Norsk klimainitiativ for fornybar energi i utviklingsland

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1 Norsk klimainitiativ for fornybar energi i utviklingsland Norwegian initiative for technology transfer Renewable energy and energy efficiency Forslag om et nytt, norsk initiativ for teknologioverføring foran FNs klimatoppmøte i København. Overlevert til miljø- og utviklingsminister Erik Solheim i Oslo,

2 Et norsk initiativ for teknologioverføring Fornybar energi og effektiv energibruk Innledning Klimaendringer er vår tids største utfordring. Håpet ligger i at vi har både løsninger og ressurser til å begrense klimaendringene gjennom globalt samarbeid og solidaritet. Tiden er knapp og det er nødvendig å framskynde overgangen til en lavkarbon utvikling. Norge kan gjennom landets intellektuelle, industrielle og finansielle ressurser bidra til å akselerere denne overgangen ved engasjement i den global utvikling, for eksempel ved overføring av klimateknologi. Klimateknologier er avgjørende for å møte klimautfordringen. Enighet om global teknologiutvikling og teknologioverføring vil stå helt sentralt for å få til en klimaavtale i København. Industrilands vilje til å finansiere teknologioverføring til utviklingsland og å institusjonalisere et rammeverk for dette, kan bli et nøkkelpunkt i forhandlingene. Norges, Nordens og øvrige industrilands innsats bør rettes mot en helt nødvendig oppskalering i utvikling, bruk og spredning av fornybar energi. Første skritt er å påvirke forhandlingen i København i positiv retning. Budskapet der bør være at vi må trappe kraftig opp bruken av de beste, tilgjengelige teknologier for å kunne nå ambisiøse globale klimamål og sikre velstandsvekst i sør. Samtidig må nye teknologiske løsninger utvikles og innføres. Norge kan ta en sterkere rolle for å få på plass utvikling av klimateknologi i samspill mellom myndigheter, industri, forskning og sivilt samfunn - og det må skje i både industriland og utviklingsland. Sterke insentiver må til for å utløse investeringer, men at det er tilsvarende store potensialer for positive økonomiske ringvirkninger. Vi har derfor utviklet et forslag til et nytt, norsk klimainitiativ. Hensikten er å bruke norske erfaringer og kompetanse innen fornybar energiproduksjon og effektiv energibruk til å styrke arbeidet med forhandlingene før og under FNs klimatoppmøte i København. Rasmus Hansson Roar Flåthen Bård Mikkelsen Kjell Roland Generalsekretær Leder Konsernsjef Adm. direktør WWF-Norge Landsorganisasjonen Statkraft Norfund

