2020/2021 GLOBAL PROGRAM ON SUSTAINABILITY ANNUAL REPORT (Rich Carey / shutterstock) © 2021 The World Bank Rights and Permissions: The material 1818 H Street NW, Washington DC 20433 in this work is subject to copyright. Telephone: 202-473-1000; Internet: Because The World Bank encourages www.worldbank.org dissemination of its knowledge, this work may be reproduced, in whole or in part, Some rights reserved: This work is a for noncommercial purposes as long as product of the staff of The World Bank. full attribution to this work is given. The findings, interpretations, and conclusions expressed in this work do Attribution: Global Program for not necessarily reflect the views of the Sustainability: Annual Report Executive Directors of The World Bank 2020–2021 c. © World Bank.” or the governments they represent. Cover photo: Raja Ampat island in West The World Bank does not guarantee the Papua, Indonesia (mariusltu/AdobeStock) accuracy of the data included in this work. 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CONTENTS Executive Summary 7 Pillar One: Global Information on Sustainability 17 Component 1: Measuring Sustainability 19 Component 2: Mainstreaming Sustainability 24 Pillar Two: Country Implementation 29 Morocco30 Zambia32 Uganda34 Egypt37 Selecting new CIC countries 39 Update on targeted technical assistance 40 Africa Community of Practice on Natural Capital Accounting 49 Global outreach: Policy Forum on Natural Capital Accounting for Better Decision Making 51 Pillar Three: Sustainable Finance 53 Data: Improved Sustainability Information for Financial Markets  54 Research Agenda: Effects of Sustainability on the Financial Sector  55 Finance Assessments  58 Capacity Building, Disclosure, and Engagements  58 Monitoring & Evaluation 61 Financial Report 72 Boxes, Figures & Tables Box 1. Contribution to The Economics of Biodiversity: Dasgupta Review 18 Box 2. Outreach and disemination of Road to Kunming reports 20 Box 3. Impact of COVID-19 on Human Capital by region 2018 (% of total) 22 Box 4. Where to Invest $1 million in short-term recovery without degrading Natural Capital? 26 Box 5. Morocco: Integrating NCA in the Blue Economy 32 Box 6. Cambodia: Informing a World Bank project on Sustainable Landscape and Ecotourism via GPS TTA support  42 Box 7. Africa Regional Community of Practice at a glance 50 Box 8. Blogs published from Jan 2020 to June 2021 55 Box 9. World Bank Sovereign ESG Data Portal: key facts 56 Box 10. Research Publications on Sustainable Finance prepared 2019–2021 57 Box 11. Detailed activities related to capacity building and engagement  60 Figure 1: Environmental Fiscal Reform and its potential double dividend 23 Figure 2: Example images of GeoESF and its automatic reporting feature 24 Figure 3. Summary data on approved TTA Grants 47 Figure B1: Change in 2030 Real Gross Domestic Product (GDP) under select Ecosystem Collapse Scenarios compared with No-Tipping-Point Scenario, by Income Group 18 Figure B2.1 (above): Report covers from the Road to Kunming series 20 Figure B.2.2 (below): twitter promotion for Unlocking Nature Smart Development and The Economic Case for Nature  20 Figure B3: Impact of COVID-19 on Human Capital by region 2018 (% of total) 22 Figure B4: Economic and environmental impacts of investment 26 Figure B7: Distribution of Africa Regional Community of Practice members  50 Table 1: Progress in achieving GPS / Waves Plus results 9 Table 2. Update on TTA tasks approved in FY19 and completed in FY20 43 Table 3: New TTA tasks approved in FY21 48 Table 4. Hybrid approach to result reporting 63 Table 5. Progress in achieving GPS/ WAVES Plus results 64 Table 6. Progress in achieving GPS Impact indicators  64 Table 7. Pillar 1 Result indicators (GPS Results Framework) 65 Table 8. Pillar 2 Result indicators (WAVES Plus) 67 Table 9. Pillar 2 Result indicators (GPS) 69 Table 10. Pillar 3 Result indicators (GPS Results Framework) 70 Table 11. Financial Summary (in US$, as of June 30, 2021) 74 Table 12. Donor Pledge and Contribution Summary (as of June 30, 2021) 76 Table 13. WAVES Plus Trust Fund: Summary of disbursements and commitments (in US$, as of June 30, 2021) 77 Table 14. GPS Trust Fund: Summary of disbursements and commitments (in US$, as of June 30, 2021) 79 Table 15. Disbursements by expense category (in US$, as of June 30, 2021) 81 Tropical fish swim amongst mangroves in the Caribbean Sea in Panama (Damsea / shutterstock) EXECUTIVE SUMMARY The Global Program on Sustainability (GPS) is the World Bank’s umbrella program on Natural Capital Accounting (NCA) and the economics of sustainability, and includes the activities supported by the WAVES Plus Trust Fund (Wealth Accounting and the Valuation of Ecosystem Services), which will complete its activities at the end of 2022. GPS is supported by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), the Department for Environment, Food and Rural Affairs, United Kingdon (DEFRA), Netherlands Ministry of Foreign Affairs (MINBUZA), and the State Secretariat for Economic Affairs, Switzerland (SECO) Taking over from where the previous Annual Report left off, this report provides an overview of activities financed by the GPS and WAVES Plus Trust Fund till the end of Fiscal Year 2021 (June 30, 2021), thus covering two fiscal years (FY20 and FY21). THE COVID PANDEMIC: CHALLENGES AND OPPORTUNITIES This reporting period was shaped by the COVID pandemic, which created new challenges for the program. At the same time, the pandemic underlined the relevance of GPS to global and country level dialogue on how to make development sustainable and resilient to precisely such sudden shocks as COVID-19. In terms of challenges, COVID has resulted in a suspension of all the World Bank’s in-person missions, including those related to the implementation of GPS.Nevertheless,the program continued its global and country level engagement thanks to business continuity arrangements. These include virtual interaction with partners and clients, supported by the network of staff assigned to World Bank country offices, all of which have continued to operate through home-based work arrangements. 7 In most cases, this approach enabled increases the likelihood of zoonosis country office staff to maintain regular processes occurring more frequently. This interactions with government counterparts, makes it essential to fully integrate nature and in several cases to carry out “virtual and ecosystems into the post-COVID missions” involving Headquarter-based staff development model, to make the recovery as well. Activities on country tasks initiated last and ensure that societies will be more in previous years under WAVES Plus have resilient to future shocks. More generally, continued, and in most countries, reached efforts under way to reignite growth completion; GPS has started to operate through stimulus programs are opening in 15 new countries under the Targeted a window of opportunity to integrate Technical Assistance window (TTA); and environmental consideration in the design preparatory work has started on the Core and implementation of such programs. Implementing Country window (CIC), with six new CICs expected to join the With its emphasis on data and analysis of program in in FY22. the economics of sustainability, the GPS is as well placed as ever to meet the challenge On the opportunity side, the pandemic of integrating nature in the development has highlighted the close link between process. Additional financial support human and planetary health. An pledged by donors during this reporting estimated 60 percent of all known period (two million euros pledged by human infectious diseases are zoonotic Germany; and three million Swiss Francs in origin (transferred from animals to pledged by Switzerland) will enhance the humans). There is evidence to show that program’s ability to make a difference. human encroachment on natural areas SUMMARY OF PROGRESS Overall, and despite the COVID-related met (or indeed exceeded, for 58% of the challenges, the program is broadly on indicators); or activities are comfortably track to achieve the results defined on course to achieve it (24%). For less in the WAVES Plus and GPS results than 20% of the indicators, activities to frameworks (Table 1), given the time meet targets are expected to start soon, left prior to the closing of the two Trust barring new COVID-related restrictions to Funds (that is, 1.5 years and 4.5 years for travel, which may result in a slowdown of WAVES Plus and GPS respectively): for country level activities (these account for the vast majority of indicators (83%) the over half of the GPS budget). expected result has either already been A network of mangroves and estury in coastal west Africa (Curioso. Photography / Shutterstock) 8 Global Program on Sustainability Table 1: Progress in achieving GPS / Waves Plus results Result Number of Share of indicators Framework/ indicators pillar Meeting or On their way Relevant Total exceeding to achieve activities target target expected to start soon GPS 26 38% 35% 27% 100% Program wide 7 29% 29% 43% 100% Pillar 1 6 33% 50% 17% 100% Pillar 2 4 0% 75% 25% 100% Pillar 3 9 67% 22% 11% 100% WAVES Plus 19 84% 5% 11% 100% Pillar 2 19 84% 5% 11% 100% Total 45 58% 24% 18% 100% a For each pillar, the table PILLAR 1: GLOBAL DATA AND INFORMATION reports the share of the corresponding indicators that meets or exceeds their GPS provides global data and analytical • Road to Kunming: The World Bank end-of-program targets, tools on Natural Capital and Ecosystem has undertaken a series of reports taking into account the time remaining prior to Services to spur the international debate that lay out the economic rationale the closing of the WAVES on the economics of sustainability and for investing in nature. These seek to Plus Trust Fund (December to provide entry points for country inform the process leading up to the 2022) and the GPS Trust level engagement. The importance of 15th Conference of the Parties (COP- Fund (December 2025) this information has been underscored 15) of the Convention on Biological by the Dasgupta Review (released Diversity. The first report in the series, in February 2021). Commissioned Mobilizing Private Finance for Nature by the UK government and released (published in September 2020), in February 2021, the review made argues that the financial sector has a strong case for fully assessing the a critical role to play in addressing impact of our interactions with nature the global biodiversity crisis, and that and rebalancing our demand with governments and regulators hold the nature’s capacity to meet it. The GPS key to harnessing the power of the team contributed to the Dasgupta financial sector to mobilize private Review, shedding light on the impact finance at scale to protect nature. The of collapse in certain ecosystems on second report The Economic Case countries’ economies. Most of the work is for Nature (published June 2021), relevant to the larger goal of promoting lays out the economic rationale for evidence-based decision-making. During investing in nature and analyzes the reporting period, GPS has supported policies that can reduce ecosystem various cutting-edge data and analytical degradation and simultaneously products. These include: improve economic outcomes. Annual Report 2021/2022 9 The third report, Unlocking Nature- Work on Pillar 1 also saw progress on Smart Development: An Approach the data platform, which is intended to Paper on Biodiversity and Ecosystem be a one-stop shop for data and analysis Services (published in August tools produced with GPS support; and 2021), proposes a menu of global on the Ecosystem Services Assessment response areas intended to guide Toolkit (ESAT), intended to help users governments and inform broader better understand, visualize and report discussions on how to integrate impacts of Bank-supported projects on nature into development agendas. Ecosystem Services. • The new edition of the Changing The support for environmental fiscal Wealth of Nations (to be released in reforms was launched to mainstream the Fall of 2021) includes the most environmental and Natural Capital comprehensive and recent database management into countries’ fiscal policies. of wealth across a broad portfolio of In addition, an environmental-economic assets (natural, human and produced modeling platform was initiated to capital) calculated for 146 countries help countries integrate environmental for the years 1995 to 2018 using sustainability considerations into economic market exchange rates in accordance decisions through formal modeling of with rigorous international standards the impact of policy and investment (System of National Accounts—SNA; decisions on environmental and economic and System of Environmental- variables and, conversely, the impact of Economic Accounting—SEEA). It will environmental conditions on economic also show how wealth accounting can and fiscal performance. be applied to complex policy analysis to yield better informed decisions Pandemic-related economic distress while charting the development prompted a just-in-time analysis for the pathway for a country in uncertain Latin American region, aiming to identify times. This edition also has an sectors with a potential to maximize expanded coverage of Natural Capital, the number of jobs created per unit of Wilfred Jurado Guaimaral including components of blue Natural investment (namely, job multipliers), and works high on a mountainside on his farm, growing passion Capital for the first time. The book at the same time steer economies toward fruit in the township of La will be released in 2021, and several an environmentally sustainable course Paz in Colombia (Dominic background papers have already been (environmental multipliers). Chavez / World Bank) circulated to inform the dialogues with countries during the report preparation process. 10 Global Program on Sustainability PILLAR 2: COUNTRY LEVEL SUPPORT GPS continues at the level of individual the World Bank Country Manager for countries to promote development and Zambia. Policy impact has been visible: use of Natural Capital data through the Forest Account Technical Report multiple instruments: informed the Apiary National Strategy (involving honey and wax) under the • Support to Core Implementing Ministry of Lands and Natural Resources. Countries (CIC), for more in-depth Zambia included in the 2021 National engagement; Budget a budget line for Forest and Tourism Accounts, to inform land use • Targeted Technical Assistance (TTAs), planning in areas with untapped tourism for just-in-time support; and potential. The country has started to develop Energy and Mining Accounts • Regional Communities of Practice on its own. Follow-up support under (CoPs), for peer exchange and GPS’ Targeted Technical Assistance (TTA) learning window will support institutionalizing and mainstreaming of Natural Capital CIC window: supporting Accounts for policy application, including integration of Natural Capital in enhanced development planning. development planning processes in Uganda, Zambia, Egypt, Morocco Morocco has taken important first steps In all four countries, noteworthy in developing Natural Capital Accounts successful use has been made of GPS/ and set the stage for their future use. WAVES results for policy applications, Fisheries accounts and related modeling and the governments concerned have work is supporting the design of shown marked interest in further interventions in the new World Bank development of the accounts. Blue Economy Program, providing key analytical inputs to the development of In Uganda, the Third National the Halieutis Plan 2030—the country’s Development Plan included Natural main fisheries sector strategy. Accounts Capital Accounting (NCA) as one of and modeling for agriculture is being the strategies to guide investment, taken forward by the World Bank’s development, and management of Agriculture and Food Global Practice natural resources in the country. as part of their technical assistance The Bureau of Statistics has drafted support to the Green Generation Plan a National Plan for Advancing 2030. Finally, the country’s statistical Environmental Economic Accounting, agency (HCP) has expressed an interest to ensure that the country continues in developing water accounts. to produce and use NCA. In addition, publication of adjusted macro-indicators In Egypt, waste accounts for the is now institutionalized within the Governorates of Port Said and the Ministry of Finance. Red Sea have proven instrumental in the design of facilities for sorting and Zambia launched the Forestry, Lands recycling waste. The waste accounting and Water accounts in November framework is being considered as a 2020 at a high-level event with the template for standardizing the tracking participation of three Ministers and of waste throughout the country. Annual Report 2021/2022 11 The air emissions accounts offer one of the Development Initiative (LCDI). Building first efforts to integrate greenhouse gas on these results, GPS has carried out (GHG) emissions and local air pollutants deeper-dive policy-oriented work in such as nitrogen dioxide, sulfur dioxide and two strategic areas, namely valuation particulate matter into a single database. and management of coastal resources This methodology will also be used in the (including mangroves); and, in close World Bank’s Greater Cairo Air Pollution collaboration with the Peatland and Climate Change Project, which plans Restoration Agency (BRG), economic to expand the air emissions inventory to analysis of policy options for improved include mobile sources. The integrated peatlands conservation and restoration. database will provide a comprehensive point of reference for air pollution The two main areas of operational monitoring and reporting. work that TTAs inform are forests and landscape management (Indonesia, Providing just-in-time policy support Cambodia, Kyrgyz Republic, Lao PDR, to eight countries and one subregion Madagascar, Nepal, Uzbekistan), and via the Targeted Technical Assistance Ecosystem Services in coastal areas (TTA) window (Indonesia, Myanmar, Vietnam, and the TTAs are proving to be a valuable WACA program). instrument of engagement, particularly as they are designed to be closely linked In FY21, 15 new TTAs started, focusing to World Bank investment programs. The on four themes: Policy applications of TTA work completed during this reporting NCA/VES, Greening of COVID Recovery period has resulted in the provision of programs, Environmental Fiscal Reform evidence and insights on Natural Capital and support to National Biodiversity and Ecosystem Services that is informing Strategies and Action Plans (NBSAPs). the design of 10 World Bank operations, worth $970 million.1 Countries where TTA work was completed included Cambodia, Scaling up NCA engagement through Kyrgyz Republic, Lao People’s Democratic regional Communities of Practice Republic, Madagascar, Myanmar, Nepal, (CoPs) Uzbekistan, Vietnam. A regional activity Following its launch in mid-2019, the Africa related to the West Africa Coastal Areas CoP has rapidly become an important Management (WACA) program showed forum to continue the conversation significant progress through analytical between countries in the continent on work on mangrove protection for NCA. A WhatsApp group with nearly coastal flooding and the cost of coastal 200 members became a lively hub for environmental degradation—now being sharing information on new publications, used to expand dialogue and work on activities and events, as well as seeking the economic implication of degradation. information on the ‘how-to’ of accounts. The CoP secretariat has been able to Indonesia had concluded the WAVES- facilitate south-south knowledge sharing supported CIC work in 2019, which between Brazil and Mozambique; deliver has resulted in accounts for land cover training on SEEA and developing NCA and land extent; ecosystem accounts roadmaps for Mozambique and Nigeria; for peatlands; and data and modeling and provide access for CoP members to support for the country’s Low-Carbon several online trainings. 