Climate Change Program Manager, Kseniya Lvovsky, talks about the World Bank's efforts in mitigating and adapting to climate change.

Zunia: With widespread cynicism regarding the upcoming UN Climate Change Conference in Copenhagen, what do you hope will come out of it? What are some of your concerns?

Lvovsky: I believe that Copenhagen will demonstrate growing commitment of world leaders across the globe to address climate change. I hope it will provide an opportunity for developed countries to reaffirm their leadership on this issue , while recognizing that many developing countries are already contributing to a global solution and are willing to do more.

My concern is that the time is not on our side. Each year of delay increases the cost of actions, as well as limits the options available to keep the risk of severe impacts manageable.

Zunia: What are some of the most notable initiatives the World Bank is funding to combat climate change?

Lvovsky: The Word Bank has substantially intensified its efforts to support resilience to climate risk management and adaptation, a growing priority for developing countries. Projects that address climate risks span a range of interventions across all regions. Examples range from agriculture and rural development projects considering adaptation to increasing climate variability, such as floods and droughts, in Ethiopia, Malawi, and Nicaragua; and natural resources and water resource management programs in water scarce countries of the Middle-East to coastal protection in Bangladesh, Indonesia, Philippines and Vietnam.

We have significantly scaled up financing for energy efficiency and new renewable energy in the last five years. In the last year alone, new renewable energy and energy efficiency financing increased from $1,665 million in the previous year to $3,128 million— a 88% increase. When all hydropower projects are added, the WBG’s overall financing for renewable energy and energy efficiency is an all-time high of $3.3 billion in the fiscal year 2009.

Over the past year, we have mobilized substantial new funding from developed countries and worked closely with other MDBs, UN agencies and countries to make the Climate Investment Funds (CIF) operational. Approved in July 2008, the CIF have already stimulated the preparation of low carbon or climate resilient programs in over 20 countries.

Our work in helping countries access energy goes beyond financing. We couple financial support with technical assistance and knowledge to help countries make development decisions in a new reality of a changing climate.

Zunia: Human-induced climate change raises many profound ethical questions, yet many believe that these ethical issues are being overlooked or obscured in climate negotiations. It has been pointed out that those most responsible for climate change are not the same people as those most vulnerable to its effects. What can be done to ensure that climate justice issues are incorporated in policies and international negotiations?

Lvovsky: The most vulnerable and affected are often those who are not heard or well represented at decision making forums – this issue goes well beyond climate change. I have worked, for example, on local environment management issues and have seen the same problem within a country or even within a district. An important part of reaching a just and equitable solution is to help these stakeholders voice their opinion, convey their needs and articulate their vision. The World Bank has a major program on Social Dimensions of Climate Change which aims to communicate the needs and views of vulnerable countries and population groups to a broader development community. We have been supporting the African Union countries in assessing issues in climate negotiations that affect their development needs. We have engaged with the LDCs to help them articulate their own concerns better. We have regular consultations with indigenous people and NGOs to make sure we listen to and act upon their priorities. They are now represented on the governing bodies of the Climate Investment Funds (CIFs) and the Forest Carbon Partnership Facility, another innovative climate instrument we have developed. 4) What are some promising technologies that can help us mitigate or adapt to climate change?

For both mitigation and adaptation, a range of technologies is needed. The WBG, often in partnership with the GEF, is actively supporting the deployment of clean technologies in developing countries. The WBG has been working on the pre-commercial development of solar thermal power over the years. Two new solar projects are expected to be in operation soon --in Egypt and Morocco while a major Concentrated Solar Power initialize for the Mediterranean region is being developed for support by the Clean Technology Fund under the CIF. The IFC projects to support new renewable energy technologies in developing countries include a grid-connected solar cell facility in the Philippines, a fuel cell project in South Africa, and an advanced biomass power technology in Brazil. Most recreantly, we have launched a program, with donor support, to provide technical assistance for exploring CCS potential in developing countries.

In the area of adaptation, we –through the Consultative Group on International Agricultural Research (CGIAR) - are focusing on addressing climate risks and food security together, through support to new crop varieties, agricultural techniques, and modeling tools.

Zunia: What kind of policies are needed for countries to transition from an old energy economy to a new, clean energy economy? What are some countries that have successfully made that transition?

Lvovsky: I would like to stress that transition to a new clean energy economy is primarily a challenge for developed countries. These countries have to create a strong and sufficiently high price signal for carbon by taking ambitious emission caps, adjusting prices and incentives, and selling emission rights. Many developing countries, particularly the poorest, do not have an “old energy economy” – rather with electrification rates of 5-10% and 1.6 billion people without electricity access, they have “no energy economy”. The challenge for the international community is to help developing countries obtain the energy they need without aggravating climate change. Financing and tech transfer will enable developing countries to acquire new, low-carbon energy technologies and improve access to energy without jeopardizing efforts at growth and poverty reduction. All countries will benefit from promoting energy efficiency, rationalizing subsidies while protecting the social safety net for the poor, and improving regulatory frameworks for renewable energy.

Zunia: A recent World Bank study estimates that the costs of adaptation to climate change in developing countries will be in the order of US$75-100 billion per year for the period 2010 to 2050. This implies that the costs of adapting to a 2 degree warmer world are of the same order of magnitude as current Overseas Development Assistance. Are world leaders adequately addressing the financing options needed by developing countries to adapt to climate change?

Lvovsky: I am very glad that you referred to the Economics of Adaptation to Climate Change (EACC) study that indeed places additional global costs of adapting to climate change in developing countries on par with the total current ODA flows. It should be noted that this is one of a few studies that looks not at the costs of impacts but the costs of action to sustain development despite these impacts. Through this work, the World Development Report on climate change and other studies undertaken for different countries and regions, we would like to constantly remind policy makers on the pressing need for adequate financing for adaptation. Another important tool to bring attention to adaptation is the Pilot Program for Climate Resilience under the CIF which supports nine countries and two regional programs. The World Bank is also a trustee of the Adaptation Fund and helped monetize over $20 million dollars worth of CERs for this Fund. I feel that, while the funding gap is large, the imperative of adaptation financing is better recognized now than a few years ago. It is also being recognized that vulnerable, often small, countries need easily accessible financing options that are fully aligned with their development priorities. Scaling up financing for adaptation, together with knowledge and capacity, is a key area of focus in WBG strategy on development and climate change, and we will continue to work towards this objective, as well as reiterate its importance to our partners.

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Kseniya Lvovsky is leading the Climate Change Team in Environmental Department, overseeing the implementation of the Strategic Framework on Development and Climate Change and coordinating climate change related activities across the World Bank.