Tordo, Silvana

Energy and Extractives Global Practice
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Fields of Specialization
Petroleum sector, Sovereign wealth funds, Strategic investment funds, Climate change adaptation finance
Energy and Extractives Global Practice
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Last updated January 31, 2023
Silvana Tordo is a Lead Energy Economist at the World Bank’s Energy and Extractives Global Practice where she co-leads the Extractives-led Local Economic Development (ELLED) program. Silvana’s publications cover a wide range of topics, including value creation by national oil companies, allocation of petroleum rights, oil and gas taxation, strategic investment funds, industrial policy, and climate-smart policies.

Publication Search Results

Now showing 1 - 2 of 2
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    Financing Solutions to Reduce Natural Gas Flaring and Methane Emissions
    (Washington, DC: World Bank, 2022-03-18) Lorenzato, Gianni ; Tordo, Silvana ; van den Berg, Berend ; Howells, Huw Martyn ; Sarmiento-Saher, Sebastian
    Global oil and gas emissions fell to historic lows in 2020 as a result of the decline in global demand associated with the COVID-19 (Coronavirus) pandemic. Data released by the International Energy Agency suggest that CO2 emissions are on the rise as energy demands increase after the pandemic. Whether emissions will rebound to precrisis levels largely depends on governments’ emphasis on clean energy transition in their efforts to reboot economic growth. In 2019, direct and indirect emissions from the oil and gas sector represented about 15 percent of the global energy sector’s greenhouse gas emissions. More than half of these emissions came from flaring and methane released during oil and gas operations. This book aims to create awareness of the business case for reducing gas flaring and methane emissions. It provides a framework for policy makers to evaluate the feasibility and financial attractiveness of flaring and methane reduction (FMR) projects, analyzes investment barriers, and identifies key variables and success factors, backed by lessons learned from case studies. Simplified financial modeling templates are suggested to help policy makers to assess FMR options. The book focuses on midsized flares that collectively represent 58 percent of the global flare volumes. These flares are typically too small to be prioritized by oil companies but still allow for profitable monetization. Smaller FMR projects are unlikely to be economically viable, unless clustered in larger projects or propelled by an enabling and compulsory regulatory framework. Large-scale capture projects require tailored projects, large ancillary infrastructure, government planning, and capital injections costing hundreds of millions of dollars. Although potentially attractive in terms of equity returns to developers, midsized flares face various barriers to the financing and execution of FMR solutions. Navigating these barriers requires project developers with specific FMR expertise, as highlighted through six detailed case studies discussed in this book.
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    Options for Increased Private Sector Participation in Resilience Investment: Focus on Agriculture
    (World Bank, Washington, DC, 2017-12) Tordo, Silvana ; Lorenzato, Gianni ; Zhao, Jing ; McEneaney, Kyle ; Sarmiento-Saher, Sebastian Phillip
    The presence of a revenue stream and a commercial return are an absolute prerequisite for investment for the private sector. However, often adaptation benefits or the value added (resilience) of adaptation investment are difficult to quantify in financial terms. There is no accepted methodology to price the adaptation feature of an investment, that is to quantify whenan investment has successfully adapted to climate change. While the risks from extreme weatherand climate change are clearly recognizable, and many investors see these risks in the present ornear term, uncertainty about the precise nature, timing and severity of climate impacts makes the return on investment of adaptation projects difficult to measure. In many cases adaptation is embedded into project design and engineering. The fact that the adaptation component is often not able to be separated, or treated as an add-on feature, has consequences for fund raising and project financing. Particularly for infrastructure projects, the difficulty in ring-fencing adaptation components, and the uncertainty around the time and magnitude of climate impacts, make it difficult to charge separate/properly priced tariffs. These difficulties are compounded in emerging and developing economies (EMDEs), where users’ ability to pay is limited. Blended finance solutions are used to make projects bankable by closing viability gaps. Blended finance consists in the complementary use of concessional (grants or low interest instruments) and non-concessional financing from public and private sources to make projects financially viable and/or financially sustainable. Applying this approach to climate finance allows leveraging of limited public funding, enhances the overall effectiveness of aid, and potentially triggers an increase in private investment once the long-term viability of a market is demonstrated. This report analyzes the potential and need for blended finance solutions in four economic sectors - water, agriculture, transport, and energy. For each economic sector, two broad classes of investment, infrastructure and value chains, are discussed. Investing in infrastructure or in value chains (that is, the range of goods and services that link the producer to the customers or end-consumer) requires different competencies, investment processes, project selection criteria, and attracts different classes of investors. Each investment theme is assessed for its resilience relevance and potential for commercial returns. An in-depth analysis of financing needs and potential blended finance solutions for resilience investment in the agriculture sector is presented, because of the economic relevance of agriculture in EMDEs, and its exposure to climate and natural hazards.