1. www.electricitypolicy.org.uk International Support for Domestic Action Karsten Neuhoff Accra 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

2. 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

3. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 3 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Mtoe Transport Industry Transport Savings Industry Savings Household Savings Household and Others Public Transport Insulation Production efficiency Substitution of products and processes Efficient use 19701976198219881994200020062012201820242030 Trigger points for efficient energy use Source: based on IEA World Energy Outlook 2008

4. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 4 Domestic GHG Policy for Steel Sector in India Harmonised CO 2 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 CO 2 price Emission Intensity levels; shifts in process type and plant size Metrics

5. 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) GHG emissions (Mn tCO 2 e)

6. www.climatestrategies.org www.electricitypolicy.org.uk 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-benefitsChallenges Scope for international cooperation Anoop Singh IIT Kanpur Adoption of efficient technology Reduction in Coal Consumption per kWh generated Network loss reduction Metrics

7. 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-benefitsChallenges Scope of international cooperation Haroldo Machado Filho beyond minus 18% of the BAU scenario (CCAP study, 2005) Metric

8. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 8 Concentrated solar power Efficiency improvements in generation and distribution Facilitating large penetration of renewables Trigger points for low-carbon energy technologies Source: based on IEA World Energy Outlook 2008

9. 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

10. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 10 Policy target applied to OutcomeInput Time frame (years) 1 3 15 10 GPRAGovernment performance result act PSA Public Service Agreements PRSP Poverty Reduction Strategy Papers MDG Millennium Development Goals PSA PRSP EU Accession MDG Response time Options for definition of policy targets GPRA

11. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 11 Building on the experience with LogFrames ProcessInputOutput 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 ProcessInputOutput 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

12. www.climatestrategies.org www.electricitypolicy.org.uk 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

13. www.climatestrategies.org www.electricitypolicy.org.uk 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!

14. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 14 Biogas, Insulation Complexity of technology 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 experience technical cooperation … CSP tower CSP linear

15. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 15 Use Innovation Country A Use Innovation Country B International Synergies in Innovation and Use 1. Growing local markets and absorptive capacity

16. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 16 Many countries have capacity to innovate Annual coal power patent filings, by Inventor country of origin, 1985-2007

17. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 17 International inventor collaboration on coal power stations 1998-2002 2003-2007

18. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 18 Use Innovation 2. Innovating to adapt to local needs and resources 1. Growing local markets and absorptive capacity 3. Creating multiple experiences to drive innovation Country A Country B Use Innovation 3. Creating multiple experiences to drive innovation 2. Innovating to adapt to local needs and resources 1. Growing local markets and absorptive capacity 4. Committing to low-carbon and social objective for direction and market confidence Country A Country B International Synergies in Innovation and Use

19. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 19 Tailor technology cooperation to country and sector R&D Demonstrati on 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

20. www.climatestrategies.org www.electricitypolicy.org.uk 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 t echnology partnerships X X IPRsharing agreements or royalty fund X Innovation centres X X Global fund on technology demonstration X X Technical assistance / capacity building X X Technologystandards X X Regulatory cooperation and policy learning X X Bilateralpolicy implementation support X X

21. www.climatestrategies.org www.electricitypolicy.org.uk 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 Evaluating past projects Technology cooperation Financial support Policy indicators Define objective Technical assistance Methodological CambridgeECNIDDRI Enabling environment Domestic International Domestic policies IISD – past EBRD projects IISD – past Worldbank policy work Summary Harald Winkler/Andrew Marquard, Cap-Town University

22. www.climatestrategies.org www.electricitypolicy.org.uk 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

23. www.climatestrategies.org www.electricitypolicy.org.uk Neuhoff, 23 Time line December 08 January February March April May June July August September Policy Hist. Inst SumKick-off workshop, Cam Final reportOutreach conference, Bonn UNFCCC Bonn Country workshops Interviews Copenhagen

24. www.climatestrategies.org www.electricitypolicy.org.uk 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?