73175 The World Bank’s GEF Program in East Asia and the Pacific Two Decades of Partnership in Support of the Global Environment The World Bank’s GEF Program in East Asia and the Pacific Two Decades of Partnership in Support of the Global Environment FOREWARD James Adams Vice President, East Asia and the Pacific The East Asia and Pacific Region’s GEF program has grown from a few small, mostly stand- alone projects in the early 1990s to a large, strategic program with about $500 million of projects both under implementation and in preparation in 2011. In the first years of the GEF, from 1991 to 1994, the Bank looked for opportunities to mobilize GEF resources in an opportunistic manner to “retrofit� clients’ regular Bank lending pipelines so as to align them more closely with global environmental considerations. As the GEF grew during the 1990s to become the global environment’s principal financing mechanism, the Banks’ country assistance dialogues and strategies were expanded to include GEF assistance programming. Simultaneously, the Bank’s East Asia and Pacific Region’s regular lending pro- gram became more global environment focused, with stronger emphasis on natural resource management, energy efficiency and renewable energy promotion, all of which were GEF strategic focii and offered more GEF co-financing opportunities. In this supportive context, the program grew rapidly. The Bank’s East Asia and Pacific GEF assistance strategy has responded to the changes in the resources allocation framework of the GEF, that imbued countries with greater decision-making control, by helping clients develop larger-scale, longer term strategic pro- grams targeting key global environment issues, informed and driven by national strategic interests and needs. The program has also grown in response to an expanding number of complex, global environment issues by tackling climate change adaptation and resilience, eco-city planning, improved sustainability of protected area systems, reducing the im- pacts of land-based pollution and promoting the sound management of persistent organic pollutants. As concern about the world’s global environment challenges continues to mount, the need for GEF assistance to help EAP countries address them remains high. This brochure pres- ents highlights of results of the 20 years engagement of countries within the Bank’s East Asia and Pacific Region with the GEF. We hope it encourages existing partners to maintain their engagement in the Bank’s East Asia and Pacific Region’s GEF program and compels potential new partners to join, so that the program may continue to play a key role in help- ing the Region’s client countries effectively respond to these critical challenges. 2 Rachel Kyte Vice President, Sustainable Development The World Bank has been working in support of conservation and the sustainable man- agement of natural resources for over 25 years. For the Bank, sustainable development is necessary to deliver on our mission to reduce poverty. At the heart of sustainable development is the health of the eco-systems that support economic growth and social development. Since the Bank first began to engage with clients on GEF incremental finance two decades ago, there has been much progress. The Bank’s partnership with the GEF has allowed us to help integrate the global environmental agenda into our country partnership strategies and lending programs. As this brochure highlights, in East Asia and the Pacific, as in other regions, the results have led to innovation, laid the foundations to scale-up investments through other financing sources and, often, stimulated larger transformational processes. The immediacy of climate change, however, combined with continued deforestation, over- exploitation of marine resources, biodiversity loss, and the degradation of water and land continue to challenge country development efforts. We need to move toward greener and more inclusive growth. By this, we mean growth that is climate-resilient, low-carbon, resource-efficient, and land-saving. This growth path is under-pinned by natural capital accounts that are included in countries’ national ac- counts, and productive livelihoods across diverse sectors are improved. It is this vision that guides the work of the World Bank in the lead up to, and beyond the Rio+ 20 United Nations Conference on Sustainable Development. The same path will also guide our ongo- ing partnership with the GEF. Thank you for your interest in our collective work for a bet- ter environment and poverty reduction. 3 INTRODUCTION Over the last twenty years, the East Asia and Pacific region (EAP) has achieved faster economic growth than any other region, with many of its countries significantly improving their quality of life. However, this growth has come at considerable local and global environmental cost in terms of worsening air and water pollution, depletion and degradation of natural resources and loss of biodiversity. And it has also exacerbated the region‘s significant contribution and serious vulnerability to the looming threat of rapid global climate change. Protecting the local environment and promoting globally sustainable development are priorities for the World Bank Group (WBG)1 in the region 2. Sharing this concern, since 1992 many EAP countries have partnered with the WBG to tap into Global Environment Facility (GEF) grants to help support projects that address the local and global environment in the focal areas of climate change, biodiversity loss, water and air pollution and toxic chemicals. Established in 1991 in the build up to the Rio Earth Summit, the GEF was the first major multilateral initiative to help developing countries address the world’s most critical global environment challenges and their local impacts. As of June 30 2011, the WBG has worked with EAP countries on a total of $950 million in GEF grants to help tackle priority global environment problems. These grants have helped leverage a massive $11.3 billion of World Bank and other resources to global environment investments. The resulting nearly $12 billion EAP/GEF program is the region’s largest externally-supported global environment effort over the past 20 years. Council Approvals (US$) in EAP Region, Council Approvals (US $) in EAP Region, by Country by Focal Area 1% Cambodia 57% China 17% Biodiversity 5% Global 58% Climate 11% Indonesia Change 2% Lao PDR 5% International Waters 2% Mongolia 11% Philippines 11% Multi-focal Area Projects 3% Paci�c Islands 2% Pops 2% Thailand 6% Vietnam 1 The World Bank Group is made up of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), its private sector affiliate, the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for the Settlement of Investment Disputes (ICSID). 2 Source: World Bank (2010), Wind of Change: East Asia’s Sustainable Energy Future; http://web.worldbank.org/ WBSITE/EXTERNAL/EXTMODELSITE/EXTREGIONMODEL/0,,contentMDK:22542658~pagePK:146736~piPK:226340 ~theSitePK:223232,00.html. 4 The WBG/GEF partnership is helping the countries of the East Asia and Pacific Region take the following essential global environment and sustainable development steps: • Adopt lower carbon development paths by accelerating energy conservation, renewable energy production, low carbon transport, and the development of energy- efficient cities. • Begin adapting economic development strategies and practices to the impacts of climate change. • Better manage protected areas and conserve agricultural and forest biodiversity. • Reduce pollution and over-exploitation of shared international waters. • Phase-out the production and use of toxic chemicals. This publication highlights key aspects of the East Asian and Pacific countries’ global environment work through the WBG/GEF partnership over the past two decades and looks to its future opportunities. Much remains to be done in support of the global environment, and the Bank remains committed to working with interested existing, as well as new, partners to contribute to the effort. 