Innovation NAMAs

1. Innovation NAMAs Center for Climate Science and Policy Research International Symposium on NAMAs January 16th 2014 Isabel Galiana McGill University (Montreal, Canada)

2. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) The global technology gap ‘The key to solving the problem of climate change will be innovation’ --- Bill Gates • Acknowledgment of serious energy technology gap: • On a global basis, total primary energy supply (TPES) will increase • Current low-carbon technologies are not capable of meeting this need. (~12 TW shortage by 2050 to meet 2°C target) • Current technologies are not economical and/or scalable • IEA (2013) calls for : • 6 – 10x increase RD&D funding globally • Expanded international collaboration “International collaboration can enable governments to conduct more RD&D at a lower cost and with less duplication”

3. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) GovNAMAs - Innovation NAMAs PHASE 1 - OBJECTIVES 1) Identifying the potential benefits of including RD&D in developing countries as a NAMA 2) Outline the fundamental differences between innovation and diffusion, especially in the energy sector and the implications for the design of NAMAs. 3) Develop a framework for innovation NAMAs that will aid developing countries participate in the global search for energy technologies, key to a low-carbon world.

4. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Obj. 1: Identifying the potential benefits to international climate policy of including RD&D in developing countries as a NAMA The UN has 3 objectives within the SE4all program • Ensure universal access to modern energy services. (achievable w/ current tech) • Double the global rate of improvement in energy efficiency. • Double the share of renewable energy in the global energy mix. • Innovation NAMAs provide opportunity for developing nations to lead on technologies and business models that addresslocalclean energy and climate change challenges. • Barriers to the development of new technologies are more pronounced in developing countries; lack of financing, lagging technical and business capabilities, entrepreneurial capacity constraints and uncertain regulatory environments. • The majority of new employment comes from start-up firms…employment leads to growth

5. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Obj 2: Outline the fundamental differences between innovation and diffusion, especially in the energy sector and the implications for the design of NAMAs. • The innovation “chain” – basic research, applied research, development, demonstration, diffusion – is more complex than once thought because of feedbacks and blurred boundaries. • It is naïve to target only the final diffusion phase, especially given the well-established technology gap. • Innovation policy presents more ambiguity about the defining metrics by which it should be evaluated, which frustrates policymakers and potential funders. • There is no clear boundary along the innovation chain. Policy metrics will need to take into account differential risk and timeframes.

6. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) The Technology Innovation Chain

7. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Technology development and CO2 mitigation for power generation

8. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Obj. 3: Develop a framework for innovation NAMAs that will aid developing countries participate in the global search for energy technologies will help lay the road to a low-carbon world. • Multiple innovation centers/institutes have been set-up in the last 1-2 years. Frameworks exist but should be centralized! • Climate Innovation Centers (since end 2012) • World Bank Group’s infoDev unit • India, South Africa, Vietnam, Kenya, Caribbean, etc. • Indonesia Demand-Driven Green Innovation Sub-Program • Generate, design and test the most promising potential renewable energy concepts. (World Bank) • Inter-American Development Bank- Energy Innovation Center • Research dissemination and regional policy dialogues, become a catalyst for knowledge and best practices exchanges • U.S.-China Clean Energy Research Center (CERC) • facilitates joint research and development on clean energy technology by teams of scientists and engineers from the United States and China • Potential funder of NAMAs?

9. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Expanding the definition of NAMAs • Recognize the technology challenge but also that the innovation chain is a continuum • Provide a diversified source of stable multi-year funding and multi-stakeholder engagement • Expands the stock of innovative capacity based on local needs and knowledge which ultimately advances absorption • Establish classifications based on alternative metrics and risk tolerance. • Provide a service to host the numerous and fragmented innovation center projects into a single database • Accelerate global diffusion of innovative technologies A broader definition of NAMAs will allow innovators in developing countries to seize the opportunity to be part of the greatest technology revolution of the 21st Century.

10. Innovation NAMAs I. Galiana (McGill, Montreal, Canada) Innovation NAMAs NEXT STEPS • What are the barriers/value added to integrating at a registry level the global fragmented innovation centers? • Ex: best practice sharing, • How can the NAMA instrument be designed tomaximize of the economies scale of Innovation NAMAs • Ex: Coalitions, sectoral approaches. • MRV of Innovation NAMAs • Ex: success metrics, time frame, publications, patents, performance measures for technologies, sales are often difficult to correlate with specific inputs. • Managing IP issues of funded Innovation NAMAs • Ex: follow CERC (China-USA partnership)