IMPACT REPORT 2017 IMPACT REPORT 2017 This publication is a product of Investor Relations Capital Markets Department The World Bank Treasury 1818 H Street NW Washington, DC 20433 USA E debtsecurities@worldbank.org T +1 (202) 477 2880 W treasury.worldbank.org/capitalmarkets TABLE OF CONTENTS INTRODUCTION | 2 SELECT PROJECT IMPACTS | 5 PROJECT SUMMARY | 6 WORLD BANK GREEN BOND PROCESS | 8 ELIGIBLE PROJECTS BY SECTOR | 10 ANNEX 1: IMPACT REPORTING APPROACH | 30 ANNEX 2: WORLD BANK PROJECT CYCLE | 32 ANNEX 3: LIST OF ABBREVIATIONS | 34 DISCLAIMER | 35 INTRODUCTION WORLD BANK GREEN BONDS: MORE THAN US$10 BILLION IN LESS THAN 10 YEARS It has been almost 10 years since the World Bank issued the market’s first labeled green bond. We have since issued more than US$10 billion in green bonds to investors around the world. And on a global scale, new green bond issuances surpassed US$120 billion in 2017. The growing diversity of issuers, including sovereigns Fiji and Nigeria, and structures, such as Islamic finance bonds, are a clear indication that green bonds are no longer a niche product. We are proud to have helped pioneer the green bond market through our contributions as an issuer and standard-setter, and are grateful for the long-standing support and recognition from our peers and counterparts. A particular honor was the 2017 Joan Bavaria Award for Building Sustainability into the Capital Markets awarded to Heike Reichelt, World Bank Head of Investor Relations and New Products. The award is presented annually by Ceres and Trillium Asset Management in recognition of leadership in transforming the capital markets into a system that balances economic prosperity with social and environmental concerns. We are equally proud of the impacts made through our partnership with green bond investors. Since 2008, investors in World Bank Green Bonds now support 91 climate change mitigation and adaptation projects in 28 countries. This report is a review of our activities and their contribution to climate action in developing countries. Looking forward—and in the spirit of the Joan Bavaria Award—we will continue to focus on developing innovative products that offer investors opportunities to support climate and other global development goals. Together, we can leverage the capital markets to create win-win solutions that have positive financial, environmental and social outcomes for people around the world. We are the first generation to feel the impact of climate change, and the last generation that can do something about it. Kristalina Georgieva Chief Executive Officer, World Bank THE WORLD BANK GREEN BOND IMPACT REPORT 2017 2 INTRODUCTION We are committed to a future where the capital markets play a growing role bringing innovative financial solutions to help tackle critical development issues like climate change, health, infrastructure and other goals to build a more sustainable future. Arunma Oteh Vice President & Treasurer, World Bank World Bank Green Bond Milestones November 2008 First Green Bond April 2009 First US Dollar Green Bond February 2010 Green Bond Program Reaches US$1 Billion 10 Green Bonds in 10 Different Currencies October 2012 50th Green Bond March 2014 First Euro Green Bond July 2014 First Equity-Index Linked Green Bond February 2015 Largest Green Bond with the Longest Maturity: US$600 Million, 10-Year June 2015 100th Green Bond April 2017 Green Bond Program Reaches US$10 Billion THE WORLD BANK GREEN BOND IMPACT REPORT 2017 3 THE WORLD BANK GREEN BOND IMPACT REPORT 2017 4 SELECT PROJECT IMPACTS SELECT PROJECT IMPACTS OF THE 91 WORLD BANK PROJECTS ELIGIBLE FOR GREEN BOND FINANCING, 25 HAVE CLOSED AND THEIR IMPLEMENTATION AND COMPLETION RESULTS REPORTS HAVE BEEN PUBLISHED. HIGHLIGHTED BELOW ARE ACTUAL IMPACTS FROM THESE PROJECTS WITH SELECT RESULTS AGGREGATED TO ILLUSTRATE THE MAGNITUDE OF THEIR IMPACTS. 13 COMPLETED PROJECTS IN RENEWABLE ENERGY & ENERGY EFFICIENCY 67,460 GWh THE TOTAL ELECTRICITY CONSUMED IN 2015 IN NEW ZEALAND & BULGARIA COMBINED EQUIVALENT TO IN ANNUAL ENERGY SAVINGS ABOUT 32.4 MILLION TONS OF CO2 EQUIVALENT AVOIDED 5,980 GWh EQUIVALENT TO THE TOTAL POWER GENERATED BY 1,126 WIND TURBINES RUNNING FOR ONE YEAR IN THE US ANNUAL ENERGY PRODUCED FROM RENEWABLE RESOURCES 1,470 MW EQUIVALENT TO THE TOTAL INSTALLED ELECTRICITY GENERATION CAPACITY IN NICARAGUA IN 2016 RENEWABLE CAPACITY FROM SOLAR, WIND, AND HYDRO TECHNOLOGIES 7 COMPLETED PROJECTS IN WATER, WASTEWATER, & WASTE MANAGEMENT 61,650 HECTARES 28 WASTE DUMPS 4,800,000 TONS WITH IRRIGATION SERVICES IN BRAZIL & MOROCCO OF UNTREATED WASTEWATER REHABILITATED OR RESTORED IN THE CLOSED OR REHABILITATED PREVENTED FROM FLOWING INTO DOMINICAN REPUBLIC & TUNISIA RIVERS ANNUALLY IN CHINA 5 COMPLETED PROJECTS IN AGRICULTURE, LAND USE & FORESTRY, RESILIENT INFRASTRUCTURE & BUILT ENVIRONMENT, SUSTAINABLE TRANSPORTATION 774,600 HECTARES 6,000,000 TONS EQUIVALENT TO 1,284,797 CARS TAKEN OFF OF FOREST RESTORED OR OF CO2 EMISSIONS REDUCED DUE TO THE ROAD FOR REFORESTED IN CHINA & MEXICO REFORESTATION IN MEXICO ONE YEAR 6,600,000 PEOPLE 15% INCREASE BENEFITED FROM FLOOD PROTECTION IN CATASTROPHE INSURANCE IN CHINA COVERAGE IN MACEDONIA & SERBIA 25% DECREASE A FLEET OF + 52,000 BICYCLES IN TRAVEL TIME FOR 4 MILLION PUBLIC TRANSPORT PASSENGERS IMPLEMENTED IN XI’AN, CHINA Sources: US Environmental Protection Agency Greenhouse Gas Equivalencies Calculator, CIA World Factbook THE WORLD BANK GREEN BOND IMPACT REPORT 2017 5 PROJECT SUMMARY PROJECT SUMMARY The mission of the World Bank (International Bank for Reconstruction and Development, IBRD) is to end extreme poverty and boost shared prosperity in a sustainable manner. Tackling climate change plays a critical role in achieving these goals. Through World Bank Green Bonds, investors make an impact by supporting the financing of a wide range of projects across many sectors that are addressing climate change around the world. Green Bond Program Issuance. In the past 10 years, the World Bank has issued 132 Green Bonds in 18 currencies for a total of US$10.1 billion in funding to support the transition to low-carbon and climate resilient growth. During FY17 (July 1, 2016 to June 30, 2017), the World Bank issued US$1.0 billion in Green Bonds. As of June 30, 2017, US$4.8 billion of Green Bonds were outstanding. Commitments and Disbursements. At the end of the fiscal year, seven new projects were added to the Green Bond eligible project portfolio bringing the number of eligible projects to 91 and a total of US$15.4 billion in commitments. Of these commitments, US$8.3 billion in Green Bond proceeds were allocated and disbursed to support projects in 28 countries and another US$6.8 billion had yet to be disbursed. By Region As of June 30, 2017, the East Asia and Pacific Region, at 37%, was the largest regional exposure by share of commitments in the Green Bond eligible project portfolio. Green Bond Commitments (As of June 30, 2017) BY REGION Amounts Committeda/ Allocated & in Eq. US$ billion Outstandingb/ (may not add up due to rounding) ECA East Asia & Pacific (EAP) 5.7 2.8 14% EAP Europe & Central Asia (ECA) 2.1 1.4 MNA 37% 6% Latin America & Caribbean (LAC) 3.9 2.5 SAR 18% Middle East & North Africa (MNA) 0.9 0.3 LAC South Asia (SAR) 2.8 1.3 25% Total 15.4 8.3 * Map shows regional breakdown for commitments. Notes: a/ Committed amount net of cancellations for eligible projects for which the loans are disbursing. b/ Green Bond proceeds supporting financing of disbursements to eligible projects net of loan repayments. Not adjusted for matured bonds that were not replaced with new green bonds. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 6 PROJECT SUMMARY By Sector As of June 30, 2017, Renewable Energy and Energy Efficiency and Transport projects represented the largest sectors in the Green Bond eligible project portfolio. Together, these sectors made up approximately 73% of Green Bond commitments. Green Bond Commitments (As of June 30, 2017) BY SECTOR Amounts in Eq. US$ billion Allocated and (may not add up due to rounding) Committeda/ Outstandingb/ Mitigation Adaptation Total Renewable Energy and 6.2 0.0 6.2 3.8 Renewable Energy Energy Efficiency and Energy Transport Efficiency 33% Transport 5.1 0.0 5.1 2.0 40% Water, Wastewater, and Solid 0.1 1.3 1.4 0.9 Waste Management Agriculture, Land Use and 0.5 1.3 1.8 0.8 Forestry Water and Resilient Infrastructure, Built 0.3 0.7 0.9 0.7 Resilient Waste Mgmt. Infrastructure Environment and Other and Other Agriculture, 9% 6% Forestry and Total 12.1 3.3 15.4 8.3 Ecosystems 12% 79% 21% 100% Notes: a/ Committed amount net of cancellations for eligible projects for which the loans are disbursing. b/ Green Bond proceeds allocated to support financing of disbursements to eligible projects net of loan repayments. Not adjusted for matured bonds that were not replaced with new green bonds. SECTOR DESCRIPTIONS Renewable energy development amounts to 20% of projects eligible for support from the World Bank’s Green Bonds. The energy sector contributes about 40% of global CO2 emissions. Despite improvements in some countries, the global CO2 emission factor for energy generation has hardly changed over the last 20 years, making the