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Transcript of Www.electricitypolicy.org.uk International Support for Domestic Action Karsten Neuhoff Accra...
www.electricitypolicy.org.uk
International Support for Domestic Action
Karsten NeuhoffAccra 8.4.2009
Ilian Iliev, Amichai Magan, Anoop Singh, Zsuzsanna Pato, Maike Sippel, Xiliang Zhang, Jim Cust, Kate Grant, Sarah Lester, Tim Laing
William Gboney, Haroldo Machado Filho, Uma Shankar
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 2
Outline
• Policies for shift to low-carbon growth path
• Instruments to support effective implementation
• The role of technology cooperation
• Anchoring in UNFCCC framework
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 3
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Mto
e
Transport
Industry
Transport Savings
Industry Savings
Household Savings
Household and Others
Public Transport
Insulation
Productionefficiency
Substitutionof products and processes
Efficient use
1970
1976
1982
1988
1994
2000
2006
2012
2018
2024
2030
Trigger points for efficient energy use
Source: based on IEA World Energy Outlook 2008
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 4
Domestic GHG Policy for Steel Sector in India
• Harmonised CO2 tax complemented by administered standards
• Enhances sector competitiveness
• Reduces coal demand
• Acceptability• Huge capital access for process
shifts
• Capacity building, training• Technology cooperation
Policy
Co-benefits Challenges
Scope for international cooperation
• Domestic CO2 price • Emission Intensity levels; shifts in process type and plant size
Metrics
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 5
Policy outcome scenarios:
Domestic GHG Policy for Steel Sector in India
Production ( Mn tonnes crude steel)
26
85 85
120105
14
45 45
10
10
8
15 15 15
15
6
5 5 5
5
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
2007 (
actu
al)
2020 B
AU
2020 E
nerg
y
Effic
iency
2020 P
rocess
Shift
2020 +
10%
Substit
utio
n
Coal BF-BOF Coal DRI-EFEAF/EIF Gas DRI-EF
GHG emissions (Mn tCO2e)
75
204170
24021043
126
113
25
25
0
50
100
150
200
250
300
350
400
2007 (
actu
al)
2020 B
AU
2020 E
nerg
y
Effic
iency
2020 +
Pro
cess
Shift
2020 +
10%
Substit
utio
n
Coal BF-BOF Coal DRI-EFEAF/EIF Gas DRI-EF
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Neuhoff, 6
Climate Co-benefit Domestic GHG Policy for Power Sector in India
• Clean coal generation technology; Up gradation of distribution network; Improving efficiency of agricultural pump sets
• Energy savings• To facilitate reduction in
price subsidy
• Few Implementation issues• Large funding of incremental
cost
• Technology Cooperation• Long-term financial commitment needed to provide appropriate signals to domestic / international equipment manufacturers
Co-benefits Challenges
Scope for international cooperation
Anoop Singh IIT Kanpur
• Adoption of efficient technology • Reduction in Coal Consumption per kWh generated• Network loss reduction
Metrics
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 7
Transportation Policies in Brazil
• the National Plan on Logistics and Transport, which is a policy that can promote a significant
change in the modal split in the country;• Pro-Transport, aiming at funding public transportation in urban areas.
• reduce dependence on oil • reduce local air pollutants • reduce traffic jams, noise and accidents
• leverage funds to provide more efficient and integrated public transport systems and their related infrastructure at the local level.
• extend the network of long-distance passenger railway running on electricity• concession • CDM (including programmatic CDM) • Positive Incentives (Bali Plan of Action – AWG – LCA)
Policy
Co-benefits Challenges
Scope of international cooperation
Haroldo Machado Filho
• beyond minus 18% of the BAU scenario (CCAP study, 2005)
Metric
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Neuhoff, 8
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1970
1976
1982
1988
1994
2000
2006
2012
2018
2024
2030
MtoeExtra other
Other
Extra biomass
Biomass
Extra hydro
Hydro
Extra nuclear
Nuclear
Oil
Gas
CCS
Coal
Concentrated solar power
Efficiency improvements in generation and distribution
Facilitating largepenetration of renewables
Trigger points for low-carbon energy technologies
Source: based on IEA World Energy Outlook 2008
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 9
Experience with indicators
• Widely used across many levels/sectors of economy
(Key Performance Metrics, Agri-Environmental Metrics, Science and Technology Metrics, Indicators for ODA and SD)
• Allow for performance benchmarking
• Increase domestic accountability
• Facilitate evidence based (international) dialogue
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 10
Policy target applied toOutcomeInput
Tim
e fr
am
e
(yea
rs)
1
3
15
10
GPRA Government performance result actPSA Public Service Agreements PRSP Poverty Reduction Strategy Papers MDG Millennium Development Goals
PSAPRSP
EU AccessionMDG
Responsetime
Options for definition of policy targets
GPRA
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Neuhoff, 11
Building on the experience with LogFrames
ProcessInput Output
Monitor
Evaluate
• Budget • Tax level • Subsidy• Planning law• Training
• Equipment operating• Manufacturing capacity• Trained people• Infrastructure
• Planning applications
• Employment in industry
• Construction activities
• Performance of indicators against trajectory• Survey to identify possible barriers• Quality of output, expected outcome
Management of action
ProcessInput Output
Monitor
Evaluate
• Budget • Tax level • Subsidy• Planning law• Training
• Equipment operating• Manufacturing capacity• Trained people• Infrastructure
• Planning applications
• Employment in industry
• Construction activities
• Performance of indicators against trajectory• Survey to identify possible barriers• Quality of output, expected outcome
Management of action
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Neuhoff, 12
• Importance of partnership approach– Throughout designing, implementing and evaluation– Trust, sense of ownership of policy target, consensus– Hurdle: avoid paternalism, imposed targets, poor negotiations
• Metrics usually outcome-based– Link to public management/medium term expenditure framework – Linked to incentive schemes (e.g. future budgets)
• Policy targets need to be relevant and balanced– Indicators appropriate, relevant, selective, outcome oriented, capture
cross cutting outcomes – Hurdle: If targets not believed to be achievable
• Implementation challenges– Accountability, use of reward schemes– Hurdle: Lack of local delivery mechanism
Lessons from policy targets
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Neuhoff, 13
What institutional set up is desirable?
