51945 I n tern atIo n al D evelo p men t asso cIatIon IDa at WorK Environment protectIng natIonal anD global resources september 2009 sustaInable Development netWorK contents Environment: Protecting National and Global Resources 2 Sustainable Woodfuel in Rural Senegal Addresses Energy Needs 10 Sri Lanka: Renewable Energy for Rural Progress 12 Bosnia and Herzegovina: Solid Waste Management Project 14 Vietnam's Mangrove Forests Fight Erosion, Improve Livelihoods 16 Soil and Water Conservation in India's Karnataka Watershed 18 d | IDA at WORK: Environment Internat Ional IDa at WorK Development a ssoc Iat Ion Environment protectIng natIonal anD global resources Mainstreaming the principles of environmental improvement into sustainable development strategies is central to the World Bank's mission of overcoming poverty. The poor are directly dependent upon environmental services for their livelihoods and well being, and on a broader level, economic growth suffers where environmental resources are degraded or lost. This booklet describes how the International Development Association (IDA), the concessional lending arm of the World Bank, supports the poorest countries to improve their management of land, water, air, and biodiversity resources. Several examples show how creative pilot solutions, once scaled up, have had a positive impact on the lives and health of the poor. Our seminal work in Country Environmental Analysis (CEA) and Strategic Environmental Analysis (SEA) now underpins most IDA portfolio lending. IDA's engagement in several global issues (critical ecosystem partnerships, global forest protection, coastal and marine management, and fisheries) responds to the call for leadership in global public goods. Strategic prioritization, policy cohesion, and institutional strengthening have been the greatest challenges to effecting tangible successes in global programs. Climate change, one of today's greatest global challenges, is treated in more detail in a separate policy brief. While dedicated IDA lending for environmental and natural resource management has averaged $470 million per year over the last decade, we believe that IDA donor support must increase so that IDA clients may improve their management of environmental resources, strengthening their poverty reduction strategies. We offer a few stories from past and present IDA clients, such as Bosnia Herzegovina, India, Sri Lanka and Vietnam, to demonstrate the benefits of these activities and the importance of strategic alliances and a global approach. James Warren Evans Director, Environment The World Bank IDA at WORK: Environment | 1 IDa at WorK Environment: Protecting National and Global Resources Over the past decade, the International Development develops with client countries. Environmental Association (IDA), the World Bank's fund for the safeguards around World Bank projects have world's poorest countries, has lent some US$4.7 evolved and emerged as the global gold standard for billion to support investment in environment and environmental assessment and management. The natural resource management. This support has Bank also works closely with environmental nongov- helped mitigate air pollution in urban and industrial ernmentalorganizations(NGOs)throughpartnerships areas; provide cleaner and more reliable supplies of and implementation agreements. water; make land management more sustainable; build environmental institutions; deal with climate IDA CONTRIBUTIONS change, and protect biodiversity. Independent IDA is helping countries meet their Millennium evaluations have shown that IDA lending has been Development Goals. delivered effectively. While environmental sustainability is a factor in Through credits and analytical work, IDA has meetingtheMillenniumDevelopmentGoalsoverall, contributed to the increasing integration of environ- Goal7specificallyistoensureenvironmentalsustain- mental issues in national development strategies, and ability. Two targets under this goal are a particular in the country assistance strategies the World Bank focus of IDA's environmental work: targets 9 and 10. At a glance · ThecoastalmanagementandmangroverestorationofVietnam'ssoutherncoastincreased climate resilience for 120,000 households in lower Mekong Delta. · Soilandwaterconservationworkscompletedonover200,000hainKarnatakaState,India, improved average crop yields by about 24 percent and broadened crop diversity. · Nearly50percentofBosniaandHerzegovina'ssolidwasteisnowdisposedofinasanitarylandfill or in another environmentally sound manner. · IDAlendingforenvironmentandnaturalresourcesmanagementaveragedaboutUS$470million per year over the past 10 years. · Africawasthemosttargetedregionoverthesameperiod,withashareofmorethan41percent of total IDA commitments for environment and natural resources management, followed by South Asia with 26 percent. 2 | IDA at WORK: Environment Incorporating the principles of sustainable An example is Central African Republic's Develop- development ment Policy Operations, where improved governance Target 9 is to integrate the principles of sustainable and transparency of forestry and mining assets set development in country policies and programs, and the stage for restoring the key functions of state reverse the loss of environmental resources. The first governance, especially with respect to natural part of this target coincides with the Bank's ambition resource management. These efforts were supported to incorporate environmental issues, as stated in its by parallel activities by other World Bank teams, such environment strategy. as the debt relief initiative, and by other bilateral and The World Bank provides two kinds of financial multilateral institutions. support: Development Policy lending, which support economic and social programs across a broad range Protecting environmental resources. of sectors; and Investment lending, which support ThesecondpartofMDGtarget9referstoseveral specific poverty reduction projects. Development environmental resources, one of them being forests. policy lending has benefitted from a greater integra- Since 1990, the world has lost some 1.3 million tion of environmental issues, often focusing specifi- square kilometers of forest, almost 100,000 square cally on strengthening governance in natural re- kilometers each year. Considering that more than 1 source management. The percentage of billion poor people derive their livelihoods from Development Policy Loans addressing environment forests, this rapid loss threatens their prosperity and and natural resource management has grown from national efforts to reduce poverty. about one percent in fiscal year 2000 to 16 percent In forest management, IDA combines work to in the fiscal year 2008. make the management of protected land areas more effective with activities that benefit forest-dependent communities. IDA has financed the creation of new IDA Commitments for Environment and Natural Resources Management (ENRM) protected areas as well as the expansion and by Sub-theme, FY2000­2009 (US$ million) strengthening of existing ones. These cover forest, mountain, and dry land systems, with increasing Biodiversity $145 attention paid to freshwater and marine ecosystems. 