Climate Support Facility 2023 Annual Report Expanding Climate Ambition Across Sectors Vietnam, wind turbine tower construction. Photo: Lame Photographer © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions, including from the Climate Support Facility (CSF). The CSF is a multi-donor trust fund created to help developing countries accelerate their transition to low-carbon and climate-resilient development and elevate the decarbonization agenda. It is funded with contributions by the German Federal Ministry of Economic Cooperation and Development, the Foreign, Commonwealth and Development Office of the United Kingdom, and the Austrian Federal Ministry of Finance. The findings, interpretations, and conclusions expressed by World Bank staff or external contributors in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: World Bank, 2023. Climate Support Facility 2023 Annual Report: Expanding Climate Ambition Across Sectors. World Bank, Washington, DC. All queries on rights and licenses should be addressed to the Publishing and Knowledge Division, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover: Kaptai Lake, Bangladesh. Photo: Syed Mehedy Hasan Graphic Design: Miki Fernández | ULTRA Designs, Inc. CSF DONOR PARTNERS CSF OBSERVERS ACKNOWLEDGEMENTS Preparation of the Climate Support Facility (CSF) 2023 Annual Report was led by David Allen, Chris Lewis, Rissa Camins, Chirine Alameddine, and Michael Comstock, members of the CSF Program Management Unit. The report was drafted under the leadership of Sudharshan Canagarajah and Luis Tineo, CSF Program Managers. Contributions to the report were provided by fellow and former CSF team members, including Ahmed Al Qabany, Apoorva Shenvi, Charis Lypiridis, Christina Hamada, David Groves, Gillian Cerbu, Kamau Joseph, Rodrigo Martinez Fernandez, and Stefan Wolf. The team thanks Sudharshan Canagarajah, Practice Manager for the Climate Change Strategy, Knowledge and Outreach unit, for his guidance and review of the report. 4 ‹ Expanding Climate Ambition Across Sectors Lok Baintan River, Indonesia, traditional floating market. Photo: faisalities CSF Annual Report 2023 › 5 FOREWORD The urgency of addressing climate The devastating extreme weather events None of this progress would have been change has never been more evident. witnessed in the past year serve as an possible without the unwavering support Extreme weather events, from devastating urgent reminder of the need to better of our esteemed donors. I extend my wildfires to unprecedented hurricanes, integrate climate action and economic heartfelt gratitude to the German Federal have underscored the profound impact development. They have further Ministry of Economic Cooperation of our changing climate on communities reinforced the CSF’s resolve to work and Development (BMZ); the Foreign, globally, disproportionately affecting the hand in hand with partner countries, Commonwealth and Development Office poorest and most vulnerable groups. empowering them to build resilience and of the United Kingdom; the Austrian Tackling climate change requires well- respond effectively to the growing threats Federal Ministry of Finance; and the designed and inclusive policies to ensure posed by climate change. Through the Swiss State Secretariat for Economic that poor communities and marginalized Whole-of-Economy Program, we aim to Affairs. Your vision and commitment groups do not bear the brunt of climate equip nations with the tools, knowledge, have been instrumental in propelling impacts and that their needs are and resources necessary to future- the CSF’s mission forward, enabling us accounted for in the measures to address proof their economies and protect their to expand our reach and accelerate the them. citizens from the increasingly frequent implementation of transformative climate and intense impacts of climate-related projects. In the face of these challenges, I disasters. am pleased to present the Climate Even as we highlight our progress and The Whole-of-Economy Program achievements, we recognize that the Support Facility’s 2023 Annual Report, represents a profound step toward a scale of the climate challenge demands showcasing how the Climate Support more sustainable and resilient future. continued innovation and collaboration. Facility (CSF) has been a significant By collaborating with governments, The year has taught us the importance catalyst in advancing the World Bank’s the private sector, and civil society, we of building resilience and adaptability mission and commitment to climate are fostering a conducive environment into every aspect of society. As we action. The report demonstrates that, for green innovation and investment. venture into the future, the CSF remains with World Bank support, countries Global and country-level grants provide committed to forging transformative made significant progress in “greening” capacity-building and policy support partnerships, sharing knowledge, COVID-19 recovery efforts, and are to promote the adoption of sustainable and supporting countries to deliver now mainstreaming climate action more practices across industries and sectors. ambitious climate action. With support widely across their economies. From supporting the clean energy from our partners, we will redouble our transition, to advancing circular economy efforts to meet the evolving needs of In response to the evolving global solutions, and to rolling out nature- our client countries in addressing their landscape, the CSF embarked on based solutions, the Whole of Economy development priorities while being part of a transformative journey from 2022 Porgram embeds low-carbon, resilient the climate solution. through 2023. While the fund’s initial development at the heart of development. focus centered on supporting countries to “green” their recoveries from the Our Annual Report also showcases COVID-19 pandemic, it became quickly the remarkable progress made in evident that these types of considerations mainstreaming climate action in should be mainstreamed much more development planning. By integrating widely. This led to the creation of a new climate considerations into national Whole-of-Economy Program, a flagship and local policies, we are ensuring that initiative under the Green Recovery every decision made today contributes Initiative. This innovative program to a more sustainable tomorrow. The represents a paradigm shift in our CSF’s dedication to working closely with Jennifer J. Sara approach, as we now direct our efforts partner countries has fostered a sense of Global Director for the Climate Change toward greening entire economies, so ownership and empowerment, allowing Group that climate action more fully covers all nations to tailor their climate strategies to World Bank aspects of development. suit their unique circumstances. January 2023 6 ‹ Expanding Climate Ambition Across Sectors CONTENTS Acknowledgments 3 Foreword 5 Acronyms 7 Introduction 12 Global Context 12 Climate Action at the World Bank in 2022 12 CSF Program Outline 15 CSF Mission and Program Structure 15 CSF Key Priorities 15 CSF Programmatic Allocations 18 CSF Green Recovery Programs 20 CSF Green Recovery Initiative 20 Western Balkans Program 22 CSF NDC and LTS Support 23 NDC Implementation and Enhancement 23 NDC-Support Facility Closure and Legacy 23 Global LTS Program 25 CSF Whole-of-Economy Program 26 Global Analytics 26 Country Support 26 Economic Advisory Support 26 CSF Program Results 29 Green Recovery Outcomes 29 Development of a New Whole-of-Economy Program Results Framework 30 NDC and LTS Outcomes 31 External Partnerships and Visibility 33 NDC Partnership 33 Coalition of Finance Ministers 34 Green Recovery Technical Working Group 34 CSF Financials and Portfolio 35 Grant Portfolio Overview 37 Looking Forward 38 Whole-of-Economy Program 38 NDC and LTS Support 38 Western Balkans Program 38 Climate Systems Transitions 38 Annex A: Approved Activity-Level Grants 41 Annex B. Climate Support Facility Monitoring and Evaluation Framework – Pillar 1 63 Annex C. Climate Support Facility Monitoring and Evaluation Framework – Pillar 2 64 Yauyos, Peru. Photo: Christian Vinces CSF Annual Report 2023 › 7 ACRONYMS AFE Eastern and Southern Africa AFW Western and Central Africa ASA advisory services and analytics ASEAN Association of Southeast Asian Nations BMZ German Federal Ministry of Economic Cooperation and Development CBL Central Bank of Liberia CCAP Climate Change Action Plan CCDR Country Climate and Development Report CNCCMDL National Council for Climate Change (Dominican Republic) COP27 2022 United Nations Climate Change Conference CSF Climate Support Facility EAP East Asia and Pacific ECA Europe and Central Asia EU European Union EWS early warning system FY fiscal year G5 Sahel Burkina Faso, Mali, Mauritania, Niger, and Chad GDP gross domestic product GHG greenhouse gas GREEN Armenia Growth Recovery to Empower, Equip and Nurture Platform GRI Green Recovery Initiative HNP health, nutrition, and population IMF International Monetary Fund IPP independent power project LCR Latin America and the Caribbean LT-LEDS Long-Term Low-Emission Development Strategy LTS Long-Term Strategy M&E monitoring and evaluation MAC marginal abatement cost MEDPR Ministry of Economic Development and Poverty Reduction (Uzbekistan) MNA Middle East and North Africa MoEnv Ministry of Environment (Jordan) MRV monitoring, reporting, and verification NAP national adaptation plan NCA natural capital accounting NDC Nationally Determined Contribution NDC-SF NDC Support Facility NDCP NDC Partnership PFM public financial management PIM public investment management POV Poverty Global Practice PPP public-private partnership SAR South Asia SDGs Sustainable Development Goals SMEs small and medium-sized enterprises SOE state-owned enterprise Expanding Climate Action 8 ‹ Advancing Ambition Across Sectors Palawan, Philippines. Photo: © Joel Carillet CSF Annual Report 2023 › 9 THE CLIMATE SUPPORT FACILITY’S SECOND YEAR OF OPERATION Through December 2022 Received US$125 Approved Approved 169 million in contributions programmatic activity-level grants from four donors: the allocations of all worth US$52 million German Federal Ministry funds to seven World Bank supporting 104 of Economic Cooperation Regions and seven Global countries for analytical and Development; the Practices. tools and methodologies, United Kingdom’s Foreign, green recovery project Commonwealth and design and implementation, Development Office; the Western Balkans green Austrian Federal Ministry recovery support, economic of Finance; and the Swiss advisor support, Nationally State Secretariat for Determined Contribution/ Economic Affairs. Long-Term Strategy support, and the Whole-of- Economy Program. 10 ‹ Expanding Climate Ambition Across Sectors CSF SUPPORT FOR COUNTRIES $ 14.3M GLOBAL ALLOCATION $6.7M MNA $2.4M AFW $4.0M LCR $ 125M TOTAL SIGNED CONTRIBUTIONS 52M$ TOTAL APPROVED GRANTS CSF Annual Report 2023 › 11 $4.0M ECA $5.3 M ECA-Western Balkans $3.6M EAP $5.6M SAR $4.2M AFE $22.8M GREEN RECOVERY INITIATIVE (88 GRANTS) $5.3M WESTERN BALKANS PROGRAM (17 GRANTS) $14.6M NDC AND LTS SUPPORT (43 GRANTS) $7.5M WHOLE-OF-ECONOMY PROGRAM (20 GRANTS) 104 COUNTRIES SUPPORTED 12 ‹ Expanding Climate Ambition Across Sectors INTRODUCTION “We must turn a year of burning heat into a year of burning ambition. And accelerate climate action – now.” —UN Secretary General António Guterres, July 2023 GLOBAL CONTEXT Change served as a stark reminder for the World Bank as it links climate of the planetary emergency we face. action with development objectives. The climate crisis is here, escalating and Meanwhile, the 2022 United Nations The plan outlines several key climate impacting people. Emissions continue Environment Programme Emissions commitments the World Bank Group to rise, and dangerous tipping points are Gap Report highlighted a significant seeks to achieve, including prioritizing nearing. Not only have climate impacts gap between current emission actions in investing in people, nature, increased, but countries must also reduction pledges and the necessary and partnerships for better livelihoods manage these in the face of rising fiscal actions required to limit global warming and a just transition for all, through constraints, food and fuel shortages to well below 2 degrees Celsius above the transformation of five key systems often as a result of geopolitical crises, pre-industrial levels, as outlined in the that generate over 90 percent of while still overcoming the economic after Paris Agreement. It emphasized the global emissions and face significant effects of COVID-19. urgency for countries to scale up their adaptation challenges (energy; mitigation efforts and enhance their agriculture, food, water, and land; 2022 was not only the warmest Nationally Determined Contributions cities; transport; and manufacturing), year on record, but climate impacts (NDCs). and boosting support for countries also included devastating floods implementing and updating their NDCs in Pakistaken that inundated more The year also saw progress and and developing Long-Term Strategies than a third of the country, cost more breakthroughs, including the (LTSs). In 2022, the World Bank made than 1,400 lives, and highlighted the establishment of a loss and damage significant advances on other CCAP vulnerability of communities to the fund at the 2022 United Nations Climate commitments, such as increasing impacts of climate change. Wildfires Change Conference (COP27), aimed its share of climate finance, aligning raged on several continents. Heatwaves at assisting vulnerable countries financial flows with the Paris Agreement, gripped much of Europe, breaking and communities in dealing with the and identifying opportunities for high- temperature records and endangering irreversible impacts of climate change. impact climate action through publishing public health. Meanwhile, even as many Countries will now need to commit the first set of new country-level economies began to rebuild from the resources to ensure that the fund has the diagnostics. impacts of COVID-19, they began to feel financing necessary to support climate the far-reaching impacts of the war in First, the World Bank is helping to vulnerable countries, while at the same Ukraine. The conflict raised concerns address the mounting impacts of climate time continuing the rapid ramping up about energy security, particularly the change by increasing the amount of of the financing available for mitigation disruption of natural gas supplies to climate finance delivered year after year. and adaptation. Such resources are Europe, and exacerbated challenges in In FY 2022, the World Bank delivered critical in the short window that remains food, fuel, and fertilizer supply chains US$26.2 billion in climate finance.1 for avoiding the worst impacts of climate across the globe. Of this amount, nearly US$12.9 billion change and ensuring a climate-resilient specifically supports investments in and prosperous future for all. Amid these crises, the latest climate science underscored the importance CLIMATE ACTION AT THE 1 The World Bank Group, which includes the of dramatically scaling up action. The continued release of portions of WORLD BANK IN 2022 International Bank for Reconstruction and Development and the International Development the Sixth Assessment Report of the Association, delivered US$31.7 billion in FY 2022, The Climate Change Action Plan (CCAP) a 19 percent increase from an all-time high of Intergovernmental Panel on Climate 2021–25 continues to be the blueprint US$26.6 billion reached the previous fiscal year. CSF Annual Report 2023 › 13 adaptation and resilience. This record how new financing flows provided by the CSF’s operational framework since its amount of financing means that the World Bank would be consistent with launch in December 2020, as well as the World Bank is the largest multilateral the objectives of the Paris Agreement, CSF’s progress in establishing its Whole- financier of climate action in developing as well as a country’s pathway toward of-Economy Program and expanding countries. low-emission and climate-resilient on its other priorities (green recovery, development. The World Bank also NDCs, and LTSs) during the 2022 Second, the World Bank is integrating committed to sharing sector notes by calendar year. climate and development through a new the World Bank Group/IMF 2023 Annual core analytical product, the Country Meetings, illuminating how operational Climate and Development Reports teams will screen, manage, and reduce (CCDRs). CCDRs aim to capture climate risks for both mitigation and the intersection between a country’s adaptation for every project. These development goals and its national actions served to provide insight into the climate commitments, to identify World Bank’s methodology before its pathways for low-carbon, climate- commitment to align 100 percent of new resilient development. These reports operations starting on July 1, 2023. are prepared in close collaboration with key country-led stakeholders, including The Climate Support Facility (CSF) is governments, the private sector, civil directly promoting the implementation society, and development partners. In of the CCAP by supporting countries in 2022, 21 reports, covering more than accelerating their transition across the 25 countries, were published and a five key systems transitions. The CSF is synthesis report was launched at COP27. achieving this by embedding greening Moving forward, the World Bank plans recovery measures, taking a whole- to use CCDRs to inform the design of of-economy perspective to climate country partnership frameworks and action, providing specialized expertise projects supported by World Bank to governments on climate policies, and financing, as well as underpin the contributing to the development of key Resilience and Sustainability Trust data and analytics. Through this cross- lending of the International Monetary sectoral approach and coordination, the Fund (IMF). The World Bank is CSF is filling a critical gap for countries committed to preparing CCDRs in every seeking to do more on climate and country in which it works. These will be equipping them to implement necessary updated every five years to help to fill in reforms to achieve medium- and knowledge gaps as our understanding long-term development and climate of countries’ climate and development sustainability goals. needs evolves. The following sections outline how the Third, the World Bank presented its CSF aims to provide the integral support approach to Paris Alignment at COP27 required to deliver on these goals. This in the Arab Republic of Egypt, outlining report describes the evolution of the 14 ‹ Expanding Climate Ambition Across Sectors CSF Annual Report 2021 › 14 Cam Thanh village, Hoi An, Quang Nam, Vietnam Photo: GlobalIP CSF Annual Report 2023 › 15 CSF PROGRAM OUTLINE CSF MISSION AND commitments and climate priorities, As indicated in the CSF’s FY 2021 to including those outlined in the CCAP. FY 2023 Strategy and Work Plan, the PROGRAM STRUCTURE CSF will focus on ensuring that tackling In 2021, the CSF was specifically climate change is a core part of recovery The CSF is an umbrella multi-donor trust designed to leverage the World Bank’s from the socioeconomic crisis triggered fund administered by the World Bank’s lending portfolio and instruments to by the COVID-19 pandemic. During Climate Change Group. Launched improve green and resilient growth this time, the CSF will also explore in December 2020, the mission of outcomes for developing countries strategic opportunities to enhance the the CSF is to support developing “building back better” from COVID-19. support it provides to the World Bank’s countries in accelerating their transition To advance this work, the CSF has climate goals, while also strengthening to low-carbon and climate-resilient adopted the following definition of the capacity of World Bank teams to development and elevate the national “green recovery” to guide its work: integrate climate into lending operations. decarbonization agenda. The CSF aims to enable countries to: A holistic and inclusive response to the COVID-19 crisis that mainstreams CSF KEY PRIORITIES 1. Ensure that climate change climate change considerations into mitigation and adaptation are short-term economic recovery and Greening Recovery integrated as part of a whole-of- promotes climate-neutral and climate- economy approach to achieving The CSF was originally structured around resilient economic transformation aligned countries’ climate targets. two thematic areas: Green Recovery with the goals of the Paris Agreement Support and NDC/LTS Support (see 2. Enable governments to deliver and the 2030 Agenda for Sustainable figure 1). Since its launch, the CSF ambitious climate action through Development. has been providing dedicated support their NDCs. Using this definition, the CSF aims to fill to countries to incorporate climate 3. Help countries to take a long-term gaps in existing analytics and support considerations into their recovery efforts view of climate change as a core identification and design of new lending from the COVID-19 crisis and to sustain part of their development planning. or wider policy engagements for a the momentum on achieving their climate- low-carbon, resilient recovery. There related priorities. Originally composed The CSF is the Climate Change Group’s are limited resources for World Bank– of two programs—the Green Recovery dedicated fund for integrating long- executed analytical work that is not Initiative (GRI) and the Western Balkans term climate considerations into the directly part of project preparation or Green Recovery Support Program—a World Bank’s advisory services and a core diagnostic. The CSF helps to fill new Whole-of-Economy Program was lending operations, including support for this gap by providing resources for the launched in early 2022 (figure 1). This project preparation, and facilitating the type of analytical work that can underpin new program seeks to help developing integration of climate considerations into decisions on NDCs, LTSs, and COVID-19 countries to tackle climate change all World Bank policies and investments. recovery plans. through an economywide approach and The CSF is also a key contributor undertake cross-sectoral policy reforms to achieving World Bank corporate to deliver on their NDCs and LTSs. FIGURE 1. CSF Program Structure Green Recovery Initiative Whole-of-Economy Program Global Analytics Project Design Country Support • Capacity Building Western Analytical Tools and • Coalition of Finance NDC and LTS Balkans and Implementation Ministers Support Program Methodologies Support Economic Advisory Support Source: World Bank. Note: CSF = Climate Support Facility; LTS = Long-Term Strategy; NDC = Nationally Defined Contribution. 