Economic Research Institute for ASEAN and East Asia (ERIA) - Presentation by Venkatachalam Anbumozhi

1. Aligning Policies for the
Transition To a Low-Carbon
Economy
Venkatachalam Anbumozhi
Economic Research Institute for ASEAN and East Asia (ERIA)
Email: v.anbumozhi@eria.org
OECD – Ministry of Finance Indonesia
Expert Seminar, Bogor Novermber 4-5, 2015

2. Reforming Cross Cutting Policies + Aligning Polices
for Specific Activities

3. Low-carbon Economy is an imperative, feasible, and value creating
inclusive growth model for Asia
0
5
10
15
20
25
0 5000 10000 15000 20000 25000 30000 35000 40000 45000
CO2emissionspercapita(metrictons)
GDP per capita (PPP, constant 2005 international $)
USA
Australia
IrelandUK
Japan
France
Greece
Republic
of Korea
Malaysia
Mexico
Brazil
Thailand
PRC
India
Russian Federation
High-carbon
growth path
Low-carbon
inclusive
growth path
Emerging
Asia
Emerging
Asia
Emerging
Asia

4. Policy tools
• Regulations
• Financial incentives
• Institutional support
• Feed-in tariff
• Renewable portfolio
standard
• Tax on fossil fuel
• Support for R&D
• Deployment of
existing technology
• Technology transfer
Emission
reduction
cost
Emission reduction
potential
Energy efficiency
Renewable energy
New low carbon
technologies
0
Energy sector reforms
Though fragmented Asia’s current policy actions are
realistic, and replicable, but up-scalable
Country INDC - Pledges of carbon emissions reduction
China Cut in carbon emissions/GDP by 60–65% below 2005 levels by
2030
India Cut in emission intensity by 33–35% below 2005 levels by 2030

5. 0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
But Barriers Remain - Conflicting Interests - RCEP
Countries MFN Tariff for EGS
APEC ESCAP OECD
Source: ERIA, 2015

6. Investment Requirements in a Low-Carbon Economy
Scenario
US (2,395)
PRC (2,369)
ASEAN(388)
Japan (399)
Others(1,705)
Sum of PRC, India, ASEAN accounts for
47% of world total
Note: Investment required for achieving 450PPM scenario
[almost equal to a 50% reduction by 2030 in energy & transport infrastructure and
energy efficiency. Additional 100 billion/year for building, forestry, water & agri. sectors]
Russian
Federation(329)
India (818)
.
Public
Finance
Private
Finance
International
Finance (from
advanced
economies)
Tax
Market-based
instruments
Privatecapital
Carbonmarket
Multilateral
development
bankinstruments
BilateralODA
MultilateralAid
throughUN
system
Financing Low-Carbon Green Growth
($ 100 billion)
In USD Billion
Needs Sources
Telecommunication, 2

7. A
Free
Trade in
Low-
carbon
energy
good and
services
B
Pooling of
regional
public and
private
financial
resources
C
Integrat
ion of
carbon
Market
s
D
Strength
ening
regional
innovatio
n
systems
E
Collective
learning
and
capacity
building
Market based Options Mandated Options
Accelerating Country Level Actions on Low-carbon Green Growth
Pull
Push
Regional Cooperation Framework for
Accelerating the Transition
Source: ERIA, 2015