Integrating Environment and Development: The World Bank’s Experience with Country Environmental Analysis (CEA) Presented at the GEF Sub-Regional Workshop Bali, December 2-3, 2007, by Samuel Wedderburn World Bank Group Global Environment Facility Program

What is CEA? CEA is a country level diagnostic analytical tool that helps to evaluate systematically the environmental priorities of countries, the environmental implications of key government policies, and countries’ capacity to address their environmental priorities.

Objectives of CEA It aims to integrate environmental considerations into development assistance strategies and programs, including CASs, PRSPs facilitates mainstreaming by providing information and analysis of key environment, development, and poverty links into the country policy dialogue

CEA “Building Blocks” CEA Environmental Priorities of Development Institutional Capacity Assessment Environmental Implications of Sector Policies Business Plan

Why do we need CEA? environmental analysis at the country level is essential to understand environment-development links and to help governments manage environmental problems in the context of poverty reduction and sustainable growth. CEA aims to systematize and improve the analytic basis of development assistance particularly in terms of integrating environmental issues into the Bank’s (or other agency’s) country programming and policy dialogue.

Links with Other Tools and Processes Draws on: – work on sustainability and environmental indicators – Country led analyses: NEAP, Strategic Environmental Reviews, National Strategies for Sustainable Development – Work undertaken by development partners Could be underpinning for GEF RAF prioritization

When might countries want a CEA? Is there a planning and policy process that the National/ State Government is considering that requires analytical support on the environment? Is there a change in the Government that could benefit from policy advice through CEA? Is there restructuring taking place in Environmental or other Ministries that would require institutional analyses? Is there a demand from the Environment or other Ministries for strategic environmental analysis?

Implementation of CEAs 18 pilots completed world wide – 5 in SA and MNA (Bangladesh, Pakistan, India, Tunisia, Egypt); 7 on going (Jordan, Orissa – India); 10 planned Average cost $288k; lowest $90k

Types of Results from CEAs Identification of and request for investment projects including GEF Integration of environment into CASs and PRSPs; input into country policies Improved donor coordination Preparation of strategic environmental assessments Stimulus for extensive political debate on improving public accountability with respect to environmental issues that had been traditionally neglected in the country Institutional changes Strengthening of EIA capacity Improved coordination between sectoral ministries in the implementation of a national environmental policy;

EXAMPLES OF CEAs Egypt, Tunisia and India

Egypt Objectives: – Think piece to help government address MDG7: new tools for mainstreaming environment focusing on 4 priority issues Included specific GEF relevant recommendations: – reducing methane in SWM – Protect pristine areas of the Red Sea from degradation enhancing coastal areas – GEF financing incentives for greater private sector involvement in sustainable development – Combating desertification and land degradation to improve water quality

Examples of how recommendations from the CEA is being implemented: Egypt Finding: Need to reduce burden of respiratory disease, by improving air quality. Recommendation: Reduce damage costs through readjusting pricing policies and through a set of 19 policies; establish energy policy support unit in the Ministry of State for Environment Affairs. Result: Project on natural gas; use of Clean Development Mechanism (CDM) initiated; 10 million euros of CDM credits purchased for pollution abatement.

Tunisia CEA Objectives: – to facilitate the integration of environmental issues into sectoral development strategies, which could affect the sustainability of development in particular with respect to economic growth, poverty reduction, and quality of life, and – to improve, adapt, and strengthen institutional capacity and decision-making processes in line within this integration requirement and the international economic context.

Tunisia Outcomes and Recommendations Finding: Negative ecological effects of intensive use of natural resources is the most important problem in Tunisia Recommendations: – new policies for the adoption of existing tariffs (such as on irrigation and water) – Development of economic instruments for environmental management – Supporting measures such as information systems and SEAs CEA also contributed to decision to establish Ministry of Environment and Sustainable Development

Example of how recommendations from the CEA is being implemented: Tunisia Finding: Responsibilities for swm rested with the National Environmental Protection Agency (NEPA). Recommendation: Swm functions should be decentralized; roles and responsibilities of different entities should be clarified. Result: NEPA ceded responsibility for solid waste management, and a new agency for this function was established

Example of how recommendations from the CEA is being implemented: India Finding: Growth was putting pressure on state Pollution Control Boards (PCBs). Recommendation: Capacity-strengthening plan for PCBs needed Result: Despite an overall hiring freeze for public sector employees, the government made an exception to strengthen the capacity of the PCBs.

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