1. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION International Support for Domestic Action Mechanisms to Facilitate Mitigation in Developing Countries Karsten Neuhoff DIW & Climate PolicyInitiative Copenhagen 14/12/09

2. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION Source:PNLT, 2007 Federal Government Plan “The National Plan on Logistics and Transport: a policy that can promote a significant change in the modal split in the country” “The National Plan on Logistics and Transport: a policy that can promote a significant change in the modal split in the country” The reduction of freight by road has potential to mitigate GHG: 10 to 20% of freight emissions The reduction of freight by road has potential to mitigate GHG: 10 to 20% of freight emissions Workshop conducted to assess how to achieve the target.

3. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION 1.Low-carbon Development Strategy Capacity Building Technology Cooperation 4. Reporting 3.International mechanisms Domestic International International Verified - emission 2. NAMA Autonomous mitigation action plan

4. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION

7. Additional fuel supply Reference (Conventional technology & practises) Mitigation Scenario (Low carbon technology & development) Shift operation costs to investment Investment Costs Power sector 50 100 150 200 250 $ billions in 2030 Technology / Skills New business practises Incremental costs Subsidy removal Carbon pricing Remove regulatory barriers Capacity building Technical assistance Incremental costs Subsidy removal Carbon pricing Remove regulatory barriers Additional fuel supply Reference (Conventional technology & practises) Shift finance / investment Energy cost savings Shift finance / investment Energy cost savings Mitigation Scenario (Low carbon technology & development) Support incremental costs Carbon markets Public transfers Support incremental costs Carbon markets Public transfers Loans Risk guarantees Loans Risk guarantees Shift operation costs to investment Investment Costs Power sector Offset mechanisms (e.g. CDM) Capacity building Technical assistance Transparency, outside commitment Role of Public Sector Role of Private Sector InternationalDomestic Role of Private Sector Domestic Role of Public Sector International Experience / Technology Technology / Skills New business practises Technical assistance Transparency, outside commitment Capacity building / Technical assistance 50 100 150 200 250 $ billions in 2030

8. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION

10. ProjectCountryPro- ject Country Grant Upfront Operation Finance Equity Debt Guarantee Majority of grants provided bilaterally Majority of finance provided with multilateral mechanisms Match needs of low- carbon development Carbon revenue Aviation&shipping Offsets Auction revenue Risk management Illustrative Increasing role for facilitating access to finance?

11. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION

12. In Support of Programme Implementation and Management

13. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION

14. 1.Low-carbon Development Strategy Capacity Building Technology Cooperation 4. Reporting 3.International mechanisms Domestic International International Verified - emission 2. NAMA Autonomous mitigation action plan

15. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION International Support for Domestic Climate Policies in Developing Countries, Climate Policy 9.5 Editor: Karsten Neuhoff Six case studies explore the domestic drivers and barriers for policies with climate (co-)benefits in developing countries and show that international support can help to overcome these constraints by providing additional resources for incremental policy costs, technical assistance, and technology cooperation to build local capacity. EDITORIAL Understanding the roles and interactions of international cooperation on domestic climate policies, Karsten Neuhoff SYNTHESIS Using intermediate indicators: lessons for climate policy, James Cust Policy targets: lessons for effective implementation of climate actions, Sarah Lester, Karsten Neuhoff A history of conditionality: lessons for international cooperation on climate policy, Maike Sippel, Karsten Neuhoff COUNTRY STUDY Brazilian low-carbon transportation policies: opportunities for international support, Haroldo Machado-Filho Policy and regulatory framework for renewable energy and energy efficiency development in Ghana, William Gboney Domestic climate policy for the Indian steel sector, Umashankar Sreenivasamurthy Climate co-benefit policies for the Indian power sector: domestic drivers and North-South cooperation, Anoop Singh Concentrated solar power in South Africa, Kate Grant China’s wind industry: policy lessons from domestic government interventions and international Support, Xiliang Zhang, Shiyan Chang, Ruoshui Wang, Molin Huo OUTLOOK Twinning: lessons for a South-North climate policy context, Zsuzsanna Pato

16. INTERNATIONAL SUPPORT FOR DOMESTIC ACTION Climate Strategies’ Contact Details: UK - Managing Director: Jon Price (jon.price@climatestrategies.org)jon.price@climatestrategies.org US - Research Director: Thomas L. Brewer Secretariat: Climate Strategies c/o University of Cambridge 13-14 Trumpington Street Cambridge, CB2 1QA, UK +44 (0) 1223 748812 www.climatestrategies.org Climate Strategies aims to assist governments in solving the collective action problem of climate change. It connects leading applied research on international climate change issues to the policy process and to public debate, raising the quality and coherence of advice provided on policy formation. We convene international groups of experts to provide rigorous, fact-based and independent assessment on international climate change policy. To effectively communicate insights into climate change policy, Climate Strategies works with decision-makers in government and business, particularly, but not restricted to, the countries of the European Union and EU institutions. Climate Strategies is grateful for funding from the government of Australia, Agence de l'environnement et de la maîtrise de l'énergie (ADEME) in France, Ministry of Foreign Affairs (MFA) in Norway, Swedish Energy Agency, Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) in Germany, Department for Environment, Food and Rural Affairs (DEFRA), the Office of Climate Change (OCC), Department for International Development (DFID) in the UK, The Carbon Trust in the UK, Corus Steel, Center for International Public Policy Studies (CIPPS) in Japan, European Climate Foundation (ECF), and the German Marshall Fund of the United States.