16 ‹ Expanding Climate Ambition Across Sectors The GRI has been instrumental in The Whole-of-Economy Program is NDC and LTS support helps to identify leveraging World Bank dialogue and designed to reinforce these sectoral countries’ Paris Agreement-aligned operations undertaken during the efforts by creating the enabling development pathways and priority pandemic’s rescue and recovery phases environment for an economywide policy interventions and investments. to advance climate-related reforms and transition (box 1). The GRI has The CSF’s support for these national investments in countries. By building advanced its priorities at two levels: climate plans reflects the World Bank’s on countries’ immediate economic (i) at the country level, project design efforts to mainstream climate into its priorities, the GRI has enabled them and implementation, and (ii) at the development operations, in line with to: (i) embed climate considerations global level, analytical tools and the CCAP. Grants approved under this in their economic recovery plans, (ii) methodologies. The Whole-of-Economy thematic area build and capitalize on undertake climate-related reforms and Program takes a similar approach the World Bank’s existing engagements climate-smart investments, and (iii) lay through its (i) country support, (ii) in client countries and contribute to the economic advisory support for World Bank’s efforts to align financing the groundwork for ambitious climate countries, and (iii) global work. with the Paris Agreement. action in the long term. As the pandemic recedes, countries are moving away Support provided on NDCs and LTSs from short-term economic recovery The Western Balkans Program assists is focused on three main themes: (i) measures and instead integrating client countries in the region to deploy enhancing NDCs through analytics the long-term economic impacts of policy and regulatory instruments and advisory services that provide the the pandemic into their development that promote more sustainable and basis for strengthening NDC targets planning efforts. Within this global resilient growth paths, design integrated and measures; (ii) implementing NDCs context, the GRI’s focus has evolved approaches to air quality management, by supporting NDC implementation from assisting developing countries in and mainstream climate resilience in key planning, sectoral policy analysis, rebuilding better from the COVID-19 sectors. budgeting/financing, and governance/ pandemic to mainstreaming ambitious monitoring frameworks; and (iii) climate action in sectors such as NDC and LTS Support developing LTSs through stakeholder agriculture and land use, cities, energy, The CSF also supports countries to engagement, macroeconomic modeling, and transport, which are critical for enhance and implement their NDCs policy analysis, and development the low-carbon and climate-resilient and develop LTSs in line with mid- of sectoral emissions/development transition. century decarbonization targets. This pathways. BOX 1 WHOLE-OF-ECONOMY APPROACH TO CLIMATE CHANGE In recent years, there has been increasing climate impacts will require economywide that guide fiscal policy; (ii) integrating interest and readiness among national policy reforms, such as correcting climate planning into national budgets and subnational governments, financial distorted prices, macrostructural barriers, and expenditure frameworks; (iii) regulators, ministries of economy and and financial sector distortions that hold embedding climate objectives in financial finance, as well as central banks to back action across sectors. engage more deeply in climate action. This sector regulations and incentives; (iv) reorientation reflects the recognition of the The World Bank Group Climate Change incorporating climate objectives in implications of climate change’s impacts Action Plan for 2021–25 prioritizes systems planning, to integrate climate on growth, macroeconomic conditions, a “whole-of-economy” approach with economic, social inclusion, and other and finance. It is also an acknowledgment that focuses on policies and plans to objectives; and (v) embedding climate that development must be compatible create the right enabling environment with decarbonization and climate- for climate action. This constitutes objectives in enabling environment policies resilient pathways. Decarbonizing whole (i) embedding climate priorities in and reforms to attract private sector economies and making them resilient to country macroeconomic frameworks investment. CSF Annual Report 2023 › 17 Farmland near Quito, Ecuador. Photo: Andrew Linscott 18 ‹ Expanding Climate Ambition Across Sectors CSF PROGRAMMATIC ALLOCATIONS The CSF allocates its resources in a Allocations for the World Bank low-emission and climate-resilient strategy and work plan that is updated Regions aim to mainstream low- development into their sectoral annually and endorsed by all donors. emission and climate-resilient portfolios. These resources also For most CSF programs, resources development considerations in enable the Global Practices to are designated through programmatic countries’ economic recovery efforts respond to ad-hoc country requests or “block” allocations to eligible World by leveraging the World Bank’s in their area of expertise. A major Bank implementing partners. These country engagements and lending area of focus of the CSF’s support programmatic allocations provide a operations. They also support client to the Global Practices has been funding envelope to operational units countries’ efforts to enhance and around developing climate-informed that can then prepare a pipeline of achieve the climate targets outlined macroeconomic, fiscal, and financial individual grant activities. The Western in their NDCs and develop LTSs to tools that can support green Balkans Window is the sole CSF program decarbonize their economies. These recovery, which in turn can influence that allocates grant funding through an grants identify activities to be funded open call for proposals. according to regional priorities in line a critical and significant part of the with the World Bank’s CCAP, regional World Bank’s lending portfolio. CSF funding provides World Bank climate action or business plans, and operational teams, in both the Regions the development objectives of the In 2022, the CSF adjusted programmatic and the Global Practices, support to CSF. allocations for the GRI, Whole-of- ensure that climate considerations are Economy Program, and NDC and LTS integrated into World Bank lending Allocations for World Bank Global Support, while allocating new funding operations and global knowledge Practices aim to strengthen their for expansion of the Western Balkans products. analytical capacity to mainstream Program (tables 1 to 3). CSF Annual Report 2023 › 19 TABLE 1. Programmatic Allocations, by Program (US$, millions) Program 2021 2022 Green Recovery Initiative 28.5 26.7 Whole-of-Economy Program 55.5 56.0 Western Balkans Program 9.5 11.5 NDC and LTS Support 15.5 15.7 Program Management and Administration 10.0 10.0 Reserves - Unallocated 5.0 5.0 Total 124.0 124.9 Source: World Bank. Note: LTS = Long-Term Strategy; NDC = Nationally Determined Contribution. TABLE 2. Programmatic Allocations, by Window (US$, millions) Program 2021 2022 Green Recovery Project Design and Implementation Support 14.0 13.4 Green Recovery Analytical Tools and Methodologies 14.5 13.3 Whole-of-Economy Country Support 38.0 37.5 Whole-of-Economy Global Analytics 14.5 15..5 Economic Advisory Support 3.0 3.0 Western Balkans Program 9.5 11.5 NDC and LTS Support 15.5 15.7 Program Management and Administration 10.0 10.0 Reserves - Unallocated 5.0 5.0 Total 124.0 124.9 Source: World Bank. Note: LTS = Long-Term Strategy; NDC = Nationally Determined Contribution. TABLE 3. Regional Programmatic Allocations, by CSF Program and Region (US$) Green Recovery Whole-of-Economy Whole-of-Economy Region Country Support Country Support Economic Advisors NDC and LTS Support Eastern and Southern Africa 1,800,000 6,000,000 700,000 1,200,000 Western and Central Africa 1,400,000 5,000,000 400,000 1,980,000 East Asia and Pacific 2,900,000 5,000,000 -- 1,010,000 Europe and Central Asia 600,000 6,000,000 400,000 3,000,000 Middle East and North Africa 2,735,000 6,000,000 400,000 1,300,000 Latin America and the 950,000 5,000,000 680,000 3,050,000 Caribbean South Asia 3,000,000 4,500,000 400,000 2,000,000 Source: World Bank. Note: LTS = Long-Term Strategy; NDC = Nationally Determined Contribution. 20 ‹ Expanding Climate Ambition Across Sectors CSF GREEN RECOVERY PROGRAMS CSF GREEN RECOVERY Analytical tools and climate-fiscal country analyses. INITIATIVE methodologies. The GRI finances These assessments will increase analytical tools that boost the World countries’ understanding of how The CSF has been supporting countries Bank’s capacity to support client climate policies can positively or in achieving a green, sustainable, and countries in identifying low-carbon, negatively impact macroeconomic inclusive recovery from the COVID-19 climate-resilient development variables and enable them pandemic through the GRI and the pathways. Thirty grants amounting to enhance ambition where Western Balkans Green Recovery to US$1 1.4 million are supporting the appropriate. Support Program. This section describes development or updating of new tools 3. Tools to assess climate and work conducted in 2022, primarily that can guide the design, planning, transition risk in the financial sector. analytical and capacity support to and evaluation of countries’ climate World Bank finance teams are promote key sectoral transitions and strategies, government policies and using GRI resources to understand economywide efforts that help countries measures, and climate-related World long-term climate risk and link it to decarbonize and increase their long- Bank operations. These tools aim with financial risk, disaster risk, and term resilience to climate shocks (box 2). to provide the evidence required for macro-fiscal climate impacts. This The CSF undertook the following activities governments to take decisive action work is informing the development to support the World Bank’s green on climate change and include the of “green” financial regulatory recovery efforts: following: frameworks and tools. In turn, Project design and the tools can help influence the 1. Macroeconomic models. The GRI implementation support. behavior of financial institutions is helping to strengthen the climate Since its inception, the GRI has and corporations by promoting modules used in the World Bank’s been supporting the design and general macrostructural models sustainable investments that are implementation of green recovery and individual country frameworks. consistent with low-emission and measures in World Bank-financed These enhancements help to climate-resilient development. budget support packages, incorporate green metrics into 4. Analytical frameworks. The CSF is government spending programs, these tools, and place climate and providing resources to incorporate and investments. In the past year, other sustainable development analysis of the distributional, equity, the GRI has helped countries to issues on equal footing with more and employment impacts of climate identify climate change actions and traditional policy priorities in change policies into the World climate-smart investments in efforts economic modeling frameworks, Bank’s Poverty Assessments. This undertaken to facilitate the recovery of such as growth, inflation, and additional analysis will clarify the key sectors affected by the COVID-19 unemployment. Ultimately, these potential impacts of alternative crisis such as agriculture, transport, informed models will allow country climate strategies and support logistics and supply chains, and counterparts and World Bank staff countries in identifying key sectors others. The GRI has also facilitated to evaluate NDC targets, plan for or priorities for their transition to a the implementation of these policy climate-related disasters, and low-carbon and climate-resilient and investment priorities in countries identify transition risks. economy. through the World Bank’s lending operations. As such, with 58 grants 2. Competitiveness and employment totaling US$1 1.3 million, the GRI’s assessments. As employment and project design and implementation trade generally take precedence support has been an enabler of over climate concerns for climate action in countries at a time countries, financing provided by when their climate-related priorities the GRI is supporting assessments were at risk of being de-prioritized to quantify employment and owing to economic concerns. competitiveness impacts in CSF Annual Report 2023 › 21 BOX 2 COUNTRY EXAMPLES FOR THE CCAP SYSTEM TRANSITIONS 4. Cities: Kazakhstan Cities Continuing urbanization in Kazakhstan, often in an unplanned and uncoordinated manner, is poised to increase GHG emissions. CSF funds are being used so that the country’s cities and metropolitan areas can better understand, identify, and eventually invest in low-carbon and green growth solutions to avoid or reduce GHG emissions and adapt to climate change impacts. Green growth diagnostics based on projected urban population and emissions growth are being developed for selected cities, with a primary focus on Almaty, the nation’s largest city. Electric car charging station in Paipur, India. Photo: Abhinav Mathur These will inform policy pathways for sustainable urbanization in the country as 1. Energy: India Green Hydrogen emissions from agriculture as one of the well as sustainable urban development means for achieving its unconditional India is one the world’s largest investments financed by the World Bank. target of reducing GHG emissions by 22.7 greenhouse gas (GHG) emitters, with percent by 2030 compared to business 5. Green Finance and Jobs: Supporting coal-based power generation in the as usual.c CSF support is being used the Philippines’ Recovery country accounting for 73.1 percent of to provide technical assistance to the the electricity supplied to the grid as of CSF support in the Philippines has Government of Mongolia on developing April 2023.a Given the expected growth of a Climate-Smart Agriculture Investment assisted the country in advancing the India’s energy demand, accelerating the Plan; creating a “solutions marketplace” green finance and jobs agenda as part uptake of green hydrogen was considered for green innovations in the sector; and of its economic recovery. CSF funds a promising avenue for promoting a green developing a monitoring, reporting, and were used to build synergies between economic recovery from the COVID-19 verification protocol. the country’s NDC and COVID-19 crisis that would contribute in reducing recovery plan, create an assessment the emissions intensity of India’s gross 3. Transport: Argentina Green and and certification system necessary for domestic product (GDP) in line with the Resilient Logistics implementing the Green Jobs Act, and its Nationally Determined Contribution Freight transport is essential to the undertake a capital investment review for (NDC) target. Green hydrogen carries Argentine economy as freight, mainly eight provinces and four cities to identify constraints, however, such as higher grains and mining products, is primarily gaps and policy recommendations for production costs and a need for large- transported by road. The transport sector scale storage solutions. Climate Support developing the “Risk Resiliency Program” represents about 15 percent of Argentina’s for local governments. Facility (CSF) funds enabled the World emissions, with about 45 percent of Bank to provide technical assistance to the those emissions coming from road freight Government of India to understand these transport.d The CSF has supported a. https://www.reuters.com/business/energy/ constraints, identify gaps in capacity, and analysis of the impacts, trade-offs, and indias-power-output-grows-fastest-pace-33- develop policy and investment options risks of decarbonization policy options years-fuelled-by-coal-2023-04-05/. for adopting green hydrogen solutions. In for the country’s freight sector in two addition, support is also being provided at b. https://data.worldbank.org/indicator/ supply chains: one with a focus on urban NV.AGR.TOTL.ZS?locations=MN; https:// the state level to develop green hydrogen logistics within the metropolitan area of data.worldbank.org/indicator/SL.AGR.EMPL. road maps. Buenos Aires, and another with a focus on ZS?locations=MN&view=chart; https://www. 2. Agriculture: Mongolia Climate- commodity flows. The analysis includes climatelinks.org/resources/greenhouse-gas- Resilient Agriculture aspects such as sources of carbon emissions-factsheet-mongolia#:~:text=The%20 emissions along the supply chain; impacts land%2Duse%20change%20and,energy%20 Mongolia’s agriculture sector accounts sector%20at%2025%20percent. of existing policies that have been adopted for around 13 percent of the country’s to reduce emissions; and the potential for c. https://www.climatewatchdata.org/countries/ GDP and employs about a quarter of the new regulations, investments, financial MNG?end_year=2019&start_year=1990#climate- workforce, while also being the second incentives, and technologies to reduce commitments. greatest contributor to the country’s GHG carbon emissions. CSF funds have been d. https://www.itf-oecd.org/sites/default/files/ emissions (30 percent of total emissions).b used to create a road map for emission docs/policy-scenarios-decarbonising-transport- Mongolia’s NDC has identified reducing reduction in Argentina’s freight sector. argentina.pdf. 22 ‹ Expanding Climate Ambition Across Sectors WESTERN BALKANS the significance of the climate agenda in set of actions promoting the climate the region and the need to address the agenda across World Bank practices. PROGRAM effects of the war in Ukraine. Planning The grants span a broad spectrum of The Western Balkans Program continued for the allocation of these additional activities, ranging from climate-informed resources was to be coordinated in the public financial management and social to support countries in the region to technical advisory meeting between the aspects of the green transition to green accelerate climate action toward a CSF and the Government of Austria in motorization and urban planning. Several green transition in the context of the March 2023. of the activities have a multi-country war in Ukraine and the broader post- scope, addressing sectoral linkages and COVID-19 green recovery agenda (see During 2022, the CSF Western Balkans promoting effective technical assistance box 3 for more details on the Western Program approved grants for six approaches, knowledge transfers, and Balkans Program). In late 2022, the CSF additional activities for a total of US$2.41 procurement practices. Western Balkans Program received an million. The number of grants covered additional allocation of €2 million from by the window is now 18, with a total It is expected that the activities under the Government of Austria, with coverage funding commitment of approximately theWestern Balkans Program will heavily that includes a broader set of countries US$6 million. The activities continue to inform the analysis that will be conducted