78762 Annual Report 2011 Using Carbon and Climate Finance to Promote Low Carbon Development Climate Change CDM knowledge sharing Institutional Development Carbon Market Development Capacity Building Technical Assistance Project methodologies A B Table of Contents 2 MESSAGES 7 2010-11 At a glance 8 Introduction 10 Carbon Finance-Assist 10 The Program 11 Conceptual And Operational Approach 12 Regional Coverage 21 Work Program Activities 21 Setting The Scene 21 Practitioner Exchange 23 Scanning And Scaling Innovations 23 Structured Learning 26 Collaborative Leadership And Coalition Building/Implementation 27 Overview Of Work Program Activities 2010/11 28 Mid-Term Evaluation 29 Conclusion 31 Future Outlook 32 Annex 33 Annex 1: List Of Cf-A Events For 2010-11 34 Annex 2: Distribution Of Events And Events Participation (Per Region and Work Program) 35 Annex 3: Acronyms 36 CF-Assist Team 1 Messages Bruno Laporte Director, Thematic Knowledge & Learning World Bank Institute Connect globally - enable locally: this is resilient? All of these challenges have to goal of WBI’s capacity building work is the motto of the World Bank Institute be addressed quickly if we do not want to implementation of projects and actions (WBI). Since its re-organization in 2009, risk losing hard-earned gains that have on the ground – CF-Assist has made WBI has made significant progress in been achieved over the last decades in our important advances at all of these levels. operationalizing its new and improved fight against poverty, hunger and disease. Looking ahead, CF-Assist’s solid business business lines: we are working with partners model will enable the program to respond and clients in the areas of practitioner/ The international community hence needs flexibly and quickly to any emerging knowledge exchange, scanning and scaling mechanisms that provide just-in-time scenario in the international climate of innovations, structured learning, and knowledge sharing and capacity building. change community - by elaborating, collaborative leadership & coalition building Positioned in the WBI, the Carbon Finance- packaging and delivering off-the-shelf in seven thematic fields that represent Assist (CF-Assist) team develops knowledge and tailor-made knowledge products and highly relevant topics for sustainable products, and delivers them around the approaches, and strengthening leadership development and capacity building. globe in real time – I am glad to announce and coalitions for change. that we are further refining our approach One of these topics is climate change – a by establishing the e-Institute which will topic that poses difficult challenges for be launched in July 2011. Through this the world: How should we deal with e-Institute, participants will not only changes to the weather that already have access to state-of-the-art research affect millions of people across the and knowledge, but also plug into a globe - higher temperatures, changes in supporting system that will address their rain patterns, rising sea levels, and more questions, and connect them with each frequent weather-related disasters? How other. Besides our structured learning do we secure food and water supplies for product line, we continue to support an ever-growing population, particularly practitioner exchange face-to-face events in cities? How can we achieve economic as meaningful ways to provide platforms development that is environmentally and networks for stakeholders that are sustainable, low carbon and climate jointly working towards solutions. The 2 Jane Ebinger Program Manager, Environment Department The World Bank COP 16 in Cancun provided new climate action on the ground wherever climate change instruments increasingly asset value of US$2.5 billion. Projects span momentum for the UNFCCC effort to and whenever possible. responds to country-led processes. The 63 countries with 23 different technology negotiate a global agreement on climate demand for support unfolds across the types including groundbreaking work in change, which will hopefully support a Governments and stakeholders within spectrum of regular finance instruments, afforestation/ reforestation (32 projects); comprehensive agreement in the months the private sector and civil society are such as IBRD and IDA, and dedicated transport (10 projects) and household and years to come. The World Bank is already taking action, embracing the climate financing instruments: carbon energy efficiency (12 projects). More than committed to help governments develop climate change agenda, and showing funds, REDD+ instruments, the Climate 20% of our carbon finance portfolio is a global framework for effective climate strong commitment to build climate Investment Funds and innovations such in Africa compared to 2% for all CDM action given the direct link to development resilience and place their economies on as bonds, guarantees and insurance activities. The Bank’s extensive experience and therefore our corporate mandate. low carbon growth trajectories. More than frameworks. As an example, in less than with carbon finance over the past 11 years Previous development gains are already 86 countries have now submitted NAMAs three years the Climate Investment gives us useful insights into its impact and being undermined by climate change to the UNFCCC Secretariat, and within Funds (CIFs) have moved from design to benefits, as well as the scope for reforms in impacts in our partner countries, and the World Bank Group portfolio more investment planning and disbursement. the mechanisms to make them more useful failure to place the world on a climate than 88% of recent Country Assistance The CIFs now play a key role supporting to developing countries resilient path will potentially have Strategies now include climate change as mitigation and adaptation action in 45 irreversible impacts on the potential for one of three priority areas. Our financing countries. The $6.5 billion committed to On the forest agenda we continue to roll sustainable development and growth. commitments to new renewable energy investments are set to leverage another out the Forest Carbon Partnership Facility projects increased to $1.5 billion in 2010, $45 billion in support through a portfolio that is partnering with 37 countries to help We are not yet seeing the level of more than triple the amount committed in that spans Africa (38%), Latin America them become ready for REDD+ investments ambition in emission reductions to hold 2008. Energy efficiency lending increased and the Caribbean (27%), Asia (26%), and and pilot performance based payments for the increase in global temperature below 48 percent during the same period. Our Europe and Central Asia (9%). REDD activities. The Carbon Partnership 2˚ Celsius, and are in fact only reaching low-carbon energy lending is now about Facility continues to pilot programmatic 60% of what is required. We are currently 42% of our energy portfolio. We also continue our full commitment approaches in a number of countries on course towards a much warmer future to the carbon market, with 11 Carbon and pioneer new applications of existing with temperature increases of possibly As governments formulate and Funds and Facilities under management, mechanisms, particularly in cities. Through 3- 4˚ Celsius. We must reach an ambitious implement climate action plans, the including a portfolio of 174 active projects these programs, we are developing a body global agreement and support real World Bank Group’s broad portfolio of or programs with an estimated carbon of experience on scaling up carbon finance 3 Messages Neeraj Prasad Manager, Climate Change Practice World Bank Institute that will contribute lessons for the design support urgent and transformational action At the World Bank Institute’s Climate that there is need for enhanced capacity of new market mechanisms. with substantial win-win for development. Change Practice, we have moved in the building in any scenario. We therefore past year to position ourselves strategically need to plan for delivering win-win In December 2010, we launched the It is also at this stage that CF-Assist plays to respond to our diverse client groups. capacity support that will work in a range Partnership for Market Readiness (PRM) a crucially important role to help raising At Cancún, there was new hope for the of scenarios. with high-level representatives of a dozen awareness and build the right capacity negotiations – beacons were reignited – countries (developed and developing). in countries all over the world. The but these are challenging times, and the We have structured the Practice around The PMR will support countries interested partnership through CF-Assist is not only shorter-term challenges demand more three clusters – (i) low emissions in developing capacity and piloting a cornerstone in our collective intellectual attention; so it is difficult to accurately development and energy access; (ii) domestically appropriate scaled-up journey towards enabling action on the assess when climate agreements will agriculture, soil and forestry; (iii) carbon market instruments. The Partnership will ground, but indeed an indispensable enable us to move on policy and support markets and climate financing – and offer a platform for technical discussions platform for ensuring that we have a instruments. To an extent, the parameters will align these clusters to fit with the and learning-by-doing to inform the portfolio of instruments across the carbon for success have been set – it is evident perspectives and business needs of design of new instruments being finance spectrum that responds to real that successful climate change mitigation our clients, and external and internal developed under the UNFCCC. needs and opportunities among our friends. action will require action by all, and partners. A diverse menu of business important agreements have been reached lines for capacity building allows us to Our current effort to move from climate that allow us to conceptualize how these strategically address the emerging demand change objectives and policies towards actions will be supported. But there is and needs of both clients and partners real action is a collective intellectual still much that remains to be defined, from economies in transition and from journey through which we must urgently and the evolving outcomes of the climate developing countries. Our Carbon Finance- develop, pilot and implement actions that negotiations will likely modify and re- Assist (CF-Assist) program plays a key role allow governments to be clear on the define the needs and expectations of in our efforts. Following the endorsement diagnostics of domestic and local needs investors and recipients alike. While the of the program’s strategic directions for and opportunities; build the right enabling agreements on climate financing , the 2010-13, we are able to focus on low environment through smart policies and future of carbon markets, and the role emissions development, cities and climate incentive structures, and; enable effective for new sectors and instruments may change, and carbon market instruments and efficient investment streams to take some time to evolve, few will argue that both enhance and go beyond the 4 reach of the current regime of market • The team co-organized the Carbon • In collaboration with external • CF-Assist has also provided technical regulators. Key to our efforts has been the Expo in Cologne, Germany, and partners, we have set up the assistance and project support in the constant attention to integrating