| OVERVIEW SUMMARY OF ENERGY LENDING BY INVESTMENT TYPE ANALYTICAL AND ADVISORY ACTIVITIES OVERVIEW Given that 85% of GHG emissions in the MENA region come from energy production, transformation and use, the energy sector has a crucial role to play in mitigation. The sector is characterized by the predominance of oil in the fuel mix, a limited development of renewables, and a largely inefficient pattern of energy use. In tackling the challenges in the energy sector, the World Bank’s overall energy strategy supports actions with positive implications for GHG emission reduction such as promoting energy efficiency and renewable energy technologies and low-carbon development. Energy efficiency & renewable energy resources: Promotion of the efficient and sustainable use of energy resources, among other things, through the introduction of price incentives; Improvement in energy efficiency and reduction in energy intensity through implementation of measures that: facilitate the penetration of energy efficient equipment and appliances; establish energy services companies; develop appropriate financing mechanisms; introduce tighter building codes; better manage electricity loads; and reduce electricity losses and gas flaring; Development of renewable energy resources, and promotion, through DPL lending, of policy reforms aimed at increasing efficiency and raising the share of renewables in the energy mix. Successful experiences of this approach are the recently approved $100 million energy sector DPL in Morocco and the development of the first integrated solar thermal plants in Egypt and Morocco.
Low-carbon development: Promoting transition to a low-carbon development in the MENA region calls for expanding and scaling up actions by renewing efforts on promoting reform, and supporting low-carbon energy investments through suitable combinations of IBRD lending, concessional funds and carbon finance. To add a new momentum to its action, the Bank will: promote the dialogue on energy pricing, through advocacy based on analytical work; scale-up investments in low-carbon energy generation in priority sectors; support outreach actions to raise awareness in all sectors and among the public.
The World Bank Group Energy Lending by Investment Type in the MENA Region in FY03-FY08. Download table:Energy Lending Summary (table) | Breakdown of WBG Energy Lending in the MENA Region Investment Type, FY03-08(US$ millions) | | Investment Type | FY03 | FY04 | FY05 | FY06 | FY07 | FY08 | Total
(FY03-08) | Percent | | Access | | | | 45.54 | | | 45.54 | 4% | | Blended Low Carbon & Access | | | 1 | 11.32 | | | 12.32 | 1% | | low carbon | | 0.75 | 8.5 | | 121.2 | 49.8 | 180.25 | 17% | | Oil, Gas and Coal | 50 | 20 | 51 | 70 | 47.05 | 85 | 323.05 | 30% | | Other Energy | | | | | 43.1 | 60 | 103.1 | 10% | | Thermal Generation | | | | 259.6 | 106.64 | | 366.24 | 34% | | Transmission and Distribution | | | | | 49.8 | | 49.8 | 5% | | Grand Total | 50 | 20.75 | 60.5 | 386.46 | 367.79 | 194.8 | 1080.3 | 100% | | | | Definitions Based on the Clean Energy Investment Framework: | | Access Projects: projects aimed at increasing access to electricity services. For IDA countries all generation, transmission and distribution projects are considered as “Access” as they all are needed for increased electrification. For IBRD countries only projects that are specifically aimed at increasing electricity access, primarily rural electrification projects, were included. | | Blended Low Carbon/Access projects: access projects that use low carbon energy options (such as renewables) to increase access to electricity. | | Low Carbon Projects: renewable energy projects (including all sizes of hydropower), energy efficiency, power plant rehabilitation; district heating, biomass waste fueled energy; gas flaring reduction; high efficiency coal fired plants (super-critical and ultra-supercritical) thermal plants. Beginning in FY05, IFC undertook a review of its investment portfolio at the end of each fiscal year in order to identify components appropriately counted as coming within the WBG definition of "energy efficiency and new renewables". Prior to that time only projects with energy efficiency or renewable energy investments as their primary purpose were counted. | | Transmission & Distribution, Oil & Gas, and Other Thermal Generation. Conventional projects that meet local environmental standards but do not specifically target lower carbon or energy efficiency solutions. Generation projects that are considered as “Fuel switching” will be categorized as lower carbon projects only if they are not commercially least cost and implemented as a result of a buy-down in costs or because of a regulatory imposition. | | Other Energy: Includes projects where energy policy support is provided such as Energy Sector Development Policy Loans or other WBG interventions where the form of energy cannot be clearly distinguished, or where there are multiple energy sub-sectors supported within a single project which could not be prorated. Energy storage projects are included as well. |
ANALYTICAL AND ADVISORY SERVICES Mitigation Study on Energy Efficiency in MENA Countries – The proposed study will bring together the lessons of international experience on options, constraints, and opportunities for energy efficiency and their applicability in the context of MENA countries’ political economy; and develop the analytical foundation and the paradigm for the Bank’s energy efficiency lending and advisory work in the MENA region. The study will aim to develop consistency in the Bank’s advice across MENA countries on such key issues as energy pricing, subsidies, fiscal, and other incentives. Opportunities for Mitigating the Environmental Impact of Energy Use in the Middle East and North Africa Region -- As a part of the study on Energy Efficiency in MENA, this project aims to describe and quantify the links between energy efficiency and GHG emissions as well as urban air pollution in MENA. More specifically, the objectives of the report are to: create scenarios of GHG emissions and urban air pollutants such as particulate matter (PM) under different assumptions of energy efficiency improvements; identify the country/sectors where energy efficiency improvements are likely to have the greatest impact upon GHG and PM emissions; benchmark MENA against other regions in terms of energy intensity and GHG emissions. |
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