Climate Change and the World Bank Group: Phase I

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C L I M AT E C H A N G E A N D T H E W O R L D B A N K G R O U P

Bank Engagement on DSM The World Bank and IFC have worked on several DSM projects, in most cases with GEF funding. Table 5.2 summarizes 12 of these.

Many of the World Bank Group’s DSM projects have attempted to estimate the CO2 reductions resulting from the project. Table 5.2 provides an indication of the range of emission reductions

Table 5.2: Utility-Based DSM Projects

World Bank Group loan/ grant amount

Project name

Country

Years

CO2 savings

Thailand Promotion of Electrical Energy Efficiency Project High-Efficiency Lighting Project Poland Efficient Lighting Project Demand-Side Management Demonstration Project Energy Services Delivery Project Energy Efficiency Project Energy Efficiency Project Demand-Side Management and Energy Efficiency Project Uruguay Energy Efficiency Project

Thailand

1993–98

$9.5 million GEF grant

27–45 million tons

Mexico

1994–97

$10 million GEF grant

763,700 tons

Poland

1994–98

$5 million GEF grant (IFC implemented )

3.62 million tons

Jamaica

1994–99

$3.8 million GEF grant

14,800-22,100 tons

Sri Lanka

1997–2002

n.a.

Brazil Croatia Vietnam

1999–2003 2003–ongoing 2003–ongoing

$13.7 million loan plus $5.9 million GEF grant (mostly for renewable energy) $11.9 million GEF grant $7 million GEF grant and $4.95 million loan $10.7 million, grant from GEF and IDA Fund

Uruguay

2004–ongoing

$6.88 million grant from GEF

n.a.

Argentina EnergyEfficiency Project

Argentina

2006–ongoing

$15.2 million GEF grant

Power Sector Development Operation

Uganda

2007–ongoing

$300 million loan ($16 million of the loan is for DSM-type investments)

5.9 million tons by 2012, 28.1 million by 2017, and 71.9 million by 2022 n.a.

Urgent Electricity Rehabilitation

Rwanda

2007–ongoing

$4.5 million GEF grant, mostly for renewable energy; the DSM component relates to studies only

1.7 million tons 960,000 tons (est.) 3.5 million tons (est.)

n.a.

Note: n.a. = Not available. a. From Implementation Completion Report reviews. b. In Thailand, the utility, EGAT, funded DSM through a special, government-authorized tariff charge during the project period. Since the project ended, EGAT began funding DSM from its regular tariff revenue and funding has decreased for the most part. Thus, the regulations support DSM but fall short of requiring it. c. In Vietnam, several laws and decrees support DSM and require the government to consider it. There appear to be no requirements for the utility to invest in DSM. d. Uruguay is evaluating several options for regulatory support of DSM as part of the project, including a system benefit charge or an obligation to include financially attractive DSM measures in utility investment plans.

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