International Support for Domestic Action

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

2. 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 reduction of freight by road has potential to mitigate GHG: 10 to 20% of freight emissions Source:PNLT, 2007 Workshop conducted to assess how to achieve the target.

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

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

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

12. In Support of Programme Implementation and Management

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

15. International Support for Domestic Climate Policies in Developing Countries, Climate Policy 9.5Editor: 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