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" The Bank Group has raised over US$6 billion from governments for new climate investment funds "markets. For example, IFC is committing about US$3 billion through about 180 private equity funds to build markets through which investors can supply longer-term risk capital to owners of local companies. I am especially pleased that in 2010 IFC created a new Asset Management Company to supplement IFC's traditional model of raising money in bond markets and then investing it. The AMC taps sovereign wealth funds, pension funds, and other institutional investors and channels investments to profitable opportunities identified by IFC. The venture opens up a completely new channel of financial intermediation. The AMC now totals over US$4 billion, almost US$3 billion of which had little previous exposure to Africa and other less recognised emerging markets.The World Bank group has sought to catalyse action on global needs, ranging from biodiversity and climate change to trade and financial markets, through a pragmatic, on-the-ground approach. Many of these issues relate to non-traditional threats to security. The Bank's comparative advantage is practical, problem-solving with developing country clients. Combining that relationship with new experience, tools, and partnerships enables the Bank, for example, to boost trade and lower costs through expediting customs, assisting with financing, getting goods to markets, and connecting producers to supply chains. The Bank Group has raised over US$6 billion from governments for new "climate investment funds" to help countries improve energy efficiency and technology, lower emissions, and protect against climate change. These funds have mobilised about US$50 billion worth of projects in 45 developing countries. As UN negotiators debate what a "Green Fund" might look like, the World Bank has one up and running.The Bank has brought financial innovation to bear on plans to develop medicines, protect wildlife, lower the costs of humanitarian food and supplies, and create natural disaster insurance. In Singapore, the Bank will help launch a new S-O-S partnership to Save Our Seas from overfishing, pollution, and deadzones.Promoting good governance and anti-corruption are an integral part of development. The best militaries do not rely just on force. They stress integrity, high standards, shared responsibility - and honour. When successful, they earn the trust of their members and their societies. When I arrived at the Bank in 2007, the Bank's anti-corruption work was mired in frustrations, suspicions, and conflict. An independent review panel, headed by former US Federal Reserve Chair Paul Volcker, provided an invaluable "wiring diagram" to enable the Bank's integrity staff to work more effectively with field operations, clients, donors, and the Bank's own Executive Board. Yet the Bank needs to do more than just investigate, prosecute, and penalise fraud and theft. We need to set standards, live them, and promote their broader adoption. In many resource-rich countries, the primary challenge is for the government to use income wisely, counter corruption, and broaden the benefits of growth. n AcknowledgementThe above remarks by Robert B. Zoellick are excerpted from Mr Zoellick's Stephen Roskill Memorial Lecture at Churchill College, University of Cambridge, on 22 February 2012. Source: The World Bank Group, Robert B. ZoellickFINANCE AND INVESTMENT 083

Environmental Negotiations -Making the WTO Part of the ToolboxPascal Lamy, Director-General, World Trade Organization On the shores of Rio de Janeiro, exactly twenty years ago, the world sealed a landmark environmental deal. The Rio Earth Summit of 1992 delivered an Agenda for the 21st Century from which all countries drew inspiration, and several multilateral environmental agreements (MEAs), of which the United Nations Framework Convention on Climate Change (UNFCCC) was one. The 1992 summit created an unprecedented atmosphere of international collaboration on environmental issues, fundamentally changing our perception of the natural resources with which our planet is endowed. It made us ask probing questions about the sort of planet that we would bequeath to our children. And never did the word "common resource" ring more true than after this Summit of 1992. Twenty years on, we now ask ourselves, how else should we be taking the international environmental and sustainable development agenda forward? What should we be doing? Where should we place the accent?Understandably, the climate crisis is at the top of our list of global preoccupations. The creeping crisis and the slowness of the international response to it are undoubtedly a serious cause for concern. The creation of a "green economy" has been touted as the response to many of the environmental challenges we face, including the climate crisis, with the message being: we must continue to grow, but must do so differently. The concept of a green economy has come accompanied by a call for expanding the use of renewable energies, and disseminating clean technology. At Rio + 20 sustainable growth is now being championed. Clearly, the world needs to continue to put the emphasis on the creation of a global climate accord; a clear and stable successor regime to that of the first and second commitment Pictured: Pascal Lamyperiods of the Kyoto Protocol. Such an accord would create the right incentive structure for the green economy to take hold. The Durban Platform for Enhanced Action set up a process to negotiate "a protocol, another legal instrument or an agreed outcome with legal force" no later than 2015 - a commendable goal. Absent such an international regime, the climate crisis risks disintegrating into trade disputes, as countries tend to resort to unilateral environmental measures to combat climate change, and take it into their own hands to galvanise others into action through trade measures at the border.In this vein, I wish to recall Principle 12 of the Rio Declaration of 1992, which stated that: "Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country should be avoided. Environmental measures addressing trans-boundary or global environmental problems should, as far as possible, be based on an international consensus." On climate change, that consensus must continue to be sought.How then do we achieve that consensus? Clearly, certain enabling conditions must be forged. Prime amongst them would be to disseminate clean technology. After all, who would be opposed to green growth or to an international climate accord, if their technological feasibility were to be ensured? For most countries it is not about whether to achieve a green economy or a global climate accord, but how. At Rio + 20, I would strongly urge negotiators to make the World Trade Organization (WTO) part of their "Emphasis must also remain on concluding a global climate accord. We cannot risk a climate trade conflict"084 FINANCE AND INVESTMENT