1. Beyond CDM: Options for the wind industry 21 April 2010, Warshaw EWEC 2010 Marion Vieweg

2. Beyond CDM: options for the wind industry Outline Which options are discussed in the climate negotiations that could enhance wind energy beyond CDM? Sectoral approach es NAMAs Defi- nition Defi- nition Road testing China Road testing China Status Defi- nition Defi- nition Options Status

3. Beyond CDM: options for the wind industry What are sectoral approaches? Different options are discussed in the various negotiation texts in 2009 1 : … (e) Sectoral targets, national sector-based mitigation actions and s t a n d a r d s, a n d n o - l o s e s e c t o r a l c r e d i t i n g b a s e l i n e s ; … 1 FCCC/AWGLCA/2009/8, B.1.73

4. Beyond CDM: options for the wind industry Sectoral crediting Countries voluntarily pledging sectoral crediting baselines (dynamic, e.g. t CO 2 /t cement) Based on detailed, national, transparent analysis for each sector assessing feasibility and cost-effectiveness “No lose”: credits (to government) for reductions beyond baseline, no penalty if not achieved Governments have to pass on incentive to private entities (they decide how to do it) Needs demand for credits, i.e. stringent reduction commitments by other countries

5. Beyond CDM: options for the wind industry Principle of sectoral crediting The concept

6. Beyond CDM: options for the wind industry Electricity sector scenarios

7. Beyond CDM: options for the wind industry Key findings Data quality in power generation is rather good Large uncertainty of future energy demand  intensity target Current policies already very ambitious Domestic institutional setup and involvement of the big utility companies is key Analysis needed on national implementation  Benefits for wind potentially high, but depend on sector boundary and national implementation! Full results: see www.sectoral.orgwww.sectoral.org

8. Beyond CDM: options for the wind industry Status of negotiations on ‘sectoral’ Mostly discussed type of sectoral approach is sectoral crediting (mainly driven by the EU) Focus of negotiations has shifted away from sectoral approaches to NAMAs Details of a potential crediting mechanism are not yet clear Copenhagen Accord  “decide to pursue various approaches, including opportunities to use markets, to enhance the cost-effectiveness of, and to promote mitigation actions”

9. Beyond CDM: options for the wind industry What are NAMAs? Originated in the Bali Action Plan:  Paragraph 1 (b) (ii) of the Bali Action Plan calls for:  “Nationally appropriate mitigation actions’ by developing country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable manner.“

10. Beyond CDM: options for the wind industry Examples for potential NAMAs in the wind sector Feed in tariff: provision of funds to cover incremental cost of a feed in tariff Grid extension: supported by international funds and technical assistance Regulatory measures: financial support and capacity building to create the necessary enabling framework, e.g. regulation on preferential grid access

11. Beyond CDM: options for the wind industry Status of negotiations on ‘NAMAs’ Funding for NAMAs will be provided, but  details of funding sources/distribution are yet unclear  could potentially also be through bilateral action No clarity yet on the exact definition of a ‘NAMA’ Copenhagen Accord  Fast start funding: 30 bln US$ (2010-2012)  Total funding: up to 100 bln US$ per year in 2020 Both for adaptation and mitigation, from public and private sources Annex with proposed NAMAs

12. Beyond CDM: options for the wind industry Current developing countries’ proposed NAMAs Become climate neutral around 2020 Costa Rica, Maldives Percentage reduction of national emission below BAU or base year in 2020 Brazil, Indonesia, Israel, Marshal Islands, Mexico, Moldova, Singapore, South Africa, South Korea Percentage reduction of intensity (national emission per GDP) in 2020 from 2005 China, India Detailed list of projects Congo, Ethiopia, Jordan, Macedonia, Madagascar, Morocco, Sierra Leone

13. Beyond CDM: options for the wind industry Conclusions Sectoral crediting Approach tested and feasible under certain conditions Outcome of negotiations uncertain Potentially more beneficial for wind compared to higher cost options, depending on sector boundaries and mechanism details Nationally appropriate mitigation actions Agreement to substantially support developing country actions Large potential to design an effective system in the coming months Several options for fund based support in the wind sector

14. Beyond CDM: options for the wind industry More information available at www.ecofys.com www.sectoral.org Niklas Höhne, n.hoehne@ecofys.com, +49 221 27070-101 Christian Ellermann, c.ellermann@ecofys.com, +49 221 27070-104 Marion Vieweg, m.vieweg@ecofys.com, +49 221 27070-184