Welcome everyone. Good afternoon. We are delighted to be here today at the council on Foreign Relations where we have the opportunity to discuss with president kim of the world bank the next steps for International Climate action. Dr. Kim became the 12th president of the world bank in 2012 after a career in development and medicine. He served as president of Dartmouth College and a number of medical departments and cofounded partners in health, which now operates on four continents. His work has earned him wide recognition. He was awarded the mccarthurs genius fellowship in 2003. He is one of americas 25 best leaders. In 2005 and Time Magazine named him the 100 most influential person in 2005. He will be discussing Climate Change. With that, dr. Kim. [applause] thank you very much. And i apologize for the delay. We had his royal highness, the prince of cambridge here and was just across the street talking about crups and we had security issues. I apologize but im very glad to be here. First, i would like to thank the council on Foreign Relations for hosting this event and thank you, mark, for your very kind introduction. It has played an Important Role in Climate Change and environmental preservation issues worldwide and your leadership has taken it to even debater heights. And given the time you spent in the financial world, you will know one of the themes of my talk today, which is that Economic Policy is the key to mobilizing a coordinated Global Response to Climate Change. I cant attend the 20th conference of the parties to the u. N. , but i will be watching closely as the delegates set the stage for an agreement to be reached in one years time in paris that should transform the way we live for generations. At this key moment, im pleased to return to the council on Foreign Relations to share our vision what an agreement would look like. It is a fundamental threat to development in our lifetime. We know if we dont confront Climate Change, there will be no hope of ending poverty or sharing prosperity. The longer we delay, the higher the costs will be to do the right thing for our planet and our children. Our cities have turned down the heat reports and work on green growth and the list between development and climate made clear that the progress of ending poverty is at risk. Last months points were talked about on the Intergovernmental Panel on Climate Change. This unprecedented Scientific Consensus concludes if we are to stabilize Global Warming and the International Community agrees, we must achieve zero emissions of Greenhouse Gases before 2100. The International Community will have the opportunity to send a clear signal that we, as a global community, are determined to manage our economy to zero emissions before 2100. Every country finds itself at a different point in the development journey. Therefore, the pace and rhythm of their Emissions Reductions and adaptation will vary. Nonetheless, we have the opportunity in paris to make clear our collective ambition. That ambition can be for cleaner growth and increased commitment to adapttation. The higher the ambition, the greater demand for programs and projects that will transform economies. It will send a strong message to investors about the demand and possibility of longterm investments and clean energy in transport systems, Sustainable Agricultural and forestry and new efficient products. Paris must be where we make the rallying cry for effective management of local, national and global economies to fight Climate Change. Many observers expect an agreement in paris to be comprised of a number of essential components. Each must reflect an ambition equal to the challenge before us to send a powerful signal to economic actors around the globe. The parties must include binding language that should reinforce our collective ambition and a Clear Pathway to zeronet emissions before 2100. Individual country contributions with policy packages that should address how to use all available fiscal levers to get prices right, increase efficiency and incentivize decarbonization. Three, a financial package that recognizes that Climate Development funds should be used to innovate financing. Financial flow cannot reach the levels we need in the necessary time frame without some form of Network Carbon market based on the markets mechanism, taxes and environments we are beginning to see introduced all around the world and timely, working coalitions of private enterprises, countries, cities, moving forward with where it must be enhanced. Unlike treaties in the past, the Paris Agreement must speak loudly about transformation. Let me me say a few words about effective management and what we hope to see of the intended nationally determined contributions that will set out each countrys commitment at paris and beyond. We understand that many clients face huge challenges and many countries will reach their own peek emissions at different moments. Managing the economy to ensure that they can, for example, decarbonize the Energy Sectors over time and having the energy they need for development, constitutes a challenge no developed country has had to face as it was industrializing. Nevertheless, every