Environment Strategy for East Asia and Pacific
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Transcript of Environment Strategy for East Asia and Pacific
5 1Appendix A — Strategy Implementation Matrix
AAppendix A — StrategyImplementation Matrix
5 2 Environment Strategy for the World Bank in the East Asia and Pacific Region
S
trate
gy I
mp
lem
en
tati
on
Matr
ix
ST
RA
TE
GIC
FO
CU
S
IMP
LE
ME
NT
AT
ION
PR
OG
RA
M F
Y0
5-0
7
De
ve
lop
me
nt
Ob
jec
tive
E
nvir
on
me
nta
l
Ind
icato
rs
Ban
k F
oc
us
FY0
5-0
7
An
aly
tic
Wo
rk
Te
ch
nic
al A
ssis
tan
ce
an
d P
art
ne
rsh
ips
Fin
an
cia
l S
up
po
rt
1. Im
pro
vin
g t
he
qu
ality
of
life
I
mp
rovi
ng
urb
an
an
d p
eri
-u
rban
en
viro
nm
en
tal
co
nd
itio
ns
Pro
mo
tin
g c
lean
er
en
erg
y
so
urc
es a
nd
use
s
Haltin
g/r
eve
rsin
g t
he
d
eg
rad
atio
n o
f n
atu
ral
reso
urc
es o
n w
hic
h p
eo
ple
s’
live
liho
od
de
pe
nd
s
Re
du
cin
g v
uln
era
bili
ty t
o
natu
ral d
isaste
rs,
en
viro
nm
en
tal ri
sks,
an
d t
he
im
pa
cts
of clim
ate
ch
an
ge
Wa
ter
an
d s
an
ita
tio
n
co
vera
ge
U
se
of so
lid f
ue
ls
Urb
an
air
qu
alit
y (
fine
p
art
icu
late
co
ncen
tratio
ns)
De
fore
sta
tio
n r
ate
s
Lan
d d
eg
rad
atio
n r
ate
s
Wa
ter
qu
alit
y in
ma
jor
rive
rs
an
d la
ke
s
Wa
ter
ava
ilab
ility
pe
r ca
pita
En
ha
nce
th
e u
nd
ers
tan
din
g o
f e
nvi
ron
me
nt-
po
vert
y
linkag
es
an
d e
co
no
mic
co
sts
of
en
viro
nm
en
tal d
eg
rad
atio
n
Alig
n e
nvi
ron
men
tal
inve
stm
en
ts w
ith
pri
ori
tie
s a
nd
ta
rge
ts,
inclu
din
g M
DG
s
En
gag
e lo
cal co
mm
un
itie
s in
su
sta
ina
ble
en
viro
nm
en
tal
man
ag
em
en
t an
d c
on
se
rvatio
n
Re
fine
me
tho
do
log
y f
or
measu
rin
g e
nvi
ron
men
tal
ou
tco
me
s o
f B
an
k a
ssis
tan
ce
Po
vert
y-e
nvi
ron
me
nt
ne
xus
(PE
N)
stu
die
s in
Cam
bo
dia
, In
do
ne
sia
, Lao
s,
an
d V
ietn
am
(E
AS
ES
) E
nvi
ron
me
nta
l C
ost
Mo
de
l an
d
Valu
atio
n o
f E
nvi
ron
me
nta
l H
ealth
Ris
ks in
Ch
ina (
EA
SE
S)
Wa
ter
reso
urc
e m
an
ag
em
en
t str
ate
gie
s
(EA
SR
D)
Fo
rest
se
cto
r stu
die
s in
M
on
go
lia,
Ind
on
esia
, V
ietn
am
(E
AS
ES
an
d E
AS
RD
)
TA
activi
tie
s f
or
en
han
cin
g t
he
syn
erg
ies
be
twe
en
en
viro
nm
en
tal m
an
ag
em
en
t an
d p
ove
rty r
ed
uctio
n in
Ch
ina,
Ind
on
esia
, M
on
go
lia (
EA
SE
S a
nd
E
AS
RD
) E
nvi
ron
men
tal co
ntr
ibu
tio
n t
o P
RS
P
pro
ce
sse
s (
EA
SE
S a
nd
EA
SR
D)
Re
gio
nal le
arn
ing
on
main
str
eam
ing
e
nvi
ron
me
nt
an
d f
acili
tatin
g
pa
rtic
ipatio
n in
PR
SP
pro
ce
sse
s
(EA
SE
S)
Su
pp
ort
to
fo
rest
po
licy d
ialo
gu
e
(Cam
bo
dia
, In
do
ne
sia
, P
NG
, V
ietn
am
) (E
AS
RD
an
d E
AS
ES
)
In
cre
ased
le
nd
ing
fo
r u
rban
en
viro
nm
en
tal
infr
astr
uctu
re d
eve
lop
me
nt
(san
itatio
n,
waste
man
ag
em
en
t, u
rban
up
gra
din
g)
(EA
SU
R w
ith
EA
SE
S)
In
cre
ase
d le
nd
ing
fo
r a
cce
ss t
o c
lean
er
en
erg
y s
ou
rce
s (
EA
SE
G w
ith
EA
SE
S)
Part
icip
ato
ry f
ore
st
man
ag
em
en
t (E
AS
RD
an
d E
AS
ES
) S
usta
inab
le liv
elih
oo
d p
roje
cts
(e
.g.
