

21

Asia’s Urban Challenges (1)

• Two faces of Asian urbanization: economic prosperity of cities and increasing urban poverty

Out of 1.6 billion urban people in Asia, more than 500 million are urban poor

Growing inequality

• High levels of environmental stress

Urban areas account for 60-80% of energy consumption and 75% of carbon emissions.

Climate change brings a new layer to environmental unsustainability.

41

Asia’s Urban Challenges (2)

• Urbanization is placing an enormous strain on urban mobility

Economic cost of up to 2%-4% of GDP in many countries

650,000 lives lost annually in region

• Cities face more complex public financial management challenges

42

22

Urbanization

• Need to turn cities to green, smart, inclusive and competitive cities

• Make them livable cities

43

Source: The 2030 Water Resources Group. 2009. Charting Our Water Future

4. Water demand & security 40% supply gap projected by 2030

44

23

Water Security

45

5. Declining biodiversity

• Populations of mammals, birds, fish, reptiles &

amphibians have declined by 64% in Asia-Pacific

(twice the global average!) 46

24

Forest Trends (1990-2010)

47

575000

580000

585000

590000

595000

600000

605000

610000

1990 2000 2005 2010

Total Forest Cover (km2)

P.R.

China

Indonesi

a Lao PDR

Myanma

r PNG Thailand

Viet

Nam

1990-2010 32% -20% -9% -19% -9% -3% 47%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

% c

ha

ng

e

Forest Cover Change

• Overall: Forest cover increase since 2000

• Significant reforestation in the PRC driving regional trends

• Ongoing loss of primary forest in Indonesia, PNG, Lao PDR

Ocean Health

48

Ocean Health Index

0 10 20 30 40 50 60 70 80 90

100

Food Provison Index

Seafood captured or raised

in a sustainable way

Source: Ocean Health Index, 2012

http://www.oceanhealthindex.org

Increasing sustainability

25

Biodiversity

• Need to protect, restore and enhance the management of ecosystems

• Greater attention needed on oceans and coasts

• Economic valuation of ecosystems services needs to be integrated in decision-making

49

6. Climate vulnerability in Asia

50

26

Droughts Floods Storms Sea Level rise (1m) Agriculture

Malawi Bangladesh Philippines low-lying Island States

Sudan

Ethiopia China, PR Bangladesh Viet Nam Senegal

Zimbabwe India Madagascar Egypt Zimbabwe

India Cambodia Viet Nam Tunisia Mali

Mozambique Mozambique Moldova Indonesia Zambia

Niger Lao PDR Mongolia Mauritania Morocco

Mauritania Pakistan Haiti China, PR Niger

Eritrea Sri Lanka Samoa Mexico India

Sudan Thailand Tonga Myanmar Malawi

Chad Viet Nam China, PR Bangladesh Algeria

Kenya Benin Honduras Senegal Ethiopia

Iran Rwanda Fiji Libya Pakistan

Note: The typology is based on both absolute effects (e.g., total number of people affected) and relative effects (e.g., number affected as a share of GDP). Source: IPCC data

Most Affected Asian Countries by Climate-Related Threats

51

Economics of Climate Change • The costs and risks of climate change is equivalent to

losing at least 5-20% of global GDP per year

• Economics of containing the global warming below 2°C will mean an annual cost of 1% GDP

• India and S.E. Asia could lose on average 2-3% and as much as a 9-13% (95 percentile) of GDP by 2100

• Based on ADB studies, economy-wide loss by 2100 can be as high as:

6.7% of GDP per year for Indonesia, Philippines, Thailand and Viet Nam

8.8% of GDP per year for Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka

5.3% of GDP per year PRC, Japan, Republic of Korea, and Mongolia

• 300,000 people dead, lives of 325 million people affected and economic losses of $125 billion yearly

52

27

5,000

4,000

3,000

2,000

1,000

0 1970 1975 1980 1985 1990 1995 2000 2005 2010

Fitted

Loss

Curve

GDP

Disaster Losses

Ind

ex

(1

97

0=

10

0)

Growth in direct physical losses is outpacing

growth in GDP in Asia and the Pacific

53

Climate Vulnerability

• Need to address climate vulnerability

Mitigation

Adaptation

• Need to strengthen disaster risk management and financing

54

28

IV. TRANSITIONS TO GREEN GROWTH – ADB’S APPROACH

What approaches do we need?

55

Green growth

• Alternative path that will bring about transformational change

Shift to more resilient infrastructure development

Achieve gains in resource-use efficiency

Achieve resilience against climate change and other shocks and stresses

56

29

25

Year n Year n+10 Year n+20 Year n +30

Decoupling growth?

