Transcript Powerpoint - World Business Council for Sustainable Development

UNFCCC COP 13
Bali, 10 December 2007
The Business Day in Perspective
Moderator
Claude Fussler
former Program Director WBCSD
Special Advisor to the UN Global Compact
Bali Global Business Day, 10 December 2007
2
Once upon a time…
Voluntary initiatives
Type II partnerships
Walking the talk…
Now…
state of happiness,
the Creator, people and nature
live in harmony with each other.
It is about…
Business solutions
Policy framework
Inclusive, ambitious
Organizers
International Chamber of Commerce
World Business Council for Sustainable Development
Partners
BUSINESSEUROPE
the Confederation of European Business
International Emissions Trading Association
Federation of German Industries (BDI)
Partners
KADIN
Indonesian Chamber of Commerce and Industry
Nippon Keidanren
International Council of Forest
and Paper Associations
Partners
World LP Gas Association
International Council for Sustainable Energy
Our media partner
an extraordinary support from
and its great team!
No breaks
But refreshments
available all the time
in lobby
As of tomorrow:
www.youtube.com/balibusinessday
Question cards in your folder
Q & A
Thank You!
Sorry!...
Biography In your conference pack
Bali Global Business Day, 10 December 2007
16
Solutions and enabling policies
mitigation
session
Efficiency and demand management 
Carbo-neutral energy 
Forests and technical 
capture and storage
Solutions and enabling policies
mitigation
session
Development and cooperation 
adaptation
The Bali Stakes
Keynote Speakers
Yvo de Boer
Secretary General, UNFCCC
Björn Stigson
President, WBCSD
Nobuo Tanaka
Executive Director, IEA
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What can COP 13 deliver?
Keynote Speaker
Yvo de Boer
Secretary General, UNFCCC
Bali Global Business Day, 10 December 2007
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Enhance business solutions
Keynote Speaker
Björn Stigson
President, WBCSD
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Success factors for mitigation
Keynote Speaker
Nobuo Tanaka
Executive Director, IEA
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Success Factors for
Mitigation
Stimulating markets to outpace climate risks
Nobuo Tanaka
Executive Director
International Energy Agency
Bali Global Business Day
10 December 2007
INTERNATIONAL ENERGY AGENCY
© OECD/IEA - 2007
AGENCE INTERNATIONALE DE L’ENERGIE
Two Possible Energy Futures
 The WEO Reference Scenario
 Our current trajectory: under-invested, dirty and
vulnerable
 Leads to a future even worse than projected just one
year ago
 Consistent with an increase in average global
temperature of up to 6°C
 The 450 Stabilisation Case
 Coincides with the most ambitious of the IPCC’s
scenarios
 Would limit the increase in average global
temperatures to 2.4°C
 Unprecedented strong and immediate policy action
would be essential, associated costs very high
 Achievable or Science Fiction ?
© OECD/IEA - 2007
Reference Scenario:
World Primary Energy Demand
billion tonnes of oil equivalent
18
Other renewables
Biomass
Hydro
Nuclear
Gas
Oil
Coal
16
14
12
10
8
6
4
2
0
1980
1990
2000
2010
2020
2030
Global demand grows by more than half over the next quarter of a
century, with coal use rising most in absolute terms
© OECD/IEA - 2007
Global CO2 Emissions: Historical and
Future
Cumulative Energy-Related CO2 Emissions
United States
European Union
Japan
China
1900-2005
2005-2030
India
0
100
200
300
400
500
billion tonnes
Although China and India produced just 10% of total global emissions since
1900 they will represent 56% of the increase to 2030. By that time per capita
emissions in China will approach those of OECD Europe.
© OECD/IEA - 2007
CO2 Emissions - 450 Stabilisation Case
Achievable or Science Fiction ?