our work regional carbon fora in India Mitigation Action Implementation field – examples include work with with the sustainable development and and Latin America – important Network (MAIN) which deals with Dar es Salaam, Jakarta, Quezon City poverty alleviation vision and agenda of knowledge sharing and practitioner strategies related to Low Emissions and São Paulo as part of the Carbon the World Bank Group. The team has over exchange events for a diverse mix Developments (LEDs) and Nationally Finance Capacity Building (CFCB) the past 12 months achieved considerable of stakeholders. As this Annual Appropriate Mitigation Actions program; climate-smart agriculture success, and taken important steps Report goes into production, the (NAMAs); it brings together national project in Kenya; and, PoA’s in forward. preparations for the 2011 Africa expert teams, comprising policy Tanzania and Amman, Jordan. Carbon Forum – co-organized by the makers, UNFCCC negotiators and • CF-Assist has started to deliver its Nairobi Framework partners – are development practitioners from As we go into a new year of reporting, we e-learning courses, and streamlined running at high revs: this year, the across sectors. The first MAIN would like to take the opportunity and the related production process: motto is “Marrakech Plus 10� (as the workshop was delivered in the Bank’s thank our donors – Spain, Switzerland, overall, nine e-courses – covering climate change community is after LAC (Latin America and Caribbean) Australia and Denmark – for their CDM/JI; CDM PoA; low carbon ten years returning to Marrakech region with several countries continuing trust and support which allows development; public procurement (site of COP 7 in 2001)). The Forum participating - Argentina, Colombia, us to adequately address the ever-growing for energy efficiency services; and, will cover a variety of topics - from Costa Rica, Chile, Panama, and Peru demand for capacity building, and to cities and climate change – are either clean energy to carbon markets, from and a network of countries in the deliver our work program based on the already being delivered/piloted, or forestry to agriculture, from financing Caribbean. In addition, national needs of our clients. expected to be available by September to low-emission development - and policy-makers from two countries 2011. In parallel, translations of discuss progress made so far, as well (Brazil and Mexico) provided inputs the first set of courses into French as give suggestions and directions with examples of early NAMAs and and Spanish have also begun – for for the way ahead for Africa, i.e. in renewable energy auctions. Similar eventual dissemination through short-term to Durban, South Africa, networks will be established in Africa regional implementation partners. where the next COP is taking place, and Asia. and beyond. 5 Messages 6 2010-11 At a Glance Carbon Expo 2010/2011 World’s largest annual carbon market platform Regional Carbon Forums Held in Latin America and South Asia Structured Learning Development of e-learning programs on CDM PoA, Cities and Climate Change and Low Carbon Development Launch of MAIN Initiative Network on low emissions in Costa Rica development (LED) and nationally appropriate mitigation actions (NAMAs) with national expert teams from six LAC countries Carbon Finance Capacity Building Work in Dar es Salaam, Jakarta, (CFCB) Program in Emerging Mega Quezon City and São Paulo towards Cities identification and implementation of projects on the ground Other Examples of Technical • Climate-smart agriculture project Assistance/Project Support in Kenya • PoA Rural Energy Agency in Tanzania • PoA in Amman City • NAMA in Jordan 7 1. Introduction C arbon Finance Assist (CF-Assist) is necessary for utilizing carbon finance. a World Bank program designed However, considerable effort is still to help developing countries and needed in some countries and regions, economies in transition participate more especially in Sub-Saharan Africa and effectively in the carbon market and Central Asia, which have not benefited integrate carbon finance with climate much during the first commitment and traditional finance. The World Bank period of the Kyoto Protocol. Institute (WBI) manages this program, which trains and educates the very As the global debate moves towards a people who will be crucial catalysts in new post-2012 regulatory regime, when promoting the deployment of clean the Kyoto Protocol’s first commitment technologies in their countries. period is set to expire, capacity-building needs are evolving as well despite, and In the early days of the carbon market, to some degree because of, uncertainties lack of knowledge and experience concerning the carbon market’s future. in most developing countries and New instruments and concepts, such economies in transition was a key as programmatic and sector-specific problem. It prevented these countries approaches, have emerged or are being from playing an effective role in this discussed, and the need to scale up emerging market and expanding their activities has grown significantly. The reach. As a response, CF-Assist has ultimate goal is to gradually integrate designed and implemented in-country carbon finance into overall climate capacity-building programs, focusing on finance for low carbon development strengthening regulatory institutions, that pushes infrastructures and helping to put procedures in place and economies towards a sustainable future. creating professional expertise through Our conceptual/operational approach training. Much has been achieved in this and strategic work program aim to regard as a result of CF-Assist and similar accommodate this goal. capacity-building programs of other agencies, e.g., Capacity Development Thanks to the generous support by for CDM (CD4CDM) of UNEP. Several Australia, Denmark, France, Spain countries in Asia and Latin America have and Switzerland (please, see pie chart successfully established the conditions with respective donor contribution), 8 CF-Assist has been up and running Donor Contribution Donor Contributions (incl. funds received per March 31, 2011, and pledged) - for more than five years. The initial $19,539,000 (rounded: USD 000) $19,539,000 capacity-building phase—basic training, Funds received as of March 31, 2011: $13,910,000 Funds received per March 31, 2011: $13,910,000 (rounded: USD 000) establishing/strengthening designated national authorities (DNAs), etc.—is now Denmark Spain $425,000 complete. We have embarked on new 2% $8,285,000 42% activities to respond to the emerging challenges and significantly expanded our scope and reach. This report will Switzerland first introduce the current, updated $7,020,000 conceptual and operational approach, 36% France (AFD) and discuss how CF-Assist’s activities $2,315,000 12% fit into the logic of this framework, including in the context of regional France (MEDD) $179,000 delivery. Second, it will update on 1% progress and directions of work program Australia activities. Third, we will offer conclusions $1,315,000 7% and an outlook towards the future. Carbon Finance at the World Bank The carbon market is an important mechanism to mitigate climate change. The World Bank has been a pioneer in developing and promoting this market, having designed the first ever instrument in the form of the Prototype Carbon Fund (PCF). Since then, the Bank has utilized more than US$2 billion—mobilized from governments and companies in OECD countries—over the last decade to purchase emission reductions from clean technology projects in developing countries. These operations have helped to generate several billion dollars in investment across Asia, Latin America and Africa. While the international community has been working hard to negotiate a new global climate treaty, the World Bank launched the Carbon Partnership Facility (CPF) and the Forest Carbon Partnership Facility (FCPF) to pioneer the next generation of carbon market initiatives, which aim to facilitate market continuity, scale up carbon finance and extend the reach of carbon trading. 9 2. Carbon Finance-Assist 2.1 The Program carbon development, which involves: finance programs, supporting the CF-Assist has aimed to help developing building skills to use analytical tools; preparation of low carbon development CF-Assist, a multi-donor trust fund set countries and economies in transition fostering peer-to-peer exchanges of strategies for cities, and helping up as a capacity-building and technical to effectively participate in the carbon knowledge on strategic low emissions establish institutional frameworks for assistance program to complement market and benefit from the flexible development (LED) assessments; implementing low carbon strategies. the World Bank’s carbon funds, was mechanisms under the Kyoto Protocol, identifying sector-specific mitigation proposed in 2004 and formally launched specifically the Clean Development activities; and accessing new sources • Carbon Market Instruments: in mid-2005. While some activities Mechanism (CDM) and Joint of climate financing. Scaling up carbon finance through under CF-Assist were designed in 2005, Implementation (JI). programmatic approaches and implementation did not begin in earnest • Cities and Climate Change: providing information on the evolving until early 2006, when CF-Assist’s CF-Assist works in various developing Expanding the use of carbon finance global regulatory framework and management was transferred from the countries and cities to: in urban areas, including fostering emerging market instruments. Bank’s Environment Department to WBI. • build human and technical capacity; development of programmatic carbon • put in place the necessary institutional In addition to direct contributions and legal infrastructure; from donors, CF-Assist has also been • help create and manage carbon assets Chart 1: Management Structure of CF-Assist administering the PCF plus program— in specific mitigation sectors; and the precursor to CF-Assist—which uses • help reduce costs of participation in interest income from the PCF. the carbon market. Regional Since its inception, CF-Assist has In implementing these activities, Operations expanded and set strategic priorities, CF-Assist has endeavored to promote Development influenced by various developments, the necessary conditions to accelerate Donors Partners including the ongoing negotiations the deployment of clean technologies for a new international climate regime and their contribution to sustainable beyond 2012, and the World Bank’s development in developing countries. HCC Strategic Framework on Development World Bank and Climate Change (SFDCC). It has Responding to the political, economic Institute Clients aligned its activities closely with other and technological challenges ahead, World Bank initiatives, and entered CF-Assist has crafted a “Strategic Work into partnerships with the World Program 2010-2013,� which emphasizes Advisory Bank’s Carbon Finance Unit (CFU), the three major priorities: Group Energy Sector Management Assistance Regional/Country Program (ESMAP), the Urban and • Low Emissions Development: Carbon Finance Partners Transport Department, and various other Integrating carbon finance into Unit knowledge programs. climate finance to promote low 10 Since the work program’s presentation at services. It is supported by two external CF-Assist’s yearly donor meeting during committees, which provide guidance, COP 15 in Copenhagen, in December oversight and monitoring of the work 2009, the team has been implementing