5 CLIMATE CHANGE: TARGETING SUSTAINABLE LOW-CARBON AND CLIMATE RESILIENT DEVELOPMENT In the East Asia region, meaningful results are emerging from the WBG/GEF’s long- standing partnership on climate change: demonstrable reductions in greenhouse gas (GHG) emissions are evident; significant scale-up of low carbon technologies is happening; and GEF-funded activities are being recognized as critical to mainstreaming low-carbon development into World Bank financed programs. GEF support has and will continue to play a catalytic role in stimulating the countries to engage in low-carbon and climate- resilient development. With this support, the countries of East Asia are undertaking strategic climate action in five areas: energy efficiency, renewable energy, low carbon transport, sustainable cities, and adaptation to climate impacts. These areas are explored in detail below. Energy Efficiency Many WBG/GEF-supported energy efficiency (EE) projects in the East Asia region have successfully institutionalized ways to achieve significant EE gains that promise strong returns on investment. The best results have been achieved when GEF projects have formed part of broader, long-term EE initiatives3, supported by strong government commitment and program financing from other sources. In such cases, GEF funding has been an ideal catalyst for introducing innovative ideas and supporting institutional development to make larger, long-term EE programs successful. Energy Efficiency Finance GEF-funded activities are playing a key role in helping local financing institutions develop their own EE lending products and business lines. Best results have been achieved when EE projects combine technical assistance with financing or risk mitigation support for early investment stimulation. For example, the IFC-implemented China Utility-Based Energy Efficiency Finance Program (CHUEE) provides credit enhancement tools and technical assistance to help local banks develop EE and renewable energy financing business. It brings financial institutions, utility companies, and suppliers of energy efficient equipment together to establish new financing models for EE, with a focus on expanding lending to small and medium enterprises. Through provision of public training, green credit and Equator Principle training courses, and completion of five industrial and regional EE opportunity studies, CHUEE has helped the China Banking Regulatory Commission (CBRC), the Chinese banking sector, other potential investors, and energy service 3 Areas of work have included: EE finance, market transformation, heating reform and building EE, industry/utility level EE, Energy Service Company (ESCO) development. 6 companies (ESCOs) and equipment suppliers to better understand the Chinese national EE market. The $16.5 million GEF investment in CHUEE helped three partner banks disburse $540 million in EE loans to 107 EE projects, mobilizing nearly $1 billion of additional financing and resulting in a global reduction of millions of tons of CO2 equivalent. Innovative GEF Support to a More Efficient and Resilient Built Environment GEF funding has also helped EAP countries demonstrate and adopt policies to promote more energy efficient built (city) environments, by enabling countries to tap international best practice and experience. The ability to support both investment and policy solutions is one of the unique strengths of the GEF-World Bank partnership. Using GEF resources, the Bank has helped China pioneer a comprehensive package of building EE improvements, district heating use measurement and billing reform. Through these initiatives, the China Heat Reform and Building Energy Efficiency Project is achieving substantial and sustained energy efficiency gains in urban residential buildings and central heating systems in China’s cold climate regions. The project is improving building thermal integrity, heat supply system operational efficiency, and giving consumers the ability to manage their home heat consumption for the first time. This is achieved by a combination of heat metering, cost-based heat pricing and consumption-based heat billing. The government plays a critical role providing policy direction to localities, encouraging reform and development of new technical approaches, and widely disseminating results. Another part of the built environment that can be made more efficient and cost-effective through innovative policy reforms is energy efficiency of the appliance industry. Both policy and demonstration investments are necessary to have a transformational impact. The Philippines Chiller Energy Efficiency Project is reducing GHG emissions by replacing 7 hundreds of inefficient chillers in building refrigeration and air-conditioning systems. To provide an added incentive, the project is registered with the United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) Program of Activities (PoA). The GEF investment is building the capacity of chiller owners, ESCOs, and commercial financing entities to allow for replacement of inefficient chillers and encourage energy efficiency market transformation, while establishing capacity for future financial flows from the sale of CDM Certified Emission Reductions to continue to financially sustain the replacement program. Another promising EAP/GEF energy efficiency focus is to encourage market transformation in EE equipment manufacturing. Key electrical appliances, particularly for lighting, air conditioning, refrigeration and motive power, account for a high share of energy use in most EAP countries. So penetration and market uptake of high-efficiency models can result in large energy savings. Effective program designs have required upfront assessment of in-country market characteristics, followed by product testing and labeling to provide standardized and credible energy use information; introduction of appliance standards to encourage marketing of high-efficiency products; and subsidy programs to help customers cope with higher costs of efficient appliances until the market adjusts to lower costs and increases supply. Significant opportunity also exists for the introduction of enhanced enterprise energy management systems in industry. The GEF-funded Vietnam Clean Production and Energy Efficiency project is an example of this approach. It aims to strengthen the capacity of the Government and other key stakeholders to improve, upgrade, and optimize opportunities to increase energy saving and efficiency in key industrial sectors, in line with the country’s National Energy Efficiency Program (VNEEP). The project will provide technical assistance to key stakeholders in the EE market, particularly industrial sector and energy service providers, to develop technical action plans and policy support mechanisms to attract and enable financing of energy efficiency programs. This will help strengthen energy service providers’ capacity to offer services, such as audit and assessment, monitoring and verification of savings, and consumption benchmarking. And it will establish an enabling pre- investment environment to engage such Power lines cover the cityscape: Hanoi, Vietnam (photo source:WB) industry partners as financial institutions, industry associations and non-profit groups. 8 Renewable Energy Increased renewable energy (RE) production is crucial to advancing a de-carbonized power mix in East Asia. The region is rich in renewable energy resources and many of its countries have already adopted ambitious RE promotion policies and targets (Figure 1). RE is projected to meet up to 40 percent of the region’s power demand by 20304. Given the enormous scale of investment required in developing and adopting renewable energy systems, it became clear early on that GEF resources - even when blended with World Bank loans and credits - were insufficient to help the countries of the world achieve their renewable energy goals by simply subsidizing investments. Instead, GEF finance has focused on helping countries adopt market policies to direct local capital from user tariffs into the financing of renewable energy on a more sustainable, longer term basis. World Bank-GEF projects have helped countries design and develop renewable energy policy frameworks—such as feed-in tariff systems—to enable them to meet their renewable energy goals and develop their renewable energy industries, while tapping into the in-house global expertise of Bank energy and environment sector staff. The GEF has played a valuable role in RE development in the region as the largest source of Bank-implemented grant financing for RE, supporting 13 projects totaling approximately $146 million in GEF resources and several billion dollars in co-financing since 1991. Figure 1. Many EAP countries have adopted ambitious RE policies and targets 4 Source: World Bank (2010), Wind of Change: East Asia’s Sustainable Energy Future. 