Latin America & 76895 Caribbean Region Environment & Water Resources Overcoming Institutional Occasional Paper Series and Governance Challenges in Environmental Management Case Studies from Latin America and the Caribbean Region © 2013 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. All images courtesy of Thinkstock/Getty Images and The World Bank Environment and Water Resources LCSEN Occasional Paper Series Foreword The Latin America and Caribbean (LAC) region has greener and more inclusive growth. The papers a unique mix of qualities and challenges when seek to bring to a broader public – decision makers, it comes to the environment. It is exceptionally development practitioners, academics and other endowed with natural assets, with globally partners - lessons learned from World Bank- significant biodiversity and valuable crops, and financed projects, technical assistance and other also harbors the world’s greatest carbon sink in knowledge activities jointly undertaken with our the Amazon. At the same time, however, the region partners. The series addresses issues relevant to the registers the highest rates of urbanization in the region’s environmental sustainability agenda from developing world with pollution, overuse of its water water resources management to environmental and natural resources and detrimental impacts on health, natural resource management, biodiversity the health of people, especially the poor, and the conservation, environmental policy, pollution environment. management, environmental institutions and governance, ecosystem services, environmental Over the past twenty years, the LAC region has financing, irrigation and climate change and their made impressive gains in tackling these issues. linkages to development and growth. It leads the developing world in biodiversity conservation and natural resource management As the LAC region continues to make its growth and is at the forefront in reducing urban pollution. more environmentally sustainable and inclusive, The World Bank has often been the partner of the strengthening of environmental institutions and choice for those countries in the region that have governance becomes paramount. In this particular had the initiative to pioneer innovative policies for context we present to you three successful case environmental protection and natural resource studies. The first case study describes how management, strengthen institutions responsible Colombia designed and implemented an air for environmental management, enhance quality management program based on public environmental sustainability, and introduce new awareness, evidence-based policy design, and approaches to water resources management. Such political commitment to reform. The second case initiatives include fuel and air quality standards study examines how Brazil is promoting access in Peru, carbon emission reduction in Mexico, to environmental justice through the public payment for ecosystem services in Costa Rica, prosecutors model. A third case study shows how participatory and integrated water resources the modeling of climate change and monitoring of management in Brazil, and new approaches to glacial retreat in the Andean countries is fostering irrigation management in Mexico. decision making to address the increasingly important challenge of climate change adaptation. In this context, it is our pleasure to introduce the Environment & Water Resources Occasional Paper We hope that this paper, just as the entire series, Series, a publication of the Environment and will make a contribution to knowledge sharing Water Resources Unit (LCSEN) of the Sustainable within the LAC Region and globally. Development Department in the World Bank’s Latin America and the Caribbean Region. The purpose of Karin Kemper the series is to contribute to the global knowledge Sector Manager, Environment & Water Resources exchange on innovation in environmental and Sustainable Development Department water resources management and the pursuit of Latin America and the Caribbean Region Table of Contents Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv I. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. Strengthening Environmental Regulation: The Case of Air Quality in Colombian Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 III. Promoting Compliance through Broader Access to Environmental Justice in Brazil’s Public Prosecutors Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 IV. Bridging the Gap Between Science and Decision Making to Address Climate Change in the High Andes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 V. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Annex. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Overcoming Institutional and Governance Challenges in Environmental Management Case Studies from Latin America and the Caribbean Region Irina Klytchnikova, Senior Economist, World Bank Ana Núñez-Sánchez, Consultant, World Bank Daniel Mira-Salama, Environmental Specialist, World Bank Acknowledgements The study was carried out under the overall guid- Sánchez-Triana, Alberto Ninio, Angela Armstrong, ance of Laura Tlaiye and Karin Kemper (World Alexander Valencia and Urvashi Narain (World Bank). The authors are grateful for the helpful com- Bank) . ments by Jordan Schwartz, David Sislen, Ernesto Abstract The strengthening of institutions and governance ing, and (iv) strengthening the role of civil society mechanisms is at the core of the environmental through providing clear forums and mechanisms sustainability agenda, yet the record of develop- for public participation in environmental decision ment assistance for institutional strengthening is making. Three case studies presented in this paper weaker than in other areas of environmental man- demonstrate successful approaches to strengthen- agement. As revealed through the consultations ing the environmental institutions and governance with a broad range of stakeholders from the Latin in those four areas in LCR. Each case includes a America and Caribbean Region (LCR) on the World discussion of the drivers of success and the role Bank’s Environment Strategy, carried out in 2010, played by World Bank support and of the potential the following priority measures would help further for replication in a broader range of countries. This the progress with improving the countries’ environ- policy note draws on the World Bank’s engagement mental institutions and governance structures: (i) in environmental policy dialogue in Colombia, other better setting of environmental policy priorities, (ii) Andean countries, and Brazil, identifies the critical strengthening regulatory and enforcement frame- elements of success and provides recommenda- works, (iii) improving access to environmental tions for development assistance in this area draw- information and its usefulness for decision mak- ing on the lessons from these case studies. iv I. Introduction The strengthening of institutions and governance environmental institutions and governance mech- mechanisms is undoubtedly at the core of the envi- anisms may be responsible for the relatively less ronmental sustainability agenda. In a broad sense, successful record in this area compared to other institutions were defined by Douglass North in his areas of environmental lending by the World Bank.3 Nobel Prize lecture as “the humanly devised con- The 2003 World Bank World Development Report straints that structure human interactions,� includ- “Sustainable Development in a Dynamic World� ing formal constraints such as rules and laws, in- and the 2001 World Bank Environment Strategy formal constraints such as norms of behavior and recognized the importance of institutional strength- conventions, and their enforcement characteristics ening and the establishment of effective regulatory (North 1993).1 The area of environmental manage- and enforcement frameworks for achieving desired ment is remarkable in terms of the complexity of environmental outcomes. The participants in the institutional arrangements that often involve mul- 2010 World Bank Environment Strategy consulta- tiple actors at different levels and transcend en- tions in the Latin America and the Caribbean Re- vironmental mediums and economic sectors. The gion (LCR) highlighted four priority areas for the analysis of the complex channels of interactions strengthening of environmental institutions and that lead to successful institutional and gover- governance:4 nance structures and sustainable use of natural resources has deepened the understanding of the (i) Setting Environmental Policy Priorities: es- factors behind successes and failures. Twenty- tablishing medium- to long-term policy priori- six years after North’s seminal work, in her Nobel ties that persist despite administration chang- Prize lecture Elinor Ostrom emphasized the lack of es and have buy-in from other sectors apart one-size-fits-all approaches and the need for cus- from Ministries of Environment; tomized solutions to strengthen environmental in- stitutions and environmental governance (Ostrom (ii) Strengthening Regulatory and Enforcement 2009).2 A failure by development practitioners to Frameworks: enhancing the capacity of en- fully appreciate the complexity of building strong vironmental institutions and strengthening 1 North, Douglass. “Economic Performance through Time.� Nobel Lecture, December 1993. 2 Ostrom, Elinor. “Beyond Markets and States: Polycentric Governance of Complex Economic Systems.� Nobel Lecture, December2009. 3 The recent impact evaluation of World Bank assistance in the environmental area found that the performance record for stand-alone projects to strengthen the institutional capacity for environmental management tends to be worse than for other projects, probably due to the chal- lenges of supporting institutional change in a country (World Bank 2008c). 