8th Strategic Dialogue of the CMP - Suzi Kerr, Environmental Defense Fund

Session 3B presentation from the 8th Strategic Dialogue of the Carbon Market Platform, 23-24 October 2023

Environment

Climate Action Teams: Deep cooperation at scale
Strategic Dialogue of the Carbon Market Platform, Tokyo
Session 3B: Enhancing Article 6 implementation and the ambition of NDCs
Suzi Kerr
Senior Vice President and Chief Economist
Environmental Defense Fund
24 October, 2023

Over 30% in China and
10% in India alone in 2030
How can this be paid for
and financed?
The challenge:
75% of reductions need to be happen in developing countries
Future GHG emissions pathways in Annex-I and Non-
Annex I countries
Source: Enerdata, EnerFuture Edition 2021

0
500
1000
1500
2000
2500
3000
3500
4000
4500
2021 Aspirational domestic Aspirational ‐ international
trading
Private ‐ no carbon pricing Domestic compliance pricing Public/ODA
VCM Int. compliance pricing Gap
Total finance needed for
clean transition annually
by 2030
– 4.3 trillion
Finance gap in 2021
– 3.7 trillion
Climate Policy Initiative

Domestic compliance pricing –-
could play a major role in
mobilizing private investment
International transfers for
mitigation under Art. 6, CORSIA
and VCM could also
- a complement to climate finance
from MDBs and developed countries
- higher C price in new countries
Filling the investment gap in 2030
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2021 Aspirational domestic Aspirational ‐
international trading
Private ‐ no carbon pricing Domestic compliance pricing
Public/ODA VCM
Int. compliance pricing Gap

Climate Action Teams potential in Chile
BAU
NDC – crediting baseline
To sell: ~7% extra
reduction
peaking

What is a ‘Climate Team’?
Payments for additional reductions if they occur
1. Climate finance and results-based debt relief
2. Guaranteed minimum credit price, option to buy at
higher price and right of first refusal up to that price
3. Advance funding to purchase ITMOs
External observers to comment on the
environmental integrity of the agreement
Switzerland New
Zealand
Canada
California
New
Zealand
company
Chilean Climate Fund
Climate finance
Chilean
govt.

System-wide investment and just transition plan
e.g., Just Electricity Transition Partnerships (JET-P)
Technical support and capability building
e.g., Japanese Crediting System
Crediting at scale for integrity and system change
e.g., Jurisdictional REDD (e.g. LEAF); Electricity Transition Accelerator (ETA)
Price / risk management and forward commitment of buyer resources
e.g., Asian Development Bank Trust Funds and Emission Reduction Purchase
Agreements
Manage Foreign Debt exposure
e.g., Debt for Climate swaps (but results-based)
CAT combines features now being deployed

System-wide plan
Support at Scale
Sustained cooperation

Climate ActionTeams: key features
1. Results-based: ‘market’
2. Large scale
1. National - Multi-sectoral
2. Long term
3. Multiple partner countries who pool demand
and political and technical support
4. Strong relationships – not just a contract
5. Collaboration with investor community to
mobilize clean investment

1) The document discusses the role of development finance institutions (DFIs) in supporting low-carbon investment and green growth through mobilizing private funding and providing financing support such as guarantees, insurance, and co-financing. 2) It outlines Japan Bank for International Cooperation's (JBIC) efforts to develop a "Joint Crediting Mechanism" (J-MRV) to quantify greenhouse gas emission reductions from low-carbon investment projects and apply it to their due diligence and project finance processes. 3) JBIC aims for J-MRV to serve as an internationally accepted methodology and help scale up low-carbon investment while preparing for future carbon market mechanisms.

CCXG global forum, April 2024, Siddharth Singh

Clean energy investment is growing faster than investment in fossil fuels, with about $1.8 invested in clean energy for every $1 in fossil fuels. However, emerging and developing economies excluding China only account for 14% of global clean energy investment. A six-fold increase in clean energy investment is needed in these economies by 2035 to be aligned with net-zero emissions goals. Emerging and developing economies also face significantly higher costs of capital for clean energy projects than advanced economies, making projects more challenging. Bringing down financing costs is key to enabling affordable clean energy transitions globally.

Presentationv1 Part2

Abhishek Mago

The document discusses various aspects of carbon trading and offsets, including: 1) Two types of carbon trading - exchange traded and over-the-counter. India has over 25% of approved CDM projects globally. 2) Criticisms of carbon trading include that some emission reductions are exaggerated, profits go to middlemen, and the system is too complex to monitor and control. A carbon tax may be a better approach. 3) The document outlines domestic challenges and opportunities for India in low carbon growth and carbon financing, and discusses some perspectives on the Copenhagen Accord.

South African Renewables Initiative Briefing

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This document summarizes a South African government initiative to design options for unlocking the economic benefits of renewable energy. It finds that developing 15% of South Africa's energy from renewables by 2020-2025 could create thousands of new jobs and attract billions in private investment while reducing emissions. International grants and concessionary financing could help close the funding gap for the higher initial costs of renewables, lowering the cost to South Africa and generating high returns for the amounts invested. A phased approach moving from pioneering to commercial applications is recommended to gradually reduce dependency on subsidies.

