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The case for low carbon
                           resilient infrastructure
                           in the Latin America
                           region


Climate Finance for Sustainable Infrastructure Development

                                         February 22, 2012
                Sustainable Infrastructure Finance Summit
Projected sea level rise: from bad to worse
                                                                            Vermeer and Rahmstorf, 2009
                                                Projections
                                              (w/ proxy ice sheet
                                                   dynamics)                         Pfeffer et al., 2008


                                  1m
       ------------------------------------------------------------------                Rahmstorf, 2007


            Substantial implications for coastal cities and coastal
            zones in general. Contingent planning is urgent, needs
            to start now.

                        Observations
                                                              Today
                                                                                                      ?

Source: Bindschadler, 2011
Projected concentration of rainfall, recurrent
flooding… and drought




Source: Vergara & Scholz, 2011
Anticipated coastal zone flooding: Guyana



 67% of the GDP,
 75% of population
 70% of agriculture
 will be displaced
 with a 1m increase
 in sea level rise
LAC GHG Emissions                                                                                         …a “business as usual” path
                                                                                                          would increase its global
                                                                                                          footprint.
While emissions are modest                                                       12000                                                                                                 16
in a global context…
                                                                                                                                                                                       14
30




                                                       Total Emissions, million metric tons CO2e
                                                                                 10000

                                                                                                                                                                                       12
25




                                                                                                                                                                                            metric tons CO2e per capita
                         2000                                                                      8000
                                                                                                                                                                                       10
20
                         2005

                         2007                                                                      6000                                                                                8
15

                                                                                                                                                                                       6
10                                                                                                 4000

                                                                                                                                 Total Emissions, million metric tons                  4
 5                                                                                                                               CO2e
                                                                                                   2000                          metric tons CO2e per capita
                                                                                                                                                                                       2
 0
     World    LAC     World     LAC     World   LAC
                                                                                                      0   2005                                                                         0

                                                                                                                 2010

                                                                                                                        2020

                                                                                                                               2030

                                                                                                                                      2040

                                                                                                                                             2050

                                                                                                                                                    2060

                                                                                                                                                           2070

                                                                                                                                                                  2080

                                                                                                                                                                         2090

                                                                                                                                                                                2100
     Land use change Agriculture (CH4   Energy (CO2)
     & forestry (CO2)     & N2O)




Source: IIASA, 2011 and staff estimates
Dynamics of Carbon Intensity, 1990-2008
                                                  $16,000
                         GDP pc, PPP (constant 2005 int'l $)


                                                    $14,000
                                                                            Argentina
                                                                       Mexico

                                                    $12,000
                                                               Chile                          Venezuela



                                                    $10,000
                                                 Brazil

             0               0.1Colombia 0.2                   0.3            0.4       0.5           0.6           0.7
                                                     $8,000
                                   Peru               Ecuador
                                                                                                 kg CO2 per $1 GDP (PPP)
                                                     $6,000


                                Guatemala
                                                     $4,000
                                                                        Bolivia



                                                     $2,000
Source: Generated by INE/CCS with data obtained from the
Millennium Development Goals Indicators (UN) and the World
Bank, 2012.
                                                         $-
LAC BAU Emissions Trajectory and Various Sector
Emissions Wedges, 2010-2050



                                   9,000.00                                                                                            12
                                                                                       Zero land-use emissions post 2020
                                                                                                                                       Transportation
                                   8,000.00                                                                                            (1.25 GtCO2e)
                                                                                                                                       10
                                   7,000.00                                                                      0.79 GtCO2e
     Million Metric Tons of CO2e




                                                     per capita (RHA)




                                                                                                                                            Metric Tons of CO2e per capita
                                                                        Historic and BAU
                                   6,000.00                                                       No new FF emissions                  8
                                                                                                  post 2030     2 GtCO2e
                                   5,000.00
                                                                                                                  2.5 GtCO2e           6
                                   4,000.00
                                                                                 Zero FF emissions by 2050
                                   3,000.00                                                                                            4
                                                                                                                        2.5 GtCO2e
                                                                                           Zero agriculture and waste
                                   2,000.00                                                emissions by 2050
                                                                                                                                       2
                                   1,000.00                                                                                             Power
                                               LAC Target 2050: 2 metric tons CO2e per capita (RHA)                                     (1.7 GtCO2e)
                                       0.00                                                                                            0
                                              1990      1995   2000     2005      2010     2020   2030   2040                   2050
                                                          LAC emissions (historic) left-hand axis
                                                          LAC Emissions (BAU) left-hand axis
                                                          LAC Emissions ZNDD 2020 (Left-hand Axis)
                                                          ZNDD 2020 + no new FF emissions after 2030
                                                          ZNDD 2020 + 0 FF emissions in 2050 (Left -hand Axis)