in Europe and Central Asia. The decision cover all six countries in the Western in the context of World Bank CCDRs for on the additional allocation was linked to Balkans, supporting a comprehensive the six countries in the Western Balkans. BOX 3 WESTERN BALKANS PROGRAM COUNTRY EXAMPLES Supporting a Low-Carbon Response to the Energy Crisis Responding to the energy price shock that has affected the region since late 2021 and that has been exacerbated by the Russian Federation’s invasion of Ukraine in February 2022, the Western Balkans Window approved the grant for “Supporting a Sustainable Low-Carbon Response to the Energy Crisis.” The grant will support the World Bank’s forthcoming WB6 Energy Crisis Response program, covering a series of activities over fiscal years 2023 to 2024, with the aim to provide analysis of critical policy choices for green recovery and mitigation of the energy price crisis, as well as assisting in the preparation and implementation of investment and development policy operations in Western Balkan countries. The Energy Crisis Response program will build on the WB6 Energy Transition program, which has supported six lending operations in Western Balkans countries. Road transport of a windmill propeller in Bosnia and Herzegovina. Photo: Stipe Perkovic Phasing Down Coal Window approved a grant for Bosnia and closure planning) of the World Bank’s just Herzegovina with the objective to inform transition for all approach, which stipulates The just transition agenda is critical for options for mitigating social and labor that successful low-carbon transition must the Western Balkans countries and the impacts associated with the anticipated Climate Support Facility as it seeks to be socially just and inclusive. The grant closure of the Zenica and Banovicia develop a program to phase down coal. coal mines. The grant prepared the is informing the development of a related In this context, the Western Balkans operationalization of the first phase (pre- World Bank lending operation. CSF Annual Report 2023 › 23 CSF NDC AND LTS SUPPORT NDC IMPLEMENTATION actions; aligning NDCs with long- Lessons Learned Supporting NDC AND ENHANCEMENT term goals; and improving NDC Implementation.”3 clarity, transparency, monitoring, Complementing efforts on green stakeholder engagement, or other The following are the key factors that recovery, the second core area of work considerations. allowed the NDC-SF to achieve its that the CSF supports is enhancing and objective: 2. NDC implementation. This includes implementing NDCs and developing support for NDC implementation 1. Focusing on mainstreaming LTSs—the two main instruments planning and analysis; governance the NDC agenda across the envisioned by the Paris Agreement for and coordination of NDC World Bank by providing timely decarbonizing economies in line with its implementation; development support to operational teams and long-term goals. In supporting countries of policies, legislation, or project maintaining a regular constructive to achieve the climate targets outlined in pipelines to achieve NDC goals; dialogue with donors to develop their NDCs and LTSs, the CSF encourages costing of NDC measures or an agile typology of support and an economywide approach focused development of NDC financing partnerships. In this context, the on mainstreaming climate in national strategies; mobilization of NDC NDC-SF successfully covered a development planning, sectoral plans, finance, greening national vast geographical and sectoral and budgets. It also works to ensure that budgets, and creating enabling landscape of needs linked to NDC government spending, including spending environments for NDC investment; advancement and implementation. related to COVID-19 recovery efforts, is and monitoring progress toward Examples of the agility of the aligned with NDCs, LTSs, and mid-century NDC targets. Box 4 provides grant typology include the funding decarbonization targets. country examples of NDC windows focused on NDC deep implementation. dives and just-in-time support. The CSF carries forward the World 3. LTS development. This includes Bank’s NDC and LTS support, building 2. Collaborating with the NDCP promoting country-owned on the success of the NDC Support Support Unit in a proactive way. pathways that are aligned with Facility, which closed at the end This allowed the NDC-SF team to domestic priorities as well as the of 2022. CSF grants for new NDC provide upfront feedback on NDCP goals of the Paris Agreement. and LTS projects are underway and programs and engage strategically US$15.7 million has been allocated, with World Bank teams that could the vast majority of which has now been NDC SUPPORT FACILITY support the requests for support committed. As of December 31, 2022, CLOSURE AND LEGACY on programs overseen by the the NDC and LTS Support program had NDCP Support Unit. Examples approved a pipeline of 43 activity-level The NDC Support Facility (NDC-SF), a include the NDCP’s Climate grants worth US$14.6 million across 35 trust fund predecessor to the CSF, was Action Enhancement Package and countries. Task teams managing grants operationally closed on December 31, Economic Advisory Support. are coordinating with NDC Partnership 2022, as planned. A completion report 3. Establishing clear linkages early (NDCP) focal points in-country to that will address the lessons learned is on with the CSF as an umbrella ensure the alignment of grant activities being prepared and will be discussed. program, signaling the strategic with other development partners’ work. importance of the NDC agenda Activity-level grants support work across Overall, the NDC-SF achieved its for the institution, and ensuring three main themes: development objective, demonstrated the operational continuity of its by its impact across operations and activities and scaling up of key 1. NDC enhancement. This includes partnerships and the scaling up of its initiatives. For example, the CSF analytics and advisory services legacy via the CSF umbrella trust fund. builds on the NDC-SF legacy to to enhance countries’ NDCs Addressing the impacts and lessons scale up the LTS agenda and the by strengthening or adding learned of the NDC-SF on an ongoing whole-of-economy approach greenhouse gas (GHG) emissions basis and in a way that informs collective targets, sectoral non-GHG targets, action has been an area of focus of the 3 https://openknowledge.worldbank.org/ or policies or actions; increasing program. In 2021, the NDC-SF published bitstream/handle/10986/35412/The-World-Bank- NDC-Support-Facility-Impacts-and-Lessons- sectoral coverage; enhancing or the well-cited report “The World Bank Learned-Supporting-NDC-Implementation. adding adaptation-related goals or NDC Support Facility: Impacts and pdf?sequence=1&isAllowed=y. 24 ‹ Expanding Climate Ambition Across Sectors BOX 4 NDC IMPLEMENTATION COUNTRY EXAMPLES Trolley Bus in Mexico City, Mexico. Photo: Kyle Little Greening Transport in Mexico bond issuances. A third component is waste) and the development of low- developing a conceptual design and an emission scenarios. It supports the The transport sector is the second infrastructure financial mechanism for Government of Cambodia in articulating largest source of emissions in Mexico, green and resilient transport projects, a cohesive framework for short-term contributing 22 percent of total emissions. such as electromobility projects. Finally, climate action and progress toward a The Climate Support Facility (CSF) is the grant is developing a road map, based carbon-neutral and resilient economy by supporting the achievement of Mexico’s on the previous three components, that 2050. The long-term national strategies Nationally Determined Contribution subnational governments can follow to that identify opportunities or pathways (NDC) with a grant focused on public implement and increase investment in for low-emission development serve as policies and reforms that can enable increased investment in efficient, low- urban public transport projects. The grant a road map for key sectors to contribute carbon, urban public transport systems. informs the National Infrastructure Fund to carbon neutrality. The grant will result One grant activity is a diagnosis of Investment, FONADIN 2.0 (US$500 million) in a long-term vision for low-emission needs, responsibilities, and barriers for and aims to mobilize private investment for development and improved capacity to financing urban public transport. This green and resilient transport in Mexico. achieve the country’s NDC and net-zero activity focuses specifically on capital goals. It is informed by the “Cambodia requirements for electric mobility (e-bus) Water Security Improvement Project” projects and the main risks associated Development of a Long-Term Strategy (Investment Project Financing US$125 with this project. A second focuses on and Roadmap in Cambodia million) and builds on an advisory and developing a resource mobilization analytics (ASA) project, “Enhancing strategy for urban public transport The CSF is financing a grant to Environmental Sustainability and interventions at the subnational level, support the development of a Long- Resilience in Cambodia.” The grant including recommendations on innovative Term Strategy and road map for informs the development of two additional funding solutions. This strategy focuses Cambodia. The grant provides technical World Bank projects: “Enhancing Natural on opportunities for tapping local pension assistance to the National Council for Resource and Pollution Management funds for urban transport interventions and Sustainable Development, including in Cambodia” (ASA) and “Coastal using the revenues generated by existing policy recommendations in key sectors Blue Economy Development Path for toll road assets to pay back potential (agriculture, land use, industry, and Cambodia” (ASA). CSF Annual Report 2023 › 25 that was first tested in deep dive analysis and modeling to support iterative different Global Practice groups and activities. Moreover, the Economic and substantive dialogues around development partners of the World Bank. Advisory Support and the support objectives, decarbonization pathways, for the Coalition of Finance possible courses of action, trade-offs, In 2022, the Global LTS Program Ministers for Climate Action work and expectations around outcomes of the supported the LTS development process program will continue via the CSF. LTSs. in three pilot countries: the Dominican The remaining balance from the NDC- Republic, Jordan, and Uzbekistan. SF account will be channeled to support The objective of the program is to The program is also providing the work on NDC enhancement and promote country-owned development methodological assistance to a CSF- implementation and LTS Development. pathways that are aligned with domestic funded decarbonization project in the priorities as well as the goals of the Paris Lao People’s Democratic Republic and Agreement by: (i) exploring long-term plans to provide support to Türkiye in GLOBAL LTS PROGRAM options for deep decarbonization across 2023. The program is developing global The World Bank’s Global LTS Program all key sectors, (ii) evaluating country- knowledge products and to date has is supporting client countries seeking to specific strategies for decarbonization supported initial drafts of guidance notes develop LTSs that are aligned with the and resilience through mid-century, (iii) on methodology and operationalization. objectives of the Paris Agreement and facilitating the assessment of different The guidance documents and meet countries’ development objectives. strategies; and (iv) helping countries to knowledge support have provided The program provides methodological integrate a preferred long-term strategy critical resources to pilot countries support and funds consultants to into short- and medium-term decision for developing low-carbon pathways assist countries to develop LTSs. The making. This program is supported as to achieve their climate targets, as LTS development approach uses data necessary by global expertise from discussed in the case studies in box 5. BOX 5 GLOBAL LTS PROGRAM COUNTRY PILOTS Uzbekistan LTS Development Jordan LTS Development Dominican Republic LTS Development In Uzbekistan, the World Bank has The global LTS advisory and analytics The LTS program is supporting the partnered with the Ministry of Economic program is providing technical assistance Dominican Republic National Council Development and Poverty Reduction to the Jordanian Ministry of Environment for Climate Change (CNCCMDL) in (MEDPR) to support the development of (MoEnv) in its development of an LTS developing its LTS, which seeks to reach its Long-Term Strategy (LTS). This pilot to be submitted to the United Nations net-zero emissions by 2050. The LTS is in an early stage of development. A Framework Convention on Climate work builds on the earlier World Bank few rounds of project inception meetings Change by 2025. This LTS will define program on high-level evaluation of have been conducted to establish the an ambitious emissions pathway that possible low-carbon pathways for the key government’s ownership and engage considers the country’s economic, sectors in the Dominican Republic and a consultant in the LTS development social, and political situation, and it will other ongoing World Bank activities. The process. In November 2022, a kick- support the revision of Jordan’s Nationally Dominican Republic LTS pilot is finalizing off meeting was held with MEDPR to Determined Contribution (NDC) targets to the terms of reference with the CNCCMDL agree on a work plan and approach be consistent with the Paris Agreement. for an external consultant to support the for LTS development. The LTS team This pilot is in the initial stage, and it will stakeholder engagement and analytical is coordinating closely with the World build on the recently released Jordan work. Concurrently, the LTS team and Bank’s concurrent Country Climate and CCDR. The work plan for this project CNCCMDL are finalizing an overall project Development Reports (CCDR) effort to has been agreed upon by MoEnv and work plan. ensure consistency in the findings and other governmental agencies. Currently, messaging, particularly in the energy World Bank and country leads are sector. planning a sectoral workshop with various government ministries and stakeholders. This LTS effort builds on past World Bank support preparing an LTS development road map and other sector-specific decarbonization efforts. 26 ‹ Expanding Climate Ambition Across Sectors CSF WHOLE-OF-ECONOMY PROGRAM GLOBAL ANALYTICS countries’ ability to design and implement Memorandums, Public Expenditure climate-informed macroeconomic, Reviews, Poverty Assessments, and In October 2021, the CSF sought to fiscal, financial, trade, and private sector Financial Sector Assessment Programs. develop a new program that would development policies to pursue a green Support is also provided to implement provide resources to undertake targeted recovery and equitable transition. Although CCDR recommendations as well as analytical, diagnostic, capacity-building, the program has its dedicated windows, conduct selected upstream analytics to and technical assistance activities that the CSF will also seek to streamline a fill knowledge or data gaps at the country help countries to embed green recovery whole-of-economy approach across all its or regional level. Additionally, country priorities across economywide themes. programs. This will ensure that countries economists receive support for new The impetus for the program came have ownership in incorporating climate approaches, methodologies, evidence, about as financial regulators, ministries risk and impacts into macroeconomic and data sources, and tools to support of planning and finance, and financial fiscal frameworks that support long-term countries in strengthening economic institutions sought to engage more climate goals. development with a climate lens. deeply in climate action, recognizing the implications that climate change In addition to the objectives of the CCAP, the Whole-of-Economy Program will has on growth, economic and financial contribute to several World Bank–wide ECONOMIC ADVISORY risks, and attainment of sustainable priorities on climate, such as improving SUPPORT development goals. As a result, the CSF private sector financial flows and worked to develop a program that would The World Bank contributes to the encouraging the application of innovative encourage client countries to go beyond Economic Advisors Initiative of the climate approaches and instruments. sectoral approaches to decarbonizing NDCP through the Economic Advisors Activities funded through the program sectors and help to build their capacity to are expected to help to inform policy support program, which was launched develop policy interventions for impactful recommendations for CCDRs, the World in June 2020. This program aims to change across the entire economy. Bank’s key diagnostic to help countries help governments in incorporating identify opportunities for institutional climate change considerations into The CSF launched the new Whole-of- reforms and investments that support development policies and economic Economy Program in January 2022, in climate action. recovery instruments. It has been helping partnership with the Equitable Growth, ministries of finance and planning, among Finance and Institutions Practice Group As a result of these activities, the program other relevant line ministries in developing at the World Bank. The Whole-of- will equip World Bank teams with the countries, to: (i) identify sectoral policy Economy Program introduces two new tools to support developing countries in reforms and financial opportunities for programmatic windows under the Green approaching climate challenges through “building back better” and align these Recovery Support pillar and seeks to draw a whole-of-economy lens, creating the with NDCs and LTSs, (ii) undertake expertise from both the World Bank’s enabling framework within countries research relevant to incorporating Climate Change Group and the Equitable to deliver bold climate ambition and Growth, Finance and Institutions Practice mitigation and adaptation considerations transformative change. Group. The program will help developing into development policies or recovery countries to tackle climate change through packages, and (iii) support project a whole-of-economy approach and preparation and leverage additional COUNTRY SUPPORT undertake cross-sectoral policy reforms support from the World Bank and its to deliver on their NDCs and LTSs. In The regional and country-level window partners.  particular, the program will seek to: (i) of the Whole-of-Economy Program strengthen analytics and diagnostics for The first cohort of economic advisors, supports making World Bank core effective policy advice on issues related country diagnostics climate-smart as with an investment of US$3 million, was to a whole-of-economy approach; (ii) well as technical assistance for policy housed under the NDC-SF and lasted build the capacity of countries’ financial reforms in client countries. from June 2020 until June 2022. The institutions and central banks to assist in program was extended in 2022 through a mainstreaming climate considerations It covers all regions and 61 countries, second cohort with an additional funding in the design, implementation, and and in total will support 46 climate- allocation of US$3 million under the GRI governance of public policies and informed, country-level core and rolled out through the CSF Whole- investment frameworks; and (iii) improve diagnostics, including Country Economic of-Economy Program. CSF Annual Report 2023 › 27 Rice and sugar cane fields in Southern China. Photo: Creative-Family 28 ‹ Expanding Climate Ambition Across Sectors Economic advisors are identified and economic advisors to support climate hired as short-term consultants by action. By December 2022, Albania, FIGURE 2. Thematic Areas World Bank task teams in coordination Egypt, South Africa, and Uzbekistan Covered by Economic Advisors with the government counterpart. approved grants. The other countries through the Whole-of-Economy The economic advisors have been committed are Bangladesh, Bolivia, Program contracted for between one and two Burkina Faso, Ecuador, Honduras, India, years. Task teams together with the Liberia, Morocco, Mozambique, Nepal, government counterpart developed the 7% Nigeria, Pakistan, Panama, Paraguay, 13% terms of reference and advisors have the Republic of Congo, Rwanda, and been embedded within the ministries 13% the West Bank and Gaza. During 2022, of finance or planning and may also be in collaboration with NDCP, two peer- sited in sectoral ministries of relevance to-peer exchanges were made and that are responsible for critical policy onboarding activities were carried out reform. Requests for economic advisor 23% 37% to facilitate knowledge exchange and support were identified through the support regular communication among existing engagement and dialogue of the advisors. Box 6 provides a case study the NDCP in the country, and from World 7% of the climate advisor program in Liberia. Bank Regions and Global Practices. Figure 2 provides a breakdown of the Planning for the Whole-of-Economy thematic areas covered by economic ● Fiscal instruments and fiscal risk Program cohort included embedding advisors through the Whole-of-Economy ● Greening private and public finance economic advisors in ministries of Program. ● Innovation and industrial development finance and planning, central banks, ● Greening institutions and ministries of the environment. Each Through the first cohort, the NDC- ● Macro critical aspects of climate change region identified countries to receive ● Social change, equity and just transition SF successfully placed 25 economic this support where there was a clear link advisors in 16 countries: Albania (1), with existing or upcoming operations Source: World Bank. Antigua and Barbuda (1), Colombia (1), and ongoing conversations on climate the Republic of Congo (2), Ecuador (1), and the seven themes of the Whole-of- Grenada (1), Indonesia (3), Jamaica (1), Economy Program. In six cases, letters Jordan (2), Mozambique (1), Paraguay From June to December 2022, a of request for support from governments (2), Peru (2), Saint Lucia (1), Zambia second cohort of economic advisors channeled through the NDCP led to (1), Zimbabwe (2), and the Eastern was launched. A total of 21 countries conversations between the World Bank Caribbean Central Bank (3).  