3% Examples include Lao, Uganda, Bolivia, Madagas- Other ENRM Climate car and India (see box). $283 change $506 The international community has turned to the 6% 11% World Bank for leadership in the areas of energy access, as well as the mitigation of greenhouse gas Water resource Environmental policies emissions and adaptation to impacts of climate management and institutions change. The Bank began articulating its response in $1,401 $742 29% 16% an April 2006 paper entitled Clean Energy and Development: Towards an Investment Framework. Land administration Intensive work along those lines continued at the and management $668 Bank, with the IDA and Climate Change report (2007) 14% and a Strategic Framework on Climate Change and Pollution management and environmental Development (2008). health $1,008 21% IDA at WORK: Environment | 3 IDa at WorK: environment For the poorest countries of the planet, the issues · allocatingsignificantfinancialresourcesas of improved energy access and clean energy are demonstrated by a lending volume of about paramount, and IDA will support them by providing US$4.7 billion in environmental and natural analytical work, capacity building, and lending to resources projects in the past decade; reduce vulnerability to climate variability and change. · mobilizingadditionalfinancialresourcesand coordinating assistance on environment with the Providing access to life-saving resources: water. GlobalEnvironmentFacility(GEF),bilateral While the safe drinking water Millennium Develop- agencies, and foundations; mentGoaltargetislargelyontrackglobally,noteven · makingavailablethelargestcontingentofexperts halfofthesanitationtargetwillbemetby2015. in the world--more than 200 staff--with an Current financial efforts need to be almost doubled to increasing presence in field offices; meet the sanitation target. Reaching goals on water · developingglobalknowledgeonabroadrangeof supply and sanitation alone in sub-Saharan Africa will topics that help clients learn from each other on require annual investments of some $7 billion means to achieve economic growth with environ- annually, well above current investments of $800 mental sustainability. million annually. Water, environment, and health teams continue to work together on issues of child Helping to deliver results for people around the mortality, water quality, hand-washing, and other key world. activities. In the India Karnataka Watershed Development Project (IDA US$100 million), completed in 2007, Using IDA's comparative advantage. IDA played a key role in helping the government Environmental issues cut across economic and design a project to test new participatory approaches social sectors and require strong government for integrated watershed planning and implementa- leadership to correct market failures and promote tion. The new model also draws in non-governmental actions by all members of society. While many organizations(NGOs)asactivepartners.Results development partners are active in this sector, IDA include soil and water conservation works provides unique services by using its partnerships completed on over 200,000 ha, improving with governments at all levels to integrate environ- average crop yields by about 24 percent and ment into economy-wide policy and development broadening crop diversity. planning. This includes: The Nigeria Local Empowerment and Environmen- · linkingtheenvironmentandallrelevantdevelop- tal Management Project (IDA US$70 million) demon- ment sectors (e.g., through analytical work and stratedhowNigerianscanplan,fund,implement, sector-wide environmental assessments); and operate and maintain small environmentally- · conveningstakeholderswithinandoutsidethe sustainable and socially-inclusive projects across a national context to form partnerships that address number of key sectors. More than one million people environmental problems requiring collective are benefiting from education micro projects, 1.1 action; millionfromhealth,1.8millionfromwater,500million fromruraltransport,and500millionfrom 4 | IDA at WORK: Environment environment and natural resource management facili- includes low-impact energy generation, climate ties provided by the communities themselves. The resilience planning, and natural resource conserva- project monitoring records also show 1.2 million tion. more children are now in school as a result of the The Bosnia and Herzegovina Solid Waste Projects education facilities under the project and close to 1.9 1 & 2 (IDA US$66 million total) target people's million people now have access to improved water exposure to garbage in open dumps, which is one of supply in terms of distance traveled and cost. the most serious public health risks in urban areas. Relying on a Strategic Environment Assessment The project focuses on regional landfills, safe andaNationalTourismStrategy,TheHonduras methods of disposal, and rehabilitation of landfills. It Coastal Tourism Project(IDA$5million)setoutto also emphasizes, public awareness, training of plan a more sustainable coastal tourism industry. It sector staff, extending waste collection to areas not set up a series of environmental conservation currently serviced, and the development of business activities, as well as a Fondo Prosperidad for plans. With six regional landfills established by income­generating activities, and to underwrite the end of the first project in 2009, almost half financial sustainability of the sector. The region now of the country's population is benefiting. A new has a "sustainable tourism" approach that integrates project is being prepared to support the construction the economic benefits of responsible tourism. This of six new sanitary landfills by the end of 2013. Planting Trees in Southern Vietnam to Fight Coastal Erosion When Typhoon Linda struck southern Vietnam's coast in 1997, it exposed a compromised ecosystem. Historically, vast mangrove forests have stabilized coastlines, affording protection from winds and storms. But for years, local populations had exploited the forests for timber and firewood or cleared the trees to make room for shrimp farms. With a view to rebuilding livelihoods and restoring a devastated ecosystem, the Coastal Wetlands ProtectionandDevelopmentproject(IDA$23M,GlobalEnvironmentFacility$7M)financedbythe WorldBanksetaboutplantingalmost5,000hectaresofmangroves,ofteninchallengingenviron- ments. Includingrelatedgovernmentprograms,about25,000hectaresofnewtreeswereplanted between 2000 and 2007 to protect Vietnam's