Less climate change

Resource risks mitigated

Biodiversity maintained

Increased resilience

Absolute

decoupling

Relative

decoupling

Rapid climate change

Increasing resource risks

Declining biodiversity

Reduced resilience

50

75

100

125

150

175

200

Year n = 100

57

ADB Environment Operational Directions (2013-2020)

Promoting a shift to

sustainable infrastructure

Investing in natural capital

Strengthening governance and management

capacities

Climate change (mitigation and adaptation)

58

30

Infrastructure: Huge Demand

Infrastructure promotes economic growth and makes growth more inclusive

“Infrastructure for a Seamless Asia”, May 2009

National infrastructure needs $8 trillion between 2010 to 2020; 68% for new investments and 32% for maintenance and replacements

$287 billion for regional infrastructure ($205 for transport and $82 billion for energy)

Estimates at 6.9% of China’s GDP; 3.6% for middle income countries; and 6.3% for low-income countries

Infrastructure lending accounts for around 70% of ADB operations

59

•Clean Energy Program aims to invest $2 billion annually for

renewable energy and energy efficiency systems

• Energy efficiency

• Renewable (solar, wind, hydro)

• Clean coal technology

•Sustainable Transport Initiative aims to invest around $2 billion annually by 2020 for clean, safe

and affordable transport systems

• Public transport infrastructure

• Rail infrastructure

• Inland waterways

•Water Financing Program aims to invest over $2 billion annually

by 2020 for safe water and sanitation

• Water efficiency

• Climate-resilient water resource management

• Energy-water-food nexus

Sustainable Infrastructure

•Urban Operations Program aims to invest $2 billion annually for

improved environmental infrastructure

• Integrated urban planning

• Green (low carbon) cities

• Innovative financing 60

31

226306

757

657

668

1750

1313

1756

2133

2358

$1 Billion

1200

1400

1600

1800

$2 Billion

0

500

1000

1500

2000

2500

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$ M

illio

ns

Progress towards ADB's $2 Billion Clean Energy Investment Target

CE Investment CE Investment target

Progress Towards ADB’s $2 Billion Clean Energy Target

61

Clean Energy Investments

in $ million

Total Energy-related Investment (2008-2012): $ 18.1 Billion;

Total Clean Energy Investment (2008-2012): $ 9.4 Billion.

Note: “Others” in the breakdown of RE projects pertains to biomass/biogas, waste to energy

Cleaner Fuel, 318, 3%

Clean Energy Funds, 420, 5%

Energy Efficiency, 3162, 34% Renewable,

5414, 58%

Hydro Wind Solar Others

3051 753 755 855

56% 14% 14% 16%

62

Cumulative investments by Project Type (2008-2012)

32

Integrated Sustainable

Urban Development

Sustainable Transport

Energy Efficiency

Urban development & green cities

63

Urban Operational Plan

Promote green and smart, inclusive and competitive cities through 3E approach (environment, equity, and economy)

64

33

ADB Urban Operations

65

• Total urban lending is around $20 billion

• Investment pipeline: $6.5 billion

2011: $1.7 billion

2012: $2.1 billion

2013: $2.7 billion

• Smart growth • Zoning regulations • Information and communications

technologies (ICT) • Transit-oriented development

• Public transport • Non-motorized transport • Transportation demand

management (TDM) • Shift to rail freight

• Alternative fuels • Fuel efficiency standards • Vehicle maintenance • Vehicle testing

Avoid unnecessary vehicle kilometers

Shift to the lowest-emitting modes

Improve vehicle/fuel technology towards cleaner and more efficient options

Strategy for sustainable transport

66

34

Rio+20 Commitment

67

US$ 175 billion committed to transport by the 8 major multilateral

development banks over the next 10 years

Transport sector investments

68

2000 - 2009 historical

2012-2014 pipeline

2020 target

2%

21% 30% •Urban

•Railway

•Road

35

Water and Sanitation

Water Resource Management

Water Security

Water supply

Sanitation and Wastewater management

Flood Control

Water Management, Governance & Use

69

Water Operational Plan

(2011-2020)

• Approved October 2011

• Increased water use efficiencies

• Expanded wastewater management and reuse

• Embedded integrated water resource management, including flood and drought mitigation

• Expanded knowledge development

• Enhanced partnerships with private sector

70

36

ADB’s Water Financing Program 2006-2020

To deliver substantial investment, reform, and capacity development in:

Rural & urban water services; River basin water mgmt

Targets:

500 million with safe drinking water & improved sanitation

96 million people with better irrigation & drainage services

170 million people with reduced flood risks

Integrated water resources management introduced in 30 river basins in Asia

Annual investment: $2-2.5 billion in 2011-2020

71

• Clean Energy (targets)

$1 billion from 2008-2012; $2 billion from 2013

Asia Solar Energy Initiative (3,000 MW

new capacity by 2013)

