Financial Flows for Environment: World Bank, UNDP, UNEP CONCESSIONAL FINANCE AND GLOBAL PARTNERSHIPS VICE PRESIDENCY THE WORLD BANK GROUP

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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Financial Flows for Environment: World Bank, UNDP, UNEP Uwe Steckhan August 2009 53890 CONCESSIONAL FINANCE AND GLOBAL PARTNERSHIPS VICE PRESIDENCY THE WORLD BANK GROUP

Abstract While there is a common understanding of the urgent need to support the environment, there is little analysis of the financial flows directed to do so. This note attempts to provide an overview of the development financial flows for the environment through the three main implementing agencies of the Global Environment Facility (GEF), the World Bank, the United Nations Development Programme (UNDP), and the United Nations Environment Programme (UNEP). The GEF is a major source of grant funding for the environment, with annual flows averaging about US$658 million for its implementing agencies. The World Bank adds additionally about US$2 billion annually for the environment through its lending operations. Flows for the environment through trust funds analyzed in this note average US$244 million annually, and are in a similar order of magnitude than the flows through the UNDP and the UNEP. Finally, this note presents details on the thematic and regional focus areas of these channels and draws out trends in the development of the financial flows through these. Acknowledgements This note was prepared by Uwe Steckhan (CFPTP) with guidance from Rocio Castro (CFPVP). Input was provided from Buenaflor Cabanela (CFPTP), Zhimei Xu (CFPTP), Fernando Machado (CFPMI), Eri Tsutsui (ENV), Louise ShawBerry (ENVGC). Comments and feedback were received from James Warren Evans (ENV), Kulsum Ahmed (ENV), Yewande Awe (ENV), Steve Gorman (ENVGC), Siv Tokle (ENVGC), Priya Basu (CFPMI), Pamela Crivelli (CFPMI), Jonathan Caldicott (CFPMI), Lesley Wilson (CFPMI), Abebe Adugna (CFPIR), Kjell Nordlander (CFPTP), Brian Hammond (Consultant).

Abbreviations and Acronyms AFR CFPIR CFPMI CFPTO CFPTP CFPVP DAC EAP ECA ENRM ENV ENVGC FY GEF GEFIA IBRD IDA LAC MNA ODA OECD OPCS OSG RETF SAR STAP UNDP UNEP SubSaharan Africa IDA Resource Mobilization Multilateral Trustee and Innovative Financing Global Partnership & Trust Fund Operations Global Partnership & Trust Fund Policy Concessional Finance and Global Partnerships Vice Presidency Development Assistance Committee East Asia and Pacific Europe and Central Asia Environment and Natural Resources Management Environment Department GEF Coordination Team Fiscal Year Global Environment Facility GEF IBRD as Implementing Agency International Bank for Reconstruction and Development International Development Association Latin America and Caribbean Middle East and North Africa Official Development Assistance Organisation for Economic Cooperation and Development Operations Policy & Country Services Office of the Secretary General Recipient Executed Trust Funds South Asia Region Scientific and Technical Advisory Panel United Nations Development Programme United Nations Environment Programme

F F E W B UNDP UNEP T C E S... A G E F... B W B... B W B L C E... B W B L C E R... B W B L C E S T... B W B R E T F G D E... B W B RETF G D E C B E... B W B RETF G D E R... B W B RETF G D E S T... C D UNDP... UNEP... E C R... A... I A M... II D T...

F F GEF C CEO N F D B I A... F GEF T C B I A... F W B ENRM L C B E... F W B IBRD IDA ENRM L R B... F W B IBRD IDA ENRM L S S T... F R E T F D E N R M T... F RETF ENRM D B C B E... F RETF ENRM D R B... F RETF ENRM D S S T... F UNDP E S E... F UNEP S I... Tables T C GEF W B... T GEF C CEO N F D B I A... T GEF T C B I A... T W B ENRM L C B E L P... T W B ENRM L R B IBRD... T W B ENRM L R B IDA... T W B ENRM L S S T IBRD... T W B ENRM L S S T IDA... T R E T F D... T N RETF RETF G... T RETF ENRM D B C B E... T RETF ENRM D R B... T RETF ENRM D S S T... T UNDP T I R G O C... T UNDP E S E... T UNEP S I...

E S 1. T 1 W B U N D P UNDP U N E P UNEP G E F GEF A, OECD DAC. 2 2. T B N 3. T W B D FY W B US I FY US O FY IBRD US B FY T E A P L A C T IBRD W R M P M E H C C FY IDA US M S A I W R M FY FY S 4. I W B RETF N GEF W B GEFIA US G GEFIA 1 A W B E N R M B C C E P I L A M P M E H W R M O E N R M. 2 S T A A E A.