southern coast. Today, the newly planted trees are a haven for sea creatures. Sediment from the Mekong Delta is being trapped in the mangroves' unique root systems, helping roll back years of coastal erosion. As a result, fishermen are witnessing more shell varieties, a resurgence of crab seedlings, improved daily catches and higher incomes. And coastal communities have gained protection from waves and seasonal storms. The project also included an ambitious social development program to help address one of the root causes of environmental degradation--precarious living conditions and entrenched poverty in areasnearthecoast.Alltogether,about1,500familiesacrossfourprovinceswererelocatedfroma fragile beach-front environment to comfortable housing in new communities protected by dikes. These families gained access to schools, roads, electricity, water as well as literacy classes, exten- sion services, micro-credit, seeds and land. For many, the move has meant new opportunities and a more secure grip on life. IDA at WORK: Environment | 5 IDa at WorK: environment Expected impacts of this second project include an Furthermore, it has direct implications for institu- improved disposal management system and en- tional arrangements in the Bank to facilitate the requi- hanced coverage of formal waste management site collaboration across sectors for, and continued services, improved ground water quality at disposal attention to, tackling diseases such as diarrhea, sites, higher citizen satisfaction with waste manage- which still claims 1.6 million lives annually, mostly of ment services, and an increased cost recovery rate children from poor families in developing countries. of participating utilities. Further, recently completed Economic and Sector work in Uganda (2009) shows how financing and Providing critical research and analysis. governance issues are critical to expanding sanitation In addition to lending, IDA has provided an average and hygiene, improving environmental health of 18 analytical studies a year over the past three outcomes and meeting the country's various health years, as well as a range of technical assistance goals. The Uganda analysis identifies institutional focused exclusively on the environment. bottlenecks relating to sanitation and hygiene and We continue to work with our partners and focus shows how an integrated budget line for sanitation on the messages contained in groundbreaking 2008 can be included in the context of Uganda's efforts to World Bank study Environmental Health and Child decentralize some essential services, bringing them Survival ­ Epidemiology, Economics, Experiences. closer to the communities. This report highlighted that diseases from environ- Country environmental analyses provide the mental risk factors-- diarrhea, acute respiratory analytical basis to integrate environmental consider- infections, and malaria--are the top killers of children ations into the range of projects and programs ­ under five in developing countries. Malnutrition is an both lending and technical ­ the Bank offers to important contributor to child mortality and is support developing countries. In fiscal year 2008, inextricably linked to environmental infections. country environmental analyses were completed in Climate change is projected to increase the burden several IDA countries, namely Ethiopia, Honduras, of malnutrition, malaria, and diarrheal diseases. The Namibia,Nepal,Nigeria,Senegal,Timor-Leste,and burden falls most heavily on the poor, particularly in Vietnam. Analyses also were underway in Benin, and large, populous areas in South Asia and Africa. Côte d'Ivoire. Giventhestronglinkagesofenvironmentalfactors Similarly, Strategic Environmental Assessment to health outcomes, such as diarrhea and malnutri- provides a framework for assessing and managing a tion, and the effects of climate change on food broad range of environmental risks, further assisting security, collaborative research for health offers a the Bank as it integrates environmental issues across significant opportunity to incorporate those linkages. numerous sectors into its activities. The assessment On the Bank's side, it also underscores the need for has focused on fisheries, forestry, mining, and urban multiple sectors in the Bank to work together toward development planning sectors. Work was completed achieving improved health outcomes in client during the 2008 fiscal year in IDA countries Bangla- countries, both through prevention of disease and desh,Cambodia,Cameroon,Guinea,India,Kenya, death, as well as through treatment and innovation Liberia, Madagascar, Sierra Leone and Zambia. related to drug and vaccine development, for TheSecondNaturalResourcesand example. 6 | IDA at WORK: Environment EnvironmentalGovernanceDevelopmentPolicy Climate Change Portal provides climate-related data OperationProgramforGhana,followedacountry and serves as a launching point for adaptation tools environment analysis prepared in collaboration with a (including the Climate Risk Screening Tool ADAPT) local donor group on environment and natural and other resources. These achievements are resources. In addition to supporting a Strategic contributing to IDA's efforts to combine development Environmental Assessment for the oil sector, this and climate change action in an integrated country program continues to address governance issues in platform. As a result, IDA's recent lending and the forestry and mining sectors as well as to improve non-lending activities have been characterized by environmental management. increased attention to climate-related risks and improved analytical work. GLOBAL ISSUES More information on IDA's climate change The world today faces an array of both persisting activities can be found in a brief on the subject at and new challenges in seeking to protect the www.worldbank.org/ida. environment, manage or mitigate the impacts of climate change, and protect the earth's biodiversity. Biodiversity. The World Bank has been a leader in Achieving progress in all these areas ­ such as strengthening the capacity of developing countries to properly managing forests, preserving fish species or benefit from biodiversity funding. preventing soil erosion ­ requires actions coordi- IDA's biodiversity investments help to improve the nated across sectors and among the various management of protected areas, build the capacity stakeholders. of communities to manage biodiversity resources, and work with governments to design and implement IDA has a proven track record of effective policies that support effective management on local, engagement in global environmental issues. national, and regional levels. One such project, the The international community has turned to the World Guinea-BissauCoastalandBiodiversityManagement Bank for leadership in a number of areas, including Project has provided