t ~matters Annual Review AT THE WORLD B AN K 1 7632 _~~" *<3 ty [¸¸ toward environmentally and socially sustainable development * Fall 1997 PROTECTING THE WORLD'S BIODIVERSITY In recent years. the world has faced the fact that its development practices have caused severe damage to many of the plant and animal species who share our planet as home, and the ecosystems which sustain us all. At Rio in 1992. countries around the world signed the Convention on Biological Diversity, making a global commitment to conserve, sustainably use and equitably share the planet's biological diversity. The World Bank has created a strategy to help countries as they try.to meet this commitment. 1'he original 'do no harm' approach to biodiversity conservation has evolved-- into a holistic action OR< which looks to help countries protect biodiversity in and o protected areas w the expand and better manage the protected area networks themselves. and to deepen our understanding of the real reasons that so much biodiversity is being destroyed. See Protecting the World's Biodiversity, page 54. AVIRM~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ RV~~~~~~~~~~_rft9 F or thousands of years, the Earth's land, atmosphere and oceans have provided humans with the goods and ecological services we need for our health and survival: food and medicines, clean air and water, healthy soils, pollinatiorn of crops, control of pests, support for our divcrse cultures, and the gift of aesthetic beauty. Now, because of our burgeoning populations, economic growth, and inappropriate choice of tech- nologies, many of these systems are threatened. Human activities are changing the environment at an unprecedented rate. The atmospheric concentrations of greenhouse gases continue to rise, forests, by Robert T. Watson wetlands and coral reefs continue to be lost, and our life-sustaining soils and water are rapidly degrading. WNe are fast approaching the point where the Earth's physical and biological systems will Director, Environment not be able to meet our demand for the environmental goods and services on xvhich we depend. Head, Environment Nations are already facing threats to their growing populations' most basic human development SectorBoard goals: access to adequate food, clean water and energy services, safe shelter and a healthy environ- ment. The poorest and most disadvantaged among us are the most vulnerable to these threats. Since the Earth Summit in Rio, we have made some progress in increasing awareness and developing national plans and institutions to deal with local natural resource depletion and environmental degradation, particularly air and water pollution. But we've made little progress in addressing the global environmental issues. Time is critical: the time scales associated with reversing environmental damage are often decades to centuries, and sometimes, such as in species loss, irreversible. There is the potential for surprises and non-linearities; and the natural rate of capital stock turnover is often decades. If policymakers refer to our imperfect scientific knowledge as an excuse for inaction, the goal of sustainable development will not be realized. The global environment, like the local environment, must be mainstreamed into everyday development decision-making. Yet there is at least one success story from which we can learn. The stratospheric ozone layer that shields the Earth from harmful ultraviolet radiation will not, after all, be destroyed because of manmade emissions of long-lived chlorine and bromine containing chemicals. Today, the global treaty to protect the ozone layer is working: both developed and developing countries have agreed to eliminate all emissions of ozone-depleting gases. This success story presents a number of useful lessons about how to deal with other more scientifically and politically complex regional and global environmental issues, where informed decision-making is required. The ozone treaty is succeeding because of: * sound scientific, technical and economic information; * policy-relevant, but not policy-prescriptive, comprehensive international assessments; * full participation by all stakeholders in the debate: civil society, governments, industry, environ- mental organizations and scientific and technical experts;, * a knowledgeable civil society, informed by a responsible media; * the recognition of the importance of equity within and among nations; * grant financing for developing countries to eliminate their consumption and production of ozone- depleting chemicals; * application of the precautionary principle; and last, but most important, * political will by governments, and individual and corporate leadership. The challenge remains for everybody to address local, regional and global environmental degradation in a cost-efFective and equitable manner, not least those of us in the Environment family within the World Bank Group. NWe have the opportunity, in partnership with governmelnts, the private sector and environmental organizations, to address these challenges. As the new director of environment and head of the environment sector board, I look forward to the work that lies ahead, and the chance to build upon the fine legacy of the previous director, Andrew Steer. Coming into this role, I take to heart what Maurice Strong said in an earlier issue of Environment Matters: "for me the single most important and encouraging development since Rio has been the emergence of the \NTorld Bank under President James X½olfensohn as a leading champion of sustainable development." Environment Matters is a magazine of the World Bank Grmup produced three timeas a year. Each fall features an annual report on the Banks work in the environment. and a second volume containing a matrix of Bank Group Projects vIth relevant envimnmental Welcome to Environmn Matt.ers... ifformation. Visit both volumes on the Bank's Web pge. This fall issue, which serves as our annual review on the environment, looks back on the \½'orld Bank's environmental work from July 1996 through this past June (our fiscal vear 1997 (FY97)). and highliglhts our upcoming challenges and opportunities. Environent and Socbilly sustalnale Devollotmenwt Mowmir unWr The lead article spells out the Bank's strategic direction for the global environment. As Chair: it works to help its client countries reduce povert%; the Bank has already embraced the cmmml Sa geldin paradigm of sustainable development. In the face of the continuing global environmen- tal threat, the Bank is now broadening its commitment to explicitly incorporateglobal/ Rural Family: sustainabilitv as a core business for the Bank Group. Albxander McCalla Social Family: Each of the Bank's operational regions has written an overview of the region's work for the Gloria Davis past vear, taking a close lxok at the accomplishments, lessons learned and future challenges Environment Family: within its own portfolio of projects. IFC and NIIGA have done the same for their work. For operational purposes, the Bank defines the world's regions as: Environment Seclor Board Ainca: Francols Falloux AFR-Africa LAC-Latin America & the Caribbean ECA: Michele de Nera EAP-East Asia & the Pacific ECA-Europe & Central Asia MNA: Saish Darghouth SAS-South Asia NINA-Nliddle East & North Africa EAP: Geoffry Fox EAP: Giofamy Foxermann We also scannied the y ear's work in a series of cross-cutting thematic sections: SAS: Richarrt Ackwnmann LAC: Dennis UshEr Biodiversitv and Natuiral Habitats Pbllution Nlanagement The Global Atmosphere Environmental Mlanagement Ian JohSciensondvisor:(Climate Change and Ozone) Social Development lan Johnson New Indicators of Progress Rural Development Globalroducts Ma agter. hips: Partnerships %Mater Resources Management Newl Products & Partnerships: Ken Ncnb This annual review reflects the experience of staff from all regions, the Environment, Social Development and Rural Development Departments, and IFC and NIIGA. as the! put their vear's wvork and the upcoming agenda into perspective. Environment Mntters is produced by the IhA WoldM Ghok World Banks Environment staff. Ibe Wormd BInk Editorial A Production Tem for Annual -b 1 . X Reviewlssue: florm td - ' laqiuma &Dhit u :um.i.. ,:,y Editor. Production & Circulation Manager: , Clore Fieming .'9S6 u~ Technical Manager: JB. Collier ,, - b . L2Si Editorial A Production Associates: Mergaux * I i:i Biemit, Kailtn Canby, Kriettns Schwsbsah, Jocely¶ Tayior If) * 4JSI ~ - Design: Jim Cntrell, Clore Fleming t iapb_. Desktop A Web publishing: Jim Cantreli I q . Publications Info: 202458-844 .Mrutd(eO;t r General Inquiries: 202.473-641 Department Fax: 202-4774666 Web address: _ Ftnt Cover hm p1wgmw v snmr e hUn lm Rir L Fk4dNVitoMind Printed with soy ink on 1 00% recycled paper; Cover is 50% recyded and totally 1n14 Want Cover. chlorine tree Please recycye. (Iowk1&irA.iwLcxpnl. Cai Corportiu a~~~~~~~~~~~Cvr Inside BaokC Owr lt terlies. Kristine Schwebach 4 The World Bank Group 1818 H Street. N.W. Washington. D.C. 20433 contents ANNUAL REVIEW * FALL 1997 esfsectioes I Overview 4 1~~~~~~~~~~~~~~~~~~ Regional Reviews ferV Oiiew Given the direct link between poverm Atria * 8 - reduction and the continuing degradation As Africa's environmental portfolio grows, - I ! of the global commOls, the Bank is ' s * - Ffs sr ~~~~~~~~~~~~~broadening itsenvironmlental coiiiniitment increasing regional cooperation and sharing on b3oaeninits encirponatal ommitment best practices across national borders is _ to epbcilic thc gubainail- becoming a prioritv. it, embracing the global environment as - *| R t J' ' ..*. _ part of its core businiess. East Asi NW the Pafs 12 With their environments straining from a decade of rapid economic growth, the Asian Thematic Reviews 'Tigers' are setting priorities to continue rapid growth along more sustainable lines. Helping CotIe Build Capeelty ftr Sustm ble Develop.I t 36 Since the Earth Summit, the Bank has sharply stepped up its help to its client countries as they work to Eurfope mld Cenalt I ArniE 1H build their capacitn to implement true sustainable development. As countries continue their economic *svIbEing mimi Dswvebpmut 3J transition and look toward the European In its revitalized rural action program for poverty reduction, food securitn; and sustainiable natur.l l.Tnion, they are working to avoid past resources management, the Bank helps countries improve rural strategy and policy formulatiol, environmental mistakes and strengthen their irrigation and drainage, natural resources management, rural finance, and land reform. environmental capacity Ne Dleon In Sgoll D1vokpm 40 Lafn A _m a & the C I en 20 The Bank has moved to a social agenda which promotes community-based development, indigenouis As the number of urban poor continues to organizations' capacity and public consultations, reaches out to a host of new stakeholders, and helps grow, the region seeks to balance improving counitries as thev move frum conflict to peace. the urban environment and protecting natural resources. Ozn ma okwPetw42 The MIontreal Protocol is viewed, ten years on, as an environmcntal success storm: To mainitaini that success. countries nust reinforce their commitment to eliminating the production and use i ouzo.ne M uke Eat and North AMrl 24 depleting subsrances. Nlanaging scarce water and land resources and controlling urban pollution continue to ml in enu g Clma Change lead the region's environmental agenda. To meet the Climate Change Convention's objectives, nations will have tii improve energy efficiency and reduce their reliance on fossil fuels. The Bank has intensified its efforts to hel.p couiltries in this work South As1 20 thrmugh a spectrum of initiatives. The links between poverty and environmental ub_t-- o-lng E m enn valuAtIon degradation focus the region's priorities on The Bank continues to pioneer new tonol for v;aluing the real, long-term economic etTects I it cleaner cities and decreasing threats to environmental management, and to mainstream them into its regular lending program. ecosystems, especially in rural areas. Partnvhle Sin Io 48 _ _j |1p.uflm~ Flno_~ The Bank is building a vast new range nf partinershiips, resulting in increased techinical corperation, CoMepratlen 32 innovative alliances with NGOs, and complex initiatives with mixed groups of stakeholder%. Private sector investment in sustainable development will likely increase: it is good The E Iro iiEieUb Dnimnaoin In Water Resources Emnegeniet so business.lo supponts thlkyira:tis throu ghnrod, The Bank is helping countries head off the world's emerging water crisis by shifting from traditional financial intermediary lending, and environ- water management to onie which views all water resources as a management continuunm. mental investment funds. Tom Effeve h on Mmnngm nt 52 Protecting human populations and fragile ecosystems from the harmfuil effects of uicnntrolled pollutinn Mt a Clue IHI is essential to pmmoting and maintaining sustainable growth. What's New at the Bank, fttgng the WOiH's Hldvwsi 54 In its biodiversiti strateg%; the Bank is committed to helping countries preserve species re-iding outside iling IJt 3 protected areas, expand and consolidate protected area network, aind dcsign and implemilent effective policies and incenitives to reduce biodiversity loss. PVbIbGthol 59 B CLLAGHAN 3-_v e r vlew:X 4:r < t X ur Global Environmnnt by Robert Watsor, Directo# Environment DepartmWen Today, five vears beyond the Rio Earth habitats and overusing chemicals, provide have started to affect the global environ- Summit, humankind's greatest challenge everyone with clean water and sanitation, ment, wih potentially devastating conse- is to provide an equitable provide energy services to stimulate eco- quences for today's and future genera- Why standard of living for every- nomic growth without degrading the tions. Is one in this and future genera- land, air and water, develop safe unpol- tions: adequate food, clean luted cities, improve health care, provide Today, the miajor global environmental the water and energy, safe shelter, education, especially for girls, and help threats are climate change, biodiversity a healthy environment, countries gain and use the knowledge they loss, stratosphericozne depletion, deser- G l o ba I education and satisfying need to accomplish these goals. tification and land degradation, degrada- work for all. To tion of fresh and marine waters, and the Environment accomplish To achieve this vision of a healthy, pros- destructionofforests.Themfiorethan 150 this, we need to perous planet, we must ensure that the countries that gathered at Rio five years Significant? significantly earth itself, the atmosphere, hydrosphere ago considered these threats significant reduce abject and all natural ecosystems, remains a enough to negotiate global Conventions poverty, double food production in the healthy life support system (Box, page 6). for four of them-climate, ozone, biodi- next 35 years wvithout converting natural But around the world, human activities versity and desertification. 4 ENVIRONMENT MATTERS * FALL 1997 At the national-level, -e have seen a highly stan sntific and policy interlink-- ments to regulate the use of water, bio- positive shift toward environmental=re- ages, so that thev candress these global logical resources and energy; and lastly, sponsibility, with a third of the World environmental issues in a more holistic t failure to consider the long-term con- Bank's client countries implementing na- and synergistic policy framework. sequenes of economic development ac- tional environmental strategies. But tivities. progress on the global level has been dis- The challenge will be to identify win-in - appointing. The atmospheric concentra- interventions, that simultaneouslyIaddress If ' economic development is to become tions of greenhouse gases have continuYed multiple global and local/regional envi- truly,sustainable,agreat shift is required. to increase (about 1% per year), natuiral ronmental issues while they meet imme- Countries will-n1eed to correct these mar- habitats continue to be lost (wetlands and diate human needs. For example, cost-ef- ket, -policy institutional and knowledge forests are still being lost at about 0.5% to fective renewable energy technologies failures; and people will need to make a I% per year), and soils and waters con- need to be developed to meet the growing major change in attitude. -It will also re- tinue to be degraded. Except for "the demand for energy while minimizing the qure fundamentally new ways of account- phase-out of ozone depleting substances threat of local-togobal environmental ' ing for the enviromnent as an economic which destroy the earth's protective ozone degradation. It is equaly important to good and reflecting this in. national ac- shield, at the global level we are not avoid win-lose initerventions thataddress counts--Govermentsand industries must achieving our objectives. one global enviroim-ental-issuebut cause recognize that there is no ultimate di- harm in another arena. chotomy between sustainable economic The Link Between National Agendas aind the Global Imperative -__ The conditions of our global ecosysterms "These [responses to global environmental issues] are not fringe need to be viewed in the context of ewrry country's national and sub-na:tion al agen 0 - activities.They are central to meeting human needs and reducing das. They reflect the aggreto-n o l poverty. I wholeheartedly commit the Bank to do all it can to forge a practices§and national policies, and mani- global partnership to promote equitable approaches to global environ- fest themselves locally, nationally, and re- gionally: urban air pollution, degrae -d mental issues, and to do so quickly.Time is not on our side.This agenda water, the Loss of agricultural productiv- cannot afford to wait." ity The bulk of the work required to re- spond.cto these global problems, reflected James D. Wolfensohn, World Bank President in the global treaties, must happen at the subregional, country, and local levels.Un- til this happens, the global environment- = will continue to degrade, and lacal com- munities wil feel the impact nt- What LiesBhid growth3and environmental protection, and ately, in most cases developing countries Continued Environmentat that the environment can no longer be are more vulnerable to these global envi- Degrdation? viewed as a luxury Governments need to ronmenta--issues than developed coun- stimulate environmentally sound fnarket tAS tries. ---:t ~ i - In spite ofcountries' ommitment to clean behavior by creating an enabling policy up the environment, it 'ontinues to de- environment and an appropriate national These global environmental issues are grade because of: the increased demadd and international regulatory framework. -Xnosrmally thought of as isolated issuets, I i nowrm hoght as isolateissues; for water, biological resources-and energy Citizens ne to be empowered, partner- however,ithere -are- strong scientific,and pocy in.erlinkages among them, and be- '' services as a result of economic and popu- ships need to be created, knowledge needs poficy ii-te4pakages among them, and be- .---- ---= - f= tween thlemf 'and local/regional e.nviron- lation growth; the failure of markets and to be developed and shaved, and financial mental issueFor examp}le, the comims- governments in their national income ac- resources need to be nbilized. tion-offossil fes,particularly-coal, is not cuntingto recognize te true value of only the major SOU fm e atmo- natural resources (water biolocal re- Much remainsto .be done: only by fully spheric carbon dioxide, which is a key sources) and the cost f environmtental inte-' ing economic and environmental greenhouse gas, but is also responsible degradationY the failure to appropriate the concerns.into the development process at for increasing the atmospheric abundance regional and-gIbal values of natural= r the local national and regional levels will of fine particulates, air oxidants such as 'sources to the local level; the failure to the vision of environmentally and socially ozone, and -acid deposition. It is critical, internalize environmental eernalities sustainable development at the global level therefore, that ke-y stakeholders under- into market prces; the faire of gover- ' be realized. ANNUAL REVIEW -JULY 199-JUNE 1997- (FY9'- 5 The World Bank' Emerging I * -WA :1 s1C.1 m;l -e I X I l;I.l, ,ll s. m . _ Role in Global Sustainability AFR EAP ECA LAC MNA SA Total The Bank's primarv role is to help coun- Brown 168.7 2126.4 1611.5 1715.5 331.1 810.6 6763.8 tries reduce poverty. To do this effectively, Green 446.4 707.1 284.2 1141.0 382.5 894.9 3856.1 it has already embraced the paradigm of Institutional 128.8 212.0 128.0 425.1 6.0 108.8 1008.7 sustainable development. In the face of the Total 743.9 3045.5 2023.7 3281.6 719.6 1814.3 11628.6 continuing global environmental threat,\ 00 ;0 ctu go evr, Brown: Pollution, Urban Green: Natural Resources and Rural Institutional: Environmental Institutions it is timely that the Bank should now broaden its commitment to explicitly in- -e _e &I *mN - e corporateglobal sustainability at the fore- front of its assistance strategy. Given the AFR EAP ECA LAC MNA SA Total direct and significant linkage between do- Brown 6 17 12 12 5 6 58 mestic welfare and poverty reduction and Green 21 8 7 1 8 8 17 79 the degradation of the global commons, Institutional 8 4 2 10 1 4 29 the global environment must now be re- Total 35 29 21 40 14 27 166 garded as a corc business for the Bank Group. andthatenvironmental decision-makingrec- The Bank's Global Today, the Bank is one of the implement- ognize the significance ofa healthy economy Environmental Strategy ing agencies for the Montreal Protocol The Bank's work in helping its client and the Global Environment Facility, countries alleviate poverty and attain their In line with the measures outlined by which have become effective financing development goals can only have real President Wolfensohn at the United Na- mechanisms for global environmental is- m w c t ations General Assembly Special Session . . . ~~~~~meaning whlen countries are also able to sues. In addition, the Bank is the largest help redress global environmental prob- on the environment in June (Box, page 7), financier of "targeted" global environ- lems This is particularly important given the Bank is developing a forward-look- mental projects, with an active portfolio that developing countries are, in most in- ing, coherent corporate strategy which: of 166 projects with a funding level of stances, much more vulnerable to global $11.6 billion. But to be even more effec- environmental degradation than devel- proactively supports the objectives of yive, it must "mainstream" global environ- oped countries. To this end) the Bank can the global environmental Conventions; mental concerns into its regular lending contribute its comparative advantage: its integrates global environmental issues and non-lending services and take on a economic and technical expertise, its glo- into relevant economic and sector work major intellectual and policy leadership bal "knowledge partnership" and its re- such as energyv, agriculture, forestry role. Mainstreaming is a two-way street: source mobilization capacitv in conjunc- and water resources, and into Country it requires that economic decision-mak- tion with the private sector and other fin- Assistance Strategies and policy ing focus more on environmental issues, anciers. instruments, using the global overlays methodologies (page 44) and sectoral environmental assessments; prepares greener national accounts for 6~~~ELEMENTS ENVIRONMENT AATTERS HEALTHY LIFSPPORTSYSTEHa number of countries to reflect depletion and degradation of natural * Theaim spher proides hositabe cliate or huans nd cotrol theresources and pollution damages; viablit an disribtio ot colgicl sytem. Te uper tmopherc oonedevelops new market-driven opera- layer protects us item vun~~~~~ toutatru'i, tional products such as the Global * Thehydropherecontrls th Eart's cimate the eograhic dstribtionCarbon Initiative; ecological systems and human activities; and expands training courses in the Bank's Economic Development Institute and * Terestial,maria ad frshwaer eosytemsprovde awid rane ofbeneitsLearning & Leadership Center for its marketplace nclude food,wood, energy medicine% ad ecotourisstaff and its partners; are nt diectlytradd inthe mrketlace in. coloicalexpands our work with the private and enewl ofsoi andsoilfertlit, polinaionof cops nd nturl veetaton,sector to promote practical business contol o agnultual psts,seeddisprsal a gne pol fr agiculuralaridopportunities for sustainable develop- medicnal poducs, puificaion f airand wter,contrllingthe arth' climte,nent;, and protctin ofwatr ca mets~ etoifiatio an decmpoitio ofwasts, ridjoins others to promote higher protection of coastlines from waves. In ad& havestandards of environmental and social cultura, reliious, esthetc, andintrinic exitence alues,performance for private and public investments around the world. 