W B RETF RETF US 3. 5. T RETF IBRD E A P S A S S A M E N A T P M E H E P I 6. F UNDP UNDP US CY GEF W GEF US UNDP GEF UNDP. UNDP B W B UNDP 7. F UNEP UNEP US CY O GEF UNEP US US FY GEF UNEP 8. I GEF UNDP UNEP W B W US W B GEF US I GEF IDA US 3 RETF.

A. G E F 1. T GEF. 4 T GEF B C C I W L D O L P O P S W B UNDP UNEP GEF GEF D GEF GEF J J FY FY FY FY 2. T GEF C GEF CEO. 5 T W B T GEF CEO P F GEF C CEO N F D B I A Source: CFPMI; includes projects, fees and project preparation activities but does not include cancellations 3. F GEF C GEF A FY N GEF W B US FY US FY UNDP US FY 4 S GEF A GEF 5 S GEF GEF P C GEF C M

4. F GEF T T FY US FY FY T W B UNDP UNEP W B US FY T UNDP UNEP FY 6 F GEF T C B I A Source: CFPMI; reflects initial Trustee commitments less cancellations and unused amounts from financially closed projects; includes stand alone projects, projects attached to Programmatic Initiatives, fees and project preparation activities; does not include project and fee amounts pending Agency approval 5. T GEF 6 GEF GEF RETF.

B. W B 6. T W B GEF. 7 B W B L C E 7. W B. 8 P. 9 W B E N R M ENRM T F W B ENRM 10 F W B ENRM L C B E Source: World Bank Project Portfolio Database; includes all Environment Projects with at least one ENRM subtheme; data does not include GEF and Montreal Protocol Projects 7 S W B GEF O O LPMVO 8 T B. 9 W B T E M P S G R L F P S D T I S P R M S D G I H D U D R D E N R M. 10 W B RETF.

8. O B FY, US FY O, ENRM US FY O ENRM B B B ERNM O, ENRM ENRM US. R ENRM IBRD C IDA B W B L C E R 9. A IBRD ENRM L A C LAC E A P EAP E C A ECA F IDA S S A AFR S A SAR EAP M E N A MNA F W B IBRD IDA ENRM L R B Source: World Bank Project Portfolio Database B W B L C E S T 10. F W B ENRM T ENRM B C C E

P I L A M P M E H W R M O E N R M A ENRM F W B IBRD IDA ENRM L S S T Source: World Bank Project Portfolio Database 11. C ENRM IBRD IDA F IBRD IDA A W R M P M E H ENRM O IBRD IDA B IBRD IDA N C C IBRD FY F IDA W R M FY FY. B W B R E T F G D E 12. B W B W B GEF GEFIA GEF F W B ENRM T W B GEF GEFIA W B ENRM US GEFIA

T C GEF W B FY04 FY05 FY06 FY07 FY08 GEFIA Grant Amount (USD millions) 217.6 245.6 324.6 238.9 280.0 # of GEFIA Projects 37 43 41 31 35 S W B P P D G E P M S P 13. T GEFIA W B RETF A W B C GEFIA GEF T W B RETF RETF W B ENRM F R E T F D E N R M T Source: CFPTO Trust Fund Data Analysis Group 14. RETF FY RETF US US FY F H RETF RETF ENRM FY FY D GEFIA RETF ENRM 15. O RETF ENRM RETF FY T ENRM RETF FY US I FY US

B W B RETF G D E C B E 16. T F IBRD A C IBRD ENRM T IDA 17. A W B O W B G IBRD N B I GEFIA T AFR MNA W R M E P I B F RETF ENRM D B C B E Source: CFPTO Trust Fund Data Analysis Group B W B RETF G D E R 18. O RETF ENRM EAP F C A AFR LCR AFR LCR ECA T MNA SAR MNA AFR SAR

F RETF ENRM D R B Source: CFPTO Trust Fund Data Analysis Group B W B RETF G D E S T 19. B RETF ENRM F P M E H E P I B C C W R M L A M O F RETF ENRM D S S T Source: CFPTO Trust Fund Data Analysis Group

20. T B A E P I I W R M B S P M E H B 21. T UNDP UNEP, GEF W B, D GEF

C. UNDP 22. A W B UNDP GEF GEF GEF C FY T UNDP. UNDP D G P R A MDG R HIV AIDS C P R E E S D UNDP 11 US F F UNDP E S E Source: OSG/UNDP; UNDP Annual Report 23. F UNDP E E S D T UNDP US CY 24. R GEF UNDP UNDP S G P GEF. GEF I 11 UNDP UNDP A R UNDP W B.