4 These priority areas have emerged from the discussions with a group of 35 participants from Mexico, Central America and Colombia during the first round of multi-stakeholder consultations on the new World Bank Environment Strategy held in Mexico City from February 11 to 12, 2011 for the Latin America and the Caribbean Region of the World Bank. 1 Overcoming Institutional and Governance Challenges in Environmental Management environmental governance (e.g., the regula- environmental management. This experience high- tory framework and compliance/enforcement lights how evidence-based policy design, backed by mechanisms); political commitment to reform, public awareness of the severity of the problem, and earmarked fi- (iii) Improving Access to Environmental Informa- nancial resources to fund the identified priority ac- tion and its Usefulness for Decision Making: tions, can help achieve remarkable environmental increasing the availability and quality of envi- outcomes. This case study draws on the continu- ronmental information, with guidance from ous dialogue between the Government of Colom- research and informed by recent technologies bia and the World Bank in the last ten years, and and environmental data, and improving the shows the drivers of success with Colombia’s ur- evaluation of costs of environmental degrada- ban air quality reforms. tion; Case 2: Promoting Compliance Through Broader (iv) Strengthening the Role of Civil Society: in- Access to Environmental Justice in Brazil’s Pub- volving civil society in the overall environmen- lic Prosecutors Model. The second case presents the uniquely successful experience of Brazil in pro- tal management process in a structured and moting access to environmental justice through the meaningful way, with clear forums for partici- public prosecutors model. Lessons from this case pation and access to environmental justice. can inform a program of technical assistance to in- The cases presented in this paper demonstrate terested countries where this approach may also successful approaches to strengthening the en- be successfully applied. World Bank support in this vironmental institutions and governance in these area has not been extensive, with a few exceptions areas in LCR. Each case study includes a discus- such as the efforts to strengthen the capacity of sion of the drivers of success and the role played public prosecutors in the State of Minas Gerais in by World Bank support, and of the potential for rep- Brazil. lication in a broader range of countries. This policy Case 3: Bridging the Gap Between Science and note draws on the World Bank’s engagement in Decision Making to Address Climate Change in environmental policy dialogue in Colombia, other the High Andes. The third case demonstrates the Andean countries, and Brazil, and describes the successful application of technological innovations following success stories: in the area of environmental monitoring—modeling Case 1: Improving Air Quality in Colombian Cities of climate change and monitoring of glacial retreat Through Better Priority-Setting and Communica- and runoff flows—with World Bank support in the tion of Environmental Information. The first case Andean countries. This experience clearly shows describes the strengthening of environmental regu- that many opportunities have emerged as part of lations in Colombia with the help of a Programmat- the climate change agenda for developing innova- ic Environmental Development Policy Loan (DPL), tive and possibly low-cost and long-lasting environ- combined with a technical assistance project. Al- mental monitoring programs by fostering partner- though this program supported a range of reforms ships between government agencies and research in several areas, the documented achievements in institutes. This process of partnership building terms of improving urban air quality provide par- helps ensure the relevance of scientific findings for ticularly useful insights for projects that seek to decision making and environmental policy. support institutional strengthening for improved 2 II. Strengthening Environmental Regulation The Case of Air Quality in Colombian Cities Air pollution from the transport sector became a Desarrollo Humano, PNDH) on air quality and to top priority on the environmental policy agenda strengthen the program’s emphasis on the urgent by the mid-2000s. Air pollution levels in Bogotá, need to improve air quality. Medellín and Bucaramanga are comparable to After 2006, it became clear that curbing trans- those of Latin American cities with severe air pollu- port emissions was the single most effective step tion problems, including Mexico City and Santiago. to reduce the health costs of urban air pollution. Measured by average particulate matter (PM) con- A series of technical studies, which monitored and centration levels, pollution levels in those Colom- analyzed the sources of air pollution and construct- bian cities—between 50 and 70 µg/m3 of PM10—are ed emissions inventories, as well as in-depth en- nearly twice the levels observed in Los Angeles, vironmental health assessments, were conducted Madrid and Rome, and more than twice the levels between 2006 and 2008 by the University of the in New York and Paris.5 As estimated by the World Andes and Bogotá’s District Environmental Secre- Bank’s 2006 Country Environmental Analysis (CEA) tariat. These assessments confirmed the urgency for Colombia, each year 6,000 people died prema- of improving air quality; their results were broadly turely in Bogotá, and there were 7,400 new cases discussed in the National Environmental Forum of bronchitis each year as a result of urban air pol- and the National Air Council (Consejo Nacional de lution. The annual cost of urban air pollution from Aire, CONAIRE). The studies indicated that pollution PM was estimated at 0.8 of Colombia’s gross do- by PM10, followed by ozone, is more severe in Bo- mestic product (GDP); air pollution in Bogotá alone gotá compared to other air pollutants (carbon mon- accounted for half of those costs.6 oxide, nitrous oxide and sulfur oxide); PM10 levels A preliminary assessment of pollution sources re- are more often out of compliance with the national vealed the major contribution to pollution levels norms than are other pollutants. The assessments from mobile sources, making this a priority in the also revealed that around 60 percent of total PM10 2005 Air Pollution Prevention and Control Policy. emissions in Bogotá are from industrial sources Subsequently, the 2006 CEA identified the lower- and 40 percent from mobile sources. Of the latter, ing of sulfur content in fuels as a priority measure nearly 90 percent is emitted by around 50,000 die- to improve urban air quality. The CEA’s striking find- sel-powered vehicles (buses and trucks) in Bogotá ings about the high health and economic costs of and almost 10 percent by heavily polluting motor- air pollution helped to shape the strategic compo- cycles with two-stroke engines.7 Furthermore, a se- nent of Colombia’s 2006–2010 National Human ries of epidemiological studies found that mobile Development Program (Programa Nacional de sources may have higher health impacts than the 5 World Bank (2005). World Development Indicators. Cited in World Bank (2006). 6 World Bank (2006). Environmental priorities and poverty reduction: a country environmental analysis for Colombia. Washington, D.C.: World Bank. 7 Rojas, Nestor (no date). Air Pollution and Environmental Problems in Bogotá. National Environmental Forum. 3 Overcoming Institutional and Governance Challenges in Environmental Management more concentrated industrial sources. With this air and Territorial Development (Ministerio de Ambien- pollution profile, the urgency of lowering the sulfur te, Vivienda y Desarrollo Territorial, MAVDT) jointly content of Bogotá’s diesel—very high by interna- with the Ministry of Mining and Energy (Ministerio tional standards at 1,200 parts per million (ppm)— de Minas y Energía, MME) and—very importantly— was identified by technical experts and decision with the engagement of the Colombian petroleum makers as one of the key measures to reduce air company ECOPETROL from the very beginning. pollution. The technical assessments, the devel- The lowering of sulfur content in fuels appears opment of standardized protocols for emissions to have helped improve air quality, however fur- monitoring, round table discussions in the National ther measures are needed to sustain these gains. Environmental Forum and the National Air Council, Measurable improvements in Bogotá’s air quality and epidemiological studies were supported by the have already been observed; these have been at- World Bank-financed Sustainable Development tributed at least in part to the implementation of Investment Project and the Programmatic Environ- the Fuel Quality Law. Sulfur content in diesel fell mental Development Policy Loan. from 1,200 ppm in January of 2008 to 500 ppm in July and further to 231 ppm in October 2009. The concentration of particulate matter in Bogotá, The Passage of the 2008 Fuel Quality Law based on air quality monitoring data, fell by eight percent in 2008 and continued to decline further and the Signing of a Voluntary Pact with in 2009. The numbers of consecutive days with PM ECOPETROL levels out of compliance with the norms fell from 50–59 in 2007 and 2008, respectively, to only 12 The Role of Environmental Information in Mobiliz- in 2009 (see Figure II.1). According to the Bogotá ing Public Pressure for Change. The CEA’s health District Health Secretariat, no reductions in the cost estimates were taken up by a media campaign rates of respiratory illnesses have yet been de- and by congressional leaders who led public pro- tected, but the impacts may be indirect. In-depth tests with white blankets that were quickly soiled environmental health and monitoring studies at by air pollution. The improvement of fuel quality city level are required to ascertain these impacts. through the adoption of more stringent air quality Additional regulatory changes, apart from the im- regulations on sulfur content in diesel was under- plementation of the stringent new sulfur limits, the stood to be the most urgent priority. The challenge strengthening of monitoring networks and the es- was to ensure that compliance with the new fuel tablishment of a new urban air quality information quality norms, under discussion for mobile sourc- system with the latest monitoring data, are likely es, would be achieved. Over the course of 10 years to result in further air quality improvements in the prior to that, 13 attempts to pass stringent fuel medium to long term. However, since motorization quality standards had failed, mainly because of rates in Colombia and particularly in Bogota con- the absence of a roadmap for implementing those tinue to rapidly rise, any improvements in air quality standards. This time, the preparation of the Fuel would be reversed without effective programs and Quality Law in 2008, with stringent standards on incentives to replace the old vehicle fleet, especial- sulfur content in transport fuels, was accompanied ly old buses, and improve public transport systems. by a series of consultations with the regulated com- munity led by the Ministry of Environment, Housing 4 Figure II.1. Bogota’s Air Quality Significantly Improved, Note: Air quality improvements have been observed, Partly Due to Sulfur Reduction in Fuels when measured by the number of days in excess of the maximum PM10 limit of 150 µg/m3, established by Resolution 601 in 2006. The District Environmen- 70 Number of days exceeding the PM10 max. tal Secretariat attributes this improvement in part to 59 the introduction of cleaner diesel in the city’s fuel 60 distribution network, and in part to greater disper- 50 daily limit of 150 µg/m3 50 sion of pollutants in 2009 compared to 2008 be- cause of more windy conditions. The sulfur content 40 of diesel has been reduced from 1,200 ppm to fewer than 500 ppm starting in July 2008, in compliance 30 with ECOPETROL’s commitment in the “Pact for Bet- ter Air Quality in Bogotá� to introduce cleaner diesel. 