6 ENVIRONMENT MATTERS * FALL 1997 7~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7, 7 .'~~~~~~~~~~~~~~~ - # t;0~~~~~~~~~~~~~~~~7 />on7 ACTIONS FOR THE GLOBAL ENVIRONMENT | _ In June 1997, at the United Nations GeneralAssembly Special Session on the environment, World Bank President Wolfensohn announced the following set of actions the Bank supports to protect the global environment. C&nate Chang The Bank is exploring a broader strategic partnership with the GEF and other financiers to increase the competitiveness of renewable non-greenhouse gas emitting technologies ; and is willing to launch a Carbon Investment Fund should the Parties to the Climate Change Convention find this useful, to support the efforts to reduce the overall costs of limiting greenhouse gas emissions and to provide Bank client countries every opportunity to obtain an equitable share of the cost savings and access to more environmentally benign technologies. (page 44) Bio,y abd The Bank is developing strategic partnerships with NGOs and industries to help conserve biodiversity and establish markets for forest and marine products which are produced in a socially and environmentally sustainable manner. The Bank and WWF, for example, are joining forces to support conservation and sustainable management, with third party certification, of tens of mil- lions of hectares of tropical, temperate, and boreal forests. (pages 54 and 57) DsDegnanDwvon The Bank is willing to assist the Desertification Convention through a revitalized rural strategy emphasizing the links between poverty and land degradation; by integrating and mainstreaming best practice in land management/degradation programs; by integrating land management issues in Country Assistance Strategies, economic and sector work and National Environmental Action Plans; by designing and conducting training programs in drylands management; and, in partnership with others, by supporting and developing collaborative methodologies and procedures to mobilize and coordinate financing. (page 38) The Bank is committed to supporting the Global Water Partnership, which offers an opportunity to solve water issues in a more holistic way; the Vvorld Commission on Large Dams, which will help to raise standards for all large dams; and the regional seas programs. The Bank expects to lend about $3 5 billion over the next decade on water, following the Dublin Principles. page 50) X) OzoneDe The Bank, in collaboration with the Russian government and industries, has developed a plan to phase out all chlorofluorocar- bon production in Russia by the year 2000, in order to eliminate CFC black market smuggling which is undermining the effectiveness ofthe Montreal Protocol. (page 42) ANNUAL REVIEW.- JULY 1996-JUNE 1997 (FY97)7 Africa Region n the late 80s, MLadagascar's diversified environmental management government and the international projects, increased the number and community became weary of the proportion of projects requiring Envi- accelerated loss of its natural ronmental Assessment, and strategized heritage. This once lovely island had new directions for more deeply been called Green Island (Nosv mainstreaming environmental concerns Manga); but, witli the primary forest into its countries' economic development. disappearing and soils rapidly eroding, Sub-Saharan Africa's largest island had In 1996, to support these efforts, the become the Red Island (Nosv NIena). Bank worked with countries in the In response, the Nlalagasv Government region to create a comprehensive action and the international donor community plan.' The key stakeholders have begun created a National Environmental to implement this plan by: Action Plan (NEAP) and put in place the right institutions to manage environ- * tailoring a sub-regional approach to mental matters, protect ecologicallv Benin, Burkina Faso, Cote d'Ivoire, sensitive areas and support local Ghana, Niger, Nigeria and Togo initiatives. Large tracts of land have (Box); now been reforested and manv reserves * holding a series of seminars with are now properly managed. Although a African decision-makers; lot more needs to be done, the govern- * "upstreaming" Environmental ment and civil societn have created a Assessment and completing a structure to channel assistance to the number of sectoral Environmental local stakeholders, where these resources Assessments; and matter most. * expanding and diversifying the field- based networks that interact with the This crisis is not unique to Nladagascar. Bank (MELISSA-). The entire Sub-Saharan African region, which serves as home to the world's The EIWmhI mtl Projdet fastest growing population in both rural piortfdlo and urban areas, depends more on its There has been a remarkable surge in environmental resource base for its the number of Bank-supported environ- | economic and social needs than any- mental projects in the region this past where else in the world. With the year, with 8 new national projects and environment rapidly degrading one sub-regional project. During fiscal throughout the region, all Sub-Saharan year 1997, 35 environmental projects countries must grapple with the natural resource management imperative Enwironment Projeft Active During FY97 Niadagascar faced. And thev must do it S milna hand in hand with the political, social and economic realities whichi drive their overall development. EbL NIX MeeDtlui the C si.leuue, Five years beyond Rio, the region can highlight several notable achievements. NO" It has increased the number of projects -1 supporting national environmental planning efforts, created a strong a _ impetus for local environmental action, IBRWl1DA=S74 million; GEF=S121 million 8 ENVIRONMENT MATTERS * FALL 1997 forests and gcnerate su5tainable incomc ENVIRONMENTALLY SUSTAINABLE DEVELOPMENT from these resources. Burkina laso, = WEST CENTRAL AFRICA'i\ali and other Salhelhain countries are In July 1996, Cote d'lvoire hosted a workshop inYamoussoukro, where an unprec- preparing similar projects. edented group of over 100 representatives of environmental ministries, the private The NMining Capacity Building Project sector, NGOs, finance and planning, and the media gathered to create a forum, to in Burkina Faso is building the enable countries to make their own responses to national and sub-regional government's capacity to effectively environmental problems, and to share individual country strategies for environmen- develop the private mining sector. The tally sustainable development. project also strengthens environmental management capacitv in the mininlg National issues included capacity building, training, awareness and education, sector and, more hroadly in implelmenlt- integration of environment in planning and budget processes, and stakeholder ing the country's NE AP participation in environmental policies and programs. Sub-regional discussions This past ,ear, Came covered data management, information exchange, and managing the coastal zone, NEAE and Mali, Senegal and Zimha transboundary parks, rangelands, forests, and biodiversity conservation. bh-e made good prognrms in theirs, usinlg The emerging Declaration of Yamoussoukro outlined the participants' conclusions a highly participaton Ipproat A total on priority environmental problems and needs, announced countries' priority actions, and presented recommendations for action on sub-regional issues. Countries have continued the momentum from the meeting. Ghana and Benin are holding a workshop on Environmental Information Systems. In November, Nigeria and Benin will support two substantial EA technical training programs. Benin, Niger and Burkina Faso are meeting on transboundary issues, particularly the 'W' park ecosystem. Niger and C6te d'lvoire, drawing on Ghana's experience, are spear- heading an initiative on mainstreaming environment in planning and finance. The UNDP/GEF and the World Bank collaborating on sub-regional coastal zone management issues. wvere in the Bank's regional portfolio. In Comoros and Mauritania, two new The portfolio's pollution and urban projects relate to agricultural develop- environmental management projects ment. The C6te d'lvoire Rural Land help control urban health problems NManagement Project will increase land associated with poor wvater and sanita- securitv nationally; starting with the tion conditions. The natural resources/ most urgent activities in the "Front rural environmental management Pionnier" (pioneering front) area, wvhere projects focus on sustainable manage- coca and coffee farmers destroy the ment of forest and wildlife resources, hunmid forests to plant more export- agricultural lands and fisheries. Institu- oriented tree crops. The Senegal tion building projects are designed to Sustainable Traditional Energy help countries develop and implement Mlanagement Project builds on NEAPs and Local Environmental RPTES (Review of Policies in Action Plans (LEAPs). The total Bank theTraditional Energy Sector) yh support for these proj'ects is $744 million helping local comnmunities manage their out of a total project cost of $1.8 billion. woodlots, plantations, and natural ANNUAL REVIEW - JULY 1996-JUNE 1997 (FY97) 9 CD biaea ae adian, r of 27 countries in the region now have Reflecting a high priority on environ- environment interface (Box on NEAPs. mental monitoring, the Bank assisted Ghana, page 9); the six Congo Basin countries in Develop in-country ownership of Environmental Components in preparing the Regional Environmental their environmental solutions; the Investment Portfolio Information Management Project Improve the environmental portfolio; The Bank has continued its environ- (REIMP) (see Box, above). Launch and implement LEAPs, mental review of all Bank-financed especially in countries with an projects in the region. Environmental The Challenges Ahead environmental management frame- Assessments were prepared for sensitive The Bank's continuing contribution will work through NEAPs; projects, of which the Ouagadougou help the region's countries: * Better integrate environmental WVater Supply, the Lesotho Highlands concerns into strategic planning, Water and the Chad-Cameroon Deepen the holistic approach to including in the Bank's Country Petroleum Development Projects are environmental management, with Assistance Strategies or Country in advanced preparation stages. increased emphasis on the people- Economic Memoranda; * Improve Environmental Assessment, upstreaming it earlier in a project's life, and emphasizing sectoral and regional/cumulative assessments and assessments for structural adjustment ~~T!Tr~Ma programs, now subject to the same ;W ~ ~ ~ ~ ~ ~ ~ ~ . -. -categorization as other Bank activi- _ ~~~~~~~~~~~~~~~ties; * Implement win-win solutions such as environmentally sustainable tourism, like the Bank Group-supported programs now in place in Ghana, Kenya and the Comoros. The Bank recently introduced an innovative capacity building initiative to the region. Next February, a pan- African meeting in Nairobi will gather representatives from governmental < ~ ~ ~ ~ ~ ~ ~-and non-governmental organizations, I6 the private sector, and donors at a 10 ENVIRONMENT MATTERS * FALL 1997 The Environmental Project Portfolio Bank Total Counitty Project Name FY (Sm) Cost Rocgional Community-Based NRM- 96 7 13 t Burkina Faso, Cote cOvoire) _*______lr___ Regional Lake Victoria Env Mgt 97 35 78 (Kenya, Tanrarra. Uganda) Angola Lobi!o-Benquela Urban Env. Rehab 92 46 59 Ber.n Environmental Management 35 8 9 Natura! Resources Management 92 14 24 Burkina Faso EnvirorinlalrAanegement 91 17 25 Urban Envrnment 95 37 40 BurtriAr Energy Sector Rehabilitation 91 23 23 - j'" Cameroon Brodivers-y Conservation and Mgt 95 6 12 ; . - - CEntral AfricanRep Natural Resource Management 90 19 34 - Ccngo Wildlands Protection and Mgt 93 10 17 = Ccte DOlvoitr. , Rura; Larid Mgt. and Intrastrecuure Cev 97 45 65 Eritrca Bodhersity Strat.. Action Plan & NatI Repor: 97 028 028 Gabon Forestry .and Environm9nt 93 23 38 Endangered turtle shell, illegal to import in -------------- - ---_-_- - ------ -_--_-_-_----- __ -~ - most countries (under the CITES Agreement), Gambia Capacitvy Idg En Mgt.-Technrcal Assist 94 __5 forsaleinZanzibar, Tanzania. Ghana Ccastal Wetlands Management* 93 7 8 Environment Resource tAanagement 93 18 36 Forest Resource Management 89 33 65 conference to set the stage for an - ____________ - ________- - ~Environmental Assessment capacity Kenya Biodiversity Srat Action Plan and Nat'l R pcrt* 97 016 0 168 Forestry Development 01 20 65 building program for Sub-Saharan Lake Victoria Environment 97 13 13 Africa. Protected Areas and Wildlife Services 92 61 143 -3na River Natiora. Primate Reserve' 97 6 7 A d a __ _ .__ _ -__ ~~~~~~~~~~~Admmn1strative decentralization and Madagascar Antananarivo Plain Developrnent 90 31 69 local environmental management are Ersvrnnmert II Prol"ct 97 30 155 Ervironment Program 90 26 86 gaining momentum in the region. Environrnent Program Support' 97 21 155 Through a strong network of environ- Malawi Environmental Managerrent P oiect 97 12 14 mental planners and communes Fisheries Developmert 91 9 16 throughout Africa, commune-to- Lake Malawi Nyasa CBodversity Conservation' 95 5 5 commune cooperation will play an Mail HouiSehotd Ene-gy- 95 3 11 important role, complementing funding Natural Rosource Management 92 20 32 from the European Union, World MvVai.rilnia Rainfed Natural Resource Mana ,ement 97 14 24 Bank, and Governments of Norway and Water Supolv 92 11 15 _ Sweden. Miaritius BiodiversityRe-toralion' 96 1 2 Environmental Monitor ng and Dev. 91 12 21 Sugar Bio-Energy Tecrhnology' 93 3 55 -- Sugar-Bio-Energy T ~ - - -- --_ _ ___- 9 _ World Bank, "Toward ESD in Sub-Saharan Mozambique Transfrontier Conservatior Areas Pilot' 97 5 8 Africa: A Norld Bank Perspective" Washington, D.C. 1996. Niger Energy 88 32 79 2 Examples are NESDA for NEAP preparation Natural Recource;s Managemne.nt 96 27 42 Eape rprto __________--- --__________ Ma Q 96 27 42- professionals. RAFEEN for environmcntal Senegal Sustainable and Pancipatory Energy Mgt. 97 5 5 economists, and MELISSA for local environ- Su31a nable and Participatory Energy Mgt 98 5 19 mental planners and practitioners. MELISSA --- - - --h:0SBdesiyCneatn - piePllto*9 - (Managing the Environment Locally in Sub- Seychnlrlles Biodiersity CoosEervatiron & Marint Poljt oT r 93 2 2 Saharan Africa) is a joint Bank-European Union Eriviror,rnenit and Tr ansport 93- . - - - .______ _ 5 7 initiative to promote and facilitate local Tanzamna Forest Resources Management 92 18 26 environmental planning and management. LaYle Victoria CEvironmcnt 97 10 10 River Basin Mgt. of Smallholder rIragatior, 97 26 31 _ Global Environmental Facility. Toro Lome Urban Dev_opmen_t 94 26 29 M' Montreal Protocol (includes several sub- Jganda Bwindi & Mgah nga Nat'l Parks Conservation* 96 4 6 projects). Environmerntal Mgt Capacity Build'ng 96 12 23 Lake Victoria Evironment 97 12 1 Lake~ Victoria Envirnmen 97 ~ ~ ~ ~ ~ - ~ -- - 12 12 ~ ~~ ~ ~ Thisarticle wvas written byJean-RogerMeercierofthe Zamb,a Environment Program 97 20 40 Bank'sAfrica Region, (202) 473-5565, Fax (202) Zimlmabawe ODS l" 94 1 1 473-7916. ANNUAL REVIEVV * JULY 1996-JUNE 1997 (FY97) 11 I\ / East Asia and the Pacific Region he 'Asian Tiger" is substantially emissions. In China, the priority is to more powerful today than it was control air pollution, particularly five years ago. The East emissions from domestic coal-fired Asian region has seen unpre- cooking and heating facilities, small .__ 0 E . l l . .cedented economic growth since coal-fired commercial boilers for the 1992 Rio Earth Summit. WNTith 40% heating and steam generation, and of the world's people living in the motor vehicles. . l .l..region, this remarkable achievement has global significance. The region is a rich storehouse of terrestrial and aquatic biodiversity; but . l |N .But the regional picture hides enormous the region's countries also face intrac- X . EE,idisparities from country to country. table natural resource management X___ lj~ E .China, with the greatest record of problems. These problems are difficult X ________ ig, |sustained annual economic growth in to address because of political disinter- story, ill have the world's largest est, land rights and tenure questions, y = _ > i economy manext 15-20 years. On the limited operating funds and suitably ther hand, some of the world's smallest trained staff, and the power of vested and slowest developing economies are interests. Some people believe that these nestled in the Pacific Islands. problems will only be solved in the long-term, when exploitation becomes le countries' environmental conditions unattractive because uncontrolled o show an enormous disparity, and income from these resources declines. economic success has not guaranteed a healthiy environment. China faces some Meeng the Chaleges of the worst air and water quality and To create the needed balance between environmental management problems in economic growth and environmental the world. The cost of poor air qualityan sustainabihito in the region, the first step yen large Chinese cities could amount is to convince East Asia's political _g:z ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~edr that efetv en reouceoonttckalentanirnmn to as much as a fifth of the cities' income,tha e ive ev en ±it 66,000 people dying prematurely management must be part of their every year becausetof poor aior qualitnational development agendas. Over the -1_s_ x _g_ tod~~~~~everv vear ecauseofprair quaitutn.Bu __; ;; In southe~~~~~~~~~~~~~~~~~~ast Asiv,te clearpirt s, all pefracehoughotre thaergo Unless economic development is alsolatfvyer,llcurishe envirnmentall accesustocleainaurbl theneco-registered at least some commitment to nomic costs of the resulting environmen- te environment,r evronmen- tal dmage o humn heath an thetal management agencies, legislation, tal damage to; humanphealth and theand/or environmental action plans. ln natural resource base will continue to be 1994, the Association of South East signifiat Asian Nations (ASEAN) issued a In teir rivetowad ecnomi devlop- declaration which provided a basis for Iental thei drgivetoar counomiestckdvlp future envi71ronmental coordination ment,all he reiorf counrieslackthroughout the region, reflecting the sufficient economic and human capital nations' heightening political awareness. resources to attack all their environmen- tal problems simultaneously. They must Some countries, with a high level of set priorities and make trade-offs. environmental commitment, have begun to develop effective institutions. But In southeast Asia, the clear priority is to performance throughout the region increase access to clean urban drinking remains patchy, and financial commit- water and control water pollution by ment for envilronmental improvement z prvding effective domestic sanitation remains far below what's needed to and controlling industrial wastewater maintain the status quo, much less to reverse past trends. 12 ENVIRONMENT MATTERS - FALL 1997 Environmental institutions in the region A biological "trickling" are becoming more aware that the Am& approaches developed countries used for being installed in a yogurt environmental management cannot factory in Guangdon necessarily be applied wholesale and ince,China. Many unmodified to their own countries. They al poc add are looking to adapt these experiences, agricultural projects add and approach their problems from as vleto agricultural many angles as possible rather than products close to their focusing only on what might he called the "environmental sector." point of production through agro-processing. The Environimental Project Portfolio R CROOKS The Bank shares this view, as its The Ban sare tis ie stsor industrial pollution con rol, or which river basin management agencies on assistance to the region indicates, have indirect environmental benefits, several river systems in Java. During the last five years, its regional like solar home system installation in support has been balanced between remote rural areas. Of the eight natural resources manage- direct investments in environmental mn N M rjet nter oa iment (NRM) projects in the regional l The Bank's supporting role in building portfolio, four are in Indonesia, reflect- ment and investments in sectors like environmental institutions in the region ing the significance of that countrv's urban development and pollution I wll likely contiue but on a more natural resource base and the threats it cointrol with s ignficant and direct w. kl otnebto a more contro with significanthand direct limited scale, given the availability of is facing. 