9 Grid-Connected RE Support WBG/GEF cooperation has supported the development of grid-connected RE policies as a priority area to promote renewable energy. For example, GEF support was the catalyst for Indonesia’s Geothermal Power Development Project. In this initiative, the Government has utilized GEF financial support and best practice information provided through the World Bank to develop an ambitious geothermal development program that will tap Indonesia’s world class geothermal resources. The project has introduced efficient geothermal project transaction procedures and practices, and strengthened the Government’s capacity to support geothermal development. It is projected to leverage $700 million of geothermal energy investment and to create approximately 350 MW of new geothermal energy capacity, which is expected to eliminate 60 million tons of CO2 emissions over the life of the capacity. Initial GEF financing has also helped mobilize further investment resources, such as an IBRD loan, Carbon Investment Facility Clean Technology Funds and sale of CO2 emission reductions under the CDM. Indonesia Geothermal Development Program GEF and donor Programmatic IBRD CTF grants Carbon Finance • Enhance policy Long-term Concessional Streamlined and regulatory financing for financing for process to frameworks geothermal geothermal to increase • Facilitate buy down the revenues to transactions costs improve financial for geothermal viability investments • Build local capacity 10 In parallel, Phase II of the China Renewable Energy Scale-Up Program (CRESP II), targets moving RE development in China from initial scale-up to sustainable growth scale-up (see figure below), and demonstrates how GEF funds can be used to move a country’s energy development path toward long-term sustainable low-carbon growth. This initiative follows its precursor, the initial China Renewable Energy Scale-up Program (CRESP), which helped China formulate its RE feed-in tariff policy. Once the policy was adopted, the project supported the development of two wind farms, a biomass power plant, and a portfolio of small hydropower projects. This program helped create one of the fastest growing markets for wind and renewables in the world. RE small percentage RE large share Sector reform 15% incentives manageable cost matters Sustainable Scale-Up Scale-Up: More GW in RE competes 8% a short time in open market Cost reduction • Efficiency • improvement Develop and • Smooth grid • implement policies integration Build up domestic • RE industry 2005 2010 2015 2020 In 2010, thanks to WBG/GEF support, China ranked first globally in total RE and small hydro installed capacity and solar water heating capacity, second in wind capacity, and ranked high in biomass installed capacity. Off-Grid RE Support With WBG/GEF support, countries in the EAP region have also implemented several projects to increase energy access through off-grid RE, a cost-effective option, particularly in rural areas. In Laos, Mongolia, Cambodia and Vietnam, increasing access to electricity has promoted growth, development and poverty reduction. Specifically, GEF funding has: • supported establishment of affordable RE delivery models to dispel consumer, bank and government perceptions of high risk, which had constrained off-grid RE investment; • provided vital information and experiences about best RE investment practices, including technologies, business models, and subsidy systems; • helped remove barriers at the institutional and regulatory levels; • contributed to the establishment of necessary policy frameworks; • helped build financial, information and institutional capacity; and • ensured the availability of quality and maintenance services. 11 Rethinking Transport to Tackle Climate Change The transport sector is one of the most challenging sectors in which to promote environmental sustainability and reduce GHG emissions. Despite the challenges, the GEF has provided support through the World Bank to a number of innovative projects to reduce traffic congestion, improve traffic management, and create, new, cost-effective public transport modes like bus-rapid transit (BRT) systems. Used strategically, GEF support has served to broaden the policy discourse and scope of investment programs in the sector, promoting upstream policy dialogue, frontier innovations, adoption of global best practice and knowledge sharing. Support for Bus Rapid Transit systems The China-GEF-World Bank Urban Transport Partnership Program (CUTPP) supports development of a coherent national approach to sustainable urban transport, with activities in 14 different cities. Approved in 2008, the CUTPP’s $21 million GEF grant has leveraged over half a billion of investment dollars, including approximately $200 million in IBRD funds. The project has stimulated collaboration among concerned national ministries, such as the National Development and Reform Commission, which plays a key role in urban transport, but for whom the sector had fallen off the radar. In so doing, it has created an innovative ministerial platform on urban transport policy and financing issues. The CUTPP has also transformed the Bank’s role Public transport busway, China. (photo source: Infrastructure Unit, in China on public transport, EAP Region, WB) particularly for BRT systems. Since the CUTPP’s launch, cities from nine provinces have submitted grant proposals for low-carbon public transport planning and project preparation work, including requests for BRT support in seven cities. The GEF brand has been an important tool in the process of moving BRT plans forward, helping to garner broad political buy-in and alleviate potential controversy that may have arisen from the removal of road space for mixed traffic uses, and leveraging funds for investment and WBG lending proposals. 12 The GEF CUTPP is a notable low-carbon urban transport success. It has raised the profile of the issue to the level of a national priority, involved relevant institutions which had been under-engaged, and exposed decision-makers to international best practice. WBG/GEF support for Green Freight The complementary GEF-financed Green Freight Project in China supports the adoption of technologies that increase efficiency in road freight systems through tires, aerodynamics, and driver behavior diagnostic systems, using technologies that are proven in many OECD countries, but new to China and many developing countries. GEF support for the project concept has helped catalyze this path-breaking initiative. The planned demonstration project will increase confidence in the performance of proven EE freight transport technologies, increase the availability of the technologies in the Chinese market, and increase customer demand for more efficient freight transport technologies. Bringing Global Best Practice Home GEF engagement has helped introduce national urban transport leaders to Truck equipped with energy efficient technologies. (photo source: Infrastructure Unit, EAP Region, WB) innovative solutions being applied in other urban centers. Vietnam’s Hanoi Urban Transport Project, where IDA financing is complemented by a GEF grant that supports BRT development is a good example of this. Although Hanoi’s decision makers were initially hesitant to endorse a BRT system, GEF funding allowed for experience exchange with successful BRT programs in Latin America, a south-south interaction which convinced Hanoi’s decision-makers of BRT’s merits. Without GEF support, the BRT concept would not have moved forward in the time-frame that it has. 13 Building Sustainable Cities Cities currently account for about two-thirds of the world’s annual energy consumption and about 70 percent of the world’s GHG emissions. In the coming decades, urbanization and income growth in developing countries are expected to push this share even higher. Urban growth will be particularly notable in East Asia, whose urban population is expected to rise from 46 percent to 60 percent by 2030. In the face of this trend, the region must meet increasing urban infrastructure demands in a sustainable manner, a challenge which is also an unprecedented opportunity to plan and invest in sustainable urban development following a lower carbon growth path. In this context, GEF financing is supporting urban energy efficiency, low-carbon transport, and integrated eco-city development. GEF’s contribution to low-carbon city development includes technical advice on policy, regulation, and institutional issues, capacity building for policy-makers and technical staff, and demonstration projects involving more advanced technologies and innovative approaches. In 2010, the GEF Sino-Singapore Tianjin Eco-City (SSTEC) project was approved to help the Sino-Singapore Tianjin Eco-City become a resource efficient and low-carbon emission city. The project, with a GEF grant of $6.16 million, includes three components: Sino-Singapore Tianjin Eco-City Project (SSTEC) Located on non-arable land