20 12 Source: District Environmental Secretariat, October 10 2009. 0 2007 2008 2009 How Was the New Fuel Quality Law Implement- production costs of higher-quality fuel results in ed? In Colombia, ECOPETROL played a key role in higher fuel prices. In Colombia, compliance with achieving compliance with the new emissions regu- the new mandate to lower sulfur content in fuels lations established by the Fuel Quality Law, mandat- was achieved by introducing additional refining ing lower sulfur content in diesel. The President of processes in the diesel production cycle through ECOPETROL, the Minister of Environment (MAVDT), an ECOPETROL investment and through a tempo- and the Mayor of Bogotá signed a voluntary pact in rary increase in the imports of higher-quality die- February 2008, whereby ECOPETROL would install sel (subsidized by the State). ECOPETROL was a an additional refinery process to improve diesel state-owned enterprise until 2007 when a portion quality. A similar pact has been signed for Medellín. of it was sold to the private sector. Thus, the Gov- The pact stipulated that ECOPETROL would lower ernment of Colombia (GoC) has at least partially the sulfur content in diesel for Bogotá to 50 ppm financed the investment in the additional refining by the end of 2010. This is more stringent than the capacity, enabling compliance with the new Fuel levels stipulated in the 2008 Fuel Quality Law, and Quality Law. Fuel prices for diesel did not increase ECOPETROL is complying with this voluntary com- in Bogotá as a result of the new law. The costs were mitment. According to MAVDT, estimates of the not passed on to consumers; retail diesel prices re- health costs of air pollution have been instrumen- mained at the pre-reform level in Bogotá in order to tal for putting together the financing for the new re- avoid the illegal sales from cities with lower-quality finery, because ECOPETROL’s management argued diesel. The relative ease of enforcement of the new that this investment would result in large savings in sulfur content requirements was also due to ECO- terms of the health costs of pollution to justify this PETROL’s unique situation as a joint public-private project (Personal communication 2010). company and its desire to improve its public image. Implementation of tight fuel quality standards is Negotiations with ECOPETROL, its involvement in in general a formidable challenge because of the the discussions that preceded the passage of the compliance costs borne by the producers and con- new regulations, and congressional involvement sumers, with the latter affected if an increase in in the consultations under the framework of the 5 Overcoming Institutional and Governance Challenges in Environmental Management Health Forum (Congreso de Salud) have helped to get ECOPETROL on board with the preparation of The Elements of Success and the new regulation and to develop a strategy for the Role of the World Bank compliance with the new law, which ECOPETROL’s management knew was under preparation. In fact, Favorable Initial Conditions and Technical Foun- two congressmen involved in the Health Forum’s dation, Culminating in Strategy. The legal frame- discussions later prepared and facilitated congres- work for Colombia’s air quality management sys- sional approval of the new 2008 Fuel Quality Law. tem dates back to the 1974 National Code for Renewable Natural Resources and Environmental Commitment to initial reforms facilitated further Protection. Colombia has a fairly long history of air achievements with air quality regulations outside quality monitoring. More recently, the GoC has im- the transport sector. This success in tackling mo- plemented a series of regulatory reforms, accom- bile sources has helped achieve progress in the ef- panied by the adoption of policies and strategies forts to collect data on sulfur emissions from indus- and by the creation of intersectoral coordination trial sources (also regulated by the new law), with mechanisms that have built upon the 2006–2010 the eventual objective of achieving compliance with National Human Development Plan’s (NHDP’s) the law for fixed sources. Industry representatives strategic component on air quality management used to claim that the government first needed to and have helped achieve notable reductions in air tackle the bigger problem—sulfur content of mo- pollution in the country’s most contaminated cities. bile sources—before addressing fixed sources (the relatively smaller sources of sulfur emissions than At the time when the GoC requested World Bank those of mobile sources). The application of the assistance to help strengthen air quality manage- new law to mobile sources and the pact with ECO- ment, the conditions for reforms in that area were PETROL have demonstrated that the government’s favorable and the reforms had strong supporters intentions to pass and, very importantly, to enforce in MAVDT and the National Planning Department compliance with the new regulations are serious. (Departamento Nacional de Planeación, DNP). The The regional environmental authorities (Corpora- strategy included: (i) the development and imple- ciones Autónomas Regionales, CARs), which did mentation of protocols to measure emissions; (ii) not previously succeed in their efforts to improve the creation of emission inventories; (iii) research the quality of emissions from industrial sources, to better understand the causal links between pol- were now able to obtain the required information lution and health; (iv) the design and approval of on emissions from fixed sources. This time, when an action plan; and (v) the design and approval of industrial sources were given two months to com- a national policy. The benchmark achievements ply with reporting requirements, they realized that in this area, supported by the package of World the efforts to enforce compliance were serious and Bank support, are the passage of the Air Pollu- they provided the required data. This information is tion Prevention and Control Policy (CONPES 3344 used by government agencies to define policy mea- [2005]), the passage of the Fuel Quality Law (Law sures and incentives aimed at lowering emissions 1205 [2008]), the passage of the Air Quality Law from fixed sources of air pollution. by CNA (2009) and the creation of the National Intersectoral Technical Commission on Preven- tion and Control of Air Pollution (CONAIRE [2006]), which was charged with the preparation of action 6 plans to achieve the goals of the 2005 and 2009 have helped set priorities on the policy agenda, the Air Quality Policies (see Figure II.2 and Annex Table DPL facilitated the coordination needed to blend 1). Ministries of Environment do not always have the work of the many different sectoral authorities, the convening power needed to coordinate power- and the Sustainable Development Investment Proj- ful sectors, such as energy and transport. The CEA ect (SusDevInv) has provided earmarked financing and Strategic Environmental Assessments (SEAs) to implement priority measures. Figure II.2. Benchmark Achievements in Air Quality Management and Support by the Bank Fuel Quality National Academic Law; National Air Human Forum; National Polution Development CONAIRE; Environmental Control Policy Plan Round Tables Health Policy 2009 2006-2010 2007-08 2008 Contribution of the World Bank Technical and Financial Assistance • The 2005-06 Country Environmental Analysis (CEA) influenced the formulation or the urban air quality objectives in the 2006-2010 National Human Development Plan (NHDP), helping solidify the political commitment to reform • The 2007-08 “Fuels� and “Environmental Health� Strategic Environment Assessment (SEAs) laid out priorities for an action agenda to implement the NHDP’s priorities • The DPL program has supported the passage of benchmark policies, the Fuel Quality Law, and the formation or the National Intersectoral Technical Commission on Prevention and Control of Air Pollution (CONAIRE) as the prior actions agreed with the government for loan disbursement • The SEAs informed the discussions of the Academic Forum with 70 stakeholders from government and other insti- tutions and the action plans of CONAIRE; and helped establish priorities eventually addressed by the Fuel Quality Law and the Environmental Health and Air Pollution Control Policies • The Sustainable Development Investment (SusDevlnv) Project that has accompanied the Development Policy Loan (DPL) program, has financed the preparation of the SEAs, the establishment of emissions monitoring protocols, emissions inventories, environmental health studies of air quality in the most polluted sites and other specific investments in strengthening air quality management 7 Overcoming Institutional and Governance Challenges in Environmental Management The Role of the Country Environmental Analysis. levels and across sectors. According to the National The CEA’s Impact Evaluation has found that the Planning Department (Departamento Nacional de topic of environmental health became pronounced Planeación, DNP), the DPL series has had a very in the 2006–2010 NHDP on the basis of the back- positive impact on environmental management in ground studies carried out as part of the CEA (Cha- Colombia. The DPLs have helped lock in commit- varro Vásquez 2006). The CEA also provided the ment to reform at the intersectoral level. The CEA, analytical foundation for the definition of specific carried out at the start of the program, has helped policies (CONPES 3343 and the 2005 guidelines), focus attention on identifying priorities in each justification for the SEAs, and justification for the area—this is particularly true in the area of air qual- conduction of a clean liquefied petroleum gas ity management where the cause-and-effect chain (LPG) program by ECOPETROL. It also provided the technical foundations for the public debate that is complex—and then developing concrete action ensued in the Colombian media. Congressman Da- plans and regulations to address those areas, and vid Luna (the representative for the city of Bogotá), investing in specific measures to achieve progress “surprisingly well versed� on