Latin AmericaLatin AmericaChanging Changing ClimateClimate

World Bank EngagementWorld Bank Engagement

20102010

World Bank role in Latin America with World Bank role in Latin America with respect to Climate Changerespect to Climate Change

The World Bank aims to help countries:The World Bank aims to help countries:

Better understand the issues (scientific, economic)Better understand the issues (scientific, economic)Formulate appropriate policies, regulations and Formulate appropriate policies, regulations and legal frameworks to address the issues legal frameworks to address the issues Finance investmentsFinance investmentsTake advantage of concessional finance--carbon, Take advantage of concessional finance--carbon, GEF, CTFGEF, CTFPrepare to participate in international negotiationsPrepare to participate in international negotiations

Types of World Bank SupportTypes of World Bank Support

Regional StudiesRegional StudiesCountry Specific StudiesCountry Specific StudiesIBRD/IDA lendingIBRD/IDA lendingTechnical AssistanceTechnical AssistanceGEF grantsGEF grantsCarbon FinanceCarbon FinanceOther concessional financingOther concessional financing (CTF, adaptation, other trust funds) (CTF, adaptation, other trust funds)

Regional and Country Specific Studies - Regional and Country Specific Studies - ScientificScientific

In 2008-2009 financed a series of scientific studies to better In 2008-2009 financed a series of scientific studies to better understand impacts…understand impacts…

Monitoring:Monitoring:Impact of glacier meltImpact of glacier melt on water supply, hydrology, ecosystems on water supply, hydrology, ecosystems (Andean countries)(Andean countries)Increase in sea level and sea surface temperaturesIncrease in sea level and sea surface temperatures (Caribbean) (Caribbean)Impact on CoralsImpact on Corals (Mesoamerican Barrier Reef, Caribbean) (Mesoamerican Barrier Reef, Caribbean)Impact on ecosystem functioning in paramosImpact on ecosystem functioning in paramos (Colombia) (Colombia)Impact on water resourcesImpact on water resources (Jamaica, Belize) (Jamaica, Belize)

ModellingModellingImpact on the Amazon ecosystemImpact on the Amazon ecosystem (Brazil) (Brazil)Impacts on agricultureImpacts on agriculture (Mexico, Uruguay, Peru) (Mexico, Uruguay, Peru)Impacts on hydrologyImpacts on hydrology and hydropowerand hydropower (Peru) (Peru)

Example: Agricultural VulnerabilityExample: Agricultural Vulnerability

QuestionQuestion: How vulnerable is LAC agriculture to : How vulnerable is LAC agriculture to climate change? What can be done to adapt? climate change? What can be done to adapt?

Analysis suggests that:Analysis suggests that:– For example, in Mexico, maize, which occupies 50% of For example, in Mexico, maize, which occupies 50% of

total cultivated area, is the crop most susceptible to total cultivated area, is the crop most susceptible to climate variability, particularly to droughtsclimate variability, particularly to droughts

Example: MexicoExample: Mexico

BackgroundBackground: : • Economics of CCEconomics of CC• MedecMedec• RIMISPRIMISP• Subnational CC PlansSubnational CC Plans

Key recommendations:Key recommendations:– PreparedenessPreparedeness: Organization, Technical Capacity, : Organization, Technical Capacity,

Information, Early Warning Systems, Hillside MgtInformation, Early Warning Systems, Hillside Mgt– Food SecurityFood Security: Old and New Technology, Drought : Old and New Technology, Drought

tolerance of maize, wheat varietiestolerance of maize, wheat varieties– OpportunitiesOpportunities: corridors, silvopastoral, greenhouse: corridors, silvopastoral, greenhouse

Regional and Country Specific Studies Regional and Country Specific Studies Economic/SocialEconomic/Social

In 2008-2009 financed a series of economic and social In 2008-2009 financed a series of economic and social studies to better understand impacts…studies to better understand impacts…

Overview ReportsOverview Reports: World Development Report, : World Development Report, LAC Regional FlagshipLAC Regional Flagship

