Green Growth Best Practice (GGBP) Green Growth in Practice: Lessons from Country Experiences

1. GIZ, Eschborn, 14 October 2014 Nick Harrison, Ecofys, n.harrison@ecofys.com Green Growth Best Practice (GGBP) Green Growth in Practice: Lessons from Country Experiences

2. Rationale • Major international organizations have published initial reviews of green growth, green economy, low emissions, and climate resilient development plans. • Growing number of countries are adopting green growth. • Yet, there is no systematic and comprehensive study of country experiences.

3. Objective • Key question: “ • What are the effective approaches that counties have taken for green growth planning, implementation and monitoring? ” • Assessing, and sharing best practices on green growth: • Conduct high-quality, fact-based assessment to identify good practices around the world. • Document results in products tailored for different audiences • Foster use of results to inform policymakers and practitioners

4. Target Audience Policy makers, program managers, and politicians who establish the mandate and put green growth plans into practice. Analysts who conduct and manage assessments, analysis, monitoring and reporting in support of policy-making. Planners and facilitators who lead the governmental green growth processes.

5. Case analysis - assessment criteria Scale of impact: Is there evidence that the process, method, or strategy will enable significant near and long term impacts in advancing green growth and transforming relevant country systems? Degree of robustness: Does the process, method, or strategy achieve credibility and legitimacy, support of key stakeholders, and integration with wider programs? Level of efficiency: Does the process, method, or strategy use human and financial resources efficiently in achieving its purpose in the appropriate timescale?

6. Case analysis - coverage

7. GGBP: Organisation • Working with a global network • Launched in October 2012 with support from CDKN, ECF and GGGI • 75 authors conducting the assessment from all regions • 20+ partner organizations and 200+ experts in the Expert Network • 12 Steering Committee organizations

8. Organisation International Expert Group – consultation workshop to establish long-list of topics and key areas of delivery. International Practitioner Group –consultationto shortlist topics and areas of most relevance for delivery. Steering Committee – oversight and guidance to Project Office Project Office – coordinated work streams, project logistics, reporting to steering committee/funders and overall delivery Workstream Leads – coordinated the work of author groups and delivery or chapter content across a number of chapters Authors – Lead authors (2-3); Contributing Authors (5-7). Selected to provide balance of practitioner/researcher, gender, geographic coverage. Reviewers – SC, PO and WSL ongoing internal review throughout. External reviewers selected from International Practitioner Group (3-9/chapter) to review first and second drafts. Country reviewers reviewed Case Studies.

9. GGBP: Topics

10. GGBP: Key conclusions • Growing numbers of national and sub-national governments are capturing concrete economic, environmental, and social benefits from green growth, including: • Enhanced efficiency and productivity: Green, resource efficient technologies and practices can yield savings in resources and money and enhance competitiveness • Underpinning industrial policy and macroeconomic goals: Growing demand for green products and services offers opportunities for new industries and markets • Improved quality of life and social equity: Reducing environmental degradation and conserving natural resources enhances the quality of life for all, especially the poor

11. GGBP: Key conclusions Green growth programs are most effective where they recognize trade-offs and smooth the transition to a green economy Integrated and robust planning, analysis, implementation, and monitoring are essential. Broad support for transformative change at adequate speed and scale is required

12. GGBP: Topics

13. Chapter 5. Policy Design and Implementation • Contributing Authors • Flavia A. Carloni (Federal University of Rio de Janeiro, Brazil) • Nikola Franke (Global Green Growth Institute) • Edith Kirumba (African Technology and Policy Studies Network, Kenya) • Isabelle de Lovinfosse (Department of Energy and Climate Change, UK) • Krishna Rao Pinninti (Climate and Development Strategies, US) • Shannon Wang (Organisation for Economic Cooperation and Development) • Lead Authors • Peter King (Institute for Global Environmental Strategies, Thailand) • Anne Olhoff (United Nations Environment ProgrammeRisø Centre) • Kevin Urama (African Technology Policy Studies Network, Kenya)

14. Policy Design and Implementation Apply a mix of policy instruments to achieve short term ‘wins’ and support long-term transformation.