in
Mo
ng
olia
) (
EA
SR
D w
ith
EA
SE
S)
En
viro
nm
en
tal p
olic
y c
om
po
ne
nts
in
P
RS
Cs (
EA
SE
S a
nd
EA
SR
D)
2. E
nh
an
cin
g t
he
qu
ality
of
gro
wth
I
mp
rovi
ng
po
licy a
nd
re
gu
lato
ry f
ram
ew
ork
fo
r su
sta
ina
ble
en
viro
nm
en
tal
man
ag
em
en
t I
nte
gra
tin
g e
nvi
ron
me
nta
l co
nsid
era
tio
ns in
to s
ecto
r p
olic
ies,
str
ate
gie
s,
an
d
pla
ns
Str
en
gth
en
ing
in
stitu
tio
nal
ca
pacity f
or
en
viro
nm
en
tal
reg
ula
tio
n,
en
forc
em
en
t,
an
d lo
cal g
ove
rnan
ce
E
nh
an
cin
g lo
ca
l e
nvi
ron
me
nta
l g
ove
rnan
ce
E
ng
ag
ing
th
e p
rivate
se
cto
r an
d c
ivil
so
cie
ty in
im
pro
vin
g e
nvi
ron
me
nta
l m
an
ag
em
en
t
Natu
ral re
so
urc
e p
ricin
g a
nd
ta
xatio
n
En
viro
nm
en
tal re
gu
latio
ns,
ch
arg
es,
an
d t
axe
s
Im
pro
ved
an
d a
ch
ieva
ble
e
mis
sio
n a
nd
fu
el q
ualit
y
sta
nd
ard
s
Effe
ctive
ne
ss o
f E
IA s
yste
ms
Re
gu
latio
ns a
nd
pra
ctice
fo
r S
EA
s
En
viro
nm
en
tal p
olic
y a
nd
in
stitu
tio
nal cap
acity
ind
icato
rs (
e.g
. C
PIA
ra
tin
g)
Ap
plic
atio
n o
f E
MS
(e
.g.
ISO
14
00
0),
an
d
su
sta
ina
bili
ty r
ep
ort
ing
in
itia
tive
s
Ava
ilab
ility
of p
ub
lic
en
viro
nm
en
tal in
form
atio
n
Re
fine
me
tho
do
log
y f
or
asse
ssin
g p
olic
y,
reg
ula
tory
, an
d in
stitu
tio
nal ca
pa
city a
nd
p
erf
orm
an
ce
at
the
co
un
try/s
ecto
ral/su
b-r
eg
ion
al
leve
l E
sta
blis
h m
ech
an
ism
s fo
r lo
ng
-te
rm e
ng
ag
em
en
t in
e
nvi
ron
me
nta
l p
olic
y d
ialo
gu
e
an
d in
stitu
tio
nal d
eve
lop
me
nt
Su
pp
ort
pu
blic
dis
clo
su
re
pro
gra
ms
Su
pp
ort
en
viro
nm
en
tal
aw
are
ne
ss b
uild
ing
S
up
po
rt p
rivate
se
cto
r
initia
tive
s fo
r e
nh
an
ce
d
en
viro
nm
en
tal m
an
ag
em
en
t an
d r
esp
on
sib
ility
An
nu
al E
nvi
ron
men
t M
on
ito
rs
in a
t le
ast
6 c
ou
ntr
ies
(in
clu
din
g In
do
ne
sia
, L
ao
, M
on
go
lia,
Ph
ilip
pin
es,
Th
aila
nd
, V
ietn
am
) (
EA
SE
S)
En
viro
nm
en
tal in
pu
t to
po
licy
no
tes t
o in
co
min
g
go
vern
me
nts
, in
teg
rative
an
aly
se
s,
an
d s
ecto
r stu
die
s
(EA
SE
S w
ith
SM
Us)
En
viro
nm
en
tal p
olic
y a
nd
in
stitu
tio
nal cap
acity
asse
ssm
en
ts (
e.g
. in
Ch
ina,
Ind
on
esia
, P
hili
pp
ine
s)
(EA
SE
S)
Co
un
try a
nd
oth
er
str
ate
gic
e
nvi
ron
me
nta
l an
aly
se
s (
e.g
. in
C
hin
a,
Vie
tnam
) (
EA
SE
S w
ith
S
MU
s)
En
viro
nm
en
tal p
art
ne
rsh
ip p
rog
ram
s:
Ch
ina-W
B-I
talia
n P
art
ne
rsh
ip fo
r E
nvi
ron
men
t, M
on
go
lia W
B-D
utc
h
En
viro
nm
en
t P
art
ners
hip
; T
haila
nd
C
ou
ntr
y D
eve
lop
men
t P
art
ners
hip
on
E
nvi
ron
me
nt,
WB
-Ko
rea E
nvi
ron
me
nta
l K
no
wle
dg
e P
art
ne
rsh
ip (
EA
SE
S)
EA
an
d S
EA
ca
pacity b
uild
ing
assis
tan
ce
(in
clu
din
g C
hin
a,
the
P
hili
pp
ine
s a
nd
Vie
tnam
) (
EA
SE
S)
ID
F g
ran
ts t
o s
up
po
rt e
nvi
ron
me
nta
l in
stitu
tio
nal cap
acity d
eve
lop
me
nt
(e.g
. in
Ch
ina,
Mo
ng
olia
, P
hili
pp
ine
s,
an
d
Vie
tnam
) (
EA
SE
S)
Re
gio
nal p
rog
ram
to
ad
dre
ss t
he
e
nvi
ron
me
nta
l an
d s
ocia
l im
plic
atio
ns o
f u
rban
an
d p
eri
-urb
an
de
velo
pm
en
t (E
AS
ES
with
EA
SU
R)
En
ha
nce
d lan
d t
en
ure
se
cu
rity
su
pp
ort
ed
b
y le
nd
ing
pro
jects
(E
AS
RD
) I
nte
gra
ted
wa
ters
he
d m
an
ag
em
en
t p
roje
cts
(E
AS
RD
with
EA
SE
S)
Pro
jects
su
pp
ort
ing
en
erg
y e
ffic
ien
cy
(EA
SE
G w
ith
co
ntr
ibu
tio
ns f
rom
EA
SE
S)
De
velo
pm
en
t P
olic
y L
en
din
g f
or
imp
rovi
ng
e
nvi
ron
me
nta
l p
olic
y a
nd
in
stitu
tio
na
l re
form
if
feasib
le (
EA
SE
S)
Ch
ina/B
an
k/G
EF
Su
sta
ina
ble
Urb
an
T
ran
