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Environment Program: Greening Growth in Asia and the Pacific Mandaluyong City, Philippines: Asian Development Bank, 2011 Environment Program Greening Growth in Asia and the Pacific Environment Program Greening Growth in Asia and the Pacific © 2011 Asian Development Bank All rights reserved. Published 2011. Printed in the Philippines. ISBN 978-92-9092-326-8 Publication Stock No. RPS113536 Cataloging-In-Publication Data Asian Development Bank. Environment program: greening growth in Asia and the Pacific Mandaluyong City, Philippines: Asian Development Bank, 2011. 1. Environment program. 2. Asian Development Bank. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Note: In this publication, “$” refers to US dollars. All charts, figures, and tables are from the Asian Development Bank, unless otherwise stated. 6 ADB Avenue Mandaluyong City 1550 Metro Manila Philippines Tel +63 2 632 4444 Fax + 63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 [email protected] iii Contents ABBREVIATIONS x I. INTRODUCTION 1 A. Resource Endowment and Current Conditions 2 B. Emerging Environment-related Challenges 5 C. MDG 7 Performance 8 D. Toward Green Growth 9 E. ADB’s Response 10 F. Purpose and Scope of Report 11 II. ENVIRONMENTAL ASSISTANCE 12 A. Mainstreaming Environmental Considerations into Country Partnership Strategies and Sector Road Maps 13 B. Supporting Loan and Grant Projects with Environmental Sustainability as a Theme 14 1. Water Supply and Other Municipal Infrastructure and Services Sector 17 2. Energy Sector 18 3. Agriculture and Natural Resources Sector 20 4. Transport Sector 21 5. Multisector 22 C. Supporting Technical Assistance Projects with Environmental Sustainability as a Theme 23 D. Integrating Environmental Safeguards into ADB Operations 27 1. Implementing the Safeguard Policy Statement 29 2. Strengthening Country Safeguard Systems 29 E. Generating and Disseminating Knowledge 30 III. INITIATIVES AND PARTNERSHIPS 33 A. Thematic Initiatives 33 1. Clean Energy Program 33 2. Sustainable Transport Initiative 38 3. Urban Program 41 4. Climate Change Adaptation Program 43 5. Managing Land Use and Forests for Carbon Sequestration 46 6. The Poverty and Environment Program (PEP) 48 7. Water Financing Program 52 8. Energy for All Initiative 54 9. Clean Air Initiative for Asian Cities 57 iv Environment Program: Greening Growth in Asia and the Pacific B. Subregional Initiatives 59 1. The Greater Mekong Subregion Core Environment Program and Biodiversity Conservation Corridors Initiative (GMS CEP-BCCI) 59 2. The Coral Triangle Initiative on Coral Reefs, Fisheries, and Food Security 62 3. Heart of Borneo Initiative 64 4. The PRC–GEF Partnership on Land Degradation in Dryland Ecosystems 66 C. Partnerships 67 1. The Global Environment Facility (GEF) 67 2. The World Wide Fund for Nature (WWF) 68 3. International Union for the Conservation of Nature (IUCN) 69 4. United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) 69 5. United Nations Environment Programme (UNEP) 70 6. The Institute for Global Environmental Strategies (IGES) 70 7. Asian Environmental Compliance and Enforcement Network (AECEN) 70 8. The United States Environmental Protection Agency (USEPA) 71 IV. LOOKING FORWARD 72 A. Promoting Transitions to Sustainable Infrastructure 74 B. Improving Natural Resource Management and Maintaining Ecosystem Integrity 76 C. Building Environmental Institutional Capacity 77 APPENDIXES 82 1 Millennium Development Goal 7 (MDG7) 82 2 Performance of Countries in the Region in Achieving MDG 7 Targets – 2008 83 3 Loan and Grant Projects with Environmental Sustainability as a Theme (1995–2010) 85 4 Technical Assistance Projects with Environmental Sustainability as a Theme (1995–2010) 94 5 List of Environment-Related Knowledge Products (2003–2010) 117 Contents v Boxes 2.01 SRI 2477: Dry Zone Urban Water and Sanitation 17 2.02 KGZ 2556: Issyk-Kul Sustainable Development Project 18 2.03 PAK 2704: Zorlu Enerji Power Project 18 2.04 THA 7314: Bangchak Solar Project 19 2.05 PRC 2616: Tianjin Integrated Gasification Combined Cycle Power Plant Project 19 2.06 IND 2679: MFF-Sustainable Coastal Protection and Management 21 2.07 PRC 2436: Ningxia Integrated Ecosystem and Agricultural Development Project 21 2.08 PRC 2601: Lanzhou Sustainable Urban Transport Project 22 2.09 NEP 2656: Kathmandu Sustainable Urban Transport Project 22 2.10 PRC 2428: Integrated Ecosystem and Water Resources Management in the Baiyangdian Basin Project 23 2.11 TA 7575-REG: Determining the Potential for Carbon Capture and Storage in Southeast Asia 24 2.12 TA 7509-LAO: Capacity Enhancement for Coping with Climate Change 25 2.13 TA 7261–PRC: Strategy for Drought Management 