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Behind-the-Scenes Debate on Clean Tech Fund Reveals Deep Divisions, Shifting Attitudes

As the World Bank moves closer to launching the Clean Technology Fund (CTF), serious questions remain over how the money will be spent. The political headwinds in Washington have shifted since June, when the Congress began to consider contributing to the fund. While the result is still uncertain, it appears increasingly likely that the CTF will ultimately focus on truly clean technology while generally avoiding investments in coal and other high-carbon fossil fuels.

U.S. Financial Crisis Will Mean Slower Growth, Rising Inequality in Developing World (Development Impacts of Financial Crisis)

For many developing countries, the U.S. credit crisis will mean slower growth and rising inequality. The effects will be protracted, and not all will show up at the same time. And the nature and degree of impact will vary widely. Some countries, notably those with extensive foreign exchange reserves and strong fiscal positions, will be much better able to cope than others. But overall the crisis is very bad news for developing countries and especially for the poor.

Tiger, Tiger Burning Bright: The World Bank Undermines Own Conservation Efforts With Fossil Fuel Projects

This is a joint posting with Vijaya Ramachandran
The World Bank Group's board appears to be operating under a severe case of cognitive dissonance, supporting efforts to save tigers - threatened in India and Bangladesh by habitat loss due to climate change - while helping build coal-fired power plants that will only speed up this process.
Back in June the Bank launched a campaign to help governments develop and better manage forests inhabited by endangered tigers, including in the Sunderbans. This massive mangrove forest spans the India-Bangladesh border and is home to the Bengal tiger. While the Bank has a less-than-stellar conservation track record in Sunderbans, more important is the fact that this impoverished World Heritage site would be one of the hardest hit by climate change, whether from rising sea levels or the disappearance of the glacier that feeds the Ganges river.
But the Bank's commitment to poverty reduction and biodiversity stands in stark contrast to its bread-and-butter financing choices. As the Bank planned its save-the-tiger campaign, the International Finance Corporation (IFC), the Bank's private sector arm, was putting together a deal to finance $450 million of the misguided $4+ billion Tata Mundra Ultra Mega coal-fired plant in India. Financing 10% of the cost of a plant being built by India's largest company will help propel India's power sector emissions to third highest in the world within a few years, behind China and the U.S. Is this a smart use of scarce international public resources?

Gore Urges End to U.S. Fossil Fuel Power in Ten Years--Here's How to Get America's Working Families' Support

In a landmark speech last week that deserved more attention than it received from the mainstream media, former U.S. vice president and Nobel Prize laureate Al Gore challenged the United States to produce 100% of its electricity from carbon-free renewable energy within 10 years. To help low-income and working families cope with the cost of the transition, Gore suggested cutting payroll taxes and making up the difference with CO2 taxes.

Another Banner Year for IFC -- NOW Is The Time for A Big Push into Renewable Energy

This is a joint posting with David Wheeler
The International Finance Corporation, the private sector investment arm of the World Bank, is set to have yet another banner year with profits in the range of $2 billion. As the IFC's equity stakes in services, telecommunications and particularly in oil and gas have grown, so have its profits. In FY07, IFC invested more than $8 billion of its own money and mobilized nearly $4 billion more. In Sub-Saharan Africa, it invested about $1.4 billion, doubling its investments from the previous year. In FY08, these numbers look to be even larger. If the IFC continues on its current path, in five years its portfolio will be larger than that of the World Bank itself.

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