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monitoring system. The cattle-tracking system has beenmodified to track “lots” of animals rather than individuals.Throughout, the quasi-independent public prosecutor hasbeen an important catalyst of action.Deforestation has fallen steadily from 25,000 squarekilo meters in 2003 to 7,000 square kilometers in 2009;deforestation from September 2009 to February 2010 fellmore than 50 percent relative to the same months in theprevious year. It is too early to tell the degree to which thisis due to enhanced enforcement versus a decline in beef andsoy prices.ConclusionsIf the REDD agenda succeeds, countries, donors, and investorswill put up massive funds in hopes of conservingforests and fostering sustainable land management in a sociallyacceptable way. Guidance is needed for these large,novel, and complex ventures, which will take many yearsto implement. Unfortunately, the Bank’s long experience inrelevant areas is not well documented. However, some lessonsemerge from this review.Protected area creation has been effective, on average, inreducing deforestation. Creation of large protected areasin remote areas where deforestation is currently low hasbeen a farsighted strategy that could reduce future deforestationas roads and markets expand. Evidence suggeststhat sustainable-use protected areas are compatible withreduced deforestation and that indigenous areas (at least inLatin America) are extremely effective in preventing deforestation.Together with recent findings that protected areasmay reduce local poverty, this points to the compatibility ofREDD with sustainable development and suggests greaterattention on the maintenance and expansion of protectedand sustainable use forest areas is necessary.Payment for environmental services schemes could constituteone element of a REDD strategy, appropriate forareas where land and forest tenure is well defined. Projectexperience shows that countries can manage the logisticsof enrolling, monitoring, and paying service providers. Ensuringsustainable finance has been a problem, but REDDmay solve this. More challenging is devising targetingmechanisms and payment schedules that are socially andpolitically acceptable as well as cost-effective in providingcarbon storage and other environmental services.Chain-of-custody tracing was an inefficientway to monitor environmental compliance:if trees are what you care about, it is cheaperto watch the forest than to follow the cowson their long journey to the market.Promotion of sustainably intensified agriculture is the flipside of forest conservation. If more forest is to be conserved,farms, ranches and tree plantations must be intensified onexisting, perhaps degraded lands, to meet the demand thatis driving deforestation. Chain-of-custody certificationof forest-competing products has been seen as a way ofshifting private sector incentives to sustainability, withoutrelying on often-ineffective government enforcement. Buta private-sector-only strategy is also problematic, and thatchain-of-custody tracing is difficult and expensive.A combination of nongovernmental organization- triggeredpressure on buyers, an independent governmental advocateforenvironmental enforcement, and government sanctionshas been effective. A key technical feature has beenthe use of wide-area remote sensing rather than chainof-custodytracing. If trees are the focus of conservation,it is cheaper to watch the forest than to follow the cowsand beans on their long journey to market. This experiencecould have important implications for palm oil, timber,and other markets.60 | Climate Change and the World Bank Group
Chapter 5EVALuATioN HigHLigHTS• Over 2003–08, almost all WBG support for coalhas been in IBRD countries.• WBG support for coal power had no impacton technology choice; in one case it mayhave accelerated diffusion of more efficienttechnology.• Rehabilitation of old coal plants proved moredifficult than anticipated.• Technology transfer projects succeeded onlywhen they planned well for demonstration,learning, and diffusion.• Private recipients of technology transferare reluctant to share technology withcompetitors.• The World Bank’s Carbon Finance Unit wasimportant in catalyzing the emergence of thecarbon market.• The World Bank has largely not realizedsynergies between operations and carbonfinance.• A sequence of mostly unsuccessful GEFfinanced,IFC-implemented projects hassupported small-scale renewable energyenterprises.• The Bank moved into pilot areas of the carbonmarket as planned, but did not exit establishedparts of the market.Photo by Dana Smillie, courtesy of the World Bank Photo Library.
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Phase II: The Challenge of Low-Carb
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CLIMATE CHANGE AND THE WORLD BANK G
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Table of ContentsAbbreviations . .