sp
ort
Pro
gra
m (
EA
ST
R w
ith
EA
SE
S)
GE
F r
eg
ion
al la
nd
-base
d P
ollu
tio
n
Re
du
ctio
n F
un
d (
EA
SU
R w
ith
EA
SE
S)
3. P
rote
cti
ng
th
e q
uality
of
reg
ion
al an
d g
lob
al c
om
mo
ns
Im
ple
me
ntin
g r
eg
ion
al an
d
glo
bal e
nvi
ron
me
nta
l ag
reem
en
ts (
inclu
din
g
clim
ate
ch
an
ge
, b
iod
ive
rsity,
pe
rsis
ten
t o
rgan
ic
po
lluta
nts
) F
acili
tatin
g e
qu
ita
ble
so
lutio
ns t
o r
eg
ion
al an
d
glo
bal e
nvi
ron
me
nta
l p
rob
lem
s
CO
2 e
mis
sio
ns p
er
GD
P
Natio
nal an
d s
ecto
ral O
DS
p
hase
ou
t vo
lum
es a
nd
sh
are
s
Pro
tecte
d a
reas u
nd
er
su
sta
ina
ble
man
ag
em
en
t
En
gag
e in
re
gio
na
l e
nvi
ron
me
nta
l p
olic
y d
ialo
gu
e
an
d p
art
ne
rsh
ips in
pri
ori
ty
are
as
Facili
tate
re
so
urc
e a
nd
kn
ow
led
ge
tra
nsfe
r to
d
eve
lop
ing
co
un
trie
s
Use
GE
F r
eso
urc
es
str
ate
gic
ally
A
dd
ress e
me
rgin
g c
halle
ng
es
(e.g
. p
hase
ou
t o
f P
OP
s)
In
cre
ase
CF
tra
nsactio
ns
SE
As o
f cro
ss-b
ou
nd
ary
d
eve
lop
me
nt
(e.g
. M
eko
ng
su
b-r
eg
ion
) (
EA
SE
S w
ith
S
MU
s)
Asse
ssm
en
t o
f th
e
en
viro
nm
en
tal im
plic
atio
ns o
f th
e t
su
nam
i (E
AS
ES
) A
sse
ssm
en
t o
f th
e h
ealth
ris
ks
of P
OP
s (
EA
SE
S)
Oth
er
reg
ion
al e
nvi
ron
me
nta
l stu
die
s (
EA
SE
S)
Active
pa
rtic
ipatio
n in
th
e C
lea
n A
ir
Initia
tive
(E
AS
ES
, o
the
r S
MU
s,
WB
I,
EN
V)
Re
gio
nal fo
rest
po
licy d
ialo
gu
e o
n la
w
en
forc
em
en
t an
d g
ove
rnan
ce
(F
LE
G)
(EA
SR
D a
nd
EA
SE
S)
TA
on
clim
ate
ch
an
ge
ad
ap
tatio
n
(EA
SR
D)
TA
on
carb
on
fin
an
ce
(E
AS
ES
) C
on
trib
utio
n t
o r
eg
ion
al e
nvi
ron
me
nta
l p
olic
y d
ialo
gu
e (
En
viro
nm
en
t M
inis
teri
al
me
etin
gs,
AS
EA
N,
UN
EP
, E
NE
SC
AP
, G
MS
, M
RC
) (
EA
SE
S a
nd
SM
Us)
Ne
w O
DS
ph
ase
ou
t p
rog
ram
s in
Ch
ina
, In
do
ne
sia
, M
ala
ysia
, th
e P
hili
pp
ine
s,
Th
aila
nd
, a
nd
Vie
tnam
(E
AS
ES
) N
ew
PO
Ps p
hase
ou
t p
roje
cts
(C
hin
a,
Vie
tnam
) (
EA
SE
S)
Ne
w G
EF
gra
nts
($
70
mill
ion
/ye
ar)
fo
r
bio
div
ers
ity c
on
se
rvatio
n a
nd
re
ne
wa
ble
e
ne
rgy/
en
erg
y e
ffic
ien
cy (
EA
SE
S a
nd
o
the
r S
MU
s)
5-7
CF
tra
nsa
ctio
ns p
er
ye
ar
(10
0 m
illio
n
ton
s o
f C
O2 e
qu
ivale
nt
em
issio
ns
red
uctio
ns)
co
ntr
acte
d (
EA
SE
S a
nd
SM
Us)
1
4-1
7 C
F t
ran
sa
ctio
ns b
en
efit
ing
lo
cal
co
mm
un
itie
s (
EA
SE
S a
nd
SM
Us)
Not
es:
EA
SE
G:
Eas
t Asi
a an
d P
acifi
c E
nerg
y an
d M
inin
g U
nit
EA
SE
S:
Eas
t Asi
a an
d P
acifi
c E
nviro
nmen
t and
Soc
ial D
evel
opm
ent U
nit
SM
U:
Sec
tor
Man
agem
ent U
nit
EA
SR
D:
Eas
t Asi
a an
d P
acifi
c R
ural
Dev
elop
men
t and
Nat
ural
Res
ourc
es U
nit
EA
SU
R:
Eas
t Asi
a an
d P
acifi
c U
rban
Dev
elop
men
t Uni
tE
AS
TR:
Eas
t Asi
a an
d P
acifi
c Tr
ansp
ort S
ecto
r U
nit
53Appendix B — Active World Bank Projects and Environment and NRM Objectives
Year
(approved) Global
Financing IBRD / IDA ENRM %* Thematic Focus
Cambodia
Biodiversity and Protected Areas Management Project 2000 2.75 (GEF) 1.91 67 BD/EPI
Rural Electrification and Transmission Project 2003 5.75 (GEF) 40 CC
Forest Concession Management and Control Pilot 2000 4.8 100 BD/EPI/LM
China
Third ODS Phaseout Project (ODS III) 1995 120.1 (MP) 0 ODS
Gansu Hexi Corridor Project 1996 0 150 50 LM/PM/OTH
Yunnan Environment Project 1996 0 150 60 EPI/PM/WRM
Hubei Urban Environment 1996 0 150 63 CC / EPI / PM
Fuel Efficient Industrial Boilers 1996 32.81 (GEF) 0 CC
Fourth ODS Phaseout Project (ODS IV) 1997 350 (MP) 0 ODS
Wanjiazhai Water Transfer Project 1997 0 400 74 LM/PM/WRM