3 Et norsk initiativ for teknologioverføring Fornybar energi og effektiv energibruk Sammendrag De internasjonale klimaforhandlingene vil være avgjørende for om verden klarer å handle raskt nok til å unngå irreversible klimaendringer med dramatisk konsekvenser for mennesker og natur. Forhandlingene er nå inne i en kritisk siste fase hvor klare forpliktelser fra de industrialiserte landene vill være avgjørende for et godt resultat. For å bidra til en positiv framdrift i forhandlingene har Statkraft, Landsorganisasjonen i Norge (LO), Norfund og WWF laget et forslag til et norsk innspill til forhandlingene for teknologioverføring til utviklingslandene. Forslaget innbærer at Norge bidrar til å utvikle et formelt rammeverk som gjør det mulig for utviklingslandene å ta i bruk bærekraftig klimavennlig teknologi uten å gå veien om forurensende teknologier som skader både lokalt og globalt miljø. Norge gjør allerede en betydelig innsats på dette området slik at et nytt Norsk initiativ rettet mot klimaforhandlingene vil kunne operasjonaliseres raskt ved å bygge videre på dette. Rammeverket som utvikles vil bidra til kompetansebygging, teknologisamarbeid og tilrettelegging for private investeringer, uavhengig av om det er teknologi for for eksempel sementproduksjon, effektiv transport eller energiproduksjon. Forslaget innbærer videre at Norge bidrar til å finansiere tilrettelegging for akselerert teknologioverføring innen områdene fornybar energiproduksjon og effektiv energibruk, med sikte på å utløse private investeringer i stor skala. Siden energibruk utgjør omtrent to tredjedeler av det globale utslippet, vil tiltaket rettes mot den desidert største kilden til utslipp av klimagasser. Potensialet for å redusere utslippene fra energisektoren er stort og mange teknologier er tilgjengelig. Årlige ekstrakostnader knyttet å ta i bruk klimavennlige teknologiløsninger i utviklingslandene er i et nylig utgitt EU dokument beregnet til 33 milliarder i Anslag på hvor stor andel av dette som må dekkes av offentlige midler varierer, men erfaringsdata presentert av en ekspertgruppe på teknologioverføring tyder på at 35% er en typisk andel i utviklingsland 2. På denne basis anslås et minimums behov i 2020 på omkring 11 milliarder, tilsvarende 90 milliarder kroner per år i Dette er en kostnad de industrialiserte landene må være forberedt på å dekke som en del av en ambisiøs klimaavtale. Som en konkret bekreftelse på vilje til å til å ta sin del av ansvaret bør Norge, som en del av sitt bistandsarbeid, love støtte til finansiering av teknologioverføring. Dette bør baseres på estimater i tråd med prinsipper om rettferdig byrdefordeling. Et rimelig anslag for dette kan være 2% av totalbehovet, tilsvarende omtent 2 milliarder kroner per år i Norge kan vise handlingsvilje gjennom å forplikte seg til å dekke 1%, 1 milliard kroner årlig, allerede fra 2010, med et signal om å øke dette til 2%, avhengig av forhandlingsresultat. En slik forpliktelse vil ytterligere styrke den betydelige innsatsen Norge allerede gjør på dette området. 1 EU Blueprint for financing climate action. Summary p. 7, COM(2009) 2 Recommendations on future financing options for enhancing the development, deployment, diffusion and transfer of technologies under the Convention. p.55, FCCC/SB/2009/2

4 En slik finansieringsforpliktelse foregriper en forpliktelse de industrialiserte landene må være forberedt på å ta som en del av et ambisiøst forhandlingsresultat. Norge synliggjør dermed vilje til å påta seg nødvendig finansieringsforpliktelser overfor utviklingslandene. Dette er forpliktelser som vil komme i tilegg til spesifikke utslippsreduksjoner, der Norge allerede har satt et ambisiøst mål om å redusere utslippene med 40% i forhold til 1990 innen Den samlede norske innsatsen vil med dette initiativet fremstå med styrket troverdighet og bidra til å motivere andre forhandlingspartnere til også å påta seg konkrete forpliktelser for en sterk og rettferdig klimaavtale. Konkret innbærer forslaget fra Statkraft, LO, Norfund og WWF at det etableres to pilotprogrammer med fokus på henholdsvis fornybar energiproduksjon og effektiv energibruk i utviklingsland. Gjennom disse programmene skal det etableres samarbeidsplattformer for å styrke relevant nasjonal kompetanse, kapasitet og institusjoner, og herunder legges til rette for økte private investeringer gjennom innovative privat-offentlige samarbeidsprosjekter. Erfaringene fra pilotprogrammene brukes til å videreutvikle et rammeverk for teknologioverføring med sikte på å etablere en rekke målrettede programmer med økende grad av spesialisering innen spesifikke teknologiområder. Gjennom fokusert, sektororientert og oppskalerbar tilrettelegging for at bærekraftige fornybar energiteknologier skal kunne tas raskt i bruk, bidrar initiativet i betydelig grad til å møte utviklingsmål knyttet til bedre tilgang til ren energi, i tråd med prioriterte norske utviklingspolitiske mål.