in six regions committed to include task teams and governments. BOX 6 CASE STUDY: LIBERIA CLIMATE ADVISOR TO THE CENTRAL BANK OF LIBERIA Following a request from the Executive an initial road map for the financial sector Governor of the Central Bank of Liberia that considers climate issues in decision- (CBL) and channeled through the NDC making processes. It is expected that this Partnership (NDCP), the World Bank’s road map will turn into a strategy document Western and Central Africa region for the CBL Climate Team in 2023. With reestablished conversations with the CBL the contribution from the Whole-of- (Development Finance Section) and the Economy Program, the advisor will also Ministry of Finance and Development provide support on macro-fiscal analysis to Planning to provide technical support integrate the impact of climate change into on the impacts of climate change on the the country’s macroeconomic framework, financial sector. emphasizing impacts on growth, fiscal The grant will support the CBL in stability, financial stability, income collaboration with the World Bank Group’s distribution, poverty reduction, and creation Country Climate and Development of jobs. The grant will support training and Reports (CCDR) team, to conduct an Monrovia, Liberia. Photo: BethanyFank capacity building for the CBL Climate Team, analysis and assessment of climate especially toward the recruitment and change challenges, opportunities, and that are relevant to the Central Bank and onboarding of a multiyear climate advisor government commitments across the the financial sector. The advisor will use successor funded through a World Bank various ministries with reference to those the CCDR’s recommendations to work on Investment Project Financing operation. CSF Annual Report 2023 › 29 CSF PROGRAM RESULTS GREEN RECOVERY OUTCOMES FIGURE 3. Green Recovery Initiative Grants Supporting Various Policy Types, 2022 Strengthening Climate Environment, natural resources and blue economy 21 Policies Energy and extractives 20 In 2022, the GRI focused on adaptation Agriculture and food 14 (seven grants), mitigation (18 grants), Macroeconomic, trade, and investment 13 and cross-cutting adaptation/mitigation support (63 grants), benefiting more Transport 11 than 180 million people. The GRI Urban resilience and land 9 built capacity (across 41 countries), Social protection and jobs 9 developed analytics (252 total analytics undertaken on green recovery or Social sustainability and inclusion 8 low-emission and climate-resilient Finance, competitiveness, and innovation 8 development in the context of COVID-19 Water 6 recovery), and provided technical Poverty and equity 5 assistance to its partners (40 countries, including nine regional areas). The Governance 5 portfolio’s focus was on climate Macroeconomics and fiscal management 2 policy (91 percent of the grants), while Jobs 2 over half of the portfolio supported the strengthening of institutions and Health, nutrition, and population 2 processes (56 percent) and investments ICT 1 (53 percent). Policy support focused Digital development 1 in particular on the environment (21 0 5 10 15 grants), energy (20 grants), and Number of grants agriculture and food (14 grants). Figures 20 25 Source: World Bank. 3 and 4 show the types of policies Note: ICT = information and communications technology. supported by GRI grants in 2022. Annex B provides a detailed breakdown of the results under the CSF monitoring and FIGURE 4. Green Recovery Initiative Grants Supporting evaluation (M&E) framework for the GRI. Climate Policies and Frameworks, 2022 Strengthened institutions, policies, or regulatory- Strengthening Climate and market-frameworks that support low-carbon 68 Capacity Building and climate-resilient development Building capacity is key for the Identified opportunities for emission reduction (and where possible decarbonization) and/or 36 formulation, evaluation, and long-term resilience building implementation of climate-related Supported countries in avoiding immediate policies. During 2022, 27 countries policy and investment decisions with long-term 35 (in addition to five regions and one negative consequences on climate action global grant) strengthened their green Facilitated integration of low emissions and recovery capacities to design, evaluate, climate resilient development in COVID-19 32 recovery measures (policies or investments) and implement climate-related policies or investments because of support Prevented the rollback or weakening of existing climate-related efforts, policies and targets in 20 provided by the CSF.4 More specifically, target countries 4 Albania, Argentina, Bangladesh, Botswana, Other 3 Brazil, Bulgaria, the Caribbean, Chad, China, Colombia, East Asia and Pacific, Ethiopia, 0 20 40 60 80 Europe and Central Asia, Guinea-Bissau, India, Source: World Bank. Indonesia, Iraq, Kazakhstan, Kenya, Kosovo, Number of grants Madagascar, Malawi, Maldives, Nepal, Sri Lanka, Pakistan, the Philippines, Rwanda, Serbia, South Asia, Vietnam, the Western Balkans, the world. 30 ‹ Expanding Climate Ambition Across Sectors 58 grants strengthened formulation, evaluation, and implementation FIGURE 5. Green Recovery Initiative Grants Strengthening capacity of climate-related policies; Climate Capacities, 2022 53 strengthened design and 70 implementation capacity for climate- informed projects; and 13 strengthened 58 60 M&E capacity for climate-informed 53 Number of grants projects (see figure 5).5 50 40 Providing Green Recovery Analytics and Technical 30 Assistance 20 Across the GRI portfolio, the CSF 13 provided support to 37 countries, eight 10 7 regional grants, and one global grant 1 to support climate-related policies, 0 Strengthened Strengthened Strengthened Other N/A strategies, or investments to reduce formulation, design and monitoring emissions and build climate resilience. evaluation, and implementation and evaluation implementation capacity for capacity for More specifically, the GRI supported capacity of climate-informed climate-informed four climate investment plans in climate-related projects projects policies Ethiopia, Iraq, Kosovo, and Mongolia. For example, in Ethiopia, climate action Source: World Bank. plans and road maps were developed for two secondary cities and a model for climate-smart capital investment planning was developed and tested. In Mongolia, a climate-smart agricultural Eighteen new operations informed by private and public finance; social change, investment and M&E plan was analytics were developed using CSF equity, and just transition; innovation and developed, consisting of a road map for funding. For example, in Bangladesh, a industrial development; macro critical implementing climate-smart agricultural grant (TF0B5996) informed operations aspects of climate change; trade policy; and livestock systems. An M&E system of US$750 million, and in the Philippines, and greening institutions. The outputs7 is also being developed. This grant a grant (TF0B5993) informed funding of and intermediate outcomes focus on four consists of a series of analyses toward US$400 million. key areas: better understanding of how the agriculture and livestock sector can Climate-informed, economywide move toward a greener, lower-carbon, DEVELOPMENT OF A NEW policies developed and strengthened, and more resilient pathway. by program themes. WHOLE-OF-ECONOMY Scaling Up Impact PROGRAM RESULTS World Bank operations supporting Forty grants are facilitating the FRAMEWORK climate-informed, economywide integration of climate considerations into policies, by instrument type. The Whole-of-Economy Program’s theory new World Bank operations, 21 grants of change and results framework are Institutions (including ministries of are strengthening climate considerations centered on the outcomes of policies, finance, central banks, line ministries, in World Bank operations with climate strategies, and regulatory frameworks and others) with improved knowledge already integrated, and six grants are adopted by client countries, informed and capacity, by program themes. integrating climate into ongoing World by the whole-of-economy approach. Bank operations without previous climate In coordination with the implementing Knowledge products produced and considerations. partner, the Equitable Growth, Finance learning events organized, by global and Institutions Practice Group, the and regional strategic programs. Across the GRI portfolio, more than results framework was recently enhanced US$13 billion was informed by CSF to align with the seven thematic areas: 7 Strengthened analytics (including core funding in 18 countries and six regions, fiscal instruments and fiscal risk; greening diagnostics), methodologies, and tools for as well as through one global grant.6 mainstreaming climate considerations in country programs; provided technical assistance and Kenya, Kosovo, Latin America, Madagascar, capacity-building support to client countries on 5 The numbers include regional and global grants. North Macedonia, Pakistan, the Philippines, the climate-informed, cross-cutting policy reforms; 6 Albania, Bangladesh, Botswana, Brazil, China, Sahel, Serbia, South Asia, Türkiye, Uruguay, and fostered partnerships and peer-to-peer Europe and Central Asia, India, Indonesia, Iraq, Vietnam, the Western Balkans, and the world. learning. CSF Annual Report 2023 › 31 As the program rolls out, the CSF will Thematic Areas NDC implementation plans in four monitor and evaluate across the updated sectors, a climate change institutional Figure 7 shows the thematic areas theory of change and results framework. assessment, and recommendations supported by NDC/LTS grants and for an NDC governance framework. In the number of grants corresponding Paraguay, the CSF is supporting the to each (most grants address multiple NDC AND LTS OUTCOMES costing of NDC adaptation measures thematic areas). NDC implementation and a climate finance road map for NDC Grant Types grants support outputs related to implementation. NDC implementation planning, Grants approved under the CSF’s sectoral policy analysis, budgeting/ NDC enhancement grants support NDC/LTS support contribute to the financing, and governance/monitoring analytics and advisory services that second CSF development outcome by frameworks. Most of these are provide the basis for strengthening strengthening countries’ capacities to focused on NDC policy analysis and NDC targets and measures. In Nepal, implement the Paris Agreement through implementation planning. In Ethiopia, for example, the CSF is supporting an NDCs and LTSs. Each of these grants for example, the CSF is supporting analytical study on the development contributes to at least one of three grant types: (i) NDC implementation, (ii) NDC enhancement, and (iii) LTS development (see figure 6). Annex C provides a detailed breakdown of the results under FIGURE 6. NDC/LTS Grant Types, 2022 the CSF M&E framework for NDC/LTS support. NDC implementation 35 The majority of the NDC/LTS support grants that were active in 2022 NDC enhancement 2 supported the implementation of countries’ (enhanced) NDCs. Of a total LTS development 8 of 43 NDC/LTS grants, 35 contributed to this indicator. Some of these 0 5 10 15 20 25 30 35 40 grants included support focused on Grants specific sectors that were prioritized in Source: World Bank. countries’ NDCs (and the World Bank’s Note: LTS = Long-Term Strategy; NDC = Nationally Determined Contribution. CCAP as key systems transitions), while others provided support to NDC implementation across sectors. FIGURE 7. Thematic Areas of Grants, 2022 Two of the 43 grants contributed to NDC enhancement. The CSF expects more NDC governance/Monitoring frameworks 13 countries to request support for NDC NDC implementation plans/Sectoral strategies 17 enhancement activities in 2023–25, ahead of the next round of NDC updates NDC policy analysis/Development 23 in 2025. NDC costing, budgeting, and finance plans 14 CSF grants are also advancing LTS Modeling/Analysis for NDC enhancement 2 development in countries. Of the 43 Strengthening of NDC targets/Measures 1 grants, eight contribute directly to this indicator. This includes a grant that LTS sectoral emissions/Development pathways 6 supports the World Bank’s Global LTS Program in developing tools/ LTS implementation plans and policy analysis 6 guidance for developing LTSs, applying LTS scoping and engagement 5 LTSs to government processes, and leveraging LTSs to inform World Bank LTC macroeconomic modeling 4 engagement. LTS support also includes 0 5 10 15 20 25 seven country-specific grants, most of Grants which also benefit from support from the Source: World Bank. Global LTS Program. Note: LTS = Long-Term Strategy; NDC = Nationally Determined Contribution. 32 ‹ Expanding Climate Ambition Across Sectors of country-specific emission factors for two sectors. The emission factors, FIGURE 8. Climate Outcomes of Grants, 2022 developed in consultation with key stakeholders, will serve as inputs to Both (Mitigation and 28 adaptation) emissions inventories and inform the update of Nepal’s NDC. Mitigation 10 LTS development grants support activities such as stakeholder engagement, macroeconomic Adaptation 5 modeling, policy analysis, and 0 5 10 15 20 25 30 development of sectoral emissions/ Number of grants development pathways. In Lesotho, for Source: World Bank. example, a CSF grant is supporting flood and drought risk analysis; GHG baseline data for the energy, waste, and transport sectors; and spatial planning analysis Climate Outcomes cut across both climate mitigation and to support LTS development. Seven adaptation outcomes (see figure 8). The CSF’s NDC/LTS grants contribute to additional grants focused primarily on Five additional grants address climate NDC implementation also have indirect climate mitigation and adaptation efforts adaptation and resilience specifically. links to LTS development. in client countries in the context of The remaining 10 grants are focused on national climate plans. The vast majority advancing climate mitigation efforts in of NDC/LTS grants (28 of 43 grants) countries. BOX 7 CSF GRANTS SUPPORTING WORLD BANK PROJECTS: LINKAGES TO DEVELOPMENT POLICY FINANCING (DPF), INVESTMENT PROJECT FINANCING (IPF), AND PROGRAM-FOR-RESULTS (PFORR) PROJECTS CSF grants have provided technical Renewable Energy the preparation of a PforR operation assistance including development of in China: Decarbonizing Transport The Bangladesh Renewable Energy analytics and capacity building to support for City Cluster (P172388, US$250M and Battery Storage Road Map the preparation and implementation indicative commitment) that aims to (US$150,000) provides technical of nine DPF operations advancing accelerate decarbonization of transport assistance on improving the capability of climate-informed policies in agriculture, sector in Yi-Jing-Jing-En City Cluster to the power system to integrate distributed climate risk management, energy, create mechanisms to scale effective renewable energy (solar). This assistance environment, finance, forestry, and public decarbonization measures in Hubei has facilitated the inclusion of innovative administration. Several other CSF grants province. components in a PforR operation in are supporting upstream analytics and Bangladesh: Electricity Distribution dialogue to support the identification of Modernization Program (P174650, new DPF operations. The CSF has also Urban Development US$528M indicative commitment) along directly supported four IPFs and eleven with a dedicated indicator related to the The Climate-Smart Urban Development PforRs across energy, transport, and adoption of a roadmap for battery storage and Urban Resilience in Ethiopia grant social protection sectors. Some grants and rooftop solar power. (US$200,000) is facilitating the integration supporting PforRs are now supporting direct investments, while others are of climate smart considerations in capital in upstream stages of preparation. investment planning and budgeting Together, these operations are advancing Sustainable Transport processes in two Ethiopian cities. The transformative climate action across methodology and approach used for The Avenues for Green and Resilient Bhutan, Bangladesh, Botswana, China, advancing green urban development Growth grant in China (US$250,000) Egypt, Indonesia, Iraq, Jordan, Pakistan, will be scaled up for cities participating provides technical assistance to provinces Morocco, the Philippines, and Serbia. in an IPF operation Ethiopia Land and municipalities to develop transport Below are highlights across three sectors: Management and Urban Upgrading decarbonization roadmaps and assess the Project (P177655, US$250M indicative potential of different policy and investment commitment) scenarios. These are being used to inform CSF Annual Report 2023 › 33 Photo: © sorn340 EXTERNAL PARTNERSHIPS AND VISIBILITY NDC PARTNERSHIP programs. Support provided through on the NDCP’s Steering Committee to the NDC-SF aligned with the NDCP’s provide strategic direction to the NDCP. The CSF’s work is conducted within country engagement process and was a wide network of global partners designed to advance the goals of the Moving forward, the CSF will continue advancing climate action. A key NDCP. In 2022, this support was focused to collaborate with the NDCP on the external partner for the delivery of the on the Economic Advisory Program and identification of funding priorities, CSF’s work is the NDCP. With more its engagement with central banks, as allocation of grant funds, and operation than 115 country members and 80 well as the Coalition of Finance Ministers of programs, including expansion institutional partners, the NDCP is and its work on Helsinki Principle 6 (see of the Economic Advisory Program helping to drive climate action and the next section). and enhanced support for long-term ambition in member countries. It strategies. In 2022, the CSF undertook complements the World Bank’s technical With the launch of the CSF in late a series of coordination meetings with assistance and financing operations 2020, engagement between the World the NDCP Support Unit toward better by supporting NDC implementation Bank and the NDCP was strengthened defining opportunities for the World Bank and enhancement through a whole-of- through the participation of the NDCP’s to leverage the NDCP and contribute to government approach that aligns climate Support Unit and Steering Committee its impact. This coordination resulted in and development planning. As a key co-chairs as observers in the CSF agreement on a concept note that will institutional partner of the NDCP, the Partnership Council. Additionally, the guide collaboration between the World World Bank’s climate support to client NDCP Support Unit is a partner in Bank and the NDCP going forward. The countries, including through the CSF the review of the CSF’s NDC and LTS living document outlines concrete entry and NDC-SF, contributes to the global Support programmatic allocations, points in the context of the CSF’s work impact of the NDCP. which support further alignment of program, the World Bank’s broader NDCP and CSF development objectives. operations in client countries, and the The CSF’s engagement with the NDCP The NDCP’s Support Unit also provides NDCP’s country engagement. builds on the track record of the NDC- regular feedback on the M&E work of the SF and cuts across the CSF’s work CSF. Conversely, the World Bank sits 34 ‹ Expanding Climate Ambition Across Sectors COALITION OF FINANCE action through the