program: the Host Country Committee the program in alignment with these (HCC), which represents over 50 three priorities, as well as with WBI’s developing countries and convenes twice business lines, which are described below. a year; and the Donor Committee, which represents all CF-Assist contributors. Internally, an Advisory Group, which 2.2 Conceptual and meets periodically, is comprised of Operational Approach regional carbon finance coordinators, CFU and International Finance CF-Assist works with internal and external Corporation (IFC) representatives, and partners in executing its activities. other subject experts (see “Chart 1: Overall management rests with WBI’s Management Structure of CF-Assist�). Climate Change (WBICC) Practice. Program implementation is undertaken The CF-Assist team has further explored in collaboration with the World Bank’s and initiated work with regional six operational regions: Sub-Saharan implementation partners to strengthen conceptual and operational framework interlink in networks, the fourth focuses Africa (AFR); Middle East and North regional outreach and ownership, that is firmly aligned along the following on enabling local implementation Africa (MENA); Europe and Central Asia for example, in Latin America with: WBI business lines: partners to conduct change processes (ECA); East Asia and the Pacific (EAP); the Instituto Centroamericano de towards LED, as well as implement South Asia (SAR); and Latin America Administración de Empresas (INCAE) 1) Practitioner Exchange projects in the field. and the Caribbean (LAC). While the WBI in Costa Rica in the context of the 2) Scanning and Scaling Innovations anchor team implements some country newly formed Mitigation Action 3) Structured Learning The overarching goals of our work are to: programs directly, it is increasingly Implementation Network (MAIN) 4) Collaborative Leadership and accelerate market development through undertaking regional and global activities, initiative; and with the Mexican Coalition Building learning and knowledge sharing by and providing technical expertise and University Tecnológico de Monterrey, development practitioners, increasingly monitoring for programs implemented by in terms of translating and regionally These business lines, which will be drawing on virtual means; help increase partners. The CFU is providing technical distributing structured learning and elaborated further in Chapter 3 under capacity in developing countries to and operational assistance. knowledge material. work program activities, follow a undertake strategic assessments on low logical sequence that eventually leads carbon development; develop policies CF-Assist collaborates with many With the aforementioned new program to supporting climate action on the and measures for appropriate emission external partners in organizing events, priorities, put in place as part of the ground. While the first three aim to reduction plans; and access innovative designing and conducting training 2010-13 strategic work program, connect stakeholders globally and financing for programmatic climate programs, and providing technical CF-Assist has also adopted a new regionally, provide knowledge and mitigation action. 11 2.3 Regional Coverage fostered the shift in the CF-Assist work program over the last two years, moving CF-Assist’s capacity building programs away from in-country training events are conducted in developing countries towards regional events and activities. in all regions of the world. We work with This shift aims to provide more cost- governments, municipalities, business effective means of delivery, outreach organizations and companies from and strengthening of regional networks client countries on carbon finance and of expert practitioners. This has also LED issues, and help them gain access been made possible through the use to knowledge, discussion platforms and of e-learning programs and sound practical experiences. partnerships. The building of the latter is a time-intensive task, since initial During its five years of implementation, incubation is often needed. However, CF-Assist conducted 78 national-level the first partnership that has been training programs in 52 countries. operationalized—with the INCAE Business These programs created new DNAs, School for the MAIN initiative in Latin strengthened national institutions and America—already demonstrates that helped develop special instruments, such this approach is worth the effort. We are, as sellers’ funds in Argentina and Mexico, hence, looking for similar collaborations in CF-Assist and the CDM Fund in China. other regions to further support scaling up and outreach of our program, and to foster • CF-Assist is designed to be largely a demand-driven program responding to CF-Assist commissioned studies and collaboration and the creation of networks clients’ needs. reports on carbon mitigation potential between countries/climate change in selected sectors and regions, such stakeholders in the various regions. • CF-Assist differentiates between short- and long-term capacity needs. as the energy and cement industries in Implementation is designed to increase the depth of programs through Sub-Saharan Africa, and the forestry While we have primarily moved towards interrelated business lines. sector in Sri Lanka. We also co-organized regional and global initiatives, we do still seven Carbon Expos and 37 regional provide in-country support. However, we • CF-Assist emphasizes the participation of countries and cities in the carbon events, including carbon fora in Africa, are now aiming to do so at a later stage, market through project identification. Identified projects are offered to the Asia, Central Asia, the Middle East and when the scene in terms of practitioner carbon market with the World Bank’s carbon business as the buyer only as a North Africa, and Latin America and the exchange and provision of learning last resort. Caribbean. and knowledge material has been set, and where we can provide hands-on- • CF-Assist pursues strategic partnerships with both public and private global, In addition to these regional events, the support for project identification and regional, national and local organizations to leverage expertise and resources. aforementioned work through regional implementation, and, more generally, for implementation partners has further climate action. 12 Chart 2 below illustrates the regional entitled “Africa Assist� and has played an Among the projects identified is Despite the efforts and obvious distribution of country training programs important role in the Nairobi Framework, Sahanivotry - a 15 MW, small-scale progress made over the last few years, for the years 2005-11. Chart 3 shows the an inter-agency network for the hydropower project from Madagascar, serious gaps still exist in many Sub- distribution of participants in country, coordination of capacity-building efforts which was implemented by Hydelec Saharan countries in terms of their regional and global events for 2005-11. in the AFR region. Madagascar. CF-Assist supported this capacity, which continues to limit their project in 2007/08 through technical participation in the carbon market and, Sub-Saharan Africa (AFR) Since its launch, CF-Assist’s efforts assistance and Project Idea Note (PIN) potentially, in larger mechanisms. In Sub-Saharan Africa is the region in Sub-Saharan Africa have led to development. When we last reported on 2010/11, we, therefore, intensified our that has thus far benefited the least notable achievements, including the: this project (in the 2008 Annual Report), work program in Africa. In terms of from the carbon market and carbon establishment of three new DNAs it was at the validation stage. Since then, practitioner exchange, we co-organized, finance development due to a lack of in Botswana, Sierra Leone and the the project was registered in August with our Nairobi Framework partners, the capacity and access to finance, and an Gambia; implementation of 11 country 2010 with a ten-year, fixed crediting second Africa Carbon Forum in Nairobi, insufficient institutional environment. programs; convening of 18 national period. Projects like this one and other Kenya, in March 2010. As reported in To help the region overcome some of training workshops and five regional success stories from our portfolio serve the 2010 Annual Report, this event was these obstacles, CF-Assist has been workshops; and identification of 67 as valuable case studies for South-South attended by over 800 participants, who implementing a focused program carbon finance projects. knowledge exchanges. were able to: share experiences with Chart 2. Regional Distribution of Events Chart 3. Events Participation Europe & Central Asia Regional Events 15% South Asia & Carbon Fora 25% 26% Sub-Saharan Africa Middle East Global Events/ 30% & North Africa Carbon Expo 5% 54% East Asia & the Pacific 19.5% Latin America & the Caribbean 5.5% Country Training Programs 20% 13 Nairobi Framework The Nairobi Framework was launched by UN Secretary-General Kofi Annan in 2006 to help developing countries, especially those in Sub-Saharan Africa, increase their participation in the CDM. CF-Assist represents the World Bank in this framework, and other partners include UNECA, UNEP, UNDP, UNITAR, UNCTAD, UNFCCC, IETA and the African Development Bank. CDM projects; learn about the latest sharing event. “You can feel the market developments in emissions trading and at the Africa Carbon Forum,� says Fabrice the future of the CDM; analyze national Le Saché, co-founder of Ecosur Afrique. and international climate change Enam Akoetey, Managing Director of mitigation policies; and facilitate the ReNew Ltd. in Ghana, states that she is negotiation of emission reductions. participating “(…) to learn and share, to get to gain experiences from other At the time of production of this Annual developers, to get ideas for new projects Report, preparations are underway for that might be developed, or be useful to this year’s Africa Carbon Forum, to be develop in Ghana, and to network�. held in Marrakech, Morocco, 4-6 July 2011. The climate change community In terms of training and learning activities, In November 2010, CF-Assist delivered partners include the ASB Partnership will again return to Marrakech (the we organized—in collaboration with the a regional workshop on estimating at the World Agroforestry Center site of COP 7 in 2001) and, in honor of Global Development Learning Network the opportunity costs of reducing (ICRAF) and the UN-REDD Programme. this, the Forum has adopted the motto (GDLN)—an event in Kenya to use a new emissions from deforestation and In addition, work is being carried out “Marrakech Plus 10.