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World Bank shares knowledge on finance instruments for addressing climate change in Albania

September 6, 2011

TIRANA, September 6, 2011— Today the World Bank Office in Tirana organized a workshop to introduce various new instruments of climate financing. In this workshop participated experts from public and private sectors who are engaged in climate change issues, environment, agriculture, and energy sectors. The aim of the workshop was to provide an overview of the demand and supply of climate finance instruments and to introduce examples and tools for practice for mitigation and adaptation investments.  The participants were also introduced to the Climate Finance Options knowledge platform operated jointly by the World Bank and UNDP (http://www.climatefinanceoptions.org/).

The World Bank has recently stepped up its efforts to incorporate climate change concerns into developments projects and programs.  In 2008 the World Bank adopted its strategic framework on development and climate change which is driven by realization that climate changes if not managed well may reverse development gains.

Climate change impacts should be timely managed, and incorporated in development planning, budgeting, and decision-making, including technological development, said Kseniya Lvovsky, Country Manager of the World Bank Office in Albania. Climate finance is a tool to guide the financial flows towards development projects with lower emissions and greater resilience to climate risks”.

The World Bank has compiled various cost estimates which show that incorporating climate change concerns may involve substantial additional costs. These costs relate both to development with low carbon emissions and adaptation to the impacts of climate change like in water resources management.  The Cancun Climate Conference in 2010 agreed that by 2020 developing countries will need about 100 billion dollars per year to help make development climate resilient and reduce carbon emissions.

The World Bank has been working very actively on trying to understand how these additional resources can be mobilized for developing countries both for mitigation and adaptation, what instruments can be used, how to use available climate change resources more effectively to leverage more private investments and public resources and how to package these resources in the most effective way so they both achieve climate objectives and help countries continue their economic growth” said Ari Juhani Huhtala, World Bank expert on climate change issues.  

During the workshop, the World Bank expert shared the experience accumulated by the Bank over the past years, analyzing instruments and designing instruments and experiences how different countries use the variety of instruments for their programs. What would be more useful in the specific circumstances of Albania? What should be areas of priority whether financing instruments for adaptation, addressing floods, droughts, or whether there is a need for additional instruments to improve energy efficiency, or to develop new sources of renewable energy? These were some of the questions that were discussed during the workshop, focusing on what sources of funding and what models of using instruments could be relevant for Albania, both in public and private sector.