the investment to establish climate change, biodiversity, sustainable forest IBAP,asemi-autonomousGovernmentagency protection and forests and management, and coastal responsible for management of the country's five and marine management, including fisheries. national parks. The agency works with the communi- ties to ensure that the forests are protected. Protec- Climate Change. Important milestones have been tion of this vast forest-rich area opens an opportunity reached in the effort to broaden action on climate for the generation of carbon credits in the interna- change over the past couple of years. The Strategic tional carbon market as a result of reduced emis- Framework on Development and Climate Change sions from deforestation and degradation. The was adopted by the World Bank in October 2008. resulting funds will help the country to position itself During fiscal year 2009, donor country pledges have to fund IBAP and the management of the parks, been made to Climate Investment Funds and project rather than through financing from IDA and the implementation is expected to begin as early as the GlobalEnvironmentFacility. current fiscal year. Meanwhile, the World Bank's IDA at WORK: Environment | 7 IDa at WorK: environment Sustainable Land Management. The recent Coastal and Marine Management Millennium Ecosystem Assessment, with contribu- Climate change threatens to push many of costal tionsfrommorethan1,300authorsfrom95coun- and marine ecosystems over the edge, with severe tries, confirmed that land degradation and desertifi- consequences for all of society, and especially harsh cation is potentially the most threatening ecosystem consequences for the world's poor. change with impacts on the livelihoods of the poor. Properly valuing coastal and marine ecosystem One of the leading financiers of measures to combat services is critical to sustainable development, land degradation and desertification, IDA has according to the World Bank publication Environment invested some $700 million in sustainable land Matters: Valuing Coastal and Marine Ecosystem management activities, including the TerrAfrica Services. This report argues that while we recognize partnership in sub-Saharan Africa. One such exam- the ocean provides vast quantities of food, it also ple is the Sustainable Land Management Project in plays a key role in regulating our global climate Ethiopia, where smallholder farmers are working to through its role in the earth's carbon cycle, and the reduce agricultural land and to improve agricultural global conveyer belt of ocean currents. The ocean is productivity through improved watershed manage- also home to the richest diversity of life forms on the ment practices, rural land certification and adminis- planet. These and other essential services vital for life tration, and access to financial and technical support and humankind have been treated as "free assistance. goods", and the ecosystems that provide them are rapidly deteriorating through overuse, pollution, and Forest Protection and Management is another physical destruction. long-standing area of IDA engagement. PROFOR is a Valuation of indirect ecosystem services pays multi-donor partnership to provide improved informa- particular attention to the regulating role of coastal tion and knowledge on key forest issues such as and marine resources in providing habitats for marine livelihoods, governance, finance, and cooperation ecosystems and in continuing to provide essential across sectors. Through the Forest Alliance, IDA services in fisheries productivity, tourism amenities, combines forces with the World Wildlife Fund to coastal protection, and CO2 uptake. create representative, well-managed protected forest The annual contribution of ocean ecosystem areas, and responsibly-managed forests outside goods and services to the global economy has been protected areas. IDA is also involved in the Forest estimatedtoexceed$20trillion.Non-marketvalues LawEnvironmentandGovernanceprocess.In such as biodiversity and climate regulation are partnership with governments, civil society, and the incalculable, and the spiritual worth of an intact private sector, this process aims to create high-level seascape and the wonder of a coral reef are impos- political commitment to address illegal logging and sible to quantify. other forest crime. Additionally, The Forest Carbon Coastal and marine ecosystems play a complex Partnership Facility supports climate change mitiga- and vital role in supporting economic prosperity and tion that reduces deforestation. social welfare in developing countries. As we prog- ress further into the 21st century, the importance of these coastal and marine resources is certain to increase. 8 | IDA at WORK: Environment Fisheries. TheWorldBank'sGlobalProgramon Through the strategy preparation process, the Sustainable Fisheries, "PROFISH" continues to meet World Bank will seek to identify key areas in which it the challenges of the growing crisis in the world's should engage to support its clients to more effec- marine fisheries and the impacts of the crisis on poor tively address environmental priorities and move people in coastal- and fisheries communities around toward greater sustainability. In addition, the strategy the world. Recently, PROFISH produced two major will explore the Bank's potential role in supporting publications geared at policy makers and managers innovative financing approaches for supporting in IDA countries: The first is the "Sunken Billions", environmentally-sustainable development in client which focuses on economic justifications for fisheries countries. In that regard, the Bank will work closely reform; the second is "Changing the Face of the withdevelopmentpartners,suchastheGlobal Waters", which looks into the promises and chal- Environment Facility and multilateral and bilateral lenges of sustainable aquaculture. Both reports are donors, with a view to strengthening collaboration. already being applied in the West Africa Regional Fisheries Project, which aims to ensure sustainable Lessons learned. livelihoods, food security, and economic growth for In its work on environmental issues, IDA is nineIDAcountries,fromMauritaniatoGhana. increasingly reflecting the following lessons learnt: · Investingintheenvironmentiseconomically LOOKING AHEAD justified. IDA investments have demonstrated that improving management of crops, grasslands, and The Bank, the International Finance Corporation and forests can provide higher incomes to poor theMultilateralInvestmentGuaranteeAgencyare people. Cleaner air, water, and reduced exposure embarking on the preparation of a new World Bank to human waste and garbage improve the health GroupEnvironmentStrategy,expectedtobe and productivity of the working poor. completed by December 2010. This exercise reflects · Earlyandcomprehensiveanalyticalworkhelps