Inner Mongolia (Tuoketuo) Thermal Power Project 1997 0 400 60 CC/LM/PM
Energy Conservation Project 1998 22 (GEF) 63 86 CC/EPI/PM
Guangxi Urban Environment Project 1998 0 92 75 EPI/PM/WRM
Shandong Environment Project 1998 0 95 75 EPI/PM/WRM
Sustainable Coastal Resources Development Project 1998 0 100 60 BD/WRM
2nd Inland Waterways Project 1998 0 123 67 WRM
2nd Tarim Basin Project 1998 0 150 83 EPI
Irrigated Agriculture Intensification Loan II Project 1998 0 300 66 LM/WRM/OTH
Renewable Energy Development Project 1999 35 (GEF) 100 50 CC
Anning Valley Agricultural Development Project 1999 0 120 50 LM
Second Loess Plateau Watershed Rehabilitation Project 1999 0 150 80 LM/WRM
Hebei Urban Environment Project 2000 0 150 75 EPI/PM/WRM
Chongqing Urban Environment Project 2000 0 200 75 EPI/PM/WRM
Yangtze Dike Strengthening Project 2000 0 210 80 LM/WRM
2nd Beijing Environment Project 2000 25 (GEF) 349 80 CC/EPI/PM/WRM
GEF Passive Solar for Rural Health Clinics 2001 0.75 (GEF) 0 CC
Water Conservation Project 2001 0 74 60 LM/WRM
Liao River Basin Project 2001 0 100 100 PM/RM
Huai River Pollution Control Project 2001 0 105.5 100 PM/WRM
Sustainable Forestry Development Project 2002 16 (GEF) 93.9 BD
Energy Conservation Project (Phase 2) 2002 26 (GEF) 0 CC
BAppendix B —
Active World Bank Projectswith Significant Environment
and NRM Objectives
54 Environment Strategy for the World Bank in the East Asia and Pacific Region
Year
(approved) Global
Financing IBRD / IDA ENRM %* Thematic Focus
Lake Dianchi Aquatic Biodiversity Restoration Project 2003 0.98 (GEF) 0 BD/EPI
Shanghai Urban Environment Project 2003 0 200 50 EPI/LM
Gansu and Xinjiang Pastoral Development Project 2003 10.5 (GEF) 66.3 67 LM/OTH
4th Inland Waterways Project 2004 0 91 50 CC/WRM
Hai Basin Integrated Water & Environmental Man. Project 2004 17 (GEF) 0 WRM
Guangdong Pearl River Delta Urban Environment Project 2004 10 (GEF) 165 EPI/PM
Tai Basin Urban Environment Project 2005 0 61.3 86 EPI/LM/WRM
Lao People's Democratic Republic
Southern Provinces Rural Electrification Project 1998 0.74 (GEF) 34.7 CC
Sustainable Forestry For Rural Development Project 2003 9.9 50 LM
Mongolia
Lake Hovsgol Biodiversity Loss & Permafrost Melt Project 2001 0.8 (GEF) 0 BD/LM/EPI/WRM
Stove Improvement Project 2001 0.75 (GEF) 0 CC/EPI
Malaysia
ODS Phaseout Investment Project 1995 25 (MP) 0 ODS
Indonesia
ODS Phaseout Investment Project 1994 15.6 (MP) 0 ODS
Coral Reef Rehabilitation and Management Program (1) 1998 4.1 (GEF) 25 BD
Water Resources Sector Adjustment Loan Project 1999 0 300 74 EPI/PM/WRM
Berbak-Sembilang Project 2000 0.73 (GEF) 0 EPI/LM
Western Java Environment Project 2000 3.11 (GEF) 17.53 CC
Sangihe - Talaud Islands Project 2001 0.82 (GEF) 0 BD/EPI/LM
Forests and Media Project 2002 0.94 (GEF) 0 OTH
Water Resources & Irrigation Sector Man. Program 2003 0 70 50 WRM
Indocement Cement Project 2004 10.8 (CF) 0 CC
Coral Reef Rehabilitation and Management Program (2) 2004 7.5 (GEF) 56.5 58 BD/OTH
Papua New Guinea
Forestry and Conservation Project 2001 17 (GEF) 17.36 50 BD/EPI
Philippines
ODS Phaseout Investment Project 1994 30 (MP) 0 ODS
2nd Manila Sewerage Project 1996 0 57 50 PM/WRM
Water Resources Development Project 1997 0 58 100 EPI/WRM
Community Based Resource Management Project 1998 0 50 66 EPI/LM
Mindanao Rural Development/Coastal Res. Conservation 1999 1.25 (GEF) 27.2 BD
Land Administration and Management Project 2001 0 4.74 50 LM
