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.
For the past two years, the rains have been poor in Somalia. What comes next is tragically familiar. Dry wells. Dying livestock. Failed harvests. Migration. Masses of people in dire need of humanitarian assistance. The same is happening in Yemen, Sudan, Kenya, Ethiopia, and Nigeria. However, poor rains are not the only water problem that creates havoc. Floods, water-borne diseases, and transboundary water conflicts can all cause severe human suffering and disruptions to political, economic, and environmental systems.
In a first for Africa’s Sahel region, entrepreneurs from Senegal to Chad assembled in Niamey, Niger, for the SahelInnov Expo last month to showcase their businesses and exchange ideas. From livestock to drones, all sectors were on display as a new generation of entrepreneurs and start-ups emerges with bold and innovative ways to address the challenges facing their countries and communities. Increasingly recognized as a strategic path to economic growth, supporting SMEs and entrepreneurs has a key impact on development and is generating more interest from governments in the Sahel.
Michaëlle Jean, the Secretary General of the International Organisation of La Francophonie, His Excellency Mahamadou Issoufou, the President the Republic of Niger, and Almoktar Allahoury, the CEO of CIPMEN.
Photo Credit: CIPMEN
Hosting the event was Niger SMEs Incubator Center (CIPMEN) whose CEO, Almoktar Allahoury, lauded the initiative. “This is the first time all stakeholders have come together: entrepreneurs, public officials, investors, academia and development partners in one place to discuss the many opportunities and remaining obstacles for the private sector — this is just what we need to take the region to the next level.”
Indeed, entrepreneurship could be especially important for this extremely poor region, with half the population living below the poverty line. Burkina Faso and Niger, for example, are among the fastest-growing economies in the world, yet their GDP per capita are just $395 and $652 respectively, compared to the Sub-Saharan African average of $1,647. A vibrant and active entrepreneurial ecosystem would therefore not only boost economic diversification and improve productivity, it also could prove the vital lever to tackling two of the Sahel’s biggest challenges: youth unemployment and climate change.
The devastating combination of climate change, mass migration, trafficking and the rise of violent extremism has resulted in recurring humanitarian crises and massive food insecurity, affecting more than 20 million people across the Sahel in 2015. Enduringly high birth rates, furthermore, will require millions of jobs to be created to respond to the needs of a rapidly growing and increasingly young population. Institutional reach remains weak and a state of protracted insecurity has taken root over vast swathes of territory.
Following the Paris deal on international climate change, governments are beginning to explore new financing mechanisms for investing in the growing low carbon economy. Over the next decade sovereign wealth funds (SWFs) could become an important game changer in green investing. Recognizing the untapped potential of SWFs, two key questions emerge: how can SWFs increase their exposure to green asset classes? And what are the constraints?
Investors and financial institutions are becoming increasingly aware of the risks associated with fossil fuel projects and are showing growing interest in green bonds and other financing tools that facilitate investment in low-carbon energy solutions.
Being patient investors, with longer term investment horizons than many others in the financial services sector, SWFs could become catalysts for implementing the December 2015 Paris Climate Agreement. In the November 2016 annual meeting of the International Forum of Sovereign Wealth Funds in Auckland, participants highlighted that SWFs are particularly well-positioned to become trailblazers in green investment. The majority of members are oil-based SWFs which are looking to economic diversification of their finite carbon wealth into industries and sectors that would yield broader societal, economic and financial benefits.
The story begins a world away from Washington. Nicholas Meitiaki Soikan — or Soikan as he’s known to most — was the sixth of seven children in what is considered a small Maasai family from Kajiado county in Kenya.
As a young boy, his mornings were spent herding livestock, mostly cattle that he had names for and considered his pets. He and his siblings went to primary school in shifts, so that meant Soikan’s turn to study was in the afternoon, often under a large acacia tree.