Energy

Building upon the UNFCCC's global, top down analysis of the costs of climate change, UNDP commissioned a User Guidebook to support developing countries to undertake a bottom-up, national sectoral analyses of the costs of adapting to the impacts of climate change and mitigating GHG emissions. The User Guidebook, which was developed by UNDP with a group of international experts and regional centres of excellence, comprises:

The guide book offers a quick screen methodology to identify NAMA opportunities with potential for climate financing, and a deep screen methodology to analyze and determine the most appropriate development options to meet country-specific needs. And the process has been tailored to produce NAMA Concepts and Proposals that align with the requirements of the UNFCCC NAMA registry that will open this year. The guide walks policy makers through all the steps needed to successfully develop NAMAs and demonstrate preparedness to access available funding.  

The Methane Finance Study Group, upon the request of the G8, has published a report which considers pay-for-performance mechanisms for methane abatement. The analysis complements the Climate and Clean Air Coalition’s (CCAC) work on finance by focusing on an efficient method to deliver public finance to abate one SLCP (methane).

Library file: 

Methane_Finance_Study_Group_Report.pdf

This financial tool (Excel spreadsheet - click "more info" below to download) supports the framework presented in UNDP's Derisking Renewable Energy Investment report to assist policymakers in selecting public instruments to promote renewable energy investment. The financial tool calculates the levelised cost of electricity (LCOE) for a given country’s baseline energy mix and the LCOE of onshore wid energy, before and after the introduction of public instruments.

Derisking Renewable Energy Investment introduces an innovative framework to assist policymakers to quantitatively compare the impact of different public instruments to promote renewable energy. The report identifies the need to reduce the high financing costs for renewable energy in developing countries as an important task for policymakers acting today. The framework is structured in four stages: (i) risk environment, (ii) public instruments, (iii) levelised cost and (iv) evaluation.

In this paper BNEF presents an alternative negotiating process based on the concept of “emissions intensity” in which emission targets are related to economic activity, rather than the current paradigm of absolute emission reductions for developed countries and little obligation on developing countries. Expressed in this way, targets can be agreed for all countries, not just developed countries. They would also be more flexible and give governments more control over achieving the targets.

Library file: 

BNEF_how_to_solve_the_climate_negotiation_problem_its_all_relative.pdf

This case study is an annex to the report Mobilizing Climate Investment: The Role of International Climate Finance in Creating Readiness for Scaled-up Low-Carbon Energy and presents a more detailed description of the case study which is summarized in the report.

China has embarked on one of the largest endeavours in climate economics ever, to establish a national carbon emission trading system by 2015. As a first step, carbon-trading pilots have been initiated in seven provinces and cities. The success or failure of those experiments will to a large extent determine the future of climate policies in China.

The technical document #5, “Accessing Climate Finance for Sustainable Transport: A Practical Overview,” was developed by GIZ together with the Bridging the Gap Initiative. The paper represents a practical guide for developing country governments on how to access climate funds for sustainable land transport interventions. The guidance focuses on climate change mitigation and updates existing and proposed sources of climate finance in the context of the land transport sector.

The report highlights that governments need to strategically target their public finance to attract private capital into green investment through measures such as guarantees, insurance products and incentives, combined with the right policy support. It includes examples where governments and public financing agencies have successfully mobilized significant amounts of private investment for clean energy, water and agricultural investment. It concludes with a series of recommendations for investors and governments to scale up these successes to close the green investment gap.