the CEA’s findings and in the areas identified as priorities. By helping to de- the strategic actions proposed by the report and its fine a set of clear priorities, the Bank program has background studies, reported that the main envi- (i) helped to join the efforts of different agencies ronmental priority was the introduction of cleaner and stakeholders focusing on the priority areas, (ii) diesel for public and heavy transport (Chavarro created a temporal framework for attaining these Vásquez 2006, p. 33). The experts in MAVDT’s air objectives, and (iii) provided financing through the quality group have reported that the CEA had made SusDevInv Project for actions in these priority ar- it possible to build public pressure and eventually eas and helped to assure the fiscal space (budget succeed in passing the new law (personal commu- allocation) to finance these actions in MAVDT and nication 2010). other implementing agencies. In particular, in the The Role of the Environmental Development area of air quality management, the program owes Policy Loan (DPL) Series and the Sustainable its success to the ability to establish a clear frame- Development Investment Project. The Stakehold- work from the prioritization of interventions based er Workshop was held in May 2010 to solicit the on integrated analysis of air quality problems in the participants’ comments on the program’s achieve- CEA, to the establishment of the corresponding ments.8 Overall, DPL support has facilitated an policy priorities, and to the allocation of budgets to evidence-based policy-setting process with clear carry out priority actions in order to achieve prog- assignment of resources and commitment at high ress in these priority areas. 8 Participants have included key staff and technical experts of MAVDT, National Planning Department (DNP), Institute of Hydrology, Meterology and Environmental Studies (IDEAM), National Administrative Department of Statistics (DANE), the Bogotá Health Department, and other agen- cies. In a series of meetings with the teams that are in charge of implementing interventions and making the regulatory changes in each area or that are otherwise engaged in that process, the Bank team asked the participants to (i) describe the program’s most significant achieve- ments, (ii) assess the DPL’s role in reaching these achievements, as well as the role of the underpinning AAA program and the associated SusDevInv technical assistance project, and (iii) respond whether in their view these achievements would have occurred in the absence of support by the DPL. 8 struments—a DPL program supported by rigorous Can this Approach be Replicated and and timely analytical support and technical assis- What May be the World Bank’s Role? tance either through a parallel investment project or linked trust fund-financed operations—can have The Need to Act at Multiple Levels and Find remarkable outcomes. However, such a program Customized Solutions. The successful steps to- needs to include all three elements. In the case of ward stronger environmental regulation, with real air quality reforms in Colombia, it is unlikely that impacts on the ground and measured air quality the same outcomes would have been achieved if improvements, can be replicated in other areas of either of the elements of the program was missing. environmental management in Colombia and in Due to technical complexities, such as the indirect other countries. The case of air quality regulation links among investments, environmental quality in Colombia has revealed that success is possible and health outcomes, it may hold true for environ- when the process of setting policy priorities directly mental programs more than for any other sector translates into an action agenda, with earmarked fi- that a DPL program needs to be accompanied by nancial resources for the implementation of priority technical assistance loans. This experience also actions. The World Bank and other donors can play suggests that a technical assistance loan alone a catalytic role in this process by recognizing the would not have achieved the same outcomes be- windows of opportunity for policy reform, providing cause the DPL has been instrumental in mobilizing timely analytical support to help the governments intersectoral coordination. A new lending instru- establish policy priorities, and delivering targeted ment could be considered; it would automatically technical and financial assistance. But this case combine a DPL loan (normally large) with a relative- has also shown that the positive outcomes were ly small technical assistance loan and earmarked a result of the interplay of several factors, starting funding for the supporting analytical studies. The with the strong domestic commitment for reform proposed new instrument, P4R or Program for Re- and champions at different levels: in the Ministries sults, which is currently being developed by the of Environment and Energy, in Congress and in World Bank, may offer a much-needed integrated civil society. This conclusion is in agreement with tool for strengthening environmental institutions the findings of the latest research on institutional and governance. economics and polycentric governance systems, which emphasize the need to act at multiple levels Effective Public Communication of Technical and find context-specific solutions. This approach Findings and Environmental Information. This calls for flexibility and adaptive management in the case study also reveals the importance of environ- design of programs aimed at supporting policy re- mental information and effective communication forms. of the results of technical studies to decision mak- ers and to the public. Strengthening the commu- Combining Analytical Support, Policy Lending nication of technical results would significantly in- and Technical Assistance for Successful Envi- crease the impact of the Bank’s programs that aim ronmental Outcomes. At a practical level, the ex- to improve environmental governance, and would perience of the program of environmental reforms also increase these programs’ chances of success. in Colombia has shown that a combination of in- 9 Overcoming Institutional and Governance Challenges in Environmental Management III. Promoting Compliance Through Broader Access to Environmental Justice in Brazil’s Public Prosecutors Model Over the past 50 years, countries in LCR have de- sential for environmental assets to thrive […] and veloped a wide range of environmental laws and contribute to growth and human well-being.� institutional frameworks aimed at protecting the The 2001 World Bank Environment Strategy rec- environment and promoting sustainable develop- ognized the importance of effective regulatory and ment. However, overall compliance and enforce- enforcement frameworks for improving the quality ment of these laws and regulations remain a chal- of growth in developing countries and established lenge in the region. Brazil is a notable exception: the goal to “promote the introduction and enforce- public prosecutors have played a central role in ment of efficient environmental and natural re- helping to promote compliance and enforcement sources management institutions, policies and of Brazil’s environmental law and regulations. This regulations.� Moreover, the Regional Environmen- case study describes Brazil’s public prosecutors as tal Strategy for Latin America and the Caribbean an enforcement institution, lists key aspects con- Region considered it a priority action to “provide tributing to their success, discusses the possibility targeted support to client countries for building of replication in LCR and contributes to the techni- regulatory and enforcement frameworks.� cal discussion on the World Bank’s role in promot- ing environmental compliance and enforcement These statements still resonate today since many systems. Latin American countries have substantial legal frameworks for environmental protection and have Natural assets decline when environmental insti- introduced or reformed their laws to enable insti- tutions are weak. A large body of theoretical and tutions such as citizen groups or public prosecu- empirical studies concludes that environmental tors to legally defend environmental rights (e.g., the performance is correlated with the quality of envi- Public Ministries of Brazil [Ministério Público] and ronmental institutions and the regulatory regime in Colombia [Ministerio Público], or MP], Argentina’s place, as well as the underlying economic context. and Costa Rica’s “Office of the People’s Advocate� The rigor and structure of environmental regula- [Defensor del Pueblo], or Mexico’s Office of the At- tions are two of the main factors, as is an empha- torney General for Environmental Protection [Pro- sis on enforcement (Esty and Porter 2000). The curadoría Federal de Protección al Ambiente, PRO- World Development Report 2003, which focused FEPA]). In no other country in the region do public on transforming institutions, growth and quality of prosecutors have such a broad mandate and are life, stated that “protective institutions, those that so actively engaged in the mediation of environ- define and control the access and use of assets mental complaints as in Brazil. Brazil’s Ministério through norms or the threat of punishment, are es- 10 Público (MP)9 has been considered one of the most ecute the State if it breaks environmental laws and successful protective institutions in LCR due mostly regulations. The jurisdiction was broadened three to an unusually broad constitutional mandate, the centuries later and the public prosecutor emerged presence of appropriate legal tools, and functional, as the key figure in the environmental enforcement administrative and financial independence from arena. Two main legal milestones describe the rise other agencies and political authorities. of the MP as an environmental protection institu- tion: (i) the Public Civil Action Law of 1985, which Efforts to increase compliance with environmen- established a legal instrument known as the “pub- tal regulations include a wide range of policy tools lic civil action,� through which the MP could take that are needed to complement more traditional to court any “person or entity for harm done to the enforcement instruments. Brazil’s MP comprises environment, consumer rights, or the artistic, cul- both deterrence and normative theories,10 since tural, historical, touristic and landscape patrimony these can protect environmental causes before of the nation;� and (ii) the Constitutional Reform of courts but also reach cooperation-based enforce- 1988, which expanded the scope of the public civil ment programs; for example, when the perpetrator action to