1. Green Competitiveness The Promise and Challenge of Climate Technology Innovation for Developing Countries
Wednesday, 21 October 2015

3. INVESTMENTS:
$70 – 100 billion annually through 2050 just to adapt to climate change

4. Scope of the market opportunity

5. Projecting growth amidst disruption

6. Step-change price drop

7. + =
$ 421
$ 1
$ 420 + =
$ 45
$ 35
$ 10

9. Development without Electricity?

10. Growing, diverse political urgency
Massive investments for developing countries
Profound technological change

11. What is Green Competitiveness?
Climate change – and the responses to climate change - are triggering transformations that effect industrial and national competitiveness
This creates both threats – enforced/induced mitigation, changing weather patterns affecting industry and trade…
… And opportunities – rapid technology advancement, large new financing finance flows, emerging new sectors (eg, solar or EV)
The Green Competitiveness gathers WBG and other expertise in industry and national competitiveness to apply with in the WBG and as part of the global discussion in these matters
Greening Industry and Trade
Help existing industries adapt to climate measures with global best practice
Standards, Industrial energy efficiency, SEZs
Scaling New Sectors
Identify new sectors and help scale for relevant countries
Innovation ecosystem, competitive analysis, international links

12. Sectors ripe for climate innovation
Renewable energy – solar (PV, CSP. SHW), wind, biomass/biogas, hydro, other
Energy efficiency – industrial, commercial and residential
Mitigation
Climate-smart agriculture
Water supply
Information/warning systems
Disaster preparedness and response
Adaptation/
Resilience

13. Common traits of climate sectors
Involves physical hardware
Long lead times in development
Higher up-front capital costs and distribution
Facing established incumbent technologies and players, often state-owned
Must fit local circumstance (usually)
Potential strong political support
Potential strong customer appeal
Potential climate funding available
Offer co-benefits and addressing longstanding current problems

14. Current Programs under WBG Green Competitiveness
Diagnostics for
Climate Innovation Centers & Climate Tech Ventures
Standards & Incentives
Target
Industries
Climate Efficient
Industries
Climate Technology
Program
Solutions Lab for Climate Tech Ventures
Industrial Infrastructure
Mainstreaming the Climate Tech Ventures
Green
Buildings
Projects
Staff
IFC: 18 projects, $33.5m
WB: 16 projects, $1bn +
IFC: approx 10 staff
WB: approx 12 staff

15. Climate Efficient Industries
WBG response to climate change and sustainability challenges in industries
1/3 of GHG emissions is due to industries
8% GHG reduction possible at low costs
Clean tech - a $3 trillion industry by 2030
FACTS
Standards & labeling
Priority industries
Industrial areas
APPROACH
Green buildings
Energy efficient equipment
Energy efficient appliances
Cement
Textiles
Cleantech
Green (low-carbon) zones
Eco-industrial parks
Industrial symbiosis
Current portfolio: 18 projects = $33.5 million
Pipeline: 6 projects. Priority regions Asia, MENA
Example: Annual cost savings of over $4m in Bangladesh EPZs
Target: to reduce GHG emissions by 1.2 million tons/ year by 2020
RESULTS

16. Climate Technology Program
WBG support to client countries to develop indigenous, commercial innovations in climate tech
A global network of
Climate Innovation Centers (CICs)

17. CTP Project Example and Results
Launched September 2012
USD 13 m budget, funded by local DANIDA and DFID
Part of GoK’s National Climate Change Action Plan (NCCAP)
Working with more than 100 companies
Voted “Most Promising Incubator” for 2014
Secured additional USD 12 m funding
CTP Lifetime Results Targets
Typical ‘green growth’ results, both economic and environmental
Approx 300k CO2 mitigation, 600k+ people more resilient to climate change,
Over 100 companies receiving private financing,
30+ policies amended
Effect of innovation and scaling…

18. Principles for Climate Innovation Policies
R&D spending, tax credits & grants
Public-private collaborations
Demonstration projects and competitions
Applied research networks
Technology Development
Direct technical assistance/business advisory
Linking to investors
Business incubators and accelerators
Entrepreneurship and business acceleration
Soft loans and loan guarantees
Stimulate seed and venture capital ecosystem
Blended public-private investment
Technology-specific consumer credits
Innovation Finance

19. Principles for Climate Innovation Policies (cont’d)
Renewable energy credits ad feed-in tariffs
Standards
Product labeling and certifications
Consumer education campaigns
Market Development
Carbon pricing / cap-and-trade
Taxes valuing negative externalities
Favorable import taxes and quotas
State procurement to favor cleaner solutions
Legal and regulatory frameworks
Networks across borders
Partnerships linking high tech centers with commercial players in consumer markets
Incentives for international collaboration
International Connections

20. Dual sets of goals for climate innovation
Climate Objectives
Addressing a major change that disproportionately affects the poor and disenfranchised
Economic Objectives
Greater efficiency
Jobs
Investment
Co-benefits
How can stakeholders position themselves to take advantage of these new, major, transformational and disruptive economic realities?
How can stakeholders position themselves to take advantage of these new, major, transformational and disruptive economic reality?

21. Conference on November 19
Event to examine how private sector response to climate change can bring competitiveness, new technologies and growth
Co-hosted with Sitra
Discussions with WRI
Prelude to but not directly linked to COP-21
CC-CCSA involvement

22. Thank you…