Why low carbon development? Economic growth and development that is consistent with the transition to a carbon constrained global economy. It fits with: An international agreement leading to a global emissions gap Supporting adaptation - since more developed countries are less vulnerable (and it could also promote adaptation more directly) Greater energy security LOW CARBON DEVELOPMENT

Meeting the challenge The challenge of supporting developing countries move to a low carbon growth path is difficult to meet. No countries have yet made the transition so no consensus on the building blocks... but look at countries’ future growth paths and we do know it will involve energy and forestry We have a (short) window of opportunity LOW CARBON DEVELOPMENT

Elements of a response We can start by acting on what we already know: Energy – efficiency, demand; coherent financing Forestry – develop capacity and pilot approaches But there are also key areas where we need more evidence to develop effective policies, eg. Low carbon opportunities – emissions trading; forestry; renewables markets Handling key carbon critical decisions Managing the transition away from fossil fuels Technological innovation LOW CARBON DEVELOPMENT

DFID’s objectives Where should DFID focus given our goal of reducing poverty? Our value added - focus on poor people and poorer developing countries; influence with multilateral agencies; first mover advantage – people and the ETF Potential objectives understand better what’s needed (public and private) help build political consensus help build developing country capacity work with international partners to facilitate low carbon transition Tools at our disposal: research, policy and analysis, negotiating and influencing, capacity building, finance LOW CARBON DEVELOPMENT

Three challenges Inter-temporal: how to balance effort in major MIC emitters to help make reductions now which will mean LICs suffer less in the future? Global versus local: how to balance effort on reducing global greenhouse gas emissions with achieving national poverty reduction benefits? Indirect versus direct: how to ensure support for low carbon power generation actually results in real benefits for the poor? LOW CARBON DEVELOPMENT