and deserted salt pans, the SSTEC is designed to be- come a model eco-city replicable by other Chinese cities. Key Performance Indicators (KPIs), to be achieved by 2020, include: • KPI 5: Carbon emissions per unit of GDP: ≤150 tons C per one million $ GDP • KPI 7: Proportion of green buildings: 100 percent • KPI 12: Proportion of green trips: 90 percent • KPI 13: Overall solid waste recycling rate: 60 percent • KPI 19: Renewable energy usage: 20 percent The master plan also calls for high population density, transit oriented development, a mixed land use plan, an explicit local working/living ratio and affordable housing. A prelimi- nary estimate shows that if SSTEC can successfully implement its master plan and achieve its stated KPIs, the city could save about 393,000 tCO2 per year. 14 (a) technical assistance, capacity building, and software and equipment for implementation of the master plan; (b) technical assistance to support development of the public transport system; and (c) a green building pilot investment and related technical assistance. This project is the World Bank’s first eco- city operation and the GEF’s first “low- carbon city� project promoting energy efficient and low carbon urban systems. Project preparation has already generated important lessons, such as how to address safeguard issues, which are valuable for the preparation of other similar projects. A good deal of attention will focus on the project’s results, as many cities in China and around the world seek experience and lessons from eco-city development. The Bank is also providing advice to the Changning District in Shanghai to support the city’s effort to design a pilot low-carbon district. The work is focused on transferring international knowledge and best practices, and implementing most effective, least cost options to reduce carbon emissions based on application of McKinsey GHG abatement analysis. A GEF project on Green Energy Schemes for a Low-Carbon City is under preparation between the WBG and Shanghai to pilot green energy schemes by retrofitting existing buildings, piloting new zero-emission buildings, and supporting a low-carbon energy mix. Green transport, including new business models for electric vehicles and better connections between public transport modes, would also be considered. Adaptation in East Asia The Intergovernmental Panel for Climate Change Fourth Assessment Report (IPCC AR4, 2007) states that climate change is likely to have significant impact in East Asia’s Island States. Increases in surface air temperatures observed across the region have already contributed to climate variability: over the past twenty years the frequency of more intense rainfall events has increased, causing severe floods, landslides, mud flows and storm surges. With over half of its population residing in coastal regions or low lying islands, the region is very vulnerable to climate change impacts. 15 With GEF support, the World Bank began supporting climate change adaptation projects in the late 1990s, initially with Kiribati, China, and Philippines. Today, new projects are under preparation in Kiribati, Solomon Islands, and Vanuatu to implement climate-resilient measures in the agriculture and water sectors and in coastal areas, to make livelihoods more climate-resilient, and to mainstream adaptation into national and sector policy and planning processes. Approved GEF climate change adaptation grants to date total over $20 million, complemented by over $100 million in co-financing. GEF support5 has allowed financing of innovative actions to help Governments align priorities to encourage mainstreaming climate change adaptation assessment and planning into key ministry programs. The World Bank and partner countries have undertaken adaptation projects, based on the principal of ‘do no harm’, as a means to learn what will render future development more resilient in the face of anticipated climate change. Lessons generated from GEF investments in adaptation in EAP to date have underscored the fact that adaptation planning requires: a) A multi-faceted process – developing decision support tools, strengthening the enabling environment, identifying and prioritizing risks and opportunities, building actions on the ground: none can be taken in isolation. b) Adopting a long term vision: a phased, programmatic approach, rather than discrete projects, yields greater chance of sustainable success. c) Addressing short term vulnerabilities that can lead to long term risks early on (e.g. it is not necessary to wait on conclusive results from models of long term change projections). 5 Adaptation-related work has been supported by the GEF Strategic Priority on Adaptation (SPA), a US$50 million funding window created to support integration of concrete climate change adaptation assessment and planning into national policy and sustainable development discourses, and more recently, is financed through the Least De- veloped Countries Fund (LDCF) and Special Climate Change Fund (SCCF). 16 The China Mainstreaming Adaptation in Irrigated Agriculture Project, which has received $5 million from the SCCF, made investments under the Bank’s Irrigated Agriculture Intensification Project more resilient to climate change and allowed for climate risk management to be mainstreamed into national agricultural planning. The project has enhanced adaptation in agriculture and irrigation water management practices through awareness-raising, institutional capacity strengthening, and demonstration activities in the 3-H Basin, one of China’s prime agricultural areas, which produces half of the country’s grain output. Adaptation measures have focused on agricultural production and practices, and on irrigation, water management and use. Kiribati, one of the world’s most vulnerable countries to climate change, launched the Kiribati Adaptation Program (KAP) in 2003 with World Bank/Japanese assistance. The program contributed to development of the country’s National Adaptation Programme of Action (NAPA), which laid the groundwork for a long-term program to assist the island nation in managing climate change impacts. In 2006, the Bank began implementing the Kiribati Adaptation Project II (KAP-II), a pilot/demonstration project using funding mobilized through the GEF. KAP III, the program’s third phase, now under implementation with a grant from the Least Developed Countries Fund (LDCF), will help improve the country’s resilience to climate change impacts on freshwater supply and coastal infrastructure, by reinforcing best practices in designing and implementing adaptation measures in water and civil works and emphasizing community consultation and participation in the process. Adaptation has become widely accepted as a development issue. It nevertheless, remains a nascent issue in many East Asian countries. Significant benefits can accrue from transferring good climate resilience practices between countries and across regions. The Bank’s demonstrated experience across the development spectrum, and comparative advantage in building strong enabling environments linked to on-the-ground development investments, make it well placed to support clients on climate change adaptation. 17 In the coming years, the Bank will continue to seek funding under the various GEF adaptation windows. The goal will be to help client countries in the region further their mainstreaming agenda, implement practical adaptation options to make investments more climate resilient, promote innovative approaches such as ecosystem-based adaptation, seek further synergies with disaster risk reduction, and better exploit the synergies between climate change mitigation and adaptation. Results and Looking Forward The World Bank and GEF have now been engaged with countries of the East Asia and Pacific region in an evolving and mutually beneficial partnership on climate change for twenty years.6 By promoting climate-friendly energy sector reform and the scaling up of low-carbon investments, the GEF has become a key catalyst for the adoption of low- emission development paths in the EAP region. Results include: • Adoption of renewable energy targets and supportive policies, such as feed-in tariffs. • The transfer of energy efficient technologies, including coal boilers and BRT. • Contributing to reducing the cost of PV panels by 40% in the global market in the past 5 years, due to Chinese cost-cutting. The GEF is a valuable strategic financing mechanism for helping initiate the transformation of energy markets, policies and practices in developing countries toward a more low- carbon and carbon-resilient future. The World Bank, as one of the founding Implementing Agencies, is in a unique position to blend GEF financing for technical assistance and knowledge sharing into its investments, so as to harness this potential. 