Quantum Leap in Wind Power (1 GW by 2016)

Energy for All Initiative (access for 100 million poor by 2015)

Marketplace for Low Carbon Technology

• Sustainable Transport and Urban Development

Sustainable Transport Initiative: increased share of urban transport and railway in transport investments 25% and 30% respectively by 2020

Cities Development Initiative for Asia

Urban Operational Plan, Green Cities Initiative

• Land Use and Forest Management

Piloting REDD+/Forest Investments Program: Indonesia, Lao PDR, Mekong region

Clean Energy Investments

Actual, 2008-2012

1750

1313

1756

2133

2358

0

500

1000

1500

2000

2500

2008 2009 2010 2011 2012

$ M

iili

on

s

Mitigation Initiatives

72

37

Adaptation Initiatives

• Mainstreaming climate resilience in core development planning, sectors

- Pilot Program on Climate Resilience for Bangladesh, Cambodia, Nepal, Tajikistan and the Pacific

• Climate proofing vulnerable projects

- roads, port facilities, water supply

• Increasing resilience of vulnerable sectors

- natural resources, water, energy,

transport

• Addressing social dimensions: - migration, gender, health impacts

• Greater emphasis on integration of adaptation and disaster risk

reduction

73

Mobilizing Climate Financing

74

Internally-managed funds • Clean Energy Financing

Partnership Facility (CEFPF)

• Climate Change Fund (CCF)

• Others with bilaterals Externally-managed funds • Climate Investment

Funds (CIFs) • Global Environment

Facility (GEF) • soon the Green Climate

Fund (GCF)

• Upfront carbon finance Asia Pacific Carbon

Fund Future Carbon Fund

• Carbon Market Technical Support Facility CDM support domestic emissions

trading • Supporting other

market mechanisms (e.g. renewable energy credits; feed in tariffs)

• Direct project finance (lending, guarantees, syndications), and equity investment

• Public private

partnerships: (PPPs) working with client DMCs across stages of PPPs

Deploying concessional

resources

Maximizing market mechanisms

Catalyzing private capital

38

Investing in Natural Capital

75

Investing in Natural

Capital

Regional

cooperation for large-scale

ecosystems

Natural capital valuation – improving

policies and decision-making

Strengthening biodiversity

safeguards for investments

Partnerships & financial resource

mobilization

Integrated landscape /

seascape approaches

Investing in Natural Capital

5 key priorities

76

39

Coral Triangle Initiative on Coral Reefs, Fisheries and Food

Security (CTI-CFF)

Greater Mekong Subregion (GMS) – Core Env. Prog. & Biodiversity

Corridors Initiative (CEP-BCI)

Heart of Borneo Initiative (HOB)

Living Himalayas Framework for Cooperation

Support for Regional Ecosystem Management Programs

Ph

oto

cre

dit

s:

WW

F (

20

12

)

77

Environmental Governance and Policy

78

Short term Medium term Long term

Direct

Indirect

Greening fiscal policy, supportive fiscal incentives, reinvestment in natural capital

Participation, transparency, information disclosure and access

Environmental courts, green benches, dispute settlement mechanisms

Integration (vertical and horizontal), application of subsidiarity and proportionality principles, environmental impact assessment, integrated sustainability assessment, strategic environmental assessment