25. T UNDP GEF T F UNDP US CY. 12 A GEF UNDP 26. UNDP C S B F S S D A S E S W G O P O P S L M D 27. T W B ENRM N B C S B UNDP W B W B UNDP US US W B W B 12 F UNDP A

D. UNEP 28. UNEP GEF UNEP GEF GEF GEF. UNEP S T A P STAP F UNEP S I Source: Global Policy Forum 29. F UNEP A F UNEP US CY 13 T F UNEP I GEF UNEP GEF UNEP A GEF UNEP UNEP 13 UNEP G P F UNEP W B UNDP.

E. C R 30. A N W B D IBRD RETF B C F 31. M P M E H W R M E P I H C C FY IBRD. I IDA W R M 32. W B, US, B UNDP UNEP US B B 33. T GEF UNDP UNEP W B W GEF US W B GEF I GEF IDA US 34. I GEF, 14 15. 14 E T A A E A T Y P ODA OECD DAC. 15 E C I F A F C C F W B T F I W B.

A I. A M This analysis uses different data sources due to limitations of data availability for the different agencies. The analysis is based on commitment data for World Bank lending and the GEFIA, disbursement data for trust funds, and financial statement expenditure / income data for UNDP and UNEP. For this reason, data is not always comparable between the implementing agencies. Where available, data for the last five fiscal years (for Bank channels) or calendar years has been taken into account. The specific data sources are listed and limitations of the data and findings are pointed out accordingly. A regional breakdown has been provided where available and if possible also a distinction between aid to IBRD and IDA countries has been made. For the purpose of this analysis, environmental flows have been classified according to each agency s definition. For the World Bank lending and trust fund data all financial flows marked with the Environment and Natural Resources Management (ENRM) theme are considered environment related for this analysis. This theme comprises seven subthemes, which have been broken out where possible to identify focus areas of the different channels: B C C E P I L A M P M E H W R M O E N R M These subthemes include following activities 16 : B E F W 16 S W B OPCS

C C E P I L A M P M E H

W R M

O E N R M all other environmental activities that do not fall under other themes

II. D T T C GEF W B GEFIA G A USD GEFIA P FY FY FY FY FY S W B P P D G E P M S P T GEF C CEO N F D B I A USD FY FY FY FY FY ADB A DB EBRD FAO IADB IBRD IFAD UNDP UNEP UNIDO TOTAL S W B CFPMI T GEF T C B I A

USD FY FY FY FY FY ADB A DB EBRD FAO IADB IBRD IFAD UNDP UNEP UNIDO TOTAL S W B CFPMI T P A I T W B ENRM L C B E L P USD FY FY FY FY FY IBRD C IDA B IDA B TOTAL ENRM L ENRM L P TOTAL BANK L BANK L P S W B P P D E P ENRM GEF M P P T W B ENRM L R B IBRD

USD FY FY FY FY FY AFR EAP C ECA LCR MNA SAR TOTAL S W B P P D T W B ENRM L R B IDA USD FY FY FY FY FY AFR EAP ECA LCR MNA SAR TOTAL S W B P P D T W B ENRM L S S T IBRD USD FY FY FY FY FY B C C E P I L A M P M E H W R M O E N R M TOTAL

S W B P P D T W B ENRM L S S T IDA USD FY FY FY FY FY B C C E P I L A M P M E H W R M O E N R M TOTAL S W B P P D T R E T F D USD FY FY FY FY FY GEFIA ENRM T ENRM T GEFIA N ENRM T TOTAL S W B CFPTO T F D A G T N RETF RETF G RETF ENRM G TOTAL RETF ENRM G RETF FY FY FY FY FY S W B CFPTO T F D A G

T RETF ENRM D B C B E USD FY FY FY FY FY IBRD C IDA BLEND G R TOTAL S W B CFPTO T F D A G T RETF ENRM D R B USD FY FY FY FY FY AFR EAP C ECA LCR MNA SAR O TOTAL S W B CFPTO T F D A G T RETF ENRM D S S T USD FY FY FY FY FY B C C E P I L A M P M E H W R M O E N R M TOTAL S W B CFPTO T F D A G

T UNDP T I R G O C USD CY CY CY CY R C O C T F A GEF GEF T F TOTAL S UNDP C U T D O F A B M UNDP S A UNDP E B D T UNDP E S E USD CY CY CY CY E E C R HIV AIDS P MDG D TOTAL S OSG UNDP UNDP A R T UNEP S I

USD CY CY CY CY E F T F C C UN R B TOTAL S G P F