EMERGING CONSENSUS FROM TASK FORCE 2 Trillions of dollars of private investment needed to reach...

EMERGING CONSENSUS FROM TASK FORCE 2

• Trillions of dollars of private investment needed to reach scale on efficiency and renewables

• Public funds will never be sufficient, but smart policy can unlock private investment at scale

• It is deeply challenging to develop and implement smart policy in the energy sector

• Strategic funding for collaborative technical work, peer-to-peer learning and technical assistance to policy makers could have transformative long-term impact o Policy funds offer extraordinary leverage (e.g. US

appliance standards program)oWell-coordinated millions can unleash billions

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WHAT CAN SE4ALL DO?

• Bolster efforts of existing fora (e.g. CEM and regional efforts like APEC, B20/G20) to encourage policy progress through collaborative technical work, peer-to-peer exchange, and political dialog

• Catalyze commitments to leverage public and private investment

• Communicate the central role of smart policy to drive private investment in efficiency and renewables

• Engage the private sector, including the investment community, on efficiency and renewables policy design

• On request, help lower-capacity governments improve their clean energy and efficiency policies through targeted technical assistance

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POSSIBLE IDEAS FOR TF2 ACTION WITHIN SE4ALL

• Encourage self-assessment by MDBs and/or bilateral aid agencies of policy TA efficacy

• Compile policy status information (e.g. bolster Clean Energy Solutions Center effort to establish continuously updated database of national and state level clean energy policy for US, India, etc) o Helps policy makers benchmark their effortso Helps private sector find investment opportunitieso Helps civil society advocate for better policy

• Launch “Doing Business in Clean Energy” report to monitor and recognize clean energy policy progress

• On request, partner with proactive governments to help them reach their policy objectives, e.g. o Minimum standards for lighting or other applianceso Fuel economy standardso Net metering or other policies to enable distributed renewableso Regulatory reforms to enable grid-connected renewables

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NEXT STEPS

• Draft report by Abu Dhabi meeting

• Assign sub-tasks to develop specific ideas

• Link to WG1 to address efficiency and renewables role in energy access

• Possible interim working group meeting once additional preparatory work completed

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National Polices

5

Grid Based Business Models

UnconventionalBusiness Models

Global CapitalMarkets

National Banks andFinancial Institutions

Intermediaries,Users & consumers

Host Countries Donors Private

Sector Civil Society

Tech. SupportProfessional

Exchange

Investment, Technology, Good &

Services

Finance, Guarantees,

Insurance

Best Practice: Implementation

Best Practice Regulation

Standards Regulation

Regulation

Professional Exchange

Technical Support,

Feasibility Studies, Training

Capital

Standards Training Services Training

Environmental Impact

Monitoring

Transparency

Accountability

Non-Bank Services, Capital

Services, Distribution,

Quality

NEED TO MODIFY TASK FORCE 1 SLIDES

Appendix

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10 100 1000$100.00

$1,000.00

$10,000.00

U.S. Cumulative Refrigerator Shipments (millions)

Re

frig

era

tor

LC

C in

Re

al D

olla

rs (

20

09

$)

Pre-Standards1947-1978

Historical Standards1978-2010

• Net savings of ~$300 billion cumulative since 1978

• Typical annual budget for entire US minimum standards program ~$30 million

Source: Data from US Bureau of Labor Statistics, US DOE, AHAM Factbooks and Rosenfeld (1999)

MINIMUM PERFORMANCE STANDARDS CAN LEAD TO A SIGNIFICANT DECLINE IN LIFECYCLE COSTS

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Base

Case

Rules

Effec

tive

1/10

...

Rules

Issu

ed 1

/10-

...

Rules

in d

evelop

men

t

Best P

ract

ices

With

EE

10,000

11,000

12,000

13,000

14,0002030 E

lect

rici

ty C

onsum

pti

on in

SEA

D C

ountr

ies

(TW

h)

ONLY A FRACTION OF THE POTENTIAL FROM MINIMUM PERFORMANCE STANDARDS IS CAPTURED CURRENTLY

Cooperation among SEAD partners’ national standard-setting bodies could save by 2030:• 1,800 terawatt hours per year of electricity = as much as would be

produced by 600 five-hundred megawatt power plants• US$150 billion per year of net energy-related expenditures Leads to

significant energy savings for households (e.g., Existing standards in the U.S. save an average of $285 per household per year )

SUPER-EFFICIENT EQUIPMENT AND APPLIANCE DEPLOYMENT INITIATIVE (SEAD)

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SEAD aims to coordinate policy for efficient appliances and equipment

• Regular and ongoing contact between partner governments’ standard-setting experts enables greater coverage of product categories at lower public cost

• Harmonizing test procedures reduces trade barriers for efficient products and facilitates comparisons of efficiency programs

• For globally-traded products, coordination of measures such as incentives, procurement, and awards magnifies market transformation benefits

CLEAN ENERGY SOLUTIONS CENTER

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• Track and share policies, public investment trends, and outcomes

• Identify best practices for clean energy policy and program development

• Engage stakeholders in dialogue about policy and public investment opportunities

• Provide virtual training, including videos and webinars

• Build a user network of policy makers and technical experts