1 All dollar amounts are US dollars unless otherwise indicated. 12 Global Program on Sustainability A successful webinar series began in using NCA, with the objective of providing May with a webinar on Linking Policy to guidance for countries on how to NCA, with further webinars every month improve the use of accounting for policy thereafter. development and better decision-making. Continued NCA dialogue Due to the pandemic, there was no forum through Policy Forum in 2020. The Fifth Policy Forum on Natural The GPS continues the WAVES tradition of Capital Accounting for Better Decision global engagement and dialogue on NCA Making – Greening the Recovery will take through Policy Forum on Natural Capital place in September 2021. In June 2021, Accounting for Better Decision Making. an expert workshop was held to finalize The overall aim of the Forum is to share, the scope of the forum and discuss the explore and synthesize the experiences of technical material to be presented. countries that have been producing and PILLAR 3: SUSTAINABLE FINANCE In FY20–FY21 demand continued to grow • Nine research publications were for data and tools that can help financial delivered during the FY20–FY21 time market actors contribute to achieving the period, on sustainable finance topics Sustainable Development Goals, the Paris ranging from ‘mobilizing private Agreement goals, and the goals that are finance for nature’ to ‘climate risk in expected to be set by the Post-2020 Global pension funds.’ The findings of some Biodiversity Framework. GPS support to of these papers were shared with this work has been timely and has fed members of the Coalition of Finance into several influential groups, like the Ministers for Climate Action and the Coalition of Ministers for Climate Action, NGFS. ‘Mobilizing Private Finance the Network for Greening the Financial for Nature’ was referenced several System (NGFS: for central banks and times in the finance chapter of the financial supervisors), and the Sustainable Dasgupta Review. Banking Network. Some highlights include: • The Pillar 3 team began the • The Sovereign ESG Data Portal, development of a methodology for which launched in late 2019 to a nature-related risk assessment provide key information on country- of a country’s banking sector. An level Environmental, Social and assessment was completed and Governance (ESG) performance, published for Brazil and an assessment has been widely used by investors for Malaysia is under way. Additionally, in portfolio analysis and has even Pillar 3 supported the development of informed the design of financial the methodology for the Climate and indices. It was referenced in a major Environmental Risk and Opportunity report of a US financial regulator (CERO) Assessments under the (the US Commodity Futures Trading Financial Sector Assessment Program Commission). (FSAP: carried out jointly by the World Bank and the IMF). Annual Report 2021/2022 13 This analysis provides countries and published the Toolkits for Policy with an assessment of the climate makers to Green the Financial System. and environment-related financial risks they face, and associated • Technical assistance was provided opportunities. The methodology was to the government of Thailand presented to the World Bank Board on integrating ESG into the in June 2021. government pension fund; and to the government of Colombia on • The Pillar 3 team carried out a greening its financial sector. Three number of activities related to additional country and regional capacity building and technical sustainable finance contributions assistance on the implementation are under way (for Sub-Saharan of sustainable finance measures, Africa, Nepal, and Cambodia). LOOKING AHEAD: CONTEXT Progress made in 2019–2020 provides GPS can assist those efforts, offering a solid foundation for GPS to make different entry points for engagement (its further important contributions in the CIC, TTA, COPs windows) to accommodate near future. At the global scale, the different country circumstances. meetings of the Biodiversity Convention (COP-15) and of the Climate Convention Finally, in the sustainable finance arena, (COP-26) are expected to create new following progress made on the climate momentum for scaled-up action on front, stakeholders are increasingly climate and nature. GPS will be able cognizant of the importance of assessing support such momentum, with the the risks posed to financial markets operationalization or finalization of by the loss of biodiversity (as well as innovative analytical work, such as the opportunity to mobilize funding in the Economic Case for Nature and The support of sustainable management of Changing Wealth of Nations. nature). Additional momentum in this direction will be provided by the Task Force At the country level, there is a growing on Nature-related Financial Disclosures awareness of the importance of greening (TNFD), and its work to develop a reporting the development process, particularly in framework. With its ability to connect data the context of the post-COVID recovery. on Natural Capital with financial market To make this a reality, countries will engagements, GPS is well positioned to need the data and tools for properly make important contributions to global integrating nature into stimulus efforts to integrate nature into decisions programs and recovery strategies. made by financial markets. 14 Global Program on Sustainability LOOKING AHEAD: PROGRAM ACTIVITIES In terms of GPS operations, in FY22 the exercise, and the approach to define program will continue implementing baselines to assess the program’s the activities envisaged in the workplan contribution to transformational endorsed by the donors in October change. The current workplan will also 2020. Highlights include: be updated, with a view to discussion at the 2021 Steering Committee of a • Preparation of new global reports, proposal for the scaling up of activities such as the next edition of The made possible by the additional resources Changing Wealth of Nations pledged by donors at the end of 2020. (CWON 2023) and the report on Environmental Fiscal Reform; Assuming that travel restrictions will ease in the near future, the pace of • Engagement in up to six new Core implementation of the county level Implementing Countries (CICs), work is expected to pick up, and with it, based on the approach and process the rate of spending, since over half of defined in FY21; and the program resources are earmarked to country and regional work. • Technical work on green finance to define risks metrics and Key Risks Performance Indicators (KPIs) for The GPS team will remain alert to the assessing climate- and nature- risks that external factors could pose to related outcomes to which financing program execution (and correspondingly can be linked. financial advancement), particularly pandemic-related challenges, such as In addition, in accordance with the M&E new COVID variants or other pandemic plan endorsed by the donors in June related challenges. At present, these risks A small hill top farm looks 2021, the GPS team will kick-start work seem to be manageable, but should the towards the snow capped mountains in Nepal on the program’s impact assessment, situation change, the World Bank will (bonga1965 / Shutterstock) including the overall framing of the inform the GPS donors as needed. Annual Report 2021/2022 15 Aerial view of shrimp farms in Phu Yen, Vietnam (Nguyen Quang Ngoc Tonkin / shutterstock) PILLAR ONE GLOBAL INFORMATION ON SUSTAINABILITY The year 2020 was defined by the pandemic,which underscores the close link between human and planetary health. An estimated 60 percent of all known human infectious diseases are zoonotic in nature: transferred from animals to humans. There is evidence to show that pathogens thrive where there are changes in the environment, such as deforestation, and when natural ecosystems are under stress from human activity and climate change. There is a growing understanding that to build back greener and ensure sustainable growth, countries must measure and value Natural Capital and Ecosystem Services, as a foundation from which to manage them better. The Dasgupta Review shows in a compelling way how our economies are embedded in Nature. The Review makes a strong case for fully assessing the impact of our interactions with nature and rebalancing our demand with nature’s capacity to supply. The Global Program on Sustainability (GPS) team contributed to the Dasgupta Review, shedding light on the impact of collapse in certain ecosystems on countries’ economies. This was part of the innovative model linking the economy and the environment developed by the Universities of Purdue and Minnesota (Box 1) for the report on The Economic Case for Nature. 17 Box 1. Contribution to The Economics Ecosystems underpin economic systems, providing intermediate and final of Biodiversity: goods, and regulation services (such as coastal protection, or erosion control). Dasgupta Review When the provision of these goods and services declines or collapses, there could be major impacts on economic outputs, particularly in countries heavily reliant on Ecosystem Services for income and employment. Figure B1: Change in Using a linked economy environment model (GTAP-InVEST) and as part of the 2030 Real Gross Domestic “Road to Kunming” work, the GPS contributed several insights to the Dasgupta Product (GDP) under select Ecosystem Collapse review, in particular assessing the potential combined economic impacts, over Scenarios compared with the course of a 10-year period (2021 to 2030), of collapses in three ecosystems: No-Tipping-Point Scenario, tropical forests, wild pollinators and marine fisheries. A collapse is defined as by Income Group a 90-percent reduction in the flow of Ecosystem Services. Collapses in these ecosystems result in direct impacts on the economic sectors dependent on them; as well as second-order effects along the supply chains and global trade flows, as economies try to adjust to the shocks (for example, intensifying pressure on land use to offset the productivity decline in the timber, agriculture, and fishery sectors). The result is a two percent decline in global 2030 GDP (compared to the no-collapse scenario), but with much larger impacts on poorer countries, including low-income countries (estimated to suffer a plunge of almost 10 percent); and lower-middle-income countries (almost eight percent). Pillar 1 of GPS provides data and the uptake of Natural Capital within analysis at the global level to decision-making. measure and value environmental sustainability. The Pillar has two main This chapter provides a summary of components. The first focuses on progress made during the reporting measuring sustainability through the period on the different strands of data production of cutting-edge data and and analysis work carried out under analytical products like the “Road Pillar 1, including activities already to Kunming” work (see below) and completed (such as Mobilizing Finance The Changing Wealth of Nations. The for Nature); and work still being second component, on mainstreaming completed, to be summarized in its final sustainability, uses tools and methods form as part of the next reporting cycle such as the data platform, guidance (such as The Changing Wealth of Nations). notes, or training sessions, to increase 18 Global Program on Sustainability Component 1: Measuring Sustainability ROAD TO KUNMING The fifteenth Conference of the the Framework through “The Road Parties (COP-15) to the Convention to Kunming: Devising the World on Biological Diversity in Kunming, Bank’s Contribution to Build a Post- China, offers a unique chance to reverse 2020 Global Biodiversity Framework” the global decline of biodiversity initiative. Now completed, the initiative and the loss of Ecosystem Services. contributed to the global policy dialogue At this landmark COP, governments while complementing the WBG’s rich will agree a new Global Biodiversity country-level operational engagement Framework to replace the Strategic on biodiversity and Ecosystem Services. Plan for Biodiversity 2011–2020 and knowledge products disseminated the Aichi Biodiversity Targets. GPS has (Box 2) under the Road to Kunming been supporting the development of workstream include the following: MOBILIZING PRIVATE FINANCE FOR NATURE This World Bank Group paper, released nature into private sector decisions, in September 2020, looks at the current recognizing the risks of diminishing state of play with regard to private biodiversity and the loss of Ecosystem finance in support of biodiversity and Services, while embracing opportunities to Ecosystem Services. The report argues conserve and harness them sustainably. that the financial sector has a critical These include environmental fiscal role to play in addressing the global reform, better data provision and nature crisis, and that governments and improved disclosure through the Task regulators hold the key to harnessing the Force on Nature-related Financial power of the financial sector to mobilize Disclosures, as well as establishment private finance at scale to protect nature. of a “Nature Action 100” initiative, and The report highlights a set of “Big 5” provision of catalytic capital. ideas for actions to better integrate THE ECONOMIC CASE FOR NATURE: A GLOBAL EARTH-ECONOMY MODEL TO ASSESS DEVELOPMENT POLICY PATHWAYS Economies are embedded in nature outcomes. The policies analyzed include and our ways to study the economy decoupling of agricultural support to should recognize this explicitly. Further farmers, implementation of national developing the approach used to and global forest carbon payment contribute to the Dasgupta Review (Box schemes, and investment in research 1), this World Bank report, published in and development for agriculture. The July 2021, presents a pioneering global report also evaluates the opportunity modeling framework that integrates costs of achieving the “30x30” goal economic and Ecosystem Services data, (30 percent of the planet protected by simulating the interaction between 2030)—one of the proposed goals of nature and the global economy to the draft Post-2020 Global Biodiversity 2030, and analyzing polices that can Framework—showing that it is within at the same time reduce ecosystem reach at a moderate economic cost. degradation and improve economic Annual Report 2021/2022 19 The launch of the reports included in the “Road to Kunming” Box 2. Outreach and series was accompanied by a comprehensive social media plan in disemination of Road collaboraton with several of our partners, such as the Convention on to Kunming reports Biological Diversity (CBD), International Union for Conservation of Nature and Natural Resources (IUCN), and Brookings. GPS supported Figure B2.1 (above): a detailed outreach and dissemination plan for all the reports. On the Report covers from the World Bank website, 14 new pages were created, providing features, Road to Kunming series videos, and infographics capturing the main messages of the report. In the first weeks of the launch, the four reports were downloaded Figure B.2.2 (below): twitter promotion for 20,000 times and there were 45,000 page views. A social media Unlocking Nature Smart strategy ensured that the report links were retweeted 130 times Development (left) and by our partners such as the CBD, WWF, and IUCN. For example, The Economic Case The Economic Case for Nature launch included a slideshow, and for Nature (right) a video on Youtube communities. There were nearly 950 ‘likes’ on the World Bank’s Instagram page with a slideshow highlighting the report’s key messages. Working with partners was key to a succesful launch. Several partners helped to spread the word through social media as well as by posting the links to the report, ensuring reach to key audiences. Visually appealing content in the form of videos and infographics helped to make the content more engaging. 20 Global Program on Sustainability UNLOCKING NATURE-SMART DEVELOPMENT: AN APPROACH PAPER ON BIODIVERSITY AND ECOSYSTEM SERVICES This World Bank Group approach a comprehensive menu of global paper, to be published in August response areas to guide governments 2021, outlines, for the benefit of policy in their efforts to integrate nature into makers, the development challenges development agendas and address the and opportunities associated with blue nature crisis. As nations formulate a set and green biodiversity and Ecosystem of new global biodiversity targets at a Services. Building on the analytical landmark CBD COP-15, the paper also insights and the country level work offers insights to guide the design and supported by WAVES and GPS, the implementation of the Post-2020 Global paper frames the rapid decline of Biodiversity Framework and inform the biodiversity and Ecosystem Services as a WBG’s ongoing support to this agenda. development issue, both from a risk and an opportunity perspective. It provides THE CHANGING WEALTH OF NATIONS 2021 Far Right: The Changing The Changing Wealth of Nations (CWON) Wealth of Nations 2021, to be released in the fall of 2021, 2021 report cover (World Bank, 2021) provides the most comprehensive and accurate database of wealth across a broad portfolio of assets (natural, human and produced capital) calculated for 146 countries for the years 1995 to 2018 in market exchange rates in accordance with rigorous international standards (System of National Accounts – SNA; and System of Environmental- Economic Accounting – SEEA). It also shows how wealth accounting can be applied to complex policy analysis to make more informed decisions while charting the development pathway for a country in uncertain times. The book and several background papers have already informed the dialogues with countries through the report preparation process. What’s new in the latest edition of CWON? EXPANDED COVERAGE OF The analysis finds that mangroves NATURAL CAPITAL and marine capture fisheries are an This report will expand the coverage of important part of total wealth for Natural Capital by including components some countries; and that blue Natural of blue Natural Capital, including marine Capital fell by half from 1995 to 2018, fisheries and mangroves, in the core wealth as the value of fisheries collapsed by 83 accounts for the first time. percent. Annual Report 2021/2022 21 This has important implications, USING WEALTH ACCOUNTS because many countries do not fully FOR POLICY  realize the potential contribution of CWON applies the lens of wealth to the fisheries to total wealth. analysis of asset portfolio management under risk and uncertainty, including CWON 2021 also advances the rigor of ‘green swan’ events (Bolton et al. asset valuation for forest Ecosystem 2020): these are extremely rare and Services, timber, agricultural land, and unexpected shocks (but with potentially minerals, resulting in improved estimates of extreme or wide-ranging impacts), countries’ Natural Capital. The CWON data linked to looming environmental provides the foundation for the GPS policy crises, such as climate change, and work (planned for 2022) on environmental biodiversity loss. They include virtually fiscal reform for improved management of unforeseen and contingent catastrophic fisheries and other natural resources. events, such as the pandemic, caused by zoonosis, which is often driven by USING PPP INSTEAD OF human encroachment in