45
Energy-Related CO2 Emissions
42 Gt
CCS in industry – 3%
CCS in power generation - 9%
Nuclear – 13%
Renewables – 20%
Switching from coal to gas - 8%
End Use electricity efficiency -17%
Reference Scenario
40
Gt of CO2
35
30
25
End Use fuel efficiency – 30%
27 Gt
450 Stabilisation Case
20
23 Gt
15
10
2005
2010
2015
2020
2025
2030
By 2030, emissions are reduced to some 23 Gt,
a reduction of 19 Gt compared with the Reference Scenario
© OECD/IEA - 2007
Average Annual Power Generation
Capacity Additions in the 450
Stabilisation Case, 2013-2030
Coal CCS
22 CCS coal-fired plants (800 MW)
20 CCS gas-fired plants (500 MW)
Gas CCS
30 nuclear reactors (1000 MW)
Nuclear
Hydropower
2 Three Gorges Dams
Biomass and waste
400 CHP plants (40 MW)
Wind
17 000 turbines (3 MW)
Other Renewables
0
10
20
30
GW
40
50
60
A large amount of capacity would need to be retired early,
entailing substantial costs
© OECD/IEA - 2007
“We will act with resolve and urgency to meet our
“Technology, energy efficiency and market mechanisms,
shared multiple objectives of reducing greenhouse gas
including emission trading systems or tax incentives, are key to
emissions, improving the global environment, enhancing
mastering climate change as well as enhancing energy security.”
energy security and cutting air pollution in conjunction
with our vigorous efforts to reduce poverty“
-- from “G8 Heiligendamm Communiqué”
-- from “G8 Gleneagles Communiqué”
“We will move forward with timely implementation of the
Gleneagles Plan of Action. We have instructed our relevant ministers
to continue the Dialogue on Climate Change, Clean Energy and
Sustainable Development and report its outcomes to the G8 Summit
in 2008”
-- from “G8 St. Petersburg Communiqué”
INTERNATIONAL ENERGY AGENCY
© OECD/IEA - 2007
AGENCE INTERNATIONALE DE L’ENERGIE
Energy Efficiency: Support the IEA’s I3 Initiative
Implement ! Implement! Implement !
Energy
Energy Use
Use
in
in the
the New
New
Millennium
Millennium
ENERGY
INDICATORS
Average annual percent change
3%
Trends
Trends in
in IEA
IEA
Countries
Countries
Hypothetical energy use without energy efficiency improvements
2%
Energy
efficiency
improvements
Energy
efficiency
improvements
1%
Actual energy use
Actual energy use
0%
1973 - 1990
1990 - 2004
Since 1990, the rate of energy efficiency improvement in IEA
countries has been less than 1% per year – much lower than in
previous decades. We must - and we can - do better!
Source: Energy Use in the New Millennium (IEA, 2007)
©©OECD/IEA
OECD/IEA2007
2007
In support of the G8 Plan of Action
Trends in IEA
Countries
ENERGY
INDICATORS
©©OECD/IEA
2007
OECD/IEA- 2007
Average annual percent change
Energy Use
in the New
Millennium
Energy Indicators: Factors Affecting
Manufacturing Energy Use, IEA19
4%
3%
2%
1%
0%
-1%
-2%
1990-1995
1995-2000
2000-2004
1990-2004
Actual energy use
Activity
Structure
Energy efficiency
There has been a strong decoupling of energy use from
manufacturing output, particularly in metal products, chemicals, nonmetallic minerals and paper and pulp.
Why Doesn’t Someone Pick up That 20
Euro Note On The Sidewalk?
“It looks like it’s monopoly money”
 market failures
Mind
the Gap
 principal agent problem
 asymmetric information
“I have a sore back”
 bounded rationality and limited energy costs
“I’ll have to declare it on my income taxes”
 inefficient government laws and regulation
Quantifying
Principal-Agent
Problems in
Energy Efficiency
© OECD/IEA - 2007
Energy efficiency potential is
trapped beneath these barriers!
In support of the G8 Plan of Action
Mitigation Policy & Technology
Avoiding 1 billion tonnes of CO2 per Year
Coal
Replace 300 conventional, 500-MW coal power plants
with “zero-emission” power plants, or ...