Economic ImpactsEconomic Impacts of climate change on fisheries, of climate change on fisheries, agriculture, tourism, hydropower, etc. (Caribbean, Peru, agriculture, tourism, hydropower, etc. (Caribbean, Peru, region-wide)region-wide)

Economics of Low-Carbon AlternativesEconomics of Low-Carbon Alternatives (Mexico, Brazil) (Mexico, Brazil)

Social ImpactsSocial Impacts on income (poverty), migration, health on income (poverty), migration, health (Region-wide)(Region-wide)

Example: Social Impacts StudyExample: Social Impacts Study

By 2050 number of people in water-By 2050 number of people in water-stressed areas in LAC may triple from 22 to stressed areas in LAC may triple from 22 to 76m people76m people– Disproportionally affects the poorDisproportionally affects the poor– Lack of water for domestic consumption and Lack of water for domestic consumption and

subsistence farming may lead to food subsistence farming may lead to food insecurity, health problems, migration, conflictinsecurity, health problems, migration, conflict

Rising sea levels will force migrationRising sea levels will force migration– 40% of Mexico’s population lives within 10 km 40% of Mexico’s population lives within 10 km

of coastof coast

Aumento del Nivel del Mar 1 a 5 metros en diferentes zonas costeras de México

Campeche Veracruz

Q. Roo

Tamaulipas

World Bank in LACWorld Bank in LACFinancing for AdaptationFinancing for Adaptation

Hurricane-proofing public buildingsHurricane-proofing public buildings -- schools, hospitals, other -- schools, hospitals, other essential services -- in Eastern Caribbeanessential services -- in Eastern Caribbean

Improving dike system to handle Improving dike system to handle sea level rise and salt water sea level rise and salt water intrusion intrusion – Guyana– Guyana

Watershed stabilization and reforestationWatershed stabilization and reforestation – Haiti – Haiti

Using wetlands as tool to Using wetlands as tool to combat sea level risecombat sea level rise – Mexico – Mexico

Managing coastal zonesManaging coastal zones through land use planning (DPL in Mexico) through land use planning (DPL in Mexico) and pollution management - Argentinaand pollution management - Argentina

Training and equiping health providers to deal with Training and equiping health providers to deal with increased increased incidence of vector-borne diseasesincidence of vector-borne diseases - Colombia, Brazil - Colombia, Brazil

LAC portfolio: 6 activities, over $28.3m

World Bank in LACWorld Bank in LACFinancing for MitigationFinancing for Mitigation

LAC portfolio: ~ 130 activities, over $2.8b

Transport: Transport: Regional Air Quality and Sustainable Transport (Mexico, Brazil, Regional Air Quality and Sustainable Transport (Mexico, Brazil, Argentina $20m)Argentina $20m)Urban transport projects in most large cities-Rio,Sao Paulo, Buenos Urban transport projects in most large cities-Rio,Sao Paulo, Buenos Aires, Lima, Santiago, Federal District of MexicoAires, Lima, Santiago, Federal District of Mexico

Energy Efficiency: Energy Efficiency: Supporting introduction of compact fluorescent lighting, appliances, Supporting introduction of compact fluorescent lighting, appliances, air conditioning, new building codes (Argentina, Mexico, Brazil)air conditioning, new building codes (Argentina, Mexico, Brazil)Reducing losses in transmission (Honduras, Uruguay)Reducing losses in transmission (Honduras, Uruguay)Technical Assistance to reform policy and regulatory framework to Technical Assistance to reform policy and regulatory framework to encourage energy efficiency (Nicaragua, Honduras, Dominican encourage energy efficiency (Nicaragua, Honduras, Dominican Republic, Ecuador, Uruguay, Argentina, Guatemala)Republic, Ecuador, Uruguay, Argentina, Guatemala)

RenewablesRenewables: : Mini-hydro power plants, off-grid rural electrification throughout Mini-hydro power plants, off-grid rural electrification throughout Central America, Peru, and the entire region; wind in ColombiaCentral America, Peru, and the entire region; wind in Colombia

