Germanys International Climate Initiative Example of UNEP Projects

Germany’s International Climate Initiative Example of UNEP Projects UNFCCC Climate Talks Wednesday 1 April 2009

Project 1: Enhancing information for renewable energy technology deployment in Brazil, China, and South Africa

Getting Renewable Energy to Work Resource mapping ð Available Resources ð Technical and economic potentials Scenarios Which technologies are feasible? ð Possible capacity development Strategies Instruments Investments To what extent can they contribute to the national energy system? ð Market introduction How can they be best marketed? ð Political and financial instruments What are the right policy incentives? ð Private investments Policy and economic framework Potentials

Investing in a Public Good high Basic georeferenced data Scientifically validated resource data low Cost and effort Information products and decision-support tools Computer-based applications and models Commercial value low Applications and analysis Analysis, scenarios and consulting high Source: Micus Gmb. H (2003): Der Markt für Geoinformationen: Potenziale für Beschäftigung, Innovation und Wertschöpfung, Studie für das Bundesministerium für Wirtschaft und Arbeit, www. micus. de

Scaling-up a tested approach è Three countries: Brazil, China and South Africa è Two sources of energy: solar and wind è One goal: mobilise private sector investment in renewable energy by promoting economically sound policy incentives based on high-quality resource data

The project – preparatory phase è Stock-taking: review of domestic and bilateral aid projects, national policies and existing assessments of renewable energy resources è Consensus-building: convene governmental agencies, project developers, project financiers and technology providers to agree on the type of assistance needed è Capacity-building: conduct training sessions on topics identified by local stakeholders as being of special concern, and identify mechanisms through which the IEA ‘implementing agreements’ might be used to support domestic renewable energy goals

The project – planned extension è Mapping of solar and wind energy resources: high-resolution remote-sense modelling and validation through on-site measurements è National policy roadmaps: assessment of the effectiveness of national policies, complemented with scenarios on the investment, employment and emission reduction impacts of selected policy instruments (such as feed-in tariffs or portfolio standards), to promote policy incentives that catalyse private-sector investment è Investment opportunities: site-specific investment deals facilitated by UNEP, based on unbiased data on (i) expected emission reductions, (ii) anticipated costs and return-on-investment periods, and (iii) track record of potential project developers and project financiers

Summing it all up è A public good: government remains the main provider of renewable energy resource information è A focus on market creation: introducing appropriate policy incentives is the single most effective way to promote clean energy, by creating a real demand for ‘clean energy goods and services’ è A targeted approach: project development relies on site-specific information, which must come from authoritative sources

Project 2: Sustainable Energy Advisory Facility – Latin American and Caribbean Countries (SEAF-LAC)

Project Background v Increasing concern in the LAC region about climate change -- governments, NGOs and the private sector are interested in sustainable energy initiatives, BUT… v Change is never easy – external assistance is critical and sometimes a small targeted intervention in the right moment can make the difference between success and failure

Objectives v Strengthen the capability of institutions to analyze and implement sustainable energy approaches v Provide information and technical support for sustainable energy activities. v Demonstrate that the transition to sustainable energy systems does not necessarily require complex mechanisms and approaches.

SEAF offers technical assistance & funds for national institutions to… v Integrate energy sector programmes into overall sustainable development strategies v Establish criteria and tools to evaluate alternative energy choices v Strengthen local capabilities to assess and select environmentally sound technologies v Support both the completion and continuity of sustainable energy projects

Country eligibility criteria v Magnitude and type of environmental impacts and threats associated with existing sources and patterns of energy production and use. v Extent and structure of capacity gaps or other constraints holding up the analysis, specification, design and implementation of: – Policies with large potential for advancing sustainability of energy infrastructure and institutions. – Environmentally sound energy projects/programs with potential for expanded access to the underserved.

Country eligibility criteria (cont’d) v Prospects of achieving measurable initial results directly attributable to the SEAF intervention within 3 years v Resources mobilization potential: willingness of government to co-finance and/or help attract other co-funding sources v Presence of one or more other sustainable energy projects with high potential for synergy with the proposed SEAF-sponsored intervention

Linking to the Big Picture è The deployment of cleaner energy technologies faces a range of non financial barriers (at the policy, financial, information and institutional levels). Finance alone is probably not enough. è The scale of investment required to shift from our current energy system to one that is economically and environmentally sustainable can only be met by the private sector – public sector resources are best used to created the necessary incentives for and leveraging private sector investment è Pre-investment support and market creation is one of the most effective ways to promote clean energy and create real demand for clean energy goods & services è Having the flexibility to responds to targeted requests – through dedicated budgets that can be mobilized quickly - can make the difference between success and failure

www. unep. org/themes/climatechange/ United Nations Environment Programme Division of Technology, Industry and Economics E-mail: kaveh. zahedi@unep. org