Metro Manila Urban Transport Marikina Bicycle Network 2001 1.3 (GEF) 60 CC
Rural Power Project 2003 9 (GEF) 10
Electric Cooperative System Loss Reduction Project 2004 12 (GEF) 0 CC
Laguna De Bay Institutional Strengthening Project 2004 0 5 72 EPI/PM/WRM
Thailand
ODS Phaseout Investment Project 1994 45 (MP) 0 ODS
Building Chiller Replacement Project 2001 2.5 (GEF) CC/PM
Samoa
Marine Protected Areas Project 1999 0.9 (GEF) 0 BD/EPI/OTH
Vietnam
Forest Protection and Rural Development Project 1998 0 21.5 58 BD/LM
Ho Mun Marine Protected Area Pilot Project 2000 0.98 (GEF) 0 BD/EPI
Coastal Wetlands Protection and Development Project 2000 0 31.8 72 BD/LM/WRM
Conservation of Limestone Biodiversity Project 2001 0.72 (GEF) 0 BD/EPI
System. Efficiency Improv., Equitization & Renewables 2002 4.5 225 CC
Demand Side Management and Energy Efficiency Project 2003 5.5 5.2 CC
Green Corridor Project 2003 1 (GEF) 0 BD
Forest Sector Development Project - Supplemental Credit 2004 9 35.4 BD/OTH
Forest Sector Development Project 2005 0 39.5 100 BD/OTH
55Appendix B — Active World Bank Projects and Environment and NRM Objectives
Regional / Global
Mekong River Water Utilization 2000 11 (GEF) WRM
Towards a Lake Basin Management Initiative 2003 0.97 (GEF) CC/EPI/PM/WRM/OTH
Targeting Research for Coral Reefs 2004 11 (GEF) BD/OTH
Note: The list includes projects with at least 50 percent ENRM components. Abbreviations under Thematic Focus---BD: biodiversity, CC: climate change, EPI: environmental policy and institutions, LM: land management, PM: pollution management and environmental health, WRM: water resources management; OTH: other abbreviations under Global Financing---CF: carbon finance, MP: Montreal Protocol, GEF: Global Environment Facility * This column gives the estimates the percent of the Environment and Natural Resource Management component within the IBRD/IDA loan. Source: World Bank databases (Business Warehouse, environmental database, GEF and ODS databases)
Year
(approved) Global
Financing IBRD / IDA ENRM %* Thematic Focus
57Appendix C — GEF Assistance Strategy
The Region’s Current GEFPortfolio
The EAP Region’s client countries are currentlyimplementing 38 GEF co-financed projectswith a total of $275 million in GEF financing.Sixteen of the 38 projects are in the GEF’s Cli-mate Change Focal Area, accounting for $172million of the Region’s current GEF commit-ments. Another 16 projects are in the Biodi-versity Focal Area ($52 million); 4 are in theInternational Waters Focal Area ($39 million);and 2 are multi-Focal Area projects ($12 mil-lion) (figure C1 shows thematic portfolio dis-tribution). Half the Region’s GEF projects areco-financed by the World Bank, the rest exclu-sively by domestic and other internationalsources.
China has received nearly 50 percent of EAP’sapproximately $500 million in GEF resourcecommitments over the past 10 years. About
half of these resources has been devotedto reducing green-
house emissions,and the bal-
ance tobiodiver-
sity conservation and reducing marine pollu-tion. The GEF’s support to China’s climatechange program has been guided by the rec-ommendations of a 1994 SEPA/NDRC reportChina: Issues and Options in Greenhouse GasEmissions Control. Assistance for biodiversityconservation has focused on strengthening theprotected area system. Assistance in the inter-national waters thematic area initially focusedon ship waste management, but has shiftedtowards internal water pollution and over-useproblems.