CO2 Sequestration
Install 1000 Sleipner CO2 sequestration plants
Wind
Install 70 x current German wind generation in lieu of
unsequestered coal
Solar PV
Install 1090 x current US solar generation in lieu of
unsequestered coal
Nuclear
Build 140 1-GW power plants in lieu of unsequestered
coal plants
Efficient lighting
Replace incandescent lamps by CFLs = 0.5 Gt
Replace other lamps with efficient options = 0.5 Gt
Adapted from Pacala & Socolow, Science 2004
Early market signals and technology R&D can
work together to assist the market transition – Policies
and R&D are inseparable!
INTERNATIONAL ENERGY AGENCY
© OECD/IEA - 2007
AGENCE INTERNATIONALE DE L’ENERGIE
Public Sector Energy R&D in IEA
Countries
20000
15%
18000
13%
16000
14000
9%
12000
10000
7%
8000
5%
6000
Share of Energy R&D in Total R&D
Million US$ (2006 prices and PPP)
11%
3%
4000
1%
2000
0
-1%
1974
Energy efficiency
1978
Fossil fuels
1982
1986
Renewable energy sources
1990
1994
Hydrogen and fuel cells
1998
Other
2002
Nuclear
2006
Share of energy R&D in total R&D
R&D investment is not adequate given the magnitude of the climate challenge.
Government spending on energy R&D has fallen, while the private-sector is focused
on projects with short-term payoffs
INTERNATIONAL ENERGY AGENCY
© OECD/IEA - 2007
AGENCE INTERNATIONALE DE L’ENERGIE
The Institutional Challenge:
What will be required?


The support and cooperation of industry

A post-2012 Framework that:

Involves participation of all major emitters

Addresses cost uncertainty, promotes flexibility and
Good governance, as this will be critical to minimising
risk and attracting investment
accommodate differing national circumstances

Considers sectoral approaches, as these could:
•
•

broaden greenhouse gas reduction actions
ease concerns for trade-exposed energy-intensive
industries
Appropriate bodies, such as the IEA, to provide
advice and monitor and report against progress
INTERNATIONAL ENERGY AGENCY
© OECD/IEA - 2007
AGENCE INTERNATIONALE DE L’ENERGIE
Upcoming Publication: Energy
Technology Perspectives 2008
 How to get there:
ENERGY
TECHNOLOGY
PERSPECTIVE
2 0S0 8
 Research, Development and Demonstration
policies
 Technology learning and deployment
Scenarios &
 Technology transitions
Strategies
to 2050
 Investment needs and policy cost
 Energy and CO2 emission indicators (efficiency)
 Consequences for consumers
 Scenario analysis
 Country level analysis for G8+5
INTERNATIONAL
ENERGY
In support of the G8 Plan of Action
© OECD/IEA - 2007
AGENCY
The Bali Stakes
Keynote Speakers
Yvo de Boer
Secretary General, UNFCCC
Björn Stigson
President, WBCSD
Nobuo Tanaka
Executive Director, IEA
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Opportunities in Energy Efficiency
Moderator
Teresa Presas, President, Confederation of European Paper Industries
Expert view: Low-carbon scenarios for Germany
Klaus Mittelbach, Head of Environment and technology, BDI
Panel
Paul Peeters, Senior Vice President, Philips Lighting Asia Pacific Region
Doug Musyka, President, DuPont Greater China
Gert-Jan Koopman, Director, DG Enterprise, European Commission
Frances Beinecke, President, Natural Resources Defense Council
Policy Review
Nick Campbell, Chair, ICC Task Force on Climate Change
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Low Carbon scenarios for Germany
Expert view:
Klaus Mittelbach
Head of Environment and Technology
BDI
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Opportunities in Energy Efficiency
Moderator
Teresa Presas
President, Confederation of European Paper Industries
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Opportunities in Energy Efficiency
Panel
Paul Peeters
Senior Vice President, Philips Lighting Asia Pacific Region
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Opportunities in Energy Efficiency
Panel
Doug Musyka,
President, DuPont Greater China
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Question cards in your folder
Q & A
Opportunities in Energy Efficiency
Panel
Gert-Jan Koopman,
Director, DG Enterprise, European Commission
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Opportunities in Energy Efficiency
Panel
Frances Beinecke
President
Natural Resources Defense Council
Bali Global Business Day, 10 December 2007
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Opportunities in Energy Efficiency
Policy Review
Nick Campbell
Chair
ICC Task Force on Climate Change
