1 July 2007 Technologies needs assessments under the UNFCCC process Iulian Florin Vladu Technology Sub-programme Adaptation, Technology and Science Programme

1July 2007

Technologies needs assessments Technologies needs assessments under the UNFCCC processunder the UNFCCC process

Iulian Florin VladuIulian Florin Vladu

Technology Sub-programmeTechnology Sub-programme

Adaptation, Technology and Science Adaptation, Technology and Science

ProgrammeProgramme

UNFCCCUNFCCC

Bangkok, Thailand

Iulian Florin VLADU - Technology Subprogramme

2

This presentation will cover:This presentation will cover:

Technology framework and its thematic area on Technology framework and its thematic area on technology needs and needs assessmenttechnology needs and needs assessment

TNAs – definition and purposeTNAs – definition and purpose

Priority technology needs of non-Annex I PartiesPriority technology needs of non-Annex I Parties

Opportunities for implementing the findings of TNAsOpportunities for implementing the findings of TNAs

Issues for considerationIssues for consideration


3

Mechanisms (EGTT )

Capacity -building

Enabling environments

Technology needs and needsassessments

COP and subsidiary bodies

Second periodConsultative process

Third periodImplementation ofthe technology framework

UNC

ED R

iode

Jan

eiro

1Berlin

2Geneva

3Ky oto

UNF

CCC

ent

ers

into

forc

e

4Buenos Aires

5Bonn

6 I & IIThe Hagueand Bonn

7Marrakesh

8New Delhi

9Milan

10Buenos Aires

11Montreal

12

First periodVarious issues

Technology information

Projects inventory, financing, networks of centres,adaptation technologies

Bue

nos

Aire

s Pl

an o

f Act

ions

Tech

nolo

gy fr

amew

ork

EGTT

reco

mm

enda

tions

for

enha

ncin

g th

e im

plem

enta

tion

of th

e fr

amew

ork

Rev

iew

of E

GTT

Regional workshops in Asia, Africa, and Latin America and the Caribbean

1992 1994 1996 1998 2000 2002 2004 2006

Ber

lin m

anda

te

Millennium declaration

Johannesburg Plan of Action

FAR SAR TAR AR4

SR

on

MT

I TT

IPCC

Ky oto Protocol signed

Development and transfer of technologies

Programme for further implementation of Agenda 21

CSD

2008 2010 2012 2030

Innovative financing

Technologies for adaptation

13 14 15 16 17 18

2006

Gui

delin

es

SR

on

CC

S

Fourth periodEnhancing the implementation ofthe technology framework

Processe s initiated at COP 11

First commitment periodKy oto Protocol enters

into force

Dialogue on long- term cooperative actions

Maintain the same themes

UNFCCC proce ss

???

Other possible approaches?

Ad-Hoc Working Group on Further Commitments under the Kyoto Protocol

SBSTA mit igation w orkshops and f ive-year work programme on adaptation

MOP 1

Mechanisms (EGTT )

Capacity -building

Enabling environments

Technology needs and needsassessments

COP and subsidiary bodies

Second periodConsultative process

Third periodImplementation ofthe technology framework

UNC

ED R

iode

Jan

eiro

1Berlin

2Geneva

3Ky oto

UNF

CCC

ent

ers

into

forc

e

4Buenos Aires

5Bonn

6 I & IIThe Hagueand Bonn

7Marrakesh

8New Delhi

9Milan

10Buenos Aires

11Montreal

12

First periodVarious issues

Technology information

Projects inventory, financing, networks of centres,adaptation technologies

Bue

nos

Aire

s Pl

an o

f Act

ions

Tech

nolo

gy fr

amew

ork

EGTT

reco

mm

enda

tions

for

enha

ncin

g th

e im

plem

enta

tion

of th

e fr

amew

ork

Rev

iew

of E

GTT

Regional workshops in Asia, Africa, and Latin America and the Caribbean

1992 1994 1996 1998 2000 2002 2004 2006

Ber

lin m

anda

te

Millennium declaration

Johannesburg Plan of Action

FAR SAR TAR AR4

SR

on

MT

I TT

IPCC

Ky oto Protocol signed

Development and transfer of technologies

Programme for further implementation of Agenda 21

CSD

2008 2010 2012 2030

Innovative financing

Technologies for adaptation

13 14 15 16 17 18

2006

Gui

delin

es

SR

on

CC

S

Fourth periodEnhancing the implementation ofthe technology framework

Processe s initiated at COP 11

First commitment periodKy oto Protocol enters

into force

Dialogue on long- term cooperative actions

Maintain the same themes

UNFCCC proce ss

???

Other possible approaches?