theWorldBankGroup'senduringcommitmentto target IDA support addressing economic and ensure that its support to client countries leads to social problems of critical importance to the poor development results that are economically, socially, (e.g., investing in watershed management for food and environmentally sustainable. production and water supply). Country-level The new strategy will articulate a set of principles environmental analyses present an opportunity to and propose an approach for achieving environmen- work with governments to identify the main talsustainabilitywithintheWorldBankGroup's environmental challenges and to collaborate with portfolio. It will examine the experience and lessons other donors, who generally have similar interests. learned from the creation within the World Bank of · Operationalqualityatentry,supervisionand theSustainableDevelopmentNetworkinfacilitating completion can still be further enhanced. the integration of environmental considerations in · Increasingly,IDAshouldrelyondomesticenviron- other sectors in which the World Bank works. mental safeguards that pass the test of equiva- lence and acceptability to IDA. · Theenvironmentisanareawithamultitudeof actors. To ensure strategic objectives are met, it is important that IDA continues leveraging its resources through global programs. IDA at WORK: Environment | 9 IDa at WorK: environment Sustainable Woodfuel in Rural Senegal Addresses Energy Needs Challenge Results At the time of project preparation, forest-based Demonstrated that the production and traditional fuels (firewood and charcoal), mainly used marketing of traditional biomass fuels can forhouseholdcookingpurposes,represented53 be stabilized, while arresting deforestation, percent of Senegal's final energy consumption. The contributing to ecological conservation and bulk of the consumption of charcoal took place in the increasing village incomes. More than 20 principal urban areas. Over the years, the operation percent of Senegal's woodfuel consumption of the charcoal industry in Senegal had resulted in in 2004 was derived from sustainably managed (i) the gradual loss of forest cover (approximately forests. 30,000 ha per year) degrading the ecosystem's carbon sequestration capacity and biodiversity; Highlights: (ii) the degradation of the rural environment (particu- · Sustainablecommunity-managedforestswere larly soils); (iii) the impoverishment of rural areas and established over an area of 378,161 ha (exceeding an acceleration of rural exodus; and (iv) a massive project targets), supplying more than 370,000 transfer of wealth from the rural communities to a few tons per year of sustainable fuelwood. city-based woodfuel traders. These negative impacts · Asanincentiveforrespectingsustainableforest disproportionately affected rural women and children. plans, villagers benefited from rural development and training schemes. Community-based micro Approach enterprises were established including beneficiary- The project adopted a comprehensive approach, operated improved carbonization units, apiculture tackling both woodfuels' supply and demand, by cooperatives, collective and individual agricultural diversification units/systems; livestock and · Mappingforestresources,preparingparticipatory, poultry-raising, arts and crafts units, etc. While sustainable forest management plans, and training woodfuel and large liverstock activities where communities on how to implement them, over mostly led by men, all other activities where 300,000 hectares of forests in the Tambacounda generally managed and operated directly by andKoldaregions,strengtheningintheprocess women. thebufferzonearoundtheNiokolo-KobaNational · Establishedasustainableincrementalincome Park. generation base (wood and non-wood products) · EstablishingGIS-basedforestrymonitoringand ofaboutUS$12.5millionperyear,equivalenttoa evaluation systems. $40,000 average per participating village. Of that · Promotingprivatesectorinter-fuelsubstitution total, more than 30 percent resulted from women- and the use of improved stoves. led economic activities. · Strengtheningtheinstitutionsinvolvedinthe · Morethan20percentofSenegal'scurrentenergy management of the sector, and promoting the supplies were derived effectively from renewable participation of civil society, with a special focus resources in the form of sustainable woodfuels in on women and mobilization opportunities at the 2004.(Thatsharehasincreasedto50percent village and regional levels. Villages were made today with the introduction of sustainable green contractually responsible for the forests in the wood cutting in an eight-year rotation program). project zone. 10 | IDA at WORK: Environment · Inter-fuelsubstitutions(switchingfromcharcoalto keroseneandLPG)andimprovedstovesdirectly benefitedsome250,000familiesintheprincipal urban and peri-urban areas of Senegal, reducing negative health effects associated with in-door pollution. · Trainingandmicro-creditschemeshelpedcreate an economically viable market for improved stoves. IDA Contribution · IDAcontributedUS$5.2millionofUS$19.8million project cost. The project demonstrated that the · PioneeredtheuseofGISforthedevelopmentof production and marketing of traditional community-based participatory forest and natural resource management schemes. biomass fuels can be stabilized, while · Introducedcommunity-basedruraldevelopment approaches that will be replicated in non-forested arresting deforestation, contributing to areas, where central economic activity will be agri- ecological conservation and increasing culture, fisheries, or other. village incomes. Partners From project preparation to supervision, the World Bank worked in close collaboration with the Dutch Co-operationagency(DGIS)whichcontributed US$8.8million.TheGlobalEnvironmentFacilityalso co-financed the project (US$4.7 million). Next Steps · Theestablishmentofasustainableanddiversified income base and the generation of a productive demand for energy have made the 317 project zone villages prime candidates for rural electrifica- tion and increased access to other modern energy services. · Asecondtransitionalphaseofthisprojectisnow under implementation, covering an additional 269,000 hectares. IDA at WORK: Environment | 11 IDa at WorK: environment Sri Lanka: Renewable Energy for Rural Progress Challenge · Renewable off-grid increased. Under the Sri Lanka is a densely populated island nation, with off-grid electrificationcomponent,105,032solar about 20 million people whose per-person income is home systems were installed; 126 village hydro $US1,500,wellabovetheSouthAsianaverage. schemes achieved an additional 1.23 MW capac- However, the country is characterized by wide ity, providing electricity to more than 4,700 disparities in income and opportunities. The majority households. of rural communities have long had limited access to · Credit expansion helped. A credit line extended energy. Where it is available, it is relatively expensive. to commercial banks at subsidized rates with longer tenures reduced barriers to accessing Approach finance for renewable energy development. The IDA-financed Renewable Energy for Rural · Private sector galvanized. This project en- Economic Development Project was launched in hanced the capacity of private sector developers, 2002 to increase access to rural energy supplies, some of which provided technical advice for thereby improving the quality of rural life in Sri Lanka. renewable energy development in neighboring The project followed a two-track approach for countries. improving energy access: first, expanding off-grid · Rural business assisted. 