natural areas, MARKET EXCHANGE RATES  and which is causing a considerable For the first time, the report assesses the decline in human capital, especially in distribution of wealth across countries low-income countries (Box 3). using purchasing power parities (PPP) instead of market exchange rates. Box 3. Impact of Although the full, long-lasting effects Figure B3: Impact of COVID-19 on Human COVID-19 on Human of the pandemic are still unknown, Capital by region Capital by region the resulting economic downturn and 2018 (% of total) 2018 (% of total) associated unemployment and loss of earnings have already set back the long- term trajectory of poverty reduction, especially in low-income countries. When the pandemic’s downward impact on future wage growth is incorporated into the CWON estimation of human capital, low-income countries experience the largest negative impact, with a loss of 14 percent of total human capital in 2018. Source: World Bank staff calculations. Notes: The estimated effect of COVID-19 is only partial and conservative—here the analysis includes the effects of slower wage growth due to the economic shock. The full effects on human capital, including negative impacts on health and education, are not yet fully known, and are not included here. 22 Global Program on Sustainability ENVIRONMENTAL FISCAL REFORM The Analytical Service and Analytics of EFR Policy Reports followed by the program entitled “Environmental Fiscal Synthesis Report produced at the end of Reforms (EFR): Options, Impacts and the program. Depending on demand Implementation Pathways” was initiated from countries, WBG country teams and with GPS support, with a concept note international partners, the EFR Policy approved in June 2021. The analytical Reports will be either thematic (based program, jointly led by the environment and on multi-country experience) or country- macroeconomic teams at the World Bank, specific and will consist of one or all of will identify implementable options and the following three components: (i) EFR roadmaps for gradual environmental fiscal Options/Scoping Studies, (ii) EFR Impact reforms in the World Bank Environment, Assessments and (iii) Policy Guidance Natural Resources and Blue Economy Notes with Implementation Roadmap. Global Practice (ENB) business lines (Brown, The EFR Policy Reports will be clustered Green, and Blue) so as to deliver fiscal in six thematic areas: (i) air pollution, (ii) and economic dividends by investing in plastic pollution, (iii) fisheries, (iv) coastal Natural Capital to work for sustainable management, (v) land use and biodiversity, economic development. The aim here and (vi) circular economy. Climate change will be to address critical methodological will be a cross-cutting issue. Two EFR questions: (i) How to evaluate EFR options policy reports are under preparation in and identify the most promising fiscal Kazakhstan and Serbia respectively, with reform opportunities in a country context; a view to an integrated approach to air (ii) How to design roadmaps for incremental pollution and climate change (with support policy reforms that could be linked to from GPS under Pillar 2). Discussions Figure 1: Environmental Fiscal Reform and its WBG operations. The main deliverables are under way with country teams in potential double dividend of this program will be a rolling series Nigeria, Malaysia and Indonesia. Annual Report 2021/2022 23 Component 2: Mainstreaming Sustainability ECOSYSTEM SERVICES ASSESSMENT TOOLKIT (ESAT)  Under the World Bank Environmental use, and when to use them, depending and Social Framework (ESF), client on the needs of different World Bank countries apply Environmental and projects. GeoESF includes an automatic Social Standards (ESSs) to World Bank reporting feature to allow users to financed projects. These standards are easily download a report on the potential designed to avoid, minimize, reduce or impacts of a project on Ecosystem Services mitigate the adverse environmental and in a selected area. Such a report (Figure social risks and impacts of projects. 2) provides useful data and maps to help ESF specialists and client countries With GPS support, the World Bank in the preparation of environmental and developed an Ecosystem Services social instruments, such as Environmental Assessment Toolkit (ESAT), to help and Social Management Plans users better understand, visualize and (ESMPs) and an Environmental and Social report impacts of Bank-supported Management Framework (ESMF). GeoESF projects on Ecosystem Services. is available for internal World Bank Guidelines and a dedicated spatial data use and could potentially be released analysis tool, GeoESF, were developed. externally based on future demand. The guidelines include information for ESF specialists on what tools to Figure 2: Example images of GeoESF and its automatic reporting feature 24 Global Program on Sustainability GPS DATA PLATFORM  The GPS Knowledge and Data Platform is accounts compliant with the SEEA standard intended to be a one-stop shop for data and integration of ARIES in the UN Global and analysis tools produced with GPS Platform; and ii) production of global support. The platform will make various data on selected types of Ecosystem datasets produced under GPS more Services, which would strengthen accessible to policy makers and a general the wealth accounting in the future audience, including Wealth Accounting, editions of The Changing Wealth of Adjusted Net Savings, Hidden Dimensions Nations; and which could help start the of Poverty (HDD), and the Little Green country level policy dialogue and analysis Data Book, among others.  work supported by GPS under Pillar 2 of the program, pending compilation of Recognizing the potential for synergies national data. with related efforts (such as the ARtificial Intelligence for Environment & The GPS Data Platform will have the Sustainability – ARIES), the World Bank’s potential to host new data that will be GPS team has started consultations with produced directly by GPS; or to serve as a partners such as the United Nations gateway to other platforms and initiatives Statistical Division (UNSD) and the with which GPS collaborates (such as Basque Center for Climate Change the UN Global Platform). The GPS Data (BC3) for collaboration in the following Platform is currently being designed and areas: i) further development of the will become gradually available under the ARIES technology, particularly as a new GPS homepage on the web, which is way to rapidly develop Natural Capital expected to be launched in 2022. GREENING THE ECONOMY: COVID RECOVERY AND BEYOND The COVID pandemic is an The GPS team has started designing a unprecedented global blow to human modeling platform to assist countries in health and economic stability. The quantifying, under a single, internally recovery from the pandemic affords consistent framework, the income, unique opportunities to “rebuild employment, and environmental effects greener” and steer future development of alternative designs of stimulus policies in a nature-friendly direction. programs. A draft concept note was GPS is well-positioned to make an developed, informed by case studies using important contribution in that direction. Input-Output analysis in Fiji, Zambia, and In particular, GPS can provide data and Uganda. Using Input-Output and other insights to help rebuild greener and modeling techniques, the tool can enable more resilient economies as countries a rapid assessment of the trade-offs emerge from the crisis. GPS will host between economic and environmental the 5th WAVES Policy Forum where outcomes of any given sectoral the topic ‘Green Recovery and Natural composition of a recovery program (see Capital Approaches’ will be discussed. A Box 4 for a Latin America example); it can background paper is being prepared that also help evaluate the job and income makes a case for using Natural Capital multipliers of nature-friendly investment approaches to inform green recovery such as eco-tourism. A technical report policies, using country case studies that summarizing the findings of the analysis have been front-runners in this work. is planned to be completed in 2022. Annual Report 2021/2022 25 Box 4. Where to Invest $1 million in Several countries are developing stimulus packages to overcome the socioeconomic short-term recovery impacts of COVID. To build the foundation for a sustainable recovery, there is a without degrading need for an evidence-based framework to guide investment decisions to meet Natural Capital? the goals of sustainable development. A recent study was conducted with GPS cofinancing for the Latin American region, with the objective to identify sectors with a potential to maximize the number of jobs created per unit of investment, and at the same time steer economies toward an environmentally sustainable course A Natural Capital accounting and modeling framework was used to provide quantitative evidence for decision- making. The framework draws on economy-wide input-output analysis and uses publicly available databases. The results show the direct and indirect effects on jobs and the environment of investing $1 million in each sector of the economy (see Figure B.4.1 above, where seven bars in any color add up to 100%). The agricultural sector provides opportunities to create the most jobs, 2.7 jobs for every 10 of the jobs generated by the combined $7 million investment followed by manufacturing and services (1.7 jobs for every 10). The services sector shows relatively low impacts on the environment, while mining and energy production substantially increase emissions of CO2 and GHG. The aggregated results shown in the figure illustrate Figure B4: Economic how the trade-offs between job creation and environmental impacts can be and environmental understood in a more rigorous way. impacts of investment ECONOMIC AND ENVIRONMENTAL EFFECTS Number of jobs and environmental impacts per USD 1 million investment on each group of industries Percentage of total impacts per USD 1 million 40 investement on each group of industries 35 Jobs CO2 30 25 20 15 10 5 0 Agriculture Mining Energy Manufacturing Transport Financial Services Services 26 Global Program on Sustainability TRAINING ON LANDSCAPE APPROACHES AND ECOSYSTEM SERVICE MODELING Watershed or landscape-scale approaches currently designing a series of training to targeting investments have been sessions on watershed and landscape- recognized as a way of achieving a scale approaches and ecosystem service balance among multiple development modeling to target investments in objectives in several sectors, including infrastructure, agriculture, ecosystem infrastructure and agriculture. The conservation and restoration. With support scaled-up approach helps provide a from a team of expert consultants, this better understanding of trade-offs and virtual training (to be completed by 2022) complementarities across development will cover the conceptual framework for and natural resource management. landscape approaches and ecosystem service valuation, access to global data and Several tools like InVEST or ARIES for modeling resources, and guidance on how SEEA are currently available and can to use them for analyses at different scales provide information on the location and for assessing trade-offs. and magnitude of Ecosystem Services— including water flows, erosion and The training will leverage ongoing efforts sediment retention, water quality by country teams to develop landscape regulation, carbon retention, and and ecosystem service valuation pollination among others. At the same assessments, including recipients of GPS time, there are gaps in the capacity of technical assistance. These countries developing countries (including World could provide inputs to the design of Bank borrowers) to use such tools to the training and benefit from additional inform project design, particularly in the resources and guidance. The aim of prefeasibility, concept, and appraisal stages, this task is to build knowledge among where such analyses have the greatest technical specialists, government Evidence of coastal erosion potential to inform project design. agencies, and Bank staff on how to in a small fishing village apply Natural Capital approaches and on Vietnam’s south- central coast (Duc Huy Recognizing such critical gaps, GPS tools to incorporate landscape planning Nguyen / Shutterstock) in collaboration with PROGREEN is approaches into project development. Annual Report 2021/2022 27 Sunset over tea covered hills near Bwindi and Queen Elizabeth National Park in Uganda (Ashim D Silva / Shutterstock) PILLAR TWO COUNTRY IMPLEMENTATION Through the Core Implementing Country (CICs) window, the GPS/WAVES program delivers in-depth assistance over 2–3 years to developing countries to: a) acquire, maintain and update data and information on Natural Capital and the values of Ecosystem Services both in physical and monetary terms; and b) use such data in the design and implementation of development policies, programs and projects, including those cofinanced by the World Bank. This section of the report summarizes progress made in the CICs that had joined the WAVES Plus program in earlier years; as well as the approach being followed to select additional CICs to be supported by GPS. 29 COUNTRY IMPLEMENTATION MOROCCO Women working in The importance of the agricultural sector to the national economy, food security, and livelihood of the population is widely recognized in the macroeconomic policy of agricultural fields in the Dades Valley in Morocco Morocco, given that the sector accounts for 12–15 percent of the country’s GDP, 23 (Delbo Andrea / Shutterstock) percent of exports, and 40 percent of jobs nationwide, supporting the employment of 85 percent of the rural population and four million people in total (World Bank data, 2018). However, less well-recognized, or less integrated in national economic planning, is the fact that the primary production in this sector—cropping, animal husbandry, fishing, and fish farming—critically relies on renewable natural resources: notably land, freshwater, and wild fish stocks. ACCOUNTS DEVELOPED Agriculture and Fisheries accounts: Work supported under WAVES Plus focused on accounts for crop, livestock, and fish products. Physical flow accounts that document production, consumption and trade were summarized in Supply-Use Tables (SUTs) and covered both primary production and processing of raw products for all three sets of agricultural commodities. In the case of fish production, both capture fisheries and aquaculture were represented. Monetary flow accounts were also produced for primary and secondary crop products and primary fish products. The analysis included detailed recommendations for improving and expanding the initial set of accounts, in terms of flow accounts, disaggregation, and asset or stock accounts. 30 Global Program on Sustainability POLICY IMPACTS The monetary flow data from the Bank’s Agriculture and Food Global agriculture and fisheries accounts were Practice in their technical assistance used in a macroeconomic modeling support to the Green Generation Plan exercise using SDGSIM—a Computable 2030—the agriculture sector’s main General Equilibrium (CGE) model strategic plan. For fisheries accounts, designed for country-level analysis of the team in the Environment, Natural medium- and long-run development Resource, and Blue Economy Global policies with a focus on the SDG agenda. Practice will provide follow-up support, The model produces forward-looking under the GPS TTA window, to accounts estimates of changes in the policy and modeling work for fisheries. The variables of greatest relevance to setting focus will be to deliver key analytical strategic objectives. The modeling inputs to the development of the work under WAVES Plus represented Halieutis Plan 2030—the country’s a proof of concept, demonstrating main fisheries sector strategy, as part the policy relevance of the accounts. of the coordinated effort to support the Accounts and modeling for agriculture design of new interventions for the Blue are being taken forward by the World Economy (Box 5). Box 5. Morocco: The fisheries account developed under WAVES Plus provides the basis, Integrating NCA in with further expansions, to integrate the NCA work in the World Bank program on the Blue Economy. Morocco is pursuing a new model of the Blue Economy development which has shifted from a capital-intensive approach to one promoting growth in a sustainable way. For this purpose, the WB developed a platform to support the Blue Economy in the Middle East and North Africa (MNA Blue). In Morocco, the Bank embarked on a set of analytics and technical assistance to promote a sustainable Blue Economy. In line with these developments, the WB and the Ministry of Economy and Finance are discussing the scope of the proposed National Program for the Sustainable Development of Coastal Areas. The project would aim to support interinstitutional coordination to deliver integrated spatial solutions and would invest in improved fisheries and aquaculture management, new livelihood and economic opportunities for coastal areas, and build institutional, technical and human capacities in Blue Economy related sectors. INSTITUTIONALIZATION Morocco has taken an important first for agriculture and fisheries. The step in developing Natural Capital main statistical agency (HCP) has also accounts, setting the stage for their expressed an interest in undertaking future use. Stakeholders from key water accounts in the future. These ministries and agencies attended represent an indication of the several capacity-building programs, and government’s interest and intention to the NCA work is expected to continue institutionalize the NCA work. Annual Report 2021/2022 31 COUNTRY IMPLEMENTATION ZAMBIA In 2020 Zambia completed three Natural Capital accounts (Forest, Water and Land Aerial view of the accounts). These were released in the presence of three Ministers and the World Zambezi river (Anton Ivanov / Bank Country Manager for Zambia. During the launch event, the government’s Shutterstock) commitment to sustainable management of Natural Capital was reaffirmed: “We are releasing three accounts as an evidence of our commitment in developing Natural Capital accounting as a tool to guide investment for more diversified and sustainable growth that preserves and enhances the natural resource base that so many poor communities depend on.” Alexander Chiteme, former Minister for National Development Planning, Zambia. The accounts completed are being used to inform the Eighth National Development Plan; and funding for further work on accounts has been included in the 2021 National Budget. A modeling team will use the accounts accordingly to build scenarios that will inform policy decisions on the use of natural resources. 