5 Norwegian initiative for technology transfer Renewable energy and energy efficiency Summary The Norwegian initiative, as proposed by Statkraft, The Norwegian Confederation of Trade Unions (LO-Norway), Norfund and WWF will provide positive momentum to the international climate negotiations under the UNFCCC, through upfront commitment of support for developing countries efforts towards a sustainable low carbon energy future. Specifically it is suggested that the initiative will: Support increased technology cooperation, and facilitate and invest in accelerated dissemination of technologies for renewable energy production and efficient energy use in developing countries. To support developing countries efforts towards a sustainable low carbon energy future, while providing positive momentum to the international climate negotiations under the UNFCCC, Norway could commit to invest in a technology action initiative already from The initiative will: Initiate and support two pilot technology action programs with a focus on facilitating fast and scaled up dissemination and implementation of sustainable renewable energy production and efficient energy use in developing countries 3. Feed the learning from the pilots into a wider effort to help building the UNFCCC technology transfer program. The initiative is expected to achieve Positive dynamic during a critical phase of the negotiation Emission reductions in the largest emission sector globally Improved competence and capacity for large scale implementation of sustainable technology solutions in selected developing countries. Increased access to energy services in developing countries, thereby meeting national and global development targets. Technological leapfrogging in developing countries enabling the development of a sustainable low carbon energy sector Increased production capacity and lower cost of renewable and energy efficiency technology for the global market Higher degree of research and innovation in the renewable and energy efficiency technology sector 3 Two additional technology action programs on CCS and energy infrastructure should be initiated as soon as basic institutions are developed and stakeholder trust in these arrangements has been established.

6 Norwegian initiative for technology transfer Renewable energy and energy efficiency Background and motivation Many developing countries are experiencing shortage of energy supply as a key challenge to their continued economic growth and in meeting millennium development goals. At the same time, the world is on a path to dangerous anthropogenic climate changes which can only be mitigated through a dramatic reduction in the emission of GHG 4. The present scientific modeling indicates that global emission of GHGs have to peak and decline by and then be reduced to below 80% of 1990 level by 2050 in order to stay below two degree global warming. Such a steep reduction in global GHG emission can only be achieved through a combination of a dramatic decrease in absolute emission levels in the developed countries while at the same time ensuring a low carbon development path with substantially below BAU emissions in developing countries. Avoiding dangerous anthropogenic climate change will require a coordinated global effort far beyond anything experienced in human history. It is the mandate of the ongoing UNFCCC negations on a new global climate treaty to ensure the framework to achieve this. An equitable and robust outcome of the negotiations will depend on the coordinated, interlinked and sufficiently ambitious commitments in the various pillars of a post-2012 climate policy laid out in the Bali Action Plan (BAP). In light of the central importance of Technology in the BAP, the provisions for this issue in the evolving climate agreement will have a major bearing on the success of negotiations. There is agreement that technology transfer will be fundamental to enabling an effective Implementation of the United Nations Framework Convention on Climate Change beyond In order to achieve the transition to a worldwide low-carbon development trajectory and to build up climate resilience, a global transformation in technology and technology cooperation is needed that will accelerate the pace of innovation, increase the scale of demonstration and deployment, and ensure diffusion of and affordable access to climate friendly technologies in all countries. The biggest challenge will be to ensure there is funding to back this energy transformation, with substantial support for developing countries, IEA Executive Director Nobuo Tanaka commenting on the special early excerpt of the World Energy Outlook (WEO) 2009 as input to the climate negotiations. 6 4 Refer e.g. Promoting Development, Saving the Planet. World Economic and Social Survey 2009 (WESS 2009), Overview chapter. 5 Promoting Development, Saving the Planet. World Economic and Social Survey 2009 (WESS 2009), p.129, with reference to UNFCCC. 6 IEA presented a special early excerpt of the World Energy Outlook (WEO) 2009 as a timely contribution towards a landmark agreement in Copenhagen during the Bangkok session of the climate talks leading up to