CCXG Global Forum March 2018, Climate, Growth and Infrastructure:Where to fr...

1) Boosting economic growth does not require locking the world into a high-emissions future if pro-growth reforms are combined with coherent climate policy and alignment across the economy. 2) More ambitious climate policies will not harm growth and the combined actions of climate policies and economic reform still deliver net GDP increase in the long run. 3) Getting investment flowing into infrastructure for a low-carbon future requires a 10% increase in spending, offset by $1.6 trillion in annual fossil fuel savings, to achieve the goals of the Paris Agreement.

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1) Boosting economic growth does not require locking the world into a high-emissions future if pro-growth reforms are combined with coherent climate policy and alignment across the economy. 2) More ambitious climate policies will not harm growth and the combined actions of climate policies and economic reform still deliver net GDP increase in the long run. 3) Getting investment flowing into climate solutions requires a 10% increase in infrastructure spending, offset by $1.6 trillion in annual fossil fuel savings, to achieve a well-below 2 degree scenario.

Clear price signals and cooperation through ‘climate teams’ on the path towa...

1. The document discusses managing New Zealand's emissions trading scheme (ETS) to provide clear price signals and cooperation through "climate teams" toward low emissions. 2. It proposes introducing a cap on ETS units and a price band to the ETS to provide more predictable policy and clear price signals for investors and support domestic decarbonization. 3. It also discusses strategically purchasing high-quality international emission reductions managed by the government and establishing "climate teams" for cooperation on emission reductions abroad.

Bjorn Stigson's Presentation to the V100 Business Forum

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1) Boosting economic growth does not require locking the world into a high-emissions future if pro-growth reforms are combined with coherent climate policy and alignment across the economy. 2) More ambitious climate policies will not harm growth and the combined actions of climate policies and economic reform still deliver net GDP increase in the long run. 3) Getting investment flowing into climate solutions requires a 10% increase in infrastructure spending, offset by $1.6 trillion in annual fossil fuel savings, to achieve a well-below 2 degree scenario.

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Bjorn Stigson's V100 Presentation

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The document discusses the World Bank's strategic framework for addressing climate change and development. It aims to enable the WBG to support sustainable development and poverty reduction as climate risks and opportunities arise. Key principles include working in partnerships guided by the UNFCCC process and taking country-led, tailored approaches. The WBG will provide knowledge, mobilize resources, and support regional and country climate strategies and plans through financing climate change mitigation and adaptation. Carbon markets can play a central role in mobilizing private sector finance for low carbon investments in developing countries.

Private Sector Perspective on the Green Climate Fund_AfDB 210916

Gori Daniel

The Green Climate Fund (GCF) was established to help developing countries mitigate and adapt to climate change. It aims to mobilize $100 billion annually by 2020 from public and private sources. The GCF Private Sector Facility directs funds to private sector climate projects. However, barriers like high costs and risk hamper private investment. Tools like concessional finance, green bonds, and yieldcos can help mitigate risks and leverage private capital. The African Development Bank can influence policies and provide de-risking instruments to unlock renewable energy investment across Africa.

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What You Need to Know: The EU Non-Financial Reporting Directive and what its ...

Speakers: Michael Zimonyi, Policy & External Affairs Director and Nontokozo Khumalo, Corporate Engagement Manager at CDSB. The EU Non-Financial Reporting Directive (NFRD) came into effect in 2018 and requires listed companies and other public interest entities to disclose information on the way they operate and how they manage social and environmental challenges. In June 2019 the European Commission published guidelines on reporting climate-related information which included the integration of the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations. These guidelines supplement the existing Non-Financial Reporting Guidelines released in 2017. The EU is now set to publish a fitness check of corporate reporting to assess the appropriateness of existing legislation, with a special focus on NFRD, giving way to a possibility of a reopening of the current regulation. In advance of these updates, there is a tremendous opportunity for companies to get ahead of the curve to ensure that they are complying with the EU reporting guidelines and prepared for potential new regulations.   During this webinar briefing, you’ll gain insight into:  Current requirements of the NFR Directive and Guidelines; The state of corporate climate change reporting; Potential impacts of a reopened NFR Directive and CDSB’s expectations going forward.

climate

Gaurav

The document discusses climate change, carbon markets, and opportunities for corporations. It notes that while climate change poses a major challenge, carbon markets under the Kyoto Protocol provide opportunities for cost-effective emissions reductions. Most large Indian corporations are currently unprepared to engage with carbon markets and view climate change as a non-strategic issue. The document recommends that corporations view carbon as a strategic opportunity, build internal capacity on carbon issues, and lobby for supportive policies and regulations to harness benefits from carbon markets.

United innovations

The Carbon Trust

International collaboration on low-carbon energy innovation can take many forms, from broad goals to specific programs and projects. While competition is important, collaboration allows countries to pool resources and avoid duplication, accelerating innovation. There are already many bilateral and multilateral agreements underway, but more is still needed to achieve climate goals. Effective collaboration requires fully aligning incentives for all participants and finding gaps where additional coordination or enabling actions can have impact.

