Enabling Environments Enabling Environments for Clean Energy for Clean Energy

Technology TransferTechnology Transfer

Michael GerbisPresidentThe Delphi Group

Clean Energy & Environmental Consultancy since 1988

Active in North American, Latin American, Asian and European markets

Key business units:

Clean Energy

Climate Change

Corporate Environmental Strategies

Health & Environment

The Delphi Group

Enabling Environments - Private sector Perspective

CDM & JI

Canadian Programs

Lessons learned from Delphi’s CACBI initiativeEssentials for developing the market

Role of governments & private sector

Conclusions

Overview

To promote sustainable developmentDevelopment priorities

Local capacity building

To promote investmentCommercial viability and replication

Generate economic returns

Intersection of these enabling

environments is of prime interest

Enabling Environments

Mechanisms that can Facilitate the Development of Enabling Environments

Promote SD, increase foreign investment, catalyze technology transfer

Build capacity, enhance environment & social development

Provide new commercial opp., leverage financing, + revenue, offset risks, etc.

CDM & JI

To private sector, enabling an environment means making it attractive for investment

Minimal business risks (cost, viability)

Maximize returns on investment

High potential for sales and replication

Cost effective CERs/ERUs

What Makes a Market Attractive for CDM/JI?

Several Canadian Federal Government Initiatives that help set the Foundation

Participate in International Forums (EGTT)

Canadian Climate Change Development Fund (CCCDF)

Cdn Initiative for Int’l Tech Transfer (CIITT)

Technology Early Action Measures (TEAM)

CDM/JI Feasibility & Baselines

Canadian Action

Canada-Argentina Capacity Building Initiative

CACBI

$Cdn 1.5 funded by CIDA’s CCCDFEnabling environment for climate change TT

Stakeholder capacity building & engagementDemonstration TT projectReplication

www.delphi.ca/cacbi

Key mistakes often made

GovernmentCreating uncertainty or restrictive rules/policy

Not setting priorities (SD, types of projects…)

Trying to be the “gatekeeper” of project approval

Setting policy/rules and not following through

Private SectorDo not understand unique aspects of the market

Do not know SD or Tech priorities, CDM/JI process

No engagement of stakeholders

Establishing Enabling Environments for CDM/JI

Essentials to Develop the Market

Four essential principles for market development by Governments:

Clarity: Make the rules clear

Consistency: Don’t change the rules

Transparency: Enforcing the rules

Disseminate: Make the rules and tools available

Enabling a CDM Environment

National Development

Priorities

Sustainable Development

Criteria

Economic Integration of

CDM With Key Industry

Sectors

National Development Foundation

Capacity Building For

Stakeholders

Development of a CDM

Stakeholder System

National CDM Stakeholders

System

Baseline & CER

Estimation

CDM Project Review Process

Project Cert’n & Verification

CDM Project Review System

Int’lValidated

CERs

Market Availability of CERs

Developed by The Delphi Group, 2003Permission for Use Required

National Governments can Prime the Market

Assess the MarketBuild capacity of priority stakeholders

TechnicalNetworking & engagement opportunitiesMatch demand with supply

Create incentives/remove barriers for TTDeregulation, net metering, set RPSFull cost pricing, eliminate fossil fuel subsidiesHarmonized standards & interconnection guidelines

CACBI’s Accomplishments

Institutional Capacity building to:

Define SD & CDM National priorities

Catalyzing Measures

Develop CDM review system (small & large)

Engagement of stakeholders

Creating networking opportunities

Website and widespread communication (www.delphi.ca/cacbi)

Understand Local Environment (regulatory, economic, social, technical, etc.)

Capacity BuildingInstitutional, technical, etc.

Identify Market Opportunities

Technology Development & Adaptation

Financing

Diffusion, Transfer & Replication

Private Sector Role

CACBI’s Accomplishments

Demonstration project to illustrate the system

Illustration of system and benefits of CDM

Targeted Stakeholder Capacity Building

Pan-American University Network

Identification, shaping of solid CDM projects & sources of financing

Subsidize OE costs for first allotment of projects

Encourage & facilitate establishment of OEs in all regions

Help model countries create and use SD and project screens

Continue with Int’l Forums focusing on specific objectives & outcomes

International Authorities can Prime the Market

Developed & Developing Country Issue

Unleashing the Potential of PV in CanadaTypical Barriers

Need for an “Enabling Environment”

Path ForwardReduce Price Gap & Create a Flexible Market

Integrate Renewables into Future Energy Strategy

Awareness & Training

Foster Private-Public Partnerships

Conclusions

Building enabling environments is difficult and slow

Success comes by keeping it simple

For CDM/JI there is a need for an ‘Architectural Framework’

CACBI has enjoyed excellent response

Process outlined is transportable

This is both a Public & Private Sector Responsibility

Learning process for us all