If you skimmed the news this year, 2017 may have seemed like a tough year for climate change.
The US and the Caribbean endured a devastating hurricane season. People across Africa felt the impact of consecutive seasons of drought that scorched harvests and depressed livelihoods. And severe rains and flooding forced tens of thousands of evacuations in Asia.
We’ve all seen these headlines, and perhaps several others that leave us feeling discouraged, to say the least. The thing is, these headlines do not tell the full story.
Urban populations are booming, and the choices that local governments make today about managing their greenhouse gas (GHG) emissions directly impact the long-term health and economic well-being of their cities. Climate action at the local level is critical; however, most cities in low and middle-income countries have yet to integrate low carbon strategies into their planning process.
The inspiring slogan of the UN Climate Change conference COP23 “Uniting for Climate Action – Further Faster Together” still reverberates in my daily thoughts. The World Bank Group partnered with the Fijian Presidency, the German hosts and numerous partners to spread the message of unity, and the urgent need to increase ambition and action.
A severe and prolonged heat wave stifled much of Central Europe this summer, buckling train tracks in Serbia and forcing at least 10 countries to issue red alerts for health concerns and water conservation. Once a rare nuisance, extreme weather events like this are becoming more commonplace throughout the region – and more dangerous.
These challenges have prompted the government of Serbia to take a proactive approach to building resilience to climate and disaster risks over the last few years.
Afghanistan is vulnerable to a number of natural hazards, including earthquakes, flooding, drought, landslides and avalanches, as well as hazards arising from human interaction. Among low income countries, Afghanistan is second only to Haiti in terms of the number of fatalities caused by natural disasters between 1980 and 2015. In the last few years, however, the Afghan Government has increasingly understood how the consequences of extreme weather events and disasters add to existing security risks. Severe and prolonged droughts, for instance, have increased food insecurity, causing on average $280 million in economic damage to agriculture each year. Natural disasters and climate-related shocks affect 59 percent of the population, concentrated in economically poorer regions, as opposed to security-related shocks (15 percent).
The availability of disaster risk information is particularly important for a fragile state like Afghanistan where 4 out of 5 people rely on natural resources for their livelihoods. To strengthen resilience, investments in Afghanistan need to incorporate information on natural hazards in their planning, design and implementation. To help support government efforts, the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR), in close cooperation with the Afghanistan National Disaster Management Authority (ANDMA), recently produced a comprehensive multi-hazard assessment level and risk profile, documenting information on current and future risk from fluvial and flash floods, droughts, landslides, snow avalanches and seismic hazards. The main findings, methodology and expected outcomes were recently discussed and presented to the Disaster Risk Management community of practice within the World Bank Group. A number of takeaways from the discussion are presented below:
What is Afghanistan’s risk profile and vulnerability?
Flooding is the most frequent natural hazard historically, causing average annual damage estimated at $54 million; large flood episodes can cause over $500 million in damage
Historically, earthquakes have caused the most fatalities, killing more than 10,000 people since 1980
3 million people are at risk from very high or high landslide hazard
Droughts have affected 6.5 million people since 2000; an extreme drought could cause an estimated $3 billion in agricultural losses, and lead to severe food shortages across the country;
An estimated 10,000 km of roads (15 percent of all roads) are exposed to avalanches, including key transport routes like the Salang Pass
When the world united around the historic Paris climate agreement, in 2015, the message was clear: It’s unfair to pass the burden of climate change to future generations.
We now need to put words into action. This week, leaders from 20 of the largest economies are meeting in Hamburg to find solutions to global challenges. Climate change will be front and center.
As the co-chairs of the Carbon Pricing Leadership Coalition (CPLC), we want to accelerate climate action and reaffirm our commitment to carbon pricing. The discussions in Germany are a great opportunity to keep the momentum going.
Launched during the Paris climate talks, the CPLC now consists of 30 governments and over 140 businesses, all fighting for a common cause: to advocate for the pricing of carbon emissions across the world. We are calling for bold leadership from everyone – governments, companies, academia and civil society. The CPLC provides a forum for these groups to show collaborative leadership on carbon pricing.
A few years ago, this would have seemed a strange question, as debt management and climate policy have traditionally been regarded as unrelated fields. But at a workshop at the annual Debt Management Forum in Vienna on May 22, 2017, debt managers from 50 developing countries discussed the role of emerging debt instruments such as green bonds and blue bonds, in raising capital for climate-friendly projects that range from reforestation to renewable energy.
While green and blue bonds resemble more traditional debt instruments in terms of structure and returns, they represent a novel approach to climate finance. Created just ten years ago, the total value of green bonds has grown at a spectacular pace, reaching US$82.6 billion in 2016. By the end of 2017, the total value of green bonds will likely exceed US$100 billion.
Surrounded by hardened fan manufacturers in the city of Gujranwala, 70 kilometers north of Lahore, the task facing our World Bank Group team was to convince them that more efficient fans, to be promoted through an energy-efficiency labeling program by Pakistan’s government, would be beneficial to the sector as a whole. Questions abounded about how regulations can help competitiveness, and about whether small and lower-tier manufacturers might be left out of the equation. How would labeling be enforced, and how would forgeries be kept off the market?
Fast-forward 12 months to an IFC advisory project, which the government has set up for the procurement of 20,000 Pakistan Energy Label (PEL) energy-efficient fans in public buildings. Those fans will save the country an estimated 800,000 kilowatt hours – the equivalent of the annual energy use of about 600 domestic refrigerators – translating to about 400 tons of greenhouse gas (GHG) emissions reduction per year.
The project has created a new market segment for manufacturers of more efficient fans, nine of whom have received certification for the PEL from the National Energy Efficiency and Conservation Authority (NEECA). The fact that four fan manufacturers out of these nine are from the small and medium-sized enterprise (SME) sector is a positive indication of wider acceptance of this standards and labeling initiative.
Photo by Etiennne Kechichian
In time for the region’s next hot season, the request for more information and knowledge about energy-efficient fans has increased. The government of Punjab, as well as NEECA, has launched a comprehensive marketing campaign to promote these PEL fans and to improve the public’s knowledge about their benefits. In a market where heavy, inefficient cast-iron fans are considered good quality, changing perceptions requires coordination with technicians, real estate developers, retailers in the streets of Lahore and the countryside, and a deep understanding of the market.
The concept of market transformation is at times abstract – but we’ve seen signs in this relatively small project, implemented by the Trade & Competitiveness (T&C) Global Practice of the World Bank Group, that targeted and client-based interventions can have a significant impact on the competitiveness of an industry.
Places with cold climates need access to a reliable and efficient heat supply for the health of their population. But in developing countries, the majority of rural and peri-urban households do not have access to centralized heating or gas networks. Instead, they use traditional heating stoves that use solid fuels like coal, wood, and dung for heating. These stoves are often inefficient (with thermal efficiency as low as 25%-40% compared to 70% or above for efficient stoves) and emit large amounts of pollutants (e.g., CO and PM2.5), causing indoor and outdoor air pollution with negative health and environmental impacts.