7 Norwegian initiative for technology transfer Renewable energy and energy efficiency The initiative While recognizing that a robust and comprehensive approach is needed to correct market failures and provide support along a broad range of technologies, both for mitigation and adaptation, it is suggest that Norway initiates and support two complementary pilot technology action programs 7 with a focus on facilitating fast and scaled up dissemination and implementation of sustainable renewable energy production and efficient energy use in developing countries. Reducing greenhouse gas emissions will require large and interconnected investments across several sectors, with the aim, inter alia, of halting deforestation and land degradation, retrofitting buildings to make them more energy-efficient and redesigning transportation systems. But it is an energy transition that will be at the core of an alternative integrated strategy for meeting climate change and development goals. 8 The specific focus on renewable energy production and efficient energy use in developing countries is motivated by the following: Energy is the core of the climate challenge, accounting for about 65% of the world s greenhouse-gas emissions 9 The power sector is responsible for roughly a quarter of total global emissions 10, making it the biggest global emitter of GHG. The abatement potential for the industry is high 11, An estimated 60% of total investments in mitigation technologies are needed in developing countries (power and industry) 12. COP15 in Copenhagen. The report was released under the heading: From financial crisis to 450 ppm: the IEA maps out the energy sector transformation and its financial consequences under a global climate agreement. 7 WWF and others has suggested that the technology framework of the UNFCC is organized as a set of technology action programs guided by a set of global technology objectives. Refer A Copenhagen Climate Treaty, by members of the NGO community for details. The pilot action programs suggested here will have a more narrow focus and a particular emphasis on technology transfer for developing countries. 8 Wess 2009, Overview xi. WWF emphasis. 9 IEA How the energy sector can deliver on a climate agreement in Copenhagen, Special early excerpt of the World Energy Outlook 2009 for the Bangkok UNFCCC meeting ,9% of 49 GtCO2eq. IPCC AR4, Technical Summary, Fig. TS. 2b, See e.g.: Pathways to a Low-Carbon Economy, version 2 of the Global Greenhouse Gas Abetment Cost Curve. McKinsey&Company, The study assumes that the industry will be responsible for 18.7 Gt CO2eq in 2030 under a BAU scenario, with a potential for more than 50% reduction in emission. E.g. Exhibit 4, p.13

8 Investing in economies with faster economic growth is likely to be a cost efficient priority as investing in new large-scale infrastructure provides more low-cost abatement opportunities than replacing/retrofitting existing infrastructure 13. Increasing energy production may contribute to meeting national development targets and millennium development goals 14. There is a recognized need for capacity building and pilot actions 15 The need to increase focus on clean and enhanced energy production is recognized as a priority for Norwegian development assistance 16. The relevant national science and industry competence, national industry capacity and historical experience, offers a unique basis for national enthusiasm and engagement, with a continued focus on social dialog and civil society engagement. While recognizing that there is a limit to the Norwegian influence on the global dynamics of technology development 17, experience with the Norwegian initiative to Reduce Emissions from Deforestation and forest Degradation (REDD) shows that moderate efforts (in the big picture) can have substantial positive influence on key topics. Copying the success of the Norwegian Climate and Forest Initiative (CFI) in driving the international agenda on REDD, It is suggested that Norway engage with similar enthusiasm and commitment in the important niche of the technology agenda related to technology transfer to developing countries. Building on the experience from the CFI in addressing tropical deforestation, while recognizing where Norway have the more relevant historical experience, science and industry competence and national industry capacity, Norway should: Support increased technology cooperation, and facilitate and invest in accelerated dissemination of technologies for renewable energy production and efficient energy use in developing countries. To this end, Norway should initiate and support two pilot technology action programs with a focus on facilitating fast and scaled up dissemination and implementation of near commercial sustainable renewable energy production and efficient energy use in developing countries. The mandate of each action program should include the following objectives 18 : 12 Ibid, p Ibid, p Refer e.g. Promoting Development, Saving the Planet. World Economic and Social Survey 2009 (WESS 2009), Overview chapter. 15 EU Blueprint for financing climate action. Summary p. 7, COM(2009) 475/3. 16 Utviklingsmeldinga og Handlingsplan for Ren Energi 17 Financing requirements for mitigation technologies is estimated at USD billion a year (EGTT report on future financing options for enhancing the development, deployment, diffusion and transfer of technologies under the convention. (FCCC/SB/2009/2)) 18 For the technology action programs to be efficient, they should probably have a much more narrow focus than what is indicated with the two broad categories of energy efficiency and renewable energy. It is recommended that that action programs differentiates and focuses as the move from pilot to full scale implementation. When basic institutional arrangements have been developed, Norway should also initiate a full scale action program on CCS.

