Tracking activities with Climate Co-benefits – MDB experience

1. Tracking activities with Climate Co-benefits – MDB experience October 2011 www.worldbank.org/climatechange

2. Context: Why a tracking system • Increasingly reliable, comprehensive and transparent reporting is needed to demonstrate that new climate finance instruments are not introduced at the expense of those targeting other objectives • Exact and comparable figures on additional contributions to fund incremental expenses are not possible to ascertain at low cost. • Need to continue to develop and improve Rio Markers

3. What is being tracked at WB ? • Tracks inputs (dollars of investments), as a percentage share of costs, for projects in the World Bank’s portfolio: • that provide direct climate adaptation benefits • that provide direct climate mitigation benefits • The shares for mitigation and adaptation are independent of each other and are made using a “without project” situation baseline. • The system does not measure nor report the amount of avoided carbon emissions nor increases in resilience that these investments yield. • Tracks lending and non-lending operations.

4. How is the tracking done at WB? • Project managers will apply expert judgment to assign the percentage share of costs based on guidance that includes step-by-step instructions, definitions and typology of WB activities with climate co-benefits. (Time requirement 5-15 minutes.) • Data will be reviewed centrally at time of project approval for quality assurance and control. • All assessments are carried out at the project sub-component level, the lowest level for which costs are available.

5. Examples of sector-specific guidance

6. Example: Sample Project to be coded….a $100 million Water supply & sanitation project

7. Analyzing the project based on guidance: Adaptation co-benefits = $50 million Mitigation co-benefits = $13 million

8. What is recorded in the system: • For each economic sector that is impacted by the project: • share of project commitments allocated to impacted sector. • share of allocation to impacted sector that contribute to adaptation co-benefits • share of allocation to impacted sector that contribute to mitigation co-benefits • System will aggregate data from projects to the portfolio level to report • Amount of commitments that provide adaptation co-benefits • Amount of commitments that provide mitigation co-benefits

9. Implementation of coding system • By end of calendar year 2011 • Detailed methodology and approach finalized • Initial results available for approvals in FY11 • Implementation in 2012 • Staff training • Integration of coding into the Bank data systems • Fully operational – July 2012