'IThere are two NRM projects environmental payoffs. bilateral agencies' grant-based financial in China, and one each in Laos and the support, and the institutions' limited Philippines. Four of these projects Of the lending for the 29 active Bank- absorptive capacity. The number of new directly address watershed management supported environmental projects in the Bank-supported environmental institu- and erosion control, although virtually region this past fiscal year, one third, tional development projects declined all Bank-supported water resources about $1 billion, has been for environ- from four in fiscal 1995 to two this past developments in East Asia handle some mental institutional development and fiscal year. To complement these activi- watershed management. The largest natural resources management, and two ties, the Bank has promoted more NRM project is China's Loess Plateau thirds, approximately $2 billion, for broad-based sectoral approaches to Watershed Rehabilitation Project. The projects providing significant environ- environmental management, by helping total project cost of about $260 million mental improvement as a project establish and develop other institutions covers only a five year time-slice of a objective in sectors like urban sanitation which also have a role to play in envi- massive soil erosion control program ronmental improvement, such as that the Government of China has been Environment Projects Active During FY97 China's Yangtze Basin Water Re- working on for the last 20 years and ($ million) sources Development Project, which is intends to continue working on until it establishing the Lishui Hydropower is fixed. Environmental problems of this GEFIMP Corporation in Hunan Province. In scale are virtually unprecedented in (19 projects) l. Env. M. addition to owning and operating a human history ($72p1rbojects) hydropower and flood control dam, the Corporation is undertaking baseline The Bank's biggest financial commit- environmental studies to develop an ment to the environment in the region is Institutional NaturalRes./ (4 projects) Rural nv. Mgt.i ntegrated catchment management plan to urban environmental improvement, $212 (a Projecs)/ for the Lishui River. Indonesia is particularly clean drinking water following a similar approach in its Java supplies and sewerage and drainage. Irrigation and Water Resources There are six active urban environmen- IBRD/IDA=$3 billion; GEF=$176 million Management Project, establishing pilot tal improvement projects in the region, a ANNUAL REVIEIV * JULY 1996-JUNE 1997 (FY97) 13 total investment cost of about $3.1 billion. Four of these projects are in China, reflecting the enormity of the urban environmental problems being faced there and the government's willingness to invest in solving them. Environmental Components in the Investment Portfolio Environmental components are being incorporated into an increasing number of projects, whether or not they have potential significant adverse impact, and an increasing number of projects are _ being formulated to deal with specific - environmental problems. In the Philip- < pines, the Environmental and Natural Resources Sectoral Adjustment Loan promotes community-based erosion graded urban environments. Other supplies would cause in the receiving control and reforestation, improved projects have been used as a lever to cities and to develop pollution control regulation of illegal logging and encourage governments to think more plans that could be implemented improved management of selected broadly about environmental implica- simultaneously with the water transfer National Parks. Over the last five years, tions. As China prepared its NVanjiazhai system. The Bank has also been virtually all urban development projects Water Transfer Project to transfer promoting integrated water resources in the region have included substantial water from the Yellow River to cities in planning and management, to reduce investments to improve sanitation, solid water-short Shanxi Prov ince, the Bank conflicts between water users and to waste management and traffic manage- encouraged the government to study the make sure that environmental needs are ment, the three major causes of de- pollution impact additional water accounted for in water allocations. DEOflASIG ACID RIN AND POMOTINGBeyond National Boundaries SUSTAINABLR POWER PRODUCTION IN ASIAThe Bank and the region have begun the second phase in the RAINS-ASIA Asias raid conoic rowt ha fueed groing ppeite or ommecia enegy, program1 (Box) to analyze acid rain in whic issatsfid b fosilfuel tht eit olltansJ hesepolutats re xidzedthe region, and are now assessing acid and ranportd ito heatospere cretin aciic epoitios kownas aid ain rain impacts on the ground. growh raes, y th yea 200 sulur doxid emision fro Asi wil surass heln this last year, the regional team emissions of North America and Eur ~~~~~~completed all city-specific reports on the Metropolitan Environmental Improve- On reionl lvel RANS-SIA no initssecnd has, i anassssmntment Program (MEIP) Urban Air tool-eveloed bythe Wrld Snk, te Asin Devlopmet Ban, andotherPollution studies for the region and is donrs-o sudytheimpicaicm ofaltrntiv enrgydevlopentstrteges or preparing a summary Guidebook.2 The region has also continued its In fsca yer 197,the anks Est sia clintsals inestd insevralinnva-promotion of cleaner production, tive, sustainable power projects, including: organizing study tours for Vietnamese * Thilan: BagkokMetrpolian Dstriutio ReiforcmentProjct, itchofficials under Phase III of the Vietnam imprvespowe suply nd ncresesthe ffiieno ofBangok' powr gid,Industrial Pollution Prevention theebyproucig eonoic nd nvionmnta beefis, n prt,by eduingProgram. China's Environmental for increased power generation. ~~Technical Assistance Project has * Inonesa: Slar ome ystms Pojec, whch povies aGEF rantand ank financed clean production audits of providing selected industrial enterprises to train loan o mae solr enrgy ffordble o 35 illin rual Inonesans,local experts in cleaner production them with ustainable non-polluing electrcal poweranalytical techniques, and has installed * Indnesi: Reewabe Enrgy mallPo we Proect,whicprovdes GEFdemonstration end-of-pipe pollution grant andOMN BankERS loan toLL catalyze1the9creation9of7marketstaralternativeenerycontrolsandrcleanereproductionotech nologies in a number of factories. 14 ENVIRONMENT MATTERS - FALL 1997 At a meeting in Mongolia attended bv The Environmental Project Portfolio Bank staff and dedicated to the North- Bank Totai East Asian Subregional Programme of Country Project Name FY (Sm) Cost Environmental Cooperation, China, China Beijing Environrnent 92 125 299 both Koreas, NMongolia, Russia, and Chongquing Indust. Reform/Pollution Control 96 170 478 Japan reached a consensus for the first time on environmental cooperation Efficient Industrial Boilers 97 33 101 * amongthesixnations. EnvironmentTechnical Assistance 93 50 70 Forest Resource Dev. and Protection 94 200 35v Looking Ahead Hubei Urban Environmental Protection 96 150 370 Looking back, there is no question that the environment has made it onto the Loess Plateau Watershed Rehab 94 150 259 region's political agenda. But looking Nature Reserves Managemr nt- 9S 18 24 * into the future, most of East Asia's ODS Protect l* 94 8 8 countries will undoubtedly continue ODS Prol 11" 94 1 1 their impressive economic growth and, ODS Proj Ill" 95 67 67 unless investments in environmental Second Shanghai Sewerage 96 250 633 manageinent are increased, environmen- Shanghai Environment 94 160 457 tal conditions will continue to deterio- Ship Waste Disposal 92 15 64 rate. Governments must be helped to Sichuan Gas Transmission Rehab 94 10 123 recognize that it is in their interest to South Jiangsu Environment Protection 93 250 584 invest in the intellectual foundations and Tianjin Urban Development and Env. 92 100 195 infrastructure that can ensure a healthy Yunnan Environment 9c 160 307 environment as they grow. If they - -- -- - - - - - -- - - - - -- -- - - - increase economic and social benefits to Indionesa BAPEDAL Dev Technical Assist 92 12 15 everyone, the positive feedback will help Bioddversity CollectionV 9. 7 It move environmental issues up the Integrated Pest Management 93 32 53 political agenda. The Bank must Kenrinc i Seblat Integrated Conservation/Dev 9' 15 47 continue to advocate growth with equity, Kerinci-Seblat Integrated Conservation Dev 9? 19 47 focusing on the poor and dispossessed National Watersheao tAgt and Consroration 94 57 4P3 and investing in the basic services and ODS Proj I" 95 16 1 e infrastructure which are essential Renewable Energy Small Power Protect 97 66 141 underpinnings for sustainable growth. Renewvab e Energy Small Power Prolect (RESPP)' 97 4 141 Solar -fomo Systems (SHS)* 97 24 118 None of the countries in the region has 6 Solar Home Systems Protect 97 20 112 now or is likely to have the economic X Surabaya Urban Development 9" t75 618 * resources to simultaneously address all Yogyakarta Upland Area Development 91 16 25 itS environmental problems. The Bank ; - ot --…--- - --- - ---- - - can offer the regionds countnres its Korea, Republic of Environmantal Research and Education 93 60 97 comparative advantage by supplying the Environmental Technology Development 94 90 156 basic economic research and analysis Kwangju and Seoul Sewerage 92 110 530 they need to establish their priorities. Ports Devel & Env Improvement 95 100 1107 iWaste Dsposal 95 75 305 Finally, if the Bank is to play an effective Lao PDR Wildlife & Protected Areas Conservation 94 2 n part solving such problems, it needs Fores- Marnaae'nenl and Conservation 94 9 2r' to continue the work it has already I--- - - - - --- …-- - --- -- - -- - - -- started to identify and develop addi- .Malaysia ODS Investment Proj. I" 96 9 9stretoinifaddvlpad- i Malaysa DOS Investment Proj. 1' 96 ~ tional products and services better -- - ODS Recycling Prol - _ _ 93 2 _ 2 adapted to the region's unique situation. Philippines Conservation of Priority Protectod Areas' 94 20 23 _ Environment & NRM 91 224 369 1 Downing, Robert J., R. Ramankutty, and J.J. 1334 ~~Shah. 199 7. "RALINS-ASIA: An Assessment I ~~~~~~~~Leyte- Luzon(,:othermal- 9-: 30 1334 Sa 97dDN-tiAiAiiDrcin Leyte-Luzon Goof hermaP . ~~~~~~~~~~Model for Acid Deposition in Asia" in Direcrions ODS Proj 1- 95 12 12 in Development Series. \ashington, D.C.: World Thailand Clean Fuels & Env Improvement 95 90 370 Bank ¶ ODS Prol If 95 17 17 2 Mietropolitan Environmental Improvement Promotion of Electricity Energy Efficiency* 93 10 89 Program. 1997. Guide for Urban Air Qualiti ________________________________________________________________,______________________________ Management" in preparation. Global Environmental Facility This article was atritten by Rob Crooks in theBank's Montreal Protocol (includes several sunprolects) East-Asia Region, (202) 458-0129, Fax (202) 522- _ _ ... . _ .. ~ . -._ .-_ ._.- -... ----.--._.__...-.-..... 1664. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 15 Eastern Europe and Central Asia Region he five years since the Rio Earth the countries' varying capacity to find Summit have been a time of fundamental and permanent solutions. .cN!J t lflfli| CtZmlcW | heightened environmental action No single solution exists for all the in most regions of the world. But problems. By identifying true priorities, in Eastern Europe and Central the region's countries can make a lasting Asia, the years have been driven first and long-term change in environmental and foremost by unprecedented changes quality. in society and government, which have ~~~4ZIJZ ~reute n nironmental changes. Meeting the Challenges .AnyXo.n.e| 0 i i rslevinewirong thearegaonTs T help the region's countries build the ~ Anyone reviwing the regin's environ- skills and institutions they need to ment since Rio must acknowledge how address their environmental problems, ofnique its situation is. After the collapse the Bank worked with them to design an of communism, industrial pollution Environmenta nAction Prograimefor ˇf;0Am0g 0:ff0-f;00 g; :;f;g0;? \ i000:X000 fvmarkedly decreased, as emissions fell Central and Eastern Europe,' which was ;0;0g:2; S0 g0fj0 ft0 00y \ag 0;0 0;f; awith output. Countries have faced the adopted in 1993. Over the past few challenge of making sure that the years, the Bank has helped 16 countries inevitable turnaround in industrial in the re gon develop their owmn national producelon is not accompanied by a environmental action plans. Today :0000 ; . i ; : return to past pollution levels or B i environmental mismanagement. This is Kazakhstan, and Armenia conduct such still their foremost environmental prityettingercises. challenge. In the past fiscal year, the Bank has Environmental progress, like progress uner a num of invest and sulfur dioxide emissions from ofunertake $4. blinume M ore investment,i in economic and social restructuring, projects with strong institutional g_ sou~~~~~~~~~~vries, amngitrae,heav r egions, condtn oxic reeiato,ubn pluincnrl varies amongothearegion'sscountries.adevelopment components to enhance the Countries are learning that them must countries' capacity to address environ- develop the institutions and systems to metlisssuanby handle both today's environmental problems and the problems that will The Environmental Project develop as industri.al and municipal Portfolio sectors transform in size and function. Economic changes in several countries The Bank's environmental portfolio in have led to broad changes in private and the region includes 21 projects (in mass transportation, leading to greater addition to 19 GEE and 6 MP pressres n uran ai quaity acedprojects), in Croatia, Cyprus, Estonia, with pollutants which can damage Latvia, Lithuania, Poland, Russia, people's health, some of the regior?s Czech Republic, Turkey, and Slovenia. countries have focused on reducing lead This represents total Bank support of and heavy metal emissions, particulate over $2 billion out of a total proj-ect cost and sulfur dioxide emissions from of $4.9 billion. More important, it stationary industrial and domestic represents improvements in urban sources, nitrates, heavy metals, and toxic environmental management, oil spill chemicals in drinking water. remediation, urban air pollution control, coastal zone management, forestry Perhaps the greatest challenge to the management and biodiversity conserva- World Bank in its work with its client tion, energy efficiency and the use of countries in the region is to recognize alternative energy sources, and im- the varying environmental problems and proved water supply and sanitation. 16 ENVIRONMENT MATTERS -FALL 1997 During FY97, the Bank approved the Coastal Forest Reconstruction and NATIONAL ENVIRONMENTAL ACTION PLANS AS A FIRST STEP TO ACTION Protection Project in Croatia to restore and protect forest land in the coastal 0 :1M zone, helping restore tourism by enhancing the country's landscape and recreation values. This five-year projtect will protect soil and water and restore m sB the area's natural vegetation, and build a mo efficey -n T knowledge base for improving coastal forest management and protection. Environmental Components in is the Investment Portfolio ta rs o ut n In FY97, several Bank-approved projects in the region have included components to improve the environ- Water Projects The Bucharest Water Supply Project in Romania will rehabilitate w ater treatment plants to impro-ve water supply reliability and quality. This three-year project reduces water losse st is through repair, metering, and institu- .. ~ .~z~r tional strengthening. The Pilot Water Supply Engineering 1 Projects in Uzbekistan and Kazakhstan are designed to use small-scale invest- ment to finance water supply and distribution and institutional reform action plans. These "learning-by-doing" and to help the gov ermient implement environmental momitornng and manage- pilots inoprtn cmuiypolicies to sustain pnivatized housing. ment systems for ongoing activitiLes. participation, should lead to full-scale The project wvill also rehabilitate patrojcSupin thsaontre Sa imaila rly,cth municipal schools to increase energy The Baku-Ceyhan Oil Export Pipeline Water Spply ad Saniation roject efficiencv. In Turkmenistan, the Urban Technical Assistance Project in Turkey in Turkmenistan is designed to improveI waterqualty ad saitaton i resden- Transport Project will improve urban will identify and evaluate technically tial centers and selected collective farims. arqaiyb prdn ue n oe val n niomnal utial The project will include rehabilitation efficiently managing traffic. pipeline route options to export crude and metering components and institu- oil fo au zrajnoitra tional strengthening. Oil Projects ~~~~~tional markets throughout Ceyhan, tional strengthening. Oil Projects ~~~~~~Turkey. Similarly, Georgia's Oil Lnstitu- In Kazakhstan, the Uzen Oil Field tion Building Project includes feasibil- Energy and Transport Projects Rehabilitation Project will help assess the ity studies of an oil export pipeline from Ini Lithuania, the Energy Efficiency/ impact of past operating practices on the Baku to Supsa and terminal and storage Housing Pilot Project is a demonstra- present conditionl of the reservoirs, wells, facilities, and training in environmental tion effort to help private initiatives and field. The project will help remedy past impact assessment, stakeholder analysis improve residential energy efficiency environmental damage and strengthen and public consultation. ANNUAL REVIEW -JULY 1996-JUNE 1997 (FY97) 1 7 eut, find enterprise-specific ron. Work was also begun on the GCF/MP ($ million) investments in critical high consump- Greater Rostov Environmental Strategic (25projecls) tion sectors, ~~provide technical assistance Action Plan.2 adisitutional strengthening, and Institutional ~ \\ ensure that phase-out activities accom- For the Caspian Sea Environmental (2pr ) modae Urb.EmMgt. economic and social impacts. Program, with agrantfromJapan, the $128 ~~~~~~~~~(1 2 projects) :_1.6billion the- Belarus Ozone Depleting Bank has encouraged the cooperative / Substat;IDA4ziliotHGF#Otiiion::(: black-market ODS. lBRD/lDAQ$2 biio n i e s GEF=$ 0 million black-market ODS. eral, government and private sector Beyond Nationl BoundariesIn anticipation of the Third Conference reesnaismttocsdrth all environ- of the to on ~~~program framewvork and identify next Acnwedging that not al nio- o h,Parties tothe Convention stp,onluig ; \ C1xI .; < n t,I:u 4 D mm:tee steps, inc]luding: menta prolems can be solved within Climate Change this coming December establishing a Caspian Bio-Resources $0o programs,supporting the Banregiioni in Kyoto, the Bank has begun to identify Network and identifying urgent, high 000 :and multi-country efforts to1control°opportunities for carbon emissions priority investment projects; pollu00: t tAtioni and environmental problems, reduction in several of the regions * establishing a Program Coordination irrespective of national boundarSiSeSs,i;l; fiS 0V0countries, with an eye toward the Unit; and international financial sources needed to * setting up Activity Centers in each of T his; past year, theBankapprovedthe c reate transbounda ntives for the countries to coordinate capacity Ozone Depleting SubstanceCon- 0 reducing global carbon emissions. building measures. sumpt:XEion Phase-OiutPrjet in Russia:;: to ensure that ODSs consumptionis In the Black Sea Environmental In FY97, the Aral Sea Basin Program phased out in a manner consistent with 022000002: :Progra the Bank and its partners was prepared and reviewed by the Central Asian authorities, the Bank and intenatonaleffrts,andwit a mni- compete an adotedthe eginalUNDP The five countries' Heads of mum ofeconoic dilocatin. Th Blac Sea trategc Acton Pln andState took action to streamline regional projet wil alow Rssiato met is iniiate theGeoria Itegrted lack institutions and accelerate program obliatios uner te Motrea Proo- Sa Enironenta Proect,the irstimplementation. A Participants' col,faciitat accss o fiancil re inegraed casta zoe manaeetConference is planned for late 1997 in sourcs neded or OS cosumpton ivestent rojet inthe- Blac SaTashikent to launch the implementation stage. A unique feature in the imple- mentation phase is that the participating countries have signaled their commit- ment by pledging hard currency resources. The Bank is preparing a 12 million proposal to the GEF to support regional work in water management and under its country programs, is working to meet the needs of people who live near the sea. Finally, at individual countries' request, the Bnk hs begun to explore the ecoomi cosequences countries face in meeingEurpean Union environmen- talstadars a thy wrkwith the EuroeanComisson n the EU Accession proes Lake Baikal at sunrise. varyiPg rates througho~~~~~~~~ut teregion. Accordincgly countries face differe-nt The Environmental Project Portfolio environmental challengLs. Bank Total Country Project Name FY (Sm) Cost Certainln, the inteoratioii of several Aloania Biociversity Strat Action Plan & Nat': Report' 97 0 1 0 1 ccitral and eastern European and Baltic ------ --- -- ---- : - - - ------- --countrics into the European tilion is a (etarus P'deouoOvSDp'ts(Sbsa_s 97 7 16 -c~u ----- ...- --. .....- -. .....--Major theme Mleeting the enx ironmieni- buigara Oznre Dlet.ng Suostances tRhase-out 96 11 14 tal standardb of the EU 'in a cost- Croatia Siodiversit; S!tat., Aut'on R'an & Nat'- Reoc,' 97 0 1 0 1 effectiver inianner is a inaaor challence for Coastaic Fcrst Reconstruct. & Protection Pro 97 a2 ac these coUnltri'es, aind the Banik's assis- Cyprus Southeast Coast Sewe-rage and D'ainaga 92 32 103 tanice to these countries will be a serious - ---------- - -- - ------ ---- ----- --- - ----------- --- --2 - .- a.-nd ongoing, effort, cons cxing lessons Czech Republic 3ecdiersity Proreet:ci' 94 2 3 on c t a leartied froin onec counltrN, to anothler. Po,wer anc Erv. lrIprctemren: 92 246 2 '6 Estonia DGstrict Hea;.ng Rehab,l;tation 94 3a 65 Other couitries are cxpcricinigt, a Haapsalu and Mwsaten Ba}s Er,ironment 95 2 8 turnaround of econonnc and ens iron- Georgaq Biodi-rets Strat. Ac:ion :an & Nit I Reoort' 97 0 1 0.1 mntntal priorities In Bulgaria and , ,,, ,,, ___ __- - -- - Ro-na fo exmpe Th recentI Hungary Phase-outofOzone DcpletingSubstances' 96 7 8 Roniania, for euniple, tne recent - -' - '-- -- ----- e'Con iC reStruCttirinL,, recsuftic, fri K; rayzstan B1ioaiersirly Strat Actmon Plz.n & Nat I Rloortp 97 0 1 ui from - '. :_ -.. _ - _.- ._ .......... ._ . _ _ '~ ........ . . _ .. _ _ _..- actite economlic declne11s, is forctng thelm1 Latvia LUeoaja Environment S5 4 21 to balance the libiliti from past Livtuanra B:odiver-sitv Srat Act:on Plan & Ntat Il Rpor' 97 01 0.1 cesslt of the outitriees of thie SiaLita, Environment 96 6 23 former Soviet U nion 11ave ecolinilles * _ _ _ _ _ * _ - _ .~~~ ~ ~~~ ~~~~. _ . . , ....... . ... . Po-:d Cowl-to-411st De-;vioprnent Suppe-rt 24 146 33.75 suistainiable ensiwironniental im pro)se- Heat Supply Revstuctungri anc Con-zsrv-iori 91 e4-3 ,34 inenits Success or taiti-e in ecotolnliv Katow-ce HeatSuoolv 9 5 2s 93 restructurin1g1 and in the iniplenicntation Phc-c--tO -, ozone Dep-tirno Sabstarncvs 97 6 o o)f priorit pollution abateenit measures Porrania Da-ube De!ia Bodi/evrsiy- 95 5 5Ill dttriiii \ heftiercountrie .an - ---~-- ~- - -- - --~-- - --- - - ~-- - -- - --- - - - - b uild a foundation for using resources Rusioer, F-dek'-iion 6E-idixersty Conservabon' 96 20 e6 a t t efit.-lntl} .and pr-otecti1LI Fank 'Sec1 is Slovenia Environment 96 35 55 RLrp(t \ashinsiiin, )i (C 1094 Phs,,e-out of ODS' 90 6 10 ms an thesr.