9 Strengthen developing countries institutions and capacity for accelerated deployment of technologies for renewable energy production/energy efficiency Support an open multinational technology forum for further research and development, and regional adaptation of near commercial technologies (refer paragraph on institutional arrangements below). Research themes should include identification of barriers to dissemination of the technology, including barriers to private investments. South-south cooperation should be encouraged and supported. Support developing countries long term holistic planning and capacity building in the energy sector, with a technology focus as identified in technology need assessments (TNA), and with priorities aligned with the listing of nationally appropriate mitigation actions (NAMAs) under the UNFCCC. Based on the identified barriers to investment and advice from the technology forum, support the development of an attractive ground for private investment under competent national control of the sector development. Stimulate large scale private investment in social and environmentally sustainable renewable energy production/energy efficiency Facilitating the cooperation between willing parties in developing countries and willing private investors in developed countries in order to overcome barriers to the dissemination of renewable energy/energy efficiency. Provide financial guarantees for countries/private sector willing to support an accelerated deployment scheme. Support civil society engagement to ensure that accelerated development schemes in the technology sector is based on public participation and ownership through social dialogue. Feed research, experience and ideas into to the process of building a UNFCCC technology transfer program. As appropriate, also strengthen/take a lead in this process in support of the UNFCCC. Build on the experience from the many finance institutions and executing agencies, such as World Bank, GEF, IEA, IRENA, UNDP, UNEP and others already devoted to similar objectives. Provide a platform for coordination of these ongoing activities to so as to support the development of a UNFCCC program for technology transfer.

10 Norwegian initiative for technology transfer Renewable energy and energy efficiency Financial requirements According to the recent EU Blueprint for financing climate action, the annual financing requirements for mitigation in the Energy and Industry sectors are estimated at 33 billion annually in While estimates on the required share of public funds varies, empirical data summarized by the Expert Group on Technology Transfer (EGTT ) indicate that 35% is the typical public share of investments in climate technology in developing countries 20. It should be part of the research agenda under the proposed action programs to update these estimates. As recognition of responsibility to support low carbon development in developing countries, Norway could commit financial support for technology transfer. While it is difficult to find objective arguments for what exact share of the total cost Norway should cover, principles of equity and burden sharing might indicate that Norway contributes to 2% of annual needs, equivalent to roughly 2 billion Norwegian kroner per year in Motivated by the world s urgent need to invest in mitigation technologies to ensure that GHG emissions peak and decline on time, and the cost efficiency of early action, Norway could provide substantial momentum to these efforts by immediately commit to a 1% share, equivalent to 1 billion kroner per year, for the next 10 years with the ambition to scale up to a 2% share pending negotiation outcome. While this early investment is based on a voluntary commitment, it should be recognized as only preceding the financial commitments of Annex 1 countries in an ambitious Copenhagen deal. 19 EU Blueprint for financing climate action. Summary p. 7, COM(2009) 475/ Recommendations on future financing options for enhancing the development, deployment, diffusion and transfer of technologies under the Convention p.55, FCCC/SB/2009/2