defend environmental interests and other agrees to stop the transgression or avoid commit- diffuse and collective interests.11 ting it altogether, while the authority agrees to a flexible enforcement process. Cooperation-based Since then the MP has played a central role in en- enforcement could contribute to increased compli- forcing environmental laws and regulations in Bra- ance at a minimal cost, preventing environmental zil. Indeed, the MP has provided a partial remedy to damage rather than reacting to it. This case study the “non-enforcement problem� of environmental describes the case of the MP in Brazil, focusing on law in Brazil by overseeing environmental agencies, the pros and cons of this protective institution, the enhancing accountability, and facilitating access strategic aspects that could be applicable in the to courts for environmental problems (McAllister region, as well as the role of the World Bank in pro- 2008). In addition, the MP has worked in Brazil moting it more broadly. as a countervailing constraint that impedes policy makers from neglecting environmental protection in favor of other pressing concerns such as mac- roeconomic issues (Mueller 2008). Essentially, the Brazil’s Public Prosecutors: The Broadening inclusion of the mandate to protect diffuse and of the Constitutional Mandate in the 1980s collective interests has broadened the MP’s juris- diction to the monitoring of all public policy; social Since its creation in 1609, the role of the MP in Bra- conflicts that were previously addressed in the po- zil has developed from that of an entity prosecuting litical and not the judicial arena can now be medi- in the name of the State to an entity that can pros- ated by the MP (Mueller 2009). 9 The Ministério Público is the Brazilian body of autonomous magistrates formed by public prosecutors. It is a body of the Brazilian judicial sys- tem which includes the Procuradoria-Geral da República. The Brazilian criminal investigation police are supervised by the Ministério Público. [Source: http://en.wikipedia.org/wiki/Public_Ministry_(Brazil)]. 10 Deterrence Theory: Probability of detention, severity of punishments and social stigma deter illegal behavior. Normative Theory: Rewards, incentives and technical assistance promote legal behavior. 11 Diffuse rights or interests are indivisible rights held by unidentifiable persons (community) and are bounded by specific factual circumstances. A typical example is the right of undetermined and undeterminable people to have a sound and balanced environment. Collective interests are indivisible rights held by a group, a category or a class of persons linked to each other or to a certain third party by a legal relationship. 11 Overcoming Institutional and Governance Challenges in Environmental Management The MP has been actively engaged in cases per- impact of public prosecutors on environmental out- taining to a wide range of environmental issues. In comes in Brazil has sought to test whether states 2008, the majority of environmental procedures with more active MPs had a higher perception of were related to Permanent Protected Areas (22 environmental quality (Mueller 2009). The hypoth- percent), pollution control (13 percent), and Natu- esis is that more active MP involvement creates an ral Protected Areas (10 percent) (see Figure III.1). impetus and public pressure that induce local and To what extent has the active engagement of Bra- national level policy makers to prioritize environ- zil’s MP in the resolution of environmental conflicts mental problems within the broader policy agenda contributed to stronger environmental manage- and increase the allocation of resources to address ment? One of the few empirical assessments of the those problems.12 Figure III.1. Brazil: Environmental Procedures by Thematic Area 2008 Permanent Protected Mining - 6% Solid Waste - 3% Areas - 22% Deforestation - 8% GMOs - 2% Protected Areas - 10% Fauna - 9% Urban Planning - 6% Costal Zone - 3% Energy - 2% Pollution Control - 13% Other - 6% Water Resources Infrastructure - 3% Hazardous Waste - 5% Management - 2% Source: Ministério Público Federal 2009. One of the MP’s most unique characteristics is that cessation of environmentally destructive practices. in addition to taking a traditional legal approach In the last decade, the number of environmental (threatening or defending environmental causes in and cultural resources procedures, both court the courts), the MP supports environmental compli- proceedings and TACs, has increased significantly ance by promoting agreement-based compliance in all regions of Brazil (Figure III.2).13 Some of the through the use of an Environmental Commitment reasons for the overall increase in the recent rise Adjustment Instrument (Termo de Ajustamento de in the number of TACs as an alternative to court Conduta, TAC). TACs allow for the flexible applica- proceedings are the high costs and uncertainty as- tion of legal terms and conditions in exchange for sociated with the latter. 12 Mueller (2009) has regressed the state-level environmental quality index, created with 105,545 data points using municipal level data on the reported perceptions of environmental quality, on several control variables: an index constructed to measure of the strength of public prosecu- tors in each state, as well as the quality of environmental regulation, income and average education levels in each state. The results of the cross-section regression at the state level suggest that public prosecutors contribute to making environmental regulation more effective, but these results need to be interpreted with caution because the regression includes only 26 observations by state for each of the variables. 13 The differences by region could be attributed to the disparity in capacities of MPs in less-developed states located in the Northern region and more developed states located in the Southern region (Mueller 2008). 12 400 Number of court proceedings and TACs per year 365 350 North 300 North East 260 250 240 South 225 200 South East 160 Central 150 102 100 Figure III.2. Environmental and 75 58 65 Cultural Resources Proceedings 50 50 50 42 by Region in Brazil 28 20 20 Source: Ministério Público Federal and authors’ calculations. 0 2000 2004 2008 Success Factors and Drawbacks The MP’s success in protecting the environment is complaints to the MP rather than filing legal mainly due to an enabling environment for carry- actions themselves; they rely on the MP’s ex- ing out its tasks. A number of studies indicate the pertise and capacity to investigate and manage following aspects as key contributors to the MP’s complaints before a court (McAllister 2005); success in promoting compliance and enforcement (iii) Agreement-based compliance or TAC: The TAC of environmental laws and regulations: is an instrument through which actual or po- Appropriate Legal Tools: tential perpetrators of damages to the environ- ment agree to take preventive measures to stop (i) Civil investigations: The Public Civil Action Law illegal acts or damages to public assets and of 1985 grants the MP the power to promote enforce environmental laws and regulations. civil investigation. In practice, the MP can re- TACs are considered a faster and cheaper tool quest free expert advice from the police and for environmental enforcement than the filing other governmental organizations such as envi- of a lawsuit, and have additional advantages ronmental agencies in order to build a case for such as the perpetrator’s voluntary assump- environmental protection (Mueller 2009); tion of responsibility (Ninio 2010), which could (ii) Public Civil Action: The Public Civil Action Law simplify a later court proceeding if needed. The of 1985 grants the MP and other governmental majority of the MP’s environmental investiga- or nongovernmental organizations the power to tions result in these types of settlements being bring public civil actions before a court. In prac- negotiated with the responsible party (McAllis- tice, environmental organizations often bring ter 2005). 13 Overcoming Institutional and Governance Challenges in Environmental Management Functional, Administrative and Financial Inde- and format, criteria of uniformity, and transpar- pendence: ency, which could hinder the use of TAC as a viable alternative for managing environmental (iv) The MP’s annual budget allocation is fixed and conflicts; automatic; (iv) Cost-benefit assessment: There is little eco- (v) Public prosecutors, working for the MP, have nomic analysis comparing the pros and cons lifetime tenure which is accessed through a of the MP approach to environmental compli- public examination open to all citizens with the ance and enforcement. Ideally, this analysis necessary qualifications, (although public ex- would facilitate a comparison of the benefits of aminations are difficult and the number of can- increased environmental performance directly didates often significantly exceeds available applicable to the MP’s intervention with the vacancies). The 1988 Constitution stipulates cost of said intervention (e.g., time spent pre- that prosecutors cannot be fired, transferred or paring and filing a lawsuit). Moreover, econom- have their salaries reduced; ic analysis of the alternative legal tools used (vi) Salaries are among the highest in the country by the MP would be desirable. There is a gen- for public sector jobs and, as a result, they at- eral understanding of the cost-effectiveness of tract highly competent people. TACs over court proceedings, but there is little analytical underpinning to support that state- However, the MP’s unfettered autonomy, free from ment. hierarchical or external control, has also raised concerns. Public prosecutors’ main challenges in- Can the MP Approach be Replicated and clude: What May be the World Bank’s Role? (i) Scope of action: Prosecutors have a broad man- date to influence issues that do not fall directly Central Role of Public Prosecutors in Environ- or explicitly under the MP’s legal or technical Mental Regulation and Enforcement. Despite the mandate; this could constrict and delay key need to assess the economic and environmental processes such as environmental licensing; impacts of the MP, it has clearly played a defining role in promoting compliance and enforcement of (ii) Institutional coordination: The lack of infor- environmental law and regulations in Brazil. Many mation-sharing mechanisms and coordina- Latin American and Caribbean countries are now tion between the MP and other environmental focusing on finding innovative ways to promote en- institutions might compromise their environ- vironmental compliance and enforcement. Some mental protection efforts. The MP could place