25 2.14 TA 7326–SRI: Strengthening Capacity for Climate Change Adaptation 26 2.15 7262–VIE: Capacity Building for Renewable Energy Development 27 3.01 Key Milestones of ADB’s Response to the Climate Change Challenge 34 3.02 Sustainable Transport Partnership Facility Windows 39 3.03 Integrating Climate Change Adaptation in Cambodia’s Roads 44 3.04 Asia Pacific Adaptation Network: Sharing Knowledge on Adaptation Actions 45 3.05 Poverty and Environment Net Website 49 3.06 Three Investment Areas in ADB’s Water Operations 52 3.07 The Environment Program’s Environment Operations Center 61 3.08 The Coral Triangle Initiative 63 vi Environment Program: Greening Growth in Asia and the Pacific Figures 2.01 Projects with Environmental Sustainability as a Theme: Amount and Number of Projects (2003–2010) 14 2.02 Projects with Environmental Sustainability as a Theme, 2003–2010 Percent of Annual Total Approvals (Value) 15 2.03 Projects by Environmental Subtheme, 2003–2010: Percent of Cumulative Total (Value) 15 2.04 Projects by Environmental Subtheme, 2003–2010: Percent of Cumulative Total Approvals (Number) 15 2.05 Investment Trends by Environmental Subtheme, 2003–2010 (Number) 16 2.06 Projects with Environmental Sustainability as a Theme by Sector, 2003–2010: Percent of Cumulative Total Approvals (Value) 16 2.07 Projects with Environmental Sustainability as a Theme by Sector, 2003–2010: Percent of Cumulative Total (Number) 16 2.08 Top 10 Borrowers for Projects with Environmental Sustainability as a Theme 2003–2010: Percent of Cumulative Total Approvals 17 2.09 Clean Energy Projects 18 2.10 Clean Energy Project Trends by Type 20 2.11 Clean Energy Projects by Operations Department 20 2.12 Technical Assistance with Environmental Sustainability as a Theme: Amount and Number of TAs Approved, 2003–2010 24 2.13 Technical Assistance with Environmental Sustainability as a Theme: Percent of Annual Total TA Amount Approved, 2003–2010 24 2.14 Distribution of Projects by Environmental Category (2003–2010) 29 2.15 Environment Categories of Projects (2003–2010) 29 3.01 Annual Clean Energy Investments, 2003–2010 35 3.02 Clean Energy Activities Toward Outputs and Outcomes, 2008–2010 35 3.03 CEFPF and CCF–CE Leverage Ratio 37 3.04 Sustainable Transport Initiative - Avoid-Shift-Improve Paradigm 38 3.05 Sustainable Transport Initiative Implementation Timeframe 40 3.06 ADB Investment in Access to Energy and Household Connections (2003–2010) 55 3.07 Average of Ambient Air Quality in Selected Asian Cities (1993–2008) 58 Tables 1.01 Natural Capital: Underlying components and Illustrative Services and Values 4 1.02 Developing Member Countries’ Progress in Achieving MDG 7 Targets: 2007–2008 9 2.01 Environment Categories of Projects (2003–2010) 28 3.01 Approved Water-Related Projects 52 3.02 Expected Beneficiaries of Approved Projects 53 3.03 Leveraged Water-Related Investments 53 3.04 Leveraged Water-Related Project Beneficiaries 54 3.05 Access to Energy Project Statistics (2003–2010) 55 Foreword vii Foreword nvironment Program: : Greening Growth in Asia and the Pacific presents a snapshot of ADB’s Eenvironmental strategies, programs, initiatives, partnerships, and a range of activities that demonstrate ADB’s commitment to support environmentally sustainable growth in Asia and the Pacific—a strategic agenda of ADB’s Strategy 2020. The report highlights innovations designed in selected ADB-supported projects with environmental sustainability (ES) as a theme that were approved in 2008–2010. The report also discusses the emerging environmental challenges in the region, and previews ADB’s strategies to strengthen its operational emphasis on the environment including climate change, that would help realize green growth for the region. Support for projects with ES as a theme has shown a marked upward trend in recent years. From 2003 to 2010, the number and value of loan and grant projects with ES as a theme continued to increase steadily. Fifty-three such projects totaling about $4.9 billion were approved in 2010, representing a nearly 40% increase in number over 2009 and the highest since 1995. Environmental investments in 2010 pushed up the average proportion of projects supporting ES as a theme to 35% from 2008 to 2010, exceeding ADB’s 3-year rolling average target of 25% in 2010–2012. In addition, 57 technical assistance projects worth about $71 million and 19 grants worth nearly $188 million were approved in 2010 with ES as a theme. There were a number of notable accomplishments in key sectors. For instance, the Clean Energy Program harnessed nearly $4.82 billion from 2008–2010, averaging $1.6 billion annually, exceeding the current annual target of $1 billion.
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