6 Laying the Foundation for a Low-Carbon Future: The World Bank-GEF Partnership; May 2010; The World Bank. 18 PROTECTING AND CONSERVING BIODIVERSITY East Asia, home to five of the world’s most mega-diverse countries7 and a number of globally recognized biodiversity hotspots8, is a region teeming with vast and diverse terrestrial and marine areas. Today, these areas face habitat loss and fragmentation, over-exploitation, pollution from land-based sources, invasive alien species, and climate change impacts, threats which endanger the region’s potential for sustainable growth and development. Reflecting the countries’ biodiversity conservation assistance priorities, sound biodiversity conservation practices and the GEF’s focal area strategy, EAP’s GEF biodiversity conservation program has focused on: (a) strengthening national protected area systems; (b) conserving biodiversity in agricultural and forest landscapes; and (c) sustainable management of inshore marine biodiversity. The worsening plight of Asia’s world- renowned tigers has also prompted recent steps to help countries reduce illegal wildlife trade and to support the Global Tiger Initiative through tiger habitat conservation projects. Support for Protected Areas Protected areas (PAs), the cornerstones of most national biodiversity conservation strategies, have been an important focus for GEF investment in East Asia. WBG/GEF- funded projects in the region have invested heavily in this sector since the early 1990s, helping China, Mongolia and Vietnam strengthen the management of their existing reserves, and supporting the design, establishment, and operation of new conservation areas in Cambodia, China, Indonesia, Laos, and the Philippines. Many of these projects have promoted greater participation and involvement of local and indigenous communities in PA management, mapping community use rights and establishing co-management regimes and local frameworks to manage forest and marine resources. In attempting to reconcile conservation with the legitimate needs of communities, many WBG/GEF-funded projects have been designed as integrated conservation and development projects (ICDPs), geared to provide alternative livelihoods and reduce pressures on PAs and natural resources. Experience with ICDPs has shown that, while successfully providing benefits to people and parks, a good number have struggled to fully reach either their conservation or development objectives due to unsustainable economic pressures. Strong governance, enforcement of legislative policies and regulations, and active stakeholder engagement and commitment, all of which have been demonstrated to effectively counter such pressures, must be put in place. 7 China, Indonesia, Malaysia, Papua New Guinea and the Philippines 8 Indo-Burma, Mountains of South-west China, Philippines Sundaland, Wallacea, the Polynesia-Micronesia Hotspot and, the great wilderness area of New Guinea 19 In Sumatra, Indonesia, a WBG-GEF ICDP project, the Greater Berbak Sembilang Integrated Coastal Wetlands Conservation project, implemented by the NGO Wetlands International, worked closely with the provincial government to establish the 205,000 hectare Sembilang National Park. Together with the adjoining Berbak National Park, Sembilang protects some of Sumatra’s last remaining lowland forests, including large tracts of swamp forest and the most important mangroves in western Indonesia. Improved protection helps conserve large mammals including tigers, and tapirs, as well as migratory birds and breeding populations of rare storks. In tandem, this project has also helped benefit the local economy, as the region’s mangroves are major spawning and nursery grounds for inshore fisheries. Innovative Financing for Conservation and Development Financing recurrent costs is a key challenge in national park and PA conservation, as revenues are usually modest and the (critical) support of local communities often depends on being able to provide alternative benefits and sustainable livelihoods for those poor communities living in and around PAs. In response, the WBG has helped to establish a variety of protected area conservation trust funds to provide a steady stream of income, often catalyzed by GEF resources. In Vietnam, most PAs struggle to meet operational costs. The Vietnam Conservation Fund (VCF) is a sinking fund designed to cover supplementary operational costs by providing annual grants of $20,000-25,000 to improve management in special use forests (SUFs) of high biodiversity value. These grants support engagement with local communities, negotiation and drafting of co-management agreements, environmental education and awareness, habitat and species management, implementation of laws and regulations for SUF management, capacity-building, management planning and ecological monitoring, and general operational costs. Taimen (Hucho taimen) caught in the Uur River (Northwestern Mongolia), tagged and released. (photo source: Ojensen at en.wikipedia) 20 In Mongolia, the IFC-GEF Conservation of the Eg-Uur Watershed project promoted ecotourism through low-impact catch and release fly-fishing of the world’s largest salmon, the taimen. The project established a partnership among local communities, government institutions and tourism companies to establish the Taimen Conservation Fund, to treat wildlife as a locally managed concessionable natural resource. This enabled local communities to maximize economic returns by supporting community-based initiatives in sustainable land and resource use, including through a GEF-initiated natural resource user fee system. Mainstreaming Conservation in East Asian Forests Beyond park boundaries, WBG/GEF work in the region promotes sustainable biodiversity use in ecosystems and buffer zones through sustainable land management, reforestation and regeneration of watersheds and pastures, improved forest management, and support for community livelihoods through sustainable harvesting of timber and forest products. Protecting Forests through A farmer in Guizhou, China Sustainable Management (photo source: International Food Policy Research Institute (IFPRI) East Asia houses some of the world’s richest and most diverse forests, and WBG/GEF funding has focused on their conservation and sustainable use. Several projects have recognized linkages between mountain and forest ecosystem management and ecosystem services provided by forested watersheds, such as clean water and erosion and flood control. In China, the Natural Forest Protection Program was designed to protect natural forests and reduce the vulnerability of downstream villages to flooding. 21 Village Information Center on Coral Reef Education, Sulawesi, Indonesia (photo source: M. Hatziolos, WB) Marine Biodiversity Conservation and Sustainable Fisheries Marine reserves can renew depleted fish stocks in a matter of years when managed collaboratively with resource users as part of multi-use marine protected areas (MPA). Accordingly, in East Asia the WBG has supported community-managed PAs, strengthening MPA management, initiating public-private partnerships and establishing national networks. In Samoa, since the WBG/GEF-supported Aleipata and Safata MPAs were planned and established by village committees, the stock of fish and turtles and the health of coral reefs and mangroves have substantially improved. In Indonesia, many coral reef ecosystems and small-scale reef fisheries are so over-exploited that the only way to increase their value is to protect critical habitats and reduce fishing. Investments through the GEF-funded WB/Government of Indonesia COREMAP program, 22 Marine PA in Biak, Indonesia (photo source: M. Hatziolos, WB) now nearing the end of its second phase, are helping establish community-managed no- take reserves within larger Marine Conservation Areas through participatory planning, legal mandates, community micro-finance and technical assistance to protect valuable coral reefs and help restore depleted fish stocks. Building on this success, a third phase is being planned to extend COREMAP to coastal districts across western Indonesia, empowering communities and strengthening local governments to manage coral reefs for the multitude of benefits and services they provide, from meeting livelihood and nutritional needs, to building community wealth and protection from climate change impacts. Protecting Flagship Species and Their Eco-systems Many forests in Southeast Asia suffer from overhunting, resulting in wildlife populations being severely reduced or even locally extinct. Such declines affect not only the species themselves, but also the dynamics of forest ecology and the livelihoods of the rural people who depend on them. The wildlife trade is often linked to weak governance and poor law enforcement, an issue that the Bank has been addressing through the Forest Law Enforcement and Governance (FLEG) initiative. The WBG/GEF supports measures to address illegal wildlife trade through a variety of projects, with specific action for one charismatic species, the tiger. The Tiger Futures project supports capacity building in Cambodia, Indonesia, Lao PDR and Vietnam to help stop illegal trafficking of tiger parts across their borders. Another wildlife conservation effort, the Global Tiger Initiative, is also expected to protect tiger populations and help to reduce trade in other species (see sidebar). 