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Beyond hardware financing: Pro-poor pathways to low carbon development Dr David Ockwell & Dr Rob Byrne October 2013 [email protected] [email protected]

Beyond hardware financing: Pro-poor pathways to low carbon development

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A presentation by Dr David Ockwell and Dr Rob Byrne, given at UEA in October 2013, as part of the project Pro-poor, low carbon development: Improving low carbon energy access and development benefits in Least Developed Countries (LDC). Find out more: http://steps-centre.org/project/low_carbon_development/

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Page 1: Beyond hardware financing: Pro-poor pathways to low carbon development

Beyond hardware financing: Pro-poor pathways to low carbon development

Dr David Ockwell & Dr Rob Byrne

October 2013 [email protected] [email protected]

Page 2: Beyond hardware financing: Pro-poor pathways to low carbon development

www.steps-centre.org/project/low_carbon_development

Page 3: Beyond hardware financing: Pro-poor pathways to low carbon development

3

Page 4: Beyond hardware financing: Pro-poor pathways to low carbon development

Overview

1. Pathways to low carbon development (Stirling 2012) 2. Dominant framing: Hardware financing 3. Alternative 1: Building innovation capacities 4. Alternative 2: Socio-technical nature of change & development 5. Our Kenya study 6. Potential implications for policy and research

Page 5: Beyond hardware financing: Pro-poor pathways to low carbon development

Multiple Pathways to “Low Carbon Development” - What? For who? How?

Page 6: Beyond hardware financing: Pro-poor pathways to low carbon development

Multiple Pathways to “Low Carbon Development” - What? For who? How? - Multiple configurations of energy services, access, behaviour, technologies….

Page 7: Beyond hardware financing: Pro-poor pathways to low carbon development

Intended and unintended processes and power ‘close down’ pathways

Social expectations, cultural norms

Page 8: Beyond hardware financing: Pro-poor pathways to low carbon development

Intended and unintended processes and power ‘close down’ pathways

Historical contingency: Path dependence

Page 9: Beyond hardware financing: Pro-poor pathways to low carbon development

Intended and unintended processes and power ‘close down’ pathways

Politics: Interests, power – who frames the problem?

Page 10: Beyond hardware financing: Pro-poor pathways to low carbon development

Intended and unintended processes and power ‘close down’ pathways

Economics: Lock-in to inferior technologies – even in competitive markets

Page 11: Beyond hardware financing: Pro-poor pathways to low carbon development

Dominant framing: Hardware financing

Hardware financing policies

e.g. CDM

Internalise positive externalities

(carbon mitigation) to cover additional cost of low carbon

technologies

Page 12: Beyond hardware financing: Pro-poor pathways to low carbon development

China, 135.0, 72%

India, 22.1, 12%

Brazil, 2.0, 1%

ROW, 25.6, 13% Africa, 3.6, 2%

Key Country, USD billion, percentage

ROW: Rest of the World

Source: Authors, based on analysis of the CDM pipeline

Accumulated investment through the CDM in USD billion by selected countries and regions as at end of October 2012 (http://www.cdmpipeline.org)

Page 13: Beyond hardware financing: Pro-poor pathways to low carbon development

1414 1413

469 459

272 234

121 79 73 69 61

35 35 33 25 22 21 17 15 14 12 7 5 2 1

Hydro Wind

Methane avoidance Biomass energy

Landfill gas EE own generation

Solar N2O

Fossil fuel switch EE industry

Coal bed/mine methane EE households EE supply side Reforestation

Fugitive HFCs

Cement Transport

Geothermal PFCs and SF6

Energy distribution Afforestation

EE service CO2 usage

Tidal

Source: Authors, based on analysis of the CDM pipeline

• 87% registered CDM projects use just six types of technology

• Only one new renewable energy technology – wind – although mature relative to other new renewables

• Solar only 2% of portfolio

Number of registered CDM projects as at end of October 2012, by project type (4908 total registered projects) (http://www.cdmpipeline.org)

Page 14: Beyond hardware financing: Pro-poor pathways to low carbon development

Building innovation capacities

Technology suppliers

Technology importers

Technology transferred

Supplier firms’ engineering, managerial and other

technological capabilities

Capital goods, services & designs

Skills & know-how for operation &

maintenance

Knowledge & expertise behind

technology

Accumulation of innovation capacities

New production capacity

Flow A

Flow B

Flow C

Page 15: Beyond hardware financing: Pro-poor pathways to low carbon development

Building innovation systems

Indigenous support for technological capabilities

National Innovation System

Skills & know-how for operation &

maintenance

Accumulation of innovation capacity

Knowledge & expertise behind technology

Technology transfer

New production capacity Capital goods, services

& designs

Page 16: Beyond hardware financing: Pro-poor pathways to low carbon development

China, 135.0, 72%

India, 22.1, 12%

Brazil, 2.0, 1%

ROW, 25.6, 13% Africa, 3.6, 2%

Key Country, USD billion, percentage

ROW: Rest of the World

Source: Authors, based on analysis of the CDM pipeline

Accumulated investment through the CDM in USD billion by selected countries and regions as at end of October 2012 (http://www.cdmpipeline.org)

Page 17: Beyond hardware financing: Pro-poor pathways to low carbon development

Socio-technical nature of change &

development

Page 18: Beyond hardware financing: Pro-poor pathways to low carbon development

Socio-technical nature of change &

development

Page 19: Beyond hardware financing: Pro-poor pathways to low carbon development

Socio-technical nature of change &

development

Page 20: Beyond hardware financing: Pro-poor pathways to low carbon development

Socio-technical nature of change &

development

Page 21: Beyond hardware financing: Pro-poor pathways to low carbon development

Research questions

Case study: • PV based electrical services in Kenya • Per capita = most successful global market for off-grid PV (?)

Research questions: What factors can explain the success of the off-grid PV market in

Kenya? • What role has hardware financing played? • What technological capacity building activities can be identified? • Can “innovation system builders” be identified? • How can this inform policy (especially Climate Innovation Centres)?

Page 22: Beyond hardware financing: Pro-poor pathways to low carbon development

Methodology

• In-depth historical analysis • Innovation Histories Method (Douthwaite & Ashby 2005) • Stakeholder workshop + in-depth interviews • Detailed timeline of PV market development • Codified interrogation against research questions

Page 23: Beyond hardware financing: Pro-poor pathways to low carbon development

Snap shot of time line

Date Description Others involved Significance Documents Elaborations

1978 (Henry Watitwa)

Brother used dry cell with wires to light a spot light bulb in our room

Friends and other brothers

For fun – indicates interest in, and awareness of, electricity (power was only in selected houses in town, institutions and Government buildings)

Personal memory motivation

There was no solar.

August 1982 (Enos Orongo)

Failed Coup Contextual event Stimulated Government directive to increase TV network country wide

Possible press reports?

Page 24: Beyond hardware financing: Pro-poor pathways to low carbon development

PVMTI vs LA: An illustration from solar in Kenya

Page 25: Beyond hardware financing: Pro-poor pathways to low carbon development

Lighting Africa:

Building indigenous technological capacities & innovation systems

Different framings

CDM:

Funding for one-off, international hardware investments

Page 26: Beyond hardware financing: Pro-poor pathways to low carbon development

Lighting Africa:

Poor countries, poor people

Different framings: Different distribution of benefits

CDM:

Private investors,

China, India, Brazil

Page 27: Beyond hardware financing: Pro-poor pathways to low carbon development

Different framings: Different distribution of benefits

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Conclusion: Pro-poor pathways to low carbon development?

www.steps-centre.org/project/low_carbon_development