Investing in a Sustainable Energy Future

Smita Nakhooda

14 December 2009

IISD Bali to Copenhagen Project : Trade, Investment & Climate Change

A Framework for Sustainable Energy

POLICIES AND REGULATIONS• Long-term integrated energy planning• Policies and regulations encouraging energy efficiency• Policies and regulations promoting renewable energy• Access to electricity for the poor• Pricing structures encouraging efficiency and reducing consumption.• Subsidy reforms to reveal true costs of fossil fuels and promote the viability of

sustainable energy options

INSTITUTIONAL CAPACITY AND GOVERNANCE• Executive agencies’ capacity for sustainable electricity• Regulatory agencies’ capacity to oversee implementation of sustainable

electricity policy• Utilities’ capacity to promote energy efficiency and renewables• Transparency of policy, planning, and regulatory processes for electricity• Stakeholders’ engagement in policy, planning, and regulatory processes

MDB Electricity Policy Loans

Number of loans

Elements of Sustainable Energy Addressed

0 1 - 2 3 - 4 5 - 6 7 - 8 9 - 10

Asian Development

Bank

29 14 5 7 3

Inter-American Development

Bank

19 1 2 6 8 2

World Bank 31 2 11 8 7 2 1

The Clean Technology Fund • Mexico: Renewable Energy (wind), energy efficiency, and urban transport• Turkey: Renewable energy (wind), energy efficiency• Egypt: Renewable Energy, BRT and LRT• South Africa: Concentrating solar thermal, wind energy, energy efficiency, and

solar water heating• Morocco: support the Fond de Development de l’Energie to invest in renewables,

efficiency, and public transport • Philippines : Rural cooperative investment in renewables and efficiency, meter

procurement to support solar energy and efficiency, BRT in Manila • Thailand: Renewables (solar, wind, microhydro, bioenergy) with state utilities and

private actors, buildings efficiency and BRT in Bangkok, • Vietnam: high voltage transmission, and renewable energy• Ukraine (not approved) : CCGT, upgrades to the gas transmission network,

renewable energy, energy efficiency, and smart grid • Concentrating solar thermal power regional program in 5 Middle East and North

African countries