transition to a more sustainable energy mix critical for climate change mitigation.1 Energy efficiency is the low cost option to reduce emissions and unnecessary expenditures. At the same time, a projected 2.4 billion people are expected to migrate to urban areas by midcentury and cities already account for two-thirds of global energy demand thus contributing to 70% of GHG emissions.2 Harnessing the “hidden fuel” of energy efficiency offers many opportunities to help cities achieve energy security, energy savings, improved municipal services, increased competitiveness, and reduced costs and emissions.3 20% of World Bank Green Bond eligible projects is dedicated to energy efficiency improvements. Transport contributes about 23% of global greenhouse gas emissions. With motorization on the rise, that share is expected to grow dramatically, making this a critical sector to reform in order to address climate change.4 Transport improvements that shift to low-emission modes also generate “co-benefits” in terms of reducing congestion, local air pollution, oil dependency and transport safety risks.5 33% of World Bank Green Bond eligible projects focuses on transportation efficiency and urban mass transit solutions. Water stress is an increasing challenge facing the world, driven by population and economic growth, land use changes, increased climate variability and change, and declining groundwater supplies and water quality.6 Improved water resources management and climate-smart water infrastructure help countries manage this risk. 9% of World Bank Green Bond eligible projects focuses on water, wastewater and waste management issues. Agriculture is vulnerable to climate change and it is, with associated deforestation, the largest contributor to greenhouse gases. Climate smart agriculture has the potential to deliver a “triple-win” of increased productivity, enhanced resilience, and carbon sequestration.7 12% of World Bank Green Bond eligible projects illustrate measures in livestock, agriculture, and land, forest and ecosystem management aimed at mitigating and/or adapting to climate change. 1 https://openknowledge.worldbank.org/handle/10986/17143 2 http://www.worldbank.org/en/region/eap/publication/energizing-green-cities-in-southeast-asia 3 http://www.worldbank.org/en/news/feature/2014/12/08/building-energy-efficient-cities-new-guidance-notes-for-mayors 4 http://www.worldbank.org/en/topic/transport/overview#1 5 http://siteresources.worldbank.org/INTTRANSPORT/Resources/336291-1227561426235/5611053-1229359963828/TP40-Final.pdf 6 http://www.worldbank.org/en/topic/waterresourcesmanagement 7 http://www.worldbank.org/content/dam/Worldbank/document/CSA_Brochure_web_WB.pdf THE WORLD BANK GREEN BOND IMPACT REPORT 2017 7 WORLD BANK GREEN BOND PROCESS WORLD BANK GREEN BOND PROCESS Green Bond Eligible Projects All World Bank bonds support sustainable development because the net proceeds from the sale of the bonds are used by the World Bank (IBRD) to support financing of sustainable development projects and programs in IBRD’s member countries. They fit well within all investor mandates, especially investment strategies that incorporate environmental, social and governance factors. The World Bank Green Bonds are a subset of its sustainable investment opportunities. Green Bond eligible projects promote the transition to low-carbon and/or climate resilient growth in World Bank client countries targeting climate change mitigation and adaptation. The World Bank’s eligibility criteria were independently reviewed by the Center for International Climate and Environmental Research at the University of Oslo (CICERO). CLIMATE CHANGE PROJECT EXAMPLES MITIGATION ADAPTATION SOLAR AND WIND INSTALLATIONS PROTECTION AGAINST FLOODING (INCLUDING REFORESTATION AND WATERSHED MANAGEMENT) FUNDING FOR NEW TECHNOLOGIES THAT PERMIT SIGNIFICANT REDUCTIONS IN GREENHOUSE GAS FOOD SECURITY IMPROVEMENT AND IMPLEMENTING EMISSIONS STRESS-RESILIENT AGRICULTURAL SYSTEMS (WHICH SLOW DOWN DEFORESTATION) REHABILITATION OF POWER PLANTS AND TRANSMISSION FACILITIES TO REDUCE GREENHOUSE SUSTAINABLE FOREST MANAGEMENT AND AVOIDED GAS EMISSIONS DEFORESTATION GREATER EFFICIENCY IN TRANSPORTATION, INCLUDING FUEL SWITCHING AND MASS TRANSPORT WASTE MANAGEMENT (METHANE EMISSION) AND CONSTRUCTION OF ENERGY-EFFICIENT BUILDINGS CARBON REDUCTION THROUGH REFORESTATION AND AVOIDED DEFORESTATION Two-Stage Process to Identify Green Bond Eligible Projects 1. All projects supported by the World Bank go through a rigorous review and approval process to ensure that they meet countries’ development priorities. The process includes: (i) early screening to identifying potential environmental or social impacts and designing policies and concrete actions to mitigate any such impacts; and (ii) approval by the Board of Executive Directors – a resident board with 25 chairs representing member countries. 2. Environmental specialists then screen approved World Bank projects to identify those that meet the World Bank’s Green Bond eligibility criteria. For more information about the World Bank Green Bond implementation guidelines and the eligibility criteria, see http://treasury.worldbank.org/cmd/pdf/ImplementationGuidelines.pdf. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 8 WORLD BANK GREEN BOND PROCESS Impact Reporting The World Bank is committed to transparent reporting of its climate financing including the projects that are part of its Green Bond program. Detailed information for all World Bank financed projects is available on the World Bank website http://projects.worldbank.org. Project summaries and impact indicators for Green Bond eligible projects are summarized on the investor website at: http://treasury.worldbank.org/cmd/htm/MoreGreenProjects.html. The following section lists the 91 World Bank eligible projects supported by the financing of World Bank Green Bonds as of June 30, 2017. The projects are organized by sector. Selected results indicators, World Bank loan amount, share of loan amount to total project costs, and the amount of Green Bond proceeds that have been allocated to support disbursements to each project are disclosed. Annex 1 describes the reporting approach and should be read in conjunction with this report. Interpreting Reported Results The intention of impact reporting is to help investors develop a more detailed understanding of the climate and environmental impacts that can be expected or projected to result from Green Bond eligible projects. Several key results indicators have been selected and where possible quantified, but it is important to appreciate the inherent limitations of data reported. The main considerations to adequately interpret results are: • Scope of results: Reporting is based on “ex-ante” estimates of climate and environmental impacts at the time of project appraisal and mostly for direct project effects, except as indicated where the results have been updated for actual results at the time of project completion. • Uncertainty: An important consideration in estimating impact indicators and projecting results is that they are based on assumptions. While technical experts aim to make sound and conservative assumptions that are reasonable based on the information available at the time, the actual environmental impact of the projects generally diverge from initial projections. In general, behavioral changes or shifts in baseline conditions can cause deviations from projections. • Comparability: Caution should be taken in comparing projects, sectors, or whole portfolios because baselines (and base years) and calculation methods may vary significantly. In addition, the cost structures between countries will also vary, so that developing cost-efficiency calculations (such as results per dollar invested) could, for example, place smaller countries with limited economies of scale at a disadvantage and will not take into consideration country-specific context. • Omissions and qualitative results: Because the selected projects aim to provide social and developmental benefits as well as climate and environmental ones, they will have impacts across a much wider range of indicators than captured in the next section. Therefore, exclusively focusing on the reported indicators will leave out other important development impacts. Where quantitative data is unavailable, qualitative indicators have been included to illustrate other beneficial impacts. To better understand the developmental impacts of projects and the broader country context, please view the full project documentation available on the World Bank website at http://projects.worldbank.org. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 9 ELIGIBLE PROJECTS BY SECTOR ELIGIBLE PROJECTS BY SECTOR Target Results and Committed and Allocated Amounts A. Renewable Energy and Energy Efficiency B. Transport C. Water, Wastewater, and Waste Management D. Agriculture, Land Use, Forests, and Ecological Resources E. Resilient Infrastructure, Built Environment, and Other Results should be read in conjunction with Annex 1 which describes the reporting approach. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 10 ELIGIBLE PROJECTS BY SECTOR THE WORLD BANK GREEN BOND IMPACT REPORT 2017 11 Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 1 Belarus - Biomass District Heating M 20 236,000 1,660,000 106 420,000 Cumulative over 5 years: 90.0 100% 37.6 (P146194 | FY14): increase ● 1,180,000 MWh energy energy efficiency in district heating savings from efficiency systems and replace natural gas investments. with wood biomass as a renewable ● 2,100,000 tons of CO2 eq. energy source. emissions reduced. 2 China - Beijing Rooftop Solar M 20 na 100,000 100 89,590 ● 10 - 15% of schools’ annual 120.0 50% 18.9 ELIGIBLE PROJECTS BY SECTOR Photovoltaic Scale-Up (Sunshine power use provided by Schools) Project (P125022 | FY13): renewable sources. promote renewable energy in 1000 ● 650,000 students in 1,000 schools and other educational schools benefit. institutions. 3 China - Eco-Farming Project M 20 na ~ ~ 900,000 ● 400,000 - 500,000 rural 119.8 27% 119.8 (P096556 | FY09): promote households benefit with sustainable farming systems and cleaner biogas-based reduce greenhouse gas emissions cooking and heating THE WORLD BANK GREEN BOND IMPACT REPORT 2017 (from methane and burning coal systems. and firewood) benefiting rural Updated for actual results at communities with biogas systems. project completion. 4 China - Energy Efficiency M 20 21,807,900 na na 6,510,000 ● 2,666,000 tons of coal eq. 300.0 45% 300.0 Financing (P084874 | FY08, FY12): (TCE) annual energy savings promote energy conservation in (assuming 150 subprojects) China’s industrial sector supporting Updated for actual results at intermediary loans for energy project completion. efficiency projects in medium Renewable Energy and Energy Efficiency and large-sized manufacturing companies. 5 China – Financing for Air Pollution M 20 3,125,000 2,460,000 ● 3,600 tons of particulate 512.5 100% 12.8 Control (P154669 | FY16): emissions (local air pollutant) reduce air pollutants and carbon reduced by renewable emissions through lending for energy and energy efficiency energy efficiency and clean energy, and subprojects financed. with a focus on the Jing-Jin-Ji and neighboring regions. 6 China - Energy Efficiency M 20 19,637,726 na na 4,930,000 Project completed. 45.5 30% 45.5 Financing II Project (P113766 | FY10): promote energy conservation in China’s industrial sector through intermediary loans to energy efficiency projects. 7 China - Green Energy Schemes M 20 621,700 ~ ~ 165,000 100.0 41% 65.8 for Low-carbon City in Shanghai (P127035 | FY13): promote greener city development with energy efficiency and renewable energy installations in commercial 12 and government buildings. Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 8 China - Jiangxi Shihutang Both 20 na 472,000 120 450,000 ● 4,400 hectares of crop land 100.0 31% 100.0 Navigation & Hydropower protected from flooding. (P101988 | FY09): maximize ● RMB 26.6 million reduction inland waterway transport capacity in annual flood losses. as a low-carbon alternative to Updated for actual results at land transport and generate project completion. hydropower. ELIGIBLE PROJECTS BY SECTOR 9 China - Liaoning Third Medium M 20 2,757,200 na na ~ ● 8,935 tons of sulphur 165.0 44% 165.0 Cities Infrastructure (P099224 dioxide avoided per annum. | FY08): improve the energy ● 11,659 tons of total efficiency and environmental suspended particles (local performance of heating and gas pollutant) avoided per services. annum. Updated for actual results at project completion. 10 China - Shandong Energy M 15 3,247,500 165,000 30 ~ ● 318,000 TCE energy 144.7 46% 90.1 THE WORLD BANK GREEN BOND IMPACT REPORT 2017 Efficiency (P114069 | FY11): savings. improve the energy efficiency and environmental performance of the industrial sector and finance renewable energy production from biomass (corn and wheat stalk). 11 China - Urumqi District Heating M 20 1,229,400 na na 415,500 ● 1,626 MW of inefficient 99.1 29% 99.1 Project (P120664 | FY11): promote coal-fired boilers replaced by energy efficiency in district heating combined heat and power Renewable Energy and Energy Efficiency by replacing dispersed boilers in district heating network. urban areas with an integrated Updated for actual results at district heating network. project completion. 12 India – Grid-Connected Rooftop M 25 647,200 250 MW 1,200,000 ● The 250 MW capacity of 500.0 55% 43.0 Solar Program (P155007 | FY15): rooftop solar photovoltaics increase solar rooftop capacity to expected to be grid- the power grid and incentivize the connected by year 5 with at market for rooftop solar power by least another 150 MW to be way of low cost financing. connected in subsequent years. ● 13 million tons of CO2 eq. in cumulative savings over the project’s 25 year life. ● Market development for rooftop photovoltaic systems in different business models. 13 Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 13 India - Power System Development M 20 8,699,000 na na ~ ● Reduced transmission 400.0 16% 400.0 Project IV (P101653 | FY09): losses equivalent to between expand transmission infrastructure 526-993 MW. resulting in decreased CO2 ● 107,000 circuit km of emissions through efficiency gains increased transmission and transferring surplus hydro capacity. energy to power deficit regions. ● 68,000 GWh power ELIGIBLE PROJECTS BY SECTOR exchange growth between regions. Updated for actual results at project completion. 14 India - Rampur Hydropower Project M 30 na 1,770,000 412 1,407,700 Project completed. 400.0 60% 400.0 (P095114 | FY08): scale-up access to renewable energy through construction of a run-of-the-river hydroelectric scheme. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 15 Indonesia - Indonesia Geothermal M 30 na 1,210,000 150 1,100,000 ● 33,000,000 tons of CO2 175.0 30% 122.4 Energy (P113078 | FY12): increase eq. cumulative emission power generation from renewable reductions of over 30 years. geothermal resources. 16 Jamaica - Energy Security and M na na ~ ~ ~ ● Gas and renewable energy 15.0 100% 13.7 Efficiency Enhancement Project use increased above its (P112780 | FY11): increase baseline of 42 MW of the Renewable Energy and Energy Efficiency energy efficiency and security by total energy matrix (at project promoting greater participation of inception). renewable energy and gas-based ● US$9/MWh reduction (from generation in the energy mix. US$21/MWh to US$12/ MWh) in cost of electricity generation. 17 Mexico - Efficient Lighting and M 5 2,000,000 na na 664,000 Cumulative over 5 years: 250.6 35% 250.6 Appliances Project (P106424 | ● Exchange 45.8 million FY11): promote the efficient use light bulbs and 1.9 million of energy and to mitigate climate refrigerators and air change by increasing the use of conditioners. energy efficient technologies in the ● 3.32 million tons of CO2 eq. residential sector. emissions reduced. ● 50-60% electricity saved in residential households. ● 10,000,000 MWh in cumulative energy savings. Updated for actual results at project completion. 14 Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 18 Mexico - Integrated Energy M 20 na 5,800 6.2 241,000 ● 4,400 rural households 12.0 14% 12.0 Services (P088996 | FY08): receive electricity from increase energy access for poor renewable sources. communities using renewable ● Larger long-term national energy (mainly solar and some impact with replication wind generators) and to develop throughout rural areas. a sustainable market for providing Updated for actual results at ELIGIBLE PROJECTS BY SECTOR energy services in remote rural project completion. areas. 19 Mexico - Municipal Energy M 8 127,590 5,800 6.2 57,926 Cumulative over 8 years: 100.0 64% 0.34 Efficiency Project (P149872 | ●1,020,714 MWh saved FY16): promote energy efficiency through efficient lighting, in street lighting, water use, and buildings, and water buildings in 23 municipalities. equipment. ● 463,405 tons of CO2 emissions avoided. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 20 Mexico - Sustainable Rural M 10 20,493 32,130 ~ 283,900 Cumulative over 7 years: 96.8 47% 75.0 Development (and Add Financing) ●143,450 MWh saved (P106261 | FY09, FY13): from energy efficiency increase the use of energy investments. efficient, waste management and ● 224,908 MWh produced by renewable energy technologies in renewable (biomass) energy. agribusiness. ● 1,987,500 tons of CO2 eq. emission avoided. 21 Moldova - District Heating M 30 96,700 na na 22,800 ● 34% reduction in heating 40.5 66% 22.1 Renewable Energy and Energy Efficiency Efficiency Improvement (P132443 system breakdowns by year | FY15): improve quality and 5. reliability of heating services by ● 109,000 people with improving the operational efficiency access to more energy and viability of a new district efficient cooking and heating. heating company. 22 Montenegro - Energy Efficiency M 25 30,000 na na 12,200 Cumulative over 5 years and 12.4 100% 11.9 (and Additional Financing) targeting 27 buildings: (P107992 | FY09, FY14): ● 150,000 MWh in lifetime improve energy efficiency and energy savings. environmental quality in 27 ● 60,750 metric tons of buildings used for health and CO2 eq. lifetime emissions education services. reduced. 