implementation and to support the M&E efforts of the CSF MINISTERS mainstreaming of NDCs. For example, and other institutions (to be adapted finance ministry expertise is integral to as appropriate). The measurement The Coalition of Finance Ministers for macroeconomic modeling, costing of guide was developed across three core Climate Action brings together fiscal and NDCs, development of NDC financing dimensions of change: economic policy makers from more than strategies, and integration of NDCs into 80 countries to support climate efforts. public financial management plans. Systemic change. Secured through In addition to providing financial support the development of macroeconomic to the Coalition of Finance Ministers The CSF also collaborates with other and structural policies, institutional Secretariat, the CSF collaborates with World Bank sector-specific teams strengthening, and technological the Coalition’s member countries, to engage broadly on the five other innovation. institutional partners, and the Secretariat Helsinki Principles. In particular, the CSF aligns its LTS work with the Coalition’s Sustainability. Achieved through to implement the Coalition’s annual work Helsinki Principle 1, seeking to advocate investing in all forms of capital. program. The CSF is directly involved with the Coalition’s working group on for linkages between LTS and NDC processes in countries. Scale. Delivered through resource Helsinki Principle 6, which focuses on mobilization. mobilizing the engagement of finance ministries in the development and GREEN RECOVERY These signals are further distinguished implementation of NDCs. as “emerging signals,” which are mostly TECHNICAL WORKING process-orientated indicators expected In 2022, with the leadership of the GROUP to be met within the first two years of the CSF, the working group released a intervention, and “advanced signals,” report on finance ministry engagement Building on the technical working which are results-based outcomes that in the NDC process: Ministries of group’s progress in 2021 on green might take several years to materialize. Finance and Nationally Determined recovery M&E (technical definitions, As the GRI wraps up, the CSF will focus Contributions: Raising Ambition and theory of change, and indicators), the its efforts on M&E GRI activities using Accelerating Climate Action. The report technical working group finalized its work green recovery outcome indicators builds on a 2021 survey of Coalition by publishing an indicator measurement underpinned by the technical working member countries and in-depth guide. This work supported the group’s work. interviews with finance ministry officials. standardization and streamlining of It underscores the key role finance data collection, analysis, and reporting ministries can play in unlocking climate of green recovery outcome indicators CSF Annual Report 2023 › 35 CSF FINANCIALS AND PORTFOLIO In 2022, the CSF received new In this second year of operation, the Table 4 provides a financial summary contributions from the Austrian CSF built on its operational framework of the CSF. As of December 31, 2022, Ministry of Finance and the Swiss and processes, to grow the portfolio of the CSF’s total fund balance, taking State Secretariat for Economic Affairs, approved grants to US$52 million, of into account actual funds received from bringing the total signed contributions which US$16 million was disbursed and donors, disbursements, commitments, to just under US$125 million from four US$7.5 million was committed by year and investment income, was just donors. Actual funds received from end. over US$87 million. donors totaled US$102 million.  TABLE 4. CSF Financial Summary (as of December 31, 2022) Donor currency US$ A. Total donor signed contribution amount 124,892,092 Germany - Bundesministerium für Wirtschaftliche Zusammenarbeit  EUR 95,000,000 104,756,550 United Kingdom - Foreign, Commonwealth and Development Office GBP 4,800,000  6,579,060 Austria - Federal Ministry of Finance EUR 10,900,000 12,730,807 Switzerland - State Secretariat for Economic Affairs CHF 750,000 825,675 B. Actual funds received from donors 102,600,104 Germany - Bundesministerium für Wirtschaftliche Zusammenarbeit 83,020,550 United Kingdom - Foreign, Commonwealth and Development Office 6,579,060 Austria - Federal Ministry of Finance 12,730,807 Switzerland - State Secretariat for Economic Affairs 269,687 C. Other adjustments 1,047,512 Investment income (+) 1,047,512 D. Total funds available (B+C) 103,647,617 E. Disbursements 16,182,248 G. Fund balance at trustee and disbursing account level (D-E) 87,465,369 Source: World Bank. Note: CSF = Climate Support Facility. 36 ‹ Expanding Climate Ambition Across Sectors Selling rice at market in Taunggyi, Myanmar Photo: bluesky85 CSF Annual Report 2023 › 37 FIGURE 9. CSF Approved Grants, by Program, 2022 (US$) GRANT PORTFOLIO OVERVIEW |1| CSF Program Management and Administration, As of December 31, 2022, 169 activity- $1,500,000, 3% level grants (see annex A) had been approved supporting activities |43| NDC and |88| Green LTS Support, Recovery across seven Regions and 10 Global $14,576,000, 28% Initiative, Practices. Across the pillars, 44 percent $22,758,140, 44% (US$22.8 million) of the funds has been committed to green recovery grants, and 28 percent (US$14.6 million) to NDC/ LTS support (figure 9). |17| Western The active grants span eight funding Balkans Green Recovery Support, |20| Whole- windows and four thematic programs: of-Economy, $5,268,203, 10% 88 grants in GRI, 43 grants in NDC and $7,505,000, 15% LTS Support, 20 grants in the Whole-of- Source: World Bank. Economy Program, and 17 grants in the Western Balkans (see figure 10). FIGURE 10. Number of CSF Approved Grants, by Window, 2022 58 43 Number of grants 30 17 12 4 4 1 Green recovery NDC and LTS Green recovery Western Balkans Whole-of- Whole-of- Economic CSF program project support analytical green recovery Economy country Economy global advisory support management and design and tools and support support analysis administration implementation methodologies support Source: World Bank. 38 ‹ Expanding Climate Ambition Across Sectors LOOKING FORWARD Following a year of strong demand focus on greening finance and fiscal With the window’s previous allocation and rapid uptake of funds, the CSF is instruments. By developing and applying fully committed, additional funding will poised to play an increasingly important new analytical tools and building local be required to scale up NDC and LTS role in supporting the needs of client capacity, the program plans to integrate support to additional countries. countries going forward. In addition climate into key fiscal, financial, trade, to scaling up existing programs, the and private sector-development policies. CSF will expand its reach and scope by The Whole-of Economy Program WESTERN BALKANS launching new programs that provide is rolling out its activities in regions, PROGRAM technical assistance, capacity building, where they can play an important role in and analytical support across a growing influencing World Bank lending. The scope of the Western Balkans number of sectors and topics. Program is being expanded to other countries in the Europe and Central Asia As the CSF adapts to meet the NDC AND LTS SUPPORT (ECA) region, considering its significant evolving needs of the World Bank, its funding needs for climate-related partners, and its clients, it will need Further NDC and LTS support from operations and synergies with the CSF’s to be responsive and quickly mobilize the CSF will build on the success of strategic priorities. In this context, the resources and expertise to address its previous NDC/LTS engagement to support countries to implement the Paris program was titled Western Balkans emerging issues and support new Agreement. Future support will continue Plus to cover counties in the ECA region initiatives. With additional support to focus on NDC implementation, NDC outside the Western Balkans. Similar to from its donors, the CSF can go enhancement, and LTS development, the approach taken for the six Western further, providing critical support to including enhancing collaboration with Balkan countries, the expansion of the key systems transitions, strengthening the NDCP, multilateral development program to other ECA countries will adaptative social protection and related banks, 2050 Pathways Platform, and address the specific country priorities job schemes, and making frontier other key partners. The CSF continues toward their decarbonization targets investments in data and new technology. to receive World Bank country team and strategies for strengthening their The CSF will also continue to strengthen its partnerships, leveraging the expertise requests to support analytics, modeling, resilience, also in the context of Russia’s or building on World Bank CCDRs— invasion in Ukraine. of a wide range of stakeholders to meet including for LTS development. The more complex challenges. Support from CSF expects NDC/LTS support partners will be critical for the CSF’s ability to adapt and innovate in the face requests to increase as the 2025 NDC CLIMATE SYSTEMS enhancement round approaches, and TRANSITIONS of a rapidly changing climate landscape. as more countries look to develop Core areas of focus for the CSF in its LTSs, which most developing countries As countries move beyond the have yet to prepare. Funds will be pandemic’s recovery phase and confront next phase include the following: (i) disbursed through a regional block grant new global crises, the CSF aims to build expanding an economy-wide approach allocation process coordinated with on the country support groundwork laid to advance policy and analytical work World Bank regional teams, as well as by its GRI. There is now an opportunity to across regions; (ii) deepening support for large, impactful, “deep dive” support to client countries on NDCs and LTSs, provide systematic, scaled-up support programs developed in collaboration (iii) expanding Western Balkans support to countries in undertaking ambitious with the NDCP. The latter will be tailored to additional countries, and (iv) assisting and targeted sectoral climate-related to address gaps in countries’ NDCP in climate systems transitions in sectors reforms and investments by supporting plans and build on CCDR analysis/ that are key to decarbonization and developing countries in advancing a recommendations, allowing the World climate resilience. systems transition across key GHG- Bank to scale up its contribution to the NDCP. Future support will also emissive and climate-vulnerable systems emphasize technical assistance for to meet their long-term climate goals, WHOLE-OF-ECONOMY IDA/Blend8 countries on NDCs/LTSs. with a specific focus on Methane and PROGRAM Coal. 8 Blend Countries refers to those countries which The CSF will expand its support to are International Development Association (IDA) eligible based on per capita income countries to deploy macroeconomic levels and also creditworthy for some IBRD drivers for climate action with a borrowing CSF Annual Report 2023 › 39 Photo: © st:ljubaphoto 40 ‹ Expanding Climate Ambition Across Sectors Permet, Albania. Photo: Lukas Bischoff CSF Annual Report 2023 › 41 Annex A. Approved Activity-Level Grants Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window Climate-Smart Cities TF0B8565 AFW Chad Addressing urban waste 350,000 Assess the current state of and Greening Urban management, implementing the urban solid waste sector, Areas in Chad green recovery activities, drainage in recurring urban and greening urban areas to flooding areas, and urban help prevent flooding, provide greening opportunities  green job opportunities Climate-Smart Urban TF0B7198 AFE Ethiopia Support climate-smart 200,000 Climate-smart investment Development and Urban urban development during planning, mapping of climate Resilience in Ethiopia COVID-19 recovery vulnerability, APEX Climate Action Plan Greening Kenya and TF0B8619 AFE Kenya Support Kenya’s goal to 400,000 Roadmap for Sustainable Strengthening Climate move toward green, resilient, Land Management and Change Governance and inclusive growth Fostering Climate Resilience and Greening Public through creating policy and in Kenya, strategies for Spending governance readiness strengthening climate change governance architecture, and greening public procurement Botswana Economic TF0B7346 AFE Botswana Develop climate-smart 150,000 New climate guidelines that Resilience and Green environmental impact support low-carbon and Recovery assessment guidelines climate-resilient development Malawi Design and TF0B7662 AFE Malawi Prepare and implement 200,000 Increased leverage of private Monitoring of Payment payment for ecosystem resources for landscape for Ecosystem Services services scheme that will restoration (PES) Mechanism support pandemic-impacted communities Promoting Green TF0B8038 AFE Madagascar Support the Government of 300,000 Mainstreaming climate Recovery in Madagascar to implement a change in the national Madagascar green and resilient recovery budgeting; identifying through mainstreaming and prioritizing strategic climate actions in key sectors investments in the of the economy agriculture–land use–water nexus; identification of fiscal policy and instruments to promote low-carbon trajectories; promotion of technology innovations; establishing M&E systems to track impacts of climate- smart interventions Promoting Green TF0B9215 AFE Mozambique Support the Government of 350,000 Natural capital accounting Recovery in Mozambique in implementing for innovative nature- Mozambique a post-COVID-19 green and based solutions to increase resilient recovery agenda; resilience, budgeting, and mainstreaming climate fiscal planning for a green change across the public transition, and developing financial management climate policy and legislation  systems; and developing policies, strategies, and legislation in support of low- carbon, resilient development and NDC implementation Zimbabwe Developing TF0B9125 AFE Zimbabwe Develop climate-informed 200,000 Strengthened climate- and Adopting an investment frameworks that informed infrastructure Integrated Governance improve recovery resource investment via SOEs, public Framework for Climate- use investment management, and Informed PIM, SOE, PPPs and PPP Infrastructure Investments 42 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window (cont.) Mainstreaming Climate TF0B7301 AFW Ghana Advance integrated water 250,000 Improved understanding of Change in Ghana’s management and renewable climate impacts on water Green Recovery energy through Ghana’s resources; approaches to recovery process scale up solar projects Guinea-Bissau TF0B7663 AFW Guinea-Bissau Support recovery in the power 250,000 Improved climate resilience Analytical Support to sector by assessing climate of infrastructure, enabling Solar Energy Scale-up resilience risks and regulatory environment for private sector and Access Project frameworks for IPPs and PPPs renewable energy investment (PADES) Avenues for Green and TF0B7304 EAP China Develop a policy framework 250,000 Remove bias toward carbon- Resilient Growth in EAP for lower carbon metropolitan intensive transport in planning transport and build implementation capacity for green investment Indonesia Power Sector TF0B5875 EAP Indonesia Support preparation of 300,000 Advice on creation of a grid Vision/Pathway Paper a medium- to long-term decarbonization and energy vision paper that will unlock transition strategy investment in the sector and stimulate economic activity Building a Climate TF0B5720 EAP Mongolia Action plan for transition 400,000 Transition recommendations Resilient Agriculture in to a more climate-friendly and action plan; job creation Mongolia agriculture and livestock and poverty reduction sector that will create jobs and reduce poverty Philippines’ Climate- TF0B5993 EAP Philippines Build synergies between the 300,000 Enhanced capacity and Resilient and Low country’s NDC and COVID-19 strengthened institutions Carbon Recovery recovery plan for Green Jobs Act implementation Vietnam’s Energy TF0B6631 EAP Vietnam Support policy development 200,000 Unlock potential of offshore Transition for offshore wind and clean wind and support completion energy access activities of last-mile connections that contribute to economic recovery from COVID-19 Vietnam’s Green Inland TF0B8891 EAP Vietnam Study possible World Bank 40,000 Diagnosis of current Waterways Transport  interventions to promote bottlenecks in inland inland waterway transport waterway transport and and build back better in the opportunities for multimodal logistics sector integration Vietnam Support for TF0B9432 EAP Vietnam Develop an evidence-based 400,000 Identify and inform one city- Low Carbon Cities case for low-carbon cities and level investment; produce a identify investments that can green recovery guide for city contribute to climate-smart governments recovery Development of a TF0B6724 EAP Regional Mainstream climate in 400,000 Design of regional emission Regional Emissions governments’ COVID-19 reduction program, increased Reduction Program recovery process, develop knowledge and capacity for and Support to an ASEAN regional emission climate action and private Implementation and reduction program, and sector greening Monitoring of the EAP assess private sector green Climate Change Action transition efforts Plan Russia Green Housing TF0B6540 ECA Russian Drive economic recovery by 80,000 Incorporate climate and GDP Finance Program Federation supporting finance for green impacts of energy efficiency housing retrofits into financial products; increase decision makers’ awareness of those benefits CSF Annual Report 2023 › 43 Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window (cont.) Compact Cities TF0B6836 ECA Bulgaria Promote mitigation and 200,000 Development of urban growth Approach to Climate adaptation through “compact scenarios, decarbonizing Action in Bulgaria cities” development during modeling, identification of COVID-19 recovery mitigation entry points, and financing options Sustainable Urban TF0B7395 ECA Kazakhstan Assess green urban growth 150,000 Improved understanding of Development in pathways and develop policy green growth trajectories Kazakhstan Cities recommendations for green for cities and improved recovery investments attractiveness of financing Supporting Russia’s TF0B7376 ECA Russian Macro modeling for green 100,000 Strengthened NDC, climate Low-Emission Federation growth and advice on climate policy, and institutional Development Pathway policy to influence recovery reforms investments Social and Jobs TF0B7713 ECA Türkiye Study on a just transition and 70,000 Inform national policy on the Dimensions of Green green growth in the wake of social dimensions of green Growth in Türkiye COVID-19 growth and decarbonization Options for Greener TF0B6250 LCR Brazil Assessment of the current 250,000 Dialogue with and guidance to and Climate Informed fiscal situation and government on green growth Growth in Brazil opportunities for greening paths post-pandemic growth Argentina Energy TF0B6702 LCR Argentina Assessment of the economic 100,000 Knowledge of economic Efficiency impact of energy efficiency impact of energy efficiency measures to address measures and regional COVID-19 impacts on the targeting plan sector Argentina Green and TF0B7389 LCR Argentina Analyze policy options to 150,000 Understanding of policy Resilient Logistics support decarbonization measures to decarbonize of supply chains to support supply chains green recovery in a key economic sector Decarbonizing TF0B7119 LCR Brazil Policy advice for green and 200,000 Quantitative assessment Infrastructure in Brazil resilient energy and transport of infrastructure infrastructure contribution to NDCs, policy recommendations, and assessment of the spending gap for implementing them Scaling Up Affordable, TF0B7241 LCR Antigua and Accelerate post-COVID-19 200,000 Detailed CSF design concept, Clean, and Resilient Barbuda, recovery by developing assessment to inform Energy in the Eastern Dominica, a Renewable Energy capitalization strategy Caribbean Grenada, Infrastructure Facility Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines Haiti Climate Risk TF0B7842 LCR Haiti Integrate mitigation and 200,000 Inform Haiti’s national Assessment resilience in post-COVID-19 recovery plan and target recovery through stocktaking sector strategies and climate risk assessment Honduras Climate TF0B7550 LCR Honduras Support recovery of the 80,000 Understanding of policy Resilient and Low- agriculture sector by measures that would promote Carbon Rural Transport assessing the impact of decarbonization and climate climate shocks on the rural adaptation in rural transport road network in Honduras, and identify benefits of mitigation and resilience investment 44 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window (cont.) Green and Resilient TF0B8756 LCR Regional Identify, design, and 300,000 P​​olicy and investment Recovery for Health implement climate