23 Global Tiger Initiative (GTI) Poaching, illegal trade, and habitat loss have pushed tigers to the verge of extinction: today only 3,500 wild tigers live in their natural habitats in East Asia’s tiger range countries. The GTI is a global partnership to build a global vision for tiger conservation and work on a range of technical areas to reverse decline of tigers and double their numbers by 2022. The GTI includes improved park management, ‘green’ infrastructure development, sustainable financ- ing mechanisms, measures to reduce demand for tiger parts; wildlife crime enforcement and wildlife-human conflict resolution; government capacity-building for response to illegal wildlife trade; and science-based management of tiger landscapes. Global Tiger Initiative (Bruno Laporte, World Bank) 24 Expanding Horizons Improving the sustainability of PA systems The Tenth Conference of the Parties of the Convention on Biological Diversity (October 2010) adopted a resolution to extend the PA system, globally, to protect 17% of terrestrial systems and 10% of marine systems. Specific opportunities for intervention to improve the sustainability of PA systems in EAP include: • generation of sustainable finance for PA management costs; • effective protection of representative ecosystems and threatened species; and • capacity building and promotion of different governance models, including indigenous and community conserved areas (ICCAs). The mainstreaming of conservation in production landscapes/seascapes and sectors is also a priority for the GEF, where GEF support can: • strengthen policy and regulatory frameworks, including spatial land-use planning that incorporates biodiversity and ecosystem service valuation; • establish an environment conducive to payments for ecosystem services; • support policy and institutional arrangements to prevent and manage invasive species; and • improve certification, training for farmers and resource managers, and access to financing for entities working to produce certified goods and services. 25 Support for Climate-Related PA Initiatives Natural ecosystems and PAs can play an important role in strategies for adaptation to climate change, by integrating resilience management measures to create climate-resilient PA systems. In China, WBG/GEF-supported projects help maintain and restore carbon stores, avoid deforestation and introduce improved protection and management of grasslands. Lessons emphasize that the benefits possible from payments for ecosystem services, especially carbon storage and sequestration, could be expanded to leverage both GEF and non-GEF resources. There is also considerable scope in the EAP Region to solicit GEF funding for ecosystem-based approaches to adaptation, including integration of PAs and improved management of natural habitats and resources as part of long-term strategies to help countries adapt to climate change. Such strategies could include protection of coastal and swamp forests, mangroves and wetlands to enhance coastal protection, improve flood control and protect fisheries; improved management of fragile mountain ecosystems and watershed forests to safeguard water supplies; and, more sustainable agriculture through promotion of rotational grazing management, agro-forestry, management of invasive species and improved crop regimes, including conservation of traditional crop varieties. The GEF resource allocation system provides flexibility to certain Pacific nations and Timor-Leste, which could be used to promote ecosystem-based approaches as part of national mitigation and adaptation strategies. Results The East Asia and Pacific Region’s GEF co-financed biodiversity program has had some notable successes, including, • Pioneering community participation in protected area management and benefit- sharing; • Establishment of community-supported in-shore marine protected areas (Vietnam and Samoa); • Demonstration of cost-effective compensation schemes for displaced forest workers; and • Introduction of state-of-the-art protected area status monitoring and management methods. 26 INTERNATIONAL WATERS IN EAST ASIA The seas of East Asia are comprised of six large marine ecosystems interconnected by natural processes, ocean currents and shared living marine resources. These waters are under mounting pressure from the region’s rapid increase in population and industrialization. A source of livelihood for millions of inhabitants of the region, and globally significant in terms of the marine biodiversity they contain, the impacts of their degradation are regionally and globally significant. In response, the WBG, in partnership with the GEF, has helped the countries of East Asia and the Pacific design and implement 14 projects, of which 7 have been completed. The projects focus on two key challenges: (a) reducing land-based marine pollution, primarily through better waste management; and (b) sustainable management of shared river basins. Six projects have been implemented in China, one each in the Philippines and Vietnam, and three at the regional level. A total of $3.8 billion has been mobilized, with over $120 million in GEF grants, $1.3 billion from IBRD/IDA and $2 billion from other sources, including public sector financing. Reducing Land-based Pollution Through the GEF’s Strategic Partnership operational modality, the WBG has helped East Asian countries to take a more aggressive and coordinated regional approach to tackling land-based pollution reduction, particularly through the regional Partnership in Environmental Management for the Seas of East Asia (PEMSEA)9. The WB-GEF Partnership Investment Fund for Pollution Reduction in the Large Marine Ecosystems of East Asia (the Fund), which is co- financed by an $80 million GEF grant, is mobilizing IBRD/IDA financing of waste management investments to reduce biological oxygen demand (BOD), nitrogen (N) and phosphorus (P) pollution, and disseminating best practices and lessons learned, in collaboration with PEMSEA. The Fund grant will be disbursed in three tranches, of which the first totals $35 million. To date, 7 waste management projects have been co-financed by the Fund. Demonstrating Innovative Waste Management Technologies Another initiative financed by the Fund, the China: GEF Ningbo Water and Environment Project is demonstrating an innovative wastewater treatment technology – constructed wetland treatment – to reduce land-based pollution in the seas of East Asia. Constructed wetlands provide advanced treatment to effluents from conventional wastewater treatment plants. The treatment systems consists of shallow ponds or channels that have been planted with aquatic plants, and rely on microbial, biological, physical and chemical process to treat water. 