Bali Global Business Day, 10 December 2007
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Climate Policy and the Public
Expert view
Doug Miller
President, GlobeScan Incorporated
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Participating Countries (21*)
22,000 in-person / telephone interviews - June-July 2007
**Average of 21 countries. Asked in Egypt
* Urban samples in 8 countries
48
POLL
Views of Action Needed to Reduce
Human Impact on Climate Change
Average of 21 Countries, 2007
Base: Representative samples of 22,000 adults in 21 countries
49
M3. As you may know there is some discussion these days about whether it is necessary
to take steps to reduce the impact of human activities that are thought to cause global
warming or climate change. Which of the following . . .
Position Held on Limiting Climate Change Gas
Emissions in Less Wealthy Countries
By Country, 2007
The white space in
this chart
represents
“DK/NA."
Base:
Representative
sample of 22 000
adults in 21
countries
50
Wealthy Countries Provide Less Wealthy Countries with Financial
Assistance / Technology; Less Wealthy Countries Limit Emissions of
Climate Changing Gases along with Wealthy Countries
Average of 21 Countries, 2007
Base: Representative sample of 22 000 adults in 21 countries
51
Support for Higher Taxes on the Most Harmful
Types of Energy So That Individuals/Industry
Use Less
“Strongly” and “Somewhat Favour,” Average of 21 Countries, 2007
*Based on subsample results.
52
Support for Higher Taxes on the Most Harmful
Types of Energy So That Individuals/Industry
Use Less
2007
*One-half of respondents
who said they “strongly”
or “somewhat opposed”
energy tax or did not give
an answer were then
asked whether they
would support an energy
tax if the revenues of the
tax were devoted only to
increasing energy
efficiency and developing
energy sources that do
not produce climate
change.
Base: Representative
sample of 22 000 adults
in 21 countries
53
Ready to Make Significant Changes to Lifestyle
to Help Prevent Climate Change
“Agree” vs “Disagree,” by Country, 2007
The white space in this chart
represents “DK/NA.”
54
Implications of Findings
• Unprecedented global constituency for immediate action on
human causes of climate change
• Support for action by ALL countries in parallel
• Strong support for funding and technology transfer to support
action in less-wealthy countries
• Pollster’s view: a well-designed and communicated carbon tax is
saleable in all countries surveyed
• Citizens and consumers see themselves as part of the solution
• A world-wide FOLLOWERSHIP exists; a time for LEADERS
Details under “News Centre” on:
www.GlobeScan.com
Towards Carbon Neutral Energy
Moderator
Laurent Corbier, Chair, ICC Commission on Environment & Energy
Panel
Teruaki Masumoto, President, Tokyo Electric Power Company (TEPCO)
Andrew Richards, Executive Manager, Corporate Affairs & Government,
Pacific Hydro
Prashant Modi, FICCI
Harlan Watson, Senior Climate Negotiator, US Department of State
Jonathan Lash, President, World Resources Institute
Policy Review
David Hone, Climate Change Adviser, Royal Dutch Shell
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Towards Carbon Neutral Energy
Moderator
Laurent Corbier
Chair, ICC Commission on Environment & Energy
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Question cards in your folder
Q & A
Towards Carbon Neutral Energy
Panel
Teruaki Masumoto
President, Tokyo Electric Power Company (TEPCO)
Bali Global Business Day, 10 December 2007
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Towards Carbon Neutral Energy
Panel
Andrew Richards
Executive Manager, Corporate Affairs & Government,
Pacific Hydro
Bali Global Business Day, 10 December 2007
60
Towards Carbon Neutral Energy
Panel
Prashant Modi
FICCI
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Towards Carbon Neutral Energy
Panel
Harlan Watson
Senior Climate Negotiator
US Department of State
Bali Global Business Day, 10 December 2007
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Towards Carbon Neutral Energy
Panel
Jonathan Lash
President
World Resources Institute
Bali Global Business Day, 10 December 2007
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Towards Carbon Neutral Energy
Policy Review
David Hone
Climate Change Adviser
Royal Dutch Shell
Bali Global Business Day, 10 December 2007
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What’s the same? What’s different?
