November 28, 2010

Climate Business for Poverty Reduction? The Role of the World Bank

by Axel Michaelowa and Katharina Michaelowa

- Our econometric analysis of over 2000 projects registered until May 2010 under the Clean Development Mechanism (CDM) of the Kyoto Protocol allows us to compare the activities of the Bank with those of other, primarily private actors. The results indicate that hardly any of the CDM projects can be considered as strongly pro-poor. Nevertheless, in comparison to the rest of the CDM projects, the Bank’s portfolio shows a relatively clearer orientation towards poor countries. Within these countries, however, the Bank tends to implement those projects which are commercially most attractive.

Michaelowa, A. and K. Michaelowa (2010). "Climate Business for Poverty Reduction? The Role of the World Bank." CIS Working Paper No. 59, Aug 2010.