9 For more information about PEMSEA, visit: http://beta.pemsea.org/ 27 In Vietnam, the Fund-financed GEF-Coastal Cities Project World Bank-GEF Ningbo/Cixi Wetland provides for construction of a Project; (photo source: Li Haisheng) chemically enhanced treatment plant to reduce the discharge of pollutants from the City of Quy Nhon into the Ha Thanh River and the Thi Nai marine lagoon. This new technology will introduce a higher efficiency in the removal of BOD and nutrients (N and P) from wastewater and reduce the space requirement for secondary treatment. Supporting Policy and Institutional Reforms Targeting barrier removal, the Philippines: GEF – Manila Third Sewerage Project provides support for implementing policy and legal reforms aimed at removing the institutional, financial and technical barriers that limit investment in pollution control in metropolitan Manila in order to promote new and efficient investments in facilities that reduce land- based pollution of the East Asia seas. In addition to promoting innovative, simple and effective wastewater treatment techniques, the Project will assist in developing and testing innovate financing arrangements to attract private investment in the sewage and sanitation sector, improving the environmental user fee system and implementing market- based incentives. Promoting Replication To leverage impact of Fund-supported work, the Bank and PEMSEA separately and jointly disseminate lessons learned, including best practices, through networks linked to PEMSEA and the GEF. This is intended to lead to large-scale replication, to significantly reduce land-based pollution in the seas of East Asia. Fostering Intergovernmental Partnerships for the Management of Shared River Basins Under the regional Fund-financed Mekong River Basin Water Utilization Project, Cambodia, Lao PDR, Thailand and Vietnam worked with the WBG to establish shared procedures to sustainably manage the Mekong Basin, including equitable water use, aquatic life protection and ecological balance. 28 Two other GEF-funded projects, though not financed under the Fund, also serve to foster intergovernmen- tal partnerships in the region: The Marine Electronic Highway Project assists the government of Indonesia, Malaysia, the Republic of Singapore and representatives of some of the large commercial ship- ping lines that use the Straits of Malacca and Singapore, to collective- ly decide upon the establishment of Results a marine electronic highway, for the length of the two straits, as a means Although it is still fairly young, EAP’s GEF of reducing the risk of ship collisions international waters program is already and groundings, and thereby mitigat- producing impressive results in the areas of: ing the consequent negative environ- mental impacts that such incidents • Waste management technology cause. transfer and accelerated investment; • Regional collaboration in The Livestock Waste Management management of shared water Project brought together Thailand, systems; and Vietnam and China in the region’s • Environmental risk reduction in first large-scale initiative aimed at marine transport. addressing land and water-based pollution associated with industrial- Looking Forward scale livestock production. Working in collaboration with livestock pro- Based on a stocktaking report presented ducers, the project raised awareness, at the October 2010 PEMSEA Congress, demonstrated cost-effective pollution agreement was reached on a strategic reduction measures and strength- partnership with the GEF for sustaining the ened and promoted more effective Large Marine Ecosystems and coasts of the enforcement of related environmental Seas of East Asia. In addition to enhancing laws and regulation. In Thailand, the efforts to reverse coastal pollution (the project also tackled the issue of GHG Brown Agenda), the partnership will emissions by successfully designing a promote sustainable fisheries and reducing swine waste to biogas project, eligible the loss of coastal marine habitat (the Blue for carbon finance revenue through Agenda). Climate change impacts and the Clean Development Mechanism. climate variability, viewed as cross-cutting issues, will also be addressed by building ecosystem resilience into management of both brown and blue agendas, reflecting the concerted efforts of the regional partners. 29 The East Asia and Pacific Region depends heavily on its marine environment, relying on it as a major economic resource for fisheries and aquaculture production, as well as natural heritage and biological diversity for the significant share of the world’s coral reefs and mangroves it harbors. Human pressure on marine and coastal resources remains very high, making it imperative that these resources are managed sustainably. EAP’s GEF international waters program has been and can be a catalyst for regional collaboration, innovation and accelerated investment in pollution reduction, all of which are vitally needed to ensure that the region’s shared water bodies continue to support the many millions of people who depend on them for their livelihoods and survival. A new WBG/GEF partnership program has been approved to promote scaling-up investments for sustainable development of the large marine ecosystems of East Asia and the Pacific their coasts. The program will address continuous stresses on the environment and their regional significance, with a view to improve livelihoods of local populations through pollution reduction, promotion of sustainable marine fisheries, and adoption of integrated coastal zone and ecosystem-based management strategies. 30 SOUND MANAGEMENT OF CHEMICALS FOR BETTER HEALTH, AND GLOBAL IMPACT Over the last decade, the relative share of world production of chemicals has Canadian POPs Trust Fund (CPTF) increased markedly in developing countries. This trend will only continue. This makes Beginning in March 2000, World Bank it critical that developing countries are efforts to address concerns about enabled to manage the production and use proliferation of toxic chemicals became of chemicals in a sound manner, to ensure more focused. In tandem, health con- healthy economic development without cerns associated with POPs prompted creating adverse effects for human health Canada to establish the Can$20 million and the environment. Canada POPs Trust Fund (CPTF) with the Bank, allowing the Bank to advance The WBG has supported chemical preparation of POPs baseline work in pollution management efforts for decades, developing countries and countries driven by its mandate to improve the with economies in transition (CEITs). quality of life for the poor, and recognizing that release and proliferation of toxic The CPTF financed POPs activities in chemicals result in adverse human and 10 East Asian countries. These efforts environmental health effects, which in turn leveraged approximately US $575 exacerbate poverty. In response, the WBG million and laid the groundwork for began to mainstream environmental health development of a variety of follow-on concerns into its rural and urban services POPs initiatives, many of which would as a means to enhance sustainable growth ultimately be supported by the GEF. and poverty reduction. In particular, it has supported projects to improve solid For more information see “Persistent Organic and hazardous waste and wastewater Pollutants, Backyards to Borders: Canada management, and to control pollution and the World Bank Achieving Results� in sectors such as water and sanitation, (2009), http://web.worldbank.org/WBSITE/ transport, industry, energy, and mining.10 EXTERNAL/TOPICS/ENVIRONMENT/EXTPO PS/0,,contentMDK:22155864~menuPK:116600 0~pagePK:148956~piPK:216618~theSitePK:408 121~isCURL:Y,00.html 10 Managing Pollution for Poverty Reduction and Green Development; The World Bank Group; 2010 Environment Strategy, Analytical Papers; p.1 [http:// siteresources.worldbank.org/EXTENVSTRATEGY/Res ources/6975692-1289855310673/20101102-Pollution- Management-full.pdf] 31 Persistent Organic Pollutants Persistent organic pollutants (POPs) are a group of toxic chemical substances including, pesticides, industrial chemicals, and unwanted by-products of industrial processes and combustion, that resist degradation, and bio-accumulate in the fatty tissues of humans and animals, concentrating up the food-chain and circulating long distances in air or water. By April 2011, 22 organic compounds including, chlordane, mirex, DDT, dioxins, furans, polychlorinated biphenyls, lindane and endosulfan have been identified by the Stockholm Convention as particularly dangerous and are therefore, subject to elimination or release minimization. There has been a long history of POPs production in China where, during the 1960s and 1970s, there was large-scale production of pesticides such as DDT and toxaphene in rudimentary facilities, often without appropriate pollution control measures in place. Since the inception of its GEF- funded POPs portfolio, the WBG has received GEF Council approval for $64 million to implement POPs projects in East Asia. This has leveraged an additional $54 million of co-financing resources to bring together local human health and environmental benefits and protection of the global commons. In the Philippines, a project is underway promoting the adoption of an integrated approach to POPs management, with a focus on brownfield redevelopment. The project will help minimize the risk of human and environmental exposure to POPs Philippines IPOPs by strengthening the country’s project logo regulatory and monitoring framework and improving capacity, through demonstrations, for safe management of PCBs, reduction of releases of unintentionally produced POPs, and reduction of exposure to POPs at contaminated sites. Synergies with local environment agendas will involve support for local government air pollution control initiatives to reduce air pollution emissions from open burning of solid wastes at dumpsites and households. Support for the development of capacity to manage cleanup or containment of polluted sites to reduce health risks and improve property values, along with improved capacity for solid waste management through better collection and disposal practices will be indirect benefits generated by the project. 