-ailii ce-scr Osan see Thc Turkey Ar.KarabSewvraoe 9Z 173 L5I t>atiie Re-mi in i1 iilslii-,t1L Si:.i Bur3a Water Su:oly ar'd Sar.tation 93 13C 258 Entoirmit Woo,ici Suim11P)o '),Splwn Easta-n Anatola`Watershiece ierac 93 7 7 ;21 FC-iDS P-cj I" r 9 e 9 In-S-:u Co-servat,on of Genet.cB(Siooe;rs,tv' 93 5 6 Istanbui Watrr Supp'v and Sew-erage 88 219 5-? ODS Piui I" 94 6 6 ODS Proj 1i" 96 4 4 Tek-lz- IFC Pr,;z 0.7 f 7 Ukraine Blociversity Sirat - Action Plan a Nat I Report 9 0 1 t 1 Daiobe Delta Biodiversitf 04 s - Tb-m1c 1sl na-rIarW I-liph IBracc7oio rhc RmA', ' Aivern Aurope \ (cnirral JJ Recoin. Globai Enr-conmental Fac.lat (0(2)1 48S--497 hix (2(2f) 427-3t2S Montreal Protocol (incILdos several subprojects) Ilackgmir iti/pirtzl''1.ifi: -¶ Ai od Latin America and the Caribbean Region he Latin America and Caribbean developmnent of the means to mitigate t0 W=eIiol region, with its enormous range those impacts that are negative. of landmass and cultures, faces a daunting array of environmental In this regard, the Bank has strength- challenges, from conserving its ened the environmental assessment biodiversiqt to cleaning up its pollited review process for all operations in the air and water. Latin America's cities are region. Furthermore, to incorporate tagrowing faster than those in any other environmental concerns further up- region in the world. Today, almost three- stream in the decision-making process, fourths of the regioni's people live in the Bank now promotes broader, cities, 43 of which have populations of comprehensive assessments both for more than a million. Unsafe water, particular regions in a country, such as a deina quate sanitation, and poor air rer basin, and fortndividual economic quality are common in these burgeoning sectors, such as water and sanitation or urban areas. Their increasingly severe transportation. Some of these broader pollution probtems are causing a environmental assessments that have uhe'ihtened incidence of pollution- been carried out include: related illness, particularly among the poj forest andbiodiversityprotection,and anflood protection i. Argentina (see Box); Increasing populations mean growing ater and sanitation in Brazil and numbers of cars, trucks, and buses, Argentina; many of them aging and poorly main- *roads in Panama and Colombia; tamned. These increases in transportation energy in El Salvador and Colombia; ~~~ ~~fleets have resulted in concentrations of and ozone, particulate matter, and carbon mining in Argentina and Bolivia. 20 monoxTde exceeding World Health Organization guidelines by wide The Bank actively seeks to strengthen marg-ins for megacities like Mlexico City; its client countries' capacity to develop Santiago and Sao Paulo. environmental assessments and imple- ment their recommendations. During Meeting the Challenges the last five years, 20 seminars and To help its client countries in the region workshops for borrower counterpart meet today's emerging challenges, the staff have been conducted, training over World Bank is placing a greater 500 professionals from the public and emphasis on the urban environment, private sectors, NGOs and universities human resources development, and in Colombia, Venezuela, Brazil, Hondu- sustainable rural poverty alleviation. Of ras, Dominican Republic, Ecuador, the $ 11 billion in proposed lending for Chile, Panama, El Salvador, and Peru. the region between 1997 and 1999, over Seminar topics have included method- half will be devoted to environment- ologies, community participation, related investments in pollution control infrastructure sectors (mining, roads, and urban environmental infrastructure, water and sanitation, tourism), eco- sustainable rural development including niornic incentives for pollutioni conitrol, forest and biodivrst prtcin nnd enforcement. water supply and sanitation. This large and growing volume of environmental The Environmental Project lending is accompanied by substantial Portfolio improvements in assessing the environ- Today there are 40 environmental 0 ~~~~~~~~~~~~~mental impacts of all Bank projects, and projects in the region's portfolio (inl 20 ENVIRONMENT MATTERS - FALL 1997 addition to twTelve GEF and thirteen MP projects). These are free-standing AEG biodiversity aspects, emphasizing investments designed to strengthen gender and indigenous aspects. investments ASSE~~SSMENT environmental institutions, reverse Peru's environmental degradation, and S Naua Resources conserve vital environmental resources. firt ae n i Management alleviates rural poverty by improving sustainable natural resources A series of interrelated projects in gon touse a invaive management through soil conservation Mexico, for instance, target pollution ce t and reforestation, increasing rural from industrial and mining operations, as mn i o o p a productivi th .. . . . . ' en~~~~~~~~ta nt-to d-- = ......production and productivity through municipal pollution, sanitation, solid o i o i o and ipoe waste management, transport pollution, Td project prepara- and environmental management at the s s agricultural practces, and strengthening rural organizations. United States-Mexico border. WAater s o s a on- - quality and pollution control projects --=== iet= W Ie are being implemented in six of Brazil's largest cities to protect drinking water p Paraguay Natural Resources Manage- supplies by extending sanitation services a living with ment Project supports agro-ecological zoni ng in vulnerable ecosystems to to some of the poorest settlements and assessment feats - provid a soulndass fcorsen m strengthening institutional capacity at m 4 e- ta pro-tectionund investmentitoalso the state and municipal levels.l _ tal pro-tection and investment. It also the state and municipal levels. - supports demarcation and protection of The G-7 Pilot Program to Conserve the pr-c r - - indigenous reserves through participa- Brazilian Rain Forest, administered bv - criteria;-- tory processes. The Colombia Natural the bank, is addressing the underlying n-- c o en Resources Management Project estab- causes of deforestation in Brazil's rain -:andcortm teservlcesforthe lishes ecological zones in the biodiver- forests by strengthening the public - -= - sity-rich area of the Choco, including sector's capacity to set and enforce r ern tli - areas essential for conservation, areas sound environmental policy, improving - onal stre en ng suitable for forestry and agriculture and protected area management, and - - areas being demarcated and regularized increasing the knowledge base on rain for indigenous peoples and Afro- forest conservation and sustainable use. regulatory frameworks, encouraging Colombians who occupy the forests. The PLANAFLORO project in public and private decision-makers to Rondonia and the PRODEAGRO pulcadpvt eiinmkr o The Brazil National Environmental project in Mato Grosso, approved in address the full range of social costs Project contributes to the comprehen- the early 1M990s, also seek to promote a and benefits when making decisions sive planning capacity of the country's more sustainable use of the rain forest about native forests. The Mexico environmental protection agency, in Brazil. While both prthects started Community Forestry Project improves targeting some thirty-one national parks in Brzil. hile oth projectssouce startedan off slowly, major restructuring over the natural resource management and and nine state conservation agencies, past year has simplified their designs, conservaton among community and and provides matching grants to some making them more demand-driven and ejido forestry resource owners and ninety different environmental manage- participatory. Responsibility for increases the range of forestry-based ment subprojects in twenty states. supervising these projects has shifted to income generating optons. the Bank's Resident Mission in Brazil. The Venezuela Inparques Project The Honduras Rural Land Management prvie eniomnalmnget provides environmental management There are five additions to the environ- Project helps modernize the rural land plans and protection for ten of the mental portfolio this year. registration system and promote local country's major protected areas. The participation in managing natural H r r Tehia H.aiti Forest and Parks Technical The Argentina Native Forests and resources. The Panama Rural Poverty Assistance Project supports environ- Protected Area Project helps prioritize and Natural Resources Project mental management of environmentally actions dealing with native forests and promotes the sustainable use and fragile uplands and watersheds. facilitate development of incentive and conscrvation of sclcctcd prionrty ANNUAL REVIEW - JULY 1996-JUNE 1997 (FY97) 21 Environmental Components in targets indigenous communities and Environment Projects Active During FY97 the Investment Portfolio provides mechanisms for indigenous (S million) Bevond strictly environmental projects, leaders and organizations to directly the Bank has supported a number of participate in the selection, design, and GEF/MP Pollution & (25 projects) Urb. Env. Mgt. projects with strong environmental implementation of subprojects. $165 (12 proiects) components in the region. A noteworthy $1.7 billion example is a series of loans supporting The Bank is also working with the Institutional Colombia's Power Market Develop- region's countries to mitigate against (It 0projects) ment, for which a Bank-financed risks of impoverishment due to dis- $425 Natural Res.\ sectoral environmental assessment placement and resettlement by Bank Rural Env. Mgt. contributed to institutional reforms and investments. Argentina, Brazil, Colom- $ billion creation of an overarching environmen bia, Mexico, and Peru are receiving tal regulatory framework, with the technical and financial assistance to plan IBRD/IDA=$3.2 billion; GEF=$165 million participation of more than forty local, and implement sound resettlement regional, and federal government programs in more than thirty ongoing agence, aln wihe vl socient investment operations. With Bank mental debate among decision-makers non-governmental organizations, support, the first resettlement certificate throughout the region. I4iicular Afir program in the hemisphere is being Pollution: Experiencesfrom Seven Latin Inieos epeand Civii established at the University of the American Urban Centers, analyzes motor Society Andes in Bogota, Colombia. The Bank vehicle pollutant emissions and their also continues to support poverty enVironmental and health effects, Since 1994, with funds provided by the alleviation through projects such as the describes a wide range of control and Swedish International Development Haiti Employment Generation Project; mitigation measures used in the region, Agency for planning and consultation the Social Investment Funds for Belize, and suggests ways to improve such with indigenous leaders, the Bank has Ecuador, Guatemala, Honduras, measures.' Floods of Fortnne: Ecology and allocated about $3 million dollars in Jamaica, Nicaragua, and Peru; and the Economy Along the Amazon analyzes the Institutional Development Fund grants Brazil Poverty Reduction loans in four ecology of the fragile Amazon flood- to build capacity among indigenous states. plain and the threats to it posed by organizations in Argentina, Bolivia, certain unsustainable economic activi- Chile, Colombia, Costa Rica, Ecuador, Moreover, the region now sees civil ties.' This publication aims to raise Guatemala, Honduras, Mexico, society consultations as a fundamental public awareness about this little-known Nicaragua and Panama. step in formulating Country Assistance ecosystem and to recommend sustain- Strategies. This is reflected in the 1997 able uses of the floodplain. In FY96, building on these indigenous CASs for Colombia, Peru, and El strategies, the Ecuador Indigenous Salvador. The Bank's support for natural re- Peoples Development Project, the sources management and biodiversity Mexico Community Forest Project, and Beyond National Boundaries protection also includes a number of the Bolivia Rural Water and Sanitation The Bank also publishes key policy Global Environmental Facility (GEF) Project were created. Each project studies that clarify and focus environ- grants. The number of GEF projects under implementation in the region has increased to 12 in FY97. Seven support biodiversity conservation, three are targeted at climate change, and wo support international waters initiatives. The Challenges Ahead Large segments of the region's popula- tion are displaced by conflict, disaster; or poverty each year. In Colombia, upwards of 1 million people flee civil strifie by relocating to the forest frontier; in Peru about 700,000 homeless are moving to slums near cities; in Guate- mala some 50,000 Maya are seeking a return to their homes; and in Brazil, the social unrest provoke by andessness grows steadily The Bank is offering assistance to these and other countries 22 ENVIRONMENT MATTERS - FALL 1997 to establish national resettlement The Environmental Project Portfolio policies to deal with massive Bank Total population displacement as a Country Project Name FY (Sm) Cost means of reducing poverty. Several R4 snal Fi_ 'Iu or O( - agato 0, irateoCl g' G9 'I countries wtill also formulate ICaribbeac r Regional - - - - ___ __________________-- __ - national indigenous peoples Regional Snip Generated Waste Management' 95 13 5' iO-g of Eastern Carobean States' development strategies, which Regional Initial.ve to' Snip-Generated Ws. :e' 94 6 6 identify mechanisms and systems (Wiser CarObbean, for including these too-often Argentina Native Forests and Pro:ectec Areas 97 20 30 excluded people in the countrv's ___ __ - ODSP'o I" - - - 97 22 22 development and economic growth. Boliv a Biodiversity Conservatior' 93 5 8 Eastern Lowlands Regioria Dev go 35 55 * Envnionment, industry & t:ining 9- - 1 50 The acceleratmg growth of violence _ _ _ _ _ Eneironme"ta Techinical Ass.ts'-ce _ _-93 5 9 and crime in the urban areas of Brazil Brazilian Biosversity Fund' 96 20 25 Latin America and the Caribbean Env Conservation and Reh )liLt ion 96 50 1t9 Espirito Santo Water Supply & Coasta Pol'ution Mg' 94 154 3D8 poses a tremendous challenge. In Land Management I Parana 89 63 t38 Jamaica and Colombia, the Bank is Lard Management I go9 33 72 Mato Grosse llJt: 9_ 29 2' helping the governments deal M',nas Gerais Forestry Developmert 5e ts 1 3D directly with these issues bv Monas Gerais Water Quality and Polluiton Contro 93 145 308 d National Biodiversity Prolecl' 96 ' 0 20 supporting and strengthening local National Ervironment 90 '17 1,' . Nat onal Industrial Pollt:on Cont-ol 92 50 153 community institutions and ODS P-oj I" 94 8 6 building social capital in urban Rondonia Natural Resource Management 92 167 2'- Wa - Quality & Po,luton Control-Sao Paulo' Purana 93 245 4'j. areas. In Colombia, Guatemala, Chile Environrent Institutions Development 93 t2 33 and Brazil, the Bank is also ODS Pro a I" 93 2 2 assisting land reform efforts which Second V: aranso Water Supply and Sewerage 91 5C 1S_ use market mechanisms to make Cotomoia Natural R-source Management Program 94 5nd and special zo s de esevs U'ban EnvironmentTechnical Assistance 96 20 40 Ecuacor Biodversity rtection' - campesinas available on the agricul- Ecuador 8lodbversity Drotectionw94 . 9... Environmern Managemnent 96 15 20 ture-forest trontier to stabilize Lu%ver Guayas Flood Contro' 91 59 9_ colonization and conflict. Mininm Dev and Env Control - TA 96 '4 2c ODS Prol 1' 94 2 2 Haiti Forestry and Parks Protect on TA Protect 97 22 23 Controlling urban environmental Honduras EnnironmenflDevelopment 95 11 13 pollution is likely to depend ________ _ Land and Natural Resources Mgt _ 7_ 9 35 40 increasingly on market-based Jamaica Demand Side Management Demonstratior' 94 4 t2 instruments and more efficient and Mexco Community Forestry 97 15 23 effective regulatory and enforce- Environment and Natural Resources 92 1 127 ment svstems. Because the region's High El c,ency Lighting Pilot' 94 10 23 Becausedthe MAC Recycling and Aerosols" 92 0 05 0 05 country governments will need to Northern Border Env.ronment 94 'I.3 762 strengthen their partnerships with ODS Prol I Ozone-' r- 4 4 Protected Areas Prooram' 92 25 42 the private sector, the Bank is Secona Solid Wsle Management94 200 416 TrnspoAirQualityManagement 94 220 1067 assisting in the preparation of Wa - ano San 't on ll 94 350 7 Private Sector Infrastructure Water Resources Management 96 '87 34' . . FnaceFailt 342e. __ _ - __ __ ~~~~~~~~~~~~~~~~~~~Finance Facilities. Nicaragua Atlantic Biodiversity Corridor 97 7 22 OECS Countries, Solid Waste Management 95 13 5S Panama Rural Poverty and Natural Resources Protec' 97 ' 30 Parasuav Land Use Rationa,zation 92 - 4t Onursal, Bekir, and Surhid P. Gautam. Natural Resources Management 94 50 79 1997. VehicularcAirPollrtrions: Enxpriences Peru National Trust Fund for Protected Areas' 95 5 8 Jroms Sent Lutin Amtericon 7rbotn Sierra Natural Resourcr 97 51 93 _ Centers. ISBX 0-8212-40)16-6. Wrorld Bank Trinidad and Tobago Enrvironrmental Management 95 6 1t Bookstore, (non) 473-1155. Uruguay Natural Resou'ces Mgt & Ir-igation Dev 94 41 74 2 Goulding. Michael, Nigel Smith, and OD3S Pro, I" 95 1 1 Dennis J. Mahar. 1996. Floods ofFortuane: Venezuela AAISA MAC" 96 4 4 Ecoloky aord Economv Along the Amazcotn. Chiller Retro'its- C inica Atlas" 94 0 1 0o1 New ork: Columbia Uni'ersitv Press. Chiller Rrptroalts Congreso de la Repubiccas- 94 0 1 01 Chiller Retro'its- Instil de Prevnricion Social del Mel o0" 94 0 1 01 FAACA Mac" 95 3 Thisa-ticle -as written biDennisMaharand INPARoUES I 96 William Partridge in the Bank's lACRegion, (202) 473-1072. Global Environmental Facility Iul.ntreal Protocol (includes several subprojects) ANNUAL REVIEW-JULY 1996-JUNE 1997 (FY97) 23 N:4 [*&1J ,~ Middle East and North Africa Region nated groundwater is causing great Tweinty yhear 199, social Eandh econoirrigation and domestic water supply develomentve tooke paceonto separae ly fgproblems. l attempts to protectthe environmental and nat.Pollution. i n the 1 960s and fcs, the d lButthey conserve atufe. That is,ay uiregsiong qikly industrialized, focusing peop~ wih yiion ealied tt th twoon economic benefits wvith out concern processes are Inseparable: environmen- for the environment. Today, some talll protectionengees economich, develindustries continue to use inefficient ent in order to be successful ad E and polluting production methods, economic ill1. Wate d&vlopmeant rqutire.In this improperly disposing of solid and industrial waste and dumping _vj_EA thir onetanuin p irot tion inoorder toebeountreated sewerage, especially in sitainale. It wxacerbastoutgofrt realiaon ncoastal areas, contaminating surface 74~5? tat the concept of sustainable develop- aer and threatening coastal and -~~ ~ ~ <- ment eminged."' ~~~~~~~marine ecosystems. Pollution has also be a direct result of the regioris > ^0Xis ;< E7<-with possibly devastating he alth and itsgrowing cities and their concentrated Royalz- Sb-S - 2;d _ cnmiefeclrthos,earlion ofNthreuse of leaded fuels in transportation. Amman,Jorda More than 1 00 million people could March 1997 ~~~~~~~be exposed to poor quality urban air by the year 2000. S Es ;, W,ince the 1992 Rio Ear t h* Dertifiction and deforestation. In Summit, the Middle East and addition to encroachment from North Africa region's countries growling urban areas, the regioncs have taken action to sustainably a icultural land is threatened as manage and develop their farmers over-cut rests, over-graze envTironmental and natural resources. their livestock on grasslands, and face But they continue to face an array of increasingly poor xvater quality for serious interrelated environmental irrigation. The rural poor, those who challenges which, if not addressed, can afford it the least, are forced to could threaten the region's economic bear the heaviest burden from this and social fabric, particularly: enviroinmenital degradatonl. Water quality and quantity. In this Meeting the Challenges highly arid region, the rapidly The balance between economy and icreasing num-bers of people and environment has been shifting in the their continuing migration to the region in recent years. Whereas eco- C ~ ~ ~ '~~' ~~-'~~~ cities are exacerbating pr'essures on nomic growvth has been somewhat the region's limited water. Ten of the stagnant since the 1980s oil shock, the region's countries overuse renewable picture for environment has improved freshwater resources, some at rates since Rio. Each country in the region that will cause mass water shortages, has made a concerted effort to improve with possibly devastating health and its capacity to manage the environment. economic effects, early in the next Egypt, Iran, Jordan, Lebanon, Tunisia, century. Nearly 50 million people live and Yemen have completed Environ- wsithout safe drinking water and close mental Strategies or National Environ- to 85 million are w,ithout adequate mental Action Plans (NEAPs). NEAPs sani tation. And, with water tables are also underway, in Algeria, Morocco, lowered by over-extraction, contami- and Syria. 24 ENVIRONMENT MATTERS * FALL 1997 While the region's countries are at The Tunisia Solar Water Heating assistance of an environmental assess- different stages, since Rio they have all Project has been innovative in estab- ment. In addition, a large number of the worked to establish strong environmen- lishing private/public partnerships in Bank's regional investments include one tal institutions, laws and enforcement the energy sector. The project, which or more environmental components. mechanisms, and have made significant encourages public and commercial Working with these criteria this past environmental financial investments, private institutions to substitute renew- fiscal year, the Bank approved Tunisia's paying more careful attention to their able solar energy for fossil fuels, has Municipal Development Project, non-environmental investments. The served as a demonstration project for West Bank and Gaza's Water and cornerstone of the Bank's program to reducing global warming in Tunisia and Sanitation Services Project, and support these countries' work is the other countries. The project created Yemen's Taiz Water Supply Pilot 1995 Middle East and North Africa more flexible and usable procurement Project and Flood Emergency Environinental Strategy: Towards arrangements, launched a broad public Project. Sustainable Developmellt, 2which helps information campaign, initiated legisla- them: tive changes, and provided training to Beyond National Boundaries suppliers. As a result, small hospitals The MNA countries are involved in a * Strengthen environmental institu- and housing areas are installing solar number of cooperative regional and tions and public participation; equipment. sub-regional environmental programs * Improve natural resources manage- and initiatives which link them to their nent; and Environmental Components in neighbors in and around the region, and met an .thEe Investment Portfolio ne L * Arrest emerging pollution problems. t Pdisseminate best practices among the Beyond purely environmental projects, countries, particularlv in environmental The Environmental Project the Bank has also worked with the management and institutional strength- Portfolio region's countries to ensure that all ening. projects in the investment portfolio are There are 14 active environment fl projctsnthregonfr atotalenvironmentally sound and use partici- The Mediterranean Environmental blon in en ionmetl investmts, of2 patory techniques to benefit all affected Technical Assistance Programme billn i, stakeholders. As a result, all projects (MIETAP) was established in 1990 to which $720 million has been financed which have the potential to do environ- bring together the Mediterranean by the Bank. mental damage are prepared with the countries, donors, and international Two of these projects were added this fiscal year. Lebanon's Coastal Pbllu- tion Control Project will reduce LEBANON'S COASTAL POLLUTION CONTROL PROJECT wastewater pollution, restore beaches The project, approved in February, is part of an overall strategy to help Lebanon for recreational use, improve environ- mental and health conditions, and recover from the devastation caused by fifteen years of violent civil strife. The protect water resources (Box). Tunisia's project focuses on Kesrouan, Saida, Dour, and Nabatiye, but its implementation will Natural Resources Management benefit the country's whole population. The project is designed to: Project is a highly participatorv project focusing on natural resource manage- * Improve sanitary and environmental conditions in three major urban areas of the ment activities in four pilot areas coastal zone, home to 700,000 people; encompassing different ecosystems. * Improve and extend water supply and wastewater collection and disposal services; Of the regio's 1*1 active or completed Reduce groundwater and surface water pollution; Bank-managed Global Environment Facility and Montreal Protocol projects, * Restore recreational use of beaches; two address biodiversity, two work with * Ensure satisfactory operation and maintenance of equipment installed or international waters, three address rehabilitated under the National Emergency Reconstruction Program; and climate change, and four address ozone * Improve service delivery through sector restructuring. depletion. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 25 development organizations to cope with Another peace process initiative is the The GEF Red Sea and Gulf of Aden environmental degradation. METAP's Gulf of Aqaba Environmental Action Environmental Strategic Action first two phases have mobilized over Plan, which links Egypt and Israel in Programme involves a multi-nation $32 million to identify investment collaborative mechanisms for strength- partnership of the littoral states to projects, strengthen capacity in national ening capacity to protect marine preserve the Red Sea by preventing and local environmental institutions, biodiversity and the coastal zone. pollution and unplanned development. promote environmental policies, and The Bank will submit this project to the create the region's first professional The Middle East and North Afiica/ GEF Council in November. networks. The third phase of METAP Mediterranean Water Initiative, was launched last October (see Box). launched in FY97 and sponsored by the The Caspian Initiative links Iran with European Commission, the European the other littoral states of the Caspian The Regional Initiative for Collabora- Investment Bank and the Bank, helps Sea to counter the environmental tion to Control Natural Resource countries develop sustainable national hazards of sea level fluctuation and water policies by focusing on three industrial pollution, protect the sea's principal objectives: unique biodiversity, and promote Lands in the Middle East, begun in sustainable fisheries management. The 1993 as part of the Middle East Peace To gather and exchange information Bank is working with the European Process, links scientists and planners on relevant innovation and best Commission and the United Nations from Egypt, Israel, Jordan, Tunisia, practice; Development Programme to help the and the West Bank and Gaza in an To help develop water policies and countries design and implement this effort to share expertise and experience strategies that provide sustainable initiative. in developing solutions for natural solutions; resource degradation which can be * To develop and strengthen partner- The Challenges Ahead applied to development projects. In ships at the national, regional, and Since the Earth Summit, the regional FY97, the initiative started field international levels to ensure more countries' work has put them well on activities and continued to attract donor effective support for sector reform their way to achieving environmentally support. and investment. sustainable development in the first half 26 ENVIRONMENT MATTERS@ . -F0ALL 6997 - 0 - -. I0 - - - - 00S - 0 *1 E0 * 0 0i5 0. - -- . 0 0 60 0 0 0 0-. 000...000 - 00 - 00E 0 .00. - . 26 EN.IRNMEN - rS * FAL 00199..70..- 06 0 of the next century, but the remaining The Environmental Project Portfolio challenges are daunting. They must work to achieve, in parallel, two comple- v mentary objectives: * Protect people's health and prevent further degradation of natural - - resources; and o oIntegrate the environment into their social and economic development progvlrams so that it is seen as an instrument of growth rather than a restraint on development or a possible * E constraint to development and trade. m T To achieve this, the countries wvill confront: w aE4 r Overuse of water resources and inadequate sanitation servi71ceS; - <4. • Desertification of arable land;, E Uncontrolled use of leaded gasoline and diesel for transportation; / Use of high sulfur fuiel oil for power t near population centers; * Rapid, unregulated urbanization; and Threatened coastal and marine resources. /ith stronger environmental institu- e ironmen tions, laws and regulations in place, the countries are better equipped now to . k face these challenges and turn them into opportunities to protect the environment and improve people's lives. The Bank continues to work with them to plan and being prepared in the context of the Since Rio, the countries of the Middle develop investments that meet the MNA Environmental Strategy include: East and North Africa have developed a economic and environmental needs of strong sense of the challenges they face the entire region. Upcoming projects Egypt's East Delta2Agricuural in their quest for sustainable develop- Services Projcect (FY98), which will ment. They have begun that quest and addrss wter ualiy isues elatd to are on a course that, if maintained, will see them reach their goal in the coming Environment Projects Active During FY97 agricultural run-off. etr ($ million) etn Tunisia's Transport Sector IV Project u o u on ~~(FY98), which witl promote the use rb. Env. Mgt. "~~~~~~~~~~~~~~~Dana: A New Vision ., a Special Issue of the U rb.jecvMts) of cleaner fuels in transport. magazine of the Jordanian Roval Society for the (1 1 project ~~~~~~~~~~~~~~~~~~~~~Conservation of Nature. Al Reern. Page 1, March $45 ~ ~ ~ ~ ~ akan aasInutil21997. 0 West ank andGaza'sIndustral 2 Middle East aod North Africa Eovironment Institutional Natural Res./ Estates Project (FY98), which has Strategy: Towards Sustainahle Development. (6 prjc)Rural Env. Mgt. World Bank Sector Report, Wasshingtoo, D.C., $6 ~ ~ ~ 8 rleI)developed a template Environmental 1995. Manual for conducting environmen- tal assessments n new industrialThis arti cl wvas written bvj.BR Collier of the Bank's tal assesments n new inustrialAliddic East andN'orth Africa Regon, (202)473- IBRD/IDA=$720 million; GEF=$45 million areas. 8551, Fix (202) 477-1374. ANNUAL REVIEW - JULY 1996-JUNE 1997 (FY97) 27 South Asia Region his year, India and Pakistan agents and vctims of natural resource celebrate the fiftieth anniversary degradation. On one hand, population of their independence. Since pressures have depleted the natural independence, both countries resource base; on the other, the rural $ 0 f t t for t~~~~~~~hae fatgrowing numbers In197 poorot-enlived andwrk pluineolon;ll abut ihalf of India's citizens lived in fragile zones where they face poor soil, povmerty;i slightly more than a third deforestation and reduced fish yelds. A t jg rowdo. In Pakistan the percentage is even third of the region's people live in cities;, lower. But the prosperity this fast-paced there, too, the poor are less buffered growth has produced has been very from water pollution, toxic wastes, solid unevenly distributed and, to a large wastes, high traffic, and air pollution. extent, has come at the expense of the Urban cleanup would reduce far more E_ environment, sickness and death in the poorest neighborhoods than in other city Poverty and environment are closely neighborhoods. I>. linked throughout South Asia. Large and growing populations are over- South Asia's greatest environmental exploiting the re ion's water resources, problems are: soil, fisheries, forests, and wetlands. As the countries expand their industries *water quality degradation, especially and more people migrate to cities, the surface wvater, from poor sanitation, region faces serious air and water industrial effluents, and pesticide pollution and solid waste problems. runoff; Even though the region's agricultural urban degradation, including urban output has doubled in the last 25 years, water and sanitation, solid waste agriculture alone cannot provide work management, and worsening trans- for the fast-growing numbers of port-related air pollution; working age people. Industry and worsening but localized industrial commercial service, now more than half pollution h-ot-spots;, i t ~~~~~~of GDP, will continue to drive economic dwvindling forests, coastal wetlands, W, ~~~growth. Finally, the increase in numbers fresh-water bodies and fisheries, and A ~~~~~of people along the cyclone-adfo- poorly managed protected areas; prone coasts of India and Bangladesh soil degradation from nutrient has led to increased suffering in recent depletion, salinization, and land use years. conflicts;, poorly managed water resources and The South Asian poor are dispropor- unresolved cross-sectoral issues like tionately affected by the region's hydropower, land productivity, environmental problems in both rural flooding and fisheries productivity; and urban areas. The two-thirds of the *energy-related pollution, both in population living in rural areas are both commercial energy sectors and biomass;- and *the impact of global climate change, * - - * * a - ~~~~~~particularly in low-lying Bangladesh. - a - - -. * a * - * * -In most South Asian countries, the key to solving these problems is to improve environmental management: an institu- * A * * ** * - a - ~~~tional, not financial, challenge. Environ- ment agencies are typically relatively 28 ENVIRONMENT MATTERS - FALL 1997 junior and weak. Political support is inconsistent, not so much for respond- THREE NEW FY97 PROJECTS ingto acute damae or danger but for ^ implementing long-term environmental II LLl strategies. Poor policies and weak e regulations hinder the potential of goternment, prnvate sector, and commue nities to work together on common interests. Meeting these Challenges Environmental protection is primarily a process, not an investment. It calls for planning, coordinating, regulatory and enforcement activities, public education n and awareness, and bringing environ- mental concerns into all government ministries. Some investmenIts may be needed, often to mitigate past mistakes, but the fundamental thrust ofenviron in B k r mental management is to create effective c c policies, regulations and procedures. South Asian countries are wTorking to meet this challenge through: •More clearly defined and understood being used to show the economv- The Environment Project ioaritie action, ing to morasis e wide impacts of environmental Portfolio ArgesUt Lact with more masa degradation, 4-% of GDP avear, Since July 1996, three new Bank- result. Lastyear, he Word Bankand to quantify, the enormous supported environment projects (Box supported a year-long prioriry-se-tting eomic benefits of policies that wr de oteSuhAinprflo activities in Bangladesh, leading to a could prevent degradation in the first for a total of 27 environiment Pr Ojects: Prior ity FramewvorkJfor Implemnenting place. In Sri Lanka, old and new fifteen in India, six in Pakistan, three in the National Envi~ronmental Manage- environment projects are addressing Sri Lanka, and one each in Bangladesh, ment Action Plan)' policy . InNpl.h cnmcist Bhutan, and Nepal. In the early part of of environmental degradation are the 1990s, most environment projects in * More efficient polici'es, not only for the being addressed now, to be completed the region dealt with natural resources, environmental authorities themselves, next year. bta olto suswre,a but for industry, agriculture. trans- increasling share of projects deal witlh port, public works, and land manage- *Improved implementation ofpolicies anid institutional, urban, and pollution ment, and other agencies that have an regulations, through improved institu- problems. impact on the environment. In tional capacity, incentives, informa- Environmental Components in Pakistan, Using Economnic Policy to tion, and reduced corruption. In the the Investment Portfolio Improvue Environmental Protection in Bank's response to its South Asian Part of "mainstreaming" the environ- Pakistan' addresses this full range of client countries' needs, its lending ment is to address the economic, policy and institutional issues. In operations are increasingly focusing financial, and institutional environmen- India, macroeconomic analysis is on institutional strengthening. tal aspects of non-environmental ANNUAL REVIEW . JULY 1996-JUNE 1997 (FY97) 29 * B l Iw* ii * I- l t i I lI llII*urban water supply and sanitation projects in Chennai (Madras), Colombo, Dhaka, Karachi, and Mumbai'(Bombay);, energy (gas development and flaring, projects. In South Asia, environmental * irrigation and drainage projects thatcoal production, and energy sector restructuring) and power deIvelop- ment (coal-fired, hydro, and trans- *Si<, foesr adfihrisprjct en roets ncuin negv,wmission and distribution) projects 714 ~~~~~~~~~~~~~~~~~~~~~~throughout tbe region; industrial pollution control and prevention projects in India;, and B water resource management projects (including river and coastal embank- ments) in Bangladesh and India. In each of these projcs enirnmntal concerns that were flagged under the project's environmental assessment have led to continued World Bank involve- ment in recommended policy and <'« institutional reformns, as well as contin- ued monitoring of compliance during project construction to agreed-upon ~~ttttˇ$ˇilˇtI~~~~tffi I ~ ~~~t¸tX4t ~ environmental guidelines. Beyond National Boundaries proj'ects. In Sooth Asia, environmental irrigation and drainage projects that Transboundary efforts in the region concerns are being addressed in such focus on soil salinity and land combine enivironmental and develop- projects as: degradation in Pakistan; ment issues. The largest is the South private sector infrastructure develop- Asia Dev,elopment Triangle Initiative, forestry and fisheries proet metpoects, including energy, wvhich seeks to improve regional addressing both production and urban, petrochemical, and transport cooperation in the poorest "triangle" resource degradation issues in investments in Bangladesh, India, area of South Asia, in the areas of xvater Bangladesh, India, and Pakistan; Pakistan, and Sri Lanka; resources management, energy develop- J MOTT 30 ENVIRONMENT MATTERS * FALL 1997 ment and trade, transport and com- merce, and environmental management The Environmental Project Portfolio (see Box). Three other transboundary . e activities include: , _c e~~~~ URBAIR and the 2-Stroke Vehicle Engine -- - -- Initiative: a program to address the rapidly worsening air pollution problem 2 in all of South Asia's largest cities. Five -= major URBAIR reports were recently published, providing methodologies, 7 ; data, and strategies for action in several R of Asia's most polluted cities. The Bay of Bengal Enyvroninent Program (GEF-funded and jointly implemented with FAO), which includes fisheries research, environmental emergencies, large marine ecosystem, and coastal < = X4 zone management in the Bay area. ii Countries involved are: Sri Lanka, India, Maldives, Bangladesh (South __a Asia) and Thailand, Malaysia, Indone- sia, and Myanmar as an observer (East a Asia). T_ _ Cultural Heritage i'n South Asia, an effort in both India and Nepal to promote active involvement and financial support _ from the public, non-profit, and private 5 3< sectors for both deteriorating national \ X heritage sites and living heritage (local 5 21 arts, crafts, and cultures). The economic and social benefits of cultural heritage 1 conservation are high. X Challenges and Opportunities Ahead ment can wait" is less prevalent now reach. The challenge remains to move South Asian countries understand better than it was during the 1980s, a decade of forward on both fronts, national and than ever before the close linkages lower growth. This increasing awareness, local, top-down and bottom-up, and to betwTeen economic growth, povertT found across governments, communities, keep up momentum that has been alleviation, and environmental degrada- academia, and the private sector, is the slowly building since the Rio Summit. tion. The sentiment that "the environ- basis for achieving greater improvements in environmental management in the next 'A Priority Frameworkfor implementing the Environment Projects Active During FY97 few short years than were achieved ATational Environmental MNanagementAction Plan, Ministry of Environment and Forest. ($ million) during the previous ten. Government of Bangladesh, and World Bank South Asia Environment Division, NENIAP GEF/MP To build upon this opportunity, the Workshop Paper. May 1997. (4 projects) Urb. Env. Mgt. World Bank's overall approach in the - Ising Economic Policy to Improve Environnern- $62 (6 projects) .tal Protection in Pakistan, R. Faruqee, Policy $621 6plcs \ region is to support two levels of action. Working Paper no. 1757, WN,orld Bank South Institutional The first is to support the awareness- Asia Rural Development Division, April 1997. $109rojects) raising, public participation, and policy T Natural Res./ / analysis required at the national level to Association. See page 2 for an explanation of (1?projects) agree on policies and next steps. The its role in the Bank structure. second is to support on-the-ground Thisarticle was wriitten byCarterBrandon in the activities that show that concrete Bank sAsia Region, (202) 458-2752, IBRDIIDA=$1.8 billion; GEF=$62 million environmental successes are within Fax (202) 522-1664. ANNUAL REVIEW - JULY 1996-JUNE 1997 (FY97) 31 I;i|FC 0a. X International Finance Corporation The IFC operates at the challenging that eco-efficiency in the use of natural interface between the demands of the capital-adding value while steadily 7 . ~~~~decreasing resource overuse, waste and private sector marketplace and the impera- pollution -enhaces ther cpete- polluthoii-enlhances their conpetitive- tivefor development wlhich is sustainable. ness, and have begun to address social and cultural issues arising from their ustainable development contin- operatons. ues to present a remarkable challenge to business. To Eco-efficiency is now a generallv achieve it, companies must think accepted principle, which IFC seeks to and act differently. For their pursue in its projects. IFC is also long-term survival, they must create seeking ways to evaluate and ellharice new strategies, which integrate sustain- the development of social and cultural able development goals into all their capital in its investments. The issues objectives. involved in sustainable development are complex, and answers are often elusive. The World Bank Group' is now IFC seeks to address them by carefully convinced that sustainability is opportu- screening its own investments and nity: leaving future generations as many creating opportunities for broader opportunities as we ourselves have had, private sector investment in environ- if not more. The new approach recog- mentally sustainable projects. Extend- nizes that sustainable development ing its reach beyond its own investment involves some tradeoffs among different portfolio, IFC trains financial institu- kinds of capital, particularly: tions in the developing world to take environmental and social issues into * manmade: productive equipment and account in their own investments, and facilities developed by humans; offers through such financial institutions * natural: renewable and longer-term financial instruments such non-renewable natural resources; as credit lines and equity funds which * human: investments in individuals' can be used to support environmentally education, health, and nutrition; responsible companies. * social: the institutional and cultural basis for a society to function. Environmental and Social Benefits The capital we leave to the next genera- IFC's success in promoting sustainable a v _Sj O _ | i _ hon W~~~lll probably be d'fferent than the tion will p a b d t the development will be measured not by i >$ capital used in this generation, and one capitl use in tis geeratin, an one polici'es, procedures, or good i'ntentions, but form of capital may be substituted for by resuilts on the ground. another, within certain limits. For -~ | ; Ia~s1n ocal evloment I) rin theftyyearm wh e Worl Bank strengthening indignu raiiiin'aaiy has n n e zsence devel em' paadigmengaging in publicca'ltinsredngiito a host of newstehde ad lpn otis a ~vo df a amostexciu vefc~!sO~'Zas they move fo o~lc pae -a .a t anapp ac t/irtJ~eog ~esh mn and Day by day, thBaksbnggunoaont. the needs of it nraigyd regopo - -~ -o ap t' las rzt~ f ct rsfor 5a54? nableclients. Last ya,floigo h el fa v ~ 5. ish ~s~voltio 'buZdin.'-oial resettlement rve2wihasre h eta fr'asr t e Ik thec ~caion fphyic simportance ofscaisusndeeomn asome e, hs heco a Crnerstone"projects, BankrsinW fnonetblsd sociracm~hns htsoila4~' n Social Perspectives gender. The Africa Region is expanding its work The Task Group Report also proposed that staff This section on establishing the social and institutionaL basis identify key social issues by country and address for refugee reintegration after conflict.. The Latin. :Ithem through Country Assistance Strategies focuses on efforts America and Caribbean Regional Office is working (CASs) and analytical work. Several pilot CASs on strengthening the capacity of indigenous organi- have already been chosen to highlight social to increase zations to design and implement their own develop- issues, and civil society stakeholders are increas- ment initiatives (see Box). In Eastern and Central ingly being consulted in their preparation. participatory Asia, the Bank is helping countries better under- stand and respond to the social implications oftheir Strategies to Improve Performance approaches, transition to new economic and political systems. In Finally, the Bank is expanding its work programs the South Asia Region, the social focus continues to to include strategies to improve performance in enhance public be on poverty alleviation, resettlement, and tribal and existing areas such as non-governmental organi- gender issues. zation (NGO) coordination and in new areas like involvement, and post-conflict reconstruction. The Bank now has NGO and civil society liaison officers in over 70 integrate the STRENGTHENING THE CAPACITY of its Resident Missions, many of whom meet OF INDIGENOUS GROUPS regularly at Bank headquarters for training and to social and discuss social development issues. environmen:tal -- In the Bank's change process that followed the ; . , l llreport, a Social Development Family was formed dimensions of in the Environmentally and Socially Sustainabledeepmttio Development Neork. The family works osely del ent into . with other groups in the Bank to promote community-based participation; .to more closely ded sionmaking link social and environmental assessments; tio -| | i | |mainstream activities;r to expand the Bank's social agenda to include cultural diversity and heritage issues; and to undertake-joint research. The- new structure will enable social scientists, to' more effectively respond to the institutional goals of Aleviating pover increasing clint orienttation, strenAgthen' Epartehps, and emphasizing Although addressing the social. dimensions of development is in its early stages, it promises to be a permanent part of the Bank's activities and a key element in the world dev-elopment agenda in the years ahead. T-hisard s 'Task Group Report, "Social Development and Results on wrvisandbSuaoAssa the Ground.' Nlav, 1, 1997isandSsan.sa May 1, i997. ~~~~~~of the&Bnk's Social Resettlement and Development: The Bankwvide Review of 1iewkpnmt Project Involving Involuntarv Resettbemnent 1986-1993," )W- - - \X~~~~~~~~Aorld Bank Environment Department Paper no, 32, March (202.1473-1763, 1996. Fvx (202)522-3247. ANNUAL REVIEW.