32 Global Program on Sustainability ACCOUNTS DEVELOPED Land Accounts: Water Accounts: The first edition of the Land Accounts sought to The accounts highlight the abstractions by sectors identify and understand land cover changes in and revenue generated over the 2010–2016 period. Zambia over the period 2010–2015. This is vital for Hydropower generation is the largest—albeit non- spatial planning at both national and provincial levels. consumptive—user of water, followed by agriculture Results indicate that there has been a reduction in and then households. Water withdrawn from rivers forest cover and wetlands in Zambia. Deforestation and aquifers by water utility companies account for a was driven by expansion of built and cropland areas, relatively minor share of withdrawals. while the reduction of wetlands could be attributed to the change in soil moisture due to variation in Policy and Modeling, Energy, Tourism, and rainfall. The findings have the potential to inform the Mining Accounts: government’s agenda on enhancing land productivity, For each of these accounts, the government formed agricultural expansion, and shed light on urban and Technical Working Groups. Data collection has rural development planning. commenced to create Tourism and Energy accounts. The environmental-economic model is progressing. As Forest Accounts: discussed in the section below on Targeted Technical The accounts show how the forest area is changing over Assistance, Zambia has been selected to receive time, identify the main activities contributing to this follow-on assistance from GPS under the TTA window. change, and value selected forest products to highlight Activities being supported include the finalization and their potential contribution to the Zambian economy. publication of the Tourism Account. POLICY IMPACTS The GPS/WAVES Technical Reports are being used to • Following the development of the first accounts inform all aspects of the Eighth National Development with support from WAVES, Zambia included in Plan. Other impacts include: the 2021 National Budget a budget line for Forest and Tourism Accounts. The purpose is to inform • The Forest Account Technical Report is feeding land use planning, in particular for regions where into the development of the Apiary National nature-based tourism is still not developed. Strategy (involving honey and wax) under the Ministry of Lands and Natural Resources; and INSTITUTIONALIZATION The case of Zambia shows the importance of having continuing the work and the definition of next steps. a coordinating ministry to champion the NCA In particular, the government decided to create agenda, including its integration in the workings of a budget line in the national budget for the NCA the government, creating momentum for expanding program, which will support the development of the scope of NCA data and analysis efforts. The Energy and Mining Accounts; and identified further Ministry of National Development Planning has priority areas for which further technical assistance played a coordinating role in the work supported from GPS has been sought. These include expansion by GPS/WAVES, ensuring full support from all of the of the work on Tourism Accounts; and development of government of Zambia, and facilitating consensus an environmental-economic model for Zambia to be building in the cabinet on the importance of used by the Ministry of Finance. Annual Report 2021/2022 33 COUNTRY IMPLEMENTATION UGANDA As the Government of Uganda moves toward its vision of resource-led industrialization, Agricultural terraces and it is developing a set of Natural Capital accounts for the country and integrating forest in the Ugandan hills (MehmetO / Shutterstock) wealth accounting into its regular macroeconomic data. In November 2019 the first two of these accounts were launched, on land and water respectively, jointly by the Uganda Bureau of Statistics (UBOS), Ministry of Water and Environment, and Ministry of Lands, Housing and Urban Development. The Wood Asset and Forest Resources Accounts was launched in November 2020. The government is expected to continue working on accounts, guided by the National Plan for Advancing Environmental Economic Accounting in Uganda launched by UBOS. Policy briefs were prepared to tease out the policy implications of land and forest accounts. A number of issue papers have been prepared to better disseminate the findings of the work. ACCOUNTS COMPLETED Land Accounts: The land accounts show land use and expansion of land used for subsistence cover associated with human activity such agriculture, while forest cover declined as agriculture, settlement, and industry— (both woodlands and natural forests). The alongside natural processes—from 1990 accounts were prepared at the national to 2015. The accounts found steady level, zonal level, and at the district level. 34 Global Program on Sustainability Wood Asset and Forest Toward Ecosystem Accounts: Resources Accounts: The report highlights a path toward This is the first comprehensive inventory ecosystem accounting that will of Uganda’s wood assets and forest encompass the vital contribution resources. It includes physical and of the various Ecosystem Services monetary asset accounts of wood and provided by forests, wetlands, and other other selected forestry resources (based ecosystems. The ecosystem accounts on the data available) from 1990 up to provide quantitative estimates of carbon 2015. The accounts show that Uganda storage, carbon sequestration, water could run out of forests outside of yield and sediment retention in the gazetted protected areas by 2025, if eight river basins. The report brings the current rate of depletion, driven by out the point that changes in all these population growth, urbanization and measures are linked to changes in land poor management of natural resources, cover, in particular, the loss of forests or is not held in check. Demand for wood their conversion to farmland. is projected to more than double between 2015 and 2040. POLICY ANALYSIS CONDUCTED Adjusted macroeconomic indicators sector, including its contribution to income were calculated using the World and employment. The report identified a Bank’s adjusted net national income number of challenges to the sustainability (ANNI) and the adjusted net savings of the sector, as well as possible policy (ANS), showing how Uganda was solutions and practical interventions. depleting Natural Capital assets. The report (2019) made a number of The program also supported a recommendations relevant to the Third statistical and economic analysis National Development Plan 2020/21– of Uganda’s tourism expenditure, 2024/25 (NDP III), including that and a motivational survey in adjusted macroeconomic indicators 2019 as tourism is one of the most should be compiled annually, based important economic sectors in the on locally-sourced data as far as country. Statistical analysis focused on possible, and used for monitoring the comparisons between 2012 and 2019 sustainability of economic growth. high season samples. The number of leisure tourists had increased from 21 The forest accounts showed that percent to 25 percent in 2019, forming Uganda had a deficit in sustainable the largest share of tourists. Analysis wood supply every year between 1990 based on pre-COVID numbers shows and 2015, with the exception of 2000. To that if every tourist stays one night assess future development, a scenario longer in Uganda or if the number of analysis was conducted, suggesting leisure tourists increases by 100,000, a strong likelihood that all the wood tourism exports and value added can supply outside protected areas may be increase by 15–20 percent. depleted by 2035. Under that scenario, additional harvest will then deplete the The information will be used in wood stock inside protected areas. To designing tourism policies for the look into possible actions to improve country, especially in view of ongoing the woodfuel market, an assessment of national planning for the development the woodfuel sector was carried out; of tourism when the pandemic crisis this showed the scale and value of that has passed. Annual Report 2021/2022 35 POLICY IMPACTS As a testimony to the project’s policy the achievement of agreed targets. The significance, the GPS/WAVES team following targets were proposed: was requested by the government to prepare an issue paper to inform • The annual growth rate of Adjusted the preparation of NDP III, which was Net National Income (ANNI) should finalized in 2020. The main objective be at least as high as that of Gross of the paper was to mainstream National Income (GNI), to ensure Natural Capital Accounting (NCA) into that growth in recorded national the development dialogue, starting income is not derived from the with NDP III at the national level, depletion of assets; and and proceeding to sectoral and local planning processes. Since then, the • The rate of Adjusted Net Savings government has requested continued (ANS) should be maintained at a support for NCA, focusing on further positive level and should increase work on ecosystem accounts, as well over time. as developing environmental-economic tools for policy analysis. The report • The government subsequently on adjusted macro-indicators stated decided to continue to calculate the that monitoring of sustainability of adjusted macro-indicators on its economic growth should be based on own to track progress. INSTITUTIONALIZATION As a result of the policy work summarized Ministry of Finance. Uganda is a core above, NDP III included NCA as one participating member of the Africa NCA of the strategies to guide investment, Community of Practice (CoP) with a focal development, and management of point representative from the Ministry natural resources. In the next five years, of Environment. Uganda shared its NCA the focus will be on increasing capacity journey and experience with other African for both individuals and institutions on countries in a webinar entitled Uganda: NCA (especially valuation). In addition, Building a Comprehensive Landscape for publication of adjusted macro-indicators NCA and Policy Application. is now institutionalized within the 36 Global Program on Sustainability COUNTRY IMPLEMENTATION EGYPT View over Cairo (Leonid In 2020 Egypt completed the activities envisaged under the CIC support from the program, as discussed below. Andronov / Shutterstock) ACCOUNTS DEVELOPED Air emissions accounts: Air pollution is one of the most urgent problems facing the government and is one of the top priorities in Egypt’s “Vision 2030” Strategy.2 The cost of environmental degradation in Egypt from air and water pollution alone was estimated to be equivalent to 2.5 percent of GDP in 2016/17, with air pollution representing 54 percent of the total cost. Pilot air emissions accounts (AEAs) were developed for Egypt to provide an integrated assessment of Greenhouse Gas (GHG) emissions and air pollutants— typically compiled in separate databases. Data from Egypt’s IPCC Biennial Update Report were linked with data from the Egyptian Environmental Affairs Agency (EEAA),3 and the Central Agency for Public Mobilization and Statistics (CAPMAS, the national statistical agency) to create a series of synthesized AEAs. 2 Ministry of Environment, Egyptian Environmental Affairs Agency. 2018. Biennial Update Report (BUR), Egypt, Fiscal Year 2015/16. 3 EEAA. Emission Inventory for Air Criteria Pollutants & Loads. Fiscal Year 2017/18. Annual Report 2021/2022 37 A factory on the banks of the Nile near Cairo (Liz Miller / Shutterstock) Results reveal that the manufacturing in waste management and improved and transport sectors contribute private-sector contracting (that is, significantly to particulate matter (fine public–private partnerships), as well as dust) while the manufacturing, and proposing a new waste categorization the electricity and transport sectors method to be used by the waste contribute the most to CO2.4 Agriculture regulatory authority. contributes to nearly 38 percent of all methane emissions. Manufacturing and Waste accounts for the Governorates agriculture together represent nearly of Port Said and the Red Sea one-third of gross value added in Egypt. Pilot waste accounts were developed for the governorates of Port Said and the Policy impacts and institutionalization Red Sea. Waste accounts show masonry In February 2021 a capacity building waste to be the top contributor to total workshop was held with all stakeholders— waste volume in Red Sea Governorate including CAPMAS, EEAA, the Ministry of (because of the construction boom Planning, and Ministry of International in coastal tourism development), Cooperation—to present training on how whereas mixed waste (residential/ the accounts were developed and their commercial, agriculture and animal policy applications. The AEAs will also wastes) is the largest waste fraction in form the basis of ongoing work with the Governorate of Port Said. Port Said the government of Egypt to create an also exports up to 20 percent of waste integrated air emissions database under created from agricultural production to the World Bank’s Greater Cairo Air other governorates for use as animal Pollution and Climate Change Project. fodder and fertilizer. Recyclables such as metals, plastics, paper and cardboard Waste Accounts and glass account for approximately Solid waste burning is currently 9–12 percent of total waste flows in responsible for up to one-third of both governorates (representing about Greater Cairo’s pollution from fine 40,000 tons annually). This information particulate matter, a pollutant with is important for understanding the directly associated with respiratory economic feasibility of building illness and premature mortality. secondary markets for recyclables Egypt joined the WAVES Partnership and tracking waste volumes for which in 2019 to develop waste accounts to private operators are contractually paid. tackle systematic information issues 4 Ministry of Planning and Economic Development. 2016. Egypt’s Vision 2030. World Bank. 2019. Arab Republic of Egypt: Cost of Environmental Degradation – Air and Water Pollution, Washington, DC. USA. 38 Global Program on Sustainability POLICY IMPACTS The information generated by the pressure and can help authorities set program has proven instrumental in service fees, negotiate waste contracts designing facilities for waste sorting with waste collection operators, and and recycling, because it can confirm understand the contribution of the whether or not minimum thresholds of waste sector to the economy. The annual waste flows have been met at waste accounting framework is being the locations designated for the siting considered as part of the support to of the sorting facilities: such that these the Waste Management Regulatory would become economical. The amount Authority (WMRA) through the World of waste in aggregate—or the quantities Bank’s Greater Cairo Air Pollution and of specific waste materials—are also Climate Change Project. important indicators of environmental INSTITUTIONALIZATION A capacity-building workshop was methods to track waste. The waste organized with EEAA and CAPMAS. categorization methodology is also part The WMRA is also considering the of the management information system waste accounting framework as a support in the Greater Cairo World standardized approach, because Bank project mentioned above. governorates currently use different SELECTING NEW CIC COUNTRIES A Call for Proposals (CfP) for Core In addition, preliminary proposals Implementing Countries (CICs) under are being reviewed for the following GPS was prepared in 2021, and the countries—Ghana, Honduras, Indonesia, process is ongoing to select up to six Nepal, Nigeria, the Philippines, Tunisia, CICs, as envisaged under the latest and Turkey—with a view to selection of workplan. A proposal for Ethiopia has up to five for funding of up to $1 million already been evaluated for support in each. As indicated in the workplan, the the amount of $1 million, which has complete proposals will be assessed been recommended for funding. The using criteria such as: evidence of work, to be financed by resources from country commitment; opportunities both the GPS and WAVES Plus Trust to leverage GPS results to inform Funds, includes building of accounts downstream financing from the World (water and Ecosystem Services); and use Bank or other development partners; of such information in the development demonstration or replication potential; of land use decision-making tools, and a country’s significance for the global macroeconomic modeling, and the commons (climate change, biodiversity). design of PES schemes (payment for The selection process is expected to be Ecosystem Services). completed in the fall of 2021. Annual Report 2021/2022 39 UPDATE ON TARGETED TECHNICAL ASSISTANCE The Targeted Technical Assistance (TTA) is a Cambodia, Box 6). The TTA work completed modality of engagement that complements during this reporting period has resulted in the support provided through the Core the provision of evidence and insights on Implementing Countries (CICs) window, Natural Capital and Ecosystem Services that the original channel of assistance under has informed the design of 10 World Bank the WAVES program. TTAs are smaller operations, worth $970 million. grants intended to provide “just-in-time” support for specific investment or policy In other cases, TTAs can induce questions that can be answered through governments to continue the work, such work on Natural Capital or Ecosystem that they request follow-on TTA support (as Services. is being considered by countries such as Lao PDR, or Rwanda), or express interest in In FY20, eight TTA countries completed a more long-term development of accounts, their activities: Cambodia, Kyrgyz Republic, which can be supported through follow-on Lao People’s Democratic Republic, CIC support. Madagascar, Myanmar, Nepal, Uzbekistan, Vietnam. A regional activity related to the TTAs can also be a focused way to extend West Africa Coastal Areas Management broader work previously supported by the (WACA) program showed significant program’s CIC window. In 2019 Indonesia progress (Table 2.). The two main areas had concluded the WAVES-supported CIC of operational work that TTAs inform work that yielded accounts for land cover are forests and landscape management and land extent, ecosystem accounts (Cambodia, Kyrgyz Republic, Lao PDR, for peatlands, and data and modeling Madagascar, Nepal, Uzbekistan), and support for the country’s Low-Carbon Ecosystem Services in coastal areas Development Initiative (LCDI). Building on (Myanmar, Vietnam, and the WACA these results, GPS has supported deeper- program). dive policy-oriented work in two strategic areas, namely valuation and management TTAs are proving to be a valuable of coastal resources (including mangroves); instrument of engagement: by being closely and, in close collaboration with the linked to the Bank country programs, they Peatland Restoration Agency (BRG), can provide NCA insights to the design and economic analysis of policy options for implementation of World Bank operations. improved peatlands conservation and This is key, as it can showcase in a tangible restoration. The technical work was way the practical usefulness of NCA work, completed in June 2021, with dissemination thereby feeding directly into the design activities scheduled for the fall of 2021. of World Bank projects (as in the case of 40 Global Program on Sustainability Box 6. Cambodia: Informing a World Bank project Cambodia’s rich biodiversity provides critical Ecosystem Services—such as water on Sustainable purification, food provisioning, erosion control and climate regulation—that Landscape and underpin the country’s economy. Key economic sectors such as agriculture and Ecotourism via tourism are dependent on these Ecosystem Services. In addition, the country’s GPS TTA support forests help to sustain the hydropower on which the garment industry and other economic sectors depend. The GPS-supported report on ‘Valuing Ecosystem Services Provided by Forests in Pursat Basin’ provides an analysis and methodology to estimate the monetary value of forest resources in the Pursat River Basin in the Cardamom Mountains of western Cambodia. The analysis quantified monetary benefits of forest Ecosystem Services for water, agriculture and hydropower, ecotourism and carbon storage. This analysis helped inform the $51 million Sustainable Landscape and Ecotourism Project to improve protected areas management, and to promote ecotourism opportunities and non-timber forest product value chains in the Cardamom Mountains-Tonle Sap