Latin America Changing Climate

1. Latin AmericaChanging Climate World Bank Engagement 2010

2. World Bank role in Latin America with respect to Climate Change The World Bank aims to help countries: • Better understand the issues (scientific, economic) • Formulate appropriate policies, regulations and legal frameworks to address the issues • Finance investments • Take advantage of concessional finance--carbon, GEF, CTF • Prepare to participate in international negotiations

3. Types of World Bank Support • Regional Studies • Country Specific Studies • IBRD/IDA lending • Technical Assistance • GEF grants • Carbon Finance • Other concessional financing (CTF, adaptation, other trust funds)

4. Regional and Country Specific Studies - Scientific In 2008-2009 financed a series of scientific studies to better understand impacts… Monitoring: • Impact of glacier melt on water supply, hydrology, ecosystems (Andean countries) • Increase in sea level and sea surface temperatures (Caribbean) • Impact on Corals (Mesoamerican Barrier Reef, Caribbean) • Impact on ecosystem functioning in paramos (Colombia) • Impact on water resources (Jamaica, Belize) Modelling • Impact on the Amazon ecosystem (Brazil) • Impacts on agriculture (Mexico, Uruguay, Peru) • Impacts on hydrologyand hydropower (Peru)

5. Example: Agricultural Vulnerability • Question: How vulnerable is LAC agriculture to climate change? What can be done to adapt? • Analysis suggests that: • For example, in Mexico, maize, which occupies 50% of total cultivated area, is the crop most susceptible to climate variability, particularly to droughts

6. Example: Mexico • Background: • Economics of CC • Medec • RIMISP • Subnational CC Plans • Key recommendations: • Preparedeness: Organization, Technical Capacity, Information, Early Warning Systems, Hillside Mgt • Food Security: Old and New Technology, Drought tolerance of maize, wheat varieties • Opportunities: corridors, silvopastoral, greenhouse

7. Regional and Country Specific Studies Economic/Social In 2008-2009 financed a series of economic and social studies to better understand impacts… • Overview Reports: World Development Report, LAC Regional Flagship • Economic Impacts of climate change on fisheries, agriculture, tourism, hydropower, etc. (Caribbean, Peru, region-wide) • Economics of Low-Carbon Alternatives (Mexico, Brazil) • Social Impacts on income (poverty), migration, health (Region-wide)

8. Example: Social Impacts Study • By 2050 number of people in water-stressed areas in LAC may triple from 22 to 76m people • Disproportionally affects the poor • Lack of water for domestic consumption and subsistence farming may lead to food insecurity, health problems, migration, conflict • Rising sea levels will force migration • 40% of Mexico’s population lives within 10 km of coast

9. Veracruz Campeche Q. Roo Tamaulipas Aumento del Nivel del Mar 1 a 5 metros en diferentes zonas costeras de México

10. World Bank in LACFinancing for Adaptation LAC portfolio: 6 activities, over $28.3m • Hurricane-proofing public buildings -- schools, hospitals, other essential services -- in Eastern Caribbean • Improving dike system to handle sea level rise and salt water intrusion – Guyana • Watershed stabilization and reforestation – Haiti • Using wetlands as tool to combat sea level rise – Mexico • Managing coastal zones through land use planning (DPL in Mexico) and pollution management - Argentina • Training and equiping health providers to deal with increased incidence of vector-borne diseases - Colombia, Brazil

11. World Bank in LACFinancing for Mitigation LAC portfolio: ~ 130 activities, over $2.8b Transport: • Regional Air Quality and Sustainable Transport (Mexico, Brazil, Argentina $20m) • Urban transport projects in most large cities-Rio,Sao Paulo, Buenos Aires, Lima, Santiago, Federal District of Mexico Energy Efficiency: • Supporting introduction of compact fluorescent lighting, appliances, air conditioning, new building codes (Argentina, Mexico, Brazil) • Reducing losses in transmission (Honduras, Uruguay) • Technical Assistance to reform policy and regulatory framework to encourage energy efficiency (Nicaragua, Honduras, Dominican Republic, Ecuador, Uruguay, Argentina, Guatemala) Renewables: • Mini-hydro power plants, off-grid rural electrification throughout Central America, Peru, and the entire region; wind in Colombia

12. World Bank: Carbon Finance in LCR Emission Reduction Purchase Agreements in Region • Total signed: 36 • Total value: US$ 126.3m • Total reduction in tCO2e:20.3m

13. World Bank in MexicoFinancing for Adaptation and Mitigation Policy: • Support to GOM's Climate Change Programs: DPL $501m • Environmental Sustainability DPL $700m • REDD strategy under the Forest Carbon Partnership Fund Transport: • Climate Friendly Measures in Transport $5.8m • DF Insurgentes Bus Transit Corridors • Urban Transport Program $700m (IBRD SIL, IBRD DPL, CTF) • Sustainable Transport and Air Quality $5.4m Energy Efficiency • FIRCO--Energy efficiency in agriculture and rural sectors $60.5m (GEF, IBRD) • Efficient lighting and appliances (IBRD, CTF, CF financing) $480m • Integrated Energy Services $30m (GEF and IBRD) Renewables: • Solar Thermal $50m (GEF) --Barrier removal and economic potential • Large Scale Renewable Energy--wind $37m (GEF and CF) • Integrated Energy Services $30m (GEF and IBRD)

14. World Bank in MexicoFinancing for Technical Assistance World Bank Support for Mexico’s Environmental Agenda Focus on Climate Change • Memorandum of Understanding (MOU) outlines support to: • Promote policy dialogue • Further strengthen capacity to mainstream environmental considerations into productive sectors • Support implementation of National Climate Change Strategy and Special Climate Change Program • Main activities • Methodology to evaluate effectiveness of environmental regulations • Support to possible establishment of a cap-and-trade system • Several sub-national climate change strategies • Energy Efficiency, Water Adaptation, Low Carbon Economy (MEDEC), Pro Poor Adaptation • Mainstreaming environment in housing and energy sectors

15. Thank you