� The Forum will software tool to enhance CDM approval, forest degradation in developing beyond the scope of the workshop. “We discuss progress made thus far, as well as management and knowledge processes countries (REDD+) in Tanzania. More will establish a working group for the provide suggestions and direction for the of DNAs and certifying companies. This than 50 trainers of trainers from eight Tanzanian participants in this training road ahead for Africa, e.g., in the short- training was requested by the National countries participated in the event, and continue the work on opportunity term to Durban, South Africa, where the Environment Management Authority which discussed the importance of costs of REDD+ at the national and next COP is taking place, and beyond. (NEMA) in Kenya. The feedback from the understanding the economics of project levels,� says Ralf Ernst, UN- participants on both the new tool and land use change for the successful REDD Coordinator in Tanzania. Similar After two editions, the Africa Carbon on GDLN use in this type of training was implementation of REDD+ schemes. workshops have been offered for other Forum has established itself as the positive. We are exploring the possibility The content stemmed from a training regions (please see regional sections on region’s premier carbon finance trade of also providing this support to other manual, which CF-Assist developed in EAP and LAC below). fair and conference, and knowledge countries in the region. collaboration with the FCPF. Additional 14 “They will have modern energy services – that’s the most important thing. Vi Agroforestry, a Swedish NGO, and important financial institutions in the supported by the World Bank BioCarbon region, including the National Bank In addition, they will benefit because the REA will be a coordinating entity. Fund and the Africa Region. It covers of Egypt and Fonds Communal de We are going to sign an agreement with the project owners, so whatever we 45,000 ha and is being implemented l’Equipement (FEC) of Morocco. In 2009, get from the carbon credits is going to be distributed to the project owners.� by over 60,000 farmers in the Kisumu CF-Assist supported a CDM PoA in and Kitale regions. The project aims Morocco on waste management (with to increase the adoption of climate FEC as the coordinating entity). Justina P. L. Uisso-Rusali from REA smart farming practices that will achieve “triple wins.� These include “... Since 2009, the focus has been shifting getting higher yields, improving the toward developing the CDM PoA In 2010, we launched our e-learning renewable energy projects. With our resilience of their crops to drought and approach, which will help overcome program CDM/JI: Navigating the Kyoto- support, two PINs (CDM CPA and CDM creating stronger soils that sequester some of the limitations of the CDM’s Project Based Mechanisms. Stakeholders PoA) have been created, and submitted more carbon...,� says Andrew Steer, the project-oriented regulations (i.e., from Africa have participated in this by the REA to the World Bank CPF. World Bank’s Special Envoy for Climate high transaction costs, which have 20-hour e-learning course, as well Change. Lessons from this project discouraged the preparation of small- as in our new CDM PoA e-learning Once implemented, the project will will be collected and used for similar to medium-size projects in many course, which was piloted in February generate multiple benefits for the initiatives in the region and beyond at areas where the potential for reducing 2011. Among the CDM/JI course people. Justina P. L. Uisso-Rusali from a time when climate-smart agriculture emissions appears to be economically participants were city stakeholders REA states, “They will have modern is gaining increasing attention in reasonable and feasible). We are working from Dar es Salaam, Tanzania, where energy services – that’s the most addressing climate change. to enable countries in the region to we are working intensively through important thing. In addition, they utilize this new approach in order to our three-year (2009-12) Carbon will benefit because the REA will be a Achieving such tangible results scale up deployment of low carbon Finance Capacity Building (CFCB) coordinating entity. We are going to sign continues to be the driving force behind technologies. For example, CF-Assist is program for Emerging Mega Cities of an agreement with the project owners, our work in the region and beyond. currently supporting Amman, Jordan, the South. In collaboration with a local so whatever we get from the carbon with the development of a CDM PoA implementation partner, we are also credits is going to be distributed to the Middle East and (city-wide approach). supporting project identification and a project owners.� North Africa (MENA) feasibility study of a CDM pilot project Work programs in Morocco, Tunisia and In Jordan, we are collaborating with on waste management. In Kenya, we are supporting a “triple Egypt were among the first launched the World Bank MENA region and the win� climate smart agriculture project under CF-Assist and were completed Public-Private Infrastructure Advisory In Tanzania, we have provided further by funding technical assistance for in Fiscal Year 2009. CF-Assist’s work in Facility (PPIAF) to support the process technical assistance to the Rural Energy improving the carbon monitoring this region aimed to promote the waste of defining and prioritizing nationally Agency (REA), including three tailor- methodology, and capacity building management sector, in particular. appropriate mitigation actions (NAMAs), made trainings on know-how and tools and training for implementing which broadly refer to voluntary needed to establish themselves as a carbon monitoring systems. This During the first few years of our country-specific frameworks of coordinating entity related to small project is being undertaken by SCC- engagement in MENA, we also supported policies and actions aimed at reducing 15 greenhouse gas emissions. Specific exchange event in 2009, CF-Assist is attention will be given to private sector developing concepts on how lessons participation and identifying relevant from the Chinese CDM experience climate finance instruments. The can effectively be shared with other experience gathered from this support countries in the region. Such sharing will be valuable for regional South- could be established through a network South knowledge sharing. similar to the MAIN initiative in Latin America, which could also be used by Since the 2011 Africa Carbon Forum will CF-Assist partners at the city level. be held in North Africa in Marrakech, Morocco (and will be relevant for both Regarding cities in the region, we are the MENA and Africa regions), the engaged in the CFCB program for conference program is being designed Emerging Mega Cities of the South, with in a way that will also take the needs the participation of Jakarta (Indonesia) and requirements of the MENA region and Quezon City (Philippines). This into account. Regional DNAs, banking program focuses on a multi-pronged is securing project finance, but there in Quezon has been a catalyst for institutions, officials from the energy approach: awareness raising; knowledge are other challenges as well. Sarwo discussing and considering its elevation sector and potential CDM and PoA exchange and structured learning Handhayani, head of the regional to a nationwide activity. developers are being invited. In this initiatives; and project identification and development planning board of Jakarta, important practitioner exchange event, implementation support on the ground. states that “The Clean Development In addition to the CFCB, the CF-Assist PoA development will be a key topic, Mechanism is very useful for us, but, program has also been working in the particularly regarding specific financial Approximately midway through on the other hand, we don’t have the region on the City Twinning Initiative, and technical requirements related to implementation of the CFCB program, capacity for it, so with the CFCB’s help, in this case with the city of Bangkok, preparation, structure and monitoring, the participating cities have reached we can improve our knowledge and which has formed a partnership with as well as potential applications. a point in which they have developed learn more about the CDM.� Paris. A partnership between Ningbo feasibility studies and PINs. In Jakarta, (China) and Busan (South Korea) is also East Asia (EAP) the pilot project is on urban greening, The program has caught on well in both being planned. More information on this In China, the country with the highest while in Quezon City, it is on street cities, and the support of CF-Assist is initiative can be found in the following number of registered CDM projects, lighting/LED. The CF-Assist team works in seen as vital by stakeholders. Bebet chapter on work program activities. CF-Assist focused initially on facilitating collaboration with local implementation Gozun, former Environment Minister CDM legislation. Later, it supported the partners and stakeholders from the of the Philippines, says that “It was In Thailand, in April 2011, we organized establishment of the CDM Fund, and respective municipalities to identify through the CFCB that we were able a regional workshop on estimating the the development of a 2009 report on remaining barriers, and provides to explore and actually undertake the opportunity and implementation costs of China’s CDM program that shed light on concrete support as the projects are feasibility study for this particular REDD+ for national planning processes, the factors contributing to its success. being further developed towards project, where we are looking at energy which aimed to provide participants with Following a South-South practitioner implementation. Another key aspect efficiency for street lighting.� The work an understanding of related concepts and 16 hands-on, analytical tools. The conceptual South Asia Europe and Central Asia (ECA) CDM global market and CDM PoA, and framework for this face-to-face course With the successful convening of the In ECA, CF-Assist has initially focused to foster networking among participants. stems from the aforementioned training fourth Carbon Market Conclave in on providing rapid assistance in the manual, which was developed in September 2010 in New Delhi, India, basics of the Kyoto mechanisms and The first phase of the work program collaboration with the FCPF. which was attended by UNFCCC helping project developers identify includes developing learning courses Executive Secretary Christiana specific projects through targeted that will be delivered to selected In Fiscal Year 2012, a structure for Figueres, this practitioner exchange technical support. Related workshops stakeholders through various modes. An regional implementation (that would event established itself as the premier were conducted in Albania, Armenia, initial product, an e-course on Public include/host a network, such as MAIN platform for carbon market stakeholders Azerbaijan, Belarus (JI country), Bosnia, Procurement of Energy Efficient Services in Latin America) will be put in place to: in India. The Conclave, organized by Georgia, Macedonia, Moldova, Serbia, has been developed. It was piloted in foster ongoing work; cover a wide range the Federation of Indian Chambers of Turkey and Uzbekistan. April 2011 with the participation of of topics; help participating stakeholders Commerce and Industry (FICCI), with CF- approximately 100 people from the utilize and share available knowledge Assist and the International Emissions We are also moving towards regional, region, and preceded national workshops and expertise towards eventual Trading Association (IETA) as co- rather than in-country, initiatives. in Kosovo, Macedonia and Serbia. project implementation; and facilitate organizers, and sponsored by the Indian CF-Assist is benefiting from a development of low emissions climate Ministry of Environment and Forests, complimentary trust fund from the Additional e-learning courses will be on resilient strategies and NAMAs. A first attracted over 400 stakeholders and led Austrian Government to establish the Energy Efficiency in Public Buildings, and face-to-face meeting to set this up will to the active engagement of carbon Climate Friendly Energy Efficiency Tapping the Carbon Market for Energy be held in