The Challenge of Low-Carbon Development - World Bank Internet ...

ForewordClimate change is one of the biggest long-term risks toglobal development. That threat has originated largely owingto the greenhouse gas emissions of developed countries,which continue to emit far more per capita than developingcountries and which are obliged by the Climate Conventionto take the lead in fighting climate change. But developingeconomies also add to pressure on the limited remainingspace for atmospheric carbon dioxide, and their actions,too, matter importantly.No comprehensive global agreement yet spells out howthe Climate Convention’s goal of stabilizing atmosphericgreenhouse gas levels will be accomplished and financed.Clearly, developed countries will need to throttle backtheir emissions. The challenge for developing countriesis to create a cleaner path to rapid growth than has prevailedin earlier growth episodes, avoiding needless localenvironmental damage and taking advantage of emergingtechnologies and financing opportunities. In the absenceof a global agreement, the World Bank Group (WBG) hasto chart its course, focused on today’s urgent developmentneeds yet mindful of long-term risks.The Strategic Framework on Development and ClimateChange walks this tightrope. While putting developmentfirst, it urges the WBG to seek “no regrets” actions thatadvance development with cobenefits in climate changemitigation, while mobilizing funds to defray the added costsof low-carbon growth. The Framework has accelerated aproliferation of innovative efforts in energy, forestry, transport,and other fields. This evaluation, which focuses mostlyon the pre-Framework period, begins the work of sortingout the results of those efforts.Because the WBG is a small player in the climate arena, ina world of immense needs, it must be as efficient as possiblein catalyzing development and greenhouse gas mitigation.It must first be cognizant of where the “no regrets” optionslie. If hoped-for climate finance materializes on a large scale,clients and funders will want hard, reliable information onthe most effective ways to fund low-carbon development.They will also want to understand the trade-offs and complementaritiesamong social, economic, and climate goals.So a sound, evidence-based results framework—focused onmeasures of economic and carbon outcomes—is critical.The WBG has the potential to make a difference greaterthan its size suggests. It can provide support for policies thatenable low-carbon growth. It can contribute to transferringand adapting innovations in technology, finance, and institutions,developing a portfolio of high-return options thatcan be scaled up and widely deployed. And it can financeand deploy the innovations it has incubated. To do so, itwill need to tap the immense value of its experience withcountries and partners across the World Bank, the InternationalFinance Corporation, and the Multilateral InvestmentGuarantee Agency, learning rapidly from its successesand failures and constantly improving its efforts.Vinod ThomasDirector-General, Evaluationviii | Climate Change and the World Bank Group