32 In Vietnam, a project to develop national capacity to manage PCBs, in support of the country’s ongoing efforts to reduce risks to human health and ecosystem integrity from industrial pollution began implementation in 2010, It aims to establish a comprehensive policy and regulatory framework for sound PCB management, to build capacity to obtain and maintain an accurate and complete PCB inventory, as well as to build capacity regarding risk containment associated with the movement and storage of contaminated materials and equipment. On a pilot basis, in selected provinces, the project will provide guidance on safe storage of PCBs in anticipation of future disposal, In China, GEF financing has allowed the WBG to help develop projects that address the adoption of non-POPs termite control and the environmentally sound management and disposal of POPs. Termite control is big business in China where the threat of termite damage to forest plantations and critical urban infrastructure runs high. For nearly 3 decades, the Government has enacted termite control strategies to protect its buildings and essential infrastructure from the more than 450 species of termites found in the country. For many years, the battle has been waged using chlordane and mirex, two POPs chemicals whose effectiveness and low cost established them as the backbone of the Chinese termite control industry, despite knowledge of their carcinogenic, neurological, and physiological effects on human health. Ultimately, health and environmental impact considerations led the Government to approach the WBG for assistance to eliminate their use. Initial funding through the CPTF paved the way, in 2006, for a $14.36 million WBG/ GEF-funded Demonstration of Alternatives to Chlordane and Mirex in Termite Control project. The project seeks to eliminate chlordane and mirex use in three provinces (Anhui, Hunan and Jiangsu) through introduction of integrated pest management (IPM) approaches, and preparation of a national replication program for complete phase-out of chlordane and mirex in China. Another area of intervention in which the Bank has been in a position to lend assistance involves targetted risk assessment. Following the earthquake that devastated China’s western Sichuan province in May 2008, GEF funding allowed the Bank to provide emergency response assessment of risks associated with possible releases and/or generation of POPs and other hazardous chemicals and wastes resulting from improper waste management practices at industrial facilities that had been affected by the quake. Termite bait traps installed in a daycare, Hunan province. (photo source: National Project Management Team, China) 33 Looking Forward The broadening of the scope of the Stockholm Convention on Persistent Organic Pollutants (POPs), which includes consideration of new substances, in tandem with the expanding global agenda on chemicals management, where negotiations on mercury are progressing, presents the Bank with an opportunity to mainstream risk assessment and management of chemicals in support of development in a variety of sectors including: human and ecosystem health, pollution and waste management, food security and agricultural development, clean technology development and energy. New POPs initiatives in the EAP Region target expansion in various sectors. The Chinese Government has identified the pulp and paper sector as one of six priority sectors targeted for control of unintentional releases of POPs (UPOPs). A large-scale project is being designed as part of the country’s efforts to improve the sector’s environmental performance, through adoption of best available technologies/best environmental practices (BAT/BEP), which will serve to minimize UPOPs releases. The World Bank is also working closely with counterparts in China and Vietnam to prepare two GEF projects addressing waste management and incineration issues that will complement lending by related Bank-financed projects. In the Ningbo Municipality in China, a World Bank financed municipal solid waste management project will support selected districts to reduce the proportion of municipal solid wastes disposed of at landfill or by incineration through waste minimization, source separation, recycling and institutional strengthening. A complementary GEF project will ensure that efforts undertaken in the Ningbo municipality, and pilot activities in another two municipalities, lead to maximum reduction of UPOPs releases and form the basis of a replication program to promote BAT/BEP in this rapidly growing sector in the country. In Vietnam, a World Bank project for hospital waste management, supported by a US $150 million IDA loan, is being complemented by GEF finance that will support POPs related work in the country’s vital health sector by maximizing the reduction of releases of dioxins and mercury. 34 Concluding Remarks While the EAP region has experienced significant economic growth over the past decades, resulting in dramatic improvements in the quality of life for many of the region’s peoples, this formidable performance has conversely often come at considerable environmental cost. Increased urbanization and industrialization have tripled energy consumption in the region. Growing environmental concerns - significant air and water quality pollution due to uncontrolled discharges from municipal and industrial sources and the use of agrochemicals, rapid depletion and degradation of natural resources, leading to habitat loss, fragmentation and depletion of the region’s rich biodiversity endowment and, increasingly, the impacts of climate change - affect people’s health, their quality of life, and productivity, and compromise the potential of sustained growth and its benefits for future generations. In response to both the opportunities and concerns the EAP region faces, the Bank is working with clients to promote and support smart - sustainable and integrated – eco- development in the region with a focus on: • pollution abatement, including chemical pollution, with a view to improving air quality and access to clean water, sanitation and solid waste collection/ disposal; • stemming natural resource degradation, including deforestation, land degradation, loss of biodiversity and increasing water scarcity; • scaling up the use of sustainable energy options to support low-carbon growth and a carbon-resilient future, reduce energy poverty and protect the environment; and • enhancing environmental management capacity and access to environmental information. The WBG is committed to integrating issues central to the global environmental agenda into our clients country partnership strategies and lending programs, and to increasing impact by scaling up investments through a wide range of financing instruments. In this era of increased globalization and mounting global financial uncertainty, the WBG-GEF partnership in EAP can maximize environmental benefits and generate greater economies of scale by blending GEF financing for technical assistance and knowledge sharing into Bank investments to help stimulate synergies and in turn, greater impact. 35 Contributors: Robert Taylor, Kathy MacKinnon, Sam Wedderburn, Xiaodong Wang, Shomik Raj Mehndiratta, Yabei Zhang, Axel E. N. Baeumler, Steve Maber, Mahesh Sharma Prepared by: Dominique Kayser Reviewers: Jiang Ru, Bernadita Ledesma, Magda Lovei, Christophe Crépin, Marea Eleni Hatziolos, Tijen Arin, Ke Fang, Douglas J. Graham, Suhail J. S. Jme’an, Defne Gencer, Hung Duy Le, Emilia Battaglini, Karin Shepardson, Richard H. Hosier, John Fraser Stewart, Laurent Granier, Robin Broadfield Publication management: Nina Y. Queen Edited by: Clare Fleming Photos: All images courtesy of The World Bank Photo Library, except where noted. C The World Bank Sustainable Development East Asia and Pacific Region 1818 H. Street N.W. Washington, DC 20433 USA D