Ad-Hoc Working Group on Further Commitments under the Kyoto Protocol

SBSTA mit igation w orkshops and f ive-year work programme on adaptation

MOP 1

Major milestones for the technology processMajor milestones for the technology process


4

Stage R&D Demonstration

Government support for deployment Competitive with incentives Competitive without incentives

Later Soon Tomorrow

Long-term Mid-term

Technology development cycle

Tech

nolo

gy

Now

Deployment

Near-term

Phase DemonstrationResearchMature market technologies

Availability

Type of barriers Technical, economic

Instruments

ChoicesXm FCVs by 2025 (5m in California and New York)

Create 3500 Sleipners (CCS and CDM)

Add 100X current US or Brazilian ethanol production

Add 2m 1-MW peakwindmills

Increase fuel economy for 2 billion cars from 30 to 60 mpg

Polic

y

Market, economic, socialEconomic, technical, social

Push instruments Pull instruments

Public funds

Private funds

Types

The finacingcontinuuum

Inve

stm

ent

Sources

Integrated vision Integrated vision || Technology, policy and Technology, policy and investmentinvestment

Private

Subsidies and grants

Governments contracts & specialized programs

Concessional loans & seed capital

Entrepreneur’s equity

Supplier credits & Build-Own-Transfer

Corporate finance & project finance

Third party financing

Investment insurance & guarantees

Bank loans

Public

CCS in power sector (CCS advanced steam cycle with oxyfueling, CCS-IGCC), hydrogen fuel cell vehicles, ocean energy and fusion

Biodiesel, concentrating solar power, IGCC, fuel cells, CCS advanced steam cycle with flue-gas separation Public Private Partnerships

PP

P

Energy‑efficiency (e.g. vehicle fuel economy improvements, motor and steam systems, buildings and appliances), renewable energy and reducing gas flaring

Publicly funded R&D, R&D tax credits

- Economic incentives (e.g. adoption subsidies, direct public sector investments and carbon markets)- Market creation and transformation- Regulatory approaches (e.g. emission taxes, renewable portfolio standards)- Legislative frameworks, and codes, labels and standards (technology, performance)

- Identify technology needs - Enhance access to technology information- Improve technology absorption capacity- Assess technologies for adaptation- Collaborative R&D- Endogenous technologies

- Enabling environments for technology transfer

-Options for innovative financing of technology transfer - private financing advisory network - EU - GEEREF - new multilateral technology cooperation fund


5

TNAs TNAs | | What are they?What are they?

The technology transfer framework defines TNAs as a The technology transfer framework defines TNAs as a set of set of country-driven activitiescountry-driven activities that identify and that identify and determine the mitigation and adaptation technology determine the mitigation and adaptation technology prioritiespriorities of Parties,…, particularly developing country of Parties,…, particularly developing country PartiesParties

They involve different They involve different stakeholders in a consultative stakeholders in a consultative processprocess to identify the barriers to technology transfer to identify the barriers to technology transfer and measures to address these barriers through and measures to address these barriers through sectoral analyses sectoral analyses

These activities may address soft and hard These activities may address soft and hard technologies, such as mitigation and adaptation technologies, such as mitigation and adaptation technologies, identify technologies, identify regulatory options and develop regulatory options and develop fiscal and financial incentives and capacity buildingfiscal and financial incentives and capacity building


6

TNAs TNAs | | What are they?What are they?

The The purposepurpose of TNAs is to assist in identifying and of TNAs is to assist in identifying and analysing priority technology needs, which can form analysing priority technology needs, which can form the basis for a portfolio of EST projects and the basis for a portfolio of EST projects and programmesprogrammes which can facilitate the transfer of, and which can facilitate the transfer of, and access to, the ESTs and know-how in the access to, the ESTs and know-how in the implementation of Article 4, paragraph 5, of the implementation of Article 4, paragraph 5, of the ConventionConvention

TNAs are central to the work on technology transfer. TNAs are central to the work on technology transfer.

They follow a country-driven approach, bringing They follow a country-driven approach, bringing together stakeholders to identify needs and develop together stakeholders to identify needs and develop plans to meet those needsplans to meet those needs


7

TNAs TNAs | | Support, methodology and guidanceSupport, methodology and guidance

GEF has provided funding to 94 non-Annex I Parties to conduct GEF has provided funding to 94 non-Annex I Parties to conduct TNAs through its interim financing for capacity-building in priority TNAs through its interim financing for capacity-building in priority areas – enabling activities phase II (also known as “top-ups”). 80 areas – enabling activities phase II (also known as “top-ups”). 80 are being supported by UNDP and 14 by the UNEP. Some 34 TNA are being supported by UNDP and 14 by the UNEP. Some 34 TNA reports are availablereports are available

1 expert meeting to identify methodologies to conduct TNAs 1 expert meeting to identify methodologies to conduct TNAs UNDP developed a simplified, user-friendly handbook on UNDP developed a simplified, user-friendly handbook on Conducting TNAs for climate change The TNA handbook, Conducting TNAs for climate change The TNA handbook, produced in collaboration with CTI, the EGTT and the secretariat, produced in collaboration with CTI, the EGTT and the secretariat, was made available to Parties in 2004was made available to Parties in 2004

CTI, in collaboration with UNDP, organized 3 regional workshops CTI, in collaboration with UNDP, organized 3 regional workshops to field-test and further develop the TNA handbook, to discuss to field-test and further develop the TNA handbook, to discuss regional concerns and priorities in assessing technology needs regional concerns and priorities in assessing technology needs and to further assist Parties in conducting TNAsand to further assist Parties in conducting TNAs


8

MitigationMitigation AdaptationAdaptation

Activity 2: Identify technology criteria for assessment

Activity 3: Prioritize sectors and select key technology(ies)

Activity 4: Identify barriers and policy needs*

Activity 6: Prepare a synthesis report

Review GHG inventory for

mitigation potential

Identify key sectors and characteristics

Review national plans in identified

sectors

Review available vulnerability studies

Identify vulnerable sectors

Review national plans in vulnerable

sectors

Review technology options and resources

Prepare list of sectors with

mitigation potential

Develop criteria to apply to vulnerable

sectors

Compile a list of prioritized mitigation technologies and

key sectors

Prioritize vulnerable sectors

Identify characteristics of prioritized sectors

Compile responses to address

vulnerability

Activity 5: Define and select options

Conduct environ-mental technology impact assessment

Assess capacity to use mitigation technologies

Conduct environ-mental technology impact assessment

Assess capacity to use adaptation technologies

Implementation actions

Rank and select prioritized mitigation technologies and

key sectors

Identify practical options for priority

sectors

Identify responses and technologies

Rank and prioritize applicable

technologies

Assess adequacy of financial resources Ensure transparency Identify potential

synergiesIdentify ways to reduce

barriersContinue stakeholder

involvementRevise plans as

needed

Activity 1: Prepare a preliminary overview of the sectorsCross-cutting issues

(Stakeholder engagement and barrier analysis)

Full report (including a description of the stakeholder process adopted, an evaluation of sectoral needs and opportunities…, a statement of data gaps, project concepts/proposals, potential sources of funding)Summary report in NC

Input from NC, NAPAs, national development plans

Output to NC, NAPAs national development plans

Communicate TNA findings


9

TNAs TNAs | | A simplified view of the needs assessmentsA simplified view of the needs assessments processprocess

Convene meeting to explore objectives and

scope

Define process for ongoing involvement of

all stakeholders

Identify relevant stakeholders;

consult key agencies

Establish the team~ lead agency

~ lead technical institution

~ other players

Define priority sectors and sub-sectors

Establish criteria for selecting technology

transfer priorities

Further technology & barrier assessment &

stakeholder consultations

Define alternative actions

Select priority technologies

Compile and supplement technology and market information

Select actions Prepare needs assessment report

Securing resources Development of

implementation strategies

Integration with existing development

programs

Preparation of technology transfer

plans

Implementation of technology transfer

actions

Ongoing review and refinement of actions

Forming institution arrangements

Preparing & implementing technology transfer actions & plans

Needs assessments process


10

TNAs TNAs | | What are the priority technology needs?What are the priority technology needs?

Synthesis of technology needs assessments (TNAs) – Synthesis of technology needs assessments (TNAs) – FCCC/SBSTA/2006/INF.1:FCCC/SBSTA/2006/INF.1: Highlights priority technology needs to reduce greenhouse Highlights priority technology needs to reduce greenhouse

gas emissions and facilitate adaptation to the adverse gas emissions and facilitate adaptation to the adverse impacts of climate change based on information contained in impacts of climate change based on information contained in 23 TNAs and 25 initial national communications submitted by 23 TNAs and 25 initial national communications submitted by non-Annex I Partiesnon-Annex I Parties

Draws attention to specific barriers to technology transfer and Draws attention to specific barriers to technology transfer and suggests measures to address them, including through suggests measures to address them, including through capacity-buildingcapacity-building

Highlights ways used to involve stakeholders in a Highlights ways used to involve stakeholders in a consultative process to conduct TNAs, including the consultative process to conduct TNAs, including the methodologies and criteria used to prioritize technology methodologies and criteria used to prioritize technology needsneeds


11

TNAs TNAs | | How representative are their resultsHow representative are their results??

Figure 2. Main activities for conducting a TNA for mitigation technologies

Note: Similar activities are carried out for a TNA of adaptation, but the tasks differ. Source: TNA handbook.

Table 4. An overview of the TNA process

Country

Sele

ct ta

rget

are

a

Con

duct

initi

al re

view

Set c

riter

ia

Sele

ct k

ey s

ecto

rs

Prio

ritiz

e te

chno

logi

es

Iden

tify

barr

iers

Iden

tify

mea

sure

s

Iden

tify

capa

city

-bui

ldin

g ne

eds

Des

crib

e st

akeh

olde

r pa

rtic

ipat

ion

Iden

tify

next

ste

ps

Proj

ect p

ropo

sal

Tota

la Pe

r cen

t

Albania 8 80 Azerbaijan 9 90 Bolivia 9 90 Burundi 8 80 Chile 7 70 China 9 90 Congo DR 7 70 Dominican Republic

6 60

Ecuador 8 80 Georgia 6 60 Ghana 10 100 Haiti 8 80 Indonesia 10 100 Kenya 10 100 Lesotho 9 90 Malawi 9 90 Mauritius 9 90 Moldova 4 40 Niue 9 90 Paraguay 8 80 Tajikistan 9 90 Viet Nam 8 80 Zimbabwe 7 70

Total 23 23 19 23 20 21 18 12 16 11 12 % 100 100 83 100 87 91 78 52 70 48 52


12

TNAs - how priorities were selected? TNAs - how priorities were selected? || How they relate to national development objectivesHow they relate to national development objectives??

Development benefits Climate change

Market Environmental protection

Country

Empl

oym

ent g

ener

atio

n

Wea

lth c

reat

ion

Util

izat

ion

of lo

cal r

esou

rces

Rat

iona

l util

izat

ion

of re

sour

ces

Impr

ovem

ent i

n he

alth

and

qua

lity

of li

fe

Food

sec

urity

Cap

acity

-bui

ldin

g

Envi

ronm

enta

l sus

tain

abili

ty

Gen

der e

qual

ity

Soci

o-ec

onom

ic im

port

ance

GH

G re

duct

ion

pote

ntia

l

Pres

erve

sin

ks

Pote

ntia

l for

ada

ptat

ion

Inve

stm

ent c

osts

Mai

nten

ance

cos

ts

Life

tim

e of

the

inv.

Poss

ibili

ties

for r

eplic

atio

n

Soci

al a

ccep

tanc

e

Min

imum

impa

ct o

n th

e en

viro

nmen

t

Pollu

tion

redu

ctio

n

Rec

over

y of

wat

er re

sour

ces

Pote

ntia

l for

reus

e an

d re

cycl

e To

tal

Per c

ent

Albania 12 54.5 Azerbaijan 6 27.3 Bolivia 1 4.5 Burundi 7 31.8 Chile 2 9.1 China 9 40.9 Congo DR 13 59.1 Dominican Republic 6 27.3 Ecuador 1 4.5 Georgia 3 15.8 Ghana 8 42.1 Haiti 3 15.8 Indonesia 7 36.8 Kenya 5 26.3 Lesotho 6 31.6 Malawi 7 36.8 Mauritius 5 26.3 Moldova 4 21.1 Niue 4 21.1 Paraguay 2 10.5 Tajikistan 6 31.6 Viet Nam 6 31.6 Zimbabwe 5 26.3

Total 8 2 14 14 1 0 1 1 1 16 21 1 1 16 1 3 3 9 13 2 0 0 % 34.8 8.7 60.9 60.9 4.3 0.0 4.3 4.3 4.3 69.6 91.3 4.3 4.3 69.6 4.3 13.0 13.0 39.1 56.5 8.7 0.0 0.0


13

TNAs TNAs || What are commonly identified mitigation What are commonly identified mitigation technologies in TNAs?technologies in TNAs?

0

10

20

30

40

50

60

70

80

90

100

RE

T

CH

P (c

ogen

erat

ion)

DS

M

GTC

C

Uns

peci

fied

pow

er g

ener

atio

n

CT

Coa

l

Lega

cy im

prov

emen

ts

Adv

ance

d fo

ssil

fuel

Oth

er

Ene

rgy

effic

ient

app

lianc

es

Gre

en b

uild

ings

mat

eria

ls &

des

ign

Oth

er

Dis

tric

t hea

ting

Mis

cella

neou

s

Indu

stria

l ene

rgy

effic

ienc

y

Boi

lers

Mis

cella

neou

s in

dust

ries

Cem

ent P

rodu

ctio

n

Hig

h ef

ficie

ncy

mot

ors

Ste

el in

dust

ry

Furn

aces

Bre

ad m

akin

g in

dust

ry

Oth

ers

Min

ing

Fuel

sw

itchi

ng

Alu

min

ium

indu

stry

Veh

icle

s

Man

agem

ent &

pol

icy

impr

ovem

ents

Faci

litie

s

Uns

peci

fied

publ

ic tr

ansp

ort

Frei

ght

Fore

stry

Cro

p m

anag

emen

t

Oth

er

Mis

cella

neou

s

Mis

cella

neou

s

Per c

ent o

f Par

ties

[%]

0

10

20

30

40

50

60

70

80

90

100

# of

tech

nolo

gies

iden

tifie

d

Gen

erat

ion

- 9

1.7%

Bu

ild

ing

s &

re

sid

enti

al -

87.

5%

Tra

nsm

issi

on

- 2

5%

Energy - 91.7% of Parties Industry - 79.2% Transport - 50%

Ag

ricu

ltu

re &

fo

rest

ry -

33.

3%

Was

te m

anag

emen

t -

29.2

%

Oth

er -

4.2

%


14

TNAs TNAs || What are commonly identified renewable energy What are commonly identified renewable energy technology needs?technology needs?

0

2

4

6

8

10

12

14

16

18S

olar

PV

(gri

d, o

ff-

grid

) Bio

mas

s

Min

i- an

d/or

mic

ro-

hydr

o

Win

d (in

stal

latio

ns

and/

or a

sses

smen

ts)

Hyd

ro

Sol

ar th

erm

al

Geo

ther

mal

Uns

peci

fied

RE

T

MS

W (g

ener

atio

n

and

trea

tmen

t of

MS

W)

Uns

peci

fied

hybr

ids

# of

tech

nolo

gies

iden

tifie

d

Africa Asia Europe Latin america


15

TNAS TNAS || What are commonly identified energy efficient What are commonly identified energy efficient technology needs (buildings & residential)?technology needs (buildings & residential)?

0

2

4

6

8

10

12

14

16

Ligh

ts

Sol

ar w

ater

hea

ters

Sto

ves/

oven

s

Sol

ar d

rier

s

Sol

ar c

ooke

rs

Hea

ters

Air

con

ditio

ning

Uns

peci

fied

appl

ianc

es &

tech

niqu

es

Sol

ar h

ome

syst

em

Ref

rige

rato

rs

Sol

ar w

ater

pum

ps

Win

d w

ater

pum

ping

# o

f te

chn

olo

gie

s id

enti

fied

Africa Asia Europe Latin america


16

TNAs TNAs || What are commonly identified adaptation What are commonly identified adaptation technologies in TNAs?technologies in TNAs?

0

10

20

30

40

50

60

70

Cro

p m

anag

emen

t

Irrig

atio

n

Land

man

agem

ent

Live

stoc

k

Fore

stry

Impr

oved

dra

inag

e

Pest

man

agem

ent

Food

pro

cess

ing

Oth

er (s

oft)

Fish

ery

Oth

er

Impr

oved

dra

inag

e

Emer

genc

y pl

anni

ng

Ris

e la

nd a

nd h

ouse

s

Har

d st

ruct

ural

opt

ions

Indi

geno

us o

ptio

ns

Oth

er

Soft

str

uctu

ral o

ptio

ns

Vario

us re

trea

t

Wat

er re

cycl

ing

and

cons

erva

tion

Wat

er tr

ansf

ers

Oth

er

Wat

er h

arve

stin

g

Wat

er/fo

od-b

orne

dis

ease

s

Vect

or-b

orne

dis

ease

s

Oth

er

Hig

h w

ater

ext

rem

es

Syst

emat

ic o

bser

vatio

n an

d m

onito

ring

Nat

ural

dis

aste

rs

Tour

ism

Cap

acity

bui

ldin

g

Per c

ent o

f Par

ies

[%]

0

5

10

15

20

25

30

35

40

# of

tech

nolo

gies

iden

tifie

d

Acc

om

od

ate

- 37

.5%

Agriculture & fishery - 62.5% of Parties Coastal zone - 41.7% Water - 37.5% Health - 25%

Pro

tect

- 2

0.8%

Ret

reat

- 1

6.7%


17

TNAs TNAs || What are commonly identified technologies to What are commonly identified technologies to address sea-level rise?address sea-level rise?

0

1

2

3

4

5

6

7

8

9

10

Dik

es, l

evee

s, fl

oodw

ays,

floo

dwal

ls

Bul

khea

ds, s

eaw

alls

, rev

ertm

ents

Gro

ynes

Gab

ions

Cre

atio

n of

em

bank

men

ts

Stor

m s

urge

bar

rier

s

Floo

ding

and

sto

rm d

rain

s

Peri

odic

bea

ch n

ouri

shm

ent

Bui

ldin

g-w

ith-n

atur

e te

chni

ques

Stim

ulat

e gr

owth

of c

oral

ree

fs n

atur

ally

or

artif

icia

lly

Han

d-pl

aced

roc

k se

a w

alls

(sto

ne w

alls

)

Man

grov

e pl

anta

tions

Oth

er

Coa

stal

zon

e la

bora

tory

Impr

oved

dra

inag

e

Earl

y-w

arni

ng s

yste

ms

Rai

sed

hous

es a

nd la

nd

Des

alin

atio

n pl

ants

Coa

stal

zon

e m

onito

ring

Oth

er

Rep

lace

men

t Cas

emen

ts

Oth

er

Prev

entin

g de

velo

pmen

t in

area

s ne

ar c

oast

Con

ditio

nal p

hase

d-ou

t dev

elop

men

t

Per

cen

t of c

oast

al z

one

tech

nolo

gies

iden

tifie

d [%

]

Protect Accomodate Retreat

Har

d -

27.

5%

So

ft -

12.

5%

Ind

igen

eou

s -

7.5%

Oth

er -

7.5

%


18

TNAs TNAs || What are main barriers to technology transfer What are main barriers to technology transfer identified by country?identified by country?


19

TNAs TNAs || What are main measures to address barriers What are main measures to address barriers

to technology transfer?to technology transfer? Table 10. Type of measures identified

by country

Country Ec

onom

ic /

mar

ket

Info

rmat

ion

/ aw

aren

ess

Polic

y R

egul

ator

y In

stitu

tiona

l H

uman

Te

chni

cal

Infr

astr

uctu

re

Oth

ers

Tota

l

Per c

ent

Albania 5 56 Azerbaijan 5 56 Bolivia 7 78 Burundi 6 67 Chile 1 11 China 8 89 Congo DR 7 78 Dominican Republic

0 0

Ecuador 5 56 Georgia 8 89 Ghana 0 0 Haiti 4 44 Indonesia 6 67 Kenya 6 67 Lesotho 4 44 Malawi 9 100 Mauritius 5 56 Moldova 6 67 Niue 2 22 Paraguay 0 0 Tajikistan 7 78 Viet Nam 8 89 Zimbabwe 7 78

Total 16 16 16 18 13 11 13 6 7 Percent 70 70 70 78 57 48 57 26 30

Figure 13. Common measures identified to address barriers

0

10

20

30

40

50

60

70

80

90

Reg

ulat

ory

Polic

y

Info

rmat

ion

/

awar

enes

s

Eco

nom

ic /

mar

ket

Tec

hni

cal

Inst

itut

ion

al

Hum

an

Oth

ers

Infr

astr

uctu

re

Per

cen

t of P

artie

s[%

]


20

TNAs TNAs || What are main capacity-building needs?What are main capacity-building needs? Table 11. Type of capacity-building

needs identified by country

Country Ec

onom

ic /

mar

ket

Info

rmat

ion

/ aw

aren

ess

Polic

y / p

rogr

amm

e R

egul

ator

y In

stitu

tiona

l /

orga

niza

tiona

l H

uman

Tech

nica

l In

fras

truc

ture

O

ther

s To

tal

Per c

ent

Albania 0 0 Azerbaijan 6 67 Bolivia 4 44 Burundi 3 33 Chile 1 11 China 0 0 Congo DR 3 33 Dominican Republic 2 22 Ecuador 4 44 Georgia 0 0 Ghana 8 89 Haiti 2 22 Indonesia 2 22 Kenya 6 67 Lesotho 3 33 Malawi 7 78 Mauritius 3 33 Moldova 0 0 Niue 1 11 Paraguay 1 11 Tajikistan 8 89 Viet Nam 8 89 Zimbabwe 5 56

Total 7 14 9 7 10 16 8 3 3 Percent 30 61 39 30 43 70 35 13 13

Figure 14. Common capacity-building needs

0

10

20

30

40

50

60

70

Hum

an

Info

rmat

ion

/ aw

aren

ess

Inst

itut

iona

l /or

gan

iztio

nal

Polic

y / p

rogr

amm

e

Tech

nica

l

Econ

omic

/ m

arke

t

Reg

ulat

ory

Infr

astr

uctu

re

Oth

ers

Per c

ent o

f Par

ties

[%]


21

TNAs synthesis report TNAs synthesis report || key findingskey findings

The The TNA is an effective toolTNA is an effective tool for decision makers and for decision makers and international institutions that may be involved in the international institutions that may be involved in the facilitation of the technology transfer process. The facilitation of the technology transfer process. The TNA process not only helps identify specific TNA process not only helps identify specific technology needs, but also points out the direction in technology needs, but also points out the direction in which future policies and regulations will need to which future policies and regulations will need to progressprogress

The The main beneficiary of the TNAs are the Parties that main beneficiary of the TNAs are the Parties that conducted themconducted them, as these reports provide a good basis , as these reports provide a good basis for follow-up activities to further enhance the transfer for follow-up activities to further enhance the transfer of climate friendly technologies.of climate friendly technologies.


22

Implementing TNAs Implementing TNAs || What are main opportunities for What are main opportunities for financing the implementation of TNA findings?financing the implementation of TNA findings?

PRIVATE SECTORPRIVATE SECTOR• Commercial banksCommercial banks• Micro financingMicro financing• Insurances Insurances

MULTILATERALMULTILATERAL• UNEP, UNDP, UNCTADUNEP, UNDP, UNCTAD• World Bank Carbon World Bank Carbon

Finance, CEFV, CESFFinance, CEFV, CESF• IFC, EBRDIFC, EBRD• EU COMMISSION (FP)EU COMMISSION (FP)

BILATERALBILATERAL• ODA (OECD/DAC)ODA (OECD/DAC)• Seed financingSeed financing• Green FinancingGreen Financing

CDM/JICDM/JIFINANCIAL FINANCIAL MECHANISM (GEF)MECHANISM (GEF)•Trust FundTrust Fund•SCCFSCCF•LDCFLDCF

PPPs PPPs Export Credit Agencies Export Credit Agencies

Ad

ap

tatio

n F

un

dA

da

pta

tion

Fu

nd

Convention and KPConvention and KP


23

Implementing Implementing || What is financed under the GEF?What is financed under the GEF?

The The GEF trust fundGEF trust fund allocates and disburses about allocates and disburses about USD 250 million dollars perUSD 250 million dollars per year in projects in energy year in projects in energy efficiency, renewable energies, and sustainable efficiency, renewable energies, and sustainable transportationtransportation

The current strategy focuses on market The current strategy focuses on market transformation, policy and structural changes, and in transformation, policy and structural changes, and in addressing market failuresaddressing market failures

Special Climate Change FundSpecial Climate Change Fund - mainly through - mainly through technology programmes that seek to building capacity technology programmes that seek to building capacity for applying specific technologies (~USD 6m). for applying specific technologies (~USD 6m).


24

Implementing Implementing || What are main opportunities for What are main opportunities for financing technology transfer projects under CDM?financing technology transfer projects under CDM?

Project pipeline > 1,600 projectsProject pipeline > 1,600 projects 565 registered; 121 million CERs/year; 51% large and 49% 565 registered; 121 million CERs/year; 51% large and 49%

small scalesmall scale 105 requesting registration: 22 million CERs/year105 requesting registration: 22 million CERs/year

Two recent studies :Two recent studies : Technology transfer by CDM projects, 2006, E. HaitesTechnology transfer by CDM projects, 2006, E. Haites Technology transfer in the CDM, 2006, ECN, H. C. de ConinckTechnology transfer in the CDM, 2006, ECN, H. C. de Coninck

Roughly one-third of all CDM projects accounting for Roughly one-third of all CDM projects accounting for almost two-thirds of the annual emission reductions almost two-thirds of the annual emission reductions involve technology transferinvolve technology transfer


25

Financing Financing || What are main opportunities for financing What are main opportunities for financing technology transfer projects under CDM?technology transfer projects under CDM?

Registered projects

Energy industries (renewable - / non-renewable sources)

50%

Waste handling and disposal

23%

Agriculture9%

Energy demand1%

Chemical industries1%

Afforestation and reforestation

0%

Manufacturing industries

6%

Fugitive emissions from fuels

(solid, oil and gas)8%

Mining/mineral production

0%

Transport0%

Fugitive emissions from production and

consumption of halocarbons and

sulphur hexafluoride2%

Technology tends to play an Technology tends to play an important role - projects either important role - projects either scale-up the deployment of scale-up the deployment of technology solutions already technology solutions already available in the host country or available in the host country or introduce technological introduce technological solutions from other countriessolutions from other countries

Evident from the Evident from the methodologies applied so far, methodologies applied so far, which which tend to involve a change tend to involve a change in technologyin technology rather than rather than change in management or change in management or policypolicy


26

0

50

100

150

200

250

Bio

mas

s en

ergy

Hyd

ro

Ener

gy E

ffic

ienc

y (in

dust

ry)

Win

d

Agr

icul

ture

Land

fill g

as

Bio

gas

Foss

il fu

el s

witc

h (s

ervi

ce)

Cem

ent

HFC

s

Ener

gy E

ffic

ienc

y (s

ervi

ce)

Fugi

tive

Geo

ther

mal

Sola

r

Ener

gy E

ffic

ienc

y (h

ouse

hold

s)

N2O

Coa

l bed

/min

e m

etha

ne

Ener

gy d

istr

ibut

ion

Ref

ores

tatio

n

Tida

l

Tran

spor

t

Aff

ores

tatio

n

Oth

ers

# o

f p

roje

cts

0

1,000

2,000

3,000

4,000

5,000

6,000

ktC

O2

e/y

r

Number of projectsAverage project size

85% claim TT

100% claim TT

15% claim TT

21% claim TT

14.5% claim TT

13.8% claim TT


854 projects

68% unilateral

47% small-scale

Average project size 175 ktCO2e/yr

Source: Technology transfer by CDM projects, 2006, E. Haites


27


0

50

100

150

200

250

Biom

ass

ener

gy

Hyd

ro

Ener

gy E

ffici

ency

(ind

ustry

)

Win

d

Agric

ultu

re

Land

fill g

as

Biog

as

Foss

il fu

el s

witc

h (s

ervi

ce)

Cem

ent

HFC

s

Ener

gy E

ffici

ency

(ser

vice

)

Fugi

tive

Geo

ther

mal

Sola

r

Ener

gy E

ffici

ency

(hou

seho

lds)

N2O

Coa

l bed

/min

e m

etha

ne

Ener

gy d

istri

butio

n

Ref

ores

tatio

n

Tida

l

Tran

spor

t

Affo

rest

atio

n

Oth

ers

# o

f p

roje

cts

with TT claims

without TT claims

Source: Technology transfer by CDM projects, 2006, E. Haites


28

Implementing Implementing || What are main opportunities for What are main opportunities for

financing technology transfer projects under ODA?financing technology transfer projects under ODA?

DAC members provided some DAC members provided some USD 2.8 billionsUSD 2.8 billions per year per year in average through their climate change related in average through their climate change related bilateral aidbilateral aid

Source: data are derived from the OECD Creditor Reporting System database and do not include multilateral contributions to organizations active in the field of climate change

0%

20%

40%

60%

80%

100%

1998/2000 2001/2004

Other and unspecif ied

UMICs

LMICs

OTHER LICs

LDCs

Breakdown by income groupBreakdown by income group Breakdown by regionBreakdown by region

0%

20%

40%

60%

80%

100%

1998/2000 2001/2004

Other and unspecified

Asia - other

Asia - Far East

America

Africa

Climate change-related aid by income group and by region, commitments 1998-2004Climate change-related aid by income group and by region, commitments 1998-2004


29

Financing Financing || What are main opportunities for What are main opportunities for financing technology transfer projects under ODA?financing technology transfer projects under ODA?

Water supply andsanitationTransport

Energy

Agriculture

Forestry

General environmentalprotectionOther

Water supply andsanitationTransport

Energy

Agriculture

Forestry

General environmentalprotectionOther

1998-20001998-2000 2001-20042001-2004

Climate change-related aid by sector commitments 1998-2004Climate change-related aid by sector commitments 1998-2004

The DAC data indicate that most of support went into The DAC data indicate that most of support went into energyenergy and and transporttransport sectors. A detailed analysis is sectors. A detailed analysis is nevertheless needed to identify to what extents these nevertheless needed to identify to what extents these flows were used for technology transfer and what were flows were used for technology transfer and what were the technologies that received supportthe technologies that received support


30

Implementing Implementing || What opportunities exists for What opportunities exists for multilateral financing of technology transfer projects?multilateral financing of technology transfer projects?

The World Bank Group has launched a series of carbon funds to The World Bank Group has launched a series of carbon funds to demonstrate how to achieve cost-effective GHG reductions while demonstrate how to achieve cost-effective GHG reductions while contributing to sustainable development. contributing to sustainable development. The World Bank The World Bank Investment Framework for Clean Energy and Investment Framework for Clean Energy and

DevelopmentDevelopment aims to provide extensive support for mitigation and aims to provide extensive support for mitigation and adaptation projectsadaptation projects

The new financial instruments being considered are a The new financial instruments being considered are a Clean Energy Clean Energy Financing VehicleFinancing Vehicle, which would blend public and private sources of , which would blend public and private sources of financing to promote low carbon technologies, and a financing to promote low carbon technologies, and a Clean Energy Clean Energy Support FundSupport Fund, which would provide subsidies in line with the extent , which would provide subsidies in line with the extent of carbon emission reductionsof carbon emission reductions

The UNDP is establishing its Millennium Development Goal (MDG) The UNDP is establishing its Millennium Development Goal (MDG) Carbon Facility, a carbon-finance mechanism featuring emission Carbon Facility, a carbon-finance mechanism featuring emission offsets derived from projects that contribute directly to achieving offsets derived from projects that contribute directly to achieving the MDGs. Under this facility, UNDP will mobilize carbon finance the MDGs. Under this facility, UNDP will mobilize carbon finance and direct this towards developing a portfolio of projects that and direct this towards developing a portfolio of projects that yield tangible sustainable development and poverty reduction yield tangible sustainable development and poverty reduction benefits across a diverse group of developing countriesbenefits across a diverse group of developing countries


31

Implementing Implementing || What opportunities exists for What opportunities exists for multilateral financing of technology transfer projects?multilateral financing of technology transfer projects?

The The Finance Initiative of the UNEPFinance Initiative of the UNEP FI is a global partnership FI is a global partnership between UNEP and over 160 financial institutions and a range of between UNEP and over 160 financial institutions and a range of partner organizations to develop and promote linkages between partner organizations to develop and promote linkages between the environment, sustainability and financial performance. UNEP the environment, sustainability and financial performance. UNEP FI focal areas include examination of different types of financial FI focal areas include examination of different types of financial instruments/products and services that lead to climate change instruments/products and services that lead to climate change mitigation and adaptation, and renewable energy.mitigation and adaptation, and renewable energy.

The The Global Energy Efficiency and Renewable Energy FundGlobal Energy Efficiency and Renewable Energy Fund of the of the European Commission aims to blend capital of public and private European Commission aims to blend capital of public and private investors, and support small- and medium-size projects and investors, and support small- and medium-size projects and enterprises. The fund recognizes that private investors need enterprises. The fund recognizes that private investors need higher financial returns and that public investors value the higher financial returns and that public investors value the economic, social and environmental benefits of renewable energy economic, social and environmental benefits of renewable energy investments more than most private investorsinvestments more than most private investors


32

Implementing Implementing || What is the role of What is the role of private sector investment?private sector investment?

Private sector investment has been recognized as a key for the Private sector investment has been recognized as a key for the success of technology transfer activities. success of technology transfer activities.

The level of FDI, commercial lending, and equity investment all The level of FDI, commercial lending, and equity investment all increased greatly in recent years. For example, FDI flows to increased greatly in recent years. For example, FDI flows to developing countries continued to grow in 2005, reaching a record developing countries continued to grow in 2005, reaching a record level of level of USD 237.5 billionUSD 237.5 billion

These are the dominant means by which the private sector makes These are the dominant means by which the private sector makes technology-based investments in developing countries and technology-based investments in developing countries and economies in transition, often in the economies in transition, often in the industry, energy supply industry, energy supply and and transportation sectorstransportation sectors

It is therefore critical to ensure that the necessary conditions are in It is therefore critical to ensure that the necessary conditions are in place to encourage this flow and to ensure that all countries have place to encourage this flow and to ensure that all countries have access to it (main beneficiaries at present are Europe & Central Asia, access to it (main beneficiaries at present are Europe & Central Asia, East Asia and the Pacific and Latin America and Caribbean). East Asia and the Pacific and Latin America and Caribbean).


33

Implementing Implementing || What are What are innovative options?innovative options?

Innovative financing options are simply new Innovative financing options are simply new combinations or adjustments of existing instruments combinations or adjustments of existing instruments and resources, rather than new financial instruments and resources, rather than new financial instruments aimed exclusively at addressing climate changeaimed exclusively at addressing climate change Introducing financing considerations in the project Introducing financing considerations in the project

development cycledevelopment cycle Financing continuum: general financing instruments for Financing continuum: general financing instruments for

technology transfertechnology transfer

2 workshops – brought together Parties, project 2 workshops – brought together Parties, project developers and international financial communitydevelopers and international financial community

Technical paper on Innovative financing Technical paper on Innovative financing (FCCC/SBSTA/2006/TP1) – an easy-to-read brochure (FCCC/SBSTA/2006/TP1) – an easy-to-read brochure for SB 26for SB 26


34

Implementing Implementing || What are What are innovative options?innovative options?

Prepare and disseminate a Practitioner's guidePrepare and disseminate a Practitioner's guide to to support projects developers to prepare support projects developers to prepare project proposals that meet the standards project proposals that meet the standards of financial communityof financial community

Available in several languages; English, French, SpanishAvailable in several languages; English, French, Spanish

A roll-out programme is under preparation (regional training A roll-out programme is under preparation (regional training workshops, learning centres, help desk)workshops, learning centres, help desk)

CTI – Private Financing Advisory NetworkCTI – Private Financing Advisory Network


35

Issues for considerationIssues for consideration

Conducting TNAsConducting TNAs Identification of good practicesIdentification of good practices Enhance guidanceEnhance guidance Support countries conducting TNAsSupport countries conducting TNAs

Reporting, synthesizing and communicating TNA Reporting, synthesizing and communicating TNA findingsfindings Enhance guidance for reportingEnhance guidance for reporting Awareness rising on TNA results (national and international))Awareness rising on TNA results (national and international)) Update TNAsUpdate TNAs

Implementing the findings of TNAsImplementing the findings of TNAs Develop good implementation plans and project proposalsDevelop good implementation plans and project proposals PFAN?PFAN?


36

THANK YOU!THANK YOU!

[email protected]@unfccc.int

Documents

1 July 2007 Technologies needs assessments under the UNFCCC process Iulian Florin Vladu Technology Sub-programme Adaptation, Technology and Science Programme