23 Morocco - Clean and Efficient M 25 na ~ 75 78,000 ● 412,000 people benefit 125.0 79% 34.2 Energy Project (P143689 | FY15): from electricity and develop the first utility sized associated economic photovoltaic plant to more reliably opportunities of which 50% supply solar power to remote are expected to be female. regions. 15 Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 24 Morocco – Noor Ouarzazate M 30 na 1,638,000 410 522,000 341.6 15% 66.3 Concentrated Solar Power (P131256 | FY12, FY15): replace fossil fuel-based electricity with renewable energy using concentrated solar power technology. ELIGIBLE PROJECTS BY SECTOR 25 Peru - Second Rural Electrification M 20 na ~ ~ ~ ● 42,500 rural households 50.0 60% 44.6 (P117864 | FY11): provide electrified, of which 20,000 electricity to remote communities served by solar photovoltaic by extending the conventional systems from regulated electricity grid and financing solar electricity distribution photovoltaic systems. companies. ● 174,000 people benefited. 26 Tunisia - Energy Efficiency M 20 580,000 na na 126,000 Project completed. 31.2 74% 31.2 (P104266 | FY09): support THE WORLD BANK GREEN BOND IMPACT REPORT 2017 industrial energy efficiency and co-generation investments by providing financing through intermediaries. 27 Turkey - Private Sector Renewable M 20 3,023,800 3,728,000 933 3,214,000 ● Reach 31% of country’s 899.8 55% 899.8 Energy and Energy Efficiency total generation to be from Project (P112578 | FY09, FY12): renewable energy. enhance renewable energy Project completed and access (small hydroelectric and actual results met expected Renewable Energy and Energy Efficiency geothermal) and energy efficiency targets. in industries (iron and steel, cement, ceramics, chemicals and textiles). 28 Turkey - Renewable Energy M 20 na na na 690,000 ● 1,734,000 MWh per year 242.4 63% 61.3 Integration (P144534 | FY14): of wind energy handled assist in meeting increased power by the substations funded demand by strengthening the under project. transmission system and facilitating large-scale renewable energy generation. 29 Turkey - SME Energy Efficiency M 20 61,400 na na 30,900 Cumulative over 5 years: 201.0 67% 95.1 (P122178 | FY13): improve ● 154,500 tons of CO2 eq. energy efficiency in small and emissions reduced annually medium enterprises in energy- for all SME loans. intensive industries by scaling- ● 300,000 MWh in electricity up commercial bank lending for savings by the end of energy efficiency investments. project implementation. 16 Target Results /b Annual GHG A. Project Name Annual Annual Renewable Emissions (Number | Year/s Loans Energy Energy Capacity /e # Avoided Other results A/M /a Approved) Savings /c Produced Added Tons of US$ mil /f US$ mil /d Allocated and Description MWh MWh MW Committed IBRD share Project Life CO2 Eq. 30 Ukraine - District Heating Energy M 20 524,000 na na 261,800 ● 721,400 consumers 222.1 70% 11.5 Efficiency (P132741 | FY14): served by the participating improve energy efficiency and companies. quality of service of District Heating companies. 31 Ukraine - Energy Efficiency M 15 7,721,157 na na 1,000,000 ● Create jobs directly and 200.0 100% 200.0 (P096586 | FY11): improve indirectly through increased ELIGIBLE PROJECTS BY SECTOR energy efficiency in order to meet cost competitiveness as energy intensity reduction targets, a result of lower energy decrease dependence on imported intensity. gas, and decrease the cost of Project completed and energy supply. actual results met expected targets. 32 Uzbekistan - Advanced Electricity M na na na na ~ ● 1.2 million advanced 76.3 31% 0.6 Metering (P122773 | FY12): meters installed. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 improve energy efficiency by ● Improve billing and measuring energy consumption collection rates by 8% and and waste through advanced 10%, respectively metering and billing systems. 2,342 MW 6188 3,850.0 Cumulative Loan Repayments (273.6) Total Allocated and Outstanding for Renewable Energy and Energy Efficiency 3,779.0 Notes: Renewable Energy and Energy Efficiency na – Indicator is not applicable for this project. ~ – Indicator is not measured/reported for this project. Amounts may not add up due to rounding. ______________________________ a Column indicates whether the project aims to mitigate climate change (“M”), help client countries adapt to the effects of climate change (“A”), or both. b Target results are expected impacts based on estimates developed at the time of project approval and materializing at the end of the project implementation period (5 years in most cases). The indicators shown are normally a subset of the development impacts contained in project documentation available in the World Bank project website (http://www.worldbank.org/projects). Results reported are based on the total project cost, with the percent shown next to the loan amount corresponding to the proportion of the total project cost that is financed by World Bank loans. Actual impacts may be different from these estimates and do not represent the actual results in a specific year. Quantitative estimates are intended to be indicative of the scale of impacts and qualitative results aim to inform about the nature of changes that will be achieved as a result of projects included in the Green Bond program once they are completed and at full capacity. c Annual energy savings include reduced energy use for both power and heat, where applicable. d The committed amount is the Green Bond eligible portion of the World Bank loan net of cancellations reported in equivalent US$ millions. Loans denominated in other currencies are converted to US$ equivalents using the spot exchange rate on the report date (June 30, 2017). e The percentage shows the percentage of the total project cost that is financed by World Bank loans. When a project is co-financed, this share could be used to apportion total results to the World Bank. f The allocated amount is the amount of Green Bond proceeds allocated to support the financing of disbursements to the project reported in equivalent US$ millions. Loans denominated in other currencies are converted to US$ equivalents using the spot exchange rate on the report date (June 30, 2017). 17 ELIGIBLE PROJECTS BY SECTOR B. Transport Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 33 Brazil - Greening Rio de Janeiro M ● 70 new trains and upgraded 600.0 73% 359.2 Urban Rail Transit – Additional infrastructure Financing (P111996 | FY12): ● Shorter travel and waiting times. provide a more efficient and ● Bicycle parking facilities in select cleaner suburban rail system. stations. ● 70,211 additional passengers served per day. ● 34,000 tons of CO2 eq. reduced annually by project end. 34 Brazil - Sao Paulo State Both ● 50% reduction of road fatalities in the 300.0 70% 200.0 Sustainable Transport (P127723 100 most critical spots. | FY13): improve transport ● Increase waterway transportation. efficiency and safety, increase ● Expanded automatic station network share of waterway transport, to monitor climate risk. and improve resilience to ● Increased number of municipalities climate change and natural with disaster risk mapping. disasters. 35 China - Changzhi Urban M ● 5% reduction in fuel consumed per 100.0 50% 44.8 Transport (P124978 | FY12): passenger-km on project corridors. improve transport mobility and ● Reduced number of traffic accidents. accessibility while reducing ● Reduced travel times during peak- emissions. hours. 36 China - HaJia Railway (P117341 M ● 3 million additional passengers per 300.0 5% 54.3 | FY14): provide additional year. railway capacity and reduce ● Reduced passenger travel time. transport time for passengers ● 15 million people benefit including and freight. rural poor. ● Reduced pollution from shift to electric railways from road and air transport. 37 China - Heilongjiang Cold M ● 38.8 million more bus rides annually 154.0 46% 23.5 Weather Smart Public due to increased efficiency of bus Transportation System service. (P133114 | FY14): upgrade the ● 20-30% reduction in fuel use. quality, safety and efficiency of ● 22-25 km of improved transport public transport service. corridors developed. 38 China - Hubei Xiangyang M ● 460,000 beneficiaries of reduced 100.0 47% 54.2 Urban Transport (P119071 travel times and greater access to the | FY12): improve mobility, city center. safety, and efficiency in urban ● 40 new and higher quality buses in transportation. operation ● 30% reduction in fatalities and severe accidents. 39 China - Jiaozuo Green M ● 490,000 beneficiaries. 100.0 50% 20.2 Transport and Safety ● Reduced traffic fatalities. Improvement (P132277 | FY14): ● 17 km in green corridors exclusively improve transport safety and dedicated to pedestrians and cyclists. efficiency along the selected ● 241,500 non-motorized trips per year transport corridors and promote in the green corridor. non-motorized trips within the ● 32,400 additional bus passengers pilot green corridor. per year. 40 China - Nanchang Urban Rail M ● 506,000 beneficiaries. 250.0 10% 96.9 (P132154 | FY13): provide ● Reduced travel time on public an effective urban mass rapid transport by 25 minutes or more. transit system for a rapidly ● Increase ridership by 200,000 people expanding city to reduce per year. pollution, traffic congestion, and ● 100% of stations to become wheel- commuting times. chair and sight impaired accessible. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 18 ELIGIBLE PROJECTS BY SECTOR B. Transport Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 41 China - Qinghai Xining Urban M ● 20% decrease in travel time. 30.3 48% 5.1 Transport Project (P127867 | ● 264,000 additional passengers daily. FY14): provide more efficient, ● Improved accessibility to 189,400 safer and cleaner transportation. jobs. ● Reduced vehicle pollution. 42 China - Tianjin Urban Transport M ● 2.8 million trips benefit from 100.0 45% 11.1 Improvement Project (P148129 improvements each day. | FY16): leverage the existing ● 85,000 new metro users. metro system and promote ● 50 km of roads rehabilitated, 111 walking and biking in the urban metro stations improved and 5 new bus core to make transport greener terminals completed. and safer. ● 6,500 tons of CO2 emissions reduced annually. 43 China - Urumqi Urban Transport M ● 645,000 people benefit from direct 140.0 26% 25.5 Project II (P148527 | FY16): access to BRT corridors and greener improve mobility in selected more efficient transportation. transport corridors and reduce ● 51.7 km of BRT routes operated. pollution from cars with a bus ● 45% of commuters using smart rapid transit (BRT) system. cards. 44 China - Wuhan Second Urban M ● 459,000 tons of CO2 eq. emissions 100.0 16% 83.7 Transport (P112838 | FY10): reduced annually. improve efficiency, coverage ● Establish facilities for pedestrians and safety of public transport and cyclists. systems in an environmentally-, ● Improved air quality. sustainable, integrated and safe ● 4% increase in share of public way. transportation on target corridors. 45 China - Xi'an Sustainable Urban M ● Doubled area of bus terminals. 150.0 36% 150.0 Transport (P092631 | FY08): ● 275% increase in average speed of improve transport accessibility public transportation from 12 to 45 km/ and mobility and enhance air- hr. quality monitoring of the urban ● 52,000 public bicycles with 70 million transport system users ● Air quality monitoring system/facility implemented. ● 31,000 vehicles with emissions tested. Updated for actual results at project completion 46 China - Xinjiang Yining Urban M ● Reduced peak-hour travel times in 100.0 48% 83.8 Transport Improvement two integrated corridors. Project (P126454 | FY12): ● 25% increased bus ridership to reach provide improved access, 263,000 passengers per day and safety, and efficiency in 60,000 additional people with access in public transportation in an selected new development areas. environmentally sustainable ● Reduced traffic accident fatalities. manner. 47 China - Yunnan Honghe M ● Reduced average travel time for 150.0 43% 9.0 Prefecture Diannan Center public transport users. Urban Transport (P101525 ● Double access to transport services | FY14): improve the safety, to reach 742,000 people. accessibility, and efficiency ● Increased ridership to 153,400 trips of transportation in core per day. urban areas by building new ● Reduced the number of transport infrastructure, staff training and related fatalities. education campaigns. 48 Colombia - National Urban M ● Reduced average travel time for low 494.0 36% 350.2 Transit Program (P117947 | income riders. FY10, FY12): reduce carbon ● Reduced accidents and pollution emissions and improve public (including greenhouse gases) transportation efficiency and associated with bus transport services. safety. ● Increased access to the disabled and other commuters with special needs. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 19 ELIGIBLE PROJECTS BY SECTOR B. Transport Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 49 Ecuador - Manta Public M ● 71,000 residents benefit from water 100.0 87% 32.2 Services Improvement Project investments. (P143996 | FY14): improve ● Improved mobility and accessibility transport services and the of street network including pedestrian quality and sustainability of facilities and cycling paths. water and sanitation. 50 Ecuador - Quito Metro Line M By 2018: 205.0 12% 147.0 One (P144489 | FY15): improve ● 369,000 passengers per day. urban mobility and serve the ● 47,000 tons of CO2 emissions growing demand for public reduced per year. transport. ● $14 million in annual fuel savings. ● 40% reduction in average travel time. ● 1,800 jobs created. 51 India - Eastern Dedicated M ● 1,133 kms of new freight-only rail. 910.0 55% 123.0 Freight Corridor - II (P131765 ● Axle-load limit raised from 23 to 25 | FY14): increase the capacity tons increasing speeds. and quality of freight rail service. ● 13.2 million tons of CO2 eq. emissions reduced over a 30 year period. 52 India - Sustainable Urban M ● 128,000 tons of CO2 eq. emissions 105.2 32% 63.3 Transport (P110371 | FY10): reduced annually over 10 years. improve government capacity to manage climate friendly urban transport solutions focusing on public and non-motorized transport. 53 Mexico - Urban Transport M ● 340,000 tons of CO2 eq. emissions 150.0 6% 51.8 Transformation (P107159 reduced annually when city subprojects | FY10): reduce carbon are fully operational. emissions and transform public ● 9.3 integrated mass transit corridors transportation efficiency. of 15km each. 54 Peru – Lima Metro Line 2 ● Serve 360,000 new passengers/day; 300.0 5.1% 40.0 Project (P145610 | FY15): ● 34% reduction in travel time per trip. Construction of a 35 km subway ● Benefits 1.6 million people for line and related infrastructure improved access to jobs. improving transportation in the east-west axis of the Lima- Callao Metropolitan area. 55 Philippines - Cebu Bus Rapid M ● 275,000 more commuters using 116.0 51% 12.3 Transit (BRT) Project (P119343 public transportation. | FY15): improve the quality, ● 115,000 tons of CO2 eq. reduced safety, and environmental annually by 2020, increasing to performance of urban public 192,000 tons of CO2 eq. reduced transportation. annually by 2025. Subtotal for Transport 5,054.4 2,040.9 Cumulative Loan Repayments (26.8) Total Allocated and Outstanding for Transport 2,014.1 Amounts may not add up due to rounding. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 20 ELIGIBLE PROJECTS BY SECTOR C. Water, Wastewater, and Waste Management Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 56 Brazil - Federal Integrated A ● 14 water resources management 63.8 45% 13.6 Water Sector (P112073 | institutions supported by the project. FY12): improve water resource ● Increased water use efficiency and management including proper management of solid waste. assessing how climate change ● Improved quality of water service in impacts water availability, both urban and rural areas. and improve coordination and capacity of key federal institutions in the water sector. 57 Brazil - Integrated Solid Waste M ● 3 dumps closed. 16.7 31% 16.7 & Carbon Finance (P106702 | ● 9,000 tons per day of waste disposed FY11): improve treatment and in environmentally sustainable sanitary final disposal of municipal solid landfills. waste and reduce methane ● 7 municipalities made investments emissions. to improve recycling and composting activities. Updated for actual results at project completion. 58 Brazil - Espirito Santo Integrated Both ● 2.6 million people benefit. 81.1 70% 2.4 Sustainable Water Management ● 70% of State with disaster warning Project (P130682 | FY14): system. improve sustainable water ● 1,590 tons of BOD (Biochemical resources management and Oxygen Demand) removed a year. increase access to sanitation. ● 164,000 people with improved sanitation. ● 2,000 hectares reforested. 59 China - Bengbu Integrated A ● 85.5% flood protection of Bengbu’s 99.9 45% 99.9 Environment Improvement city land area. (P096925 | FY08): improve ● Pollution reduction reached 13% effectiveness and resilience of ● 3 months of water supply reserves. urban water supply, treatment Updated for actual results at project services and flood prevention completion. and control systems through improved infrastructure and watershed management. 60 China - Water Conservation A ● 15% increase in main crop yields. 80.0 50% 74.7 II (P114138 | FY12): improve ● RMB 200 increase in per capita agriculture water management annual agricultural income. and increase agriculture water ● Reverse the trend of declining water productivity. table in groundwater irrigated areas. Updated for actual results at project completion. 61 China - Xining Flood and A ● 4,800,000 tons of untreated 100.0 53% 100.0 Watershed Mgmt (P101829 wastewater flowing into rivers avoided | FY09): improve sustainable annually. utilization of land and water ● 1,100,000 tons of soil loss avoided resources by improved annually. flood control management, ● 434,440 people benefit from reduced wastewater collection and vulnerability to flood events. treatment, and watershed Updated for actual results at project management. completion. 