11 Norwegian initiative for technology transfer Renewable energy and energy efficiency Institutional arrangements Several options have been presented as to what a Copenhagen treaty can look like and how it can be institutionalized. The purpose of this initiative is not to lay out or presuppose the overarching architecture for the various elements in a new treaty. The suggested action programs should be designed to be flexible and adaptive with respect to overall intuitional framework. For perspective and overview, the following paragraphs takes one suggested framework as a pedagogic starting point for describing a functional technology mechanism. In the selected proposal 21, it is suggested that a new Copenhagen Climate Protocol will be implemented through a climate facility with four boards and an Executive Committee as its core operating entities. The idea of the four boards; adaptation, mitigation, REDD and Technology, is to address the primary operational needs of the Facility. Depending on the chosen structure and mandate, they could oversee and monitor the technical operations of the facility. Furthermore there is a need to establish and ensure compliance with standards, operate and manage financial streams and establish and manage links to the a registry of developing countries suggested mitigation actions (NAMAs). Dependent on the exact institutional framework, technical panels, consisting of experts from governments, NGOs/CSOs, industry and academia, as well as indigenous and local communities, could be established to provide expertise, assessment and planning capacity to the boards. The Technical panels should build on existing expert groups, such as the Expert Group on Technology Transfer ( EGTT ). The Technology Board or a similar entity mandated by the COP, would be responsible for developing a set of Technology Action Programs for key adaptation and mitigation technologies, informed by existing international and national roadmaps. For the implementation of the above described Norwegian initiative, it is suggest that the EGTT is asked to act as an interim technology board and is support with a secretariat that would coordinate the two pilot technology action programs on sustainable renewable energy production and efficient energy use. The interim board, supported by the new secretariat will 1) Initiate the pilot action programs according to the three mandated objectives described above. 2) Engaging implementing, financing and executing agencies as appropriate. This could include the World Bank, GEF, IEA, IRENA, UNDP, UNEP and others. 3) Establishing a technology forum for further research and development, and regional adaptation of near commercial technologies. 4) Organize the learning process related to the establishment of the technology forum and the implementation of the pilots, and continuously feed this into a wider effort to help building the UNFCCC technology transfer program. 21 Refer A Copenhagen Climate Treaty, by members of the NGO community for details, particularly p and

12 Norsk initiativ for teknologioverføring Norge må ta ledelsen for å sikre best mulig klimateknologi i utviklingslandene. Derfor har WWF, LO, Statkraft og Norfund gått sammen om å foreslå et nytt, norsk initiativ for teknologioverføring foran FNs klimatoppmøte i København. I dette heftet finner du innledning og sammendrag på norsk. Selve forslaget presenteres på engelsk. Norwegian initiative for technology transfer The Norwegian initiative, as proposed by Statkraft, The Norwegian Confederation of Trade Unions (LO-Norway), Norfund and WWF will provide positive momentum to the international climate negotiations under the UNFCCC, through upfront commitment of support for developing countries efforts towards a sustainable low carbon energy future. Inside you will find introduction and summary in Norwegian. The suggestion itself is introduced in English. WWF er verdens største natur- og miljøorganisasjon med over fem millioner støttespillere globalt, og virksomhet i mer enn 40 land. Tidligere i år sto organisasjonen bak den globale kampanjen Earth Hour, da flere hundre millioner mennesker slukket lyset en time for klimaet. I København vil WWF være tilstede med nærmere 100 delegater, som deltar aktivt for å påvirke resultatet av forhandlingene innen for de ulike fagfeltene, som eksempelvis teknologioverføring og skog og klima Landsorganisasjonen i Norge (LO) er Norges største hovedorganisasjon med over medlemmer fordelt på 21 forbund. LO organiserer arbeidstakere i alle sektorer, bransjer og yrker. 50 prosent av LOs medlemmer er kvinner. Gjennom internasjonal fagbevegelse er LO en pådriver i kampen mot klimautfordringene. LO vil være representert i den offisielle norske delegasjonen i København, og flere LO-forbund vil være til stede med representanter. Statkraft er størst i Europa innen fornybar energi. Konsernet produserer og utvikler vannkraft, vindkraft, gasskraft og fjernvarme og er en betydelig aktør på de europeiske energibørsene. Statkraft utvikler også marin energi, saltkraft, solkraft, og andre nye energiløsninger. Gjennom eierskap i andre selskaper leveres strøm og varme til om lag kunder i Norge. Konsernet hadde i 2008 en omsetning på 25 milliarder kroner. Statkraft har 3200 medarbeidere i mer enn 20 land. Norfund Statens Investeringsfond for næringsvirksomhet i utviklingsland ble opprettet av Stortinget i Fondets oppgave er å bidra med kapital, lån og garantier til utvikling av lønnsom og bærekraftig næringsvirksomhet i utviklingsland som har begrenset tilgang til kommersiell finansiering på grunn av høy risiko. Norfund er et særlovsselskap eid av staten ved Utenriksdepartementet.