826 additional small- renewable energy technologies and providing energy scale and medium-scale enterprises (including services to remote communities; and second, public and religious institutions) in rural areas were promoting private participation in grid-based power provided electricity (compared to a project target generation. of1,500businessesby2011),and · Household access expanded. The project Results provided 109,737 additional households in rural The project resulted in increased power- areas with electricity (on track to achieve a project generation capacity, private-sector target of 160,000 households by 2011). involvement, and rural energy access: more than 105,000 households have benefited from IDA Contribution the off-grid electrification program; more than The Renewable Energy for Rural Economic Develop- 4,700 households now have electricity provided ment was launched in 2004 with an IDA credit of to by village hydro and biomass projects; 826 US$75million,co-financedwithagrantofUS$8 additional rural small-scale and medium-scale millionfromtheGlobalEnvironmentFacility.The enterprises (including public and religious financial intermediaries and developers contributed a institutions) in rural areas have been provided totalofUS$49.9million,withtheGovernmentofSri electricity. Lanka contributing US$0.8 million. IDA provided an additional US$40 million line of credit for RERED As of March 2009, highlights include: Additional Financing in 2008. US$7 million from the · Renewable on-grid expanded. 105MWof IDA credit was subsequently reallocated to the grid-connected mini-hydro capacity is newly in IDA-Financed Tsunami Emergency Recovery Pro- operation,comparedtoatargetof135MWby gram. By providing an institutional framework and June 2011. The Sustainable Energy Authority issued permits for 40 upcoming mini-hydro projects (with a combined capacity of 102 MW). 12 | IDA at WORK: Environment implementation mechanisms, IDA has been the major driver behind the private sector in developing Sri Lanka's renewable energy industry. The frame- work for a standard power purchase agreement has been put in place with IDA assistance. This has facilitated the process of contracting power, and has reduced transaction costs even for small power developers.Delivery Project and RERED is well known and appreciated in Sri Lanka. The framework for a standard power purchase agreement has been put in place with IDA assistance. This has facilitated the process of contracting power, and has reduced transaction costs even for small power developers. Next Steps The project may soon provide support to the first More than 4,700 households now have commercial wind project. Recently, there has been some slowdown in implementation due to increase in electricity provided to by village hydro and cost of financing installation and construction of grid expansion and delays in the provision of subsidies. biomass projects; 826 additional rural However,theGovernmentandtheWorldBank small-scale and medium-scale Groupareworkingonrampingupfinancing. enterprises (including public and religious institutions) in rural areas have been provided electricity. IDA at WORK: Environment | 13 IDa at WorK: environment Bosnia and Herzegovina: Solid Waste Management Project Challenge · SarajevoandBanjaLukahaverecyclingarrange- In 2000, solid waste collection services in Bosnia and ments with private recycling factories for paper, Herzegovina (BiH) covered only about 60 percent of plastic, metal, and tires. The Sarajevo landfill is the larger municipalities and a much lower share in now a model for the rest of the country and the rural towns. Institutional and enforcement capacity region. was weak, and equipment for waste collection and · Thecollectionrateintheprojectregionhas disposal were obsolete and poorly maintained. As a increased from 40 to 70 percent. result, significant amounts of waste were discarded · Sevenmulti-municipalwastemanagementdistricts in unofficial sites such as wild dumps, roadsides, were established through the cooperation of rivers and mines, posing a direct risk to public health multiple municipalities. Implementation progress and causing serious environmental problems. has been particularly impressive in Sarajevo, Banja Luka, Zenica, and Bijeljina Approach In 2002, the Solid Waste Management Project was IDA Contribution launched to improve solid waste services in partici- TheGovernmenthasrepeatedlyaskedIDAfor pating priority areas. Project objectives included continued support to the sector. Solid Waste increasing administrative and technical capacity for ManagementremainsapriorityfortheBHGovern- solid waste management at the local and entity level, ment and the IDA's ongoing support has been improving cost recovery, encouraging private sector agreed upon in the new Country Partnership Strategy involvement, addressing environmental problems, (CPS) for FY08-11. This reflects the continuous and reducing health hazards caused by inadequate support the Solid Waste Management Project waste collection and disposal systems. receivesfromtheBHGovernmentandwillallowIDA tomeettheGovernmentsdemandtoscale-upthe Results operation and include additional regions into the With six regional landfills established by the end project. In addition to its financial contributions of of the project, almost half of the country's US$26 million, IDA played a coordinating role in population is benefiting. helpingtheGovernmentofBosniaandHerzegovina raise additional resources from other donors. Highlights: · Nearly50percentofsolidwasteisnowdisposed Partners in a sanitary landfill or in another environmentally Due to limited available resources and huge needs for sound manner. furtherinvestmentsinthesector,theGovernment · Atotalof145wilddumpsiteswerecleanedand and IDA have sought additional funding for the sector closed, greatly reducing environmental and health from numerous bilateral and donor agencies since hazards. This represents more than a 10 percent 2002 and from the beginning of the project IDA has reduction of wild dumpsites; and by the end