15. Policy Design and Implementation Cases analyzed in this chapter:

16. Lessons on policy design and implementation Examples Design portfolio of green growth policies that includes enabling, mandating and incentivizing policies, with special attention to green innovation policiesand labor and skills development • Support green innovation to decouple growth from environmental degradation • Develop skills to improve competitiveness and avoid bottlenecks • Norway: framed innovation policy as a process of building sustainable and creative society. Policies include USD 80 m program supporting green enterprises and public sector leadership via green procurement Examples • Korea: Centrally coordinated policies targeting universities, vocational training, and youth education • South Africa: Green Economy Accord, a multi-sectoral framework to increase competitiveness and employment opportunities with a special focus on young workers

17. Lessons on policy design and implementation Examples Couple consistent and coherent policy instruments with strong governance and enforcement Acknowledge and address resource limits and environmental threats • Singapore: Ambitious plans with targets continuously reviewed and met through a broad mix of well-enforced policies • Germany: Stable renewable energy policy portfolio resulting in deployment of renewable energy technologies domestically and world-leading domestic wind and solar industries Examples • Mexico City's Plan Verde: Addressing back-log of environmental restoration with clear targets and effective monitoring systems • Brazil: Reconciling poverty reduction and environmental goals with agricultural growth

18. Chapter 6. Mobilizing Investment • Lead Authors • Amal-Lee Amin (E3G – Third Generation Environmentalism, UK) • Chantal Naidoo (E3G – Third Generation Environmentalism, South Africa) • Shelagh Whitley (Overseas Development Institute, UK) • Contributing Authors • Joya Bhandari (Independent consultant, Mauritius) • Mark Fogarty (University of New South Wales, Australia) • Marcela Jaramillo (E3G – Third Generation Environmentalism) • Lisa Ryan (Independent consultant, US) • Tomonori Sudo (Japan International Cooperation Agency, Japan) • Laura Würtenberger (Deutsche GesellschaftfürInternationaleZusammenarbeit, Germany)

19. Mobilizing Investment

20. Mobilizing Investment – Cases Analyzed

21. Key lessons on investment enabling environment Create an enabling environment for green investment via: • Clear, long-term, and binding policy and regulatory framework • Aligning price signals • Active government programs to develop investable projects • Managed dialogue with stakeholders including private investors Examples • Germany: energy efficiency housing program combines regulations with concessional lines of credit via national public bank • California: complements emission controls with concessional loans, tax credits, and utility public benefit funds • Costa Rica: payment for ecosystem services links user tariffs for resources with forest conservation payments • South Africa: Portfolio of product/activity charges to align price signals with green growth objectives

22. Key lessons on use of public funds Make effective use of public funds, including: • Direct budget allocation to sector agencies and sub-national governments and applying user fees, earmarked taxes, and other revenues • Consider use of public intermediaries and dedicated green funds Examples • Korea: ‘2 Percent Rule’ where government spends 2% of GDP on green growth implementation • Vietnam: Aggregates international funds with public funds via national budget to mainstream green growth with development programs • South Africa: Green fund providing catalytic support for green development projects • UK: Created new Green Investment Bank to fund green projects with at least 3:1 private leverage

23. Key lessons on use of financial instruments Usefinancial instruments to de-risk projects and increase return on investment, via: • Integrating with the policy context • Tailoring concessionality • Transparency of public financial incentives • Planning an exit strategy Examples • Bangladesh: Infrastructure Development Company channels international finance and offers grants and soft loans for green projects • Brazil: national development bank offers energy efficiency credit line • Morocco: employing equity investments to support emerging green businesses • South Africa: green fund using guarantee & insurance mechanism to attract private investment

24. Key lessons on mobilizing investment Establish long-term approaches to scale-up green development: • Attract institutional investors • Refine financial regulations • Promote financial innovation and access to affordable long-term capital Examples • China: banking commission implementing green credit policy and guidelines to incentivize bank financing • California: legislation to allow mortgage financing of home-owner clean energy projects • Tunisia: capacity building of domestic banks to finance clean energy projects