•Policy Cluster

Strengthening incentive structures

Accountability and stakeholder participation

Compliance and enforcement

Policy integration and mainstreaming

40

Strengthening Environmental Governance and Management

Capacities

• Policy and incentive frameworks

• Compliance and enforcement

• Country environmental safeguard capacity

• Efficient and transparent public financial management

79

‹#›

41

Emerging Trends in the Design of Project in the Energy Sector

In

cre

asin

g F

oc

us o

n E

nv

iro

nm

en

t

Since the 1970s 1988 1992 2002 2012

Environmental

Protection/Pollution

Control Components

Energy Efficiency

Renewable Energy

Rehabilitation rather

than plant

expansion

Demand Side

Management

Efficient

energy

production/

clean fuel

Smart grid

CDM

Carbon

markets

Carbon

capture and

storage

81

Emerging Trends in the Design of Project in the Forestry Sector

Inc

reasin

g F

oc

us o

n E

nv

iro

nm

en

t

1984 1985 1988 1992 2002 2012

Improvement of

forest support

services

Forest

rehabilitation,

afforestation and

conservation as a

component

Policy and

institutional

reforms for

sustainable

forest

management

Natural Forest

Management/

Industrial

Plantation by

involving NGOs

and Private

Sector

Containing

deforestation

and

rehabilitation

of degraded

areas by

agroforestry

and

afforestation

Biodiversity

Conservation

and Community

Based Forest

Management

PES

Forest

Certification

REDD+

Ecosystem-

based

adaptation

82

42

Emerging Trends in the Design of Project in the Industry Sector

In

cre

asin

g F

oc

us o

n E

nv

iro

nm

en

t

Late 1960s 1991 1992 2000 2012

Pollution Control/

Environmental

Protection

Components

Resource Recovery

and Recycling/

Waste Minimization

Energy Efficiency/

Energy

Conservation Use of centralized

systems including

industrial estates

Production Process

Modification

Industry

Standards/

Certification

Greening the

supply chain

Life-cycle

approach

Eco-industrial

parks

Cleaner

Production/ 3R

Approaches

83

V. KNOWLEDGE MANAGEMENT AND THE ENVIRONMENT

84

43

“Finance ++” at ADB

85

ADB’s own finance plus leveraging

resources through partnership plus

providing knowledge to developing

member countries to maximize and

accelerate development effectiveness

86

44

Knowledge Work in ADB

• Support the development of new knowledge solutions through partnership with centers of excellence and knowledge hubs, to achieve world-class knowledge solutions.

• Expand support for pilot-testing new innovations and other knowledge solutions

• Strengthen our sector and thematic communities of practice as sources of knowledge within and outside ADB

• Support knowledge sharing regionally and globally

87

Environmental Parameters in Development

Planning in Asia

Phase I

(to c 1965)

Phase II

(from c 1970)

Phase III

(from c 1980) Phase IV

(from c 1985)

National

Economic

Policy

Same as I

Same as I

Same as I

Sub-National

Development

Planning

Same as I

Same as I

Regional

Economic /

Env Dev

Planning

Individual

project

Feasibility

Study

Same as I Same as I +

Environmental

Parameter

Same as III

Little attention

to

environmental

parameter

EIA utilized

data from

feasibility

study but as

separate

document

EIA is included

in feasibility

study

Examples of

regional

Economic / Env

Dev Planning

are Han River

Basic Project,

Songkhla Lake

Basic Project

Phase V

(from c 1989)

Economic

Policies for

Sustainable

Development

Sub-national

development

plans

Same as III

Examples are

implementation of

the Brundtland

Commission’s

Recommendation

s and Policy-

based Structural

lending

Phase VII

(from

c2005)

Local Agenda

21

Strategic

Environment

Assessment

National

Agenda for

Sustainable

Development

(Agenda 21)

Phase VI

(from

c2002)

Green Growth

Strategies/

NAPAs/NAMA

s

Green/ low

carbon sector

plans

Same as VI

National plans

prepared to

implement

Agenda 21

Example:

NAPAs process

88

45

Regulatory Frameworks Time Frame Scope of Regulatory

Activities Regulatory Mechanics

Monitoring Activities

From About 1989-1995

Concerns on Global Environment Issues/ Rio

Conventions

•Reduction of Chemical use such as CFCs and

Discharge of CO2 and Sox

Monitoring of CO2, Sox, Ozone, etc.

From About 1985

Environmental and Natural Resources Management and

Wildlife Protection

Natural Resource Protection, Rare and Endangered Species

Monitoring of Resource Depletion, Protected Area,

Rare and Endangered Species

From About 1980

Comprehensive Environmental Protection

Environmental Impact Statement

Monitoring of Various Environmental Parameters

as Required

About 1975

Environmental Pollution Control (Water, Solid and Liquid

Wastes, Gaseous Emissions, Noise Control)

Permit Procedure Environmental Pollution Monitoring

To About 1970

Sanitation (Water Supply, Waste Management, Food Sanitation, Water Pollution

Control)

Permit Procedure Water Quality Monitoring (with Hydrologic Data

Collection)

•Emission reductions/

Monitoring of relevant parameters

•Kyoto Protocol From About 1996 - 2005

•CDM/Carbon markets/ Market-based

instruments/ Information Disclosure

From About 2006

•Green Growth Strategies/Policies

•Green new deal/ green investments

•Budget allocation for green investments/ green

economy reporting

Environmental Education

1960s - narrow focus on pollution prevention and environmental quality (US NEPA, Earth Day)

1970s/1980s

- knowledge, values, attitudes and skills to protect the environment

- economic, social political and ecological interdependence

(Stockholm conference)

- environmental standards, regulations and laws

time

focus 1990s

- increased orientation on the

science of environment

- environmental awareness

programs

2000s

- education for

sustainable

development

- environmental

leadership programs

- Green growth

environment

sustainable

development

Increasing emphasis on

multi-disciplinary

approaches over time

90

46

Role of Universities, R&D and Centers of Excellence

• High concentration of talent, both in faculty and students

• World-class universities are well resourced

• World-class universities are well-governed

• World-class universities network with each other

• World-class universities are reaching out to people everywhere

91

92

Thank You