of the been coordinating closely with a number of donors in project,15percentwillbeclosed. the sector. The solid waste strategy which is guiding investments in the sector was funded by the EU in 2000. Since then, many activities have been financed in parallel by other donors. Donors are very support- 14 | IDA at WORK: Environment ive of IDA's work in the sector and have provided substantial technical assistance. IDA has strong partnership arrangements in technical assistance in coordination with the European Union, JICA, SIDA and USAID. Technical assistance was provided by EU, SIDA, JICA and USAID. The EU financed a few technical assistance activities as well as cleaning up of one of the biggest wild dump site in the Republika Sprska(Knezevo).EUwillalsoconsiderparallel financing parts of the Second Solid Waste Manage- ment Project and the future programming in this sector for the IPA funds will be closely coordinated with the PMU. It was agreed recently with the With six regional landfills established by the Ministry of Foreign Trade and Economic Relations (MoFTER), BiH that donor coordination in the Solid end of the project, almost half of the Waste sector will be formalized, and donor coordina- country's population is benefiting. tion meeting will be held few times a year chaired by the MoFTER Assistant Minister. Next Steps Although progress under the first solid waste management project was impressive, wild dumping remains a challenge in Bosnia and Herzegovina; numerous illegal dumpsites can still be found in many municipalities. These wild dumpsites contain various household, industrial, and hazardous clinical wastes and even animal carcasses. Clean-up and closure remains a high priority, but requires setting up functioning sanitary landfills that provide an alterna- tive for disposal. In light of the significant environ- mental improvement in participating areas, the Solid Waste Management Project was expanded through additional financing. A new project is being prepared to support the construction of six new sanitary landfills by the end of 2013. Expected impacts of this second project include an improved disposal management system and enhanced coverage of formal waste management services, improved ground water quality at disposal sites, higher citizen satisfaction with waste management services, and an increased cost recovery rate of participating utilities. IDA at WORK: Environment | 15 IDa at WorK: environment Vietnam's Mangrove Forests Fight Erosion, Improve Livelihoods Challenge Results Population density and growth combined with illegal Pressure on coastal mangrove ecosystems logging, wartime defoliation and over-exploitation of has been reduced, erosion has declined and natural resources, have put severe pressure on livelihoods have improved for coastal Vietnam's natural environment. Forest coverage communities. decreasedfromabout40%in1965to25%inthe mid-1990s. In particular, the rapid decline of Viet- Highlights: nam's mangrove forests has had a serious impact on · 4,662haofmangroveplantedinfullprotection the productivity of coastal fisheries and the rural zone; 983 ha in buffer zone. Combined with other economy of the Southern Mekong Delta. Mangrove forestry activities implemented by the government forests act as breeding grounds for aquatic organ- ofVietnamintheprojectarea,morethan95%of isms, a cleansing system for sediments and nutrients barren areas in the full protected zones have now in estuaries, and provide buffer zones against been reforested. typhoons and floods. However, low environmental · InCaMauprovince,areaoferosiondecreasedby awareness coupled with limited resources and 40% between 2000 and 2007; accretion area entrenched poverty prevented provincial authorities increased by 20%. from adequately protecting coastal wetlands in the · 2.3millionscatteredtreesalsoplanted. past. · 1,452poorhouseholdswererelocatedtonew settlements, with schools, clinics, roads, electricity Approach and new homes, improving their living standards · Theprojectadoptedacomprehensive,long-term and their social and economic opportunities two approach to the protection of coastal wetlands in years after resettlement. The reported poverty rate four Mekong provinces: Ca Mau, Bac Lieu, Soc among interviewed resettled households has gone Trang and Tra Vinh. In addition to planting trees to from 22% prior to moving to 12% in 2007. fight erosion, the project sought to tackle some of · Training,demonstrationfarmmodelsandmicro- the causes of environmental degradation. credit helped bolster livelihoods and expand · Theprojectestablishedafullprotectionzone opportunities. Formerly landless households (FPZ) along the coast and relocated households received well-built houses and secure tenure. out of the FPZ which is vulnerable to typhoons to 7,627 "red books" were issued to households in a buffer zone protected by dikes. It tried to the buffer zones under the project. In Soc Trang improve incomes in adjoining communities to province, all resettled households received reduce destructive practices through a combina- productive land in addition to houses. tion of resettlement activities, extension services, · Someinvestments(schoolrooms,musical vocational training, credit and social support. instruments,etc)targetedpoorKhmerminorities, · Theprojectalsointroducedpolicyandcontractual enhancing their social and cultural lives. measures that give local communities incentives · Biodiversityappearstoberecoveringfrompast to protect the coast's growing mudflats and disturbances with aquatic resources such as sea biodiversity. crabs and blood clams reappearing and increasing. 16 | IDA at WORK: Environment · Protectionandmaintenancecontractsinplacein allforestedareas(34,395haundercontractwith smallholders supported by the project and around 100,000 ha with State-owned Forestry Enterpris- essupportedbyGovernmentProgram661). Forest law violations along 470 km of shoreline considerablyreducedfrom1,757violationsin 2002 to 318 cases in 2006. · Forestrystaffgainedexperienceinplanting mangroves in challenging environments (outside protective dikes and off-shore), requiring ad- vanced planting techniques and taller trees. IDA Contribution · $31.8mlnIDAcredit.Denmark'saidagency Pressure on coastal mangrove DANIDAprovideda$7.3mlngrantfortechnical assistance. ecosystems has been reduced, erosion · Theinitialdesignoftheprojectwasoverly has declined and livelihoods have complex - it relied too heavily on technical assistance and resulted in delays. With less than improved for coastal communities. 