country can strive to effectively manage its economy and decarbonize and boosting economy. It means strong policy signals that makes clear longterm goals. Carbon pricing. And removing subsidies that are harmful including fossil fuel subsidies. All countries should commit to put a price on carbon. Its a necessary if not sufficient step in any journey to zeronet emissions. It can be discovered by taxes, Market Mechanisms and whatever mechanism they choose, makes the pollution we dont want more expensive and incentivizes clean production. It can raise revenues and can be used to generate more economic benefits. We can do this moving from taxing the good to taxing the bad. To reduce labor and investment taxes and encourage job creation and Economic Development and Green Technologies through research and development subsidies. The example of British Columbia is one of the most powerful. It is neutral to the taxpayer. Its not an increase in tax. The government promised household it would not increase the tax rate. Taxes on labor, for example, were reduced. Introduced at the height of the financial crisis in 2008, the carbon tax has risen from 10 Canadian Dollars per ton to 30 Canadian Dollars per ton. 300 million Canadian Dollars in personal and business tax cuts. British columbias g. D. P. Has outperformed the rest of canadas introduction of tax. Other instruments need to be mobilized to redirect investments toward Clean Technologies and sectors. Stepping up drivers of Energy Efficiency is an obvious winwin that can deliver benefits. Strengthen performance standards can help achieve efficiency gains in buildings, transport and industry. Such measures have the potential to reduce greenhouse global gas emissions 1. 5 gigatons by 2020. Specific efforts are needed to specific efforts are needed to scale up Energy Technology at a pace that allow us tower reach carbon neutrality. Investment in infrastructure will be required. The electricity grids in many countries can with upgrades achieve much higher rates of efficiency. A huge opportunity in india and renewables can be allowed to be grid connected. Just this year, once the appropriate regulatory form and Grid Development had taken place, the private sector of the World Bank Group financed the first solar power plant in the phillipines. Removing harmful fuel subsidies is long overdue. There is 500 billion in subsidies that primarily benefit the better off by doing nothing to help the poor and the environment. These funds can be used in health and education or subsidize technology that can reduce emissions. Removing subsidies are in the basket of leaders desk. Brazil, indonesia and mexico are showing that shaving out fossil fuel subsidies can benefit the poor. A policy package that includes these components would give credibility and predict that all investors and consumers need to change their choices and behaviors. Including these would demonstrate the commitment of every country to play its part to move to a carbonfree economy and lay the pathway for essential work before they come into effect in 2020. Effective management of the economy means finding ways to find waist to invest more. The contributions of countries must address adapttation. Governments must implement the policies needed to strengthen resilience and ensure Development Takes into account climate risks. A Central Government support and encouragement for cities to transform themselves into being cleaner and more liveable can be bringing more rewards. Safe locations and transport planning, improve resilience. And finally, we hoped they will lay out clear policy frame works for our forestry and agricultural. If countries can offer contributions, the signal to economic factors will be strong. But for these efforts to bring us to zeronet emissions we will have to find financing. It is the critical component of a Paris Agreement. This compelling evidence suggesting that a country use their regulatory capacity to get prices right and use the instruments available to them, they will experience greater investment flows. Morocco adapted aggressive targets, lowered fossil fuel subsidies and attractive Legal Framework sm the country is becoming know as a solar power innovation hub. It grew from 297 million in 2012. Other emerging markets such as south africa are following with similar results. A Strong Demand from investors from greenclimatefriendly investments where investors have responded to the growing market. 