                                                                                                                                                                             -8-
Low carbon, resilient infrastructure
 Reduces or eliminates carbon footprint
 Reduces resource consumption
 Reduces land degradation and optimizes recovery of degraded
  lands
 Shifts economic activity to low carbon path
 Breaks with resource intensive growth model of the past

 Minimizes exposure to anticipated unidirectional climate
  impacts
 Conveys resilience to weather extremes
 Strengthen ability of economic activities to surmount climate
  extremes




                                                                  -9-
A Streamlined Climate Strategy

 Three “foundation” building blocks.
 IDB will support efforts to:

   Adapt to the consequences of climate
    destabilization
   Promote improvements in quality of life
    at low-carbon expenditures
   Link knowledge (science) to decision-
    making
IDB’s Adaptation agenda
Engage immediately in a process of ambitious investments to
address consequences of climate change in LAC, e.g. programs
 to reduce impacts of cc in water supply/quality (Colombia-
  Mountain Wetlands; Mexico-Grijalva)
 to reduce vulnerability to climate impacts in coastal & marine
  ecosystems (Peru-Fisheries)
 to strengthen the resilience of forest and other fragile
  terrestrial biomes to climate impacts (Brazil-Mata Atlantica;
  Costa Rica-Biodiversity)
 to address the impacts of climate change in agriculture
IDB’s Mitigation agenda-
Promote
low-carbon power generation
adoption of low carbon transport
 systems
avoided deforestation, reforestation
 and low carbon agricultural
 practices
IDB’s policy (GCI-9), strategy, action plan and
dedicated resources to the issue show
commitment to climate agenda in the region.
 Engage in international funding sources for the
  region leveraged by own resources
    Green Climate Fund, Fast-track, Bilateral funding,
     Climate Investment Funds
 Advocate for long-term planning, domestic financing
  and investment to address adaptation
 Support efforts to reduce carbon signal of regional
  economies
 Expand knowledge generation and management to
  link science and decision making
Climate Finance for Sustainable Infrastructure Development

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Climate Finance for Sustainable Infrastructure Development