The Technology Pathway
Discovery and
Development
100
80
Demonstration phase
60
Deployment phase
40
More cost competitive
Incentive
20
Competing
technology
Earlier deployment
0
1
10
100
Number of installations / Products
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1000
The iPhone
R&D is very well funded in the high
technology sector;
100
•
•
Extreme competition
Spinoffs from other government initiatives.
80
Early adopters pay for this
60
Cool new features
drive early deployment
40
More cost competitive
New features
20
Competing
technology
Earlier deployment
0
1
10
100
Number of installations / Products
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1000
New Energy Technologies
Probably need to
refocus and expand
R&D for energy.
100
80
Not many early adopters
so the demonstration
phase will need help.
60
Purchase incentives
and/or the CO2 market
drive(s) early deployment
40
More cost competitive
20
Purchase incentives
and/or CO2 price
Competing
technology
Earlier deployment
0
1
10
100
Number of installations / Products
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1000
A focussed policy approach
Power Generation /
Industry &
Manufacturing
Discover &
Develop
Demonstrate
Transport
Commercial &
Domestic (Buildings)
Broad energy production and use R&D support
• Support for infrastructure
(e.g. grids & pipelines)
• Support for advanced
fuel development
• Urban planning decisions.
• Fiscal support for largescale CCS
demonstrations
• Fiscal support for early
2nd generation biofuel
manufacture.
• Encouraging radical
design
• Education and awareness.
• Public transport
Deploy
• “Cap-and-Trade”
Policies Focus on;
• CCS rules and
recognition
• Vehicle efficiency
• Renewable Energy
Certificates
• “Fast-track” planning
• New fuels (e.g. biofuels)
• Consumer behaviour and
vehicle use
• Efficiency standards
(appliances, air-con)
• Use of project
mechanisms linked to
GHG market.
• Encouraging
“electrification”.
Lunch Break
Dr. Mari Elka Pangestu
Short
!
Minister of Trade
Indonesia
13:00 to 14:10
Buffet
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Session 3 Focus
 14:20 – 15.30 hrs
 Large Scale Carbon Control
• Opportunities in conserving
natural carbon sinks and in longterm capture and storage
techniques
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Session 3 Participants
Moderator: James Griffiths, WBCSD
Panelists:
 Business Solutions & Policy Options:
• Ernesta Ballard, SVP Weyerhaeuser - capture via
sustainable forest management & forest products
• Preston Chiaro, CEO Energy Products Group Rio
Tinto – industrial CCS projects
 NGO perspective: Toby Janson-Smith, Senior Director
Conservation International
 Government perspective: Prof Emil Salim, Advisor to
President of Indonesia, Head of Delegation
Policy Reviewer: Ian Emsley, Group Advisor Anglo
American & Chair ICC UK Committee on Environment &
Energy
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Context – Natural Carbon Sinks
IPCC 4th Assessment Report:
15-20 % of global CO2 emissions caused
by land use change, primarily
deforestation for agriculture
Yet forestry can make very significant
contribution to low cost mitigation that
provide synergies with adaptation &
sustainable development, and mitigation
options such as storage in harvested
wood products, product substitution &
bioenergy
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Context – Biomass energy
WBCSD – Sustainable Forest Products
Industry, Carbon & Climate Change – key
messages for policy-makers
“Biomass energy is fundamentally
different from fossil fuel energy
because biomass recycles carbon to
the atmosphere, whereas fossil fuels
introduce “new” carbon. This is why
biomass from sustainably managed
forests is called “carbon neutral”.
