Connecting the dots: Navigating pollution, health, climate and fiscal solutions

Benoit Blarel Practice Manager. Environment and Natural Resources Global Practice. The World Bank WHO Global Conference Air Pollution and Health, Geneva, October 2018

Why do we Care?

Significant Human Health Costs Undermines Development Potential

Inequities of Air Pollution Evidence from a Lower MIC - 2010

LOW INCOME

HIGH INCOME

HEALTH BURDEN

LOW INCOME

HIGH INCOME

EMISSIONS

HEALTH BURDEN

LOW INCOME

HIGH INCOME

EMISSIONS

HEALTH BURDEN

EXPENDITURES FOR ENERGY(% OF INCOME)

Source: IIASA, 2018

INCOME GROUPS

Why do we Care?

Why do we Care? Climate Actions are urgently needed

Air Pollution Benefits: • Near term

• Local

• De-coupling works

Use Air Pollution as an Entry Point

What are we doing about it?

FY04 – FY17 $ 42 billion targeting Pollution $ 12 billion targeting Air Pollution About 50% CC projects have air pollution co-benefits (RE, EE)

What are our clients achieving? PM2.5 and PM10 reduction in selected cities

City, Country Highest concentration Reduction Timeframe

Mexico City, Mexico PM10 = 180µg/m3 >70% 25 years

(1990 – 2015)

Lima – Callao, Peru PM10 = 85µg/m3 >50% 8 years

(2006 – 2014)

Beijing, China PM2.5 >100µg/m3 > 30% 7 years (2012 – 2018)

Ulaanbaatar, Mongolia PM2.5 =250µg/m3 > 60% 8 years

(2010 – 2018)

We need to do More, Better and Faster

What have we learned? • The power of information • Work Together • Greening fiscal regime

We need to do More, Better and Faster Use the Power of Information

To generate demand for action To prioritize cost effective actions

We need to do More, Better and Faster Use the Power of Information

Maximize Synergies, Manage Trade-offs Solutions are site specific Clarify accountability Identify Losers & Winners from actions Design & Implement Policies Monitor, Evaluate & Adjust

We need to do More, Better and Faster Work Together - Learn from Each Other

Solutions are Multi- • Sector • Agency • Jurisdictional

The Tobacco Success Story • Change behaviors • Role of Taxes

The Plastic Story: Effective communication

We need to do More, Better and Faster Innovate – Green the Fiscal Regime

TAXING GOODS

TAXING BADS

$

Environmental Fiscal Reform

Underwrite Environmental, Climate, Health and Economic benefits

SUBSIDIZING BADS

SUBSIDIZING GOODS

Significant Opportunities: Environmental tax gap

Source: OECD 2018

Getting Fiscal Regimes Right: triple win for pollution, climate and people

• Taxes influence behavior, making enforcement of air quality policy easier

• Fiscal policy instruments can reduce pollution at the least cost to the economy

• Easier to collect for tax administration than income taxes or VAT • Particularly useful element of fiscal reform in developing countries

with weak institutions, informal sector, tax evasion and low domestic resource mobilization

• Save on Health Expenditures related to AP • Expenditure switching to environment-enhancing expenditures