  • 1. The case for low carbon resilient infrastructure in the Latin America region Climate Finance for Sustainable Infrastructure Development February 22, 2012 Sustainable Infrastructure Finance Summit
  • 2. Projected sea level rise: from bad to worse Vermeer and Rahmstorf, 2009 Projections (w/ proxy ice sheet dynamics) Pfeffer et al., 2008 1m ------------------------------------------------------------------ Rahmstorf, 2007 Substantial implications for coastal cities and coastal zones in general. Contingent planning is urgent, needs to start now. Observations Today ? Source: Bindschadler, 2011
  • 3. Projected concentration of rainfall, recurrent flooding… and drought Source: Vergara & Scholz, 2011
  • 4. Anticipated coastal zone flooding: Guyana 67% of the GDP, 75% of population 70% of agriculture will be displaced with a 1m increase in sea level rise
  • 5. LAC GHG Emissions …a “business as usual” path would increase its global footprint. While emissions are modest 12000 16 in a global context… 14 30 Total Emissions, million metric tons CO2e 10000 12 25 metric tons CO2e per capita 2000 8000 10 20 2005 2007 6000 8 15 6 10 4000 Total Emissions, million metric tons 4 5 CO2e 2000 metric tons CO2e per capita 2 0 World LAC World LAC World LAC 0 2005 0 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 Land use change Agriculture (CH4 Energy (CO2) & forestry (CO2) & N2O) Source: IIASA, 2011 and staff estimates
  • 6. Dynamics of Carbon Intensity, 1990-2008 $16,000 GDP pc, PPP (constant 2005 int'l $) $14,000 Argentina Mexico $12,000 Chile Venezuela $10,000 Brazil 0 0.1Colombia 0.2 0.3 0.4 0.5 0.6 0.7 $8,000 Peru Ecuador kg CO2 per $1 GDP (PPP) $6,000 Guatemala $4,000 Bolivia $2,000 Source: Generated by INE/CCS with data obtained from the Millennium Development Goals Indicators (UN) and the World Bank, 2012. $-
  • 7. LAC BAU Emissions Trajectory and Various Sector Emissions Wedges, 2010-2050 9,000.00 12 Zero land-use emissions post 2020 Transportation 8,000.00 (1.25 GtCO2e) 10 7,000.00 0.79 GtCO2e Million Metric Tons of CO2e per capita (RHA) Metric Tons of CO2e per capita Historic and BAU 6,000.00 No new FF emissions 8 post 2030 2 GtCO2e 5,000.00 2.5 GtCO2e 6 4,000.00 Zero FF emissions by 2050 3,000.00 4 2.5 GtCO2e Zero agriculture and waste 2,000.00 emissions by 2050 2 1,000.00 Power LAC Target 2050: 2 metric tons CO2e per capita (RHA) (1.7 GtCO2e) 0.00 0 1990 1995 2000 2005 2010 2020 2030 2040 2050 LAC emissions (historic) left-hand axis LAC Emissions (BAU) left-hand axis LAC Emissions ZNDD 2020 (Left-hand Axis) ZNDD 2020 + no new FF emissions after 2030 ZNDD 2020 + 0 FF emissions in 2050 (Left -hand Axis) -8-
  • 8. Low carbon, resilient infrastructure  Reduces or eliminates carbon footprint  Reduces resource consumption  Reduces land degradation and optimizes recovery of degraded lands  Shifts economic activity to low carbon path  Breaks with resource intensive growth model of the past  Minimizes exposure to anticipated unidirectional climate impacts  Conveys resilience to weather extremes  Strengthen ability of economic activities to surmount climate extremes -9-
  • 9. A Streamlined Climate Strategy Three “foundation” building blocks. IDB will support efforts to:  Adapt to the consequences of climate destabilization  Promote improvements in quality of life at low-carbon expenditures  Link knowledge (science) to decision- making
  • 10. IDB’s Adaptation agenda Engage immediately in a process of ambitious investments to address consequences of climate change in LAC, e.g. programs  to reduce impacts of cc in water supply/quality (Colombia- Mountain Wetlands; Mexico-Grijalva)  to reduce vulnerability to climate impacts in coastal & marine ecosystems (Peru-Fisheries)  to strengthen the resilience of forest and other fragile terrestrial biomes to climate impacts (Brazil-Mata Atlantica; Costa Rica-Biodiversity)  to address the impacts of climate change in agriculture
  • 11. IDB’s Mitigation agenda- Promote low-carbon power generation adoption of low carbon transport systems avoided deforestation, reforestation and low carbon agricultural practices
  • 12. IDB’s policy (GCI-9), strategy, action plan and dedicated resources to the issue show commitment to climate agenda in the region.  Engage in international funding sources for the region leveraged by own resources  Green Climate Fund, Fast-track, Bilateral funding, Climate Investment Funds  Advocate for long-term planning, domestic financing and investment to address adaptation  Support efforts to reduce carbon signal of regional economies  Expand knowledge generation and management to link science and decision making

Editor's Notes

  1. IPCC 07 estimate was up to 60 cm of sea level rise during the century.Recently available information increases the estimate upwards to 2 m.Substantial implications for coastal cities and coastalzones in general. Contingent planning is urgent, needsto start now.The economic implications are large, the value of infrastructure already in a 1m flood zone is in 100s of billions.
  2. As we have seen, the frequency and intensity of flooding and heavy downpours is increasing.This graph is taken from the amazon dieback assessment and shows a projection made with the Earth Simulator for future concentration of rainfall in south america. Projection is for end of century under scenario A1B, for Maximum 5 day precipitation anomaly. Most areas in the sub continent with exception of Chile show a strong increase in the intensity of rainfall.The consequences are significant, flooding plains are changing and risk exposure of settlements and economic activities will increase, with costs being borne by all societies. Major costs in retrofitting of infrastructure will be required.
  3. While emissions are modest in a global context, with overall contribution at 12% of global, but with 8% of population, region is poised to increase its global footprint.
  4. The climatestrategy and the plan of actionprovide a direction for Bank’sefforts.There are threefoundation blocks:Adapt to the consequences of climate destabilizationPromote improvements in quality of life at low-carbon expendituresLink knowledge (science) to decision making
  5. We need your support to strengthen the adaptation agenda.IDB is already in the process of expanding agenda.Projects being proposed in Colombia, Mexico, Peru, Costa Rica, Brazil.But funds are required and partnerships with fast track on adaptation is necessary.
  6. Examples:Deployment of solar energy in Chile and MexicoWind energy in Mexico Promote marine energy in Chile
  7. Climate funding is changing.GCF is in the offing but in the meantime, there is a need to strengthen IDB’s links and access to fast track resources. Most of these are in Europe.We also want to expand access of LAC to CIF funds.The IDB can also play a key role in long-term planning and investment to address adaptation and mitigation issues and assist to consolidate and expand knowledge generation and management initiatives, linking science and decision making