of these countries have similar institutions for envi- high demands for technical information and as- ronmental protection that have been granted more sistance on agencies with limited budget and or less power, independence and scope. Certain staff resources; aspects of Brazil’s MP could be replicated in other (iii) Legal certainty: There is little consistency in the countries, leveraging and strengthening existing response of prosecutors to similar environmen- institutions where the following conditions are in tal matters. Moreover, for TAC processes there place: is currently a lack of a standardized process 14 • Developed legal framework: Protective institu- and accountability mechanisms, and (iv) develop- tions need to be developed on the basis of a sol- ing specific tools for improving environmental per- id legal framework covering the country’s main formance, such as methodologies for quantifica- environmental challenges. tion of environmental damage and compensation, targeted conflict resolution techniques applied to • Protective institutional framework: Protective in- compliance agreements such as TACs, or perfor- stitutions need to have financial and operational mance standard mechanisms. The World Bank is independence (e.g., through automatic and fixed well positioned to provide public prosecutors or budget allocations, adequate legal tools, etc.) similar protective institutions with resources and and need to be subject to accountability in order technical assistance because of its ability to pro- to achieve the optimum level of enforcement. mote intersectoral dialogue and create discussion • Receptive judiciary: The judicial system should forums at high levels of decision making, and be- have adequate human and budget resources as cause of the technical and legal expertise the Bank well as incentives to address cases presented can offer. by protective institutions. Identifying Opportunities to Pilot the Public Pros- • Active and engaged civil society: Although civil ecutors’ Model or its Elements in Other Coun- society does not generally play a strong role in tries. Another area of support is to create the court proceedings or rulings, it plays a funda- windows of opportunity for sharing the lessons of mental role in initiating the process by drawing experience and piloting the protective institutions the attention of protective institutions to a par- approach in countries where this may be an appro- ticular case. priate model. An in-depth review of World Bank as- sistance in the area of strengthening legal frame- Technical Assistance to Strengthen Existing works and enforcement would show whether or Protective Institutions. Increasing the capacity not there is a need to create a specific compliance of public prosecutors (or a similar protective in- and enforcement product line in the environment stitution) to enforce environmental regulations is sector (e.g., a Country Environmental Compliance instrumental in enhancing environmental compli- and Enforcement Assessment). In addition, AAA ance and performance.14 One area of support is products are needed to deepen the understanding the provision of technical assistance to strengthen of the economic and environmental impacts of the the existing protective institutions by improving the MP program, as well as its potential replicability in process of setting priorities, facilitating better tar- other countries. geting of enforcement efforts, and improving the cost-effectiveness of the review process. In Brazil, the World Bank is providing technical assistance to the MP in the State of Minas Gerais, with the aim of: (i) modernizing and strengthening its pro- cedures and practices, (ii) enhancing coordination with other institutions, (iii) improving transparency 14 In addition, public prosecutors could become strategic allies in monitoring compliance with country and World Bank environmental and so- cial safeguards in investment operations. MPs in Brazil have actively monitored hydropower investment operations and their environmental impacts. 15 Overcoming Institutional and Governance Challenges in Environmental Management IV. Bridging the Gap Between Science and Decision Making to Address Climate Change in the High Andes This case study describes an innovative approach to Bank, together with a number of key partners, is environmental monitoring that could become part providing support to the network of hydrometeoro- of a much broader transformation in environmental logical agencies in the Andean countries in order to management. This transformation is beginning to monitor and model the status of tropical glaciers, occur with the impetus of climate change. Adapta- which are central to the economies of the Andean tion planning requires the integration of climate countries. considerations and response strategies across Glaciers along the tropical portion of the Andes sectors and government agencies. As highlighted (Venezuela, Colombia, Ecuador, Peru and Bolivia) in the 2010 World Development Report “Develop- are retreating and the length and area of all ma- ment and Climate Change,� the achievement of the jor tropical glaciers has fallen drastically in the last required levels of coordination calls for a “rethink- decades (see Table IV.1). This case study could be ing of the role of hydrometeorological services� and accompanied by a number of pictures from the be- the creation of a global climate service on the basis ginning of the 20th century until the present, and of the fledgling regional climate services.15 The re- even the most skeptical person would observe the port cites the Pacific Climate Information System inevitable: all those masses of ice melt from year as an example of a pioneering agency in charge of to year. Bolivia’s Chacaltaya ski station, the world’s providing a regional framework to integrate ongo- highest, has today become nothing but a gloomy ing and future climate observations, operational ski lift along bare rocks. The entire glacier is gone. forecasting services and climate projections. An- The shrinking ice masses serve as a visual warn- other innovative visualization and monitoring sys- ing, pinpointing the fact that future conditions will tem for Mesoamerica, SERVIR, has become the not be the same as current ones: some things will largest open-access repository of environmental have to be done differently. information. As shown in this case study, the World Table IV.1. Estimated cumulative loss for selected glaciers in the Andes Approximate cumulative loss over Glacier Country Reference period reference period (length or area) Antisana 15A Ecuador 1966-2005 300 m Antisana 15B Ecuador 1957-2005 450 m Yanamarey Peru 1948-2005 700 m Broggi Peru 1948-2005 940 m Pastoruri Peru 1980-2005 480 m Uruashraju Peru 1933-2005 850 m Zongo Bolivia 1948-2005 150,000 m2 Charquini-S Bolivia 1941-2005 360,000 m2 Chacaltaya Bolivia 1942-2005 195,000 m2 Source: Based on data provided by the Institut de Recherche por le Développement (IRD). 15 World Bank, 2010: pp. 296 and 333. 16 Besides their undeniable aesthetic value, glaciers state-of-the-art tools, through in-house capabili- provide important environmental services. Runoff ties and strong partnerships with cutting-edge in- from glaciated basins is an important element of stitutions worldwide, such as the Japanese Space the regional water budget, with direct impacts on Agency (JAXA), the Meteorological Research Insti- agriculture, water supply and power generation. tute of Japan (MRI), the National Oceanographic Runoff is also essential to the integrity of moun- and Atmospheric Administration of the US (NOAA) , tain ecosystems. The unique regulatory capacity of the French Institute of Research and Development glaciers is fundamental for the Andean region: gla- (IRD) and the Stockholm Environment Institute ciers accumulate fresh water in ice form during the (SEI). These institutions are partners in a number rainy season and slowly release it during the dry of Bank projects, and the Bank is now coordinating season, thus providing this vital element to moun- and jointly making this know-how available to the tain biomes, to agriculture in nearby communities, Andean countries to support them in their efforts to water supply to important urban areas at high to adapt to climate change impacts. altitudes (such as La Paz and Quito), and to hydro- The First Step of This Challenge is to Understand electric power. the Evolution of Glacier Cover Over Time. It is im- Climate change projections indicate that the situ- portant to fully understand the behavior of glacier ation will likely worsen. Extensive research has masses over the past century and relate them to shown that climate is becoming warmer in high- temperature changes. Knowledge of the past and altitude areas at higher rates than in lower areas of variation patterns provides useful insights into (Bradley and others 2006). The national implica- future changes in glacier mass, length, melting tions of ice-free mountains in the tropical Andes rates and consequently runoff. To do so, the World are very significant, challenging present water-use Bank, thanks to a valuable partnership with JAXA, patterns and associated economic activities. is providing high-definition Atmosphere and Land Observation Satellite (ALOS) images for selected In order to try to understand these changes and mountain ranges over the selected time periods to their implications for countries, the Bank has en- the participating countries. The participating coun- gaged in a number of knowledge and on-the-ground tries’ national hydrological and meteorological ser- adaptation to climate change projects in the re- vices (Institue of Hyrdology, Meteorology and Envi- gion, such as the Integrated National Adaptation ronmental Studies [IDEAM] in Colombia, National Program (INAP) in Colombia, and the Adaptation to Meterology and Hydrology Service [SENAMHI] in the Impacts of Rapid Glacier Retreat in the Tropical Bolivia and Peru, National Institute of Meterology Andes Project, which involves Ecuador, Peru, Bo- and Hydrology [INAMHI] in Ecuador) receive these livia and Colombia (World Bank 2008b). images, process them, and are able to model the evolution of glacier cover. Technology for Management Services The second step is to document actual changes Scientists have developed innovative modeling in glaciers and other meteorological parameters tools to monitor glacier changes and to inform deci- and relate them to runoff, hydrology and ecosys- sion makers on the likely consequences of a warm- tems. To do so, and with support from the Govern- er future. The World Bank has extensive expertise ment of Japan, eight high-altitude glacier moni- in the use and application of some of the latest, toring stations have been acquired, and donated 17 Overcoming Institutional and Governance Challenges in Environmental Management to the participating countries. These stations will ciers to temperature change. The model calculates reinforce the national monitoring networks and the Equilibrium Line Altitude (ELA), where glacier collect valuable data on both glacier and associ- accumulation balances with ablation, and predicts ated páramo (high moorland) ecosystem changes at which altitude in the future there will be ice and at high altitude. The stations will be operated and where there will be water. This has the potential to maintained by the respective national hydrological become a powerful tool to support strategic deci- and meteorological services, and information will sion making on matters such as irrigation infra- be stored in national and regional databases. The structure and reservoir locations; and more than data provide insights on current runoff patterns 20 scientists and personnel from local institutions and are essential to facilitate model calibration have been trained with Bank support to use this tool. and hydrological projections. Critical Element of Success—Management The third step and ultimate goal of the exercise is to predict the evolution of the glacier masses in Support of Technology in the short, medium and long terms. To achieve All previous efforts would fall short of what is need- this, the World Bank has partnered with the Meteo- ed without appropriate institutional arrangements rological Research Institute of Japan and relies on and prospective management. Closing the gap the projections generated by the Earth Simulator. between scientific information and decision mak- The Earth Simulator is the largest supercomputer ers is key, and the Andean countries are achiev- of its kind dedicated to climate simulations; it has ing it. Through the Bank project, all the national the capacity to run global circulation models and hydrological and meteorological services have provide extremely well-defined climate scenario re- been strengthened, thus providing them with extra sults for the region. Meteorologists of the partici- manpower and scientific tools. Through the project, pating countries attended workshops in Japan, fi- each service has been able to hire highly skilled nanced by the Japan–Bank partnership, have been consultants who assist in the development of sce- trained in the use of the Earth Simulator’s results, narios, vulnerabilities and future impact maps. The and have brought unique databases about expect- leading national and international scientists in this ed changes in their climate to their home institu- area have shared knowledge with other leading tions. These climate change simulations are now institutions around the globe, and have created a being used to create national maps of vulnerability virtual community of knowledge in which the latest within the participating countries, and to estimate findings are shared. The joint collaboration among present and future impacts of climate changes on the services of the four participating countries is water resources. The national meteorological ser- also key to mutual reinforcement, and workshops vices are superimposing future temperatures and are being planned to strengthen this link. rain patterns on economic activities, populated ar- eas and development plans. Once completed, the The connection between the national services and maps will become a powerful tool to guide strategic the decision-making bodies is the key link. The fo- decisions and sectoral planning in the participating cal points of the project are located in the Ministries countries. of Environment, which decide on the modalities of supporting their respective national meteorologi- In partnership with SEI, the Bank has developed a cal services and at the same time demand from unique model that simulates the response of gla- them tailored information to feed into land man- 18 agement plans, irrigation schemes, agricultural vironmental management is now well recognized. forecasts, and urban water supply needs, among The remaining challenge is to ensure that the re- others. The Ministries of Environment of the par- sults of technical modeling, monitoring efforts and ticipating countries collaborate with the Ministries scientific exchanges have a real impact on policy of Agriculture, Planning and Energy, which are seen making and reach decision makers. Another chal- by the project as the ultimate clients and users of lenge is to ensure that the collaboration continues the updated, high-quality information to help them beyond the life of a particular project or initiative. in mainstreaming climate change impacts into sec- Taking advantage of the focus on climate change toral planning and decision-making processes. to strengthen environmental information on old Moreover, the Bank is supporting the strengthen- environmental issues. The impetus to integrate ing and in-house capacity building of utility com- climate change adaptation measures in sectoral panies, such as metropolitan water supply and strategies has created a window of opportunity sanitation authorities. These are key stakeholders to place science at the core of decision making in managing national resources and need to make by Ministries of Environment and beyond. This important management decisions based on accu- case study shows how the meteorological agen- rate and tailored data. As an example, the Boliv- cies are becoming more closely integrated with ian National Water and Sewerage Utility (Empresa the decision-making processes in the ministries Pública y Social de Agua y Saneamiento, EPSAS), and utility companies. The efforts to strengthen servicing La Paz, has used glacier dynamics model- environmental monitoring can extend beyond the ing and climate predictions from the country’s Na- realm of projecting the effects of climate change, tional Meteorological Service to guide its decisions focusing mainly on deforestation and glaciers as in on its high-altitude reservoirs program. The utility’s this case, and can benefit the traditional environ- staff has participated in training activities to use mental agenda: the monitoring of air quality, wa- glacier retreat models directly applied to its glaci- ter quantity and quality, and land use. The Bank is ated basins. well placed to promote these initiatives and help the client countries to ensure that investments in Can this Approach be Replicated and What the capacity to strengthen climate monitoring also May be the World Bank’s Role? provide much-needed information for environmen- tal management in other areas. Bridging the gap between scientists and deci- sion makers by building North–South and South– South partnerships. This case study has focused on the role of environmental information and moni- toring as an element for strengthening environ- mental institutions and governance. The Bank has a relatively long track record of supporting collabo- ration and partnerships among client countries at the scientific level through knowledge products and by sharing the lessons of experience. The poten- tial for South–South cooperation to help achieve sustainable improvements in different areas of en- 19 Overcoming Institutional and Governance Challenges in Environmental Management V. Conclusion The three case studies presented in this paper • Promoting effective public communication of demonstrate successful approaches to strengthen- academic research, technical assessments, and ing the environmental institutions and governance policy objectives through a combination of com- along four dimensions thought to be the critical ele- munication campaigns, discussion forums and ments of successful transformation in environmen- reaching out to legislators, tal management: (i) better setting of environmental • Overcoming the bottlenecks in the implemen- policy priorities, (ii) strengthening regulatory and tation and enforcement of environmental regu- enforcement frameworks, (iii) improving access to lations is particularly challenging, and there is environmental information and its usefulness for a need to scale up support for innovative and decision making, and (iv) strengthening the role low-cost approaches to enforcement such as of civil society through providing clear forums and community monitoring and technical assistance mechanisms for public participation in environ- for out of court resolution mechanisms (such as mental decision making. Despite the lack of simi- Brazil’s TACs), larity in the context of the three cases, several rec- ommendations are cross-cutting: • Bridging a wide gap between scientists and de- cision makers in the government and private • Understanding the need to act at multiple levels sector would promote the much needed evi- to build stronger commitment to reform among dence-based setting of policy priorities in envi- different constituencies and find customized ronmental management, and culturally appropriate solutions, • Lastly, the climate change agenda has opened • Supporting a process of setting clear policy pri- a window of opportunity for the modernization orities based on solid technical assessments, of hydro-meteorological services, with success- and aligning earmarked resources and techni- ful examples in the region, and the chance cal assistance for the implementation of priority to strengthen the links with decision-making measures, should not be missed. 