• Multilateral– Example IMF/World Bank, CDM EB, GEF– Transparent, harmonised approach– All inclusive but less flexibility
• Bilateral– Using twinning – similar to Paris declaration– Cooperation across governance levels possible– Tailor approach & process to national circumstances– Requires robust framework to ensure transparency!
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 14
•Biogas,•Insulation
Com
plex
ity o
f te
chno
logy
Paraffin stoves
Solar PV
Large scale wind
Growing local supply chain
Absorptive capacity
CSP tower
CSP linear
International Synergies in Innovation and Use
Building local capacity:
•market e
xperience
•technical cooperatio
n …
CSP tower
CSP linear
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Neuhoff, 15
UseInnovation
Co
un
try
A
Use Innovation
Co
un
try
BInternational Synergies in Innovation and Use
1. Growing
local markets
andabsorptivecapacity
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Neuhoff, 16
Many countries have capacity to innovate
0
200
400
600
800
1,000
1,200
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Ann
ual P
aten
t Fi
lings
India
Netherlands
Russian Federation
France
Austria
Finland
Australia
United Kingdom
Poland
Canada
Republic of Korea
Germany
China
Japan
USA
ROW
Annual coal power patent filings, by Inventor country of origin, 1985-2007
0
200
400
600
800
1,000
1,200
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Ann
ual P
aten
t Fi
lings
India
Netherlands
Russian Federation
France
Austria
Finland
Australia
United Kingdom
Poland
Canada
Republic of Korea
Germany
China
Japan
USA
ROW
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Neuhoff, 17
International inventor collaboration on coal power stations
Oceania & Japan
Asia excl. Japan
Europe
North America
South America
Africa
1998-20022003-2007
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Neuhoff, 18
Use
Use
Innovation
Innovation
2. Innovating to adapt to local needs and resources
1. Growing
local markets
andabsorptivecapacity
3. Creating multiple experiences to drive innovation
Co
un
try
AC
ou
ntr
y B
Use
Use
Innovation
Innovation
3. Creating multiple experiences to drive innovation
2. Innovating to adapt to local needs and resources
1. Growing
local markets
andabsorptivecapacity
4. Committing
to low-carbon and social
objective fordirection and
market confidence
Co
un
try
AC
ou
ntr
y B
International Synergies in Innovation and Use
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 19
Tailor technology cooperation to country and sector
R&D Demonstration
Deployment Diffusion
High-income countries
Low-income countries
I Capacity to innovate
II Capacity to adopt and replicate
III Capacity to operate and maintain
VI Capacity to regulate
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Neuhoff, 20
… and choose appropriate mechanism
Contributes to
Actions and mechanisms
Capacity to innovate
Capacity to adopt and replicate
Capacity to operate and maintain
Capacity to regulate
Enabling environment
Financial assistance
R&D cooperation and technology partnerships
X X
IPR sharing agreements or royalty fund
X
Innovation centres X X Global fund on technology demonstration
X X
Technical assistance / capacity building
X X
Technology standards X X Regulatory cooperation and policy learning
X X
Bilateral policy implementation support
X X
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Neuhoff, 21
Xiliang Zhang, Tsinghua University
William Gboney, International Inst of Economics&Management
Anoop Singh, Indian Institute of Technology Kanpur
Haroldo Machado-Filho, Ministry of Science and Technology
Cambridge
Policy studies•China•Ghana•India•South Africa•Brazil•EU
Evaluatingpast projects
Technology cooperation
Financial support
Policy indicators
Defineobjective
Technicalassistance
Methodological Cambridge ECN IDDRI
Enabling environmentDomestic International
Domesticpolicies
IISD – past EBRD projects
IISD – past Worldbank policy work
Summary
Harald Winkler/Andrew Marquard, Cap-Town University
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Neuhoff, 22
Summary
• Enhance scale, scope and speed of implementation of domestic policies with climate (co-) benefits
• Intermediary outcome indicators to manage and share information on policies
• Anchoring in UNFCCC framework
www.climatestrategies.org www.electricitypolicy.org.uk
Neuhoff, 23
Time line
Dec
embe
r 08
Janu
ary
Febr
uary
Mar
ch
Apr
il
May
June
July
Aug
ust
Sep
tem
ber
Pol
icy
His
t.In
stS
um
Kic
k-of
f w
orks
hop,
Cam
Fin
al r
epor
t
Out
reac
h co
nfer
ence
, B
onn
UN
FC
CC
Bon
n
Countryworkshops
Interviews
Cop
enha
gen
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Neuhoff, 24
Country studies
• Possible policies/actions with climate (co-)benefits– What are barriers for their success?– Which stakeholders provide support?
• Suitable indicators/metrics– What are the indicators?– Who is responsible for monitoring, reporting, verification?– Are they robust?
• International cooperation– How to increase scale, scope, speed of implementation?– What are suitable/acceptable mechanisms?