Sector/Thematic Studies

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Economic and Sectoral Work are original analytic reports authored by the World Bank and intended to influence programs and policy in client countries. They convey Bank-endorsed recommendations and represent the formal opinion of a World Bank unit on the topic. This set includes the sectoral and thematic studies which are not Core Diagnostic Studies. Other analytic and advisory activities (AAA), including technical assistance studies, are included in these sectoral/thematic collections.

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Now showing 1 - 10 of 76
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    Distributing Carbon Revenues from Shipping
    (Washington, DC: World Bank, 2023-06-14) Dominioni, Goran ; Rojon, Isabelle ; Salgmann, Rico ; Englert, Dominik ; Gleeson, Cáit ; Lagouvardou, Sotiria
    International shipping accounts for nearly three percent of global greenhouse gas emissions. If no further action is taken, these emissions are set to grow significantly. Apart from reducing emissions, there is a strong call for shipping’s decarbonization to be equitable. In this light, the International Maritime Organization is considering a price on carbon. This could raise $40 to $60 billion annually in revenues between 2025 and 2050. The report discusses which countries could access carbon revenues, for what purposes, and on what terms. It argues that revenues should be used to decarbonize shipping, enhance maritime infrastructure, and support broader climate aims. This (mix of options to use carbon revenues) would speed up shipping’s transition to zero-carbon energy, help build the necessary infrastructure, lower maritime transport costs, and result in climate benefits beyond maritime transport. It would also ensure that all countries, including those with no shipping industry or ports, could access carbon revenues. By developing a smart and flexible framework, the report shows how carbon revenues could be distributed to maximize climate benefits and support an equitable transition.
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    Repurposing Agricultural Policies and Support: Options to Transform Agriculture and Food Systems to Better Serve the Health of People, Economies, and the Planet
    (World Bank, Washington, DC, 2022-01-24) Gautam, Madhur ; Laborde, David ; Mamun, Abdullah ; Martin, Will ; Pineiro, Valeria ; Vos, Rob
    The report finds that repurposing a portion of government spending on agriculture each year to develop and disseminate more emission-efficient technologies for crops and livestock could reduce overall emissions from agriculture by more than 40 percent. Meanwhile, millions of hectares of land could be restored to natural habitats. The economic payoffs to this type of repurposing would be large. Redirecting about $70 billion a year, equivalent to one percent of global agricultural output, would yield a net benefit of over $2 trillion in 20 years.
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    Towards a Trash-Free Addis Ababa: Pathways for Sustainable, Climate-Friendly Solid Waste Management
    (World Bank, Washington, DC, 2021-12-16) Xie, Jian ; Mito, Toshikazu
    Addis Ababa, Ethiopia, has experienced significant population growth and an increase in living standards for years, resulting in increased solid waste generation and solid waste management (SWM) challenges. Inadequate SWM in the city causes land, water, and air pollution as well as negative impacts on natural ecosystems, local economies, public health, social equality, and the global environment. Despite efforts made by the Addis Ababa government and some stakeholders, the city’s SWM systems urgently need to be upgraded and modernized. This report prioritizes and proposes a set of SWM interventions that Addis Ababa may include in its investment program over the next decade. The interventions are grouped in institutional strengthening, research and technical assistance, and physical investments. Additionally, the report designs three scenarios to implement the interventions for SWM in Addis Ababa: Business-as-usual, conservative, and aggressive. The changes in waste generation, treatment, and greenhouse gas emissions in 2020-2030 across the three scenarios were projected.
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    Clean Air and Cool Planet: Cost-Effective Air Quality Management in Kazakhstan and Its Impact on Greenhouse Gas Emissions
    (World Bank, Washington, DC, 2021-12) World Bank
    This report provides the first national-level approximation of priority sources and actions to address air pollution while maximizing synergies with climate mitigation and managing trade-off challenges. The study uses mean population exposure as the best approximation of air quality impact currently available. It is a scoping exercise to determine the least-cost priority measures to improve air quality and identify potential key synergies or trade-offs with climate change mitigation that can be managed through coherent application of air and climate protection policies.
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    The Cold Road to Paris: Mapping Pathways Toward Sustainable Cooling for Resilient People and Economies by 2050
    (Washington, DC: World Bank, 2021-10-26) World Bank
    The report provides insights into the relationship between cooling and already-agreed-upon climate and development goals; presents the barriers, critical step-changes, and solutions needed to accelerate innovation and transformation; proposes aspirational targets and actions for each decade with the aim of achieving net-zero GHG emissions from cooling applications by 2050; considers financing solutions; and suggests a framework for governments and the global cooling community to take action.
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    Nesting of REDD+ Initiatives: Manual for Policymakers
    (World Bank, Washington, DC, 2021-09) World Bank
    Tropical forest countries that seek to reduce deforestation and participate in REDD+ are being challenged to develop policies that conserve forests in the long term; create incentives for local actors to protect forests; and align forest policies with agricultural and rural development and other land-use policies. Developing a REDD+ implementation strategy requires consideration of government budgetary resources as well as the various types of international finance that are available to support REDD+. In assessing this landscape of potential funding sources, policymakers can determine which types of finance to access; which financing conditions they can realistically achieve; and within what time frame it can be done, given national circumstances and institutional constraints. Many countries are participating in, or hosting initiatives to reduce deforestation. Since 2007, when REDD+ was first considered in the negotiations of the United Nations Framework Convention for Climate Change (UNFCCC), several initiatives for implementing REDD+ have been developed. The REDD+ activities advanced under these initiatives have operated at various levels, ranging from the project level, (geographically demarcated areas within which an activity takes place), to subnational and/or country-wide programs. Many countries already have received, or are seeking, payments for subnational and national REDD+ results. Many of these same countries already host, or intend to host, REDD+ projects, which are usually developed by private actors.