20 Annex Table 1. Steps Toward Achieving Successful 0utcomes for Air Quality in Colombian Cities, 2005–2010 Step Description The Initial Conditions Colombia has a long history of air quality management and favorable initial conditions for the reforms that have occurred in the last 5 years. Es- tablishment of first air-quality monitoring networks (1967); first emissions norm for fixed sources (1982); the 2000–2010 National Environmental Health Plan (PLANASA), etc. The Air Pollution Preven- The Action Plan for the implementation of this policy included two strate- tion and Control Policy gic directions: (i) institutional strengthening program for air quality man- (CONPES 3344, March agement; and (ii) the purchase and installation of air quality monitoring 2005) equipment and conduction of training. The diagnostic study of 7 monitor- ing networks, carried out in 2007, revealed the need to strengthen the networks and to develop and validate an air quality monitoring protocol in order to standardize measurements. Country Environmental The CEA’s findings on the high health costs of air pollution have informed Analysis (Prepared During the preparation of the 2006–2010 National Human Development Plan 2005 and Published in and are widely cited in the section on air quality management. The CEA’s 2006) by the WB findings have also been taken up by the media and by politicians (especial- ly Congressman David Luna who led a public campaign and later became an author of the draft Fuel Quality Law, which was approved by Congress). The 2006–2010 National The PNDH includes prevention and control of environmental degradation Human Development as one of the 6 strategic components. It foresees (i) the development of Plan (PNDH) by the GoC the National Environmental Health Policy (PISA) based on PLANASA; (ii) the creation of the National Intersectoral Technical Commission for the Pre- vention and Control of Air Pollution (CONAIRE) as the coordinating body for the design, implementation and evaluation of policies, strategies and poli- cy instruments in the area of air pollution control; (iii) the preparation and validation of protocols for air pollution monitoring networks to ensure con- sistency and comparability of pollution measurements for fixed and mobile sources, with overall coordination by IDEAM; (iv) strengthening of 15 air quality monitoring networks and a diagnostic study of 7 other networks by MAVDT; (v) issuance of emissions standards for fixed and mobile sources by MAVDT; (vi) 5 pilot studies to evaluate the effects of air pollution on health; (vii) the creation of the information system on air quality (SISAIRE), to be administered by IDEAM as part of the Environmental Information Sys- tem of Colombia (SIAC); (viii) development by MAVDT of economic instru- ments for reducing air pollution; and (ix) creation of monitoring criteria and indicators to facilitate compliance with norms. 21 Overcoming Institutional and Governance Challenges in Environmental Management Step Description Programmatic Sustain- The Project Development Objective (PDO) of this DPL series is to support able Development DPL the GoC’s efforts to improve the functioning of the National Environmental (SusDev DPL) Series (DPL System (SINA) and integrate the principles of sustainable development I in 2005, DPL II in 2007, into key sectors, with particular emphasis on protecting the most vulner- and DPL III in 2009) able groups. Total amount disbursed: US$900 million (US$150 million financed by the WB in 2005, US$200 million in 2007 and US$450 million in 2009). 3 of 18 indicators in the results framework and 5 triggers related directly to air quality management. The Sustainable Develop- The objective of this project is to support the design and implementation ment Investment project of policy reforms and related investments in line with the SusDev DPL (SusDevInv) and its Ad- program framework. Support has been provided in the areas of (i) the ditional Financing by the incorporation of environmental considerations in sectoral policies sectors WB (approved in 2005 that result in a high cost of environmental degradation; (ii) the implemen- and closing 3/2015) tation of policy measures for integrated water resources management; (iii) the optimization of urban development policy instruments; and (iv) the strengthening of planning, monitoring and oversight of national, regional and local environmental management and policies. The WB provided US$7 million in financing, with US$1.05 million in cofinancing by the GoC. The additional financing of US$10 million, with a 3-year extension of the closing date until 3/2015, has been approved. Air Quality and Noise Lev- Update of standards on air quality and noise levels, in agreement with el Standards by MAVDT international guidelines. As a result, work on an air quality monitoring pro- (Decree 979 and Resolu- tocol, pilot studies and a protocol for emissions inventories began in 2006 tion 601 of 2006) (as of March 2010, final drafts of these protocols are undergoing legal review). Supported by the SusDevInv Project. The Strategic Environ- The SEA on fuels was carried out to facilitate the preparation of an Action mental Assessments Plan for the implementation of the guidelines of the National Air Policy (SEAs) of (i) Transportation (CONPES 3344, approved in March 2005). The results of the Fuels SEA and Fossil Fuels, and (ii) were discussed during the November 2007 session of the Academic Fo- Environmental Health (fi- rum and informed the preparation of CONAIRE’s 2007–2010 Action Plan. nanced by the SusDevInv) 22 Step Description Resolution on Fuel Qual- These Resolutions, later ratified by the Law, regulate diesel quality by ity (Resolution 180158, establishing limits on sulfur content in transport fuels. Starting in January Followed by Resolution 2010, vehicles in Bogotá’s Public Mass Transit System are required to use 182087, December 2007) diesel and gasoline with a maximum sulfur content of 50 ppm. In the rest of Colombia, a more gradual reduction from 3,000 ppm to 500 ppm was envisaged from July 2008 to January 2010, with an eventual introduction of 50 ppm fuels starting in January 2013 for all of Colombia. Followed by the Fuel These Resolutions and the Law were developed by MAVDT and the Ministry Quality Law (Law 1205 of Energy and Mining, with the participation of ECOPETROL in the process, of 2008) that Ratified the in order to ensure that clean diesel would be available and thereby facili- Established Sulfur Content tate compliance with the Law. Limits Policy on Energy Sources The preparation of the “Guidelines for the Policy on Energy Sources includ- Including Liquid Fuels and ing Liquid Fuels and their Prices� was based on the inputs of the SEA on their Prices (December Fuels (2007). 2007) The Academic Forum The Academic Forum was organized in December 2007 with the objective Organized by MAVDT in of disseminating the findings of the SEA on Transportation and Fossil Fu- Collaboration with the els. It included 70 stakeholders from the government, academia and the University of the Andes (fi- private sector who were consulted in the process of the SEA’s preparation. nanced by the SusDevInv) This forum was organized by MAVDT in collaboration with the University of the Andes, with World Bank financial support through the SusDevInv Project. The National Intersectoral The main function of CONAIRE is the design and proposal of policies and Technical Commission on national strategies in the area of air pollution management for adoption by Prevention and Control of MAVDT. The commission includes the Ministries of Transport, Mining and Air Pollution (CONAIRE) Energy, MAVDT, and IDEAM, as well as the National Planning Department (DNP) and ECOPETROL as permanent observers. The commission has operational guidelines and formulates 4-year Action Plans with strategic directions, timeline and performance indicators. Two Regional Air Quality The purpose of these round tables is to obtain the information required by Round tables for Bogotá CONAIRE in its proposed interventions in the Action Plans and to strength- and Medellín en the management of monitoring networks. 23 Overcoming Institutional and Governance Challenges in Environmental Management Step Description Air Quality Monitoring A diagnostic study of 8 air quality monitoring networks, development of a Networks and Air Qual- monitoring protocol based on the results of this study, and purchase of air ity Information System, quality monitoring equipment for 16 environmental authorities (at a cost of SISAIRE (financed by the over US$2 million). This translates into an increase in the number of moni- SusDevInv) toring states by 30% and an increase in available monitoring equipment by 50% compared to 2005. Implementation of SISAIRE by IDEAM, which will make the data from all air quality monitoring networks in Colombia acces- sible on the web portal administered by IDEAM. Emissions Inventory, Envi- The following studies were supported by the SusDevInv Project: (i) Emis- ronmental Health, and Air sions Inventory: characterization of PM from point and mobile sources Quality Modeling Studies based on a pilot study, and development of a Protocol for Emissions Inven- and Protocols/Manuals tories and 10 manuals for future work on inventories; (ii) a pilot study in (financed by the SusDev- Puente Aranda in Bogotá—one of the areas with the highest air pollution in Inv) Colombia—as well as in Kennedy and Fontibon in Bogotá on the impact of air quality degradation on morbidity and mortality, particularly for children under age 5; (iii) development of a guide for air quality modeling; and (iv) air quality monitoring protocols. The National Environ- The “Environmental Health� and “Water Quality� SEAs provided inputs in mental Health Policy the design of the policy. Approval by CONPES was a trigger for the release (CONPES 3550, Novem- of the 3rd DPL. ber 2008) The National Air Pollution The policy was approved by CONAIRE in October 2008, and then by CNA in and Control Policy (Ap- December 2009. Approval by CONAIRE was a trigger for the release of the proved by CNA, December 3rd DPL. 2009) 24 References Andersson, K. and E. Ostrom (2008). “Analyzing World Bank (2003). Sustainable Development in a Decentralized Resource Regimes from a Polycen- Dynamic World. World Development Report. Wash- tric Perspective.� Political Science 41: 71–93. ington, D.C.: World Bank. Esty, D.C. and Porter, M.E. (2001). “Ranking Na- World Bank (2006). 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Cameron Management and Administration in the Brazilian May and the Institute for Governance and Sustain- Amazon Region. Washington D.C.: World Bank. able Development. North, D. (1993). Nobel Lecture. December, 1993. Ostrom, E. (2009). “Beyond Markets and States: Polycentric Governance of Complex Economic Sys- tems.� Nobel Lecture. December, 2009. 25 Publications from the LCSEN Occasional Paper Series Environment & Water Resources n Empowering Women in Irrigation Management: The Sierra in Peru (2013) n Environmental Health in Nicaragua: Addressing Key Environmental Challenges (Originally Published in 2010, Republished in 2013) (Available in Spanish and English) n Expanding Financing for Biodiversity Conservation: Experiences from Latin America and the Caribbean (Available in English (2012) and Spanish (2013)) n Overcoming Institutional and Governance Challenges in Environmental Management. Case Studies from Latin America and the Caribbean Region (2013) n Policy and Investment Priorities to Reduce Environmental Degradation of the Lake Nicaragua Watershed (Cocibolca) (Originally Published in 2010, Republished in 2013) (Available in Spanish and English) n Uncertain Future, Robust Decisions; The Case of Climate Change Adaptation in Campeche, Mexico (2013) To find copies of these publications, please visit our website: www.worldbank.org/lac 27 Latin America & Caribbean Region Environment & Water Resources Occasional Paper Series