Several Pacific island countries have chosen to use integrated vulnerability assessments (IVAs) to capture and incorporate community-level vulnerability information into their NAP processes.

The IVA Framework was developed in 2016 by Pacific organizations in response to a perceived need to support a standardized, coordinated and integrated approach to assessing climate vulnerability in the region.

This briefing note will highlight the significance of the IVA Framework to the NAP processes underway in three Pacific island states: Kiribati, Tuvalu and the Solomon Islands. After briefly summarizing the background and purpose of the IVA Framework, this note will outline how it was applied, identify key lessons learned and make recommendations for future iterations of this work.

Enrvironmental and social impact assessments (ESIAs), environmental and social management plans (ESMP), closure and rehabilitation plans, and potential resettlement action plans (RAPs) are essential tools for any process related to the granting of environmental permits or mining authorizations.

Unfortunately, these issues are often poorly considered in the initial phases of mining projects or are inappropriately monitored during subsequent operational phases. This is why the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) is focusing on ESIAs for their fourth Guidance for Governments.

The purpose of this background paper is to identify the issues and problems related to the legal framework of ESIAs and related plans in the legal framework of mineral resource-rich countries, as well as their implications for how the mining sector is governed, while exploring avenues for action and reflecting on appropriate solutions.

This report looks at the impact of subsidies to kerosene and liquefied petroleum gas (LPG) and subsidy reform from a gender perspective across three countries: Bangladesh, India and Nigeria.

The research is based around two overall research questions:

1. How do existing kerosene and LPG subsidy policies affect the welfare, productivity and empowerment of women and girls in low-income households?  
2. How might the welfare, productivity and empowerment of women and girls in low-income households change as a result of specific, nationally relevant proposals for the reform of existing kerosene and LPG subsidies?

These questions were explored using secondary data, household surveys across the three countries reaching over 2,400 households and focus group discussions. The questions were answered within the context of hypotheses made during the scoping phase and literature review for the research, based on a review of 28 reform episodes. This research attempted to answer the above questions in relation to an income effect, an energy use effect and an energy supply effect, all from a gender perspective

The Government of Manitoba has proposed drainage regulations to ensure no net loss of wetland benefits while streamlining the drainage permitting process.

In our responses to these regulations, we focus on protecting Manitoba’s wetlands—an integral part of our landscape.

Among other recommendations, we argue that in order to preserve their great value, no licences should be issued to drain semi-permanent and permanent wetlands in Manitoba; that regulations on sub-surface tile drainage must stipulate closure dates to prevent downstream spring flooding and negative water quality impacts; and that all information about applications for drainage permits should be made accessible online.

Read the document for all of IISD’s recommendations to the Government of Manitoba and our suggestions for next steps.

Key Messages

• Government revenues from fossil fuel production are in rapid decline. Transition away from tax and non-tax revenues from oil, gas and coal extraction in Indonesia requires a transparent and comprehensive discussion.  
• The use of government revenues from upstream oil & gas is trapped by subsidies to fuel & electricity consumption. These subsidies are an inefficient mechanism for redistribution of the declining export rents from fossil fuels.
• Revenues from the taxation of fossil fuel production and consumption as well as savings from subsidy reforms should be invested in productive uses supporting social development and economic diversification. Investments in renewable energy can be one of the sectors driving diversification of the Indonesian economy and its fiscal transition away from fossil fuels.

Indonesia is one of the few developing countries that can boast of reducing fiscal dependence on revenues from fossil fuel production while growing and diversifying both the economy and government revenue base. Since the beginning of the 21st century, Indonesia experienced a drop in government revenues from upstream oil and gas—from 35 per cent of the total revenues (7 per cent of GDP) in 2001 to just 6 per cent (less than 1 per cent of GDP) in 2016. Meanwhile, Indonesia’s rates of GDP growth (at 3–4 per cent per year) and budget deficit (at 2–3 per cent) remained largely unchanged. 

However, the country faces several challenges in moving further towards a fiscal system supporting clean energy and a sustainable economy. Compared with other BRIICS countries, Indonesia underutilizes the fiscal space it can create by taxing energy consumption. Fuel consumption taxes (VAT and motor fuel tax) generate just a third of the value of fuel and electricity subsidies (0.57 per cent of GDP vs. 1.7 per cent of GDP on annual average over 2014–2016). These subsidies are an inefficient mechanism for redistribution of the declining export rents from fossil fuels. A lot of barriers remain in the way of renewable energy development.

This publication makes a first attempt at an integrated analysis of how Indonesia both taxes and subsidizes production and consumption of oil, gas, coal and electricity (most of which is generated with coal). The paper also explores lessons learned from Indonesia’s reduction of fiscal dependence on fossil fuels. Chapter 1 reviews the state of play in the oil, gas and coal sectors and in particular the role of state-owned enterprises. Chapter 2 focuses on the dynamics of government revenue from fossil fuels vs. its expenditure on fuel and electricity subsidies. Chapter 3 looks at the Indonesian policies linked to economic diversification.

The paper is a sister publication of the forthcoming IISD analysis Beyond Fossil Fuels: Fiscal Transitions in BRIICS and follows the same methodology.

Key Messages

• The main value proposition of tokenizing sustainable infrastructure lies in its potential to decrease the cost of financing.
• Tokenization can also deliver a wide range of financial and operational benefits.

The paper examines how the tokenization of sustainable infrastructure can address some of the fundamental challenges of the asset class. Tokenization is the digitalization of an asset, where each token represents ownership of a part of the underlying infrastructure project. Blockchain enables the storage and transfer of these cryptographic tokens in a frictionless manner.