10% of funds disbursed in the first three years (2000-2003), the project was restructured in 2004 to achieve its development goals in a changed context.DANIDA'stechnicalassistancewas reduced from $11.3mln initially to $7.3 mln. Training and poverty reduction activities were refocused to reach the poorest households and communes. · Afterrestructuring,theprojectwasalsomore effectively decentralized. This contributed to project success and increased the capacity of provincial authorities. IDA Contribution · Localauthoritiesarecommittedtocontinuing training and social activities for resettled house- holds to help them beyond the project's closure. · Inareaswherelandaccretionhasoccurred thanks to mangrove plantings, the next step is to consolidate land gains with new dykes and plant new lines of buffer trees to continue the process. · Experiencegainedinplantingtreesinchallenging environments should be especially valuable at a time when climate change puts coastal communi- IDA at WORK: Environment | 17 ties at greater risk of natural catastrophes. IDa at WorK: environment Soil and Water Conservation in India's Karnataka Watershed Challenge · Theprojectwasimplementedinthreephasesby SevendistrictsinKarnataka,India,werecharacter- the Watershed Development Department, along ized as drought-prone and dominated by rain-fed with other state, district and local non-government agriculture around a narrow range of two to five organizations working closely with participating crops. When the project began in 2001, average communities. annual household income for the nearly two million people who lived in the area was approximately Results US$222.Groundwateravailabilitywasbetweenthree The core program of soil and water conserva- and four months. Common lands were deteriorating tion works were completed on 270,000 ha of through poor management. Watershed development arable and non-arable lands, improving average was largely delivered through a top-down, non-par- crop yields and broadening crop diversity. ticipatory model, resulting in little social mobilization. Self-HelpGroupswereweakandunabletobuild Highlights: · Fromasampleofwellsmonitored,groundwater financial capital. The project, which closed in March levelshaveincreasedby15meters,18meters 2009, successfully demonstrated how an integrated and 27 meters respectively, across the three main watershed development model can address these agro-ecologicalzones.Groundwateravailability challenges. has improved to four to six months, giving farmers Approach greater choice of crops and in many cases, double · Theproject'sprimarydevelopmentobjectives cropping on arable lands. were to improve the productive potential of · Cropyieldshaveincreasedby25percentoverthe selected watersheds and their associated natural baseline, cropping patterns have shifted to higher resource base, and strengthen community and valued crops, and milk yields have been enhanced institutional arrangements for natural resource by15percent. managementinselecteddistrictsinKarnataka, · Averageannualhouseholdincomehasincreased India. byabout53%toapproximatelyUS$340.The · Projecttargetsincludedaddressingsoilandwater increase in average income has contributed to a conservation needs within a geographical area of reduction in migration by about 70 percent. Young 432,000 ha by introducing new approaches for men no longer had to leave the community to find community-based participatory watershed work. planning. · Theprojectachieveditstargetofestablishing 4,300 farmer groups and 6,600 new Self-Help 18 | IDA at WORK: Environment Groupstoimplementparticipatorywatershed management across 7,000 communities in 742 micro-watersheds.Newparticipatorymicro-wa- tershed planning approaches resulted in highly integrated micro-watershed plans being prepared by communities, with greater local ownership and commitment. · Self-HelpGroupsflourishedwithtrainingand revolving funds through project support, and mobilizedUS$5millioninsavingstohelpestablish small businesses. The majority of members are women. More than 60 percent of the self-help groups are linked to commercial financial institu- tions, leveraging additional credit for larger enterprise start-ups. Money-lenders are no longer Soil and water conservation works have a major force in these communities. been completed on over 270,000 ha, · Theprojectresultedinanewgovernmentpolicy for co-management of common lands in water- improving average crop yields by about sheds. Many positive lessons were learned that will have long-term impacts on improved natural 25percentandbroadeningcropdiversity. resource conservation and rural livelihoods. It has also helped strengthen decentralization. · Theproject'smonitoringandevaluationsystem showcased the application of cutting edge technology such as remote sensing, geographic information systems, and satellite communica- tions to watershed planning, implementation and assessment. · Theprojectwastherecipientoffiveprestigious nationalawards;NationalProductivityAwards 2007and2009;NationalWaterAward2007; EarthCareAward2008;andNational E-GovernanceAward2009. IDA at WORK: Environment | 19 IDa at WorK: environment India IDA Contribution Next Steps · Totalprojectcostattimeofapprovalwas · Theprojectlargelyachievedallprojectdevelop- US$127.6million,withIDAprovidingaUS$100.5 ment objectives. Through an integrated watershed million grant, the government providing US$14.3 and rural livelihoods approach, the project million, and beneficiary cash and in-kind contribu- improved soil and water conservation, agricultural tions amounting to US$12.8 million. After the productivity, and income for farmers. For the tsunami of December 2004, US$20 million in landless and women, the project provided support estimated savings from the original IDA grant were for income generating activities that can be reallocated to finance an emergency recovery sustained into the future through pooled savings programinTamilNadu. and access to commercial credit. · IDAplayedakeyroleinhelpingthegovernment · TheGovernmentofKarnatakaisreplicatingthe design a project to test new participatory ap- modelinseveralotherdistrictsthroughGovern- proaches for integrated watershed planning and ment of India watershed schemes. A similar implementation. More meaningful engagement project proposal for the six remaining arid, rainfed with communities is based on extensive capacity districtsinKarnatakaisnowunderconsideration building, social mobilization and group formation, for Bank financing, possibly as part of a larger and the use of thematic maps for participatory programmatic approach in several states, based watershed planning. The new model also draws in largelyonthelessonslearnedfromtheKarnataka non-governmental organizations as active part- project. ners. · ThecentralgovernmentNationalRainfedArea Authority is adopting features of the project's innovative monitoring and evaluation system for all government watershed programs throughout India. 20 20 | | IDA atat WORK: Environment IDA WORK: Environment IDA at WORK: Environment | 21 Printed on recycled paper 1818 H Street, NW Washington, DC 20433 USA www.worldbank.org/ida www.worldbank.org/sustainabledevelopment