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Forest carbon sinks - policy options
1.
Protect the economic value of trees
2.
Mandate certification to sustainable forestry
standards
3.
Demand mutual recognition among different
certification systems.
4.
Reduce financial risk
5.
Credit sustainable forestry and value chain
products.
6.
Let the marketplace work.
•Bali Global Business Day, 10 December 2007
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Context – Long term Carbon
Capture & Storage
IPCC Special Report:
By 2050, given technical limitations, around
20-40 % of global fuel CO2 emissions
could be suitable for capture, including
30-60 % of electricity generation and 3040 % of industrial CO2 emissions
IEA Technical Report:
CCS in power generation sector has the
potential to contribute to reductions of
about 4.4 GT CO2 by 2050
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2. Preston Chiaro, Rio Tinto
Business solutions
• Energy efficiency
• Low carbon energy (renewables,
CCS)
• Adaptation
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Policy Options - CCS
• Comprehensive (all sectors, all
solutions, global)
• Governments must set CO2
pricing framework(s)
• Set level playing field
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Non Governmental Perspective
Toby Janson-Smith, Conservation
International
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Opportunities for Reducing
Emissions from Deforestation
• 18%-25% of global GHG emissions
• Forestry must supply ~35% of required offsets to keep <+2°C by
2030 at <€40 per tCO2 (McKinsey, 2007)
• Community ecosystem service + biodiversity benefits
• Developing-country emissions reduction commitments
• US Lieberman-Warner bill: 2.5% set aside for RED (~$1b/yr)
• Project-based RED must complement national-level schemes
Importance of Forest Carbon
Standards
• Key issues:
–
–
–
–
–
Additionality
Leakage
Measurement & Monitoring
Permanence
Ancillary social & environmental impacts
• Climate, Community & Biodiversity Standards
• Voluntary Carbon Standard
Addressing the Permanence
Challenge
• The defining issue for AFOLU and CCS projects
• Temporary credits not well received/used
• Immature market for insurance products
• VCS pooled buffer approach could point the way
– Credible (atmospheric integrity)
– Workable (simple, inexpensive & easy to administer)
– Project-friendly (only ~5-10% loss of discounted carbon
revenues)
– Investor-friendly (fungible credits + no performance risk/liability)
Government perpective
Professor Emil Salim,
Head of Indonesian Delegation,
Advisor to the President of
Indonesia
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Discussion
BUSINESS OPPORTUNITIES
TO COMBAT CLIMATE CHANGE
By Emil Salim
Head of the Indonesian Delegation
Nusa-Dua, Bali, 10 December 2007
[email protected], [email protected]
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PUBLIC & PRIVATE FUNDING
1. GEF has allocated US$7.4 billion with co-financing
of US$ 29 billion for 1,980 projects in 160
developing countries;
2. Kyoto Protocol’s market-based mechanisms is the
clean-development-mechanism (CDM) that
enables green-house-gas reducing projects and
contribute to sustainable development to earn
“certified emission reduction” (cer) credits; There
are 840 registered CDM projects in 49 countries
with 1,800 projects in the pipe line
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TO MEET THE INCREASING NEEDS FOR FUNDS
1. To combat climate change, emission of annual
CO2e must be stabilized at 450-550 ppm at an
estimated cost of 1% global GDP;
2. Developed countries must make “deeper cuts” in
CO2e emissions and developing countries must
create co-benefits reducing CO2e emissions
through sustainable development;
3. Technology transfer and innovative funding is
required through public and private funds;
BUSINESS OPPORTUNITIES
1. Boost CDM in energy conservation/efficiency,
promote adoption of renewable energy, reduce
long term costs of low GHG emitting energy
technology, promote sustainable transport;
2. Simplify Forestation CDM procedure for small
scale projects; enhance reforestation projects;
3. Introduce “reduction of emissions from
deforestation, conservation and degradation;
4. Explore Carbon-Capture-Storage technology;
PROMOTE BUSINESS INVOLVEMENT
1. Developing countries can reduce emissions of CO2epath
by following path of sustainable development through
transfer of technology;
2. CDM is a tool of transfer accompanied by P-to-P
cooperative arrangements to cut time horizon to reinvent the wheel;
3.Technology transfer with capacity building must be
implemented simultaneously to create co-benefits
reducing CO2e through sustainable development.