25. Chapter 7. Public-Private Collaboration • Lead Authors • Antonia Gawel (Independent consultant, Bhutan) • Murray Ward (Global Climate Change Consultancy, New Zealand) • Contributing Authors • Ben Caldecott (Oxford University, UK) • Lit Ping Low (Climate and Development Knowledge Network, UK) • Wytze van der Gaast (Joint Implementation Network) • Narae Lee (Inter-American Development Bank) • Madoka Yoshino (Institute for Global Environmental Strategies, Japan)

26. Public-Private Collaboration

27. Public-Private Collaboration

28. Public-Private Collaboration Cases analyzed in this chapter:

29. Public-Private Collaboration Examples • Netherlands Innovation Agreements – government teams with companies, research institutes, and universities on collaborative contracts for shared investments to achieve sector specific innovation goals • Kenya Climate Innovation Center - Climate Innovation Center (CIC) builds local capacity and provides support for firms to develop new climate adaptation and mitigation businesses and products, facilitates finance , and advocates for enabling polices • Advanced Market Commitments – Under Advanced Market Commitments (such as for vaccines and as proposed for methane abatement), governments and other donors commit funds to guarantee either the price of an innovation or payments for services if they achieve set levels of performance

30. Public-Private Collaboration Examples • Alaska – In Alaskan Halibut Fisheries Management example private vessel owners worked with the government on joint goals for achieving sustainable fish stock management, while ensuring profitability and safety • Brazil – Government develops collaborative agreements with companies to create and manage protected areas and see direct value of conservation as compensation for project impacts. • Forest Stewardship Council – Broad group from industry, NGOs, governments, and international organizations developed joint global, regional, and national sustainable forestry standards which have certified sustainable forests in over 80 countries. • Madagascar – Government of Madagascar approved carbon sales with private sector partners. Through carbon credit sales from avoided deforestation, the project will finance the long-term conservation of rainforest under community stewardship.

31. Public-Private Collaboration Examples • Zambia – In Chiansi irrigation project, government agencies, private sector developers, investors, and donors teamed to create irrigation system that achieved efficient use of water resources and reduced poverty among small farmers • West Africa – Government supports biodiesel distribution infrastructure and policies to enable private sector investment in Jatropha growth on unproductive land and biodiesel generation • Punjab – Used PPP model to have private sector build, own, operate, and maintain grain storage silos which are addressing food security and improving resource efficiency. Now being replicated in other states in India and Pakistan. • Mobile Phones for Sustainable Agriculture – Governments supporting mobile phone infrastructure and information provision on sustainable agriculture practices in cooperation with farmers and agricultural companies throughout Africa, India, and other regions

32. Outreach and Collaboration Country specific outreach • Engaging authors in discussing and applying relevant findings with countries (e.g. DRC, Indonesia, Sri Lanka, Kenya, Rwanda, and others) Developing technical resources • Adding further cases to on-line handbook to facilitate access to content • Partnering with ILO, UNITAR, GGKP, WB, UNESCAP, LEDS GP on e-learning materials and presenting results at green growth related courses Joint outreach and peer learning activities • Conveningjoint events at workshops and webinars Support to international assistance agencies and programs • UNDP, USAID, GIZ, GGGI, CDKN, OECD, & others

33. www.ggbp.org

34. ADDITIONAL SLIDES

35. Good Practice in NAMA, LEDS and MRV Good Practice Analysis • Good practice criteria • Case selection • In-depth case analysis • 21 country case studies www.mitigationpartnership.net/gpa

36. Good Practice in NAMA, LEDS and MRV Hotspot-Coldspot Analysis • Assessed countries across LAC, Africa, Asia • Ambition • Activities • Importance • Recommended countries for further analysis

37. Relevant cases: Cases with specific relevance for RE/EE deployment: • China: Implementing a national private-sector energy efficiency programme • Georgia: Developing municipal level mitigation action plans • India: Developing renewable energy targets and supporting strategies • Thailand: Integrating waste management and renewable energy planning • Vietnam: Implementing a national energy efficiency programme

38. Cities as engines of employment

39. Cities and subnational delivery “Gap in knowledge products that focus on green economy policy implementation at the local level” “A dominant proportion of the best practices and case studies featured in existing knowledge products focus on nation-wide strategies and initiatives”

40. Cities and subnational areas of influence

41. UNFCCC (ADP-2) Ambition raising • Barriers • National policy examples • International Cooperative Initiatives