Climate Change and the World Bank Group Phase 1: An Evaluation of World Bank Win-win Energy Policy Reforms (Independent Evaluation Group Studies)

Contents......Page 5
Abbreviations and Terminology......Page 9
Glossary......Page 11
Acknowledgments......Page 15
Foreword......Page 17
Executive Summary......Page 19
Management Response......Page 25
Chairperson's Summary: Committee on Development Effectiveness (CODE)......Page 31
Statements by the External Review Panel: Climate Evaluation, Phase I......Page 35
1 Introduction, Scope, and Motivation......Page 43
1.1 Intersection of Issues Related to Climate Change......Page 46
Three Approaches to Greenhouse Gas Mitigation......Page 48
1.2 Global and Domestic Benefits......Page 49
Scope and Methods of This Evaluation......Page 50
2 National Policies and Climate Change......Page 53
Energy, CO2, and Development: A Strong but Pliable Relationship......Page 55
2.1 How Policies Affect Energy-Related Emissions......Page 59
GHG Mitigation Need Not Compromise the Pursuit of Energy Access for the Poorest......Page 61
3 World Bank Operations and Climate Change......Page 63
Climate in World Bank Policies and Strategies......Page 65
Global Finance and Institutions......Page 67
3.1 Climate-Themed Projects by Sector Board and Funding Source, Cumulative, 1990–2007......Page 68
Strategic Considerations for the Bank: Accounting for Local and Global Impacts......Page 73
4 Subsidies and Energy Pricing......Page 81
The Problem with Subsidies......Page 83
4.2 Sensitivity of Energy Demand to Price......Page 86
4.1 Ghana and Indonesia: Using Social Safety Nets to Protect the Poor from Fuel Price Rises......Page 90
Energy Loans and Pricing......Page 92
4.2 Trends in Energy Sector Loans with Pricing Goals......Page 94
5 Efficiency Policies......Page 99
Overcoming the Barriers to Energy Efficiency......Page 101
5.1 Energy-Efficiency Investments......Page 103
Demand-Side Management......Page 104
5.2 Utility-Based DSM Projects......Page 106
Appliance Standards and Building Codes......Page 110
5.3 Heat Reform and Building Efficiency in China......Page 115
District Heating......Page 116
Conclusion......Page 117
6 Natural Gas Flaring......Page 119
Context......Page 121
The Global Gas Flaring Reduction Partnership......Page 123
6.2 Global Flaring: Comparison of GGFR Partner and Nonpartner Countries......Page 126
Conclusion......Page 128
7 Findings and Recommendations......Page 131
Findings......Page 133
Conclusion and Recommendations......Page 138
Appendixes......Page 141
A: Bank Attention to Subsidies in the Large Subsidizing Countries......Page 142
B: Energy-Efficiency Projects with Policy Components......Page 148
C: Distributional Incidence of Subsidies......Page 156
Endnotes......Page 163
References......Page 165
2.1 Emissions Intensities of Power Supply......Page 57
3.1 The $135 per Ton CO2 Price Is Already Here......Page 79
4.2 Ukraine: Gradual Energy Policy Reform and Decreasing Emissions Intensity......Page 91
4.3 Egypt: Policy Dialogue and Pricing Reform......Page 93
5.1 Rates of Return to Energy-Efficiency Projects......Page 105
5.2 DSM in Brazil......Page 108
7.1 The Challenge of Catalyzing Technology Adoption......Page 137
2.1 Per Capita Energy Emissions and Income, 2004......Page 56
2.2 Absolute Changes in Emissions and Income, 1992–2004......Page 58
2.3 Relative Emissions Are Higher in Countries with Diesel Subsidies......Page 62
3.1 World Bank Climate-Themed Projects and Commitments......Page 69
3.2 Real Energy Prices of Coal, Gas, and Oil, 1990–2008......Page 77
4.1 Conditionality Related to Petroleum Products......Page 88
4.3 Distribution of World Bank Lending Related to Electricity Power Pricing Policy, 1996–2007......Page 95
6.1 Recent and Planned Generation Capacity Additions by Fuel Type......Page 122
1.1 Topical Map of Issues in the Climate Evaluation Series......Page 47
1.2 IEG Evaluations Relevant to Climate Change......Page 51
2.2 Pathways from Policies to Emissions......Page 60
3.2 CAS Goals for Energy Policies and Climate Change Issues, 1995–2007......Page 70
3.3 Effect of Carbon Shadow Price on Generating Capacity Mix for South East Europe, 2020......Page 76
4.1 Fuel Subsidies Compared with Health Expenditures......Page 85
4.3 Outcomes of Loans with Electricity Tariff Goals......Page 96
5.1 A Typology of Efficiency Interventions......Page 102
5.3 Projects with Appliance Standard and Building Energy Code Components......Page 112