Heritage Stewardship – Climate Action – One Planet Summit
Global Covenant of Mayors and World Bank Announce Partnership, Securing Billions in Technical and Financial Assistance for Cities Executing Aggressive Climate Action Programs
World Bank partners with the Global Covenant of Mayors and will lend $4.5 billion USD to ensure 150 cities have the funds to implement initiatives to increase sustainability and resilience and fight climate change
Paris, France, 12 December 2017 – Today, at the One Planet Summit in Paris, the Global Covenant of Mayors for Climate & Energy and World Bank Group, the world’s largest multilateral development bank, announced a new partnership to provide technical and financial assistance to 150 cities across the world undertaking aggressive climate action programs.
The World Bank’s investment of $4.5 billion USD will ensure cities battling the increasing threats of climate change have the funding necessary to implement sustainable initiatives and climate resilience programs.
The partnership will help countries leverage the private sector by developing bankable business plans, structuring public-private partnerships to crowd in private sector investment, monetizing increases in land values, and designing and implementing credit enhancement mechanisms to allow commercial financing to cities.
The partnership brings together the largest global alliance of cities committed to tackling climate change with the world’s leading development institution to design and structure climate resilient investments and to catalyze new sources of capital to finance them in cities across the globe.
The lending will occur over the next three years under the umbrella of the World Bank’s City Resilience Program (CRP), and will draw on resources from IFC and MIGA to provide financial and technical assistance to 150 cities, including current and future Global Covenant cities, to drive climate ambitions forward and upwards and build greater resilience to climate and disaster risks.
The partnership will be inclusive and open to the full spectrum of investors, from multilateral development banks and international financial institutions, to institutional investors, private investors, and local commercial banks.
Ultimately, this collaboration between the Global Covenant of Mayors and the World Bank will help ensure cities realize the investment potential of their climate action commitments, and will have the ability to contribute to their government’s NDC investment plans in order to meet their Paris Agreement targets…
World Bank Group Announcements at One Planet Summit
Paris, 12 December, 2017 – At the One Planet Summit convened by President Emmanuel Macron of France, United Nations Secretary General Antonio Guterres, and World Bank Group President Jim Yong Kim, the World Bank Group made a number of new announcements in line with its ongoing support to developing countries for the effective implementation of the Paris Agreement’s goals.
1. WBG and upstream oil and gas
As a global multilateral development institution, the World Bank Group is continuing to transform its own operations in recognition of a rapidly changing world. To align its support to countries to meet their Paris goals:
The World Bank Group will no longer finance upstream oil and gas, after 2019.
(In exceptional circumstances, consideration will be given to financing upstream gas in the poorest countries where there is a clear benefit in terms of energy access for the poor and the project fits within the countries’ Paris Agreement commitments…
Q&A: The World Bank Group and Upstream Oil and Gas
Date: December 12, 2017 Type: Brief
Q. How will this decision impact the World Bank Group’s portfolio in upstream oil and gas?
Current projects in our portfolio would continue as planned. However, no new investments in upstream oil and gas would be undertaken after 2019, unless under exceptional circumstances as noted in the decision.
This decision underlines our stated commitments to help countries accelerate the transition to sustainable energy and our support for the Paris Agreement goal of keeping global temperature rise to below 2C.
Q. How is “upstream” oil and gas defined?
Upstream is an industry term that refers to exploration of oil and natural gas fields, as well as drilling and operating wells to produce oil and natural gas.
Q. What about countries that have energy needs? How does this decision impact them?
Technological shifts and evolving markets mean that for many countries there are now a wider set of low-cost options for countries to tap to strengthen energy supply and extend access to energy. In the past decade, solar photovoltaic costs have fallen by 80% and wind power costs have fallen 60%. For those countries with oil and gas resources, commercial financing is often readily available for exploration and production. In exceptional circumstances in the poorest countries where there is a benefit to energy access, the World Bank Group will consider upstream natural gas projects.
The World Bank Group will continue to provide technical assistance that helps our client countries strengthen the transparency, governance, institutional capacity and regulatory environment of their energy sectors – including in oil and gas.
The World Bank Group is committed to helping countries extend access to reliable, affordable and sustainable energy for all their citizens. We have a long track record of supporting the expansion and improvement of energy access, both on and off-grid – through power generation, transmission and distribution, support to the private sector, and technical assistance and policy work. Tens of millions of people have gained access to energy as a direct result of World Bank Group support, and we will continue this work.
Q. How does this affect World Bank Group projects in poor countries?
As stated, in exceptional circumstances in the poorest countries where there is a clear benefit to energy access, and this is consistent with countries’ NDC commitments, we will finance upstream natural gas projects.
Q. Will you continue your support of ongoing natural gas projects and why?
The World Bank Group will continue to support and finance midstream and downstream natural gas investments for transport and distribution to consumers and for power generation. In some countries, natural gas still plays an important role during the energy transition. Gas has the lowest CO2 emissions of any fossil fuel. We support natural gas as a flexible energy source that can help countries make the transition more quickly to renewables, expand access to energy for the poor, and displace carbon-intensive coal.