change recommendations for and Health Systems: adaptation and mitigation climate-resilient and inclusive Latin America and the interventions that contribute health systems; developing Caribbean to green recovery and to knowledge products, carrying building resilience in health out knowledge exchanges systems​​  and building capacity of country counterparts Regional Green Growth TF0B8669 LCR Regional Undertake a country 250,000 Integrated report and in Central America assessment to (i) assess the analysis; strategic green total importance of natural recovery dialogue on options resources in countries’ for correcting the identified economies, identify potential bottlenecks in compliance growth gains in these sectors, with countries’ climate goals and propose solutions for reducing barriers to sustainable natural resources Uruguay Development TF0B8107 LCR Uruguay Assess impacts and 250,000 Build macroeconomic of a Planning Tool opportunities derived from tool; enhance institutional for the Assessment implementation of Uruguay’s capacity and cross- of Climate Policies climate goals sectoral coordination on Impacts mainstreaming of climate considerations Pan-Arab Regional TF0B6379 MNA Regional Study how electric systems 200,000 Electricity Planning Model Energy Trade integration will aid carbon updated with climate neutrality, post-COVID-19 considerations Egypt Opportunities for TF0B7783 MNA Egypt, Arab Design policies that can 150,000 Knowledge and Emission Reduction and Rep. reduce agricultural emissions mainstreaming of climate- Long-Term Resilience and build resilience in the friendly agricultural practices Building in Agri-Food context of COVID-19 recovery Value Chains Climate-Smart TF0B7597 MNA Iraq Develop a climate-smart 150,000 Mainstreaming of climate Investment Plan agriculture action plan to change in agriculture foster green recovery Climate Actions for TF0B7799 MNA Iraq Scale up climate action to 150,000 Greater understanding of Green and Resilient Iraq diversify post-COVID-19 constraints to climate action, economic activity investment priorities, and financing framework Afghanistan Climate- TF0B9464 SAR Afghanistan Identify key climate 150,000 Create a climate-smart Smart Agriculture TF0B5909 challenges, policies, and agricultural country Investment Plan (CSAIP) investments for Afghanistan’s stocktaking and recommend agriculture and water sectors investments for resilient agricultural development in support of green recovery Supporting the TF0B5846 SAR Bangladesh, Build government capacity to 100,000 More adaptive social Development of Bhutan assist vulnerable households protection systems Adaptive Social with recovery from climate Protection Systems in and other shocks Bangladesh and Bhutan Building Back a Greener TF0B5996 SAR Bangladesh Provide diagnostics and 150,000 Implementation of green Bangladesh advice for green recovery growth approaches to policy and investment Mapping Climate- TF0B5942 SAR Bangladesh Support the country’s 175,000 Geospatial data on climate- Sensitive Health Risks ongoing COVID-19 related risk, climate-informed to Inform National One Emergency Response Project recovery strategies, and Health Strategy and by building capacity to prevent inputs to NDCs NDCs in Bangladesh and respond to emerging infectious diseases CSF Annual Report 2023 › 45 Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window (cont.) Bangladesh Renewable TF0B6148 SAR Bangladesh Help the Rural Electrification 150,000 More affordable electricity Energy and Battery Board to incorporate solar through deployment of Storage Road Map and battery storage; prepare renewable energy and battery a green transition road map; storage improve sector performance in the face of challenges caused by the pandemic Bhutan Economic TF0B6294 SAR Bhutan Support government recovery 150,000 Inform green finance Diversification/Green efforts by developing and sustainable, resilient Recovery recommendations for green intensification in agriculture economic diversification, and forestry including private sector development Climate-Smart TF0B5974 SAR India Develop a framework for 150,000 Improved planning, municipal Urbanization Framework climate-smart urbanization finance, and service delivery for India in one Indian state that drives capacity for green growth green and resilient growth in response to the COVID-19 pandemic Decarbonizing Freight TF0B5936 SAR India Develop a model and 150,000 Knowledge and an agenda in South Asia map impacts for a green for sector transformation that transformation of the will reduce emissions and trucking industry that increase competitiveness reduces emissions and builds resilience to future shocks Green Hydrogen TF0B5754 SAR India Support the Government 200,000 Informed decision making Opportunities and of India’s understanding of on green hydrogen, Roadmap for India the uses of hydrogen for supporting decarbonization, low-carbon development manufacturing, and energy and support green recovery security by reducing energy price fluctuations and increasing energy independence Development of TF0B8104 SAR India Assessing risks, identifying 100,000 Inception and background Resilient Programs for policy and investment options, analysis; assessment of Northeast India and providing capacity disaster and climate risks of training for improved disaster eight states; risk, resilience, risk management and climate and systems assessment mitigation of key sectors; emissions profile and assessment; identification of high-return policies, institutional capacity building and investments, including development of resilient, green, and inclusive road maps; systemic stakeholder engagement; and communications Advancing Climate TF0B9101 SAR India Strengthen institutional 137,140 Building institutional Action in Surat City arrangements for climate capacities for climate action action and inform the and recommendations Waterfront Development and for risk-informed and Rejuvenation Project design resilient waterfront with resilience assessments development project and decision-making frameworks Integrated Planning TF0B8526 SAR SAR countries Support more integrated 150,000 Support for green recovery Model for Resilient planning of clean and resilient and limiting lock-in of Transport Networks in transport infrastructure that environmentally destructive South Asia will help key economic sectors investments recover by reducing costs 46 ‹ Expanding Climate Ambition Across Sectors Tenkodogo, Burkina Faso. Freshly harvested chillies are spread out on the ground to dry in the sun. Photo: ALEXANDER BEE CSF Annual Report 2023 › 47 Grant amount Grant name Region Country Description (US$) Expected outcomes Project Design and Implementation Support Window (cont.) Recommendations TF0B5860 SAR Nepal Study policy reforms to 125,000 Recommendations for for Agriculture Policy support climate-smart agricultural policy reform and Reform in Support of agriculture and increase fiscal green, resilient, and inclusive a Resilient and Green space for green, resilient, and expenditures Recovery inclusive recovery investment Agri-Water-Energy TF0B5823 SAR Pakistan Provide recommendations on 180,000 Assessment of the effects of Sector Reform Review sustainable and low-carbon solar groundwater extraction for Punjab irrigation to the Government and identify opportunities for of Punjab in support of solarization the clean energy targets announced in the context of the COVID-19 crisis Low-Carbon, Climate- TF0B7211 SAR Regional Develop a toolkit for building- 120,000 Mainstream climate in World Resilient Cooling and with targeted level low-carbon ventilation Bank–financed building Ventilation Systems in support for systems, supporting work investments; develop indoor South Asia Bangladesh, to improve ventilation in air quality and thermal Pakistan, India response to COVID-19 comfort standards Industrial TF0B6634 SAR Pakistan Identify opportunities for 300,000 Policy and investment options Decarbonization in industrial decarbonization to for future World Bank lending Pakistan reduce energy costs during operations recovery Programmatic ASA for TF0B7439 SAR Regional Analytics and technical 500,000 Integration of climate in new Transformative Climate assistance to support lending operations Action in South Asia World Bank green recovery investments Investigating Green TF0B7979 SAR India Analysis of policies for 150,000 Climate-informed future Growth Constraints and green recovery and growth; economic stimulus, Opportunities for India knowledge exchange with the infrastructure, and sectoral Reserve Bank of India policies Analytical Tools and Methodologies Window Scaling Up Climate TF0B7158 AFE Angola Support the Government of 74,036.23 Support COVID-19 recovery Analytics in Angola Angola and World Bank Group efforts and climate change to develop a climate-informed preparedness and resilience investment and reform building in the country, program to achieve Angola’s providing decision makers in- development goals in the depth analytics on areas that context of climate change, are critical to the achievement through climate resilience of the country’s development and energy decarbonization goals pathways Scaling Up Climate TF0B7061 AFE Rwanda Support the government’s 37,938.60 Support Rwanda’s Analytics in Rwanda efforts to achieve preparation of a long-term development goals in the low-emission development context of mitigating and strategy in the future adapting to climate change and identify opportunities for climate action Support to Modeling TF0B8026 AFW Burkina Faso, Analyze how the G5 Sahel 117,924.35 Enable policy decision making Aspects of the G5-Sahel Chad, Mali, countries can achieve their and investments to be made CCDR Mauritania, development goals in the based on sound economic Niger context of climate change and climate analysis and in line with each country’s climate ambitions EAP Climate Analytics TF0B6904 EAP China, Support analytical work to 120,000 Informed or strengthened for Low Carbon and Indonesia, assist countries in EAP in climate-related policies, Resilient Development Philippines, accelerating critical climate strategies, and regulatory Vietnam transitions, particularly by or market frameworks informing the World Bank’s and investment (in all four engagement through the EAP countries) Climate Action Plan and in the process also help support ongoing CCDRs 48 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Analytical Tools and Methodologies Window (cont.) Social Sustainability TF0B7343 EAP China Define a Social Sustainability 120,000 Identification of policy Assessment for the Assessment Process that interventions and investment Energy Transition in draws on global lessons projects that are relevant China learned for achieving a just and concentrated to support transition away from coal regions and groups most in power, and to describe a need and that are delivered baseline of vulnerability and with their participation at the potential adverse impacts of local level: investments in this transition that will inform SMEs, consulting services, strategic planning to identify and technology research; customized approaches to private sector investment in socioeconomic development public goods such as clean for revitalization in China energy and infrastructure, digitization and connectivity, circular economy, including through waste management and resource efficiency Supporting Pathways TF0B7342 EAP Indonesia Promote community 240,000 Support communities to for a Just Transition for engagement for supporting prepare for a just transition All and Climate Resilient pathways for a just transition for all, and improve Local Development in for all and climate-resilient understanding of climate Indonesia development in Indonesia risks and the shift to a decarbonized economy through better planning and budgeting at the village level Assessment of TF0B7200 ECA Kazakhstan, Analyze key opportunities 106,183.96 Help governments build Economic Opportunities Russian from the climate transition to a positive story about the from Climate Change Federation, help governments (i) know transition and understanding in ECA Ukraine, where to focus programs and on how best to allocate Türkiye support and (ii) build support resources to drive the with key constituencies for transition while improving climate action economic outcomes (and inform NDCs implementation and LTSs) Promoting the TF0B9809 ECA All ECA Support for a green transition 300,000 Trade-induced green Achievement of the countries through human development transition case studies in Green Transition in Türkiye, Ukraine, Serbia, and ECA through Human Kazakhstan; develop Healthy Development Green Jobs and Skills analysis framework; and dialogue with ECA client countries to operationalize the findings of the studies Serbia Inclusive, TF0B7980 ECA Serbia Strengthen and empower 125,000 Improve national-level policies Responsive Coal local governments in Serbia and practices in support of a Transition to take the lead in coal mine just transition for all, as well as transition in their communities the transition of specific target and to ensure that the design communities likely impacted and implementation of by mine closures in relation transition plans are guided by to the planned World Bank robust citizen engagement operation and responsive to the needs of vulnerable groups Climate Informed TF0B6377 Global World Support World Bank country 500,000 Climate change integrated Country Diagnostics poverty economists to in recovery analytical and Poverty integrate the impacts of instruments and World Bank Assessments climate change and climate development policy lending policy into assessments CSF Annual Report 2023 › 49 Grant amount Grant name Region Country Description (US$) Expected outcomes Analytical Tools and Methodologies Window (cont.) Climate-Informed Public TF0B5853 Global World Provide technical support 500,000 Make climate a focus of Expenditure Reviews to World Bank country this core World Bank Group economists to integrate diagnostic tool climate into Public Expenditure Reviews Financial Sector Climate TF0B5696 Global World Refine methodologies for 375,000 Support for more sustainable Risk Modeling & climate risk in financial sector investment Implementation analysis Forward-Looking Multi- TF0B6185 Global World Develop model that scales 500,000 Improved climate-fiscal Regional Input-Output up analysis of induced policy decisions driven Model structural shifts and quantify by access to user friendly sectoral output, trade, and quantitative projections which employment effects. account for employment and competitiveness effects. Green Competitiveness TF0B6827 Global World Build government capacity 242,427.47 Analytics and policy design for Response Program to promote private sector competitiveness in the face of participation in green recovery natural shocks GOV Global TF0B8446 ECA Ukraine Integrate climate change 100,000 Institutions better informed (ECA/Ukraine/ considerations into the about mainstreaming climate Public Investment upfront design and evaluation considerations through public Management) of public-private partnership investment management (PPP) project proposals Macro-Criticality of TF0B9098 Global World Enhance the diagnostics 1,000,000 Identify critical characteristics Climate Change and analytics of the macro- of the socioeconomic system economic assessment of both that are relevant for the physical climate impacts and comprehensive assessment low-carbon transition policy of the macro-criticality of impacts at the knowledge climate-related impacts frontier Macro Modeling of TF0B5947 Global World Strengthen the climate 2,500.000 Mainstreaming of the climate Climate Change features of macroeconomic agenda in World Bank work models used by the World and support for better climate Bank policy making Getting to Net-Zero: TF0B5763 Global West Bank and Increase understanding 500,000 Identified pathways for power Decarbonizing Energy Gaza, Chad, of how the World Bank’s sector decarbonization in Pathways Mozambique, Energy and Extractives Global client countries Senegal, South Practice operations align Africa, Ghana, with countries’ mitigation Philippines, objectives Vietnam, Indonesia, Türkiye, Uzbekistan, Ukraine, Bangladesh, Pakistan, Brazil, El Salvador, Dominican Republic, Jordan, Lebanon, Tunisia Mainstreaming Climate TF0B5416, Global Jordan, Sierra Mainstream climate change 1,000,000 Better response to climate Change in Governance TF0B8446 Leone, Liberia, in the World Bank’s core risks and opportunities, India, Ethiopia, governance support to client institutions and policies that Serbia, countries advance climate action Ukraine, Brazil, Philippines, Costa Rica 50 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Analytical Tools and Methodologies Window (cont.) Mainstreaming TF0C0018 Global World Provide technical support and 160,000 Improved NDC Mitigation Outcome guidance to generate MOs implementation and utilization Asset Development in from underlying World Bank of carbon market instruments World Bank Operations financed projects. to attract additional finance. People-Centered TF0B8621 Global World Build capacity to address 340,000 Improved people-centered, Approaches to Green physical impacts of climate inclusive, and participatory Recovery: Global and change and support the approaches to green recovery Country Support design and implementation of from COVID-19 and climate inclusive green recovery and change mitigation and low-carbon growth transitions. adaptation. POV Global – Evergreen TF0B7745 Global World Enhance World Bank capacity 400,000 Provide country clients Development: Welfare- to assess the distributional detailed understanding of who Climate Solutions impacts of climate and climate are most vulnerable to shocks actions and provide advice to and the consequences of governments considering the existing uncertainties, and complexities and uncertainties identify potential mitigation inherent in forecasting and adaptation strategies that will require institutional strengthening Scaling Up Global TF0B9746 Global World Improve knowledge and 300,000 Support the development of Climate Action for understanding of the climate climate and health analytics, Health and health nexus at the provide operational support, global level and inform HNP and support coordination and operations advocacy activities Support for Country TF0B9155 Global World Develop global tools, 350,000 Support analysis across all and Climate Diagnostic platforms, and resources for CCDRs; country-specific Reports (CCDRs) teams working on CCDRs; analytics, strengthen sectoral tools and resources for support across CCDRs based country-specific analytics for on demand for sectoral CCDRs; and sector-specific analyses on climate and tools and resources for development CCDRs The Political Economy of TF0B5650 Global World Develop recommendations 400,411.57 Tools, methodologies, and Climate Policies for politically feasible climate recommendations for policy policies that address social design considerations Innovations in Modeling TF0B7065 LCR Argentina, Expand existing modeling 119,189.25 Enable deeper understanding the Macroeconomic Brazil, tools for the CCDRs in LRC, of the links between climate Impacts of Climate Honduras, to link sectoral analysis to change and development Change in LCR Peru macroeconomic modeling and better policy (using the World Bank recommendations at the macrostructural model) sectoral and macro levels in and eventually evaluate the LCR macroeconomic impacts of NDCs and long-term strategies Jordan Jobs and Skills TF0B7509 MNA Jordan Analyze how the 72,094.06 Inform the development of Analysis for Climate transformation of Jordan’s government policies related to Transition economy toward a low- supporting green investments carbon, climate-resilient one for job creation, building in the context of Jordan’s skills for a climate responsive updated NDCs and Paris economy (education), and Agreement commitments facilitating the transition to could translate into more and greener jobs and ensuring a better jobs just transition CSF Annual Report 2023 › 51 Grant amount Grant name Region Country Description (US$) Expected outcomes Analytical Tools and Methodologies Window (cont.) Green and Resilient City TF0B7087 MNA Egypt, Arab Develop robust analytical 150,000 Integrate and mainstream Analytics in Egypt and Rep.; Iraq work focusing on the Green climate risks and green Iraq and Resilient Cities agenda in growth–related sensitivities selected countries to inform and considerations into the actions required to pivot subnational policies, systems, toward sustainable, climate- and processes that would smart urbanization that is enable a shift in the way cities climate-resilient and green are planned, serviced, and managed, by being more responsive to rapidly evolving climate issues Climate Analytics for TF0B7578 SAR Bangladesh, Provide analytical support 167,607.31 Rigorous analytics and Supporting Low- Nepal, to facilitate the delivery actionable policy and Carbon and Resilient Pakistan of South Asian countries’ investment