landscape. Key results include: • Economic benefits from intact forests are five times higher than the gains from cutting them down for small-scale agriculture and charcoal production; • Maintenance costs of forests are one-twentieth of the benefits provided by forests to other economic sectors; and • Opportunities for receiving revenues from private and international sources for forest maintenance could mean zero costs for the government in the long run. This study gives a glimpse of what Cambodia’s forests are worth in monetary terms when left intact. By understanding this value, there is a strong incentive to invest resources into the sustainable management of these forest ecosystems. Their maintenance will not only help to further strengthen the Cambodian economy but will also assist in the country’s economic recovery from COVID. This in turn will help to safeguard the country’s Natural Capital and ensure a sustainable and prosperous future for Cambodia and its people. Dense tropical forest in eastern Cambodia (Ralf Siemieniec / Shutterstock) Annual Report 2021/2022 41 Table 2. Update on TTA tasks approved in FY19 and completed in FY20 Country Purpose of the Potential Impact World Bank Progress Accounts and other on Policy project informed/ data related work influenced Cambodia Strengthen the business Protected area Cambodia The technical report of the case for enhancing the financing. Sustainable project can be accessed use and management Landscape and here. of natural resources Designing payments Ecotourism Project in the Cardamom for environmental with GEF additional A blog was developed to Mountains in services. financing adding up disseminate the report: it Cambodia. to $54 million. can be accessed here. Strengthen the capacity of the government to use ecosystem accounting approaches in landscape planning and decision-making. Uzbekistan Valuation of soil Results informed North Aral Sea A report has been prepared retention Ecosystem ongoing legal and project CAMP4ASB. that models benefits of Services (and regulatory reform rehabilitation scenarios, corresponding in Uzbekistan Preparation of revealing that erosion could mechanisms that (Environmental the Uzbekistan be reduced to around one prevent air pollution Code, Forest Resilient Landscapes quarter through planting from dust) provided Strategy, GHG Restoration project of shrubs and trees, with by plantation of regulation) (P174135). potentially large effects of saxaul forest in providing annual and perennial grasses Aral Sea area. Such quantitative Planning of the on reducing wind erosion. This benefits would be measurements Resilience Deep study is used as justification included in ROAM and thresholds Dive paper for for a resilient landscape analysis (Restoration for financing the FY22 Country restoration project by proving Opportunities afforestation activity Environmental that it is economically viable Assessment in the country. Analysis (CEA) in (Benefit–Cost Ratio is on Methodology)in Uzbekistan. average 1.49 for the present pursuit of the goals value of benefits and costs of of Astana Resolution the different interventions). on restoration of Valuation of Ecosystem deforested and Services, including local and degraded lands. global benefits, helped to mainstream climate into a broader development context. The Value of Landscape Restoration in Uzbekistan to Reduce Sand and Dust Storms from the Aral Seabed provides an economic analysis of the benefits of afforestation of the former Aral Seabed. 42 Global Program on Sustainability Country Purpose of the Potential Impact World Bank Progress Accounts and other on Policy project informed/ data related work influenced Lao PDR Estimate Natural Input to National The GPS work has A multisectoral technical Capital Value (NCV) Green Growth informed the Lao working group comprising at the national level. Strategy. Landscapes and government sectoral Livelihoods (LLL) representatives has been Produce the first Input to design project (P170559) established, led by the Lao Landscape Valuation new investment ($57.3 million). Statistics Bureau. of selected assets project financing in a selected for Landscapes and The project has The final report was landscape, and Livelihoods. a programmatic published in June 2020. estimate the approach to landscape economic value of development and these assets and a dedicated project Ecosystem Services activity on Natural in Khammouane Capital accounting led Province. by the Lao Statistics Bureau (LSB), which chairs the NC working group established by the TTA. West Africa Valuation of The analysis -he work supports Analytical work for the Coastal Areas externalities related will inform the the knowledge cost of environmental Management to pollution of development of pillar of WACA and degradation in coastal Program air, inland and a Multi-Sector the WACA scale-up cities in Nigeria (WACA) coastal water, and Investment Plan in platform, which was finalized and deforestation (for Nigeria and Ghana, aims to facilitate published. Link: https:// the analytical allowing countries access to knowledge openknowledge. work on the cost to design policies and accelerate worldbank.org/ of environmental and investments access to finance for handle/10986/34758 degradation in that take the value coastal resilience. coastal cities in of Ecosystem Role of mangroves in Nigeria). Services and risk The results of protection against coastal mitigation into the studies are flooding has started in Valuation of account. informing Bank Ghana and Guinea. Two Ecosystem Services operations, including coastal flood hotspots (particularly the role The analytical the Guinea Natural were selected per country of mangroves in work supports the Resources, Mining and agreed by the reducing the risk of engagement of and Environment governments. Currently, coastal flooding in client countries, Project (P168613) hydrodynamic modeling Ghana and Guinea). academic and the West of passage of surges is institutions, regional Africa Coastal being developed by a firm agencies, and Areas Resilience (Deltares). partners in the Investment Project II economics of coastal (P175525). Following publication environmental of the initial results for degradation. Nigeria (March 2019); the Bank team is using the findings to inform dialogue with the government to further expand work on the economic implication of coastal degradation. Table continued on next page Annual Report 2021/2022 43 Table 2. Continued Country Purpose of the Potential Impact World Bank Progress Accounts and other on Policy project informed/ data related work influenced Madagascar Develop a platform Ensure policies The $108 million The team has been for assessing/ related to land use Sustainable working on two parallel, modeling selected planning are more agriculture related models: a) Ecosystem evidence-based landscape a regional model Services (e.g., food or invest in areas management (LANDSIM-R) that models provisioning, erosion where impacts project (PADAP), the hydrology and control, carbon on investments which consists of an sedimentation dynamics storage), as a key are likely to integrated approach of a watershed under input to reorienting be maximized, for managing different scenarios; land use and such as national five landscapes in b) a national model land use change reforestation policy. Madagascar. (LANDSIM-P) that models processes. household dynamics, land The $50 million degradation and resulting REDD+ Emissions land use change under Reduction Program different scenarios. in the North Eastern part of the country. LANDSIM-R has been fully delivered to the client for its use under the PADAP project. The government has taken the decision that LANDSIM-R will be used as a tool for informing the ongoing design of the Landscape Management Plans to be developed in the five PADAP landscapes. LANDSIM-P has been almost finalized and it will be tested in two real case studies dealing with agricultural value chains and reducing emissions from deforestation. Vietnam Valuation of coastal Inform ongoing Forest Sector The report was finalized assets to determine discussions with Modernization and and reviewed internally in potential for revenue government on ways Coastal Resilience the Bank. generation and to enhance coastal Enhancement project assess contribution resilience and how to ($150 million) to The guidance material is to wealth. finance investments. improve coastal informing the discussions forest management. and preparations that are Informing the unfolding on the decree for drafting of the The valuation valuation of natural assets decree associated methodology that and Ecosystem Services. with the revised Law has been developed on Environmental will be made Protection that is available to the focused on valuation country team that of natural assets and oversees valuation of Ecosystem Services. the coastal assets. 44 Global Program on Sustainability Country Purpose of the Potential Impact World Bank Progress Accounts and other on Policy project informed/ data related work influenced Kyrgyz Develop forest Accounts will Third Phase of Forest and tourism accounts Republic accounts as identify indicators the Central Asia were discussed at virtual mandated in the for National Forest Regional Links workshops organized with recently-approved Inventory (NFI) Program (CARs-3). the National Statistics Forest Development update and the Committee and State Concept to 2040. Forest Management Agency for Environmental Information System Protection and Forestry. Develop (FMIS) under methodology for the Integrated The reports provide clear tourism accounts for Forest Ecosystem recommendations for Issyk Kul oblast (80 Management improving data collection percent of tourism), Project.  by the National Statistics and apply it to a Committee, State Agency World Bank lending of Environmental program. Protection and Forestry, and Department of Tourism to better account for the respective sector contribution to the economy and inform appropriate decision-making processes. The Toursim accounts report can be accessed here. The Forest accounts report can be accessed here. Myanmar Measurement Make the case Myanmar Coastal The report on Investment and valuation of for targeted and Delta Resilience Analysis for Mangroves in Ecosystem Services investments in Program. the Ayeyarwady Region from mangroves restoration of can be accessed here. and assessment mangrove and Strategic Country of benefits from coastal forests as Diagnostic for Two Insight Briefs for key mangroves part of an integrated Myanmar. value mangrove value chains: conservation to coastal resilience inform coastal program. Myanmar Forest Insight Brief: Mangrove planning and Restoration, Aquaculture-Polyculture effectiveness of Development and Products in the Ayeyarwady community forest Investment Project. Region initiatives. Insight Brief Nipa Draw up a roadmap Palm Products in the for further Ayeyarwady Region development of NCA in Myanmar. Annual Report 2021/2022 45 NEW TARGETED TECHNICAL ASSISTANCE GRANTS A call for Proposals (CfP) for additional Proposals were systematically reviewed by TTA support was issued in the fall of the GPS Management Team against several 2020, focusing on four themes: Policy criteria, including technical soundness, applications of Natural Capital Accounting policy relevance, and likelihood of impacts and Valuation of Ecosystem Services of the work on downstream financing. (NCAVES); Greening of COVID Recovery Based on the evaluation, 15 proposals programs; Environmental Fiscal Reform; were approved (Figure 3) and commenced and support to National Biodiversity their activities toward the end of FY21. Strategies and Action Plans (NBSAPs). Figure 3. Summary data Two windows were established: As seen in Figure 3, the bulk of the on approved TTA Grants resources is allocated to MSP grants • Just-in-time grants (JIT): These (75%, across 6 grants). In terms of The letters in the table refer to the contributions that each task grants are aimed at providing inputs regional distribution, sub-Saharan will make to the achievement in an agile way to operational work, Africa receives the largest portion of of the following GPS Impact indicators: and particularly to Development the grant resources (43%), followed by A: Compiling publicly accessible Policy Operations (DPOs). Funding is Eastern Europe and Central Asia (20%), data on Natural Capital and in the range of $50,000 to $75,000, and East Asia and Pacific (15%). The Ecosystem Services. to be disbursed indicatively over a two topics addressed by the majority of B: Use data on Natural Capital and Ecosystem Services in the period of 6 to 12 months. the proposals were Policy applications design and implementation of of NCA/VES, and Greening of COVID development policies, programs • Medium-size grants (MSP): These Recovery programs. A large share of and projects, including those cofinanced by the World Bank. grants (for medium-sized projects) TTA is expected to inform the design C. Policy documents (at the provide more substantial support for or implementation of development national or subnational level), in-depth analytical work. Funding will policies, programs and projects. such as development plans, sectoral policies and strategies, be up to US250,000, and disbursed or bills, informed by GPS- indicatively over a period of 18 months. supported activities. (A) GRANT AMOUNT DISTRIBUTION BY (B) GRANT AMOUNT DISTRIBUTION BY REGION MODALITY OF SUPPORT TTA-JIT 25% TTA-MSP EAP LAC 75% AFR ECA MNA SAR (C) DISTRIBUTION OF CONTRIBUTIONS (D) DISTRIBUTION OF TOPICS ADDRESSED TO IMPACT INDICATORS A. Compiling data B. Programs & projects Greening COVID C. Policy recovery programs NBSAPs documents NCA/VES policy applications Environmental Fiscal Reform 46 Global Program on Sustainability Table 3: New TTA tasks approved in FY21 Country Activity Expected Impacts (groups A, B, & C defined at foot of table) Bolivia Green Recovery in the B: The study will develop estimates of the value of Chiquitania environmental services that will be used to: (i) support stakeholder consultations and design of the World Bank project Green Recovery in the Chiquitania project; and (ii) inform the economic and financial assessment of the proposed operation. Cambodia Enhancing Natural Resources To be confirmed Management in Cambodia Chad Valuing the cost of environmental A: The grant will help fill key gaps in economic degradation in Chad valuation, to be included in the forthcoming NBSAP. C: The grant will inform (1) Country Partnership Framework; (2) National Development Plan 2022–2026; and (3) Policy recommendations derived from the Country Economic Analysis. Ghana Vulnerability Assessment— B: The data will be used for Ghana Country Climate impacts of climate change on and Development Report (CCDR) currently under labor productivity preparation. Kazakhstan Support in financing and B: The data will be used to inform World Bank project delivering the circular economy Resilient and Sustainable Economy Recovery. in Almaty Kyrgyz Republic Kyrgyz Republic: Policy B: The data will inform World Bank project Integrated Applications of NCA/VES Forest Ecosystem Management Project as well as the new investment operation that will support landscape restoration practices by rural communities and promote collaboration by Central Asia countries on transboundary landscape restoration. Lao PDR Landscape Valuation for Decision A: The grant will support landscape valuation. Support in Lao PDR B: The data will inform World Bank’s Lao Landscapes and Livelihoods project. C: The grant will inform REDD+ Emissions Reduction Purchase Agreement (ERPA). Mexico Economic Valuation of A: The studies will estimate physical and monetary Ecosystem Services (VES) valuation of prioritized Ecosystem Services building to Strengthen Integrated upon data collected by the National Institute of Ecology Landscape Management in and Climate Change. Selected Watersheds in Mexico B: Analytical products financed by the Grant will inform the World Bank GEF-7 project Connecting Watershed Health with Sustainable Livestock and Agroforestry Production. C: Both VES studies will inform an Integrated Watershed Action Plan on the physical and monetary valuation of the prioritized Ecosystem Services. Table continued on next page Annual Report 2021/2022 47 Table 3. Continued Country Activity Expected Impacts (groups A, B, & C defined at foot of table) Morocco Toward sustainable A: The grant will support physical and monetary growth in the Moroccan fisheries accounts for fish stocks. sector B: The data will inform World Bank’s Sustainable Development of Coastal Areas Project. C: The grant will inform the new fisheries sector policy, Halieutis Plan 2030. Nigeria Natural Capital Accounting C: The grant will inform policy dialogue for further Roadmap for Nigeria development of NCA in Nigeria and lending related to air pollution management, coastal degradation and land degradation. Pakistan Natural Capital Accounting A: The study will compile data on Natural Capital/ of Protected Areas in Pakistan Ecosystem Services. B: The data will inform National Climate Change Policy C: The grant will contribute to updating and implementing Pakistan’s NBSAPs covering terrestrial and marine biodiversity. Rwanda Natural Capital Accounting A: The grant will support the development of Rwanda’s and Valuation of Ecosystem green GDP, which will be publicly accessible. Services to Inform Decision- Making in Rwanda B: Data on Natural Capital and Ecosystem Services will be used in the design and implementation of the Volcanoes Community Resilience Project. Uganda Advancing the Uganda NCA A: Physical and monetary ecosystem accounts will be program  developed. B: The data will inform Uganda Natural Capital, Environment and Climate Change Advisory Support Program; Investing in Forests and Protected Areas for Climate-Smart Development. Ukraine Ukraine: Forest Sector Fiscal C: The grant will inform: (1) the State Forest Agency Policy & Options for Reform reform; and (2) the National Forest Strategy. Zambia Technical assistance and capacity A: Tourism accounts will be developed. building for institutionalizing and mainstreaming the B: The data will inform World Bank project preparation and implementation Transforming Landscapes for Resilience and of Natural Capital Accounts for Development in Zambia. policy application C: The grant will inform the Eighth National Development Plan. The letters in the table refer to the contributions that each task will make to the achievement of the following GPS Impact indicators: A: Compiling publicly accessible data on Natural Capital and Ecosystem Services. B: Use data on Natural Capital and Ecosystem Services in the design and implementation of development policies, programs and projects, including those cofinanced by the World Bank. C. Policy documents (at the national or subnational level), such as development plans, sectoral policies and strategies, or bills, informed by GPS-supported activities. 