- JULY 1996-JUNE 1997 (FY97) 41 Ozone and the Montreal Protocol oday, five years after Rio, countries are struggling to put the global environmental QPCpue yWrdBn otoi TSodaw ,qstai n 1 jtreaties into action. But, in this tenth 80000 o Residul Consurptor Captured dev~~Jep~nentJ~ ~ anniversary year of the Montreal Protocol, - the Protocol is almost universally viewed 60.3o 21c_ 5o.003 as a success. Why? ~eflVfortfl$flaXiSVe~ Factors for Success 20.000i Science: The link between ozone depletion and 1 _11K X chlrofuor~carboiuns (CFs) and other chemicals 1i9n 1992 1iaio 9 99 19 is clear. The discovery of the "ozone hole" in 1985 and development of new substitute chemicals Xr0~~mpfe~~ X .. l created a receptive environment for the Protocol. ~~~textb~~~~~~~~~~o~~~~k obaJ ~~~~~~~~~~Cu mulative D P P has eout fro m WB P rojects: egwiroi.m.nt I Global commitment: With a consensus on science J O -Jun 1997 sxtern~itties~-- g and the problem's global impact, developed and 1 18,000 m15, Un tended developing countries have been able to make a phas 13 'unfer~oen~ie-> global commitment. 1.0 eft~~ec~~s ~ Creation of the MFMP: The Parties to the core 410 actMty~Tbes~ < Protocol recognized that developing countries 84.002 Z002 mfight n-eed some help to move to non-ozone pro~te~t~haVe~' depleting substances, so they gave them a phase- 93 14 195 15Jue1T out grace period and established the MFMP (Box, page 43) as a funding mechanism. The gengrThe*o~Tuti~n MFMP has supported successful phase-out Prgiple programs through technical transfer and institu- MFMP projects. This is about 8% of what tional strengthening. developing countries consume, a major achieve- ment in global environmental protection. Conntry commitment: Both industrialized and scaIeeffeot&whio~ developing countries have shown a solid commit- Countries Make the Difference Potgact ~ ment to the Protocol, which has brought real This success is due to the efforts of governments, results, from regulatory and policy changes to financial institutions and companies in more than new government units to implement it. 18 developing countries. A number of countries have actually adopted phase-out schedules well 'eeosystelms ~ Progress in the Phase-out ahead of the Protocol schedule. Chile, Indonesia, The World Bank's MFMP portfolio, which Malaysia, Philippines, Thailand and Turkey have stands at $225 million, will eliminate the use of seen their ODS use plateau, or even decrease, in almost 50,000 tons of ODS, 25% of developing spite of their rapid economic growth. countries' consumption. The Bank's Global Environment Facility projects have now also Many countries have already phased out ODS in captured over 22,000 tons. Economies in transi- entire sectors (Box). Thailand has successfully A: d tion consume around 50,000 tons; the Bank's phased out CFCs in its refrigerator manufactur- GEF projects in 9 of those countries will phase ing sector. Turkey has also eliminated CFCs in out close to half of that. The Bank's total portfolio almost all of its refrigeration production, and even p now captures 30% of the remaining consumption many other countries are well on their way to in countries eligible for MFMP or GEF funds. similar accomplishments. These achievements are especially significant because they are more than an6p&s1i~avw~Itpowa By this past July, nearly 15,000 tons of controlled 10 years ahead of the Protocol's phase-out substances had been phased out through Bank- schedule. 42 ENVIRONMENT MATTERS * FALL 1997 The Global Atmosphere This section In Ecuador, the governmentfocuses on the Bank's role in ~a- carrying out the ~ ~sss, GEF and Montreal Protocol work to protect the ozone In Ecuador, the government and SCOSUIG making full use of the equipment, enterprises worked together to SECTORS USING the government distributed it to layer. eliminate ODS use in the entire OZONE-DEPLETING others. The project has resulted in aerosol sector. The project was Bank/ SUBSTANCES (ODS) annual savings of 200-350 tons of MFMP funded, but the govern- INSd CFC-12. ment established its ownership of the d- WM project from the beginning, and local The Bank's Approach staff showed increased accountability ~ ss The Bank- has recently emphasized: as a result. The government also instituted key regulatory actions More targeted training and sipport to which prohibited CFC use as a local execsting agencies to build propellant in aerosols. These actions, g d capacity. The Bank held a work- combined with project design and shop on implementation for local training provided by the Bank, phased out more executing agencies which allowed them to learn than 75% of Ecuador's ODS consumption. not only from Bank staff, but also from each other's experience. Because of its success, the In Malaysia, the Department of Environment Bank has decided to make it an annual event. was heavily involved in implementing and Sustainedfocnis on imnplemnentation by streamlining monitoring a Mobile Air Conditioning (MAC) Bank processes, developing strategic business plans, Recoverv and Recycling proj ect. The government setting goals for effective implementation perfor- set up strict monitoring systems for participating mance and enhancing partners' skills. This sustained workshops, including unscheduled site visits and focus has paid off in increased rates of disbursement required progress reports. If workshops were not and, most importantly, ODS phase-out. Enhanced monitoring and eval/ation to improve - 4 ~~~~~~~~performance. Improved monitoring and reporting procedures, coupled with implementation and training, have created real breakthroughs in local executing agencies' performance. Monitoring also helps ensure that equipment, once it is converted, is never used with ODS again (seephoto). To help countries achieve permanent phase-out, the Bank is developing a best practice guide on equipment This arti c was disposal and will follow with training. Whether twirtenbyilIen Tynan equipment is destroyed an odfor srpor adBllRhli h and sold scrap ~~~Bank'sklontreal retrofitted so it can use non-ozone depleting Protocolunit Ensuring equipment will not be used again with ozone substances, we want to make sure that ODS that's (Pot) 473-8201, depleting substances. Philippines. phased out stays phased out. Fax (202) 522-3256. ANNUAL REVIEVV W JULY 1996-JUNE 1997 (FY97) 43 Mainstreaming Climate Change lobal climate change is no longer the olicies so as to integrate global externalities into sole concern of scientists and their national economic planning. Through environmentalists. Five years ago at climate change overlays in the energy, transport, Rio, countries acknowledged the industry and forestrv sectors, the Bank works enormity of the problem, one of the with countries to examine the impacts of green- most complex we have ever had to face on the house gas emissions on each sector and conduct planet. The nations gathered in Rio in 1992 saw climate change mitigation analyses. it as a problem significant enough to warrant signing the United Nations Framework Conven- The Carbon Backcasting Stutdy: In response to an tion on Climate Change, which entered into force agreement made at a Federation of American two years later and has now been ratified by 165 Scientists meeting on climate change last year, the countries. The Convention calls on developed Bank and cooperating institutions have completed countries and economies in transition to limit a 'backcasting' study' on how the Bank's recent their emissions of the greenhouse gases which energy portfolio would have been affected if cause global warming, although it does not carbon emissions had been part of the equation. _ _ -impose mandatory emissions restrictions on The study simulated what would have happened developing countries. to project costs and types if the damages associ- ated with global climate change had been inte- U i To meet the Convention's objectives, both grated into energy lending by applying a shadow * * U developed and developing nations will have to value ranging from $5 to $40 per ton of carbon improve energy efficiency and reduce their emitted. The study also helped identify invest- - * reliance on fossil fuels, moving toward renewable ment opportunities for greenhouse gas mitigation. * ** - _ energy sources. The World Bank has intensified The study's findings will be built into the analytic its efforts to help its client countries in this work. foundation of the Bank's emerging climate change policy. A Strategic Approach to Climate Change _ != 2_ Because macroeconomic policy changes can The EnergTY and Environment Strategy: Last year - u7 * stronglv affect future greenhouse gas emissions, it the Bank began to review the relationship is in a country's best interest to pursue 'wvnmwin' between energy and the environment, which has actions that offer both economic and climate led to a strategy paper jointly prepared by the change benefits, such as eliminating subsidies Bank's environment, industry and energy and which damage both the economy and the environ- regional staff. The study is intended to produce a ment, and improving energy efficiency It has better understanding of the Bank's policy and become clear that, more than anv other factor, lending priorities for energy and environment. changes in economic structure affect the future path of energy use and greenhouse gas emissions. "Continued global warming is in nobody's The Bank is working on several strategic fronts to interest, but the simple facts of the matter are help countries find effective climate change that the developing countries will suffer the solutions which can also take into account their most damage, and their poor wil be at an even national economic priorities: di age. I see the Bank's role in The Climate Change Global Overlays Program: The at e aviding every Opportunity Bank launched the Global Overlays Program in to deveoping ies to beefit from the huge 1995. Similar to a graphic overlay which adds a tnvestt must make in reducing new layer of analysis to an existing map, the climate change." climate change 'overlays' add a global dimension J oAeoi^, to the traditional work which the Bank under- U GrAebypion on the takes collaboratively with its client countries. The Environment, June1997 Program is designed to help countries adjust their - _______-____________ ____ ___-;_ _ W_ _A _: 44 ENVIRONMENT MATTERS * FALL 1997 The Global Atmosphere Having just completed consultations with the payments to reduce emissions and support This section environment and development communities, the sustainable growth for developing countries. As Bank is now working to define its policy and part of this, the GCI is exploring a Carbon focuses on the strategy and develop a clear set Investment Fund if the of operational guidelines. Convention permits and Sank's work in supports it. The Fund would Global Efnvjironrment Fjici!itv: obtain funds from industrial- fostering solu- (GEF): As a GEF implement- i ized countries and the private ing agency, the Bank helps sector and invest them in tions to global countries identify emissions emission reductions in abatement opportunities that L economies in transition and warming through are cost-effective from a long- . developing countries. The term global environment GCI is consulting extensively energy efficiency, perspective, particularly with developing and developed focusing on renewable energy - countries and the private demand-side and energy efficiency. In the sector as they Investigate current three-year phase (GEF creating this market mecha- management and 1), the GEF Council has nism for carbon emissions authorized $220 million in co- reduction. renewable financing for renewable energy projects and $92 million in The Challenges Ahead technologies. energy efficiency. On average, The Bank believes that the each GEF dollar has leveraged - severity of the climate change around four dollars in private problem makes a strong case sector, WVorld Bank and other for its growing support to its official capital flows. client countries as they search for sustainable energy solutions. It is becoming ACficv'z/i: l/iiplma#ai Joaity (AIJ).I By implication clear that countries can build a strong economic under the Convention's AIJ Pilot Phase, a backbone even as they pursue lower-carbon country can contract with parties in another energy paths, including energy efficiency, lower- country to reduce that country's emissions. The carbon fuels and, where possible, renewable Bank believes that AIJ and successor mechanisms energy; and that, as a matter of fact, this energy can help stimulate additional resources flows for path will uiltimately help them achieve more the global environment. To explore the possibili- sustainable economic growth. ties, the Bank and Norway established an AIJ NNYork Program to clarify how AIJ and other The Bank will continue to encourage countries to market mechanisms can benefit the Bank's client invest in 'win-win' opportunities. But it also calls countries. Four projects have emerged: on countries to go beyond 'win-win' to main- stream the issues directly and firmly into their * Poland Coal-to-Gas Project larger development picture. Countries must * Mexico High Efficiency Lighting Project identify environmentallv friendly alternatives and * Burkina Faso Sustainable Energy MIanagement put them into place early in the policy and Project investment cvcle, and aggressively mobilize new * India Integrated Agricultural Demand-Side resources to support them. In the process, they Mlanagement will be better placed to identify underlying synergies as they face their global, regional and ate b as Global Canl)on J-nitiative (GCCI): This year, the 11 ltg-l written bv Charles GlobtZ C4rios Izitiatinv fGCI: Thi year thelocal pollution problems. Feinsrein and Ocllf Bank initiated the GCI to investigate the emis- Tunali Pavton of the sions reduction opportunities the Convention Bank's Gaobal Climare could provide through joint implementation. 'The backeasting study is available from the Global Climate Change Unit, Through the initiative, the Bank is exploring the Change Unit. (202) 473-2896, Fax (202) 522-3256. (202) 473-67741 feasibility of market mechanisms and voluntary 2 Energy and Enoironment Strategy Paper, NXvwcgeei.org. Fax (202) 522-3256. ANNUAL REVIEW . JULY 1996-JUNE 1997 (FY97) 45 Strengthening Environmental Valuation he 1992 Rio Earth Summit was a water- Greener National Accounts shed in traditional thinking about the The Gross National Product and its sibling links between environment and develop- measures almost completely ignore environmental ment. Since then, it has become clear that depletion and degradation. Early on, the Bank traditional measures of economic progress recognized this and collaborated with the United like the Gross National Product create a false Nations Environment Programme to organize a sense of prosperity because they ignore the costs series of workshops on environmental accounting of environmental degradation. several years before the Rio Conference, between 1983 and 1988. Later, they conducted compre- This has had a profound influence hensive case studies of Mexico and Papua New on the World Bank's work. Since Guinea, providing a test of the UN's System of Rio, to help its client countries Integrated Environmental and Economic make their economic growth more Accounting. The results of this work, summa- environmentally sustainable, the rized in two publications,1 have become standard Bank has pioneered new thinking references in the field. These concepts of greener - in the application of environmental accounting are now becoming part of the Bank's economics. Under the leadership of operational work through "Genuine Savings," the Indicators and Environmental which measures the true level of national savings , Valuation Unit (IEV), a number of by incorporating the value of environmental new methods have moved quickly depletion and degradation. Genuine savings from experiment to practice. estimates have been featured in recent economic strategies for Egypt and Pakistan and in the 2 V _ _f wValuation Bank's Country Assistance Strategy for India. At the Bank today, the analysis of environmental effects is becoming Expanding the Measure of Wealth increasingly pervasive and sophis- National accounts give a snapshot of theflow of ± ;: -fi i "iticated, going beyond environmen- resources in an economy, but the stock of assets tal impact assessments. In a available to countries is key to evaluating sustain- number of instances, the Bank has ability. The Bank is working to extend wealth developed p rojects and approved accounts to include natural and human resources Si; ; l ~~~~~~loans based almost entirely on ( te sum of humanl and "social" capital2). As the environmental benefits. The Bank (the u fhiif id"oil aia'.A h helped develop a practical method- Figure indicates, neighboring countries' level and ology for estimating the health composition of wealth can vary considerably. It is benefits of poticies to mitigate air critical for countries to manage this portfolio of pollution, an approach which is assets on their road to development. The 1997 no being used ioluo n opperaiona w hichiSpublication Expanding the MAleasure of Wealth3 r; _ - - _ - ? ~~now being used in operational work. The Slovenia Environment highlights significant advances in practical wealth Project used this approach to measurement, building on the pioneering efforts _quantify theexpected benefits of in 1995's Monitoring Environmental Progress.4 measures to convert household and industrial boilers to cleaner fuels. Mainstreaming Environmental Economics Innovative valuation techniques at the Bank such as contingent valuation are Simply measuring and valuing enviroinmental beginning to be used, to value the problems has little meaning if the Bank does not amenity benefits of reforestation in take them into consideration in its policy dialogue Croatia's coastal areas, for instance, with its client countries and in its operational or the cultural heritage benefits of work. The Country Assistance Strategy (CAS), investments in the historic Medina which describes the proposed lending and of Fes in Morocco (photo, left). non-lending services the Bank will provide to 46 ENVIRONMENT MATTERS * FALL 1997 New Indicators of Progress This section DISSEMINATING NEW KNOWLEDGE focuses on environmental - ~~~~~~~~~~~~~~~~~~~~~~information at two levels: under- standing projects' '~~~~~ '~~~~~~ ~~~o environ mental dimensions and each client country over a three-year period, is an also studying trade and environment linkages important instrument in this work. By helping and planning a conference for 1998 on this topic. review 40 to 50 CASs from an environmental IEV is spearheading work on indicators of perspective each year, IEV helps to mainstream resource sustainability for use in projects and in performance; and the environment into this core Bank process. national policymaking. observing a Assessing the linkages betw heen structural eco- nation's manage- nomic reforms and the l economic environment is an impor- entalment ofi ts tant aspect of this work. In ~>' joint work with the Inter- work O tenvironment. It national Mlonetary Fund in the Philippines, for ~ aalso explores instance, IEV evaluated xn"' posit economic analysis economic reforms such asAccounting: nrt -o raising petroleum pricestoolsyto link and the environment. s gop i Future achavelyllengesting. A forthcoming ' Expanding the Ailea-mre of Zlfiealsh: lndicators of Entironmen- tphysical environ- integrate environmhenal, onsia, and erations into l the Slonitorr ESnvironmental andrEonomic: Aeoutonting (202)473-859iimpacts. Bank's economically-oriented work. Operational Case Study for Papua Newv Guinea," Environment support on environmental economics, case Department Working Paper, 1992. "Integrated Eniron- ANNUAndL onoing eseach wil hep ideti~rmental and Economic Accounting: A Case Study for studies, adogne rsacwilhlietfyMexico," Environment Department \vorking Pap'er, 1991. Thlis article was best practices for wider dissemination. The written by Johni Dixon environment, rural and social groups in the Bank 2 ee page 22, the article on the IFC. anid Stefano Pagiola of are atvvcolbrtn.A fotcoigExpeniding the M'veasure of flealth: Indicarors of Enu'ironmen- the Bank's Indicators volume will1 present state-of-the-art applied tallb' Sustoinable Development. WVorld Bank, 1 995. Va/natironmenital research on the r-ural, social, and environmental ' Montitoring Environmnental Progress: A Report on WVork in (202) 473-8594, dimensions of development work. The staff is Progress. World Bank, 1995. Fax ('202) 477-0968. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 47 Partnerships since Rio T * raditionally, the World Bank has worked experience from the projects it supports is hand in hand in a tightly woven partner- available to both the development and conserva- ship with its client countries. But the 1992 tion communities. IUCN and the Bank have Rio Earth Summit made it clear that, if collaborated on an ecosystems and natural we are to achieve environmentally sustain- habitats handbook, an exercise to develop a global able development, all members of the world system of marine protected areas, environmental community must join together as partners. assessment capacity building, and an international advisory commission on large dams, among Expanding the Range of Partnerships others (see page 57). Taking this point to heart, the Bank has shifted to building a vast new range of partnerships, with In a world where 20 countries suffer from water other multilateral institutions, United Nations scarcity, the Bank is a committed member of the agencies, donors, non-governmental organiza- Global WIAater Partnership (GWP). The GWP, tions, academic institutions, and the private made up of governments, multilateral banks, UN sector. The Bank has also begun to broker agencies, professional associations, the private partnerships between its client sector and NGOs, aims to rationalize the world's countries and NGOs, scientific scattered array of water programs. This global and academic institutions, and collaboration clearly recognizes that a coordinated other organizations. These effort will be more efficient and effective than partners are often better placed individual projects or programs can be. The 't ilethan the Bank to tap into Bank's 1993 water resource management countries' networks of stake- policy'now strongly supports internatiornally 1 holders. As a result, these agreed principles for water management. strategic alliances have had a _ X g high payoff in improving the Partnerships Affecting Policy _ _ l rquality of the Bank's operational The Bank's collaboration with the International a [ l z work. Institute for Energy Conservation (IIEC) has had far-reaching policy effects. IIEC is contribut- This expanded range of partners ing to the Bank's Energy and Environment -| has resulted in increased Strategy Process, which aims to clarify Bank _ 2 i 0 technical cooperation, innova- policy and lending priorities at the nexus of these tive alliances with NGOs, and two areas. IIEC has been instrumental in 0!rm f00 g complex initiatives with mixed arranging consultations with NGOs, industry groups of stakeholders. representatives and other parties interested in sustainable energy use to give them an opportu- Strategic Partners nity to comment on the Bank's draft Energy and __ 0 0 : One of the strongest strategic Environment Strategy Papern IIEC and the Bank partnerships is reflected in the developed a World Wide Web site (http:// Letter of Understanding www.geei.org) for clectronic consultations. between the Bank and IUCN - These consultations represent an opportunity to World Conservation Union, the establish a more permanent, consultative world's largest confederation of mechanism between the energy and environment conservation organizations. communities and the Bank on energy and Robert Watson, the Bank's climate change issues. Environment Director, says "the @ 0 Bank relies on IUCN for state- At the June UN General Assembly session on the of-the-art expertise in environ- environment, Bank President WVolfensohn mentally sustainable develop- announced a new alliance between the Bank and ment." Conversely, IUCN is the Worldwide Fund for Nature/World Wildlife helping the Bank ensure that Fund to help arrest the loss of forests globally 48 ENVIRONMENT MATTERS * FALL 1997 Partnerships alliances prove that it is well This section "As the newv millennium7 worth the effort. Partnerships approaches, we mlas step up have broadened the capacities focuses on eJJ ets o wrk tgethr ~ and vastly extended the reach _Ai eJXrts to W01 t togc je7- ds and impact of Bank activities. building strategic e par-tnlers inX this crucial Through partnerships with prsTsuit ofprotecting tle scientific institutions and alliances to '.s S envirom-ent." technically-oriented NGOs, in particular, the Bank has generate new been able to tap into vast, Caio Koch-Weser, previously unavailable knowledge and World Bank Managing Director networks of expertise. of Operations Partnerships with bilaterals, avoid duplicating C. CARNEMARK foundations and the private sector are bringing "Vv'e are committed to work together, and with innovation and leveraging more financing for efforts in the "We are committed to work together, and with extremely ambitious joint initiatives. Partner- others, toward achieving by the year 2000 a ships have also brought greater accountability to Bank's environ- representative network of protected areas amount- the Bank and, in doing so, have increased the ing to at least 10%oof each of the world's forest Bank's credibilitv mental work. types," he stated. Both organizations are con- cerned about biodiversity loss, climate change, The benefits of partnerships with the Bank also and deforestation, and recognize the urgent need flow to thc outside partners. Partner organizations for solutions. They also recognize that the have strong development missions themselves and partnership could take advantage of complemen- see that the Bank's partnership offers windows of tary skills and goals. The Bank and WIVV F also opportunity to implement initiatives they them- agree that countries should commit to increase the selves would like to see done. Partnerships also forest area under sustainable management to 200 allow some partners to tap into the Bank's million hectares by the year 2005 (see page 57). administrative and technical capacities to pursue initiatives which might be beyond the scope of Brokering Mlulti-Stakeholder Initiatives individual organizations. Lastly, most partners The Bank is also now participating in recognize the Bank's influence as a global multi-stakeholder partnerships which could development institution, and value the leadership affect broad changes, such as Market Transfor- and visibility the Bank can bring. mation Initiatives (MTIs) in forestry, photovol- taics, hydrocarbon refrigerant technology, marine A Global Partnership products and solar development (see page 57). With this in mind, Mr. Wolfensohn has commit- These initiatives were formed in the recognition ted the Bank to forge a global partnership to that only a multi-stakeholder coalition can affect promote equitable approaches to global environ- the rate at which the market embraces sustainable mental issues. "We wVill expand our work with the practices. The Forest Market Transformation private sector to promote practical business Initiative aims to help the global timber industry opportunities for sustainable development. We shift toward environmentally sustainable prac- will join others to promote higher standards of tices, by pioneering "green carrot" financing environmental and social performance for private packages to stimulate sustainable timber harvest- and public investments around the world." With ing and improve understanding of alternatives. this mandate, the Bank is already pursuing new 7ihis articie was joint initiatives to address some of the critical written bykMaria The Benefits of Partnerships global environmcntal challenges. AycLiggoftheBank's While sustaining effective partnerships and Enviionment coalitions can be challenging and sometimes Dep2rm WNVater Resource Management: A World Bank Poliev Paper," (202) 458&4683, difficult, the results of the Bank's expanding World Bank., 1993. I@x (202) 522-3256. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 49 The Environmental Dimension in Water Resources Management he world is using up its water resoures. environmental assessments. Its 14ater Resources Many developing countries are already and Env-ironmental Management Guideline series is face-to-face with an emerging full-blown being designed to give project managers access to \water crisis. More than a billion people practical methodologies and best practices. live without enough water, and nearly two billion suffer from the consequences of poor Phase 2: Mainstreaming. The next phase has been sanitation. Millions of people die every year from to "mainstream" the environment into the Bank's contaminated water. In many places, agriculture traditional work on water. The Bank helped suffers without enough water for irrigation, countries in Sub-Saharan Africa and the Middle competing with demands for water from cities East and North Africa, two water-scarce regions, and industries. And water pollution adds to the build environmental considerations in their l , . 3 l l l | l l l | l l equation every where. regional water resources strategies. In Southern Africa, Bank dialogue helped form an SADC The Water Management Continuum W7ater Sector Coordinating Unit to address the Since Rio, countries have come to recognize that reio' wae eoresise.IteCrben we need to take a revolutionary approach to it helped in preparation for a regional water managing our water, viewing this tre u strate featuring watershed protection and _ _p r management, wetlands management, pollution resource as a management continuum from control considerations, and linkaues between _ freshwater to coastal and marine resources (see upstrearmacite ande downstream co atle wan figure, page 5 1), which we must learn to manage masriea resourc'es addwsra osa n _Tenin a holistic integrated framework. marint resources . Because water in all its forms impinges on the world's ecosystems, environmental sustainability is one of the cornerstones of I 3 effective wvater resources management. To use their water resources in an environ- mentally sustainable way, countries mnust 't rt7; . fill competing demands for reliable and 50safe water without overusing or contami- I nating existing surface and groundwater >~or damaging dowvnstream aquatic ecosvs- tems i'ke wetlands, floodplains, estuaries and the marine environment, and human @ ~ settlements. Phased Integration To help its client countries integrate the environment into their water resources management decisions, the WAorld Bank has adopted a Water Resources Mlanagement Policy,' which calls for a comprehensive approach to The Bank has worked with couintries to carrv out __- ~~~~~~managing water resource wihin the continuum>' environmental assessments in complex water The Bank has integrated the environment into its resources Projects such as the Lesotho Highlands wvater resources program in three phases: Water and Ghazi-Barotha Hydropower Proj'ects, and in the Aral Sea Program, the Lake Victoria Phase 1: Developing the Bank's capacity. To help its Environmental Management Program, and a client countries, the Bank had to first build its number of Regional Seas Programs. It has ,W own institutional capacity. It hired wvater re- promoted innovative proj ects such as Tanzania's a sources and environmental specialists, formed River Basin Management and Smallholder "Blue Teams," developed sourcebooks, updates Irrigation Improvement Project, Small Environ- and operational policies and directives for ment Projects in the Baltic countries, and the 50 ENVIRONMENT MATTERS * FALL 1997 Water Resources Management Restoration of WNVetland Ecosystems in the Aral This section Sea Basin. STRATEGIC SUPPORT: AFRICAN WATER RESOURCES focuses on Phase 3: Upstreaming the envir onment. The final MANAGEMENT phase has been to "upstream" the environment, freshwater, bringing it early into work on water resources * Sub-Saharan Africa Water Strategy management. This has entailed incorporating the coastal and water policy and regional strategy in early drafts * Sub-Saharan Regional Efforts of the Bank's Country Assistance Strategies, Lake Victoria Environment Management marine resource including upstream and downstream linkages, Volta River Basin Study and promoting national water resources manage- Nile Basin Action Plan ment policies and strategies and integrated coastal SADC Water Resources Strategy management, zone management plans and programs. * National Water Resources Policies/ integrating an Strategic Partnerships Strategies To foster strategic cooperation, groups within the Cote d'lvoire * Nigeria ecological Bank working on different aspects of water, like Ethiopia -Senegal infrastructure, agriculture and environment, have Ghana - Tanzania dimension into come together in effective working partnerships. Kenya -Uganda At the same time, partnerships and alliances with Malawi Zambia water resource groups outside the Bank add strategic value to Mozambique Zimbabwe the Bank's work with its client countries. Namibia management from Internal Partnerships up an innovative Water Policy Reform Program to the upper The Bank's Global 'NWater Unit coordinates Bank support the Bank's water resources policv. Kenya, activities with its client countries, plays a kev role Senegal, Tanzania, Yemen, and Trinidad and watershed to the in the emerging Bank-IUCN Commission on Tobago have all had help in reforming their water Large Dams (see page 57), and represents the sectors through EDT's national policy seminars on coastal zone. Bank in the Global WAater Partnership. The Unit integrated water resources management. wvill soon lead a comprehensive review of the Bank's WVater Resources Management Policy. External Partnerships The Bank is a founding member of the Global /rX v , N\hater Partnership, the first-ever attempt to coordinate water solutions on a global scale.3 The Go e-tflaet ata A atneAPartnership, whose members include national governments, multilateral banks, UN agencies, A MANAGEMENT CONTINUUM professional associations, the private sector and non-governmental organizations, provides a key The Bank's Africa Region Water Resources forum for countries to cooperatively advance ManagemenT Implementation Initiative has major water resources initiatives. As a pilot effort, Mlanagement Implementation Initiative hasit is focusing on Water Resources Management in helped African countries review and prepare Southern Africa, building on the goodwill of transboundarn.- and national wvater resources Suhr fia uligo h odi1o transboundies,stateg and national wlaternresrcves fothose countries in the region which have signed a policies, strategies and action plans covering four Protocol on Shared WVater Courses. 1 major international basins and 13 countries (Box). Armenia, Georgia, Trinidad and Tobago, India, Nepal and Yemen are also developing Integrated wIA,ater Resources Management: A World Bank Poliev Paper. This article was Regional and National Water Strategies with World Bank. 1993. wvritten bvRafik support from the Bank and other partners. 2 See also 'Strategically Managing the World's Water.' Hirji in the Bank's Environment Mlutters Fall 1996, wvhich discusses shifts in Environment aquatic resource management promoted by the Bank. Department, The Bank's Economic Development Institute, 3 See 'Solving the Water Crisis Together: The Global \Water (202) 458-1994, which provides training to client countries, has set Partnership,"En-cironnmentrMcatters Winter/Spring 1997. Fax (202) 477-0568. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 51 Toward Effective Pollution Management L ong-term economic growth only works if 2 people's health and the natural environment s are protected from pollution's harmful A o F effects. Over the last decade, this fact has become S Sources glaringly obvious. In response, the WVorld Bank s TrXnsport has built up a portfolio of close to $7 billion in active pollution management projects, and systematically assessed and mitigated pollution impacts in other Bank operations. The Bank has helped developing countries and transition economies set priorities, develop action programs, her d and implement strategies to reduce pollution's so srcs at negative effects on their enivironmenits. In this work, the Bank is helping countnies seek cost-effective solutions for tangible environmental improvements on the ground, and better under- can help decision-makers icdentif~, key pollution stand and apply the economics of pollution. sources and cost-effective abatement strategies. Understanding the Economics of Such methodologies have been applied in a Pollution forthcoming study, Can Environment Wait? An array of tools has been developed to help Economic Growth and the Environment in East and practitioners understand the social costs and South-East Asia. The report analyzes the costs health and environmental impacts of pollution. A and benefits of different options and identifies the methodology using statistical analysis of epide- most effective strategies (See Box). According to miological data and economic valuation tech- the report, adverse trends in urban pollution nliques helps estimate and compare the social could be reversed and favorable ones improved in costs of air pollution caused by the combustion of Southeast Asia at a cost of approximately 1-1.5% various fuels and sources (tiogca res 1 anl 2). of GDP The benefits of recommended pollution abatement measures would outweigh these costs These results, supplemented by the Bank's Decision by 2-10 times. Support System for Integrated Pollution Control, Analytical work is also helping with pollution management decisions. A Bank study of Rio de Janeiro's Guanabara Bay recommended chemi- cally enhanced primary treatment as a more cost- Fuml, Avrg is(prtnoffe) effective alternative to Brazil's wastewater investment plans. The authorities in Rio de Janeiro have agreed with the Bank's analysis and are implementing the study's recommendations to 2Or 00 0000 0Q; 0t00| 0 0 X improve the deteriorating water quality of the Bay. Working with the Private Sector Am ~~~~~~~~~Pollution management objectives can be best eoal 1uei~I Diase Gaa$ineachieved if the private sector makes a commit- ment to comply with environmental regulations 52 ENVIRONMENT MATTERS * FALL 1997 Pollution Management and takes effective measures to ensure their This section compliance. The Bank is encouraging the private POLLUTION ABATEMENT PRIORITIES sector to do just that. Recent examples include: IN EAST AND SOUTHEAST ASIA highlights * In Kuala Lumpur, the Bank collaborated with Immediate Concerns findings from the the Environmental Conservation Association of *Provide access to clean water and the International Petroleum Industry (IPIECA) sanitation Bank's policy and to organize an international workshop on Urban *Control vehicle pollution in Southeast Air Quality Management, mobilizing the Asian cities operational work private sector, government agencies, academia * Switch to cleaner fuels, especially in small- and NGOs to cooperatively set priorities, medium sources in China on pollution identify_ cost-effective approaches, and establish * Phase out leaded gasoline implementation mechanisms for urban air management and pouto polm.. Longer-term Issues pollution problems. * Acid rain technology policy. * In M\/exico, the Bank is supporting improved Ground level ozone environmental performance by facilitating the * Management of natural resources< transfer of good environmental management practices and approaches from large companies focused training. A multi-year training program, to their suppliers. for example, was designed by the Environment * In Argentina, the Bank is helping introduce Department and EDI on urban and industrial innovative approaches to pollution manage- environmental priorities for East and Southeast ment by negotiating agreements between industrial facilities and regulators and support- In Russia, training local environmental adminis- ing cleaner production.InRsi,tannloaeivrmnaldii- trators and academics in environmental econom- ics and pollution management generated a very * In Bulgaria, the Bank iS helping the govern- . ment address environmental liability issues to positive response and requests for similar pro- facilitate the privatization process, mitigate past grams. environmental damage, and improve industry's Challenges for the Future environmental performiance. To deal with pollution problems, countries must Transferring, Experience and make policy, institutional, and behavioral changes. Disseminating Knowledge In the long-term, pollution must be considered one of the key factors affecting economic activities The transfer of good practices and expenrences and decisions. The Bank's clients and, indeed, across countries and regions has been successful most developed countries have a long way to go to in dealing with pollution management issues such "mainstream" pollution management. The World as phasing out lead from gasoline. Regional Bank stands ready to help countries move programs in Latin America, the Caribbean and towards this goal. The Bank will consistently Central and Eastern Europe, for example, have incorporate pollution management objectives into provided a useful framework for building political its Country Assistance Strategies and economic commitment and implementing national lead and sector programs, and will continue to phase-out strategies. introduce innovations and collaboration with the This arric1lc ias wvritten by Mlagda private sector, NGOs, and local communities Loiei, in the Bank's Collaboration with the Bank's Economic Develop- around the globe. Environment ment Institute (EDI) has been an effective vehicle Department; for the Bank to transfer its experience and knowl- (202) 473-3986, edge and build capacity mi client countnres by Rx (202) 477-0968. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 53 Protecting the World's Biodiversity he Rio Earth Summit helped tune the In 1995 the Bank launched its Global Overlays xworld in to the alarming rate of irrever- Program, developing the conceptual framework sible biodiversity loss. In the five years and toolkit for mainstreaming global environ- since Rio, the World Bank, in concert mental objectives into national environmental with its client countries, has expanded its planning and Bank operations. The initial focus efforts toward slowing those losses and protecting has been biodiversity conservation in agricultural endangered species at global, national, and local development, resulting in Mainstreaming Biodi- levels. In doing so, the Bank's approach has versity in Agricultural Development: Towards Good evolved from "doing no harm" to strategically Practice, ' which was presented to the Parties to "mainstreaming" biodiversity conservation into the Convention in Buenos Aires last November. all aspects of its lending and non-lending work. Partnerships . 2 . 2 S . 