JAKARTA, April 28, 2008 – Addressing climate change is not new for the World Bank Group. In fact it began as early as 15 years ago with the implementation of GEF funding. Since then climate change initiatives have gradually grown in size and ambition. However in terms of its overall place in the World Bank portfolio, climate change has been – at best – an annex. But now the time has come for it to evolve from a chapter towards the end of the book, to a silver thread running through the entire story.

Without belittling the issue, “climate change” has become one of the hottest buzzwords for 2008. The Bali conference in December 2007 helped raise the profile of climate change in the most constructive way – people, companies, and organizations are increasingly doing more to address the issue. It’s not just words on paper anymore. It’s not just talk anymore. It’s action.

And there’s growing recognition that climate change is not just a buzz word, but a development challenge facing Indonesia. Climate change will create threats for Indonesia–sea level rise, changing weather patterns, increased uncertainty – but also opportunities in terms of incentives, financing, efficiency, and competitiveness. Indonesia emits significant levels of Green House Gases and is highly vulnerable to climate change. The President and his team have recognized the challenge of climate change and expressed commitment to action. The potential for carbon payments and access to new sources of global financing is attractive to both the private and the public sector. After Bali COP 13, billions of dollars are being mobilized to help developing countries with mitigation and adaptation needs.

Accessing this kind of innovative financing is a strategic opportunity for Indonesia. Indonesia has the potential to gain hundreds of millions of dollars through on mitigation and on adaptation. Indonesia is already developing a strategic program in its National Climate Change Action Plan and the Development Planning Response to Climate Change (both from December 2007). Indonesia’s forestry and energy sector choices could lead yield development benefits in terms of new private sector investments, greater energy efficiency and security, and new revenue sources from carbon markets – as well as quality of life benefits, such as cleaner air, reduced congestion, and greater efficiency.

The public and private sector are also responding. More and more awareness campaigns with the word “green” in the title are taking place. More and more recyclable, eco-friendly products can now be found on the market. The sight of gas-masked cyclists peddling their way to work remind everyone of the urgency of these issues.

Now the time has come for the World Bank to complement the private and public actions of developing countries, with an overall strategy that helps ensure sustainability in the countries most vulnerable to variations and change in climate. Most countries in the East Asia, Pacific and African regions are at risk in terms of suffering extended droughts, more severe floods, greater storms, rising sea-levels, and adverse effects to their agricultural output.

Developing nations have the challenge of continuing to grow and relieve poverty, while also adapting to climate change. What makes this all the more challenging of course is that development in the age of climate change is largely a blank canvas with a few outlines penciled in. One of the more prominent outlines is the Clean Energy Investment Framework (CEIF), which addresses ways to increase access to energy (particularly in Sub-Saharan Africa) and accelerate the transition to a low carbon economy. In an attempt to create a more comprehensive strategy, the World Bank is now in the early stages of developing a Strategic Framework on Climate Change and Development (SFCCD).

“Eventually, this framework will guide WB Group global efforts, as well as country operations in relation to climate change and development, including policy dialogue, lending , analytical work ,” said Dr. Kulsum Ahmed, Lead Environmental Specialist at the Environment Department of the World Bank Headquarters.

To gain feedback and help shape the strategic framework, the World Bank has drafted a Concept and Issues Paper entitled “Towards a Strategic Framework on Climate Change and Development (SFCCD)” which is now the subject of open global consultations – i.e. stakeholders from all over the world are invited to scrutinize the draft paper and comment on how the World Bank should address climate change within the context of international development. The initial phase of these consultations will last until June 30, 2008 and take on two different forms:

• Direct consultations – select groups of stakeholders representing government, civil society and mass media will be invited to take part in face-to-face interviews or discussion forums.
• Online consultations – the SFCCD draft paper can be downloaded from all World Bank website: www.worldbank.org/climateconsult (currently available in 6 languages), while interested parties can also fill out an on-line questionnaire

A final draft paper will then be circulated for further consultations in the summer and finalized and discussed by the Bank’s shareholders in October 2008. However, the SFCCD will continue to be informed during implementation through consultations and monitoring and evolve based on this feedback and learning, as well as new developments, over the coming months and years.