Integrating Environment into Development Policy: The World Bank's Experience with Country Environmental Analysis

1. Integrating Environment into Development Policy: The World Bank’s Experience with Country Environmental Analysis Sub-Regional Workshop for GEF Focal Points East and Southeast Asia Bangkok, April 2-3, 2007

2. Outline • Background: Trend towards diagnostic analyses • Bank supported environmental analytical work in East Asia • Country Environmental Analysis: An integrative environmental tool • Links with other tools and processes • Steps/Building Blocks • Examples of CEA

3. Background • Development community and Bank CDF emphasize: • country ownership, • partnerships, • focus on development outcomes, • good policy based on sound analysis • Need for broader environmental analysis is a part of this vision • Various diagnostic tools already in use, eg. Poverty and gender assessments • Tool required to integrate environmental concerns into country programming

4. Bank Supported Analytical Work on the Environment in East Asia • Environment Monitors • Studies on poverty-environment nexus for PRS: Cambodia, Mongolia, Vietnam • Health impacts and economic costs of pollution helped policy makers set priorities: China • Studies of CZM and fisheries management in Viet Nam; land management policy reform in Indonesia, Cambodia, China, Mongolia, Philippines • Strategic Environmental Assessment (SEA) – sector focused – env. impacts

5. Country Environmental Analysis (CEA): An integrative environmental tool • CEA: systematic, country-level diagnostic environmental analysis • Objectives: • Integrate environmental considerations (including global) into country-level development assistance strategies and programs • Open avenues for upstream discussion of key cross-sectoral policy issues behind a country’s environmental challenges • Guide capacity building and institutional reform efforts

6. Links with Other Tools and Processes • Draws on: • work on sustainability and environmental indicators • Country led analyses: NEAP, Strategic Environmental Reviews, National Strategies for Sustainable Development • Work undertaken by development partners • Could be underpinning for GEF RAF prioritization

7. Key Steps/Building Blocks • State of the environment and priorities for development • Policy analysis • Institutional capacity assessment • Scope: detailed or rapid • $50,000 to $200,000 • Collaboration with country and development partners

8. Examples of CEA • 10 completed world wide; 10 on going incl. Vietnam; Indonesia and Timor-Leste planned • Policy recommendations and identified WB and GEF follow up programs • Belarus • Egypt • Integrated environment into PRSP and CAS and identified WB and GEF follow up investments • Serbia and Montenegro • Led to institutional change • Tunisia decision to establish Ministry of Environment and Sustainable Development

9. Belarus CEA • Objective: To engage government and local stakeholders in dialogue on links between environmental management and underlying policy framework • Content: • Critical review of situation in water, energy, solid waste and NRM • Poverty dimensions of these areas • Macroeconomic linkages and long term sustainability • Recommended: policy actions in support of more environmental sustainability, and investments in above sub-sectors including GEF co-financing

10. Egypt CEA • Objectives: • Think piece to help government address MDG7: new tools for mainstreaming environment focusing on 4 priority issues • Included specific GEF Recommendations: • reducing methane in SWM • Protect pristine areas of the Red Sea from degradation enhancing coastal areas • GEF financing incentives for greater private sector involvement in sustainable development • Combating desertification and land degradation to improve water quality

11. Serbia and Montenegro CEA • Objectives • Review the existing situation, identify priority areas for policy changes and consider roles of government, private sector and donors • Assess macroeconomic-environmental linkages • Provide basis for defining the Bank’s long term involvement in the environment sector

12. Main Trends Identified • Deteriorating trends in water, sanitation and waste management • Threat of coastal zone deterioration in Montenegro • Air pollution hotspots • High energy efficiency • Excessive industrial pollution • Weak environmental management system • Transboundary water and global environment issues • Lack of sustainable forest management

13. Recommendations and Outcomes • Policy measures • Energy subsidies reduced • Water agencies agree on water charges • Identified key sectors for investment in short and medium term • donor support to build environment management capacity • Biodiversity strategy developed • Environment mainstreamed in CAS • Bank and GEF operations

14. Conclusions • Built knowledge base on environmental issues and priorities • Established dialogue with various government agencies during study • Clarify Bank’s comparative advantage in meeting the priorities • Establish donor coordination; and • Mainstream environment in sector operation thanks to integrated approach

15. GEF’S CHALLENGE

16. Further Information • http://www.worldbank.org/ • Search for CEA