recommendations Development climate commitments as furnished by this work articulated in their NDCs and will further influence broader climate-resilient and policy dialogue and future decarbonization pathways investments for the World while achieving sustainable Bank and other development and inclusive growth and partners poverty reduction Supporting Just TF0B9860 SAR India Promote community-led 100,000 Identifying social impacts Transition and Inclusive and inclusive tools and of just transitions, and Climate Action in India methodologies to build the assessment of the resilience of groups most government’s role and vulnerable to the impacts of supporting the identification climate change and transitions of inclusive and resilient in India and support their role investment strategies that in facilitating climate action incorporate a just transition away from coal and effective climate adaptation Western Balkans Green Recovery Support Window Albania Blue Economy TF0B8033 Western Albania Support Albania’s blue 500,000 Promote integrated and Development Balkans economy development with circular approaches and a focus on cleaner coastal resilient coasts waters and ecosystems Albania and Serbia TF0B9587 Western Albania, Serbia Conduct green finance 170,259 Strengthened policy and Green Finance /TF0B5941 Balkans diagnostics and road maps regulatory frameworks for Diagnostics and green finance Roadmaps Supporting a Just TF0C0051 Western Bosnia and Grant activities are supporting 360,000 The activity is expected to Transition in Coal Balkans Herzegovina the assessments and surveys inform a just transition plan Mining in Bosnia and that are required to inform that will mitigate social and Herzegovina a social and economic labor impacts associated with mitigation plan from transition the anticipated closure of away from coal mining in coal mines in the Federation communities of the Federation of Bosnia and Herzegovina of Bosnia and Herzegovina (FBiH). (FBiH), including assessing options for redeployment of miners and other affected workers. Analytical Support to TF0B7337 Western Bosnia and Support policy reforms and 660,000 Model impacts of air pollution Guide Air Pollution Balkans Herzegovina, investments to reduce air measures and inform a Investments and Policy North pollution and meet EU air portfolio of investments and Reforms in the Western Macedonia, quality standards policy reforms Balkans Kosovo Behavioral Insights for TF0B7245 Western Bosnia and Use behavioral insights to 130,000 Innovative solutions to Air Quality Management Balkans Herzegovina, support the transition to support access to affordable, and Energy Efficiency in Serbia, sustainable residential heating reliable, sustainable modern the Western Balkans Kosovo, North energy Macedonia 52 ‹ Expanding Climate Ambition Across Sectors Nepali street seller selling vegetables in Bhaktapur, Nepal. Photo: hadynyah CSF Annual Report 2023 › 53 Grant amount Grant name Region Country Description (US$) Expected outcomes Western Balkans Green Recovery Support Window (cont.) Greening Motorization TF0B6302 Western Albania, Identify policies and 250,000 Promotion of newer and less in Western Balkans Balkans Bosnia and regulations to mitigate polluting vehicle fleets Phase 1 (v. 2) Herzegovina, pollution and emissions Kosovo, impact of motorization Montenegro, North Macedonia, Serbia Integrating Climate TF0B8910 Western North Provide the first 120,000 Support the mainstream Change Perspectives Balkans Macedonia comprehensive analysis on climate in macro-fiscal into Fiscal Policy the fiscal implications of management meeting North Macedonia’s NDC, and the Long-Term Strategy on Climate Action Integrating Climate TF0B6475 Western North Support the Government 200,000 Climate mainstreamed in Perspective into Public Balkans Macedonia of North Macedonia to public financial management Financial Management mainstream climate in public processes Agenda financial management Improving an Enabling TF0B9887 Western Montenegro Improve the enabling 400,000 Preparation of cost-effective Environment for Balkans environment for effective pollution management Effective Pollution pollution management in investment packages Management in Montenegro while advancing for selected pollution Montenegro the country’s climate change hotspots/sites; generation action of knowledge base to inform the government’s solid and plastic waste management policies and inform priority investments; institutional strengthening for effective implementation of environmental and pollution management related policies and measures Just-in-Time Sub- TF0B7607 Western Albania, Provide targeted, just-in- 250,000 Develop policy papers that Component Balkans Bosnia and time support for analytics inform the design of the World Herzegovina, and technical assistance Bank’s lending pipeline in the Kosovo, to governments and policy region, related to air quality Montenegro, makers in the Western management, green finance North Balkans mechanisms, carbon prices, Macedonia, clean mobility solutions, and Serbia low-carbon energy transition Feasibility Studies for TF0C0369 Western Kosovo Preparation of site 550,000 Deliver conceptual site Two Contaminated Balkans investigation and feasibility models with all potential risk Sites—Support studies of remediation and assessment source-pathway- Implementation of the redevelopment plans for two receptor linkages Greening Land Project contaminated sites in Kosovo Montenegro and TF0B9965 Western Montenegro, Development of a more 200,000 Establishment of a foundation Kosovo Rail Network Balkans Kosovo resilient transport and trade for mainstreaming climate Resilience system in the Western Balkans resilience considerations in to secure a pathway to low the rail transport sector in emissions and climate- Montenegro and Kosovo resilient development Supporting People- and TF0B7855 Western Serbia Inform the design of options 450,000 Develop approaches to Community-Centered Balkans for mitigating social and labor address socioeconomic and Approaches to Just impacts and environmental environmental impacts of coal Transition in Coal Mining reclamation of lands mine closure in Serbia associated with the closure of coal mines 54 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Western Balkans Green Recovery Support Window (cont.) Supporting the Design TF0B7582 Western Kosovo Support low-carbon, 500,000 Inform the design of climate- and Preparation of an Balkans sustainable, and inclusive smart urban infrastructure Integrated “Livable urban upgrading projects, Prishtina” Program urban mobility, and air pollution management in Prishtina Serbia Transforming TF0B7965 Western Serbia Identify circular economy 350,000 Assess options to reduce crop Crop Residue Balkans approaches to address residue burning Management for burning of agricultural Improved Air Quality residues to improve air quality Western Balkans TF0B7095 Western Albania, Develop a stakeholder 120,000 Climate and transition policy Green Growth Balkans Bosnia and engagement platform for dialogue that better reflects ASA Stakeholder Herzegovina, the Western Balkans Green the voices of impacted Engagement Platform Kosovo, North Growth program stakeholders & Social Dimensions of Macedonia, Green Growth Analysis Montenegro, Serbia NDC and LTS Support Malawi: Development TF0B8108 AFE Malawi Technical assistance to 200,000 Improved capacity and of Natural Capital mainstream natural capital coordination to implement Accounting accounting (NCA) for climate NCA in context of NDC resilience; NCA action plan for implementation/tracking NDC implementation Analytics to Support TF0B9588 AFE Lesotho Flood/drought risk analysis; 200,000 Better understanding of LTS Development in GHG baseline data for three climate risks and GHG Lesotho sectors; spatial planning emissions; more informed analysis for LTS development LTS development; improved long-term climate and development planning Decarbonizing the TF0B9648 AFE Tanzania Assessment of industrial 150,000 Improved ability to implement Industrial Sector in sector policies; industrial industrial sector policies Tanzania sector NDC implementation contributing to NDC plan; capacity building mitigation goals Supporting Climate TF0B8903 AFE South Africa Institutional arrangements, 250,000 Improved government Action in South Africa policy framework, and national capacity to participate in through International strategy for participating in carbon markets and mobilize Carbon Markets carbon markets to finance resources for climate action climate action Supporting TF0B9957 AFE Ethiopia NDC implementation plans 400,000 Strengthened governance Implementation of for four sectors; institutional and ministerial capacity to Ethiopia’s NDC assessment; governance implement sectoral actions to framework recommendations achieve NDC goals Enhancing TF0B7479 AFW Ghana Agriculture, forestry, and 380,000 Coherence across policy Implementation of other land use/ climate- instruments for NDC Ghana’s NDC and smart agriculture policy implementation and Ensuring Coherence recommendations; legal accelerated climate action across Policy framework and carbon pricing Instruments feasibility analysis Climate Support to TF0B9846 AFW Multi-country National climate finance 425,000 Strengthened government Sahel Countries for (Mali, Niger, mobilization strategy for capacity and coordination to NDC Implementation Burkina Faso) Burkina Faso; revised NDC mobilize investment for NDC investment plans for Mali adaptation actions; improved and Niger; G5 peer-to-peer understanding of climate exchange on NDC investment financing options for NDC planning implementation Côte d’Ivoire, Benin, TF0B8991 AFW Multi-country Climate-informed 325,000 Improved data and Togo: Macroeconomic (Côte d’Ivoire, macroeconomic models for understanding of and Climate Modeling Benin, Togo) Togo, Côte d’Ivoire, and Benin; macroeconomic impacts/ for NDC Implementation training on use of models; costs of NDC policies; identification of alternative strengthened capacity to NDC financing options use models and include NDC measures in national budgets CSF Annual Report 2023 › 55 Grant amount Grant name Region Country Description (US$) Expected outcomes NDC and LTS Support (cont.) Strengthening TF0C0336 AFW Mauritania NDC implementation plan; 300,000 Improved NDC coordination, Mauritania’s Capacity to MRV system design; design of understanding of NDC Implement its NDC projects to restore degraded measures (including land for climate adaptation landscape restoration), and ability to monitor NDC progress Cambodia LT-LEDS and TF0B6462 EAP Cambodia Development of LTS and road 330,000 Long-term vision for low- Roadmap Development map; analytical work in key emission development; sectors; analysis of resilience improved capacity to achieve NDC and net-zero goals Harnessing the Power TF0B8286 EAP Mongolia Analysis of nature-based 350,000 Improved understanding of of Nature for Climate solutions for mitigation and potential of nature-based Outcomes in Mongolia adaptation; prioritization of solutions to achieve NDC and actions co-benefits Development of a Long- TF0B7359 EAP Lao PDR Development of LTS and 330,000 Enhanced capacity to term Low Emission implementation road map; implement NDC and achieve Development Strategy policy analysis and climate- 2050 net-zero goal (LT-LEDS) for Lao PDR risk screening tools for 2020-2050 Ukraine Green TF0B7143 ECA Ukraine Sectoral NDC implementation 540,000 Enabling of green transition, Transition planning; NDC/LTS impact achievement of NDC, assessments; institutional and pathway to net-zero readiness emissions by 2060 Growth Recovery to TF0B7627 ECA Armenia GREEN Armenia platform on 360,000 NDC implementation and Empower, Equip and climate, green growth, LTS; climate risk management Nurture (GREEN) green financing strategy; mainstreamed into Armenia sectoral NDC road maps development planning Life in Transition Survey: TF0B7686 ECA Multi-country Multi-country survey to gauge 432,000 Improved evidence based Deep Dive on Transition (Albania, public opinion on COVID-19 on public support for climate to Green Economy Armenia, recovery and climate action ambition, NDC goals, LTS Georgia, for use by policy makers development Kyrgyz Republic, Ukraine, Tajikistan) Decarbonizing TF0B7499 ECA Multi-country Green transport emissions 720,000 Decision makers supported Transport Connectivity (Kyrgyz models, investment projects, to prioritize transport policies/ in Central Asia Republic, mitigation strategy, and investments that increase Tajikistan) financial solutions to achieve connectivity and reduce NDC mitigation goals emissions Georgia: Support to TF0B7743 ECA Georgia Green finance working 360,000 Improved coordination Green Transition group to coordinate NDC for NDC implementation/ investments; technical monitoring; enhanced assistance on fiscal impacts, capacities for greening PFM financial instruments, and PFM for NDC implementation Climate-Smart TF0B9435 ECA Tajikistan Analysis of agriculture sector 218,000 Improved ability to Agriculture in Tajikistan mitigation and adaptation implement climate actions measures to support NDC in the agriculture sector, goals contributing to NDC goals Green Financing for TF0C0024 ECA Kyrgyz Green budget tagging 370,000 Improved alignment NDC Implementation in Republic guidelines, green financing of financial flows with Kyrgyz Republic road map, and green climate action; scaled-up taxonomy to track/mobilize finance to accelerate NDC NDC implementation finance implementation 56 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes NDC and LTS Support (cont.) Supporting Long-Term TF0B8773 ECA Uzbekistan Low-carbon development 600,000 Long-term, low-carbon Low-Carbon Planning in pathway and sector analysis; development strategy Uzbekistan analysis of sectoral and with targets and actions economywide decarbonization across sectors; improved opportunities; impact data and understanding on assessment of policies and macroeconomic impacts; pathways on vulnerable strengthened evidence and categories and entire capacity for integrating economy climate change into long-term development priorities Knowledge Products for TF0B8775 Global World Tools/guidance notes for 95,000 Countries supported Long-Term Low-Carbon developing LTSs, applying to develop long-term Planning LTSs to government decarbonization strategies processes, and leveraging for 2050 LTSs to inform World Bank engagement Climate Finance TF0B9156 LCR Paraguay Costing of NDC adaptation 250,000 Improved information and Roadmap and measures; climate strategy for financing NDC Adaptation Costing in finance road map for NDC implementation Paraguay implementation Improving Information TF0B9548 LCR Mexico Online climate data 200,000 Improved information and and Tools to Increase platform; analysis of climate capacity to implement Climate Resilience in vulnerability; analysis of land adaptation actions/policies Mexico use changes to achieve NDC adaptation goals, including on forestry and ecosystem resilience Macroeconomic TF0C0031 LCR Ecuador Macroeconomic assessment 200,000 Enhanced ability to prioritize Assessment of NDC/ and costing of NDC mitigation NDC mitigation investments; LTS Mitigation Policies measures in transport and improved policy planning to in Ecuador energy achieve NDC targets NDC Implementation TF0B8272 LCR Colombia Costing of NDC mitigation 250,000 Improved ability to prioritize Support in Colombia measures; carbon market and plan NDC mitigation road map; policy advice on measures; enhanced carbon credit ownership on capacity for carbon market public land implementation Support for Greening TF0B8401 LCR Mexico Diagnosis, resource 175,000 Improved ability to fund and Transport in Mexico mobilization strategy, financial implement green transport mechanism, and road map systems in support of NDC for urban public transport goals projects Supporting Long-Term TF0B8776 LCR Dominican Development of LTS and 472,000 Low-emission strategy; Low-Carbon Planning in Republic low-carbon pathways; sector improved institutional capacity Dominican Republic modeling; macroeconomic and evidence; improved analysis data and understanding on macroeconomic impacts; identification of measures to achieve 2030 NDC commitments and 2050 climate targets Decarbonizing Egypt’s TF0B9055 MNA Egypt, Arab Emissions inventories, MAC 360,000 Strengthened capacity Oil & Gas Value Chain to Rep. curves, and decarbonization to implement oil and gas Attain NDCs plans for oil and gas sector; sectoral mitigation actions sectoral governance and MRV to meet NDC goals; framework strengthened governance, monitoring, and regulatory framework Morocco: Job TF0B7753 MNA Morocco Analysis and policy 150,000 Improved knowledge base Opportunities in Energy recommendations to facilitate and capacity to implement Transition a just, inclusive, and job- NDC and create jobs through enhancing clean energy a just, clean-energy transition transition CSF Annual Report 2023 › 57 Grant amount Grant name Region Country Description (US$) Expected outcomes NDC and LTS Support (cont.) Morocco: Climate and TF0B7755 MNA Morocco Sectoral analysis and 150,000 Improved knowledge base to Disaster Resilience recommendations to reduce reduce energy consumption Support energy use through green in residential buildings in line residential building codes with NDC goals Morocco: Solid Waste TF0B7817 MNA Morocco Assessment and technical 100,000 Improved knowledge base on Management notes to support Second solid waste management in National Solid Waste line with NDC goals Management Program Morocco: Resilience of TF0B7996 MNA Morocco Analysis for improved climate 150,000 Increased alignment of water Water Sector resilience and reduced sector strategy with NDC, emissions in the water sector, LTS; increased knowledge in line with water strategy and of renewable energy NDC opportunities for desalination Morocco: Resilience of TF0B7808 MNA Morocco Assessment of climate 41,662.40 Increased knowledge base Rainfed Agriculturea risks; strategy to enhance on agricultural climate risks; agricultural climate resilience increased government in line with NDC goals capacity to implement NDC adaptation actions Morocco: Resilience of TF0B9436 MNA Morocco Assessment of climate 108,337.60 Increased knowledge base Rainfed Agriculture risks; strategy to enhance on agricultural climate risks; agricultural climate resilience increased government in line with NDC goals capacity to implement NDC adaptation actions Morocco: TF0B8060 MNA Morocco Guidance note on options for 150,000 Improved knowledge base on Environmental Fiscality environmental fiscal policies in fiscal policies to support NDC line with NDC goals, building implementation on previous analysis Morocco: Climate- TF0B7861 MNA Morocco Guidance note and 150,000 Improved allocation of Sensitive Budgeting methodology on technical financial resources for climate design of climate-sensitive measures through climate- budgeting and expenditure sensitive budgets; improved tracking monitoring/ reporting of climate finance Morocco: Whole-of- TF0B7873 MNA Morocco Policy advice to align the 60,000 Improved alignment of NDC/ Government Approach financial sector with NDC/LTS LTS policies across sectors; ambitions; support to whole- strengthened capacity for of-government approach to whole-of-government NDC unlock sustainable finance implementation; increased access to finance for NDC/ LTS Supporting Jordan’s TF0B8285 MNA Jordan Prioritization of NDC policy 660,000 Improved planning capacity Climate and NDC reforms; urban waste and and coordination for NDC Objectives water sector analyses; implementation; enhanced adaptation monitoring analytics for key NDC sectors; framework; energy transition improved climate adaptation capacity building monitoring; enhanced energy transition capacity Supporting Long-Term TF0B8774 MNA Jordan Development of LTS for 644,000 Long-term emission- Low-Carbon Planning in submission to the United reduction targets and vision Jordan Nations Framework to achieve them; enhanced Convention on Climate NDC, SDGs, NAP, and other Change; sector modeling; national climate change macroeconomic analysis commitments/strategies; strengthened institutional capacity Supporting Climate TF0B8284 MNA Lebanon Prioritization of NDC policy 510,000 Enhanced capacity to Action & NDC reforms; waste/wastewater implement NDC policies and Implementation in analysis; Beirut water waste strategy; improved Lebanon management guidance resilience of water sector; tool; energy transition policy protection of vulnerable recommendations groups in energy transition 58 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes NDC and LTS Support (cont.) Support for NDC TF0B9976 MNA Tunisia Analyses of city-level climate 460,000 Improved planning capacity, Implementation in risks in Tunis and climate- coordination, and financing Tunisia smart water/energy/food for NDC implementation; interventions; agriculture improved understanding of climate investment plan; climate impacts; improved capacity-building for NDC sectoral knowledge base implementation