35 billion in green bonds has been should so far this year and robust, liquid, green credit market is taking shape. It will be vulnerable. For these countries, public Development Funds and climate finance will play a critical role. In the future, these funds will have to be catalytic to serve the many needs that exist. Development finance has to mainstream adapttation to ensure effectiveness. There is no development outside the context of Climate Change. Investing on the slopes will ensure investments in agricultural productivity as farmers are quick to adapt to more intense rainfall. And investments in Educational Attainment will be protected as School Infrastructure is made more resilient to storms. Investing in man groves in vietnam may boost earnings. Each of these projects is a development project. Each would count as a Climate Investment. This is where longterm Development Finance and climate finance comes together. We have taken major steps this year to introduce disastrous screening. It is the fund for the poorest countries. We have developed adapttation plans in 25 countries. If they are found to be helpful, well expand the initiative. It is our hope that such countries can use this planning to develop their pipelines to the Green Climate fund. We know that climate finance will flow through many channels. We created the Climate Investment funds to Pioneer Investments in projects for Climate Change and learned lessons on how to optimize from gridconnected wind power in mexico to the first at scale concentrated solar power plants in mexico, to entrepreneurs in thailand. The projects and programs show how public funds can be leveraged and used by countries and the public sector. It is 8. 3 billion to generate another 57 billion in funding for countryled investments. Just last week, the contributors and other Board Members decided to extend the operations for two years and to ensure we can keep meeting countries needs. We welcome the fund and the initial pledge of 9. 9 billion it received. Its impact will be greatest if it uses this capital to get new investment in emission reduction. We look forward to leveraging g. C. F. Funds. A strong Paris Agreement will send immediate signals even though its component will come into force 2020. The other components must address the critical pressing needs to increase substantially our investments in resilience now. The economics are compelling. For every dollar invested, we can save 4 in relief. For every dollar in early warning, we can save up to 30. The cost of inaction are rising. Economic losses from Natural Hazards from risen from 50 billion to 200 billion in the last decade. Along with economic losses, insured losses have increased significantly. Insured losses from weatherrelated events are rising. The gap between overall losses and insured losses has been widening. Fully 75 of catastropherelated losses worldwide are still uninsured. We will use our track record to look for ways to raise a onetime injection of funds and strengthen Insurance Coverage and not wait until the next decade. Just as we cant wait, we should also not wait to act on other fronts. In recent years, we witnessed a new phone men none. Frustrated by the pace of negotiation and the difficulty of finding consensus among 193 members of the u. N. , coalition of stakeholders have pressed forward. On issue after issue, government and Civil Society organizations have found they can override the difficulties. These coalitions have paved the way for wider agreements and picked up the pace of data, evidencebuilding and action. This is what led nations and stakeholders to move forward to reduce the effort. It has driven the effort to drive out pollutants. And the development in africa of climateSmart Agriculture that keeps emissions low and feeds the worlds growing population. The Paris Agreement will recognize the importance of these coalitions in drifling action forward. Partnership in these coalitions has been fundamental in our exploration of new ways to support clients. Since i joined the World Bank Group 2 1 2 years ago, in addition to evaluating all projects, we have begun to measure the Greenhouse Gas emissions in key sectors and set an internal price on carbon as a guide. We are discussing the discount rate we used to determine how we measure economic benefits in the longterm and begun work. We tallied our finance with other Development Banks and we have as a group of banks developed a common way to measure mitigation achieved in our financing. We are about to agree on a common measurement for adapttation. We hope in the near future all of the Development Banks and the bilateral Financial Institutions gather in the finance club and will align themselves among common accounting. They make up a robust tool kit to understand the Carbon Footprint and give us important Management Information for project choice and design. It will help the International Community know that mitigation and adapttation benefits comes fromp channeling benefits. This will increasingly place a climate lens on our work in support of our clients and can be a way to support countries in implementing their defined contributions to Climate Change. At the World Bank Group we need to challenge ourselves and guided by a believe that our clients must succeed at reaching zeronet emissions. This will be a direction in supporting Energy Access for all and scaledup support. It will require continued support for clean transport and the development of the Green Building market. It means shifting our agricultural portfolio. And further financial innovation to get investments for low emissions investment. In the year between lima and paris, i intend to challenge to become longterm partners of choice in this world. I offer a spring and annual meeting to increase our ambition with finance ministers. We will support leadership of the g7 and g20 to ensure a