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


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


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


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


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


Scope for international cooperation

Anoop Singh IIT Kanpur

• Adoption of efficient technology • Reduction in Coal Consumption per kWh generated• Network loss reduction

Metrics


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


Scope of international cooperation

Haroldo Machado Filho

• beyond minus 18% of the BAU scenario (CCAP study, 2005)

Metric


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


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


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


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


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


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!


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


Neuhoff, 15

UseInnovation

Co

un

try

A

Use Innovation

Co

un

try

BInternational Synergies in Innovation and Use

1. Growing

local markets

andabsorptivecapacity


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


Neuhoff, 17

International inventor collaboration on coal power stations

Oceania & Japan

Asia excl. Japan

Europe

North America

South America

Africa

1998-20022003-2007


Neuhoff, 18

Use

Use

Innovation

Innovation

2. Innovating to adapt to local needs and resources

1. Growing

local markets


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


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


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


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


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


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


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


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?

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