World Bank: Carbon Finance in World Bank: Carbon Finance in LCRLCR

Emission Reduction Purchase Agreements in RegionEmission Reduction Purchase Agreements in Region

Total signedTotal signed: 36 : 36 Total valueTotal value: US$ 126.3m: US$ 126.3m

Total reduction in tCOTotal reduction in tCO2e2e :20.3m:20.3m

Argentina1%

Bolivia2%

Brazil24%

Chile8%

Colombia8%

Costa Rica2%

Ecuador5%

Guatemala6%

Guyana3%

Honduras 4%

Mexico24%

Nicaragua1%

Peru4%

T&T0%

Uruguay8%

World Bank in MexicoWorld Bank in MexicoFinancing for Adaptation and MitigationFinancing for Adaptation and Mitigation

Policy:Policy:Support to GOM's Climate Change Programs: DPL $501mSupport to GOM's Climate Change Programs: DPL $501mEnvironmental Sustainability DPL $700mEnvironmental Sustainability DPL $700mREDD strategy under the Forest Carbon Partnership FundREDD strategy under the Forest Carbon Partnership Fund

Transport:Transport:Climate Friendly Measures in Transport $5.8mClimate Friendly Measures in Transport $5.8mDF Insurgentes Bus Transit CorridorsDF Insurgentes Bus Transit CorridorsUrban Transport Program $700m (IBRD SIL, IBRD DPL, CTF)Urban Transport Program $700m (IBRD SIL, IBRD DPL, CTF)Sustainable Transport and Air Quality $5.4mSustainable Transport and Air Quality $5.4m

Energy EfficiencyEnergy EfficiencyFIRCO--Energy efficiency in agriculture and rural sectors $60.5m (GEF, IBRD)FIRCO--Energy efficiency in agriculture and rural sectors $60.5m (GEF, IBRD)Efficient lighting and appliances (IBRD, CTF, CF financing) $480mEfficient lighting and appliances (IBRD, CTF, CF financing) $480mIntegrated Energy Services $30m (GEF and IBRD)Integrated Energy Services $30m (GEF and IBRD)

RenewablesRenewables: : Solar Thermal $50m (GEF) --Barrier removal and economic potentialSolar Thermal $50m (GEF) --Barrier removal and economic potentialLarge Scale Renewable Energy--wind $37m (GEF and CF)Large Scale Renewable Energy--wind $37m (GEF and CF)Integrated Energy Services $30m (GEF and IBRD)Integrated Energy Services $30m (GEF and IBRD)

World Bank in MexicoWorld Bank in MexicoFinancing for Technical AssistanceFinancing for Technical Assistance

World Bank Support for Mexico’s Environmental AgendaWorld Bank Support for Mexico’s Environmental AgendaFocus on Climate ChangeFocus on Climate Change

Memorandum of Understanding (MOU) outlines support to:Memorandum of Understanding (MOU) outlines support to:– Promote policy dialoguePromote policy dialogue– Further strengthen capacity to mainstream environmental considerations Further strengthen capacity to mainstream environmental considerations

into productive sectorsinto productive sectors– Support implementation of National Climate Change Strategy and Support implementation of National Climate Change Strategy and

Special Climate Change ProgramSpecial Climate Change Program

Main activitiesMain activities– Methodology to evaluate effectiveness of environmental regulationsMethodology to evaluate effectiveness of environmental regulations– Support to possible establishment of a cap-and-trade systemSupport to possible establishment of a cap-and-trade system– Several sub-national climate change strategiesSeveral sub-national climate change strategies– Energy Efficiency, Water Adaptation, Low Carbon Economy (MEDEC), Energy Efficiency, Water Adaptation, Low Carbon Economy (MEDEC),

Pro Poor AdaptationPro Poor Adaptation– Mainstreaming environment in housing and energy sectors Mainstreaming environment in housing and energy sectors

Thank you