Discussion
Q & A Panelist
Q & A Participants
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Policy Review
Ian Emsley, Anglo American &
ICC UK Committee on
Environment & Energy
1. Forest & Forest Product Carbon
2. Carbon Capture & Storage
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Policy Review
Forests & Forest Products Carbon
1. Adequate supplies of wood and
recovered fiber
2. Forest products value chain benefits
3. Bio mass-based technologies
4. Reduce cost of capital
5. Remove regulatory barriers to
combined heat & power potential
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Policy Review
Forests & Forest Products Carbon
6. Avoid unintended policy
consequences
7. Recognized carbon stored in forest
products
8. Minimize land competition
9. Encourage sustainable forest
management
10. Market forces
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Policy Review
Carbon Capture and Storage
 Many countries depend on coal and
will continue to use it
 CCS is needed if coal is to be used in
a climate-friendly manner
 Early action on CCS is needed to
avoid carbon ‘lock-in’ and will not
happen without policy support
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Policy Review
Requirements for CCS early action:
1. Regulatory Framework
 Incentives (carbon credits, price
guarantees, feed-in tariffs, capital grants,
etc)
 Legal Clarity
 Safety, health and environmental
regulation in place
 Site selection and monitoring / reporting
protocols
 Assumption of long term carbon liabilities
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Policy Review
2. Demonstration Projects
Needed for:
 Technology reliability
 Cost reduction
 Infrastructure development
 Public acceptance
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Development and Cooperation
Moderator
Andrei Marcu, President, International Emissions Trading Association (IETA)
Panel
Rudi Fajar, President Director Riaupulp, APRIL Group
Dr. Gail Kendall, Director, Group Environmental Affairs, CLP Holdings
Limited
Fernando Tudela, Under Secretary for Planning and Environmental Policy,
Ministry for Environment and Natural Resources, Mexico
Katherine Sierra, Vice President for Sustainable Development, World Bank
Peter Goldmark, Program Director, Climate & Air, Environmental Defense
Fund
Policy Review
Adam Kirkman, Program Manager, Energy and Climate Focus Area,
WBCSD
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96
Development and Cooperation
Moderator
Andrei Marcu
President
International Emissions Trading Association (IETA)
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97
Question cards in your folder
Q & A
Development and Cooperation
Panel
Rudi Fajar
President director Riaupulp, APRIL Group
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99
Development and Cooperation
Panel
Dr. Gail Kendall
Director, Group Environmental Affairs
CLP Holdings Limited
Bali Global Business Day, 10 December 2007
100
Development and Cooperation
Panel
Fernando Tudela
Under Secretary for Planning and
Environmental Policy, Ministry for Environment
and Natural Resources, Mexico
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101
Development and Cooperation
Panel
Katherine Sierra
Vice President for Sustainable Development
World Bank
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102
Development and Cooperation
Panel
Peter Goldmark
Program Director, Climate & Air
Environmental Defense Fund
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103
Development and Cooperation
Policy Review
Adam Kirkman
Program Manager, Energy and Climate Focus Area
WBCSD
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104
Policies to enhance business
participation and investment
UNFCCC COP 13
Bali, 10 December 2007
Evolution of the Debate - 2000
Mitigation
Adaptation
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106
Post-2012 debate in 2007
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107
How do we attract private capital?
1.
2.
3.