48 Global Program on Sustainability AFRICA COMMUNITY OF PRACTICE ON NATURAL CAPITAL ACCOUNTING On November 21, 2019, representatives attending unanimously expressed a need from 18 African countries met in Kampala, for a regional learning and knowledge Uganda for the first Africa Forum on platform. Representatives from six African Natural Capital Accounting, to create governments volunteered to form an a new Community of Practice (CoP) on Interim Working Group together with the Natural Capital Accounting (NCA) in supporting institutions, to start up the Africa. The day-long forum was co-organized CoP (Box 7). The Interim Working Group by the World Bank through its Global developed and agreed on a governance Program on Sustainability (GPS), the structure, and a plan for activities, which Gaborone Declaration for Sustainability include starting working groups on specific Figure B7: Distribution in Africa (GDSA) and the United Nations topics of country interest, webinars, of Africa Regional Community of Statistics Division (UNSD), and hosted by trainings, and knowledge exchanges Practice members the Government of Uganda. The countries between countries. Box 7. Africa Regional Community of Practice at a glance • 483 people from 48 countries • 11 supporting organizations • 11 webinars • 770 participants International Partners: The World Bank, UN Statistical Division, African Union Commission, African Development Bank, Capitals Coalition, Conservation International, European Commission, The Gaborone Declaration for Sustainability in Africa, Green Growth Knowledge Partnership, UNECA and UNEP . Annual Report 2021/2022 49 The goal of the CoP is to build capacity Africa (UNECA). The seven countries that and momentum in Africa to mainstream represents the regions are: Botswana and Natural Capital Accounting into policy and South Africa (representing the Southern statistical production, through developing a Africa region), Kenya and Uganda (East community of practice for NCA. The work Africa region), Morocco (North Africa will draw on the experience of WAVES and region), Rwanda (Central Africa region), WAVES Plus, as well as the UNSD, GDSA and Senegal (West Africa region). Secretariat, and other organizations. Webinars The expected intermediate outcomes The CoP holds a series of webinars to are as follows: showcase experiences of different countries in their NCA journeys. In FY20 and FY21, i. Increased cooperation and support 11 webinars were held ranging from: “ between countries on using NCA; Ocean Accounting – Novel approaches to Ocean Governance”, “Combining Forces on ii. Strengthened capacity of Natural Capital: Working with the Private governments to use NCA for Sector” to “The Use of Natural Capital decision-making; and Accounts in Policy Scenario Analysis” among others. See more webinars here. iii. Strengthened technical capacity on development and use of NCA in the Training and capacity building region. CoP members joined two e-learning courses on environmental statistics held The CoP has been very active and has by UN-SIAP (Statistical Institute for Asia already taken strides toward all three and the Pacific, part of the capacity building of the expected outcomes. The CoP arm of the United Nations Economic and marked its first complete year in July Social Commission for Asia and the Pacific: 2021. Some highlights are as follows: ESCAP): “Compiling Climate Change Indicators: an Accounting Approach” and Governance “Disaster-Related Statistics Framework”. A Steering Committee (SC) was formed as Members were also invited to the UNECA the main governance body of the Africa training on Macroeconomic Frameworks Natural Capital Accounting Community of for an Inclusive Green Economy in Africa. Practice (NCA-CoP) to provide leadership and steer development of its work An annual needs assessment survey plan. The SC is made up of key partner was conducted to identify the different institutions and a selection of countries individual and country needs regarding that represent regions of the African account development priorities, trainings, continent. The six institutions that and other types of support requested. In represent the partner institutions in the FY22, the CoP will focus on the training SC are: the World Bank, African Union needs identified and aim to enhance Commission (AUC), African Development capacity for the CoP members. Bank (ADB), Gaborone Declaration for Sustainability in Africa (GDSA), the United A communications strategy was developed Nations Statistics Division (UNSD) and in FY21 and is now being implemented. United Nations Economic Commission for 50 Global Program on Sustainability Working Groups NCA CoP Telegram group Operationalization of NCA-CoP Working The NCA-CoP WhatsApp group Groups (WGs) took place during FY21. The vastly exceeded the number of group four working groups are: Linking policy to members allowed. A new Telegram NCA, Ocean Accounting, Business Working group was created to accommodate Group and Sustainable Finance and NCA, the growing number of CoP members of which Ocean Accounting WG was and enhance communication. The already active in FY21. NCA-CoP Telegram group has been an effective channel for members to share Membership upcoming events, training, reports The CoP membership continues to and latest NCA updates from different grow and currently stands at 48 African institutions and around the world. Countries and 483 individual members as of September 2021. GLOBAL OUTREACH: POLICY FORUM ON NATURAL CAPITAL ACCOUNTING FOR BETTER DECISION MAKING The GPS continues the WAVES tradition for policy development and better Presentations at the 5th NCA Forum: of global engagement and dialogue on decision making. Due to the COVID-19 NCA through Policy Forum on Natural pandemic, there was no forum in 2020. Left: The Economics of Capital Accounting for Better Decision The Fifth Policy Forum on Natural Capital Natural Capital in East Making. The overall aim of the Forum Accounting for Better Decision Making Africa Program, funded by the United States is to share, explore and synthesize the – Greening the Recovery took place in Agency for International experiences of countries that have been September 2021. In June 2021, an expert Development (USAID) producing and using Natural Capital workshop was held to finalize the scope accounting (NCA), with the objective of the forum and discuss the technical Right: Lessons from Ethiopia on nature-based solutions of providing guidance for countries on material to presented at the meeting. and Green Legacy Initiative how to improve the use of accounting Annual Report 2021/2022 51 Wind power plant (Bos11 / Shutterstock) PILLAR THREE SUSTAINABLE FINANCE This pillar aims to develop data, research, diagnostics, and technical assistance around Environmental, Social and Governance (ESG) data, with a focus on nature, and integrate such information into investment decision-making, financial regulation, and risk assessment. In 2020 demand continued to grow for data that can help financial market actors contribute to achieving the Sustainable Development Goals, the Paris Agreement goals, and the goals that are expected to be set by the Post-2020 Global Biodiversity Framework. The Sovereign ESG Data Portal, which launched in late 2019, provides key information on country-level ESG criteria, and has been widely used by investors in portfolio analysis and has even informed the design of indexes. Pillar 3 delivered a research agenda on topics ranging from greening financial systems, to Sovereign ESG, and finance for nature. The team contributed to a nature-related risk assessment in Brazil and began one for Malaysia. The Pillar 3 team provided technical assistance to the government of Thailand on integrating ESG into the government pension fund and to the government of Colombia on greening its financial sector. 53 Data: Improved Sustainability Information for Financial Markets The World Bank Sovereign ESG Portal framework through an Application (Box 9) includes indicators and resources Programing Interface (API) software; for sovereign-level ESG analysis. The Sovereign ESG Data Portal has had more • A global ESG index provider uses the than 19,210 unique visitors as of June 30, Sovereign ESG Data Framework in its 2021. Of those, 2,439 were return visitors. ‘ESG scorecard for Emerging Markets Underlying the information provided on (EM) sovereign credit,’ which is used to the Sovereign ESG Data Portal is the data assess the more than 70 EM sovereigns framework, which incorporates criteria that make up the EM Bond Index; and relevant to all 17 Sustainable Development Goals, crucial for financial sector • The Sovereign ESG Data Portal representatives to consider when assessing was referenced in a report by the Sovereign ESG risks, opportunities, and U.S. Climate-Related Market Risk potential for impact. The framework is Subcommittee, part of the Market being used in the following ways: Risk Advisory Committee of the U.S. Commodity Futures Trading • A major international asset manager Commission. This information is considered the Sovereign ESG Data expected to inform the climate finance Framework in the development of its policy of the Biden administration. sovereign sustainability index; • Pillar 3 also published a report, • A global investment bank has ‘An Analysis of Coverage Gaps in integrated the Sovereign ESG Portal Sovereign ESG Data,’ which is available data into its sovereign analysis in HTML or PDF. Guest Viewpoint: Rory Sullivan & Fiona Stewart Box 8. Blogs Overheating pension pots: How resilient are pension systems to published from climate change? Jan 2020 to Unlocking Private Finance for Nature June 2021 Investing in nature makes good economic sense Corporate debt restructuring in times of COVID-19: The case for Debt-for-Climate swaps Impact investing: A pension fund in Thailand shows the way from intention to implementation My word is my bond: Linking sovereign debt with national sustainability commitments Seeing the Forest for the Trees: Why Pension Funds Should Take Another Look at Forestry as an Asset Class Moving from ambition to action toward a greener financial system Sovereign ESG investing: We can do better Linking Sovereign Debt with Climate & Nature Targets Nature Action 100: A proposal for targeted investor engagement on biodiversity 54 Global Program on Sustainability Box 9. World Bank The World Bank Sovereign ESG Data Portal was launched in October 2019. Sovereign ESG Data From the launch, the portal had 12,507 unique visitors and 5,157 downloads of Portal: key facts datasets. The portal is designed to help investors better align ESG analysis with key sustainable development policy indicators and analysis, as well as to increase data transparency and support private sector investments in emerging markets and developing countries. The Sovereign ESG Data Framework comprises 17 themes which were selected to provide a balanced picture of policy performance and country conditions, given data availability. The initial set of indicators is based on both current market and World Bank usage of these criteria. The framework incorporates 67 indicators in total, covering all 17 Sustainable Development Goals. The dataset underlying the Portal, the Sovereign ESG Data Set is avail-able on the World Bank Development Data Hub for all World Bank countries. “Although investors have long been aware that ESG information is relevant—and in many cases critical for their investments—especially in developing countries, it has been a challenge for investors to make well-informed de-cisions due to lack of experience and data. This Sovereign ESG Data Portal will improve the quality, scope, trans-parency, and timeliness of publicly available ESG data, and gives investors and others the opportunity to benefit from research and field work experience. “GPIF trusts this data portal will improve and enhance the quality of investment decisions of our asset managers.” said Hiro Mizuno, Executive Managing Director and Chief Invest-ment Officer, Government Pension Investment Fund (GPIF), Japan. Research Agenda: Effects of Sustainability on the Financial Sector Nine reports were published between June The project explored the potential 2019 and June 2021, spanning sustainable application of satellite imagery to assess finance topics from ‘mobilizing private ‘Natural Capital wealth and sovereign finance for nature’ to ‘climate risk in risk’ through crop health and weather- pension funds.’ The findings of some of related indicators, to supplement these papers were shared with members existing sovereign ESG data metrics. of the Coalition of Finance Ministers for Climate Action and the Network for A working group to set up a Taskforce on Greening the Financial System. They Nature-related Financial Disclosures (TNFD) were also disseminated through the UN was launched in 2020, and the World Green Growth Knowledge Platform and Bank provided technical input. The Pillar the Emerging Markets Investors Alliance. 3 team also conducted research, facilitated conversations, and coordinated interested The Pillar 3 team also established an parties to enable the establishment of the environmental data partnership project forthcoming ‘Nature Action 100’ investor with the European Space Agency. engagement initiative on nature. Annual Report 2021/2022 55 The following research publications referenced several times in the finance were picked up by media outlets and chapter of the Dasgupta Review. The trade publications. Additionally, certain Demystifying Sovereign ESG report was publications were referenced in other referenced in the Network for Greening high-level reports. The ‘Mobilizing the Financial System (NGFS) ‘Sustainable Private Finance for Nature’ report was Finance Market Dynamics’ report. • Mobilizing Private Finance for Nature: This report looks at the current Box 10. Research state of play with regard to private finance in support of biodiversity and Publications on Ecosystem Services. The report argues that the financial sector has a Sustainable Finance critical role to play in addressing the global biodiversity crisis, and that governments and regulators hold the key to harnessing the power of the prepared 2019–2021 financial sector to mobilize private finance at scale to protect nature. The report highlights a set of “Big 5” ideas for actions that can be taken to better integrate biodiversity risk and opportunities into private sector decisions.  • Riding the Wave: Navigating the ESG Landscape for Sovereign Debt Managers: This report serves as the foundation of a proposed joint technical assistance offering by the World Bank covering issues related to sovereign debt management and ESG investing, including market development, debt management strategy, and labelled bond issuance. • Spatial Finance: Challenges and Opportunities in a Changing World (produced jointly with WWF): This report outlines a possible taxonomy and hierarchy for spatial finance, showing how discrete forms of technology, approaches and data can be considered within a single consistent framework. Using this framework, spatial finance could provide insights at differing scales for different applications—from the asset-scale for project finance, to company-scale for investment, to country-scale for sovereign debt. Throughout the document, authors provide insights into current cutting-edge developments within the field, illustrated with case studies from practitioners and data providers, and explore potential future developments. • Toolkit for sustainable investment policy and regulation (part 1) (produced jointly with Principles for Responsible Investment): provides a high-level overview of five foundational sustainable investment policies, explaining why each is important, setting out their key features and presenting some examples of such policies in action. 56 Global Program on Sustainability • Demystifying Sovereign ESG: This paper demystifies sovereign ESG as a distinct segment of the ESG sector by assessing the major sovereign ESG providers that have laid the foundation for the operationalization of ESG investing in sovereign fixed income markets. Analysis underlying the paper finds an ingrained income bias in Sovereign ESG. • Pension Systems Plus Climate Risk: Measurement Plus Mitigation: Pension Climate Risk Heatmap looks at the exposure of pension funds to climate change (according to the amount they invest domestically and their own country’s climate risk). The report also examines the regulatory environment in which the pension funds operate as an important counterpart to the heatmap, to find out whether the necessary regulatory measures are being put in place by countries to help mitigate this climate risk. The results—along with recommendations to pension funds and regulators—are outlined in the report. • Pension Fund Investment in Forestry: This report details the nature of forestry investments, explores the case for investing in forestry, explains the mechanics of forestry investments, and highlights some of the challenges. Forestry investment can offer financial and environmental, social, and governance (ESG) benefits. However, challenges to investing in forestry are significant, particularly in emerging markets. The report concludes that the time is right to support broader involvement by pension plans in forestry investments globally. • Natural Capital and Sovereign Bonds: This working paper estimates the relationship between Natural Capital and government bonds through the macroeconomy and credit risks. It looks at both the long-term, between- country view and the short-term, within-country view. The paper finds that non-renewables (fossil fuels and mineral assets) raise bond yields, possibly due to the resource curse. Renewables (forests and agricultural wealth) lower borrowing costs because they are economically worthwhile investments. Protected areas are more likely to be luxury investments. • A New Dawn: Rethinking Sovereign ESG (joint with J.P . Morgan): This publication consists of two independent reports. The first part is written by the World Bank and takes stock of the current sovereign ESG investing framework and proposes improvements. The second part presents a survey on ESG practices among emerging market (EM) sovereign debt investors conducted by J.P. Morgan, which launched the first EM sovereign ESG index in 2018. Annual Report 2021/2022 57 Finance Assessments The methodology for nature-related financial jointly by the World Bank and the IMF). risk assessments is currently being developed. This analysis provides countries with an An assessment for Brazil was completed and assessment of climate and environment- published: Nature-Related Financial Risks in related financial risks and opportunities they Brazil. An assessment for Malaysia is under are facing. This was presented to the World way. Additionally, Pillar 3 supported the Bank Board in June 2021. Components development of the methodology for Climate of this methodology were included in and Environmental Risk and Opportunity the ‘Sustainable Finance Toolkit’ report (CERO) Assessments by the Financial Sector mentioned below. The first assessment was Assessment Program(FSAP – carried out completed for the Philippines. Capacity Building, Disclosure, and Engagements Between 2019 and 2021, a number of • Preparation of ‘Sustainable Investment: activities took place under Pillar 3 related to Best Practice Disclosure Checklist for capacity building and technical assistance on Pension Funds,’ which has been used to the implementation of sustainable finance benchmark and inform the World Bank measures (Box 11). Highlights include: Group’s own pension fund’s sustainable investing approach. The framework was • The Toolkits for Policy makers to Green applied in World Bank engagement the Financial System report, published in Colombia—which fed into national in May 2021. The toolkits presented in regulation governing the sector; this report aim to help countries set clear and predictable strategies, increase • Three additional country and regional the attractiveness of green investments, sustainable finance contributions are and better understand and manage under way (for Sub-Saharan Africa, Nepal, climate-related and environmental risks. and Cambodia); Targeted financial public authorities may include ministries of finance or related • Support to the Coalition of Finance government agencies, as well as central Ministers for Climate Action, the Network banks and financial supervisors or for Greening the Financial System (NGFS), regulators. The