Climate change-related projects represent thelargest share in the Bank’s GEF portfolio inother countries in region, too. This reflects cli-ent countries’ concern with energy-relatedenvironmental issues, as well as the resource-intensive character of their energy emissionreduction actions. From modest beginning,
CAppendix C —
GEF Assistance Strategy
58 Environment Strategy for the World Bank in the East Asia and Pacific Region
EAP’s Vietnam GEF program has expandedrapidly, in both the climate change and biodi-versity focal areas. In contrast, Indonesia’s pro-gram has shrunk, due initially to the Asian eco-nomic crisis and more recently to concernsabout governance issues in natural resourcemanagement.
The Region’s current GEF co-financed climatechange portfolio comprises an equal numberof renewable energy and energy efficiency pro-motion projects and a small urban transportand environment project. China, the Philip-pines and Vietnam are collectively implement-ing 70 percent of these projects. The Region’sGEF co-financed biodiversity portfolio focuseson strengthening protected area management,and China, Indonesia, and Vietnam are its prin-cipal recipients. The international waters port-folio promotes collaborative water resourcemanagement in the Mekong sub-region andmarine pollution reduction. The multi-focal
area portfolio addresses land degradation inChina, and contributes to the PRC/GEF/ADBChina Land Degradation Partnership Program.
Strategic Directions for theFuture GEF Assistance inEAP
The Region’s future GEF program will continueto reflect its clients’ priorities for GEF assistanceand the focus of the Region’s country assis-tance programs, and hence its comparativeadvantage, in each of its client countries. Thescale of the program will be constrained byGEF resource availability and is likely to re-main at roughly its current size, with new GEFcommitments averaging about $70 million peryear.
Key strategic objectives of EAP’s GEF assis-tance will be to:
1. Increase its impact on environmentally sus-tainable development in client countries byaligning GEF programs with the environ-ment strategy, and further integrating themwith the Region’s overall environmental as-sistance program;
2. Enhance the effectiveness of GEF opera-tions by increasing the use of long-term,programmatic and sector-wide approaches;and
3. Expanding to support regional programsand emerging new priorities.
Biodiversity22%
ClimateChange56%
Multiple FocalAreas
4%
InternationalWaters
18%
Figure C1 Thematic Br Thematic Br Thematic Br Thematic Br Thematic Breakdown of GEF poreakdown of GEF poreakdown of GEF poreakdown of GEF poreakdown of GEF portfolio in EAPtfolio in EAPtfolio in EAPtfolio in EAPtfolio in EAP,,,,,FY04FY04FY04FY04FY04
Source: Source: Source: Source: Source: GEF Database.GEF Database.GEF Database.GEF Database.GEF Database.
59Appendix C — GEF Assistance Strategy
In response to the Tsunami disaster the GEFis also investigating potential recovery needsand ways to assist client country recovery.Among the likely interventions are a GEF me-dium sized project to integrate biodiversityconsiderations into the recovery and rehabili-tation of Aceh province, Indonesia. Furtherinitiatives include the potential to develop aregional information sharing and collaborationplatform, which may be able to facilitate com-munity based awareness systems as part of alarger early warning system, through the Bayof Bengal Large Marine Ecosystem Project.
Within each focal area, the program will con-tinue to support a number of on-going clientprograms to promote environmentally sustain-able development, and will be adjusted to re-flect several new strategic priorities for GEFassistance that the Region’s clients have re-quested, as summarized below.
Climate change program. Over the next 3-4years, the Region’s GEF-co-financed climatechange program will continue to support twovery successful, on-going strategic initiatives:
♦ Environmental transformation of China’senergy sector through (a) the transfer of“clean coal” technologies; and (b) promo-tion of both renewable energy applications(especially wind and small hydro), and end-use energy efficiency.
♦ Supply of renewable electricity to isolatedrural communities which have little or noimmediate prospect of accessing the con-ventional electric power grid.
In addition, the climate change program willfeature two new strategic initiatives:
♦ GEF/Bank co-financed assistance to Hanoi,Vietnam; to Surabaya, Indonesia; and to theChinese Government and several majorChinese cities to help design and imple-ment environmentally-sustainable urbantransport strategies, action programs andinvestment projects. Efforts will be made tolink these activities with those of the CleanAir Initiative, including the application ofthe Interactive Database for EmissionAnalysis (IDEA) into these activities.
♦ GEF assistance to Kiribati, as part of a three-phase plan to identify its vulnerabilities toclimate change, and to adapt its develop-ment strategies and programs to reducethese risks. Over the next 3 years, the focuswill be on piloting measures to mainstreamadaptation in national economic planningunder the GEF Special Priority for Adapta-tion. This project may form a model for simi-larly threatened countries to integrate plan-ning for climate change into their develop-ment strategies and action plans.
Biodiversity conservation support. Over thenext 3-4 years, the Region’s GEF co-financedbiodiversity conservation assistance programwill promote the use of broader “sector-wide”and longer-term “programmatic” approachesto conserving biodiversity to overcome thelimitations of site-specific and shorter-termconventional projects.
60 Environment Strategy for the World Bank in the East Asia and Pacific Region
This approach will be piloted in Vietnamthrough the GEF co-financed protected areamanagement component of the recently-ap-proved Bank/GEF/Netherlands Forest SectorDevelopment Project. The project’s GEF co-fi-nanced component will establish and test along-term, national protected area conserva-tion financing and technical support systemthat, if successful, will attract multi-donor sup-port and become self-sustaining.