62 Dominican Republic - A ● 37,218 hectares of damaged 99.9 100% 99.9 Emergency Recovery and irrigation rebuilt. Disaster Risk Management ● 152 km transmission lines restored to (P109932 | FY08, FY12): “disaster-resistant” standards. provide infrastructure ● Santiago waste water operation recovery and strengthen risk restored. management capacity in tropical ● 252 MW of damaged hydropower storm affected areas. facilities restored and dam safety standards improved. Updated for actual results at project completion. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 21 ELIGIBLE PROJECTS BY SECTOR C. Water, Wastewater, and Waste Management Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 63 India - Andhra Pradesh Water A ● Improved irrigation service delivery 450.6 46% 321.5 Sector Improvement (P100954 on a sustainable basis. | FY10): improve irrigation ● Increased cropping intensity, crop services on a sustainable basis diversity, and productivity of crops, and strengthen the State’s livestock, and fish. institutional capacity for multi- sectoral development and of its water resources. 64 Indonesia - Water Resources A ● Increased crop productivity by 150.0 74% 94.7 and Irrigation Management providing more efficient and reliable Program 2 (P114348 | FY11): irrigation water. improve infrastructure and ● 500,000 farmer households from government capacity for river provinces involving 12 river basins basin water resource and benefited. irrigation management. 65 Lebanon - Lake Qaraoun A ● 50% reduction in pollutant load 55.0 92% 2.2 Pollution Prevention (P147854 (nitrogen) to waterways. | FY16): reduce the quantity of ● 30,000 (cubic meters) of municipal untreated municipal sewage wastewater collected and treated discharged into the Litani River ● 344,000 of direct beneficiaries. and address pollution around Qaraoun Lake. 66 Morocco - Solid Waste Sector M ● 24,436 hectares rehabilitated with 111.4 100% 111.4 DPL (P104937 | FY09): irrigation and drainage systems. enhance the governance of the ● 21,128 households supplied with new solid waste sector. drinking water. Updated for actual results at project completion. 67 Tunisia - Second Water A ● 24,436 hectares rehabilitated with 16.2 19% 16.2 Sector Investment (P095847 irrigation and drainage systems. | FY09): promote better water ● 21,128 households supplied with new management through efficiency drinking water. improvements in irrigation Updated for actual results at project and increased capacity for completion. watershed management. 68 Vietnam – Can Tho Urban A ● 2,675 hectares in urban core land 125.0 39% 5.3 Development and Resilience area protected from floods. (P152851 | FY16): reduce flood ● 25-30% reduction in travel time risk in the urban core area, between urban core and Cai Rang improve its connectivity to center. new urban growth areas, and ● 420,000 people as direct improve the city’s capacity to beneficiaries. manage disaster risk. Subtotal for Water, Wastewater, and Waste Management 1,449.6 958.6 Cumulative Loan Repayments (61.3) Total Allocated and Outstanding for Water, Wastewater, and Waste Management 897.4 Amounts may not add up due to rounding. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 22 ELIGIBLE PROJECTS BY SECTOR D. Agriculture, Land Use, Forests, and Ecological Resources Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 69 Armenia - Second A ● At least 10,000 pasture users benefit 23.0 54% 5.0 Community Agriculture through their membership in Pasture Resource Management and Users’ Cooperatives. Competitiveness Project ● 110,000 hectares of land managed (P133705 | FY14): improve with sustainable practices. pasture-based livestock management in targeted alpine grasslands areas. 70 China - Guangdong Agricultural M ● 45,000 tons of annual pollution load 100.0 48% 26.7 Pollution Control (P127775 to waterways reduced. | FY14): promote waste ● 5,000 tons of annual nutrient load to management in livestock and waterways reduced.1 crop production (including ● 28,000 hectares with improved soil methane capture and use) and nutrient, fertilizer and pesticide use.2 improve soil nutrient, fertilizer, and pesticide use. 71 China - Hebei Rural Renewable M By 2020: 71.5 47% 7.6 Energy Development Project ● 42,000,000 m3 of biogas used (P132873 | FY15): demonstrate annually. sustainable biogas production ● 58,780 tons of CO2 emissions and utilization to reduce reduced annually. environmental pollution and ● 96,100 rural resident households with supply clean energy. access to biogas supply. ● Additional biogas used as fuel for public transportation. 72 China - Hunan Forest Both ● 58,900 hectares of ecological 80.0 69% 76.0 Restoration and Development forest plantation areas reforested and (P125021 | FY13): increase rehabilitated. resilience of forests. ● 26,130 households benefited. 73 China - Integrated Forestry Both ● 132,600 hectares of forests restored 99.1 49.5% 99.1 Development (P105872 | or re/afforested. FY11): increase forest cover to ● 20% increase in vegetative cover create wind breaks, farmland plus improved species diversity in shelter belts, and conservation degraded forests rehabilitated. schemes, and to train farmers ● 324,000 farmers trained in forest in forest and environmental management. management. Updated for actual results at project completion. 74 China - Integrated Modern A ● Reduced water use per ton of rice, 200.0 64% 90.3 Agriculture Development wheat and maize produced in target (P125496 | FY14): develop regions. sustainable and climate resilient ● 94,000 hectares of farmland served agricultural production systems with improved irrigation and drainage by investing in improved services. irrigation and drainage systems ● 38,500 hectares of leveled land and and practices that address improved soil conditions. climate risk. 75 China - Ningxia Desertification Both ● 30,000 hectares restored or re/ 80.0 70% 27.2 Control and Ecological afforested. Protection (P121289 | FY12): control desertification and land degradation by stabilizing moving sands, re-vegetating degraded steppe lands and planting shelter belts. 1 Initial target result of 500 tons corrected to reflect 5000 tons by the project’s end. 2 Target result updated to reflect loan reallocation to support new counties totaling 9200 additional hectares. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 23 ELIGIBLE PROJECTS BY SECTOR D. Agriculture, Land Use, Forests, and Ecological Resources Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 76 Indonesia - Coral Reef A ● Reduce destructive fishing in selected 3.8 89% 1.3 Rehabilitation and Management areas. Program- Coral Triangle ● 1,140 direct beneficiaries in fishing Initiative (P127813 | FY14): communities. protect and sustainably manage ● 1.4 million hectares of marine areas unique coral ecosystems in brought under biodiversity protection. selected districts and provinces. 77 Mexico - Forests and Climate Both ● 10% increase in areas under 350.0 45% 270.3 Change (P123760 | FY12): improved forest management support rural communities' (equivalent to 1,630,000 additional sustainable management of hectares). forests, and generate additional ● Support 2 pilot areas to reduce income from forest products carbon emissions from deforestation and services and to reduce and forest degradation. emissions from deforestation ● 4,000 forest communities benefited. and forest degradation. (3,202 by end of 2016 – value is yearly results) 78 Morocco - Large Scale Irrigation A ● 9,274 farmers benefit. 150.0 80% 5.9 Modernization (P150930 | ● 100% of area with access to water on FY16): expand agriculture demand in peak period. through the adoption of irrigation ● 20,700 hectares with improved techniques that make more irrigation technologies. efficient use of water resources, while building better ties between farmers and markets. 79 Peru - Peru National Agriculture A ● 20,000 small and medium farmers 13.0 31% 2.6 Innovation Program (P131013 adopting new technologies. | FY14): strengthen the ● 61 new technologies demonstrated national agricultural innovation on farms. system and integrate climate change criteria into project such as adaptive research, seed improvements and skills development, among others. 80 Philippines - Rural Development A ● Increase incomes of about 1.9 million 501.3 75% 148.2 (P132317 | FY15): improve the farmers and fishermen and the value of resilience of small-scale farmers their products. and fishermen to climate change by helping them recover and increase income-generating activities and strengthening the conservation of coastal and marine resources. 81 Russian Federation - Forest Fire Both ● Improve forest fire detection and 40.0 33% 11.7 Response (P123923 | FY13): suppression systems. improve forest fire prevention ● Improve capabilities of fire brigades. and management and to ● Avoid 75,500,000 tons of CO2 eq. enhance sustainable forest emissions over 25 years. management. ● Raise public awareness and education standards in forestry issues in general. 82 Tunisia - Fourth Northwest A ● Reduce erosion and forest 33.5 73% 29.3 Mountainous and Forested degradation. Areas Development (P119140 ● Build climate change awareness | FY11): better protect and and disseminate climate-appropriate manage natural resources practices to reinforce livelihood and through conservation of soil and agro-system resilience. water resulting from improved ● 318,000 people benefit agriculture and pasture practices and to improve access to potable water for rural communities. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 24 ELIGIBLE PROJECTS BY SECTOR D. Agriculture, Land Use, Forests, and Ecological Resources Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 83 Uruguay - Sustainable Both ● 2,700 (actual has been higher at 49.0 89% 35.5 Management of Natural 3,029) hectares of agricultural land with Resources and Climate Change reduced methane emissions. (P124181 | FY12): improve farm ● Improve water use in irrigation and environmental management livestock production systems. and reduce greenhouse ● Improve pasture management and gas emissions by promoting other productivity measures. improved agriculture and livestock management. Subtotal for Agriculture, Land Use, Forests, and Ecological Resources 1,794.2 836.5 Cumulative Loan Repayments (1.3) Total Allocated and Outstanding for Agriculture, Land Use, Forests, and Ecological Resources 835.2 Amounts may not add up due to rounding. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 25 ELIGIBLE PROJECTS BY SECTOR E. Resilient Infrastructure, Built Environment, and Other Project Name (Number | Year/s Loans Committed IBRD Allocated # A/M Target Results Approved) US$ mil share US$ mil and Description 84 Belize - Climate Resilient A ● 30 km of roads rehabilitated and 30.0 100% 1.5 Infrastructure (P127338 | FY15): 12 bridges and culverts improved. enhance the resilience of road ● 50% reduction in road interruption infrastructure against flood due to flooding. risks and the impacts of climate ● 170,000 people living near the road change. networks directly benefit. 85 China - Fujian Fishing Ports A ● 11,000 fishermen and their families 60.0 58% 4.2 Project (P129791 | FY14): (total 64,000 people) benefit. reduce the vulnerability of fishing ● 3,000 fishing vessels protected in communities to extreme weather ports. events. ● Improved effectiveness of early warning and emergency systems. 86 China - Huai River Basin Flood A ● 9,500 km2 of flood protection (in 200.0 33% 200.0 Management and Drainage rural and urban areas). Improvement (P098078 | ● 6,600,000 people benefited. FY11): increase resilience of Updated for actual results at project communities to the impacts of completion. climate change, particularly flooding. 87 Jamaica – Disaster Vulnerability A ● Protection of infrastructure (e.g., 30.0 100% 0.2 Reduction (P146965 | FY16): bridges, storm drains, roads) from enhance the country’s resilience floods directly benefitting about to disaster and climate risk. 247,000 people. ● Increase the government’s capacity to better prepare for and respond to natural disasters. 88 Macedonia & Serbia - South A ● Increased catastrophe insurance 10.0 100% 10.0 East Europe and Caucasus coverage from 2% to 15% for Catastrophe Risk Insurance homeowners, farmers, enterprises, Facility (P110910 | FY11): and government entities holding increase access to catastrophe catastrophe insurance policies. risk insurance through facilitating Updated for actual results at project the growth of insurance markets. completion. 89 Mexico - Climate Change Both Climate-informed public policies, 501.3 100% 501.3 Development Policy Loan including: (P110849 | FY08): mainstream ● 642,000 hectares reforested. climate change considerations ● 6,000,000 tons of CO2 eq. into public policy. emissions reduced annually due to reforestation. ● Domestic carbon pricing strategy developed. ● City and state climate action plans developed. Updated for actual results at project completion. 90 Russian Federation - A ● >70% accuracy of forecasts for 60.0 43% 16.1 Hydrometeorological Services the main administrative centers of Modernization (P127676 | Russia. FY14): enhance capacity to ● > 85-90% accuracy of seasonal deliver reliable and timely river flow forecasts in Volga river weather, hydrological and climate basin reservoirs. information. ● Increased number of sectoral data users data. 91 Timor-Leste - Road Climate A ● Improved drainage conditions along 15.0 16% 0.4 Resilience Project (P125032 | 110 km road corridor. FY14): rehabilitate and improve ● 30% reduction in major road the climate resilience of a road damage events. corridor. Subtotal for Resilient Infrastructure, Built Environment, and Other 906.3 733.3 Cumulative Loan Repayments (0.16) Total Allocated and Outstanding for Resilient Infrastructure, Built Environment, and Other 733.1 Amounts may not add up due to rounding. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 26 THE WORLD BANK GREEN BOND IMPACT REPORT 2017 27 ANNEX ANNEX ANNEX 1 IMPACT REPORTING APPROACH ANNEX 2 WORLD BANK PROJECT CYCLE ANNEX 3 LIST OF ABBREVIATIONS THE WORLD BANK GREEN BOND IMPACT REPORT 2017 28 ANNEX THE WORLD BANK GREEN BOND IMPACT REPORT 2017 29 ANNEX 1: IMPACT REPORTING APPROACH IMPACT REPORTING APPROACH When the World Bank issued its first Green Bond Impact Report in 2015, the initial reporting template and set of indicators presented were the product of engagement with investors, which benefitted from the efforts of multilateral development banks to harmonize metrics for GHG accounting and reporting on climate finance activities. The World Bank led a collaborative initiative with other issuers to create the first harmonized template with core indicators for the Renewable Energy and Energy Efficiency sectors that was published in March 2015. It has since evolved and been adopted by many other issuers. This consultative process of developing harmonized impact reporting templates has advanced under the auspices of the Green Bond Principles and its working groups and continues to evolve to cover other indicators and relevant sectors. The indicators for this report have been selected among other expected development results and are intended to illustrate the type and scale of expected results in a variety of sectors and country contexts. To better reflect individual country challenges, demands, and resources, the report focuses on presenting a diverse set of countries, projects and sectors rather than cumulative impacts. Because of the limited comparability between projects, sectors and countries (see “Interpreting Reported Results” in “World Bank Green Bond Process” section and “No aggregation of GHG estimates” on the adjacent page), impact results are not aggregated, with the exception of “renewable energy capacity added”, which is deemed to be broadly comparable. World Bank Green Bond Eligible Projects: Five Sectors This impact report is organized according to the five sectors represented in the World Bank’s Green Bond eligible projects portfolio. Where projects cover multiple sectors, the project is included in the main sector only, but target results will include all components of the project. 1 Many World Bank projects in this category include both a renewable energy and energy efficiency component, so combining the sectors avoids redundancy. The Renewable reporting framework adopted identifies four core indicators for energy efficiency and Energy and renewable energy projects; where information covering the proposed core indicators Energy Efficiency is publicly available, it is included.a/ However, for some projects quantitative estimates for these indicators are either not available or not applicable. A few other indicators that are considered relevant for Green Bond investors are also provided. 2 3 Water, Projects categorized in the remaining sectors are more Wastewater, Transport and Waste heterogeneous. The report provides project specific indictors Management based on available information on the scale of results.b/ 4 5 Notes: Agriculture, Resilient Land Use, Infrastructure, a/ This impact report has been prepared following an approached developed in collaboration with 11 other International Finance Institutions (IFIs) to encourage Forests, and Built greater harmonization in impact reporting. Core indicators for other sectors were not Ecological Environment, recommended as part of initial efforts to work towards a harmonized approach for impact reporting. See the 2016 Joint Report on Multilateral Development Banks’ Climate Resources and Other Finance at http://treasury.worldbank.org/cmd/pdf/InformationonImpactReporting.pdf. b/ Additional core indicators included in the reporting framework for other sectors such as Water and Wastewater Management, will be adopted in future impact reports. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 30 ANNEX 1: IMPACT REPORTING APPROACH Key Assumptions and Approach The following key assumptions and approach were used in preparing this report. • Ex-ante projections: Quantitative estimates for target results represent ex-ante projections developed during project design mostly for direct project impacts once projects are at normal operating capacity. The target results include expected results for projects still in the preparation, construction and/or implementation phase. The impact report thus serves as an illustration of expected results made possible through Green Bond eligible projects, but it is not intended to and does not provide actual results achieved in a specific year or reporting period. Target results have been updated with actual results at project completion when the final project commitment is materially different to the original authorized amount. Where the amounts are based on actual results this is noted in the preceding tables. • Length of time projects are on report: Impact reporting will be provided for projects for so long as they are part of the World Bank Green Bond program. This means that projects are added to the impact report once Green Bond proceeds have been allocated to support the financing of disbursements to the project, and removed once the client has repaid the respective loan. Projects may also be removed from future reports if the World Bank decides to remove a project from its Green Bond program.1 If a project is removed from the Green Bond program, any Green Bond proceeds previously allocated to support the financing of disbursements to that project will be credited back to the Special Account for Green Bond proceeds and allocated to support the financing of disbursements to other Green Bond eligible projects as part of the routine allocation process. • Reporting for co-financed projects: The World Bank often co-finances projects with the client country and/or other lenders. The results for the individual project are based on the total project including all financiers. The World Bank’s share of the total financing is included for each project. • Partial project eligibility: In cases where a project is only partially Green Bond eligible, the committed amount reported reflects only that portion that is Green Bond eligible. Allocations to support disbursements to such projects are made on a pro rata basis. • No aggregation of GHG estimates: When reported in the “Project Appraisal”, “Implementation Status and Results”, and/or “Implementation Completion and Results” reports, the GHG emission reductions for projects are reported in tons of CO2 equivalent. The World Bank is undertaking an effort in conjunction with other International Finance Institutions to harmonize the approaches for GHG accounting.2 At the same time, the World Bank is working to develop internally consistent GHG accounting methodologies for investment projects across relevant sectors. Given these on-going developments in GHG accounting, the basis for estimating CO2 equivalent emission reductions may vary between World Bank projects. Therefore, the World Bank does not recommend aggregating the results of different projects in its portfolio. • All reported results are from publicly available sources: Reporting is based on publicly available impacts for the projects disclosed in “Project Appraisal”, “Implementation Status and Results”, and “Implementation Completion and Results” reports. To facilitate comparability of the reported results, the reporting units have been converted where such conversion is based on a standard conversion factor. 1 As part of the World Bank’s due diligence in monitoring projects included in its Green Bond program, it may elect to remove a project. Possible reasons for removing a project from a Green Bond program include, but are not limited to, cancellation of the project or significant implementation delays. 2 For more information on the harmonization framework, see http://treasury.worldbank.org/cmd/pdf/InformationonImpactReporting.pdf THE WORLD BANK GREEN BOND IMPACT REPORT 2017 31 ANNEX 2: WORLD BANK PROJECT CYCLE WORLD BANK PROJECT CYCLE The World Bank project cycle (see diagram 1) consists of six stages: Identification, Preparation, Appraisal, Negotiation/ Approval, Implementation/Support, and Completion/Evaluation (see below for the detailed descriptions). Projects that are reviewed for eligibility under the World Bank Green Bond program are selected from among all projects approved by the World Bank Board of Directors (see diagram 2). They therefore represent a subset of the World Bank’s lending portfolio. As of June 30, 2017, there were 91 projects in the Green Bond program. Project Identification The World Bank works with a borrowing country’s government on a Country Partnership Framework that identifies the country’s priorities for reducing poverty and improving living standards. Within those priorities, the World Bank and the government agree on a project concept, which is outlined in a Project Concept Note. The Project Information Document outlines the project’s scope, and the Integrated Safeguards Data Sheet identifies potential environmental and social issues. Project Preparation The borrower leads project preparation, with the World Bank generally taking an advisory role. If necessary, the borrower prepares an Environmental Assessment Report that describes the project’s likely environmental impact and steps to mitigate possible harm. If there are major issues, the borrower prepares an Environmental Action Plan. An analysis of a project’s potentially adverse effects on indigenous peoples may also be undertaken, and any issues are addressed in the Indigenous Peoples Plan. Project Appraisal The government and the World Bank review the identification and preparation documents and confirm the expected project outcomes, intended beneficiaries and evaluation tools, as well as the project’s readiness for implementation. The Project Information Document is updated and released when the project is approved for funding. Project Approval The project team prepares the Project Appraisal Document (for investment project financing) or the Program Document (for development policy financing), along with other financial and legal documents, for submission to the Bank’s Board of Executive Directors for approval. When approval is obtained and the legal documents are signed, the implementation phase begins. Project Implementation The borrower implements the project with technical assistance and support from the Bank as needed. Twice a year, the government and the Bank prepare a review of project progress, the Implementation Status and Results Report. Project Completion When a project is completed and closed, a World Bank operations team prepares an Implementation Completion and Results Report. The final outcomes are compared to expected results. The team also assesses how well the project complied with the Bank’s operations policies, and accounts for the use of Bank resources. Evaluation The Bank’s Independent Evaluation Group (IEG) assesses the performance of roughly one project out of four projects a year, measuring outcomes against the original objectives, sustainability of results and institutional development impact. IEG may produce Impact Evaluation Reports to assess the economic worth of projects and the long-term effects on people and the environment. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 32 ANNEX 2: WORLD BANK PROJECT CYCLE Diagram 1: World Bank Project Cycle Diagram 2: World Bank Green Bond Selection Process THE WORLD BANK GREEN BOND IMPACT REPORT 2017 33 ANNEX 3: LIST OF ABBREVIATIONS LIST OF ABBREVIATIONS CO2 Carbon dioxide eq. Equivalent GHG Greenhouse gas GWh Gigawatt hours (equal to 1,000 MWh or 1,000,000 KWh) IBRD World Bank (International Bank for Reconstruction and Development) Km Kilometers Km 2 Square kilometers KWh Kilowatt hours m 3 Cubic meters MW Megawatts MWh Megawatt hours RMB Chinese renminbi SME Small and medium sized enterprises TCE Tons of coal equivalent THE WORLD BANK GREEN BOND IMPACT REPORT 2017 34 DISCLAIMER This document has been prepared by the World Bank (International Bank for Reconstruction and Development, IBRD) for information purposes only, and the World Bank makes no representation, warranty or assurance of any kind, express or implied, as to the accuracy or completeness of any of the information contained herein. It is prepared by staff based on reviews of the underlying project documentation. In the event of a discrepancy between the report and the underlying source (project or bond documentation, or other source) the latter prevails. No Offer or Solicitation Regarding Securities.This document may include information relating to certain World Bank securities. Any such information is provided only for general informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy any World Bank securities. All information relating to securities should be read in conjunction with the appropriate prospectus and any applicable supplement and Final Terms thereto, including the description of the risks with respect to an investment in such securities, which may be substantial and include the loss of principal. The securities mentioned herein may not be eligible for sale in certain jurisdictions or to certain persons. Each recipient of this report is deemed to acknowledge that this is a proprietary document of the World Bank and by receipt hereof agrees not to disclose it, or permit disclosure of it, to third parties without attributing the source or the prior written consent of the World Bank. All content are the property of the World Bank. All photos, graphics and content © World Bank. THE WORLD BANK GREEN BOND IMPACT REPORT 2017 35 Investor Relations Capital Markets Department The World Bank Treasury 1818 H Street NW Washington, DC 20433 USA E debtsecurities@worldbank.org T +1 (202) 477 2880 W treasury.worldbank.org/capitalmarkets