report summarizes the key and the Sustainable Banking Network, characteristics of each approach, provides which used several of the knowledge key actions to drive implementation, and products mentioned above to inform references other publications that provide their activities and deliberations; more detailed guidance. • Technical assistance to the Government • Technical assistance provided to the of Colombia on greening the financial Government Pension Fund of Thailand, sector. This included the use of the pension which aims to be a lead ESG investor in reporting benchmark, developed with GPS the country and published the report, support, to guide policy advice in country Government Pension Fund: Thailand operations. The result was the development Environmental, Social, and Governance of ESG reporting requirements, including ‘E’ Weight and Score – Asset Valuation elements beyond the existing governance Methodology; requirements. Proyecto de Circular Externa 21 -2021 58 Global Program on Sustainability Box 11. Detailed Specific activities carried out to provide capacity building and technical activities related to assistance on the implementation of sustainable finance measures: capacity building Publication of the following reports: and engagement • Sustainable Investment: Best Practice Disclosure Checklist for Pension Funds • Starting on a Sustainable Investing Journey (published by Pension Fund Service) • Government Pension Fund: Thailand Environmental, Social, and Governance Weight and Score – Asset Valuation Methodology • Toolkits for Policy Makers to Green the Financial System Contributions to international network agendas Analytical contributions to the Coalition of Finance Ministers for Climate Action, the Network for Greening the Financial System (NGFS), and the Sustainable Banking Network. • Contributed to the following Coalition workshop: – Stakeholder Dialogue with the Convention on Biological Diversity Secretariat • Contributed to the following Coalition paper: – Summary for Policy makers on Private Financial Sector Paris Alignment – Climate-Related Risks for Ministries of Finance: An Overview • Contributed to the following NGFS publications: – Guide for Supervisors: Integrating Climate-related and Environmental Risks into Prudential Supervision; – Status Report on Financial Institutions’ Experiences from Working with Green, Non-green and Brown Financial Assets and a Potential Risk Differential; and – Sustainable Finance Market Dynamics: An Overview and Dashboard. • Contributed to the following Sustainable Banking Network (SBN) output: – SBN’s strategy on nature and biodiversity. Presentation of GPS Pillar 3 research at 49 conferences and events in Asia, Europe, and the Americas, to investors, government representatives, NGOs, academics, and to World Bank staff. These events included: • Chartered Financial Analyst (CFA) ESG Asset Owners Summit; • Spatial Finance Initiative: Asset Level Data – Annual Meeting (University of Oxford); • Responsible Investor Digital Fest and Digital Fest Japan; • UNDP: Post-2020 Pavilion Virtual Biodiversity Dialogue Series; • UN Principles for Responsible Investment: Building Sustainable Financial Systems in Emerging Markets; and • 4th Annual EM ESG conference: JP Morgan and EM Investor Alliance. Annual Report 2021/2022 59 Children play in a river at sunset in Thailand (PK Studio / Shutterstock) MONITORING & EVALUATION In FY21, the Bank team prepared a comprehensive Monitoring and Evaluation (M&E) plan, including a Theory of Change; a result framework with impact and outcome indicators; arrangements for monitoring program progress and reporting on it; and a framing note on impact assessment to be conducted in three stages during the life of the program. The plan was discussed at a workshop with the GPS donors, who later endorsed the plan as revised on the basis of the outcomes of the workshop. This chapter summarizes progress being made on the achievement of the results included in the GPS M&E plan. As the World Bank’s umbrella program on Natural Capital, Ecosystem Services and the economics of sustainability, GPS encompasses WAVES Plus. Therefore this chapter also reports on progress made on the WAVES plus indicators, using a “hybrid” approach. In particular, all indicators defined in the GPS M&E plan agreed upon with the GPS donors will be used; for Pillar 2, progress will also be tracked using the WAVES Plus indicators (Table 4). 61 Table 4. Hybrid approach to result reporting Scope of indicators Indicators used   This Progress report FY22 and FY23 FY24 progress reports (FY20-21) progress reports onwards Program-wide GPS impact indicators(a) Pillar 1 GPS Pillar 1 indicators(a) Pillar 2 WAVES Plus and WAVES Plus and GPS Pillar 2 indicators(a) GPS Pillar 2 indicators GPS Pillar 2 indicators (a) (a) Pillar 3 GPS Pillar 3 indicators(a) (a): refers to GPS indicators included in the Program M&E plan finalized in consultation with GPS donors in June 2021 The hybrid approach enables proper To further explain the summary tracking of results achieved with each figures reported in Table 5, consider an source of funding. Since WAVES plus will indicator expected to achieve a value of close in December 2022, the progress 5 by the end of the respective program. reports for FY22 (which ends in June Prorated by the time left till the closing 2022) and FY23 (which spans July 2022 date of the relevant Trust Fund, (that to June 2023, thus encompassing the is, December 2022 for WAVES Plus final six months of WAVES Plus) will and December 2025 for GPS), by the follow the hybrid approach described end of the current reporting period above. From the FY24 report onwards, (June 2021) that indicator would be only the GPS results framework will be expected to meet or exceed the values used, thereby completing the transition. of 3.5 and 1.8, for WAVES plus and GPS, respectively. Indicators that have Overall, the program is on track toward achieved the said cutoff levels are achieving its objectives (Table 5). assigned to class A (meet or exceed Considering the time left prior to the end of program target); indicators for closing of the two Trust Funds (that relevant activities that have started is, 1.5 years and 4.5 years for WAVES during the reporting period but have Plus and GPS respectively): for the not yet been competed are assigned to vast majority of indicators (82%) the class B; the remaining indicators are expected target has either already been assigned to class C. met (or exceeded, 58%); or activities are well under way to achieve it (24%). 62 Global Program on Sustainability Table 5. Progress in achieving GPS/ WAVES Plus results Pillar Number of Share of indicators by progress indicators toward end of program target A. Indicator B. Indicator C. Relevant meeting or on its way to activities exceeding achieve target(b) expected to target(a) start soon GPS 26 38% 35% 27% Program-wide 7 29% 29% 43% Pillar 1: Global data and 6 33% 50% 17% information Pillar 2: Country and 4 0% 75% 25% regional work Pillar 3: Sustainable 9 67% 22% 11% finance WAVES Plus 19 84% 5% 11% Pillar 2 19 84% 5% 11% Grand total 45 58% 24% 18% (a): For each pillar, the table reports the share of the corresponding indicators that meet or exceed their end-of program targets, taking into account the time remaining prior to the closing of the WAVES Plus Trust Fund (December 2022) and the GPS Trust Fund (December 2025). (b): Indicators for which relevant activities have started during the reporting period The rest of the tables in this chapter provide information on progress at the level of individual indicators, organized by program pillar. Table 6. Progress in achieving GPS Impact indicators Indicators Baseline Value at Notes End of Indicator (and unit of measurement) end FY21 program class (defined target in notes below) 1. Countries supported by the program 21(a) 24 Progress 27 B that are compiling publicly accessible under way data on Natural Capital and Ecosystem in Chad, Services (number) Mexico, Pakistan(b) 2. Countries supported by the program 21(a) 25 Progress 37 C that have used data on Natural Capital under way and Ecosystem Services in the design in Bolivia, and implementation of development Ghana, policies, programs and projects, Mexico, including those co-financed by the Pakistan(b) World Bank (number) Table continued on next page Annual Report 2021/2022 63 Table 6 continued Indicators Baseline Value at Notes End of Indicator (and unit of measurement) end FY21 program class (defined target in notes below) 3. Policy documents (at the national 45(c) 50 Progress 57 B or subnational level), such as under way development plans, sectoral policies in Chad, and strategies, or bills, informed by Mexico, GPS-supported activities (number) Nigeria, Pakistan, Ukraine(b) 4. Annual unique visitors on Sovereign 0 19,210 25,000 A ESG Data Portal (number), Of which return visitors (%) 59% 40% 5. Share of investors(d) considering 20%(e) 20% Survey 30% A nature in their sovereign bond planned in investments (%) FY22 6. Share of investors using WB data in 20%(e) 20% Survey 30% C their sovereign bond investment (%) planned in FY22 (a) The baseline includes countries supported by WAVES or WAVES Plus, namely Botswana, Cambodia, Colombia, Costa Rica, Egypt, Ghana, Guatemala, Indonesia, Kyrgyz Republic, Lao PDR, Madagascar, Morocco, Myanmar, Nepal, Nigeria, Philippines, Rwanda, Uganda, Uzbekistan, Vietnam, and Zambia. (b) Includes countries that are on their way to achieve the results, as discussed in detail in other chapters of the report. (c) The baseline refers to the policy documents discussed in the WAVES closeout report. (c) Investors are defined as those participating in the Emerging Markets Investors Alliance and participating in regular surveys administered by the Alliance. (d) The baseline is an estimate by the GPS Secretariat and will be verified during the first year of implementation. Indicator classes: A: Indicator meeting or exceeding target B: Indicator on its way to achieve target C: Relevant activities expected to start soon Table 7. Pillar 1 Result indicators (GPS Results Framework) Component/ Type Baseline Value at Notes End of Indicator Indicators (and unit of the end program class measurement) of FY21 Target Measuring sustainability 1. New or improved Outcome 5 9 New data layers 12 A global datasets or data for mangroves and layers on Natural Capital marine fisheries in or Ecosystem Services wealth accounts. (number) Improved wealth measures for agriculture and forest Ecosystem Services 64 Global Program on Sustainability Table 7 continued Component/ Type Baseline Value at Notes End of Indicator Indicators (and unit of the end program class measurement) of FY21 Target 2. Global data and Outcome 0 0 Consultations being 1 B knowledge platform held with key partners on natural capital and (such as UNSD, ARIES ecosystem services team, BC3, IDB, WRI, establishment and IFC) on the design of operationalization the platform 3. Technical reports on the Output 0 2 As part of the Road 4 A economics of sustainability to Kunming work: (number) a) Report on Mobilizing Private Finance for Nature published (A) b) Report on the Economic Case for Nature launched (A) c) Unlocking Nature- Smart Development: An Approach Paper on Biodiversity and Ecosystem Services launched (B) d) Concept note prepared for a new report on Environmental Fiscal Reform (B) Mainstreaming sustainability 4. Flagship publications Output 3 3 Substantial Progress 5 B (Changing Wealth of made on the new Nations- CWON) (number) edition of CWON, to be published in 2021 5. Tools and guidance Output 0 0 a) Advanced version 3 B notes to support the of the Ecosystem integration of Natural Services Assessment Capital in decision making Toolkit (ESAT) (number) b) Scoping work carried out on the modeling platform 6. Training sessions on the Output 0 0 Internal 6 C use of NCA approaches in consultations held on NBSAPs, NBS, NDCs and in the design of training projects (number) activities Indicator classes: A: Indicator meeting or exceeding target B: Indicator on its way to achieve target C: Relevant activities expected to start soon Annual Report 2021/2022 65 Table 8. Pillar 2 Result indicators (WAVES Plus) Component/ Type Baseline Value as Notes End of Indicator Indicators (unit of of end program class measurement) FY21 Target Country Work Countries supported by Outcome 0 5 Zambia,(a) Uganda,(a) 4 A the project with at least Egypt,(a) Morocco,(a) two environment-related Kyrgyz Republic,(a) sectors in Natural Capital Mexico(b) accounts in accordance with defined criteria and publicly accessible Countries supported by the Outcome 0 6 Nepal,(a) Zambia,(a) 10 B project with at least two Uganda,(a) Egypt,(a) policy analyses related to Myanmar,(a) Natural Capital accounting Cambodia,(a) made publicly accessible Mexico,(b) Morocco(b) IR Indicator 1.1: Countries Output 0 4 Zambia,(a) Uganda,(a) 4 A supported by the project Morocco,(a) Egypt(a) with Natural Capital Accounts Steering Committee established IR Indicator 1.2: Output 0 260 (72) Estimate of 10 A Skilled staff in relevant participants in government institutions technical trainings participating in Natural Capital accounting and related policy analysis (the number of females who participated) IR Indicator 1.3: Countries Output 0 5 (2) Kyrgyz Republic,(a) 4 A supported by the project Uganda,(a) Zambia,(a) with first preliminary draft Egypt,(a) Morocco(a) Natural Capital accounts collected in their second year (of which x have ecosystem accounts) IR Indicator 1.4: Countries Output 0 4 Zambia,(a) Uganda,(a) 4 A supported by the project Egypt,(a) Morocco,(a) with validation and (though the latter publication of final Natural only had 1.5 years of Capital accounts in their programs) third year, and made publicly accessible (of which x have ecosystem accounts) IR Indicator 1.5: Countries Output 0 11 Kyrgyz Republic,(a) Lao 4 A supported by the project with PDR,(a) Madagascar,(a) preparation phase finalized, Nepal,(a) WACA including firm political program,(a) Cambodia,(a) commitment received, Myanmar,(a) (TTAs); key entry point for policy Uganda,(a) Zambia,(a) making/policy questions, Egypt,(a) Morocco,(a) and accounts identified (CICs) 66 Global Program on Sustainability Table 8 continued Component/ Type Baseline Value as Notes End of Indicator Indicators (unit of of end program class measurement) FY21 Target IR Indicator 1.6: Number Outcome 0 6 Nepal (1)(a), Uganda 4 A of key policy documents (1)(a), Zambia (3)(a), such as development Morocco (1)(a), Mexico plans, sectoral policies (2)(b), Morocco (1)(b) and strategies, or bills that reference NCA or the accounts IR Indicator 1.7: Countries Output 0 10 Lao PDR,(a) 10 A supported by the project (6) Madagascar, (a) with policy question(s) Nepal,(a) WACA identified, methodologies program,(a) chosen, and first results Cambodia,(a) available (number of TTAs) Myanmar,(a) Mexico,(b) (TTAs); Uganda,(a) Zambia,(a) Egypt,(a) Morocco,(a) (CICs) IR Indicator 2.3: Number Output 0 10 Cambodia,(a) Lao 12 A of countries with targeted PDR,(a) Madagascar,(a) technical assistance Myanmar,(a) Nepal (2)(a), Uzbekistan,(a) Vietnam,(a) WACA regional program (Ghana, Nigeria),(a) Kyrgyz Republic,(a) Direct project beneficiaries Output 0 1,575 160 A (the number of female beneficiaries) Regional work IR indicator 2.1: Regional Output 0 26 Webinar/training 3 A knowledge events on NCA events under Africa supported by the project NCA CoP IR Indicator 2.2: Regional Output 0 4 FY20: Report from 3 C knowledge products Africa NCA CoP supported by the project made publicly accessible Global work IR Indicator 3.1: Global Output 0 9 FY20: Virtual 7 A knowledge events on Ecosystem Expert developing ecosystem Forum accounts supported by the project IR Indicator 3.2: Global Output 0 3 FY20: Contributions 7 C knowledge products on to the SEEA-EEA developing ecosystem revisions accounts made publicly accessible Table continued on next page Annual Report 2021/2022 67 Table 8 continued Component/ Type Baseline Value as Notes End of Indicator Indicators (unit of of end program class measurement) FY21 Target IR Indicator 3.3: Global Output 0 4 FY20: 4th NCA Policy 5 A knowledge events on Forum in Kampala policy uses of NCA supported by the project IR Indicator 3.4: Global Output 0 4 FY20: Proceedings 5 A knowledge products on from 4th Policy policy uses of NCA made Forum publicly accessible IR Indicator 3.5: Hits on Output 93,255 in 152,000 149,208 A WAVES website (global 2015 and country pages) (Subscribers newsletter) Outcome 0 4,500 4,000 A (a) Result achieved (a) The baseline CIC countries are: Botswana, Colombia, Costa Rica, Egypt, Guatemala, Indonesia, Madagascar, (b) Work under way to achieve result Morocco, Philippines, Rwanda, Uganda, and Zambia. Indicator classes: (b) The baseline TTA countries are: Cambodia, A: Indicator meeting or exceeding target Ghana, Kyrgyz Republic, Lao PDR, Myanmar, Nepal, Nigeria, Uzbekistan, and Vietnam. B: Indicator on its way to achieve target (c) Work under way to achieve result. Some countries C: Relevant activities expected to start soon to receive follow-on TTA support following WAVES Plus. Indicator classes: A: Indicator meeting or exceeding target B: Indicator on its way to achieve target Table 9. Pillar 2 Result indicators (GPS) C: Relevant activities expected to start soon Indicators (unit of Type Baseline Value as Notes End of Indicator measurement) of end program class FY21 Target Core Implementing Outcome/ 12(a) 12 Call for proposal 18 C Countries (CICs) Output prepared in FY21 supported by the program (number) Targeted Technical Outcome/ 9(b) 24 Bolivia,(c) 20 B Assistance (TTAs) Output Cambodia2(c), supported by the Chad,(c) Ghana2(c), program (number) Kazakhstan,(c) Kyrgyz Republic2(c), Lao PDR2(c), Mexico,(c) Morocco,(c) Nigeria2(c), Pakistan,(c) Rwanda,(c) Uganda,(c) Ukraine,(c) Zambia(c) Regional Communities of Outcome/ 0 1 Africa 2 B Practice (RCoPs) established Output and operational (number) Global knowledge events on Output 4 5 Expert workshop 8 B NCA policy uses supported on NCA/Green by the project (number) Recovery June 2021 68 Global Program on Sustainability Table 10. Pillar 3 Result indicators (GPS Results Framework) Components/ Type Baseline Value as Notes End of Indicator Indicators (unit of of end program class measurement) FY21 Target Sustainability information 1. ESG Sovereign Outcome No Yes The Portal was launched Yes: A Data platform in 2019. Interactive established and portal operational (Yes/No) 2. Innovative Outcome 0 0 Products are under 2 B financial products development, but not yet launched (number) launched. Research agenda 3. An annual Output No Yes 9 publications were Yes: 3 A research program on released during this time publications sustainable finance period. (per year) is delivered (Yes/No) Finance assessments 4. Countries Output 0 1 The methodology 8 C conducting nature- is currently being related financial developed. An risk assessments for assessment for Brazil the financial sector was completed and one (number) for Malaysia is under way. 5. Financial Sector Output 0 1 The methodology was 1 A Assessment delivered to the World Program (FSAP) Bank Board in June 2021. Climate and Environmental Risks and Opportunities (CERO) methodology designed and delivered to the WB Board (number) Capacity building, disclosure, engagements 6. Toolkits for Output 0 1 The toolkits paper was 8 B sustainable delivered in May 2021. investment policy Two implementation and regulation, papers are under way (on implementation greening development papers (number) banks and climate- related reporting). 