This internal background paper has been prepared to help inform the 2010 environment strategy with respect to a proposed way forward on use of country systems. The World Bank Group environment strategy is built on three pillars: leveraging natural resources for growth and poverty reduction
managing the environmental risks to growth and development
and transforming growth paths. As part of its exploration of these three pillars, the strategy considers the question of environmental co-benefits of climate change actions. In particular, it poses the question of potential trade-offs between actions to address climate change and other local and regional environmental priorities, and considers how to maximize co-benefits arising from climate action. The primary objective of this background paper is to assess the potential for climate change mitigation and adaptation actions to provide environmental co-benefits, particularly in the quality of environmental media, flow of ecosystem services, and maintenance of biodiversity. To accomplish this, the paper is organized in five sections: section one gives provision of an organizing framework to identify and classify potential co-benefits
section two gives summary of the external literature on co-benefits
section three gives review of examples from the World Bank portfolio
section four presents initial thoughts on creation of enabling conditions for co-benefit provision
and section five gives review of implications for the environment strategy.