Financing of Climate Change Mitigation and Adaptation The

Financing of Climate Change Mitigation and Adaptation The World Bank Perspective ECOSOC-BWI Meeting United Nations April 14, 2008 1

Bank Work on Climate Change is about development in the context of climate change • Priority of growth, poverty reduction and MDGs • Importance of meeting energy needs of developing countries • Development imperative of helping to adapt to climate risks • Resource mobilization in addition to the current ODA levels 2

Framework for Action 1. 2. 3. 4. 5. 6. Make effective climate action – both adaptation and mitigation - part of core development efforts Address the resource gap through existing and innovative instruments for concessional finance Facilitate the development of innovative market mechanisms; Create enabling environment for private sector finance; Accelerate the deployment of existing and development of new climate-friendly technologies; Step-up policy research, knowledge management and capacity building 3

World Bank Lending - Portfolio FY 07 Much of WB lending is in sectors with largest potential for adaptation and /or mitigation, creating numerous opportunities to make a difference 4

Clean Investment Funds • It is proposed that the portfolio of funds/programs initially include: – The Clean Technology Trust Fund to help countries undertake transformative projects to reduce carbon emissions – The Strategic Climate Fund (including the Pilot Program for Climate Resilience) is an umbrella program to study and pilot activities on the ground to learn best how to build climate resilience into development

Common Features of the CIFs • Incentives for Scaled-up action and transformational change • Promote cooperation and support towards a post 2012 agreement • Provide experience and lessons • Utilize skills and capabilities of IFIs • Support investments based on country-led strategies • Maximize co-benefits, and • Be flexible and efficient

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