July/August 2011. market players from across the globe. Policies across South-East Europe Efficiency Projects in Public Buildings. capacity-building program. The program Both are expected to be available by Responding to a request from the aims to develop and scale up the January 2012. Ministry of Finance (MOF) of India, we implementation of energy efficiency (EE) will, in the coming year, offer our low and related CDM projects in the region, carbon development e-learning program and initially focuses on three countries, EFFECT (Energy Forecast Framework namely Kosovo, Macedonia and Serbia. and Emission Consensus Tool), which is An initial practitioner exchange event of particular relevance to the country was convened in Vienna, Austria, in since it focuses on forecasting energy November 2010, with 17 stakeholders use based on a tool developed under from participating countries to obtain India’s low carbon growth country study feedback on proposed activities and the program. The MOF has also expressed timeline of the work program, and to interest in a South-South knowledge identify and agree on local partners that sharing event, which would include can support the delivery of capacity- other countries from the region, on building activities. The meeting also exploring links and opportunities with provided an opportunity to learn about the financial sector for climate finance. the CDM for EE implementation, the 17 Latin America and important CDM project/project ideas sub-regional organizations for sharing Agencies (IPAs); CDM governance bodies; the Caribbean (LAC) pipeline. Hence, CF-Assist focused information, raising awareness and carbon market intermediaries; and service Most Latin American countries its programs on enhancing CDM exchanging knowledge. providers. More than 500 stakeholders engaged early in creating the necessary governance at the national level, carbon participated in the Forum, which provided conditions for CDM development. market facilitation in prioritized sectors, Our main practitioner exchange event in business and networking opportunities, The commitment of key stakeholders and diversification and further expansion the region is the Latin American Carbon as well as the opportunity to receive in the environment sector and the of national CDM project pipelines. Forum, which met for the fifth time updated information on crucial climate demonstration effect of pilot projects in October 2010, in Santo Domingo, change-related issues, the CDM and (including the World Bank’s PCF and In moving forward and bearing in Dominican Republic, and was organized the carbon market. The event in Santo other Funds) led to the establishment mind that the international climate by UNEP Risoe, the Latin American Energy Domingo followed gatherings in: Quito, of CDM offices with both regulatory change agenda is advancing, CF-Assist Organization (OLADE), the Inter-American Ecuador, in 2006; Lima, Peru, in 2007; and promotional functions. These activities in LAC have shifted their focus Development Bank (IDB), IETA and Santiago, Chile, in 2008; and Panama City, steps increased awareness among to thematic niches and new areas (e.g., CF-Assist. The Forum brought together: Panama, in 2009. stakeholder groups of different sectors, programmatic CDM and NAMAs), as project owners and developers; national and facilitated the development of an well as collaboration with regional/ CDM offices and Investment Promotion “MAIN presents an exciting opportunity by facilitating the direct exchange of first hand experiences among those who ultimately have to identify, own and implement appropriate development solutions for their countries. It allows bringing practical, credible and tested solutions to the fore; it supports self-reliance and learning from mistakes already made elsewhere. MAIN’s approach generates multiple efficiencies that go well beyond the traditional one-way knowledge transfer from the North.� - Gregor Wolf, Sector Leader, LAC Region, The World Bank 18 LAC is our pilot flagship region in terms MAIN brings together national expert events organized by network partners. has already been scheduled for October of work program implementation through teams, comprised of policy makers, The MAIN network will be a resource 2011 in Santiago, Chile. regional partners. In Mexico, the country UNFCCC negotiators and development for expert teams involved in low carbon with the most CDM projects registered practitioners from different sectors development planning or in designing Besides the INCAE Business School, in Latin America, we are partnering with from an initial six countries in the scaled-up climate mitigation actions in the initiative partners with the Center Tec de Monterrey to translate and deliver region, i.e., Argentina, Colombia, Costa their countries. Through South-South for Clean Air Policy (CCAP), as a global our e-learning courses in the region. Rica, Chile, Panama and Peru and a knowledge exchanges, this initiative will implementation partner to foster scaling During 2010/11, we translated the CDM/ network of countries in the Caribbean. help stakeholders to better understand up in other regions. The initiative is also JI e-course, and plans are underway to This continuous and interactive concepts, opportunities and challenges supported by the International Climate translate the CDM PoA course. knowledge exchange platform aims related to LEDs, NAMAs, and innovative Initiative (ICI) of the German Ministry of to accelerate implementation of nationally or internationally supported the Environment. In collaboration with our regional partner actions and discuss implementation climate finance. in Costa Rica, the INCAE Business School, strategies through monthly virtual In collaboration with the Inter-American we launched, in March 2011, the MAIN knowledge and experience sharing The initiative offers e-learning courses, Development Bank (IDB) and the United initiative, which deals with strategies among countries and showcasing best webinars and monthly GDLN sessions. A Nations Environment Programme related to LEDs and NAMAs. practices, in addition to face-to-face second regional face-to-face dialogue (UNEP), we are engaged in the Finanzas MAIN at a Glance Mitigation Action Implementation Network (MAIN) MAIN (Mitigation Action Implementation Network) • MAIN (Mitigation Action Implementation Network) L AT IN AMERIC A AFRICA ASIA • Topic: LED and NAMA strategies • Launched: March 2011 in Costa Rica • Partners: INCAE (regional virtual learning, knowledge and practitioner network); CCAP; supported by ICI • Countries: Argentina, Colombia, Costa Rica, Chile, Panama, Peru, Group of Carribean Countries • Objective: To accelerate mitigation action by fostering knowledge and INCAE experience sharing, support national expert teams in understanding concepts, challenges and opportunities related to low emissions development and climate finance, and draft related strategies • Mode of Delivery: distance learning; interactive practitioner/South-South knowledge exchange: face-to-face/web- and video-based 19 Carbono project, the first Spanish sections for reference), REDD+ was WBI Climate Change (WBICC) Practice language website on carbon finance, also offered in LAC as a face-to-face website. Eventually, we will also make which will host various capacity-building event. In May 2011, we delivered a this material available as an e-learning and knowledge-sharing tools, such as regional workshop in Cali, Colombia, course (see subsection on structured e-learning courses (e.g., those elaborated on estimating the opportunity and learning in the following chapter). and translated under CF-Assist), and implementation costs of REDD+ for communities of practice on various topics national planning processes. The content - e.g. on REDD+, which will be led by of this delivery essentially drew from the CF-Assist. aforementioned training manual on this topic, which is accessible through our As in AFR and EAP (see relevant regional Distribution of CF-Assist Activities, 2010-11 20 3. Work Program Activities 3.1 Setting the Scene Before going into medias res, we can developments in carbon finance and ongoing dialogue, which we hope will briefly recall that the WBI business lines offering them through appropriate be sustainable and create a permanent Our work program activities have been/ were introduced following the Institute’s knowledge exchange formats. CF-Assist discussion platform (e.g., the MAIN are being delivered according to the reorganization in 2009 and represent a captures knowledge from various sources, initiative is the first permanent South- conceptual and operational framework logical flow of development: awareness including the UNFCCC negotiations, South knowledge exchange platform we discussed above. As noted, we are work- raising and knowledge exchange of World Bank operations, and experiences have established in a region). ing with clients in three work program practitioners; identification of potential shared through practitioner networks. priorities/areas at four levels of engage- projects; exposure to the necessary Carbon Expo ment, as illustrated in table 1 below. skills; and collaborative leadership and Several of our flagship activities, e.g., the The seventh Carbon Expo—co-organized coalition building, which refers to hands- Carbon Expo and regional carbon fora, by CF-Assist together with IETA and We will, in the following subchapters, on support on the ground towards fall under this business line, which aims Koelnmesse—was held from 26-28 May elaborate the respective WBI business achieving capacity-building results and to raise awareness among stakeholders 2010 in Cologne, Germany. Around lines in more detail, and match them eventual implementation. and create fora on relevant topics for 3,000 visitors attended the conference to corresponding CF-Assist activities. To knowledge and practitioner exchange. and fair, and more than 200 exhibitors avoid repetition, we will try not to repeat Through these activities, we can create from over 100 countries were actively those activities already discussed in the 3.2 Practitioner Exchange a pool of clients from various regions, involved, including financial firms, regional sub-sections. At the end of this countries and cities across sectors. We can clean technology companies, carbon chapter, we will reinsert this table, with This realm of work corresponds to also cover a wide range of stakeholders credit traders, service providers, project respective activities added. CF-Assist’s role of capturing the latest who we are encouraging to engage in an developers, international organizations Table 1: CF-Assist Work Program Areas and Business Lines Work Program Area/ Low Emissions Cities and Carbon Market Business Line Development Climate Change Instruments Practitioner Exchange Scanning and Scaling Innovations Structured Learning Collaborative Leadership and Coalition Building/Implementation 21 and government representatives. representatives and technical missions City Twinning This edition of the Carbon Expo occurred from CDM and JI host countries. It also With this knowledge exchange initiative, As part of the Task Force’s work during a period when the long-term coordinated and arranged regional we are linking stakeholders from cities in program, case studies in the four cities features of the carbon market remain exhibition pavilions and national stands the South with those in the North. A pilot are being undertaken, focusing on: (i) uncertain, while, at the same time, for them to showcase project portfolios