7 g The Bank recognizes that, while essential, Successful conservation depends on active .:&~:c~ij~ ll .protected areas alone are not sufficient for partnerships among all stakeholders: government, _____ ~ ~~~ ~~ effective conservation. In fact, the majority of the local commnte,teprivate sector, NGOs, and world's endangered plants and animals live internals. The Bank has worked D g i l . l e outside protected areas. Futhermore, the expan- actively ntion Secreta iat, Conser- S | | | Esion of protected areas is limited by economic vation e \Xbrld Conservation ~~~ ~~ production. In response, the Bank's strategy __ ~ ~ ~~~~ ~attempts to preserve species outside protected 6 Union (UN,teWrld Wildlife Fund, the areas by incorporating biodiversity concerns into World, , Wetlands Interna- development planning, expand and consolidate alnartners to enhance protected area networks wahile strengthening etu goernt-led conservation activities t management capacity, and implement policies and thrug NGa and comuntybased actions. incentives to reduce biodiversity loss. -< Targeted Conservation Efforts Tseprnshshae also co iorbutedt critical natural habitats. regionank' Ciodunrstry AsstacStrategies,an pioruity- ntBiodiversity lending has grown rapidy se ss .o Wlfe uind and the ~~~ ~ totaling $ 9 56 million for 1 01 pr Ojects orcmo akudrokakypirt-setting exercise for onents in 56 countries. Of the total, $6 t oregions of Ltin Americal ad the represents borrowing and another $33 Conservation Assessment of tie represents grants from the GEF or the BaiTersilEcregions of Latin America and the ____ ~~~~~~~ Rain Forest Trust Fund. This investmen ha aib~aregional overview of the conserva- leveraged $536 million from other donr ansto satus and biological distinctiveness of 191 borrowing governments, bringing the ~~~~ ~~~commitment since 198 8 to $1.34 blineorgions which indicates the high-priority cosrvation areas located throughout the region. Mainstreaming Biodiversnge Ahed Productive Sectors Ahed The loss of natural habitat is temithatoFureoperational objectives are aimed at the world's endangere sei.Th akdosensuring that all relevant Bank-funded sector not support projects ta damage o dwork will fully integrate biodiversity into the critical natural habitas Adtoal,thrBank's Countr-y Assistance Strategies, including natural habitats are avie ylctn rjcs an assessment of the underlying causes of species on lands already cleae ocnvre.W reloss and the impacts on ecological goods and avoiac isntfail n nevrnetlservices. The Bank will: assessmen niae htapoetwudsgii cantly damg naua aias h rjc utintegrate biodiversity conservation with o include acetbemtgto esrs ieeconomic production outside of protected areas ~ estalishin and mintaiing anecologcallyin at least half the megadiversiry countries in ~ similarprotected area. 2the next 5 years; 54 ENVIRONMENT MATTERS * FALL 1997 Biodiversity and Natural Habitats This section RUSSIA BIODIVERSITY AND FORESTRY: APPLYING AN INTEGRATED STRATEGY Two-thirds of the world's remaining temperate forests are in Russia. These vast forests hold a rich focuses on tapestry of life, home to some of the world's most valuable and endangered plants and animals, like the Siberian tiger. Indeed, they represent one of the last places on earth where scientists, environmental- management of ists, and industrialists can work together on environmentally sustainable economic development from biodiversity the ground up. conservation, The Russian government is committed to the conservation of biodiversity and is being assisted by a GEF Biodiversity Conservation Project, but it faces a double-edged need to preserve the biodiversity especially in and to expand its economy into the large forest sector. Following a comprehensive Forest Sector Policy Review, sustainable forestry was included as a priority in the integrated Russian Country Assistance forests and Strategy. The holistic approach will support institutional reform for sustainable, conservation-oriented marginal lands. forest management, provide technical assistance and capacity building, and invest in research and information management. Over the next few years, the forestry work program will be carried out in two phases: * a pilot phase to address strategic planning and reform by testing models in representative forest management situations; and * a loan phase to apply lessons learned during the pilot phase and to target substantial investment toward sustainable forestry management in other regions of the country. In an attempt to reach both its environmental and economic goals, Russia is considering an Environ- mentally Sustainable Forestry Fund which would provide grants to companies to promote sustainable forestry practices. Government, industry leaders, and local and international NGOs are all expressing support for this Market Transformation InitiatFive. * support the extension of protected areas, strengthen the GEF partnership and move ensuring the rnost globally significant plants from the current co-financing ratio of less than and animals are conserved, toward inclusion of 1:1 (GEE: Bank) to a target of 1:3 in the an additional 60 million hectares of terrestrial second GEF replenishment. ecosystems before 2005 (of which 50 million Implementing these imperatives is now an urgent hectares would be forests); challenge and the Bank, along with its partners, is * establish or improve the management of 20 key helping its client countries mobilize the expertise marine protected areas over the next 10 years; and resources they need to meet their obligations under the Convention on Biological Diversity. * examine financing instruments and develop new funding mechanisms to meet the recurrent costs of protected area management, especially through levies on natural resource extract'ion- l toheeonrrt ti Stefano Pagiola. John Kellenberg, Lars Vidaeus, and Thisarticle * develop new products aimed at facilitating Jitendnral S,rastav,lminst reamingl Biodiversity in intte was market-driven opportunities for the conservation Bank, Wtashington, D.C., 1997. BondoftheBanks and sustainable use of biodiversity like a carbon Environment and sustainable use of blodiersity like acarbon 2 Eric Dinerstein. and others A ConservationAssessment of Department, offset fund with a forestrv component or a the Terrestrial Ecoregions of Latin America and the (202) 473-7069. marine market transformation initiative; and Caribbean, WVorld Bank, NWashington, D. C. 1997. Eax (202) 477-0568. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 55 What's New at the Bank ? The Bank's Green Top Ten In June on WNorld Environment Day, Norld Bank Managing Director Caio Koch-Weser presented ten measures which the Bank believes can exert real impact on improving and protecting the environiment. These measures were offered as countries prepared to con- p -.I>t, vene at a United Nations General Assembly Special Session on the environment in New York. * Phase Out Lead in Gasoline Within Five Years * Move Toward More Aggressive Elimination of Chlorofluorocarbons * Build Global Carbon Markets to Reduce Climate Change * Nlake \Water an Economic Asset M* Make Cities More Livable * Conserve and Manage Critical Ecosystems on Land and at Sea * Commit More Money for the Global Environment Facility S Build Alliances to Transform the Marketplace Adopt Greener Accounting and Eliminate Harmful Subsidies Apply Environmental and Social Assessment Consistently For more details on the Bank s proposed measures for the global environment, see page 7. Educating for T RA N SFOR M IN G T HE MA R KET P LA CE EDUCATING THROUGH MarketTransformation Initiatives Update THE WEB In the Bank's last annual review on the environment (Environment Matters Fall 1996), it announced the Forest Market Transformation Initiative, a multi-stakeholder partnership which the Bank and the This fall, the Bank's Development International Finance Corporation created with NGO and private sector partners to help lead the Education Program will launch a forestry industry into environmentally sustainable practices. The Bank has also been working with new Web page to give educators foresry inustr intoenvionmenallysustanablepracices.The ank hs alo accessrkntowtteachingpag and g learningor partners on initiatives to help other markets move into environmentally sustainable practices: resources for educating second- * Marine Products Market Transformation Initiatives ary school students about sustain- * Photovoltaic Market Transformation Initiative able development. Innovative * Hydrocarbon Refrigerant Market Transformation Initiative textbooks, teaching guides and poster kits will be made available * Solar Development Corporation to the public through the upcom- ing Web page. The Development Exploring Innovative Financial Instruments for the Environment Education Program is a division On October 2-3, at a Bank-IFC-hosted Workshop on Innovative Financial Instruments, representa- of the Bank's Economic Develop- tives from groups like Chase Manhattan, Environmental Enterprises Assistance Fund, Overseas Pri- ment Institute, which was created vate Investment Corporation, and Environmental Bankers Association gathered to examine financial to increase knowledge about so- innovations for the environment. The group considered such instruments as trust funds, NGO and cial, economic and environmen- small grant funds, financial intermediary programs, investment funds and market transformation ini- tal issues in sustainable develop- ment. tiatives. The results of the workshop, to be published shortly, signal new directions for approaches and products which can be applied by the private sector in the next few years. (Also see "Innovative Contact: Kathy Sheram, Financial Instruments for Global Environmental Management," Environment Matters, Winter/Spring ksheram@worldbank.org. 1996.) 56 ENVIRONMENT MATTERS * FALL 1997 rBank and WWF Join Forces to Conserve the Earth's Forests Minister Asmal Named to Chair the In June, in a positive new move for conservation of the world's forests, the Bank and WWF World Commission announced a global alliance for forest conservation and sustainable use. Both organiza- on Dams tions share concern for biodiversity, climate change, deforestation and forest degradation, n September, Professor and recognize the urgency of dealing with these problems. Both groups agree that their Kader Asmal, Minister effectiveness would be greatly increased through a strategic partnership which takes ad- of Water Affairs and vantage of common goals and skills. In the alliance, the two organizations agree that: Forestry of the Republic of * a network of protected areas should be established across both developing and devel- South Africa, was named as oped countries, which would include at least 10% of each of the world's major forest the Chair of the WNorld types by the year 2000; and Commission on Dams. * large areas of natural forest in developing countries and transitional economies should The independent Commis- be brought under real sustainable management. Starting from a negligible amount to- sion will be formally day, the Bank and WWF will work with countries to sustainably manage a target of 100 launched in November to million hectares of the temperate and boreal forests as well as the same amount of review the development ef- tropical forests, by the year 2005. fectiveness of large dams. Professor Asmal was chosen to chair the Commission af- Expanding the Portfolio to Protect As of June 30, 1997, the value of alloca- ter a comprehensive search tions to the Global Environment Facilitv process and consultation the Global Environment ~ ~ ~ ~ ~ ~~~~~~~,Nr~ith stakeholder representa- the GlobDal Environment portfolio implemented by the World Bank titk promin enta- tives. A prominent member Group had risen to over $1.0 5 billion. This portfolio, work- of President N elson ing in over 80 countries, is composed of98 projects, plus 10 Mandela's Cabinet, Profes- "enabling activity" grants to assist countries to fulfill cer- sor Asmal has guided the Sustainable tain stocktaking and reporting obligations under the Biodi- fundamental review and re- Sustalnable versity Convention. form of South Africa's wa- Development ter resources management Negotiations are underway for the second replenishment of policy. E NVIRONMENTAL the GEF Trust Fund, which arc expected to be completed The idea for the Commis- by late 1997 or Phase-out Ozone sion emerged from a work- This past spring, the Bank launched early 199 8. One Depleting Substances shop hosted by the Bank its Environmental Education Semi- measure of success 9% Projects Targeting and hUCNotorld Conser- Multiple GEF adIC-bl osr nar Series. These seminars, which of the GEE is the ,ta Sectors vation Union in Gland, are open to the pubic, are part of othGE ishe Mitigate 2. va-o Unio inGlnd are Eniopmentoathe pdubli n Aare- pareffect it has had on Climate, t Switzerland this past April the Environmental Education Aware- . Change Conserve to discuss the future of large ness andTraining Program, a joint pro- resource allocations 41% Biodiversity das. the worksop was gram run by the Bank's education and by the NWorld Bank 37% dams. The workshop was environment staff to promote educa- attended by representatives tion about the environment. The se- and its partner or- Protect of governments, civil society ries features such speakers as Dr. ganizations. The Waters oranments, civil s .toel Richard English, USAID of Cambo- billion dollar GEEF1 financial institutions, and the dia, who cited real-life examples to portfolio is comple- private sector, who unani- demonstrate how to build environmen- tal constituencies through environ- mented by over $4.22 billion in associated cofinancing. The mously agreed that the Com- mental education.The Program aims GEF-to-cofinancing ratio of over 1-to-4 reflects both the mission was an important to include environmental education in financial leverage effect of GEF funds, and progress to- step. The Commission is the classroom, increase environmen- wards mainstreaming global environmental concerns in the widely regarded as a signifi- tal knowledge for civil society, and wrsmisraiaaoa niomna ocrsi h build institutional capacity. Bank's lending operations and policy dialogue with its cli- cant opportunity to address one of the most controversial ents. The Bank expects its GEE portfolio to increase steadily issues in environment and Contact: Lakshmanan Ariasingam, over the coming years, and is supportive of a strong replen- development today lariasingam@worldbank.org. ishment of the GEF Trust Fund. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 57 Mailing List - :: ;1, ~ r;I I mI ' IIIA ; ,1 In: -IaD 1N-t:H :. I-T7 Igo Name Title Office Telephone Fax Number Organization Address City/State/Postal Code Countrv Email Address My work: (Check only one) My area(s) of Interest: (Check all that apply) U International or regional organization [ Pollution Management/Technology O Government agency or ministry OT Water Resource Management Ii Nongovernmental organization D Natural Habitats/Biodiversity O Research institution or library O Climate Change/Ozone U School/lUniversity U Social Perspectives U Private sector U Environment Indicators/lnformation Systems u Consultant O Environmental Economics & Policy U Student J Private Sector & Finance O News media O Sustainable Development in general D Other U Other Mail or fax to: Environment Department Publications The WXorld Bank U 1818 H Street, N.W, Room MC-5-127 W7ashington, D.C. 20433 U.S.A. Fax: 202-477-0565; Phone 202-458-8459 (voice mail) http://www-esd.worldbank.org/html/esd/envmain.htm To order the full environmental project matrix or other Environment Department publications, refer to our publications list and/or list those you would like to receive using the order form below. To order more than 5, please contact the Environment Department publications office directly. Title Series No. Author Date 58 ENVIRONMENT MATTERS * FALL 1997 Seminaris & Publications Science, Economics and Law The World Bank's Fifth Environmentally Sustainable Development Conference October 6 . 7, 1997 Global treatics ire on celement of addres>lio,g global cn\ iroinmenta] issues'. Goteriiments need help to buldt the scientific, ecotnomic arnd legal infrastructure to put into practice the major global treaties. This scar the ESSD wonference hopec to: Cootribute to a better underrtanding of the roles and relationships amn(nig g-lohal systems and sustainable de elopoicut at the nianional and the local levels. Fracilitate ac.ess to best practices and innovative procsses. Initegr-ate global concernis in each country development stratcgy, Assist devclopnment practitionerc to better assess the global connections of their work The Conference is Free. To register: phone/202-458-4398 * fitx/202522-3265 - em/ElgSDCOC@worldbank.org A Selection of Recent World Bank Group Environmental Publications* General Water Resources Management Large Dams: Learning from the the Past, Looking at Integrated Coastal Zone Management in Mozambique the Future 0. Linden & C.G. Lundin, Editors, July 1997. World Bank Land, Tony Dorcey, Editor. Achim Steiner, Michael Acreman, Brett Water, and Natural Habitats, Sida Department for Research Orlando, Co-Editors. WVorkshop Proceedings. Gland, Switzerland. Cooperation, Fax (202) 477-0568. April 11-12, 1997. IUCN-The World Conservation Union & The World Bank Group. $25.00** The Journey from Arusha to Seychelles 0. Linden & C.G. Lundin, Editors. June 1997. Sida Department __ Rural Development Strategies for Poverty Reduction and for Research Cooperation, and World Bank Land, Water Natural _ Environmental Protection in Sub-Saharan Africa Habitats, Fax (202) 477-0568. - Kevin Cleaver. VWorld Bank, 1997. $20.00** L___ Sustaining Natural Resources Through Community __ Economic Perspectives on iNature Tourism, Conservation and Management: A Framework for Action N Development Ensironment Department Dissemination Note No. 56, April 1997. ff Environment Department Paper No. 55, September 1997. World Land, Water, and Natural Habitats, Fax (202) 477-0568. _= Bank Pollution and Environmental Economics, Fax (202) 477- 0968. ANNUAL REVIEW * JULY 1996-JUNE 1997 (FY97) 59 Animals Under Threat RAIVS-ASLA: An Assessment MIodeal for Acid Deposition in Environment Department Dissemination Note No. 57, April 1997. Asia Land, Vater, and Natural Habitats, Fax (202) 477-0568. Robert J. Downing, Ramesh Ramankutty, and Jitendra J. Shah, N' rld Bank, 1997, $20.00 ** Natural Habitats and Ecosystems Management in Drylands: Moving to Greener Pastures?: Multinationals and the An Overview Pollution-haven Hypothesis Environment Department Paper No. 51, May 1997. Land, NWater, Policy Research Working Paper No. 1744, March 1997. Policy and Natural Habitats, Fax (202) 477-0568. Research Department, Fax (202) 522-1153. Biodiversity Conservation in the Russian Federation Global Environment Environment Department Paper No. 54, May 1997. Land, \Nater, MIarket Based Instruments for the Implementation and Natural Habitats Division, lFax (202) 477-0568. of the MTontreal Protocol in Developing Countries Environment Department Paper No. 53, November 1996. WMorld Social Perspectives Bank Global Environment, Fax (202) 522-3256. Cents and Sociability: Household Income & Social Capital Partnerships for the Global Environment in Rural Tanzania Environment Department Dissemination Note No. 51, March Policy Research Working Paper No. 1796, July 1997. Policy 1997. Global Environment, Fax (202) 522-3256. Research Department, Fax (202) 522-1153. A Review of Participation in the World Bank's GEF Portfolio Social Dimensions ofEconomic Development Environment Department Dissemination Note No. 52, March Environment Department Paper No. 48, February 1997. Social 1997. Global Environment, Fax (202) 522-3256. Development Department, Fax (202) 522-3247. Guidelines for Climate Change Global Overlays Environment Department Paper No. 47, February 1997. Global Participation in Forest Management and Conservation Environment, Fax (202) 522-3256. Environment Department Paper No. 49, April 1997. Social Development Department, Fax (202) 522-3247. The World Bank Group & the Global Environment Facility Environment Department Dissemination Note no. 55, April 1997. Towards STD/AIDS Awareness and Prevention in Plateau Global Environment, Fax 522-3256. State, NTigeria: Findings from a Participatory Rural Appraisal Global Environment Benefits of Land Degradation Control Environment Department Paper No. 50. Social Development Stefano Pagiola. Environment Department Dissemination Note Department, Fax (202) 522-3247. No. , September 1997. World Bank Global Environment, Fax NGO Involvement in World Bank-Financed Social Funds: (202) 522-3256. Lessons Learned A Selection of Related WEB Sites Environment Department Paper No. 52. Social Development Department, Fax (202) 522-3247. The Global Energ. Efficiency Initiative Public Consultation in Environmental Assessment: http://www.geei.org Lessons from East and South Asia Environment Department Dissemination Note No. 53, Social CGIAR - The Consultative Group for International Agricultural Development Department, Fax (202) 522-3247. Research http://w-,vw.cgiar.org Social Assessment Influences: Design of the India Tuberculosis Control Project Environment Department Dissemination Note. No. 54, Social Agriculture and Natural Resource Department Development Department, Fax (202) 522-3247. http://-eww-esd.worldbank.org/html/esd/agr/agrmain.htm Pollution Management Social and Poverty Policy Phasing Out Lead From Gasoline in Central and Eastern http://www.worldbank.org/html/hcovp/psp/contents.html Europe: Health Issues, Feasibility, and Policies Magda Lovei, ed., World Bank, June 1997, $20.00 Sustainable Banking with the Poor http://www-esd.worldbank.org/html/esd/agr/sbp 'For a full listing of the Bank's current environmental publications, send or fax the enclosed mailing list form, call (2020) 458-8459 (voice mail), or look us up on the Web at http://www.,w-esd.worldbank,org. "*Order from the World Bank Publications Order Line (202) 473-1155. Email: Books@worldbank.org Fax (202) 522-2627. 60 ENVIRONMENT MATTERS * FALL 1997 Open your doors and look abroad. From your blossoming garden gather fragrant memories of the vanished flowers of an hundred years before. In the joy of your heart may you feel the living joy that sang one spring morning, & sending its glad voice across an hun*,, years. The Garderer Rabindranath Tagor* Nobel Prize winner Rabindranath Tagore wrote during India's struggle for independence. He died in Calcutta in 1941, six years before independence. India and Pakistan celebrate their fiftieth anniversary of independence this year. * Coming out at the Fifth Annual Conference on Environmentally Sustainable Development* Rural Well-Being: From Vision to Five Years after Rio: Action (Proceedings of the 4th Annual Innovations in * ESD Contference) edited by Ismail Environmental Policy. Serageldin and David Steeds. Environmentally Sustainable Enviroonmenlally Sustainable Devselopment _ Development Studies and Proceedings No. 15. 540. Mlonographs Series No. 18. (Released at the June 1997 United Nations General Rural Assembly Special Session on the Development: envirojiment) 60 pages (ISBN 0- From Vision to Action. 8213-3957-5) 820.00. Environmzentally Sustainable Desvlopmsent Studies and Monzograph Series No 12. Price to be determined. Advancing Sustainable Development: The World Bank and Agenda 21. Environmentally Sustainable Developmzent Studies and Monographs Series No. 19. (Released at the June 1997 United Integrated Pest Management: Nations General Assembly Special Session Strategies and Policies for Effective _ on the environment) 90 pages (ISBN 0- Implementation by Tjaart W. Schillhorn 8213-3974-5) 820.00 van Veen, Douglas A. Forno, Steen Joffe, Dina L. Umali- Deininger, and Sanjiva Cooke. Environmzentalliy Sustainable_ Development Stufdies anel4Monographs Series Voices of the Poor: Poverty No. 13. 48 pages (ISBN 0-8213-3748-3) and Social Capital in S20.00. Tanzania by Deepa Narayan. Enviironmentallh Sustainable Developmnent Studies & * - Rural Finance: Issues, Design, and Monographs SeriesNo. 20. - . Best Practices by Jacob Yaron, _McDonald P. Benjamin, Jr., and Gerda L. Piprek. Environmentally Sustainable vDeselop inent Studies and V11onograph Series No. 14 (Rural Development subscries). 168 Bioengineering of Crops: Report of pp, 820. the World Bank Panel on Transgenic Crops by Henry W. Kendall and others. Environmentally Sustainable Developnment Stutdies & Monographs Series No. 23. Price Social Assessments for Better to be determined. Development: Case Studies in Russia and Central Asia by Michael Cernea and Ayse Kudat. Ens-ironrnten?tallv Sustainlable Developmnent Studies and M7lonograph Ser ies No. 16. 228 pages (ISBN 0-8213-3906-0) 839.95. Expanding the Measure of Wealth: Indicators of Environmentally Science, Economics and Law Sustainable Development by the T World Bank. Envirouonentally Ststfaiimable Th e World 8 ank' s Development Studies anldMonograph Series Fifth Environmentally Sustainable Development Conference No. 17. (Released at the June 1997 Unlited October 6 - 7, 1997 Nations General Assembly Special Session The Conference Is Free. on1 the environment) 120 pages (ISBN 0- 8213-3956-7) S20.00 l er 202-A . * X.2O2522.3265 . vreLSOe->w s raetsr5 All ofthesepublications rve availablje ioin the World Buak PlbliCa7tions Line at (202) 473-1155 or booksC@worldban 0org.