Economics & Development

The development objective of Water Security Project for Mali is to increase access to improved drinking water supply and enhance conservation of water sources in selected cities. This project has four components. The first component, Water supply in Bamako and selected secondary centers, has the following sub-components: (i) Water supply systems in secondary centers; (ii) Water supply systems in Bamako; and (iii) Management of non-revenue water. 2) The second component, Enhancing conservation of water sources, tied to the water resources they depend on and are affected by climate change. 3) The third component, Project management and capacity reinforcement, aims to support Project management activities and Capacity-building activities. 4) The fourth component, Contingency Emergency Response Component, C is included in the project in accordance with Investment Project Financing (IPF) Policy, paragraphs 12 and 13, for Situations of Urgent Need of Assistance and Capacity Constraints.

This document collection explores governments' challenges and opportunities in managing public finances and resources effectively. It examines performance-based funding models, the need to adapt to climate change, and the complexities of subnational debt financing. The collection also delves into the importance of cost-effective monitoring strategies to ensure efficient resource allocation and program effectiveness.

The number of countries that have announced some type of commitment to net zero emissions has increased very rapidly in recent years, from five in 2018 to over 145 in 2023. Many of these are middle-income countries (MICs) and low-income countries (LICs), whose greenhouse gas (GHG) emissions are concentrated in the power sector. As domestic electricity demand grows, these countries must increase power generation while reducing carbon emissions to meet socioeconomic needs and align with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C. Therefore, the power sector must increasingly rely on low-carbon energy sources. LICs and MICs are therefore considering introducing a range of policies to decarbonize their power sectors, and a growing number of them are considering carbon pricing instruments (CPIs), such as carbon taxes and or emissions trading systems (ETSs) to transition to low-carbon electricity systems, as part of a broader policy mix. A literature review confirms the gaps that exist in developing economies to introduce carbon pricing. This report aims to fill some of the identified knowledge gaps and assess the role that CPIs, specifically carbon taxes and ETSs, can play in supporting decarbonization of the power sector. The report also provides actionable recommendations for policy makers considering implementing a CPI in their countries.