Understand how and why business
invests
Recognise that raising money is not the
problem – directing the flow toward the
development, demonstration and
deployment of clean energy technologies is
the key
Align policy, mechanisms, tools with
commercial conditions in which
business invests
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Need to understand how and why a
business chooses to invest
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Decision made in dynamic, highly
differentiated, competitive market
Every decision relies on commercial returns
Money always flows to quickest returns
Low carbon projects among more complex and
risky forms of investment
Different screening mechanisms, risk appetites,
appraisal criteria
Whole host of risks to be taken into account
A great opportunity for one investor can be a
step too far for another
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Harness the power of the markets
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Political risks, legal frameworks, structures all
influence pace of investment in the market
In markets confidence is important
Determines potential participants and scope of
investment
Policy uncertainty increases risks of achieving
a commercial return
While uncertainty prevails bulk of capital will
flow to traditional energy sources, or remain
uncommitted until definitive policies emerge
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What policy is needed?
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International policy effort must align with the
long range business investment horizon
Supportive regulation and governance to
encourage business to invest for the long term
Dismantle trade barriers affecting the diffusion
of technologies
Manage IPR issues to balance the need to
incentivise innovation and support investment
Clear and strong expectation of CO2 price
Create predictable future demand for key
technologies to drive innovation and
competition
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What can governments in
developing countries do?
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Build institutional capacity to translate energy
and climate strategies into integrated
development plans
Stable and transparent regulatory regimes
Expand and aggregate (project portfolios) to
standardize and streamline
Support investment in SMEs so they can own
and operate projects and support deployment
Technology cooperation through competitive
business to business transactions to scale up
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What can we do together - public
and private
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Less developed countries need innovative
Clean Energy Investment Frameworks
Engagement in G8 Gleneagles Dialogue
MDBs – High potential to leverage private sector
investment in developing countries
Public-private financing mechanism to develop
pipeline of clean energy projects
 buy down incremental investment costs
 grants and concessional loans
 increase creditworthiness of the future carbon cash flows
through partial guarantees
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Have to get this right….
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Must get technologies into developing world
Rich countries need to help poor countries
Business has capacity to help but needs
policy certainty that brings stability, confidence
in markets and facilitates long-term
investment
If we get it right it can be used to alleviate
poverty, create jobs and build sustainable
wealth
Reduces emissions, protects and conserves
energy resources, and crucially the
ecosystems of the developing world
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www.balibusinessday.org
Climate Policy,
Business Engagement, Progress
Moderator
Claude Fussler, former Program Director, WBCSD
Closing exchange
Yvo de Boer, Secretary General, UNFCCC
Steve Lennon, Delegation Chairman, ICC
Mohamad S. Hidayat, President, Indonesian Chamber
of Commerce and Industry (KADIN)
Björn Stigson, President, WBCSD
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116
Climate Policy,
Business Engagement, Progress
Yvo de Boer
Secretary General, UNFCCC
Bali Global Business Day, 10 December 2007
117
Climate Policy,
Business Engagement, Progress
Steve Lennon
Delegation Chairman
ICC
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118
Climate Policy,
Business Engagement, Progress
Mohamad S. Hidayat
President
Indonesian Chamber of Commerce and Industry
(KADIN)
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119
Climate Policy,
Business Engagement, Progress
Björn Stigson
President
WBCSD
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120
Up to the challenges?
Or not yet?
Dr. Gro Harlem Brundtland
UN Special Envoy on Climate Change
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121
Closing Statement
Rachmat Witoelar
Minister Of Environment
Republic of Indonesia
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122
Caring for Climate dinner
18:30
19:30
Cocktails
Dinner
A few last minute
registrations possible
www.balibusinessday.org
UNFCCC COP 13
Bali, 10 December 2007
Thorsten Arndt
Lucy Jasmin
Mary Kelly
Kija Kummer
Marisa Low
Christian Kornevall
Carlos Busquet
Stephanie Held
Wendy Poulton
Neil Franklin
state of happiness,
the Creator, people and nature
live in harmony with each other.
May you all share it!