project, collaboration between Bangkok examining relevant evidence on how the need to scale up climate change and best practices. The Expo’s success and Paris, was initiated in 2009, and a the urban poor are affected by climate mitigation is evident. Carbon finance reinforced its leadership role in the comprehensive report/analysis on how change and climate-related hazards, can play a catalyzing role in leveraging global carbon market, and its status as Paris approached energy-efficient building e.g., severe weather events or flooding; development and climate finance. Thus, an unrivaled business and knowledge with a view to reducing emissions was (ii) understanding how cities have the international community is looking exchange platform for all stakeholders. conducted. As a next step, a training event addressed these challenges through at new options to leverage, blend and with city officials in Bangkok in the context existing programs and policies; and (iii) deliver finance from the private and As this Annual Report is being finalized, of a Clean Technology Fund (CTF) project identifying opportunities for further public sectors in both developed and preparations for the eighth edition of is planned for the third or fourth quarter integration of climate change mitigation developing countries. A special segment the Carbon Expo, which will be held from of 2011. The linking of the training to CTF and adaptation actions into urban of the Carbon Expo 2010 was dedicated 1-3 June 2011 in Barcelona, Spain, are work would enhance the opportunity to poverty reduction strategies. CF-Assist, in to this issue. underway. We are partnering with IETA have the twinning actually contribute to collaboration with WBI’s urban team, is and Fira Barcelona for this event and will the realization of a real project. managing the case studies in São Paulo CF-Assist supported the Carbon Expo provide further information on the Expo and Dar es Salaam. The case studies and facilitated the participation of via our WBICC quarterly e-Bulletin. Cities participating in this initiative not will be included in the Task Force’s final more than 50 high-level government only have the opportunity to engage report, which is expected to be finalized with each other in terms of knowledge by May and presented at the C40 exchange, but will also have other tools meeting in São Paulo in May/June 2011. of the CF-Assist product portfolio at their disposal, e.g., learning products and Besides C40, we have been collaborating an exchange platform, which is expected with another important city network, to be launched in the summer of 2011. i.e., Local Governments for Sustainability (ICLEI). As part of our Cities and Climate Mayor’s Task Force on Change program, in collaboration with Urban Poverty and Climate Change the WBI Urban team, we supported and Since its establishment in January co-organized the ICLEI conference “Local 2010, we have continued supporting Climate Solutions for Africa 2011� in this initiative, which includes the Cape Town, South Africa, in February/ participation of Mayors from Dar es March 2011. Salaam, Jakarta, Mexico City and São Paulo, together with the global city network C40. 22 South-South Knowledge Exchange: deliver activities in this area. However, Kenya and India scenarios on how this will be done in In collaboration with the IFC and the the future have been fleshed out. In World Bank’s Africa region, we have particular, a Development Marketplace initiated a series of South-South is being planned for 2011/12, which will knowledge exchange activities on clean provide a meeting and market place for energy and energy access between India innovative ideas that have the potential and East African countries. to be scaled up and implemented, and will enable non-traditional actors The first event was held in Nairobi, (e.g., NGOs), in particular, to showcase Kenya, in March 2011, and brought their ideas. In accordance with the together experts in renewable energy outcomes from the UN climate change project development, energy auditors, negotiations, i.e., COP 17 in Durban, industry associations, regulatory South Africa, in December 2011, such authorities, financial advisers and senior a marketplace event will probably be executives from financial institutions. designed and hosted in the area of low Representatives from the Confederation emissions development. We also envision of Indian Industry (CII) shared their hosting Development Marketplace experiences with regard to partnerships events in the other two work program with governmental institutions to areas in the following years. enhance efficiency and competitiveness, and expand business opportunities through a range of specialized services 3.4 Structured Learning and global linkages. The lessons from India have encouraged Kenyan After the pilot delivery of our first stakeholders to move towards energy 20-hour e-course (CDM/JI: Navigating efficient economic development while Kyoto-Project Based Mechanisms) mitigating climate change. in April 2010, we launched, in July 2010, the core delivery of this course in collaboration with the Greenhouse 3.3 Scanning and Gas Management Institute (GHGMI), Scaling Innovations and, subsequently, through the WBI Moodle e-Learning platform. As of As this is the latest addition to the March 2011, almost 250 people had WBI business lines, CF-Assist has not registered for this course, which was yet had the opportunity to design and delivered as a facilitated model (through 23 GHGMI) and in self-paced mode (via the in less than 6 months, and have already City and Climate Change Facts WBI Moodle Learning Platform). Demand conducted a test delivery of the first two for this course continues to be very high. modules to 125 participants from 47 More than 5 billion people, over 60 percent of the world’s population, are Advertised through our WBICC website countries. The positive feedback we have expected to live in cities by the year 2030, with most of the urban growth and e-Bulletin, and Climate-L, we receive received through a participants’ survey expected to take place in developing countries. Already, 34 of the world’s expressions of interest to enroll almost indicates that we are on the right track 50 biggest cities, including Jakarta, Manila, São Paulo, Mumbai, Mexico City, on a daily basis. As mentioned above of capturing, processing and packaging New Delhi and Karachi, are located in developing countries and economies in the Latin America regional section, knowledge on this new approach. “The in transition. By 2030, cities will be responsible for up to 80 percent of global this course has also been translated and first module of the e-learning course greenhouse gas emissions. will be offered regionally in Spanish, has been an eye opener in terms of commencing with a pilot delivery in the the potential of PoA,� commented second quarter of 2011. We have ensured James Metto from the Kenya Electricity that this course will be readily available Generating Company. John Korinihona, and Climate Change. Through this on low carbon development: the EFFECT online, and will be offered as part of from the Solomon Islands, said “Our course, we aim to offer our urban clients e-program (previously mentioned), various capacity-building initiatives we country will be able to set up our DNA basic knowledge on climate change, which targets policy makers and are undertaking. Furthermore, we are this year….I look forward to learning carbon finance options in the urban mid-level government officials, and translating the course into French to about PoA development, especially in the context, and how to integrate climate- features courses on power, household allow wide distribution in Francophone area of renewable energy.� smart solutions into low emissions and transport, as well as a generic Africa. This is expected to be launched in climate-resilient development pathways. course for decision makers. The EFFECT the third quarter of 2011. The full, eight-hour course will comprise e-program is our key learning product five modules, covering: (i) Basics of The Cities and Climate Change course under the low emissions development CDM Programme of Activities Programmatic CDM; (ii) Key Actors will comprise seven modules and run work program area, and will be used Developing the CDM/JI course has Involved in a PoA; (iii) Financial Issues for five hours, will be available in the to augment our related knowledge enabled us to capture valuable lessons, and Contractual Arrangements; (iv) third quarter of 2011, and will be offered dissemination and capacity-building which have been utilized to inform Carbon Finance Opportunities in Cities as one component of our knowledge initiatives in various regions. the production of other products, and Other Sectors; and (v) Linking and capacity-building package, which significantly through lowering course PoA to other Policy Instruments. It is is being delivered as part of our city- CF-Assist will continue to maintain development time. The first product that expected this will be available in the related initiatives. existing and develop new e-courses, has benefited from this is our e-course third quarter of 2011. At the same time, based on emerging priorities and on “CDM Programme of Activities: translation into Spanish is underway, in Low Carbon Development demand. Our next product will be Challenges and Opportunities,� which collaboration with the Tec de Monterrey. Another one of our products is in on estimating opportunity and we are developing in collaboration with its final stages of production, and is implementation costs of REDD+, which the KfW Bankengruppe, the UNEP Risoe Cities and Climate Change expected to be available by July 2011. draws its content from the existing Centre and the UNFCCC Secretariat. We In support of our urban focus, we have In collaboration with ESMAP, CF-Assist training manual that was developed in have been able to develop this course been developing an e-course on Cities has developed an e-learning program collaboration with the FCPF. We expect 24 this e-course to be available in the first procurement for energy efficient services advertise our learning products and make tools that significantly augment quarter of 2012. (which was piloted in the second them available to a wider audience. The capacity-building efforts towards quarter 2011); energy efficiency in public translation and dissemination through eventual implementation in the field. CF-Assist’s position in the World Bank buildings; tapping the carbon market regional implementation partners will Institute allows us to use several for energy efficiency projects in public also be further fostered. In addition to This table is for oversight of the likely additional e-courses and products on buildings; and climate-smart agriculture. being offered to a wide audience, by 2011/12 portfolio. Inclusion of some of relevant topics, which will augment our making the e-courses readily available these courses and respective titles are learning product portfolio. This includes In terms of dissemination, CF-Assist will, online, they will also serve as integrated still subject to change. CF-Assist funded courses on the fundamentals, economics commencing in July 2011, be able to tools in knowledge packages as part e-courses are highlighted in green. and social dimensions of climate change, use the upcoming WBI e-Institute as a of our and/or our partners’ broader Courses highlighted in blue are funded as well as more specific courses, such as platform to host and offer its courses. initiatives. Through