Post on 01-Apr-2015
COP-8 Side Event - Thursday 31 October
Development & Climate Change:
Issues & Opportunities in Asia
IPIECA Workshop - Key Messages and Learning's
Kuala Lumpur, Malaysia
25-26 September 2002
Background to IPIECA
Founded in 1974
United Nations NGO Status (ECOSOC II)
Non-profit
Global oil and gas membership 25 national & multinational companies
13 national & regional associations
Secretariat based in London
Focus on key global environmental issues
Share information, understanding & good practice
Does not lobby on behalf of the industry
Core IPIECA Activities
Strategic issues assessment; oil spill preparedness & response; urban air quality management; biodiversity; health issues; and global climate change.
Aim: to provide members and external stakeholders with reliable and timely information, issues analysis, education and involvement in international process related to global climate change
Climate Change Working Group established in 1988
IPIECA Climate Change Activities
1/ Interaction with UNFCCC– Inform members of developments in the negotiations
– Publications (e.g. Guides, Glossary of Terms)
2/ Contributing to the IPCC– Industry expert Lead Authors and peer review
– Guide to IPCC processes, structure and functions
3/ Workshops and Symposia– International and regional events
– Scientific, technical, socio-economic aspects of climate change
– Comprehensive series of reports and publications
IPIECA Workshop (25-26 September)
Workshop on Development & Climate Change: Issues & Opportunities in Asia
Hosted by PETRONAS in Kuala Lumpur, Malaysia
Workshop goals: 1/ assess future regional energy demand, GHG trends, & options
to meet climate change concerns and development priorities
2/ consider opportunities for effective technology transfer and capacity building
3/ explore the potential for market-based emission reduction approaches, particularly through CDM
• Key priorities in Asia – sustainable development and poverty alleviation
– technology transfer and capacity building
• Anticipated economic growth– average 3-7% annual GDP
– considerable national and regional variation
• Affordable energy is a key factor to achieve economic & social development
• Over 2 billion people globally without access to electricity
Development Trends in Asia
• According to the IEA, demand for energy will increase twofold between 2000 and 2020– increased consumption of coal, oil, and particularly natural gas
• Future fossil fuel resources:– adequate for many decades– require technology developments & investment
• Renewable energy sources (hydro, solar, wind, geothermal and biomass) – expected to grow considerably– remain a small % of total energy mix
Long-Term Energy Demand in Asia
Long-Term Emission Forecasts in Asia
0
500
1000
1500
2000
2500
3000
3500
4000
1990 1998 1999 2005 2010 2015 2020
miilion tons C eq
Other Asia
South Korea
India
China
Australasia
Japan
(IEA, 2002)
Policy challenge to provide affordable energy for development, whilst at the same time limiting long
term GHG emissions
Examples of Technology Options
• Efficiency improvements
- Buildings, energy supply and use, transport
• CO2 Capture and Storage
- Biological sinks (create & maintain stocks)
- Geological sequestration
• Non Fossil Fuel Energy Supply
- Nuclear, biomass, hydro, wind, solar...
- Decades to implement additional new technologies
Effective technology solutions
Must be efficient and economic
Short term: Global deployment of current technologies
Long term: Support research and development of new technologies e.g. biotechnology
Technology Transfer
Barriers:
cost
intellectual property rights
institutional structures
personnel
Enabling frameworks:
rule of law
open markets
foreign direct investment
private / public collaboration
training
market based mechanisms
CDM offers one new pathway to encourage technology transfer
• Projects that:– Promote sustainable development
– Reduce emissions
– Result in technology transfer
– Mobilize new investment (no diversion of ODA)
• Generating CER’s of less importance
• Early focus on– Energy efficiency
– Renewable energy
– Small scale projects
CDM: Common Priorities - Host Countries
• Institutions and procedures under development
• Significant progress in most countries
• Wide variety of approaches that reflect differing national priorities & structures
• Large potential for CDM projects &
emission reductions in Asia
– High growth, low abatement cost
– Japan major credit buyer
– Potential reductions > 100 million ton of CO2
– Projects particularly in larger Asia countries
CDM: National Approaches
Need to:
- Establish local Operational Entities
- Develop capacity
- Lower transaction
costs
- Raise awareness
• “Learning by doing” builds better understanding than
analysis & workshops
• Private-public partnerships foster understanding
– Needs & expectations of government/business
– How to balance priorities of sustainable development with
generation of CERs
• Project viability only affected by CERs at margin
– Projects must be economically sound
• Transaction costs remain high
Learnings from CDM Case Studies
• Currently receive little attention• Present significant technical challenges (baselines,
additionality, only part of a project…) • Potential for time-consuming, confrontational debates
over political acceptability (eligibility, approval process…)
• Large scale projects have potential to:– reduce emissions significantly
– encourage substantial investment
– promote technology transfer
– contribute to sustainable development
Large-scale CDM Projects
• Company emissions obligations in Annex 1 countries– extent to which CDM might contribute
• Economic basis for valuing CERs• Rules for project eligibility, baselines, additionality• Approval process, especially for large projects
– information requirements– transaction costs– time and process for decisions
• Contrasts between public/private sector approaches
Private Sector Perspectives
Uncertainties at every step...
Key Messages
Development & poverty alleviation key priorities
Need to consider climate change in this context
Access to affordable energy essential for development
Fossil fuel usage in Asia set to double by 2020
Technology offers a variety of opportunities
CDM offers one new pathway – multiple objectives
Key Messages (cont.)
Significant potential for CDM in Asia identified
Current focus on small scale projects
Large-scale projects (many benefits & challenges)
Diversity of National approaches being developed
Lower transaction costs & faster approval needed
Investment in CDM from a variety of sources
Key Messages (cont.)
Uncertainties
Project (additionality, baselines, eligibility…)
In most cases credits affect viability at the margins
Business (obligations, demand, cost…)
Long-term issues
International framework post 2012
Technology developments > significant reductions
Mechanisms to promote technology transfer
For further details about IPIECA, and our joint Latin American workshop with ARPEL on
3-4 December 2002, please visit:
http://www.ipieca.org
or contact:
info@ipieca.org