Creating An International Climate Finance System

CGC CGC

The document discusses the need for an International Green Bank (IGB), also known as the Global Investment Trust for Clean Energy, to help mobilize $100 billion per year in climate finance and $500 billion in annual private investments for clean energy projects in developing countries. It argues that while multilateral development banks will play a role, they have limitations that require a new institution focused solely on providing low-cost, long-term financing to lower energy costs and attract more private investment globally for clean energy at scale. The IGB would work to complement existing sources and help overcome political and market barriers to mobilizing financing needed to address climate change.

SWS_Two superpowers_JHT.pptx

Sushilkumar Jogdankar

- China and the US are the two largest emitters of carbon dioxide in the world, together accounting for over 40% of global emissions. While China is currently the largest overall emitter, emissions per capita are still much lower than the US due to China's larger population. - Both countries have committed to reducing emissions in the coming decades to help keep global warming below 1.5 degrees Celsius as required by the Paris Agreement, but their current policies and targets are still seen as insufficient by climate analysts. - Decarbonizing the global economy is projected to require massive investment on the order of $150 trillion over the next 30 years, which will impact industries and sectors worldwide in addition to providing opportunities for green technologies and

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Business and Sustainable Development - The Green Race is On

Michael Soron

1) The document discusses the World Business Council for Sustainable Development (WBCSD), a coalition of 200 global companies focused on sustainable development. 2) It outlines key global challenges like population growth, urbanization, and income inequality and their implications for sustainable development. 3) It describes WBCSD initiatives and projects focused on issues like energy and climate change, water, buildings, and sustainable value chains to help drive transition to a sustainable society and economy.

Energy Efficiency: Meeting the Challenge & Fueling A Better Built Environment

Alliance To Save Energy

Climate Equity

equitywatch

11 years after the Kyoto Protocol was signed—only to be consigned to irrelevance over the subsequent decade—nations would negotiate post-2012 action. The realities of climate change are clearer than ever, and the cost of action is mounting. Rich countries, historically responsible for climate change, are proposing new mechanisms to share the burden. Leading developing countries such as India and China need to negotiate hard as well and make a big push for renewables Read more on (http://cseindia.org/equitywatch.htm) Centre for Science and Environment www.cseindia.org/ Down To Earth http://downtoearth.org.in/

Connecting global & regional finance to projects - Finance for #SDGs High Lev...

Business And The Sustainable Development Landscape

Glenn Klith Andersen

The document summarizes the key topics discussed at a WBCSD conference on business and sustainable development. It highlights that WBCSD represents over 200 major companies, discusses challenges like poverty, population growth and urbanization, and outlines the organization's focus areas like water, energy efficiency and sustainable value chains. It also examines issues like climate change, the need for new technologies and systemic solutions, and the important role of business in enabling a sustainable world by 2020.

Development and Utilization of Alternative Energy Sources

EOI Escuela de Organización Industrial

This document discusses alternative and sustainable energy sources, recent trends in renewable energy investment, and carbon markets. It outlines the development process for renewable energy carbon projects, including determining if a project is viable, additional, and the appropriate methodology. Project scale, financing options, and potential renewable energy projects in Kenya are also covered. The conclusion emphasizes identifying costs and stakeholder contributions early in development is crucial for project viability.

Opportunities and risks in carbon markets final

China global think tank summit presentation 2013

nooone

The International Partnership for Energy Efficiency Cooperation (IPEEC) facilitates global cooperation on energy efficiency to achieve climate change mitigation. IPEEC works to overcome barriers to energy efficiency financing in Asia such as high upfront costs, information gaps, and lack of experience. Additional investments in energy efficiency from 2015-2035 could save $17.5 trillion while creating jobs and reducing emissions. IPEEC helps address roadblocks to efficient financing through partnerships and knowledge sharing.

Carbon Finance Risks and Opportunities

This document summarizes the opportunities and risks for financial institutions in carbon finance and the potential for an East Africa Carbon Exchange. It outlines the basics of carbon finance, including the role of carbon credits and current carbon market value. It then discusses the types of financial institutions involved in carbon finance and potential roles. Key risks for carbon credit projects are lack of sufficient emissions reductions, lack of expertise, upfront investment exposure, and difficulty demonstrating additionality. It argues for an East Africa Carbon Exchange to help develop carbon trading in the region by addressing barriers like the complexity of CDM procedures. Recommendations include collaborating across East Africa to develop customized methodologies, harmonize policies, and build institutional relationships.

2009 07-breaking the-climate_deadlock-cn

wiriana

The document discusses technology solutions for reducing greenhouse gas emissions and achieving climate security goals. It finds that while the technologies needed to meet emissions reduction targets by 2020 are already proven, greater investment is required to develop technologies like carbon capture and storage that will be critical for deeper long-term cuts by 2050. International cooperation via mechanisms established at Copenhagen will be important to accelerate technology deployment, drive costs down, and support developing countries in adopting low-carbon solutions. Overall, the solutions are achievable but will require concerted global effort across technology development, demonstration, and diffusion.

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