Advancing NDC and TF0C0169 SAR Nepal Emission factors for two 1,000,000 Updated NDC; improved LTS Implementation in sectors for NDC update; EWS capacity to reduce sectoral Nepal for hydropower; transport emissions and improve sector policy feasibility; resilience in line with NDC local adaptation plans; NDC goals; strengthened NDC coordination mechanism and governance and monitoring monitoring support Pakistan Support for TF0B7900 SAR Pakistan NDC implementation plan 1,000,000 Government supported to Implementation of and policy support; sectoral implement NDC and transition Updated NDCs core analytics; institutional to low-carbon growth through strengthening whole-of-government approach Whole-of-Economy/Economic Advisors Providing Technical TF0B8854 AFE South Africa Supporting the South 250,000 i) Technical advice provided Assistance and Africa Presidential Climate on developing long-term Capacity Building to Commission (PCC) to mitigation modelling capacity, Support the Presidential provide evidence-based ii) climate transition costs Climate Commission in and independent advice on quantified iii) climate finance South Africa viable pathways to a net-zero, strategy developed, and climate-resilient South Africa iv) a just transition fund by 2050 established. Providing Economic TF0B9392 MNA Egypt Supports the Ministry of 280,000 Sharm El Sheikh Guidebook Advisory Support for International Cooperation for Just Financing developed Just Financing in Egypt in identifying and assessing highlighting the needed global sound practices on actions of each of the blended finance and just stakeholders to make climate climate finance projects implementable and investable. Strengthening TF0C0151 ECA Albania Integrating climate change 200,000 i) Albania’s PIM regulations Economic Governance considerations and policies (2018 Decision No. 185 of through Advisory into guidance, procedures the Council of Ministers) Support in Albania and methodologies used and guidelines to align them for program and project with EU standards amended, identification, screening, ii) enhanced capacity, selection and appraisal iii) technical assistance provided to support smooth implementation of the new PIM regulations Transitioning to a Green TF0C0165 ECA Uzbekistan Supports the work of the 200,000 Proposals of key reforms in Economy through Government of Uzbekistan’s priority areas for green growth Economic Advisory Department for the prepared, Support in Uzbekistan Development of the Green Long-term Action Plan for and Innovative Economy, and the Green Growth strategy provides advice to the Ministry prepared and assistance in its of Economy and Poverty implementation, Reduction, and Green Growth Analytical support provided Unit. in development of policies for integration of climate policy and green growth strategy into wider macroeconomic and fiscal management work. CSF Annual Report 2023 › 59 Grant amount Grant name Region Country Description (US$) Expected outcomes Whole-of-Economy/Country Support Conducting a Climate TF0B9958 AFE Comoros Seeks to conduct a Public 100,000 Reduced future costs Change and Disaster Expenditure Review (PER), a due to the replacement of Risk Management diagnostic to analyze public investments affected by Analysis for the expenditures and revenues climate change, including Comoros and support policy dialogue cyclones; and enhanced with the government, in disaster risk management. addition to incorporate climate change in public investment management, and assess existing specific regulations governing construction and roads works. Furthermore, this assessment will help to prepare guidelines and/ or regulations to increase infrastructure resilience in the country. Strengthening Green TF0C0047 LCR Brazil Strengthening fiscal policy 300,000 A report to support the WBG’s Fiscal Policy in Brazil in Brazil, making it more policy dialogue on green fiscal equitable, efficient and policy in Brazil, followed by fiscally and environmentally operational support to turn sustainable. relevant recommendations into action. Mozambique Poverty TF0C0043 AFE Mozambique The grant will fund a deep 100,000 The climate smart poverty Assessment dive section of the Poverty assessment report is Assessment exploring expected to enhance WB empirically the impacts dialogue with the government of extreme events linked to help assess policies that to climate change, such are likely to help the poor as cyclones and possibly and the vulnerable. It will fill a droughts, on economic knowledge gap and provide systems and indicators insights and analytics that will of household welfare. help prioritize inclusiveness to Cyclones are increasingly the economy’s growth. hitting Mozambique both in frequency and extent of damage. The analysis will draw mostly from geo-spatial data to show the intersection between high exposure to natural disasters, proxies of economic and human welfare costs and the dynamics of the recovery. Strengthening Social TF0C0023 MNA Middle East Strengthens the evidence 800,000 Database on geospatial Change, Equity and Just and North base to inform decision information to identify effects Transition in the Middle Africa makers on climate, with a of climate change in MENA East and North Africa focus on the social and equity Region. Four new operations aspects to develop analysis informed by analytics using on how changes in incentives CSF funding. Two climate affect climate mitigation smart poverty assessments and adaptation, and will be developed. Two poverty complemented by expanding programmatic work programs the tool kit for assessing incorporating the climate the medium- and long-term analytics. distributional consequences through micro-simulation models and econometric estimates, in addition to collecting and analyzing geospatial data. 60 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Whole-of-Economy/Country Support (cont.) Policy Packages for TF0C0071 LCR Central Aims to assess the evolution 250,000 Report that will summarize Inclusive Climate America of public debt and other the fiscal consolidation needs Change Adaptation and key fiscal variables during of each country based on Resilience in Central the COVID-19 pandemic different scenarios (target America and recent severe natural debt-to-GDP ratio and length disasters, and provide a detail of consolidation) and provide assessment of the revenue policy recommendations and spending structure to (revenues, expenditures and identify possible areas for debt management) to support strengthening fiscal policy and the fiscal consolidation need. supporting fiscal consolidation It will help teams in their policy where needed. dialogue and advance work for future operations, technical assistances, and analytical and advisory services. Accelerate Growth TF0C0118 AFE Congo, Supports the DRC to 100,000 CEM report and two case and Poverty Reduction Democratic accelerate growth and poverty studies on mining sector by Strengthening Republic of reduction by strengthening and agri-business through a Macroeconomic macroeconomic stability, climate change lens. Stability in the diversifying sources of growth Democratic Republic of and creating jobs. The Country Congo (DRC) Economic Memorandum is a key growth diagnostic prepared by the World Bank to analyze drivers of growth in the long term and is analyzing the DRC's growth performance, identifying major constraints on diversification and growth with a focus on concrete value chains, and proposing policy options to help the authorities formulate and implement effective policies. Greening the Economy TF0C0123 AFE Malawi Assesses the impact of 425,000 Four regulatory reforms and Financial Sector climate change on business and/or recommendations through Impact expansion and diversification adopted. One regulation and Assessments in Malawi of the economy. framework adopted. 3 entities implemented the recommended changes. Designing a Poverty TF0C0192 AFE Madagascar Contributes to poverty 100,000 Study on the economic costs Reduction Policy in reduction policy design by of extreme weather events Madagascar measuring ex-ante impact caused by climate change in of climate change-related Madagascar. shocks on welfare and conducting comparative analyses of distributional impacts of climate change resiliency policies. Developing a Whole- TF0C0255 SAR South Asia Supports a whole-of-economy 450,000 Four countries with of-Economy Approach approach to climate-informed strengthened institutional to Climate-Informed policies in Bangladesh, capacity to formulate, Policies in Bangladesh, India, Nepal and Pakistan in evaluate and implement India, Nepal and the areas of climate tagged climate-related policies or Pakistan subnational fiscal transfers; climate-informed projects. trade policy for climate Four countries in which change; greening finance; climate-related policies, greening procurement; strategies, and regulatory green industrial policies; or market frameworks were improvements to data and informed or strengthened. modelling capacity; and impacts of natural disasters on poverty and income and distributional impacts of transition paths. CSF Annual Report 2023 › 61 Grant amount Grant name Region Country Description (US$) Expected outcomes Boosting Economic TF0C0284 LCR Caribbean Focused on trade in services 250,000 Analytical paper on fiscal Growth and Fiscal Policy as a pathway to boosting sustainability models to for Resilience in the economic growth, and fiscal assess climate change Caribbean policy for climate adaptation impacts and climate and resilience through adaptation financing strengthening the analytical strategies. Policy note basis and diagnostics to on fiscal rules for climate support effective policy advice resilience and debt on issues relating to a whole- sustainability. of-economy approach to climate change; and improve the capacity of client countries to design and implement climate considerations into their macroeconomic development policies. Integrating Green TF0C0305 MNA Middle East Supports selected 800,000 Advancing Climate-Trade Co- Measures into Private and North countries with identifying benefits in Egypt. Boosting Sector Competitiveness Africa and integrating climate the Growth of Egyptian Clean Strategies Middle East mitigation and adaptation Tech Solution Providers. and North Africa measures into private sector Developing and piloting competitiveness strategies, ‘Green transition manuals’ to and to strengthen the manufacturing companies/ institutional arrangements exporters operating in several for effective leadership of selected sub-sectors in the green private sector Jordan. Boosting adoption competitiveness agenda of green technologies in Morocco and Tunisia. Enabling Policy and TF0C0331 MNA Middle East Advancing the analytical and 900,000 One country in which climate- Institutional Change and North advisory work on priority related policies, strategies for Development and Africa actions in greening the or investments that are Climate Impacts in financial sector to enable reducing emissions and Middle East and North policy and institutional change building climate resilience are Africa for development and climate implemented. Four countries action through mobilizing with strengthened institutional climate finance and managing capacity to formulate, risk in Egypt, Tunisia, evaluate and implement Morocco, and Jordan, climate-related policies or climate-informed projects. Four countries in which climate-related policies, strategies or regulatory or market frameworks were informed or strengthened. Whole-of-Economy/Global Analytics Programmatic Coalition TF0B8851 Global World The program provides 800,000 Accelerated climate action of Finance Ministers for administrative and expert and development by members Climate Action Support technical Secretariat of the Coalition through support for Coalition of peer exchange, knowledge Finance Ministers for sharing, mainstreaming Climate Action. The program climate change in macro- aims to enable climate fiscal and finance policy- action and development by making, and tailoring related members of the Coalition technical assistance and by convening stakeholders, capacity building to the facilitating peer exchange, mandates and activities of boosting knowledge sharing, Ministries of Finance. mainstreaming climate change in macro-fiscal and finance policy-making, and tailoring related technical assistance and capacity building to the mandates and activities of Ministries of Finance. 62 ‹ Expanding Climate Ambition Across Sectors Grant amount Grant name Region Country Description (US$) Expected outcomes Whole-of-Economy/Global Analytics (cont.) Maximizing the Impact TF0B9108 Global World Support the identification of 500,000 An interface between the of the Coalition of capacity building needs and Capacity Development Finance Ministers gaps in Ministries of Finance program and the Coalition Program as regards the themes of the of Finance Ministers as well Whole-of-Economy Program as other regional groupings and scope the outline of the or networks of finance training curriculum of the ministries, providing needs capacity building initiative. assessments for capacity development of finance ministries. New Insights and Policy TF0C0262 Global World Provides new insights of state- 200,000 Analysis of state presence Implications on State- owned enterprises (SOEs)— in carbon intensive sectors Owned Enterprises in which present a powerful such as cement to assess High-Emitting Sectors and important policy lever impacts on private sector for many governments to participation in the market, implement reforms to achieve prices, productivity, exports, their ambitious climate etc. In addition, the analysis mitigation and adaptation will generate data on market target— and draws policy characteristics that make implications of the presence companies more likely to of the state in commercial decarbonize their production activities, and the increased processes and adopt green interplay between the state technologies and innovate. and the private sector in the corporate sector. Providing Options TF0C0309 Global World Enhances options for climate 500,000 The report clarifies the role to Navigate Climate change resilience through the of government and identifies Shocks for Resilient examination of insurance and specific instruments to protect Development protection strategies used by the vulnerable population in families, farms, and firms to the face of climate shocks. navigate climate shocks and assess their implications for adjustments. Source: World Bank. Note: The World Bank Regions are AFE = Eastern and Southern Africa; AFW = Western and Central Africa; EAP = East Asia and Pacific; ECA = Europe and Central Asia; LCR = Latin America and the Caribbean; MNA = Middle East and North Africa; SAR = South Asia. ASA = Advisory Services and Analytics; ASEAN = Association of Southeast Asian Nations; CCDR = Country Climate and Development Report; CSF = Climate Support Facility; EU = European Union; EWS = early warning system. G5 Sahel = Burkina Faso, Mali, Mauritania, Niger, and Chad; GDP = gross domestic product; GHG = greenhouse gas; GREEN = Growth Recovery to Empower, Equip and Nurture; HNP = health, nutrition, and population; IPP = Independent Power Project; LT-LEDS = Long-Term Low-Emission Development Strategy; LTS = Long-Term Strategy; M&E = monitoring and evaluation; MAC = marginal abatement cost; MRV = monitoring, reporting, and verification; NAP = national adaptation plan; NCA = natural capital accounting; NDC = Nationally Determined Contribution; PFM = public financial management; PIM = public investment management; POV = Poverty Global Practice; PPP = public-private partnership; SDGs = Sustainable Development Goals; SMEs = small and medium-sized enterprises; SOE = state-owned enterprise. a. This grant (TF0B7808) was closed early to link to a different project. The balance was transferred to a new TF number (TF0B9436), under which work continues. CSF Annual Report 2023 › 63 Annex B. Climate Support Facility Monitoring and Evaluation Framework – Pillar 1 PILLAR 1: COVID-19 GREEN RECOVERY INITIATIVE STRATEGIC PRIORITY: Rebuilding better and achieving a resilient, inclusive, and sustainable or “green” economic recovery from the impacts of the COVID-19 pandemic. DEVELOPMENT OUTCOME: Strengthened institutions, capacity, and policies for a COVID-19 green recovery that incorporates low emissions and climate-resilient development. OUTPUT 2022 INTERMEDIATE OUTCOME 2022 OUTCOME 2022 1.1 Number (#) of countries that 41 1.1.1 Number (#) of countries in 46 1.1.1.1 Amount of lending volume of 13.0 received capacity building support on which World Bank engagement on operations across the World Bank that green recovery, or low emissions and climate change was advanced in a is reducing emissions and building climate-resilient development in the new or an existing area because of climate resilience (US$, billions) context of COVID-19 recovery support provided by the CSF 1.2 Number (#) of countries that 40 1.1.2 Number (#) of countries in 46 1.1.1.2 Number (#) of countries in 34 received technical assistance for which formulation, evaluation, and which climate action policy formulation, investment implementation capacity of climate- was sustained or advanced in the planning, project design, policy/ related policies was strengthened context of economic recovery from project implementation, or monitoring because of support provided by the the COVID-19 crisis and evaluation to advance climate CSF action in the context of COVID-19 1.1.3 Number (#) of countries in 46 1.1.1.3 Number (#) of countries 45 recovery which climate-related policies, in which climate-related policies, strategies, and regulatory or market strategies, or investments are frameworks and investment were reducing emissions and building informed or strengthened because of climate resilience the support provided by the CSF 1.3 Number (#) of analytics 252 1.1.4 Number (#) of new operations 20 undertaken on green recovery or informed by analytics developed low emissions and climate-resilient using CSF funding development in the context of 1.1.5 Number (#) of new climate- 23 COVID-19 recovery related operations identified for upcoming lending pipeline because of support provided by the CSF 1.1.6 Number (#) of World Bank 46 operations under preparation that integrated green recovery or climate- related measures because of support provided by the CSF Source: World Bank. Note: CSF = Climate Support Facility. 64 ‹ Expanding Climate Ambition Across Sectors Annex C. Climate Support Facility Monitoring and Evaluation Framework – Pillar 2 PILLAR 2: NATIONALLY DETERMINED CONTRIBUTIONS AND LONG-TERM LOW-CARBON AND CLIMATE-RESILIENT STRATEGIES SUPPORT STRATEGIC PRIORITY: Strengthening government coordination and capacity for the enhancement and implementation of NDCs and the development of LTSs in developing countries in contribution to the NDC Partnership work program. DEVELOPMENT OUTCOME: Strengthened capacity to implement the Paris Agreement through NDCs and/or LTSs. OUTPUT 2022 INTERMEDIATE OUTCOME 2022 OUTCOME 2022 2.1 Number (#) of countries that 17 2.1.1 Number (#) of countries with 18 2.1.1.1 Number (#) of countries with 5 received capacity-building support strengthened capacities to enhance enhanced NDCs informed on NDCs or LTSs in the context of low and implement NDCs in one or more emissions and climate resilience of the following areas: climate- relevant policy, finance, monitoring and evaluation informed by NDC-SF support 2.2 Number (#) of countries that 18 2.1.2 Number (#) of countries with 13 2.1.1.2 Number (#) of countries 28 received technical assistance in the strengthened capacities to inform the with defined policies and measures context of low emissions and climate development of an LTS in one or more to implement the Paris Agreement resilience for: support to develop of the following areas: data, analysis, through NDCs and LTSs sectoral or economywide LTSs; methodologies, tools informed by support for climate-relevant policy, NDC-SF support finance, or monitoring and evaluation; 2.1.3 Number (#) of innovative 131 2.1.1.3 Amount of World Bank 9.2 flexible support to enhance or solutions and enhanced knowledge lending that contributes to NDC implement NDCs products utilized for enhancement/ implementation (US$, millions) implementation of NDCs and development of LTSs informed by NDC-SF support 2.3 Number (#) of analytics 87 2.1.4 Number (#) of World Bank 21 undertaken on low emissions and operations under preparation that climate-resilient development in integrated NDC/LTS measures the context of enhancement and because of support provided by the implementation of NDCs and the CSF development of LTSs Source: World Bank. Note: CSF = Climate Support Facility; LTS = Long-Term Strategy; NDC = Nationally Determined Contribution; NDC-SF = NDC Support Facility. The Climate Support Facility is a World Bank multi-donor trust fund that supports developing countries in accelerating their transition to low-carbon and climate-resilient development and elevating the national decarbonization agenda.