this process, the jointly by Austrian Trust Fund and CF- those previously mentioned on: public This will further support our efforts to e-courses will act as strong, strategic Assist. Courses not highlighted are from the broader WBICC Practice, or the WBI Urban Practice. WBI Climate Change e-Learning Courses as Part of the E-Institute at a Glance In addition to the production and delivery Essentials of Climate Change Low Carbon Development Cities and Climate Change Agriculture, Soil, and Forestry of e-learning courses and products, CF-Assist has, over the years, contributed Fundamentals of Climate Change General Cities and Climate Change Water Footprint – Concept and to and supported the publication of (available by July 2011) (available by September 2011) Application several additional knowledge products, such as studies and analytical reports. Economics of Climate Change Policy Makers (available) Public Procurement for Energy Public-Private Partnerships in For example, one product is the annual Efficiency Services (available) Irrigation Management State and Trends of the Carbon Market Social Dimensions EFFECT – Power Energy Efficiency in Public Opportunity Costs of REDD+ for report, compiled by the World Bank’s of Climate Change (available by July 2011) Buildings (available by January National Strategies and Projects technical expert team, which provides 2012) (available in first quarter 2012) the latest market information, as well as trends of various carbon products. CDM/JI: Navigating the Kyoto EFFECT – Households Tapping the Carbon Market for Climate Smart Agriculture Furthermore, in 2010, we contributed to Project-Based Mechanisms (available by July 2011) Energy Efficiency Projects in Public (available by January 2012) the World Bank publication “Cities and (available) Buildings (available by January Climate Change: An Urgent Agenda,� 2012) the FCPF annual report, and the working paper “Harvesting Knowledge on REDD+: CDM PoA: Challenges and EFFECT – Transport Safe and Resilient Cities (developed Bioenergy from Rural Landscapes Early Lessons from the FCPF Initiative and Opportunities (pilot available; core (available by July 2011) by the Urban Practice and available (available by January 2012) Beyond,� and provided comments by July 2011) by September 2011) to the OECD publication “Cities and Carbon Finance.� 25 3.5 Collaborative Leadership Finance Capacity Building (CFCB) chosen to focus on waste management. with the City of São Paulo, states that and Coalition Building/ program in Emerging Mega Cities of The city of São Paulo produces 15,000 “The CFCB offers us a great opportunity Implementation the South. After its launch in February tons of waste daily, which makes for learning more about carbon finance 2009, this three-year program has been waste collection and disposal services not only through training, which The somewhat vague label for this operationalized in four cities: Jakarta, in its two largest favelas—Heliopolis aims to create an institutional hub on business line actually deals with the Indonesia; Quezon City, Philippines; Dar es and Paraisopolis—one of the greatest carbon and climate finance, but also by most concrete activities in our portfolio, Salaam, Tanzania; and, São Paulo, Brazil. challenges in terms of environmental implementing this pilot project.� with on-the-ground support of management. The city now wants to stakeholders to facilitate the eventual While Jakarta and Quezon City have promote decentralized organic waste Also falling under this business line are identification and implementation of undertaken CDM pilot projects on urban treatment systems in informal housing cases where we have engaged in direct projects, programs and integration of greening and street lighting, respectively, settlements. Guilherme F. Mattar, project support, such as in Tanzania and LED options into action plans. Dar es Salaam and São Paulo have Secretary for International Relations Amman, Jordan. Following the logic of the WBI business lines, stakeholders have ideally been exposed to previous initiatives (i.e., practitioner exchange and structured learning programs) and engaged in peer-to-peer networks before the fruits of these efforts are channeled towards policy change, programme and/or project identification and implementation. For a number of reasons, it is not always possible to rigidly follow such a clear- cut sequence (e.g., partners may already have contributed early support, which allows zooming in at a later stage). However, the business lines provide highly valuable reference and orientation points that facilitate monitoring and evaluation of implementation. One of our activities, which has basically followed the chronological sequence of the WBI business lines in a methodological way, is the Carbon 26 3.6 Overview of Work Program In the appendix of this Annual Report, Activities 2010/11 we have a comprehensive, chronological list of activities and events included; Having reviewed our work during the including information on delivery past 12 months in the various regions, month, and number of participants. organized by the work program priorities This data has also been utilized to show and business lines, we can revisit the distribution of our activities per work following table 2, which offers an program area and region. illustrative overview on select initiatives and deliverables. Table 2: Select CF-Assist Initiatives and Deliverables, per Work Program Area and Business Line Work Program Area / Low Emissions Cities and Carbon Market Instruments Business Line Development Climate Change Practitioner Exchange • South-South knowledge exchange • City Twinning • Global Carbon Expo through MAIN • Mayors’ Task Force on • Regional Carbon Fora in LAC and SAR Urban Poverty and • Regional Meeting on Energy Efficiency (EE) Climate Change and CDM in ECA Scanning and Scaling Innovations Structured Learning • Low Carbon Development • Cities and Climate • CDM/JI e-learning e-learning (EFFECT) Change e-learning • CDM PoA e-learning • REDD+ opportunity and • Public Procurement for implementation costs training EE Services e-learning manual and face-to-face workshops (i.e. AFR, EAP, LAC) Collaborative Leadership and • Carbon Finance Capacity • PoA Tanzania (Rural Energy Agency) Coalition Building/Implementation Building (CFCB) Program • PoA Amman (city-wide approach) • Climate Smart Agriculture Project in Kenya 27 3.7 Mid-Term Evaluation achieve impact on the ground. We are reporting and sharing of our work. strategy aims to meet the growing also more closely coordinating with This will allow us to more efficiently demand for capacity development In this section, we would like to reflect World Bank Group regions, identifying monitor and evaluate project phases from our clients, and set CF-Assist on our 2009 mid-term evaluation, and countries/participants for regional or and status, with respective results- for the next phase. Our work is also recall the key recommendations as global activities. oriented performance indicators. fully integrated into the World Bank’s reported in the 2009 Annual Report SFDCC, which advocates knowledge (steps taken since then are written in • Strengthen knowledge sharing tools • Strengthen the communication and and capacity building as one of its italics for better reference): by increasing real life case studies reporting (internal and external) main areas of action. to demonstrate best practices and systems to create timely access to • Set up a regular process for a lessons learned. information and program status. systematic review of country programs in order to adapt actions to changing Through the development of our We have successfully introduced needs. e-learning courses and electronic the WBICC e-Bulletin, which reports platforms, we have set up a system quarterly on news from the CF-Assist Since conducting the mid-term that allows us to efficiently utilize program. In addition, a new WBICC evaluation, we have shifted away projects we have supported in the website is up and running, where we from in-country support as our main past as case studies, and integrate post our documents and knowledge program line, and have adopted them into various knowledge products, and provide access to our the aforementioned work program packages and South-South knowledge learning products. areas and business lines as our sharing frameworks. conceptual approach. While this has • Revisit the strategic framework to significantly reduced the volume • Develop a robust and focused set develop and prioritize new activities of in-country engagement, such as of performance indicators to better in the context of the next phase to through face-to-face trainings, and capture program impacts. better reflect the needs and demands increased our work on region-wide of various stakeholders. activities in sync with new work We have adopted the WBI business program priorities, we have not fully lines, which form, in combination With the three new work program abandoned our country programs. with our three new work program areas, as proposed to and endorsed Rather, we are zooming in at a priorities, CF-Assist’s conceptual and by the CF-Assist donors in December later stage, when basic institutional operational framework. With our 2009 (Low Emissions Development, requirements have been set, and where donors, we are testing a logframe for Cities and Climate Change, and we have, in collaboration with local extending CF-Assist, which began in Carbon Market Instruments), we implementation partners, identified July 2010 and includes indicators of have expanded our program and potential for project/program progress and success. Once experience laid the foundation and direction of identification and implementation to is gathered, we will apply it to the WBICC’s emerging new strategy. This 28 4. Conclusion During the last year, CF-Assist has embedded into an emerging strategy. to create sustainable platforms for integrated its strategic directions into This will bear fruits, create synergies and South-South knowledge and practitioner its 2010-13 work program. Along with leverage our efforts. exchange. These platforms are channels the WBI business lines, they form the for our work programs and business conceptual and operational framework We have completed our shift from lines, within a framework that has clear of our work. After a period of review a primary focus on implementation capacity-building objectives. Establishing of and change within the WBI Climate through country programs towards a the first set of regional implementation Change Practice, the position of the significantly increased level of deliveries partners – i.e., the MAIN initiative in CF-Assist program has, since January at the regional level to not only use Latin America – has been an important 2011, been further strengthened and economics of scale but, in particular, leap forward in our efforts to increase outreach and regional ownership that also allows for more efficient and tailor- made deliveries of our work program. In light of the continuous uncertainty of the future of the carbon market and climate regime, and the arrival and manifestation of new approaches, we have focused our efforts on the next phase of carbon and climate finance. In addition to an increased emphasis on the programmatic approach, we are focusing on blending carbon and climate finance with other sources of financing and creating a favorable framework to support local actions for low carbon development, which are ultimately a sine qua non for new programs and projects. We are also scaling up and expanding carbon finance in cities as an integrated part of urban development strategies. We are utilizing our business lines as tools for capacity building with the eventual goal of supporting and achieving tangible results on the ground. 