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Figures1.1 GHG Emissions by Sector
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AcknowledgmentsThe report was prepa
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Executive SummaryUnabated, climate
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esettlement plans has been ineffect
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of some technologies, such as landf
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Scale up high-impact investmentsEne
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should have been strengthened in th
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Major monitorable IEGrecommendation
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Major monitorable IEGrecommendation
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Chairman’s Summary: Committee onD
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most places. Before we get there, w
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non-Annex I countries. The World Ba
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attention. In a couple of decades,
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GlossaryAdditionalityBankabilityBas
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Joint ImplementationA mechanism und
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Chapter 1evALuAtiOn HiGHLiGHts• T
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of interventions, from technical as
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would allow industrialized countrie
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growth, poverty reduction (includin
Page 45 and 46: Table 1.1 Map of the EvaluationSect
Page 47 and 48: Chapter 2eValuaTION HIGHlIGHTS• W
Page 49 and 50: Table 2.2Evaluated World Bank Renew
Page 51 and 52: Figure 2.2Breakdown of 2003-08 Low-
Page 53 and 54: Table 2.4 Commitments to Grid-Conne
Page 55 and 56: Box 2.1The Economics of Grid-Connec
Page 57 and 58: on average (Iyadomi 2010). (Reducti
Page 59 and 60: and industrial policy. An increasin
Page 61 and 62: Table 2.6Hydropower Investments by
Page 63 and 64: costs for remaining unelectrified a
Page 65 and 66: World Bank experienceTwo factors ac
Page 67: Box 2.5On-Grid and Off-Grid Renewab
Page 70 and 71: Energy EfficiencyThe first phase in
Page 72 and 73: Box 3.1ESCOs and Energy Performance
Page 74 and 75: have had limited causal impact on t
Page 76 and 77: measurement of achieved economic re
Page 78 and 79: Since the early 1990s, public entit
Page 80 and 81: part with a $198 million IDA credit
Page 83 and 84: Chapter 4eVAluATioN HigHligHTS• B
Page 85 and 86: The WBG urban transport portfolio (
Page 87 and 88: y conventional transport systems, i
Page 89 and 90: include the forest carbon projects
Page 91 and 92: for Costa Rica for the period 2000-
Page 93 and 94: After 20 years of effort, systemati
Page 95: orrowers have demonstrated the abil
Page 99 and 100: Consequently, the efficiency with w
Page 101 and 102: technologies could accelerate diffu
Page 103 and 104: A second issue, inherent to any adv
Page 105 and 106: goal of promoting wind turbine impr
Page 107 and 108: ConclusionsThe WBG’s efforts to p
Page 109 and 110: Table 5.1Carbon Funds at the World
Page 111 and 112: demonstration initiative. The Commu
Page 113 and 114: Impacts on technology transferThe 2
Page 115 and 116: Chapter 6Photo by Martin Wright/Ash
Page 117 and 118: Figure 6.1800Economic and Carbon Re
Page 119 and 120: Specifically, the WBG could:• Pla
Page 121 and 122: Table 6.1Summary of Sectoral Findin
Page 123 and 124: Table 6.1Sector Intervention Direct
Page 125 and 126: Appendix ARenewable Energy Tables a
Page 127 and 128: Table A.4Grid-Based Biomass/Biogass
Page 129 and 130: Table A.5 (continued)Negative examp
Page 131 and 132: Figure A.4A. Hydro/biomass capacity
Page 133 and 134: Appendix bWorld Bank Experience wit
Page 135 and 136: Table C.2Completed Low-Carbon Energ
Page 137 and 138: TAble C.4Reviewed energy efficiency
Page 139 and 140: the new capacity. Transmission syst
Page 141 and 142: Table E.2Climate obligationsCoal Pl
Page 143 and 144: Table F.2GHG objectiveModeNumber of
Page 145 and 146: IEG eliminated a few cases of doubl
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Table H.1Project andlocationBioener
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Appendix ICarbon and Economic Retur
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Appendix JRecent WBG Developments i
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y providing value to standing fores
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never had an explicit corporate str
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overnight. The Bank can provide ass
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Chapter 51. From the chief economis
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Hartshorn, G., P. Ferraro, and B. S
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______. 2007. World Development Ind
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IEG PublicationsAnalyzing the Effec
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