Transcript International Support for Domestic Climate Policies in

International Support for Domestic Action
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Mechanisms to Facilitate Mitigation in Developing Countries
Karsten Neuhoff
DIW & Climate PolicyInitiative
Copenhagen 14/12/09
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Federal Government Plan
“The National Plan on
Logistics and Transport:
a policy that can promote a
significant change in the modal
split in the country”
The reduction of freight by
road has potential to mitigate
GHG:
10 to 20% of freight emissions
Workshop conducted
to assess how to
achieve the target.
Source:PNLT,
2007
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
3. International
mechanisms
Capacity
Building
Technology
Cooperation
1. Low-carbon
- emission
Development
plan
Strategy
2. NAMA
Autonomous
mitigation action
Domestic
4. Reporting
International
International Verified
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Role of Public Sector
Role of Private
Sector
Domestic
International
Capacity building / Technical assistance
Capacity building
Technical assistance
New business
practises
Remove regulatory
barriers
Experience /
Technology
Technology /
Skills
Investment Costs Power sector
$ billions
in 2030
250
Additional
fuel supply
Energy
cost savings
Subsidy removal
Carbon pricing
Carbon markets
Public transfers
Incremental
costs
Support incremental
costs
Offset mechanisms (e.g. CDM)
200
Shift operation
costs to
investment
150
Shift
finance /
investment
100
Technical assistance
Transparency, outside
commitment
Loans
Risk guarantees
50
Reference
Mitigation Scenario
(Conventional
technology & practises)
(Low carbon
technology & development)
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Facilitating access to finance
Contribution to
investment and
operation
Public Finance
Mechanism
Up-front grant
- Standard
Technical assistance
grants
- ‘Smart’ grants
Funding during
operation
Provision of equity
- Private equity
- Venture capital
Direct support
International to
project
GEF grants
Other bilateral and
multilateral DFIs
Risk coverage
- Full or partial guarantee
- Policy to cover specific
causes of non performance
or all
- Other financial products
International
to national
National to
project
ODA
Investment support
Grant linked to
continuous
delivery (finance
+regulatory
stability)
*Incremental
payment to
renewable
*Removal of energy
subsidies
* Carbon tax/cap
and trade scheme
ADB Clean Energy
PE fund
n/a
Carbon Trust VC
fund
IFIs e.g. EBRD, IFC
IMF and WB
loans
Offset mechanisms
(CDM)
WB support
Provision of debt
- Loans
- Credit lines
Indirect support
MIGA political risk
insurance
WB/IFC Partial
Credit and
Partial Risk
Guarantees
Export credit
agency guarantees
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Mutlilateral
Finance
Grant
Project
Upfront
Country
Bilateral
Project
Country
Majority of grants
provided bilaterally
Operation
Equity
Debt
Illustrative
Majority of finance provided
with multilateral mechanisms
Match
needs
of
lowcarbon
development
Guarantee
Carbon revenue
• Auction revenue
• Aviation&shipping • Risk management
• Offsets
Increasing role for
facilitating
access to finance?
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
In Support of Programme Implementation and Management
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
LEVEL OF REPORTING
NATIONALLY
DEFINED & REPORTED
NATIONALLY DEFINED &
INTERNATIONALLY REPORTED
 Increased local ownership/participation
 Tailored to specific requirements
INTERNATIONALLY
DEFINED & REPORTED
 Facilitates benchmarking
 Ensures difficulties reported
 Accountability to third parties
 Contributes to international learning
 Accountability to cooperation partner
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
3. International
mechanisms
Capacity
Building
Technology
Cooperation
1. Low-carbon
- emission
Development
plan
Strategy
2. NAMA
Autonomous
mitigation action
Domestic
4. Reporting
International
International Verified
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
International Support for Domestic Climate Policies in
Developing Countries, Climate Policy 9.5
Editor: Karsten Neuhoff
Six case studies explore the domestic drivers and barriers for policies with climate (co-)benefits in
developing countries and show that international support can help to overcome these constraints
by providing additional resources for incremental policy costs, technical assistance, and
technology cooperation to build local capacity.
EDITORIAL
Understanding the roles and interactions of international cooperation on domestic climate policies, Karsten Neuhoff
SYNTHESIS
Using intermediate indicators: lessons for climate policy, James Cust
Policy targets: lessons for effective implementation of climate actions, Sarah Lester, Karsten Neuhoff
A history of conditionality: lessons for international cooperation on climate policy, Maike Sippel, Karsten Neuhoff
COUNTRY STUDY
Brazilian low-carbon transportation policies: opportunities for international support, Haroldo Machado-Filho
Policy and regulatory framework for renewable energy and energy efficiency development in Ghana, William Gboney
Domestic climate policy for the Indian steel sector, Umashankar Sreenivasamurthy
Climate co-benefit policies for the Indian power sector: domestic drivers and North-South cooperation, Anoop Singh
Concentrated solar power in South Africa, Kate Grant
China’s wind industry: policy lessons from domestic government interventions and international
Support, Xiliang Zhang, Shiyan Chang, Ruoshui Wang, Molin Huo
OUTLOOK
Twinning: lessons for a South-North climate policy context, Zsuzsanna Pato
INTERNATIONAL SUPPORT FOR DOMESTIC ACTION
Climate Strategies’ Contact Details:
UK - Managing Director: Jon Price ([email protected])
US - Research Director: Thomas L. Brewer
Secretariat: Climate Strategies c/o University of Cambridge
13-14 Trumpington Street Cambridge, CB2 1QA, UK
+44 (0) 1223 748812
www.climatestrategies.org
Climate Strategies aims to assist governments in solving the collective action problem of climate change. It
connects leading applied research on international climate change issues to the policy process and to public
debate, raising the quality and coherence of advice provided on policy formation.
We convene international groups of experts to provide rigorous, fact-based and independent assessment on
international climate change policy. To effectively communicate insights into climate change policy, Climate
Strategies works with decision-makers in government and business, particularly, but not restricted to, the
countries of the European Union and EU institutions.
Climate Strategies is grateful for funding from the government of Australia, Agence de l'environnement et de la
maîtrise de l'énergie (ADEME) in France, Ministry of Foreign Affairs (MFA) in Norway, Swedish Energy Agency,
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) in Germany, Department for Environment, Food and
Rural Affairs (DEFRA), the Office of Climate Change (OCC), Department for International Development (DFID) in
the UK, The Carbon Trust in the UK, Corus Steel, Center for International Public Policy Studies (CIPPS) in Japan,
European Climate Foundation (ECF), and the German Marshall Fund of the United States.