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    Carbon Pricing for Climate Action
    (World Bank, Washington, DC, 2021-07-28) World Bank Group
    Carbon prices are needed to incorporate climate change costs into economic decision making. Carbon pricing should be included as part of a broader arsenal of tools to achieve domestic climate targets, but it is not a silver bullet: other policy instruments and investments (for example, public transport, power transmission infrastructure) are needed to complement carbon pricing and to enable consumers to respond to higher prices by switching to lower emission alternatives. A carbon tax can be effective in smaller economies with human capacity constraints and in jurisdictions with well-established and transparent tax frameworks. Emission trading systems may be chosen by larger, more established, and market-linked economies with political economy barriers to tax reform. Successful carbon pricing reforms require integrating many stakeholders’ considerations and increasing the capacity of governments and domestic businesses. The World Bank Group, through its climate change action plan, is well positioned to leverage its convening power, knowledge and research, and country program support to help countries make informed decisions on carbon pricing policies, their design, and implementation.
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    Assessment of Innovative Technologies and Their Readiness for Remote Sensing-Based Estimation of Forest Carbon Stocks and Dynamics
    (World Bank, Washington, DC, 2021-06) World Bank
    In 2005, the parties to the United Nations Framework Convention on Climate Change (UNFCCC) began to formally set up a framework for financially incentivizing emissions reduction due to deforestation and forest degradation through conservation, the sustainable management of forests, and enhancement of forest carbon (C) stocks in developing countries. Forest-related greenhouse gas (GHG) emissions, emission reductions, and enhanced removals (carbon sequestration) are estimated by measurement, reporting, and verification (MRV) systems, usually based on a combination of remote sensing data, field or in situ measurements, and modeling approaches. Under the UNFCCC, the lack of consistency limits the comparability between countries and makes the reconciliation of national reports and global estimates that are needed for the 2023 Global Stocktake under the Paris Agreements difficult. Moreover, the ongoing costs of MRV systems can be high, while the accuracy of the estimates is often low, and thus not able to unlock the full potential of climate finance. In this context, the World Bank launched a study to assess the readiness of various innovative technologies. The study began with a review of the current and potential innovative technologies in order to gain a comprehensive understanding of the readiness of these technologies, and the challenges to rolling out their implementation. As a result, a set of the main technological challenges, and recommendations for overcoming them, were identified.
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    The State of Cities Climate Finance: Part 2. The Enabling Conditions for Mobilizing Urban Climate Finance
    (World Bank, Washington, DC, 2021-06) World Bank
    The Enabling Conditions for Urban Climate Finance Part 2 is a contribution of the World Bank to the State of Cities Climate Finance Report 2021. Part 2 analyzes enabling frameworks and presents solutions for mobilizing urban climate finance at scale to transition cities to low-carbon, climate-resilient development pathways. It seeks to provide a common level of understanding of the terminologies, knowledge, and themes used by climate policy and climate finance practitioners, city-level urban planners, and municipal finance officials. It presents innovative and critical concepts on the roles and agency of city governments in climate action; the enabling conditions at the country, city, and climate transaction level; concrete practical examples, solutions and approaches and key recommendations for local, national, and international officials to mobilize urban climate finance at scale. The entire State of Cities Climate Finance Report, including the Executive Summary, is available here: https://www.citiesclimatefinance.org/2021/06/2021-state-of-cities-climate-finance/ .
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    North Macedonia: Environmental Tax Reform Options and Outcomes
    (World Bank, Washington, DC, 2021-06) World Bank
    This paper aims to contribute to the Government’s plans by highlighting key policy options for reforming the tax system to address environmental concerns. It does this through firstly assessing the existing tax system to understand the incentives and measures in place in relation to environmental issues. It then outlines key gaps in the tax system, including in relation to the direction of environmental tax policy globally and in the European Union. As part of this analysis, the paper outlines several policy findings, providing suggested enhancements to the existing fiscal framework to improve environmental performance and support green industries. In doing so, the paper draws from the policy principles that underpin a greening of the tax system, to help guide policy formulation. Indicative impacts of such policy reforms are estimated for key parameters. The paper provides this analysis in the context of the existing policy reforms that are planned and underway, such as the Tax System Reform Strategy (2021-2025), the Strategy for Energy Development of the Republic of North Macedonia until 2040 (October 2019), the Strategy on Environment and Climate Change for the period 2014-2020 (adopted in 2018, developed in 2014), the National Plan for Ambient Air Quality Protection (2012), and the 2017 National Emissions Reduction Plan prepared for commitments under the Energy Community. The paper focuses on the energy sector, specifically on the environmental issues associated with fuel use and how these are influenced by the taxation system. The use of energy, in particular the burning of fossil fuels and fuelwood, is the largest contributor to both greenhouse gas emissions and air pollution in North Macedonia. These have important effects on the environment, human health, and the economy. Reducing emissions from the energy sector is critical to North Macedonia meeting its emissions reduction target of 51 percent below 1990 levels by 2030, set out in its enhanced Nationally Determined Contribution (NDC) under the Paris Agreement. The enhanced NDC along with North Macedonia signing of the Sofia Declaration on the Green Agenda for the Western Balkans3, represents a significant shift in climate policy ambition and appetite for carbon pricing.