In the Philippines, where some recent biodi-versity conservation projects have had onlymixed success, the Bank will help the govern-ment and local conservation organizations todesign and mobilize GEF co-financing for anambitious sector-wide approach to sustainablenatural resource management and biodiversityconservation.
In China, the Bank will help Guangxi Prov-ince design the country’s first province-wideintegrated Bank/GEF co-financed forestry andnature reserve management project, and alsohelp the national government design and co-finance a long-term national protected areamanagement program.
International waters program. The Region’sGEF co-financed international waters programwill continue to support the development ofthe Mekong River Commission’s water qual-ity and water quantity management programsand to help the Mekong littoral states deepentheir collaboration on shared water resourcemanagement issues. In addition, jointly withthe South Asia Region, EAP will help the lit-
toral states of the Bay of Bengal to complete atrans-boundary diagnostic analysis of thethreats to this large marine ecosystem and toprepare a Strategic Action Program to addressthem.
The region’s small GEF co-financed land-based marine pollution reduction portfolio willexpand rapidly from just two on-going sub-national projects to a multi-country, regionalpollution reduction program, under which theRegion will mobilize GEF co-financing forlarge-scale pollution reduction efforts in 6-8regional land-based marine pollution hot-spots and sharply accelerate private investmentin pollution reduction measures.
Implementation of the GEF co-financed Straitsof Malacca Marine Electronic Highway Dem-onstration Project by Indonesia, Malaysia andSingapore will commence in 2005. This inno-vative project will establish and test the tech-nical, financial and economic feasibility of astate-of-the-art marine electronic navigationand environmental management system in adeveloping country context for the very firsttime.
Finally, EAP will sponsor the WB/GEF CoralReef Targeted Research and Capacity Buildingfor Management Project, the first phase of aglobal scientific coral reef stress diagnosis andmanagement program.
Persistent Organic Pollutants (POPs) phase-outprogram. In this new GEF focal area, the Bankwill help its clients to begin implementing the
61Appendix C — GEF Assistance Strategy
recent Stockholm Convention on POPs. As afirst step, it will help China design and mobi-lize GEF co-financing for two POPs manage-ment demonstration projects – (1) manage-ment and disposal of PCBs, and (2) alterna-tives to chlordane and mirex for termite con-trol. These projects are supplemented by other,non GEF funded activities, including the de-velopment of a PCB inventory and strategy forPDB destruction and disposal, and capacityenhancement to evaluate the impacts of ex-posure to POPs. Lessons from these activitieswill help China and other countries to designtheir national POPs management programs.
The Region will also explore opportunities toadd POPs phase-out assistance to some of itsbroader environmental management programsand partnerships, for example in Malaysia, thePhilippines, Thailand and Vietnam.
Sustainable land management. As this issue isan important concern of most EAP clients, theBank will explore its clients’ needs for addi-tional GEF support. Initially, these discussionswill focus on Cambodia and Vietnam in re-sponse to requests from these countries forsupport. It will also respond to additional cli-ents’ request as feasible.
63Appendix D — The Montreal Protocol Program
The World Bank plays a major role in assistingcountries to meet their national requirementsas Parties to the Montreal Protocol (MP). TotalMP commitments for the region amount to$559 million, and are expected to reach $620million by 2010. Commitments to China, whichis implementing the largest ODS program inthe world, account for more than 80 percentof this allocation.
The Bank’s MP program is now in its twelfthyear. While the Bank’s MP program reliesheavily on national execution of ODS phase-out programs, the Bank plays a pivotal role instrengthening our client countries’ policy andinstitutional framework, including local insti-tutions to support implementation. Operatingmodalities, policy instruments, and investmentprojects are developed in synchrony, so thateffective and innovative approaches can evolve.
Over the past decade, the EAP MP Programhas taken many innovative approaches tostrengthen the effectiveness of its implemen-
tation. For instance, China’s halon sectorplan was the first sector-
specific, policy- andperformance-
based in-st rument
approved by the Executive Committee of theMontreal Protocol to help phase out ODS. Itseffectiveness in achieving the phaseout targetshas made the performance-based approachand sector approach the preferred instrument.Starting in 2000, other countries and imple-menting agencies are also developing sectorplans rather than individual or umbrellaprojects. In countries with smaller ODS con-sumption, such as Malaysia, the Philippines,Thailand, and Vietnam, the region has pio-neered national CFC phaseout plans. Thismodality was adopted by the Executive Com-mittee for other regions.
The Thai Chiller Replacement Project, ap-proved in 1999, marks another innovation. Itwas the first attempt to combine efforts to sup-port the implementation of two internationalconventions, the Climate Change Convention
DAppendix D —
The MontrealProtocol Program
64 Environment Strategy for the World Bank in the East Asia and Pacific Region
and the Montreal Protocol Convention to re-duce greenhouse gas emissions and ODS.
Finally, the refrigeration sector plan in Indo-nesia is the first sector plan in MP operationswhose implementation requires a very closecooperation between the Bank and UNDP.
Strategic Directions for theFuture GEF Assistance inEAP
The MP program is now in a critical stage ofimplementation, with just six years left to com-plete the ODS phaseout in all countries. Dur-ing this period, the focus will be on:
1. Completing the shift to performance-based pro-grammatic approaches. Based on pioneeringwork in the region, the project-focused ap-proach is being replaced by performance-based programmatic approaches, where an-nual funding is released according to an-nual tranches.
2. Enhancing policy dialogue. All ODS-import-ing countries with National CFC Plans havemoved to quota systems restricting the im-ports of CFCs to licensed importers only.At the same time, the increase in prices re-sulting from reduced supplies has increasedthe pressure on illegal imports. Policy dia-logue at the national and regional level on
illegal trade implications has become in-creasingly important as part of the MP pro-gram. MP programs will also be linked withbroader environmental assistance programsand policy dialogue, for example in the con-text of the Country Development Partner-ship on Environment in Thailand.
3. Monitoring compliance with phaseout targets.The MP obligations are now in the “com-pliance” phase, and will require countriesto progressively reduce their national con-sumption to 50 percent of their baselineconsumption (1995–97 average) in 2005, 15percent in 2007, and zero in 2010. This isexpected to be a very difficult part of theprogram, as most of the easier projects havealready been completed, and the residualconsumption is largely in the informal orsmall -and medium-sized servicing andmanufacturing sectors. Therefore, duringthe coming years, it will be important toensure that annual national consumptiontargets are met, and that project implemen-tation proceeds on schedule so that enter-prises are not affected adversely by the de-crease in CFC availability. This implies con-tinued and intense supervision of projects,as well as increased focus on regional co-operation, including policy dialogue and in-formation-sharing between exporting andimporting countries, and training of cus-toms and other officials to prevent illegaltrade of ODS.
65Appendix E — Carbon Finance
Background
The Bank’s CF business builds on the provi-sions in the Kyoto Protocol for the cost-effec-tive market-driven transfer of emission reduc-tion credits from activities taking place in coun-tries participating in the Clean DevelopmentMechanism (CDM). The Bank has supportedseveral studies to explore CF potential in cli-ent countries (see, e.g., World Bank, GermanFederal Ministry for Economy Cooperation andDevelopment, the Swiss State Secretariat forEconomic Affairs, Trade and Clean, and theGovernment of the People’s Republic of China2004).
As the first major player in the market, theBank’s Prototype Carbon Fund (PCF) has beenable to significantly influence the emergingcarbon finance market, the way in which
projects eligible for trading carbon emissionreduction credits are prepared, the underlyingmethodologies for measuring baselines and
reductions, and setting the prices of emis-sion reductions. The
PCF and other Car-bon Fundsm a n a g e dby the Bank
are typically closed-end mutual funds with thesingle mandate of buying emission reductioncredits, and are presently committed to levelsof around $750 million. The targeted outcomesare to catalyze the carbon market and promotelearning-by-doing. he Community Develop-ment Carbon Fund specifically targets the cre-ation of community assets to accompany car-bon transactions.
The EAP region, in particular China, can po-tentially supply up to 50 percent of the totalemission reduction demand from the CDM,mostly through projects in energy(renewables), industry and solid waste man-agement. The largest CF opportunities arelinked mainly with the industry, energy andurban sectors, but there will also be some op-portunities to take CF into our client countrieswhere market mechanisms will not work.
EAppendix E —
Carbon Finance
66 Environment Strategy for the World Bank in the East Asia and Pacific Region
Community-based projects can be covered aswell.
Emerging CF Portfolio
CF is a relatively new area for Bank support inthe EAP region. In FY04, the first year of theprogram, the Bank focused on awareness rais-ing and capacity development among clientcounterparts, and identification of projects ina range of sectors. At the request of counter-parts, the Bank organized and/or participatedin workshops in China, Indonesia, Thailand,and the Philippines. Eight projects were iden-tified and taken up for development in FY04.Of these, the first (Indonesia, Indocement)Emissions Reduction Purchase Agreement(ERPA) was signed in June 2004, marking thefirst ever carbon transaction in the Bank’s port-folio in EAP. Two more ERPAs were signed inDecember 2004 in China and the Philippines.The China ERPA with the Jincheng AnthraciteCoal Mining Group Co., Ltd. will capture coalmine methane and utilize it for power gen-eration in Shanxi province. Under the agree-ment, the PCF will purchase 4.5 million tonsof carbon dioxide equvivalent over the next 7years. This is now the biggest ERPA the Bankhas signed world-wide, accounting for some10 percent of the PCF’s total capital, and it isalso the biggest contract in the market to date.The Philippines ERPA captures emission re-ductions from a wind farm project. In the com-
ing years, the region is moving to significantlywiden its engagement in CF operations.
Strategic Directions
While there are very encouraging signs thatthe CF market will continue to expand withthe entry into force of the Kyoto Protocol, thereis some uncertainty that makes it difficult toplan beyond the medium term (after the Kyotocommitment period). Under these uncertain-ties, the focus is to:
1. Integrate projects in the Bank’s lendingoperations. Particular focus is on landfills,where methane capture might provide thelargest conventional returns from CF, andCF could be linked with enhanced wastemanagement.
2. Diversify opportunities to gain experiencewith the various Bank CF windows, for ex-ample in the context of linking communitycarbon finance with community-driven re-source management. A possible ChinaHFC-23 project, targeting capture of a by-product with extremely high global warm-ing potential, is also under development,and when developed, this could be theBank’s largest ever global CF transaction.
3. Include CF in policy dialogue and partner-ships, for example in middle-income coun-tries. Dialogues have been initiated withMalaysia and Thailand.