emerging consensus from task force 2 trillions of dollars of private investment needed to reach...
TRANSCRIPT
EMERGING CONSENSUS FROM TASK FORCE 2
• Trillions of dollars of private investment needed to reach scale on efficiency and renewables
• Public funds will never be sufficient, but smart policy can unlock private investment at scale
• It is deeply challenging to develop and implement smart policy in the energy sector
• Strategic funding for collaborative technical work, peer-to-peer learning and technical assistance to policy makers could have transformative long-term impact o Policy funds offer extraordinary leverage (e.g. US
appliance standards program)oWell-coordinated millions can unleash billions
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WHAT CAN SE4ALL DO?
• Bolster efforts of existing fora (e.g. CEM and regional efforts like APEC, B20/G20) to encourage policy progress through collaborative technical work, peer-to-peer exchange, and political dialog
• Catalyze commitments to leverage public and private investment
• Communicate the central role of smart policy to drive private investment in efficiency and renewables
• Engage the private sector, including the investment community, on efficiency and renewables policy design
• On request, help lower-capacity governments improve their clean energy and efficiency policies through targeted technical assistance
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POSSIBLE IDEAS FOR TF2 ACTION WITHIN SE4ALL
• Encourage self-assessment by MDBs and/or bilateral aid agencies of policy TA efficacy
• Compile policy status information (e.g. bolster Clean Energy Solutions Center effort to establish continuously updated database of national and state level clean energy policy for US, India, etc) o Helps policy makers benchmark their effortso Helps private sector find investment opportunitieso Helps civil society advocate for better policy
• Launch “Doing Business in Clean Energy” report to monitor and recognize clean energy policy progress
• On request, partner with proactive governments to help them reach their policy objectives, e.g. o Minimum standards for lighting or other applianceso Fuel economy standardso Net metering or other policies to enable distributed renewableso Regulatory reforms to enable grid-connected renewables
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NEXT STEPS
• Draft report by Abu Dhabi meeting
• Assign sub-tasks to develop specific ideas
• Link to WG1 to address efficiency and renewables role in energy access
• Possible interim working group meeting once additional preparatory work completed
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National Polices
5
Grid Based Business Models
UnconventionalBusiness Models
Global CapitalMarkets
National Banks andFinancial Institutions
Intermediaries,Users & consumers
Host Countries Donors Private
Sector Civil Society
Tech. SupportProfessional
Exchange
Investment, Technology, Good &
Services
Finance, Guarantees,
Insurance
Best Practice: Implementation
Best Practice Regulation
Standards Regulation
Regulation
Professional Exchange
Technical Support,
Feasibility Studies, Training
Capital
Standards Training Services Training
Environmental Impact
Monitoring
Transparency
Accountability
Non-Bank Services, Capital
Services, Distribution,
Quality
NEED TO MODIFY TASK FORCE 1 SLIDES
Appendix
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10 100 1000$100.00
$1,000.00
$10,000.00
U.S. Cumulative Refrigerator Shipments (millions)
Re
frig
era
tor
LC
C in
Re
al D
olla
rs (
20
09
$)
Pre-Standards1947-1978
Historical Standards1978-2010
• Net savings of ~$300 billion cumulative since 1978
• Typical annual budget for entire US minimum standards program ~$30 million
Source: Data from US Bureau of Labor Statistics, US DOE, AHAM Factbooks and Rosenfeld (1999)
MINIMUM PERFORMANCE STANDARDS CAN LEAD TO A SIGNIFICANT DECLINE IN LIFECYCLE COSTS
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Base
Case
Rules
Effec
tive
1/10
...
Rules
Issu
ed 1
/10-
...
Rules
in d
evelop
men
t
Best P
ract
ices
With
EE
10,000
11,000
12,000
13,000
14,0002030 E
lect
rici
ty C
onsum
pti
on in
SEA
D C
ountr
ies
(TW
h)
ONLY A FRACTION OF THE POTENTIAL FROM MINIMUM PERFORMANCE STANDARDS IS CAPTURED CURRENTLY
Cooperation among SEAD partners’ national standard-setting bodies could save by 2030:• 1,800 terawatt hours per year of electricity = as much as would be
produced by 600 five-hundred megawatt power plants• US$150 billion per year of net energy-related expenditures Leads to
significant energy savings for households (e.g., Existing standards in the U.S. save an average of $285 per household per year )
SUPER-EFFICIENT EQUIPMENT AND APPLIANCE DEPLOYMENT INITIATIVE (SEAD)
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SEAD aims to coordinate policy for efficient appliances and equipment
• Regular and ongoing contact between partner governments’ standard-setting experts enables greater coverage of product categories at lower public cost
• Harmonizing test procedures reduces trade barriers for efficient products and facilitates comparisons of efficiency programs
• For globally-traded products, coordination of measures such as incentives, procurement, and awards magnifies market transformation benefits
CLEAN ENERGY SOLUTIONS CENTER
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• Track and share policies, public investment trends, and outcomes
• Identify best practices for clean energy policy and program development
• Engage stakeholders in dialogue about policy and public investment opportunities
• Provide virtual training, including videos and webinars
• Build a user network of policy makers and technical experts