7. Contributions Output 0 2 Contributions to Thailand 4 A to sustainable on ESG integration in the finance country government pension fund engagements and Colombia on greening (number) the financial system were completed. Three contributions are under way (for Sub-Saharan Africa, Nepal, and Cambodia). Table continued on next page Annual Report 2021/2022 69 Table 10 continued Components/ Type Baseline Value as Notes End of Indicator Indicators (unit of of end program class measurement) FY21 Target 8. Sustainable Output 0 49 GPS work was presented 4 (per year) A finance events at 49 events and (organized and conferences globally participated in) to a range of different (number) stakeholders. 9. WB contributions Output 0 3 GPS supported Pillar 4 A to international 3 contributions to network agendas three papers (one (Network for that included a data Greening the dashboard) published Financial System by NGFS in 2020 and / Coalition 2021. GPS contributed Finance Ministers/ to one paper published Sustainable Banking by the Coalition on Network) (number) private financial sector Paris alignment and to the SBN strategy to incorporate biodiversity into its work. Indicator classes: A: Indicator meeting or exceeding target B: Indicator on its way to achieve target C: Relevant activities expected to start soon 70 Global Program on Sustainability Annual Report 2021/2022 71 FINANCIAL REPORT The WAVES Plus Multi-donor Trust Fund was set up in November 2016. Total pledges (i.e. signed contributions) to WAVES Plus to date amount to $10.1 million. By the end of fiscal year 2021 (end June 2021), $8.8 million of it was disbursed. WAVES Plus was scheduled to close at the end of December 2020. An agreement was reached between the development partners and the World Bank to extend WAVES Plus by two years till December 2022. The GPS Multi-Donor Trust Fund was set up at the beginning of 2019 with seed funds pledged by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) in the amount of 2 million Euros. In 2020, the UK (DEFRA) made a contribution of $26.2 million to GPS; Germany (BMZ) and Switzerland (SECO) made additional pledges for 2 million Euros and 3 million Swiss Francs, respectively. Total signed contributions under the GPS MDTF as of the end of fiscal year 2021 were $34.1 million, and paid-in contributions were $30.7 million. Of this amount, $3.6 million was disbursed as of the end of fiscal year 2021. Table 11 and Table 12 show the financial status of the WAVES Plus and GPS Multi-Donor Trust Funds (MDTFs) as of June 30, 2021. Of the total donor pledges (signed contributions) for the two trust funds of $44.3 million, an amount of $40.0 million has been transferred (paid-in) to the World Bank as of the end of June 2021. The two trust funds disbursed or committed $13.1 million ($8.8 million for WAVES Plus and $4.3 Million for GPS); in relation to the funds transferred to the World Bank, this amounts to 94% for WAVES Plus (which is nearing completion); and 14% in the case of GPS (which is expected to close at the end of 2025). Table 11. Financial Summary (in US$, as of June 30, 2021)    WAVES+ GPS Trustee Total Trustee TF073257 TF072708 A. Total donor pledges, per signed Administration 10,097,150 34,198,628 44,295,778 Agreement  United Kingdom – DFID  2,540,500 2,540,500 EU-Commission of the European Communities  3,056,650 3,056,650 Netherlands 4,500,000 4,500,000 Minister for Foreign Trade and Development Cooperation  Germany 4,636,568 4,636,568 Bundesministerium für Wirtschaftliche Zusammenarbeit (BMZ)  United Kingdom 26,215,522 26,215,522 Department for Environment, Food and Rural Affairs (DEFRA) Swiss State Secretariat for Economic Affairs (SECO)  3,346,538 3,346,538 B. Actual funds received from donors*  9,264,920 30,737,228 40,002,148 United Kingdom - DFID  2,540,500 2,540,500 EU-Commission of the European Communities  2,224,420 2,224,420 Netherlands 4,500,000 4,500,000 Minister for Foreign Trade and Development Cooperation  Germany 2,269,200 2,269,200 Bundesministerium für Wirtschaftliche Zusammenarbeit (BMZ)  United Kingdom 26,215,522 26,215,522 Department for Environment, Food and Rural Affairs (DEFRA)  Swiss State Secretariat for Economic Affairs (SECO)  2,252,506 2,252,506 C. Other adjustments  180,876 109,226 290,102 Administrative fees to World Bank central units (-)  Investment income (+)  180,876 109,226 290,102 D. Total funds available (B+C)  9,445,796 30,846,454 40,292,250 E. Grants: Allocations  10,103,011 10,187,369 20,290,380 WAVES+  10,103,011 10,103,011 GPS  10,187,369 10,187,369 F. Grants: Disbursements & Commitments  8,801,150 4,369,884 13,171,034 Funds disbursed  8,649,661 3,605,311 12,254,972 Funds committed to be disbursed - BETFs  151,489 764,573 916,062 Funds committed to be disbursed - RETFs  - G. Funds available (Trustee & Grant level)  644,568 26,649,982 27,294,550 at Grant and Subfund level after disbursements and 644,596 1,382,137 2,026,733 commitments  at Trustee level after allocation to grants  -28 25,267,845 25,267,817 Source: My Trust Fund database, November 10, 2021. DFID = Department for International Development GIZ = Deutsche Gessellschaft Fur Internationale Zusammenarbeit BMZ = Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung * Will fluctuate with exchange rate changes. Annual Report 2021/2022 73 Both programs support country-level Together, they accounted for some and global activities, as well as cross- 60% of funds disbursed or committed. cutting quality assurance and program Country level work has only started in management work. The content of the earnest only in 2021, following the sizable country-specific work is defined in close financial contribution provided by DEFRA collaboration with governments and other to the program. The share of country country stakeholders; it includes in-country work was 18% of the total amount of communications and training workshops, resources committed or spent; program as well as regional workshops. Global work management and quality assurance includes analytical and data activities activities accounted for 20% of the total. applicable to as many countries as possible, as well as knowledge sharing, outreach Moving forward, it is expected that the and communication, as illustrated in other share of country and regional work will chapters of this report. The breakdown of considerably increase, in line with share spending across components is reported in envisaged in the 2020 workplan (53% of Table 13 and Table 14 for WAVES Plus and the total resources programmed); and as GPS, respectively5. the GPS management team improves the granularity of its financial reporting (since For WAVES Plus, the bulk of resources has activities currently mapped to Pilar 1, or been used to date for country/regional work Pillar 3 often support country level work). (some 58 percent of total funds disbursed or committed). Global activities have been For both WAVES Plus and GPS, the overall supported with a 37 percent share of the structure of this year’s financial report total; program management and quality is consistent with previous reports, and assurance activities accounted for some 5 includes the presentational improvements percent of the total. contained in the 2019 annual report (for example, footnotes to better specify the In the case of GPS, during the first two nature of some activities). years of implementation (when only seed funds for the program where available) efforts have focused on global level work under Pillar 1, and sustainable finance work under Pillar 3. 5 It is worth noting that in these tables the total figures on allocations, disbursements and commitments are in line with the financial reporting accessible via the Client Connection portal. However, the breakdown of the totals figures may be in certain cases be different between the present report and the data in the portal. The reason is that the latter uses individual disbursing Trust Funds as units of account; whereas this report uses, for ease of comparison with the workplan, program components or sub-components as units of accounts. In some cases, multiple disbursing trust funds support the same program component; in some others, a single individual disbursing funds support the implementation of multiple components. 74 Global Program on Sustainability Table 12. Donor Pledge and Contribution Summary (as of June 30, 2021)     Outstanding   Pledges Contribution made Contribution Donor Cur- Amount Amount Paid in Paid in Unpaid in Unpaid Paid rency in Con- in US$* Contri- US$* Contri- in US$* in % tribution bution bution Currency Currency Currency United Kingdom - GBP 2,000,000 2,540,500 2,000,000 2,540,500 - - 100% Foreign, Commonwealth and Development Office Netherlands - Minister USD 4,500,000 4,500,000 4,500,000 4,500,000 - - 100% for Foreign Trade and Development Cooperation EU-Commission of the EUR 2,700,000 3,056,650 2,000,000 2,224,420 700,000 832,230 73% European Communities Subtotal WAVES+ 10,097,150 9,264,920 832,230 92% Germany - EUR 4,000,000 4,636,568 2,000,000 2,269,200 2,000,000 2,367,368 49% Bundesministerium für Wirtschaftliche Zusammenarbeit UK - Department for USD 26,213,442 26,213,442 26,213,442 26,213,442 - - 100% Environment, Food and Rural Affairs (DEFRA) UK - Department for GBP 1,586 2,081 1,586 2,081 - - 100% Environment, Food and Rural Affairs (DEFRA) Swiss State Secretariat for CHF 3,000,000 3,346,538 2,000,000 2,252,506 1,000,000 1,094,032 67% Economic Affairs (SECO) Subtotal GPS 34,198,628 30,737,228 3,461,400 90% Total WAVES+ and GPS 44,295,778 40,002,148 4,293,630 90% Source: SAP and My Trust Fund database, November 10, 2021. DFID = Department for International Development GIZ = Deutsche Gessellschaft Fur Internationale Zusammenarbeit BMZ = Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung * Will fluctuate with exchange rate changes. Annual Report 2021/2022 75 Table 13. WAVES Plus Trust Fund: Summary of disbursements and commitments (in US$, as of June 30, 2021) Activities Allocation Disbursed Committed Disbursed & Available Committed balance COUNTRY WORK WAVES+ CICs 2,420,536 2,395,568 0 2,395,568 24,967 Uganda Natural Capital Accounting Support 600,536 600,536 0 600,536 0 WAVES – Egypt 470,000 469,509 0 469,509 491 WAVES Morocco 625,000 611,263 0 611,263 13,737 WAVES+ Zambia 725,000 714,261 0 714,261 10,739 WAVES+ TTA 1,981,888 1,755,284 28,045 1,783,329 198,559 Central Asia: Climate and Environment 249,988 249,988 0 249,988 0 (CLIENT) Program-UZ WAVES Enhancing Capacity for integrating 110,475 110,475 0 110,475 0 ecosystem accounting in landscape planning in Cambodia LAUREL- Assessing Ecosystem Services 242,267 242,267 0 242,267 0 at Landscape and National Levels for improved landscape management in Madagascar Myanmar WAVES TTA: Forest 169,985 169,985 0 169,985 0 Contribution to Resilient Coastal Economies in Myanmar Vietnam: Assessing the contribution of 175,000 174,868 0 174,868 132 coastal assets to climate resilience WAVES – Nepal 249,999 249,999 0 249,999 0 WAVES Plus - Nepal 68,837 68,837 0 68,837 0 WAVES Plus - Lao PDR 121,311 121,311 0 121,311 0 WAVES Plus Kyrgyz Republic 334,423 334,423 0 334,423 0 WAVES+ TTA Uruguay 24,602 24,602 0 24,602 0 UG: Advancing the Uganda NCA 125,000 798 7,110 7,908 117,092 program Mexico CONECTA - Valuation of 110,000 7,731 20,935 28,666 81,334 Ecosystem Services Preliminary country work 181,990 181,990 0 181,990 0 Subtotal country activities 4,584,414 4,332,843 28,045 4,360,888 223,526 REGIONAL WORK WAVES+ Regional Work 169,174 169,174 0 169,174 0 WACA Program(a) 351,003 351,003 0 351,003 0 Africa Regional NCA CoP 217,000 107,485 70,000 177,485 39,515 Subtotal regional activities 737,176 627,661 70,000 697,661 39,515 Table continued on next page 76 Global Program on Sustainability Activities Allocation Disbursed Committed Disbursed & Available Committed balance GLOBAL WORK WAVES+: Methodology and Global 267,995 267,995 0 267,995 0 Engagement WAVES+: Annual Partnership Forums(b) 962,002 860,999 12,000 872,999 89,003 WAVES+ Global Engagement and 642,655 623,814 3,516 627,330 15,326 Strategic Communications(c) Changing Wealth of Nations 2021(d) 1,148,768 968,308 0 968,308 180,460 Road to Kunming Work(e) 540,000 503,335 6,166 509,501 30,499 Subtotal global activities 3,561,421 3,224,452 21,682 3,246,134 315,287 Waves Program Management and 495,000 464,560 0 464,560 30,440 Administration and quality assurance Total 9,378,011 8,649,516 119,727 8,769,243 608,768 Funds available in the Trustee and 67,736 Subfund level but not yet allocated Total funds available in the Trustee, 676,503 Subfund and Grant level Source: SAP Trust Fund Report, July 28, 2021. Note: There are minor differences in the commitment figures compared to Table 11, as the SAP Trust Fund Report was drawn on different dates (the commitments are always displayed as of the date the report is run, whereas “as of” dates can be specified for other variables. CICs = core implementing countries; TTA = targeted technical assistance (a) Sum of disbursing Trust Funds named “WAVES, Economics and WACA” and “WAVES+ TTA WACA” (b) Sum of disbursing Trust Funds named “WAVES+ Policy Uses of NCA,” and “WAVES+: Annual Partnership Forums” (c) Sum of disbursing Trust Funds named “WAVES+ Global engagement and strategic communications” (d) Sum of disbursing Trust Funds named “CWON EcoServ” and “CWON DriversOfChangeDecomp” (e) Disbursing Trust Fund named “WAVES Plus Modeling of changes in land use, cropland values and Ecosystem Services” Annual Report 2021/2022 77 Table 14. GPS Trust Fund: Summary of disbursements and commitments (in US$, as of June 30, 2021) Activities Allocation Disbursed Committed Disbursed & Available Committed Balance PILLAR 1. GLOBAL WORK: INFORMATION (A) 1.1.1 Global data & knowledge platform 15,500 15,498 0 15,498 2 on Natural Capital and Ecosystem Services: Road to Kunming Work 1.1.2 New or improved global 470,000 450,567 15,941 466,508 3,492 data layers on Natural Capital or Ecosystem Services 1.1.3 Technical reports on Ecosystem 365,000 282,017 41,325 323,342 41,658 Services and/or the economics of sustainability 1.2.1 Publications reporting and/or 330,000 304,318 15,941 320,259 9,741 analyzing global or regional data on Natural Capital and/or Ecosystem Services 1.2.2 Technical reports, tools and 488,808 260,237 122,516 382,753 99,801 guidance notes on the use of NCA approaches for planning and policy purposes (e.g. SCDs, CPFs, NBSAPs, NBS, NDCs) and in projects (e.g. CBA, M&E, ESF) 1.2.3 Training sessions on the use 3,744 3,744 0 3,744 0 of NCA approaches in NBSAPs, NBS, NDCs and in projects Subtotal Pillar 1. Global work: 1,673,053 1,316,382 195,723 1,512,104 160,948 Information PILLAR 2. COUNTRY-LEVEL WORK 2.1 PILLAR 2 MANAGEMENT AND 373,000 372,061 0 372,061 939 QUALITY ASSURANCE (PMQA) (a) 2.1.1 Core Implementing Countries 0 0 0 0 0 2.1.2 Targeted Technical Assistance 1,340,500 329,438 239,028 568,466 772,034 Indonesia Coastal Natural Capital 150,000 90,479 0 90,479 59,521 Accounts Indonesia Peatland Modeling 175,000 155,272 18,000 173,272 1,728 Enhancing Natural Resources 112,500 0 0 0 112,500 Management in Cambodia Valuing the cost of environmental 75,000 0 28,800 28,800 46,200 degradation in Chad Support in financing and 75,000 6,776 45,000 51,776 23,224 delivering the circular economy in Almaty Kyrgyz Republic: Policy Applications 30,000 8,307 18,900 27,207 2,793 of NCA/VES Landscape Valuation for Decision 85,500 5,439 0 5,439 80,061 Support in Lao PDR Strengthen Natural Capital 112,500 4,050 52,161 56,212 56,288 Accounting (NCA) institutionalization and policy formulation in Rwanda Table continued on next page 78 Global Program on Sustainability Activities Allocation Disbursed Committed Disbursed & Available Committed Balance Natural Capital Accounting Roadmap 75,000 33,499 37,940 71,439 3,561 for Nigeria Technical assistance and Capacity 112,500 16,078 0 16,078 96,422 building for Institutionalizing and mainstreaming of Natural Capital Accounts for policy application Bolivia: Green Recovery in the Chiquitania 75,000 7,086 4,650 11,736 63,264 Natural Capital Accounting Just-in- 75,000 0 30,000 30,000 45,000 Time Study in Pakistan Ukraine-Forest Sector Fiscal Policy & 112,500 2,452 3,577 6,029 106,471 Options for Reform JIT– Ghana –Vulnerability Assessment 75,000 0 0 0 75,000 2.2 Regional cooperation 0 0 0 0 0 2.3 Global engagement 0 0 0 0 0 Subtotal Pillar 2. Country-level work 1,713,500 701,499 239,028 940,527 772,973 PILLAR 3. SUSTAINABLE FINANCE 3. PILLAR 3 MANAGEMENT AND 76,000 72,115 0 72,115 3,885 QUALITY ASSURANCE (PMQA) 3.1 Improved sustainability 359,750 315,308 1,500 316,808 42,942 information for financial markets 3.2 Research agenda on effects of 452,491 445,262 0 445,262 7,229 sustainability on the financial sector 3.3 Sustainable finance assessments 395,127 74,781 46,012 120,793 274,334 3.4 Capacity building, disclosure, and 166,419 80,518 10,320 90,838 75,581 engagements Subtotal Pillar 3. Sustainable Finance 1,449,787 987,983 57,832 1,045,815 403,972 activities PILLAR 4. GPS PROGRAM MANAGEMENT AND ADMINISTRATION AND QUALITY ASSURANCE (a) 4.1. Strategic communications 150,250 148,557 1,685 150,242 8 4.2 Monitoring and evaluation 96,000 95,441 0 95,441 559 4.3. Program Management and 494,066 380,308 19,734 400,042 94,024 quality assurance Subtotal Pillar 4. GPS Program 740,316 624,307 21,419 645,726 94,590 Management and Administration and quality assurance Total 5,576,656 3,630,170 514,002 4,144,172 1,432,484 Funds available in the Subfund level but not yet allocated 1,948 Total funds available in the Subfund and Grant level 1,434,432 Source: SAP Trust Fund Report, July 28, 2021. Note: There are minor differences in the commitment figures compared to Table 11, as the SAP Trust Fund Report was drawn on different dates (the commitments are always displayed as of the date the report is run, whereas “as of” dates can be specified for other variables. Legend: CICs = core implementing countries; TTA = targeted technical assistance; JIT = Just in Time small scale grant (a): figures for these items are indicative estimates. They result from the reallocation of the amounts of individual disbursing funds to components or subcomponents of the workplan, to ensure comparability with the latter document Annual Report 2021/2022 79 Table 15. Disbursements by expense category (in US$, as of June 30, 2021)  World Bank 12-month fiscal year (July-June)  FY21 FY20  FY19  FY18  FY17  Total % WAVES PLUS   Technical work    (a) 2,884,795 2,476,284 1,223,544 437,082 414,869  7,436,573   of which   Staff Costs  1,393,394 1,311,583 839,815 312,336 307,500 4,164,627 48% Consultant Fees  1,491,401 1,164,702 383,729 124,746 107,369 3,271,946 38% Travel expenses  3,028 189,414 260,757 133,994 150,255 737,448 9% Media Workshop  13,937 87,491 88,805 17,827 62,407 270,466 3% Contractual Services  5,939 30,369 16,077 3,600 335 56,320 1% Other (b)  38,415 102,641 2,300 4,041 1,455 148,853 2% Subtotal WAVES Plus   2,946,115 2,886,199 1,591,483 596,544 629,321 8,649,661 100% GPS Technical work (a)  2,805,772 754,272  -  -  -  3,560,044   of which   Staff Costs  1,859,400 559,001  -  -  -  2,418,401 67% Consultant Fees  946,372 195,271  -  -  -  1,141,643 32% Travel expenses  0 30,550  -  -  -  30,550 1% Media Workshop  10,550 2,355  -  -  -  12,905 0% Contractual Services  0 -  -  -  -  0 0% Other (b)  1,757 55  -  -  -  1,812 0% Subtotal GPS  2,818,079 787,232  0 0 0 3,605,311 100% Total WAVES Plus 5,764,194 3,673,431  1,591,483 596,545  629,321  12,254,972 100% & GPS  Source: My Trust Fund database, November 10, 2021. Notes: (a) including activities of program design, analysis, quality assurance, and so forth; carried out by staff in both headquarters and country offices. (b) Translations, proofreading, transcriptions, courier/freight service, phone calls, printing, interpretation services, video conferencing, airfare rebate, equipment costs and ancillary expenses. 80 Global Program on Sustainability Annual Report 2021/2022 81 GPS is supported by: