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Support for the transition to a competitive low
carbon economy
Dr. Karsten Krause
European CommissionDirectorate-General for Climate ActionLow Carbon Technologies Unit
2
A cost-efficient pathway towards 2050 (world-wide)
EC, 2010
Carbon intensity of GDP in 2008 for countries in transition in Europe and Central Asia
Source: IEA, EBRD
(2011)
Technology Transfer & Indigenous Capacity
• Creation of an "enabling environment" can only happen within a country.
• The majority of the investment will come from the private sector, public funding has an important leverage effect.
• Support to assess national technology needs, to develop an "enabling environment" and to initiate projects is available.
UNFCCC Technology Mechanism
• Technology Executive Committee, as an expert body for giving strategic recommendations to the COP
• Climate Technology Centre and Network to provide practical support for the transfer of mitigation and adaptation technologies.
Climate Technology Center and Network
EU Funding Instruments
Climate Action is a Priority for the EU …
• Greenhouse gas mitigation and the resilience against climate change are cross-cutting priorities in all EU programmes
• At least 20% of the 201 – 2020 EU budget will support the climate action targets - around €27.5 billion p.a.
• Additional funding through EU initiatives outside the EU budget, notably NER300 and the lending portfolio of the European finance institutions.
Research and Innovation Policy
• Horizon 2020 budget: 70bn
• At least 35% climate related expenditure within Horizon 2020.
• Focus on energy efficiency, smart cities and lowcarbon energy generation
• First calls will be published in early December2013
LIFE Programme (2014-2020)
LIFE Programme €3,456.7 (2014-2020)
Sub-programme for
Climate Action
€864.2 (25% of LIFE
budget)
Climate Change
Mitigation
Climate Change
Adaptation
Information &
Governance
Sub-programme for
Environment
€2,592.5 (75% of LIFE
budget) Nature &
Biodiversity
Environment &
Resource Efficiency
Information &
Governance
€1,155 min (55% of ENV
Sub-progrm)
LIFE-Climate Action: Types of funding instruments
• innovative financial instruments in most cases offer the highest leverage;
• integrated projects offer a medium leverage through blending of financial sources from different sources (e.g. rural development, research, regional development);
• individual project grants normally offer lower leverage, but may provide chances to support particularly innovative mitigation/adaptation projects.
Beneficiary countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine (partner countries)
Project time frame: October 2012 – October 2016
Project budget: maximum €7 million*
Funding authority: European Commission (DEVCO)
* Part of a larger 'Clima East project' package
SUPPORT TO CLIMATE CHANGE MITIGATION POLICIES
AND MEASURES IN EASTERN PARTNERSHIP COUNTRIES
AND RUSSIA (CLIMA EAST PROJECT)
� Improve capacities to contribute to the 2015 Global Climate Agreement through better access to information and expertise on EU climate policies and the emerging EU climate acquis
� Promotion of dialogue with the EU on climate change and support with approximation to the EU climate change and related climate and energy acquis
� Strengthening of capacity for strategic planning with regard to mitigation, including NAMA's, GHG-related energy efficiency strategies and low-carbon strategies
� Strengthening of capacity for strategic planning with regard to adaptation to climate change, including impact and vulnerability assessment
� Support for the elaboration of domestic and regional emission trading systems
Clima East objectives
Key Messages
• Need for an "enabling environment" to stimulate project development
• Public Private Partnerships
• International support structure
• EU support
More information
http://ec.europa.eu/clima/index_en.htm
• Thank you for your attention!
Source: M. Grubb 2004
EXAMPLES OF A GOOD PROGRESS WITH CLIMATE CHANGE MITIGATION POLICIES IN THE REGION
• Ukraine• - 267 registered JI projects (over 350 million ERU)• - over 500 projects under Green Investment Scheme• - feed-in (“green”) tariff (2009, 2012) to support renewable energy• - tax incentives for manufacturers of energy efficient equipment
(2011) and power generation from renewable energy sources (2012)• Moldova• - Low Emission Strategy (2011) and Policy Options for Climate Change
Adaptation• - Laws on Energy Efficiency (2010) and on Renewable Energy (2007)
provide support to EE&RE, including investment incentives• - National Agency for Energy Efficiency was created in 2011• Belarus• - Regulation on financial incentives for energy saving technologies
implementation in governmental sector (2010)• - Law on Renewable Energy Sources (2010) creates legal environment
and gives preferences for investments in renewables
•
Accelerating the Market Take-up
Source: IPCC 2007, AR 4, WG III
ESIF 2014-2020
Climate action can be fully mainstreamed into the five European Structural and Investment Funds for the period 2014-2020.
• European Regional Development Fund (ERDF)
• European Social Fund (ESF)
• Cohesion Fund (CF)
• European Agricultural Fund for Rural Development (EAFRD)
• European Maritime and Fisheries Fund (EMFF)
• The funds contribute to the objective of having at least 20% climate related expenditure for the next Multiannual Financial Framework (MFF).