Download Enabling environments for clean energy technology transfer

Enabling Environments
for Clean Energy
Technology Transfer
Michael Gerbis
President
The Delphi Group
The Delphi Group
Clean Energy & Environmental Consultancy
since 1988
Active in North American, Latin American, Asian
and European markets
Key business units:
Clean Energy
Climate Change
Corporate Environmental Strategies
Health & Environment
Overview
Enabling Environments - Private sector
Perspective
CDM & JI
Canadian Programs
Lessons learned from Delphi’s CACBI initiative
Essentials for developing the market
Role of governments & private sector
Conclusions
Enabling Environments
To promote sustainable development
Development priorities
Local capacity building
To promote investment
Commercial viability and replication
Generate economic returns
Intersection of these enabling
environments is of prime interest
CDM & JI
Mechanisms that can Facilitate the
Development of Enabling Environments
Promote SD, increase foreign investment,
catalyze technology transfer
Build capacity, enhance environment &
social development
Provide new commercial opp., leverage
financing, + revenue, offset risks, etc.
What Makes a Market
Attractive for CDM/JI?
To private sector, enabling an environment
means making it attractive for investment
Minimal business risks (cost, viability)
Maximize returns on investment
High potential for sales and replication
Cost effective CERs/ERUs
Canadian Action
Several Canadian Federal Government
Initiatives that help set the Foundation
Participate in International Forums (EGTT)
Canadian Climate Change Development
Fund (CCCDF)
Cdn Initiative for Int’l Tech Transfer (CIITT)
Technology Early Action Measures (TEAM)
CDM/JI Feasibility & Baselines
Canada-Argentina Capacity
Building Initiative
CACBI
$Cdn 1.5 funded by
CIDA’s CCCDF
Enabling environment for
climate change TT
Stakeholder capacity
building & engagement
Demonstration TT
project
Replication
www.delphi.ca/cacbi
Establishing Enabling
Environments for CDM/JI
Key mistakes often made
Government
Creating uncertainty or restrictive rules/policy
Not setting priorities (SD, types of projects…)
Trying to be the “gatekeeper” of project approval
Setting policy/rules and not following through
Private Sector
Do not understand unique aspects of the market
Do not know SD or Tech priorities, CDM/JI process
No engagement of stakeholders
Essentials to Develop the Market
Four essential principles for market
development by Governments:
Clarity: Make the rules clear
Consistency: Don’t change the rules
Transparency: Enforcing the rules
Disseminate: Make the rules and tools
available
Enabling a CDM Environment
Market Availability
of CERs
CDM Project
Review System
National CDM
Stakeholders
System
National
Development
Foundation
Baseline
& CER
Estimation
Capacity
Building For
Stakeholders
National
Development
Priorities
Developed by The
Delphi Group, 2003
Permission for Use
Required
Int’l
Validated
CERs
CDM
Project Project
Review Cert’n
Process &
Verification
Development
of a CDM
Stakeholder
System
Sustainable
Development
Criteria
Economic
Integration of
CDM With
Key Industry
Sectors
National Governments can
Prime the Market
Assess the Market
Build capacity of priority stakeholders
Technical
Networking & engagement opportunities
Match demand with supply
Create incentives/remove barriers for TT
Deregulation, net metering, set RPS
Full cost pricing, eliminate fossil fuel subsidies
Harmonized standards & interconnection
guidelines
CACBI’s Accomplishments
Institutional Capacity
building to:
Define SD & CDM
National priorities
Catalyzing Measures
Develop CDM review
system (small & large)
Engagement of stakeholders
Creating networking opportunities
Website and widespread communication
(www.delphi.ca/cacbi)
Private Sector Role
Understand Local Environment (regulatory,
economic, social, technical, etc.)
Capacity Building
Institutional, technical, etc.
Identify Market Opportunities
Technology Development & Adaptation
Financing
Diffusion, Transfer & Replication
CACBI’s Accomplishments
Demonstration project
to illustrate the system
Illustration of system
and benefits of CDM
Targeted Stakeholder
Capacity Building
Pan-American University Network
Identification, shaping of solid CDM projects &
sources of financing
International Authorities can
Prime the Market
Subsidize OE costs for first allotment of
projects
Encourage & facilitate establishment of OEs
in all regions
Help model countries create and use SD and
project screens
Continue with Int’l Forums focusing on
specific objectives & outcomes
Developed & Developing
Country Issue
Unleashing the Potential of PV in Canada
Typical Barriers
Need for an “Enabling Environment”
Path Forward
Reduce Price Gap & Create a Flexible Market
Integrate Renewables into Future Energy Strategy
Awareness & Training
Foster Private-Public Partnerships
Conclusions
Building enabling environments is difficult and slow
Success comes by keeping it simple
For CDM/JI there is a need for an ‘Architectural
Framework’
CACBI has enjoyed excellent response
Process outlined is transportable
This is both a Public & Private Sector Responsibility
Learning process for us all