Enabling Environments for Clean Energy Technology Transfer Michael Gerbis President The Delphi Group

The Delphi Group Clean Energy & Environmental Consultancy since 1988 Active in North American, Latin American, Asian and European markets Key business units: Clean Energy Climate Change Corporate Environmental Strategies Health & Environment

Overview Enabling Environments - Private sector Perspective CDM & JI Canadian Programs Lessons learned from Delphi’s CACBI initiative Essentials for developing the market Role of governments & private sector Conclusions

Enabling Environments To promote sustainable development Development priorities Local capacity building To promote investment Commercial viability and replication Generate economic returns Intersection of these enabling environments is of prime interest

CDM & JI Mechanisms that can Facilitate the Development of Enabling Environments Promote SD, increase foreign investment, catalyze technology transfer Build capacity, enhance environment & social development Provide new commercial opp., leverage financing, + revenue, offset risks, etc.

What Makes a Market Attractive for CDM/JI? To private sector, enabling an environment means making it attractive for investment Minimal business risks (cost, viability) Maximize returns on investment High potential for sales and replication Cost effective CERs/ERUs

Canadian Action Several Canadian Federal Government Initiatives that help set the Foundation Participate in International Forums (EGTT) Canadian Climate Change Development Fund (CCCDF) Cdn Initiative for Int’l Tech Transfer (CIITT) Technology Early Action Measures (TEAM) CDM/JI Feasibility & Baselines

Canada-Argentina Capacity Building Initiative $Cdn 1.5 funded by CIDA’s CCCDF Enabling environment for climate change TT Stakeholder capacity building & engagement Demonstration TT project Replication www.delphi.ca/cacbi CACBI

Establishing Enabling Environments for CDM/JI Key mistakes often made Government Creating uncertainty or restrictive rules/policy Not setting priorities (SD, types of projects…) Trying to be the “gatekeeper” of project approval Setting policy/rules and not following through Private Sector Do not understand unique aspects of the market Do not know SD or Tech priorities, CDM/JI process No engagement of stakeholders

Essentials to Develop the Market Four essential principles for market development by Governments: Clarity: Make the rules clear Consistency: Don’t change the rules Transparency: Enforcing the rules Disseminate: Make the rules and tools available

Enabling a CDM Environment Developed by The Delphi Group, 2003 Permission for Use Required Int’l Validated CERs Market Availability of CERs Baseline & CER Estimation CDM Project Review Process Project Cert’n & Verification CDM Project Review System Capacity Building For Stakeholders Development of a CDM Stakeholder System National CDM Stakeholders System National Development Foundation Economic Integration of CDM With Key Industry Sectors National Development Priorities Sustainable Development Criteria

National Governments can Prime the Market Assess the Market Build capacity of priority stakeholders Technical Networking & engagement opportunities Match demand with supply Create incentives/remove barriers for TT Deregulation, net metering, set RPS Full cost pricing, eliminate fossil fuel subsidies Harmonized standards & interconnection guidelines

CACBI’s Accomplishments Institutional Capacity building to: Define SD & CDM National priorities Catalyzing Measures Develop CDM review system (small & large) Engagement of stakeholders Creating networking opportunities Website and widespread communication (www.delphi.ca/cacbi)

Private Sector Role Understand Local Environment (regulatory, economic, social, technical, etc.) Capacity Building Institutional, technical, etc. Identify Market Opportunities Technology Development & Adaptation Financing Diffusion, Transfer & Replication

CACBI’s Accomplishments Demonstration project to illustrate the system Illustration of system and benefits of CDM Targeted Stakeholder Capacity Building Pan-American University Network Identification, shaping of solid CDM projects & sources of financing

International Authorities can Prime the Market Subsidize OE costs for first allotment of projects Encourage & facilitate establishment of OEs in all regions Help model countries create and use SD and project screens Continue with Int’l Forums focusing on specific objectives & outcomes

Developed & Developing Country Issue Unleashing the Potential of PV in Canada Typical Barriers Need for an “Enabling Environment” Path Forward Reduce Price Gap & Create a Flexible Market Integrate Renewables into Future Energy Strategy Awareness & Training Foster Private-Public Partnerships

Conclusions Learning process for us all Building enabling environments is difficult and slow Success comes by keeping it simple For CDM/JI there is a need for an ‘Architectural Framework’ CACBI has enjoyed excellent response Process outlined is transportable This is both a Public & Private Sector Responsibility Learning process for us all