29 30 5. Future Future Outlook Outlook The international climate change While the means on how to tackle the for Climate Change at the World Bank, connect them through South-South community is facing a daunting task. global challenge might vary, benchmarks reported from Cancún. “Our partner practitioner exchanges, networks and In order to successfully address climate and mandates for action have been set. countries are increasingly seeking carbon fora; and support drafting and change mitigation at the global level, COP 16 in Cancún, Mexico, in December support for climate investments. As a implementation of projects and low action by and collaboration among 2010, restored faith in the multilateral result, we are now working with more emission development strategies. all countries is needed. 75% of the negotiation process. COP 17 in Durban, than 130 countries on low carbon and mitigation effort will need to be South Africa, is anticipated with both climate resilient growth.� CF-Assist is in a firm position to use achieved in developed countries and uncertainty and hope, and it will provide both the conceptual rigidity of its economies in transition, but this alone another opportunity to extend the This proactive stance by our client approach, as well as a necessary degree will not be enough. To avoid irreversible multilateral climate change framework countries comes at a time in which of flexibility to allow rapid adaptation to damage to our planet, the remaining beyond the first commitment period the World Bank’s role has also been new developments in the climate change 25% must occur in the approximately under the Kyoto Protocol, which expires strengthened as a result of Cancún, agenda, in alignment with the needs of 140 countries which are typically at the end of 2012. creating an even stronger link between our clients, priorities of our donors, and referred to as insignificant in terms of climate change action and development, in sync with our external and internal mitigation potential. Without them, By the same token, the drivers of leading to a significant demand for partners. the global community will not achieve the negotiation process—particularly capacity-building efforts. We in the the emission reductions needed. our client countries—are looking for CF-Assist team at our home in the Through its position in WBI—and its proactive, not necessarily multilaterally World Bank Institute are well positioned methods, business lines and approach to supported, approaches to address the to: provide—in alignment with and in partnership—CF-Assist is well placed to seemingly daunting challenges faced. support of World Bank operations—both contribute in a cost-effective manner to They do so with a positive “Can Do� generic and tailor-made learning and the attainment of this goal. spirit, as Andrew Steer, Special Envoy knowledge products to our clients; 31 32 Annex 1: List of CF-A Events for 2010-11 Country Regional Global Low Cities and Carbon Training Events/ Events/ Emissions Climate Market # of Programs Carbon Carbon Develop- Change Instruments Month Event Location Participants days (CT) Fora Expo (G) ment (LED) (CCC) (CMI) 2010 May HCC Annual Meeting 2010 Cologne, Germany 57 1 G CMI May Carbon Expo 2010 Cologne, Germany 3000 3 G CMI Jun CDM PoA Training for REA-Tanzania Dar Es Salem, Tanzania 16 3 CT CMI September India Carbon Market Conclave 2010 New Delhi, India 300 2 SAR CMI October Latin American Carbon Forum 2010 Santo Domingo, 600 3 LAC CMI Dominican Republic October Carbon Finance Capacity Building Program in Jakarta, Indonesia Jakarta, Indonesia 60 2 CT CCC October Mayors’ Task Force Meeting and City Case Studies São Paulo, Brazil 50 1 G CCC November Structured Learning Workshop on Methods and Tools to Arusha, Tanzania 52 4 AFR LED Estimate REDD+ Opportunity Costs in Africa November Regional Stakeholder Meeting on Energy Efficiency and CDM Vienna, Austria 17 2 ECA LED 2011 January Global Energy Basel-CFCB Session Basel, Switzerland 45 2 G CCC February DNA Global Development Learning Network (GDLN) Training Nairobi, Kenya 12 1 CT CMI March Carbon Finance Capacity Building Programe for Quezon City Quezon City, Philippines 87 2 CT CCC March Launch of Mitigation Action Implementation Network (MAIN) Alajuela, Costa Rica 40 5 LAC LED in LAC March Mayors’ Task Force Meeting and City Case Studies Dar es Salaam, Tanzania 50 1 G CCC April REDD Opportunity Cost: Training of Implementors in Asia Bangkok, Thailand 32 5 EAP LED May Agricultural Carbon Project Development Workshop Kisumu, Kenya 26 3 CT LED May REDD Opportunity Cost: Training of Implementors in LAC Cali, Colombia 30 5 LAC LED May Public Procurement of Energy Efficiency Services Skopje, Macedonia 40 2 CT LED May Public Procurement of Energy Efficiency Services Pristina, Kosovo 40 2 CT LED May Public Procurement of Energy Efficiency Services Belgrade, Serbia 40 2 CT LED e-Leaning CDM/JI e-Course (May 2010-April 22th 2011) 270 G CMI e-Leaning CDM_PoA e-Course 125 G CMI TOTAL 4989 321 1071 3597 317 292 4380 33 Annex 2. Regional Distribution of Events and Events Participation Event Participation 2005-11 (aggregate numbers for Global/ Regional Distribution of Country Training Programs 2005-11/participants Regional/Country programs/events; and percentages) 2005- 2006- 2007- 2008- 2009- 2010- Aggregate % Participants % (Rounded) Region 2006 2007 2008 2009 2010 2011 number  (Rounded) Global Events / Carbon Expo 16,841 54 AFR 176 741 416 348 116 54 1,851 30 Regional Events & Carbon Fora 8,070 26 EAP 211 497 147 85 114 147 1,201 19.5 Country Training Programs 6,154 20 ECA 76 361 0 236 142 120 935 15 TOTAL 31,065 100 LAC 143 0 110 0 96 0 349 5.5 MENA 0 262 35 0 0 0 297 5 Event Participation 2005-2011 SAR 1,163 358 0 0 0 0 1,521 25 (number of participants per year, and aggregate) TOTAL 1,769 2,219 708 669 468 321 6,154 100 2005-2006 4,106 Global Events/Carbon Expo 2010-11 2006-2007 5,295 2007-2008 5,005 Event Number of Participants 2008-2009 5,848 Carbon Expo 3000 2009-2010 5,822 Host Country Committee (HCC) Annual Meeting 57 2010-2011 4,989 Mayors Task Force Meeting 100 TOTAL 31,065 Global Energy Basel 45 CDM/JI e-Course 270 CDM_PoA e-Course 125 Event Participation 2010-2011 per program (Low Emissions TOTAL 3,597 Development, Cities and Climate Change, Carbon Market Instruments) Participants % Regional Events and Carbon Fora 2010-11 Low Emissions Development 317 6 Region Number of Participants Cities and Climate Change 292 6 AFR* 52 Carbon Market Instruments 4380 88 EAP 32 Total 4989 100 ECA 17 AFR*: Major event in AFR – Africa Carbon Forum 2011, which was originally planned for April was LAC 670 postponed to July 2011 due to Executive Board MENA 0 meeting in Thailand; number of participants for AFR during reporting period is hence signifi- SAR 300 cantly lower than if this event would have hap- pened (e.g., in 2010 more than 800 participants TOTAL 1,071 attended AFR Carbon Forum in Kenya). 34 Annex 3. Acronyms List of Acronyms AfDB African Development Bank INCAE Instituto Centroamericano de Administración de Empresas AFR Sub-Saharan Africa IPA Investment Promotion Agency C40 C40 Cities-Climate Leadership Group IPCC Intergovernmental Panel on Climate Change CCAP Center for Clean Air Policy JI Joint Implementation CD4CDM Capacity Development for CDM LAC Latin America and the Caribbean (WB) CDM Clean Development Mechanism LED Low Emissions Development CF-Assist Carbon Finance Assist LED Light-Emitting Diode CFCB Carbon Finance Capacity Building MAIN Mitigation Action Implementation Network CFU Carbon Finance Unit MENA Middle East and North Africa (WB) CII Confederation of Indian Industry MOF Ministry of Finance COP Conference of the Parties NAMA Nationally Appropriate Mitigation Actions CPA CDM Programme Activities NGO Non-Governmental Organizations CPF Carbon Partnership Facility OECD Organisation for Economic Co-operation and Development CTF Climate Technology Fund OLADE Latin American Energy Organization DNA Designated National Authority PCF Prototype Carbon Fund EAP East Asia and the Pacific (WB) PDD Project Design Document ECA Europe and Central Asia (WB) PIN Project Idea Note EE Energy Efficiency PoA Programme of Activities EFFECT Energy Forecast Framework and Emission Consensus Tool PPIAF Public-Private Infrastructure Advisory Facility ESMAP Energy Sector Management Assistance Program REA Rural Energy Agency FAC Fondo Argentino de Carbono/ Argentine Carbon Fund REDD Reducing Emissions from Deforestation and Forest Degradation FCPF Forest Carbon Partnership Facility SAR South Asia Region (WB) FEC Fonds Communal de l’Equipement SFDCC Strategic Framework for Development and Climate Change FICCI Federation of Indian Chambers of Commerce and Industry TM Tecnologico de Monterrey GDLN Global Development Learning Network UEMOA Union Economique et Monetaire Ouest-Africaine GHG Greenhouse Gas UN United Nations GHGMI Greenhouse Gas Management Institute UNCTAD United Nations Conference on Trade and Development HCC Host Country Committee UNDP United Nations Development Programme IADB Inter-American Development Bank UNECA United Nations Economic Commission for Africa ICI International Climate Initiative UNEP United Nations Environment Programme ICLEI Local Governments for Sustainability UNFCCC United Nations Framework Convention on Climate Change ICRAF World Agroforestry Centre UNITAR United Nations Institute for Training and Research IETA International Emissions Trading Association WBI World Bank Institute IFC International Finance Corporation WBICC World Bank Institute Climate Change Practice 35 CF-Assist Team Donghui Park, Cristiam Rodriguez, Inmaculada Valle Furio, David George, Maja Murisic, Gerald Kapp; Extended Consultant; Operations Analyst; Consultant, Sr. Natural Consultant; Learning Term Consultant, CFCB Program, Resource Management Communications & Resources Mgmt. Program Learning Program Communications Event Organization Specialist; Agriculture & Carbon Finance Maria-Isabel Alegre, Kai-Uwe Barani Schmidt Marian S. Delos Angeles, Marcos Castro Rutu Dave, Climate Orphe Ofumilayo Temporary; Event Sr. Environmental Sr. Environmental Rodriguez, Change Specialist; Task Olympio, Program Organization Specialist & Economist, Learning Environmental Manager EAP and SAR Assistant Team Leader Program Specialist, Task Manager Regions; CFCB Program ECA and LAC Regions Samira El Khamlichi, Pablo Cesar Benitez Sara Trab Nielsen, Peter Schierl, Todor Arsovski, Environmental Ponce, Sr. Economist; Consultant, Cities & Consultant; Consultant; Multimedia Specialist, Task Manager Learning Program Climate Change Communications; AFR and MENA Regions; Program Learning Program Learning Program 36 Acknowledgements Editor: Peter Schierl Proof Editor: Leila Mead Review: Kai-Uwe Barani Schmidt Graphic Design: Daryn Koo Photo Selection and Tables: Donghui Park Design: Studio Grafik Photos: World Bank Photo Library; WBICC Photo Library; iStockphoto Printer: District Creative Printing C Our mission is to catalyze a global carbon market that supports sustainable development, reduces transaction costs, and benefits the poorest communities of the developing world. Carbon Finance-Assist - Carbon Finance Mission Statement at the World Bank The World Bank 1818 H Street, NW Washington, DC 204333, USA Phone: +12024737242 Email: cfassist@worldbank.org