Tokenization can deliver a wide range of benefits—such as lower transactions costs, better transparency, enhanced liquidity, access to alternative sources of capital, decentralization and increased efficiency—while addressing the issue of scale.

Improving efficiency throughout the financing and operation phases is particularly important for sustainable infrastructure projects. They tend to require a bigger upfront investment (capital expenditure) and have higher perceived technological risks compared to more traditional infrastructure. As a result, there is often a need to explore innovative financing solutions to make sustainable infrastructure financially viable and attractive to investors. Tokenization can play an important role in decreasing the cost of financing, making the whole asset class more bankable.

Tokenizing real assets is still in its early stages; however, as the case studies in this paper demonstrate, there are already several initiatives gaining considerable traction. There are of course challenges, both regulatory and related to technology, that need to be overcome in order to have wider adoption.

Key Messages

• The kinds of changes necessary for Canada to meet its Paris Agreement targets require an infusion of capital beyond what governments and taxpayers can cover. 
• Mandatory transparency around climate change risks held by business should be a central part of Canada's climate action, particularly given how much capital is invested in Canada’s energy sector.
• A three-year policy roadmap for greening Canada’s financial ecosystem is achievable and includes coordinated action from multiple oversight organizations.

Ambitious action is required for Canada (and the world) to meet its Paris Agreement targets. This will require an infusion of capital beyond what governments and taxpayers can cover. The private sector must become deeply involved, encouraged by changes to the financial ecosystem that make climate change action and the low-carbon economy the norm.

In advance of Canada’s Expert Panel on Sustainable Finance releasing their recommendations on the best finance and investment structures for climate action, Leveraging Sustainable Finance Leadership in Canada sets out a three-year policy roadmap to funnel private investment into a sustainable Canadian economy.

While mandatory climate risk disclosure is a central part of the report's recommendations, there are supportive actions a number of government actors and financial organizations will need to take to build a financial system that empowers clean growth and greenhouse gas reductions.

This case study research highlights specific policy and program mechanisms for achieving reduced nutrient and contaminant loading and maximum co-benefits through offsets by examining six programs from Canada, the United States and New Zealand. 

Offset programs allow regulated dischargers that do not meet pollutant discharge limits to offset their excess loads against greater pollution reductions made elsewhere in the same watershed. Since sources in a watershed can face very different costs to control the same pollutant, offsets can enable cost-effective water quality improvements. 

In Manitoba, there are currently over 200 wastewater treatment facilities that discharge phosphorus and contribute to the nutrient overloading and eutrophication of Lake Winnipeg. Upgrades to these facilities are resource intensive, and the option of offsetting discharges against nonpoint sources in this agricultural region may provide higher nutrient reductions, create ancillary ecological benefits and nurture successful relationships between various stakeholders. 

The report discusses lessons for offsetting program design and implementation based on a review of the following programs:

• Lake Simcoe Phosphorus Offsetting Program (Ontario, Canada)
• South Nation Conservation water quality trading program (Ontario, Canada)
• The Lake Taupō nitrogen trading program (Waikato, New Zealand)
• Clean Water Services’ Tualatin River Program (Oregon, USA)
• Erie P Market (Western Lake Erie Basin, USA)
• Electric Power Research Institute Ohio River Basin Trading Project (Ohio, USA)

The programs demonstrate some range in parameters such as watershed size, pollutant types and stage of implementation. Most programs have been developed as a compliance option for point source discharges through partnering with nonpoint sources. Our analysis focuses on synthesizing common design and implementation elements, institutional setup, credit characteristics, transaction costs, verification procedures, and other protocols and mechanisms.

The best available climate projections suggest that communities throughout Manitoba must prepare for significant climatic changes in the coming decades.

As part of these preparation efforts, municipalities should be considering the anticipated impacts of climate change in their key planning documents and identifying actions to reduce risks and adapt to these changes. To assess the extent to which Manitoba’s municipalities are preparing for climate change by incorporating climate risks and adaptation needs into local planning documents, the Climate Change and Air Quality Branch of Manitoba Sustainable Development commissioned the International Institute for Sustainable Development (IISD) to undertake this review. 

The study reviewed a sample of local plans from across Manitoba, consisting of 20 development plans, five emergency plans and five integrated watershed management plans.  Among the plans reviewed, it was found that five development plans, zero emergency plans and two integrated watershed management plans explicitly considered the need to adapt to climate change. 

To address the gaps identified, this report recommends that the Province of Manitoba work with the Canadian Centre for Climate Services and the Prairie Climate Centre to help municipalities and watershed districts use local climate change projections to assess and mitigate risks. Climate change adaptation considerations should be incorporated into the templates for development plans, emergency plans, integrated watershed management plans, and any other relevant tools to provide municipalities and watershed districts with a helpful structure.

Further insights into municipal efforts to address climate change risks could be gained by examining a broader sample of local plans. Examining implementation tools such as zoning by-laws and annual budgets also could be useful to verify whether municipalities and watershed districts are acting on the content of their plan. A survey of local officials could offer insight into formal and informal aspects of climate change adaptation awareness, needs and efforts among Manitoba communities.

• Sustainable Asset Valuation (SAVi) values, in financial terms, the material economic, social and environmental risks and externalities of infrastructure projects and policies. These variables are usually ignored in traditional financial analyses.
• Georgia’s Green Economy Strategy includes infrastructure investments in agriculture, buildings and the tourism sector. SAVi assesses the investment costs, government revenues and co-benefits of implementing the Green Economy Strategy.