energy r&d

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ENERGY R&D 1 0 10 20 30 40 50 60 70 80 Current R&D $(billions) private public ce: World Bank (2009) World Development Report 2010

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Energy R&D. Source: World Bank (2009) World Development Report 2010. Energy R&D. Source: World Bank (2009) World Development Report 2010. Energy R&D. Source: World Bank (2009) World Development Report 2010. - PowerPoint PPT Presentation

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Page 1: Energy R&D

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ENERGY R&D

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Current R&D

$ (billions)

private

public

Source: World Bank (2009) World Development Report 2010

Page 2: Energy R&D

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0

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Current R&D Required R&D

$ (billions)

range

ENERGY R&D

Source: World Bank (2009) World Development Report 2010

Page 3: Energy R&D

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0

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200

300

400

500

600

700

800

900

Current R&D Energy subsidies Required R&D

$ (billions)

range

ENERGY R&D

Source: World Bank (2009) World Development Report 2010

Page 4: Energy R&D

ACCELERATING DIFFUSION AND INNOVATION OF CLIMATE CHANGE SYSTEMS IN EASTERN EUROPE AND CENTRAL ASIA

Jean-Louis Racine, The World BankMay 7, 2010Knowledge Economy Forum IX - Berlin

Page 5: Energy R&D

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WHAT IS CLIMATE-SMART INNOVATION?Sector Mitigation Adaptation ExamplesTransport √ Electric vehicles

Industry √ Energy efficiency

Energy supply √ Renewable energy

Waste management

√ Recovering/reducing methane from waste

Building √ √ Storm-resistant buildings, energy efficiency

Agriculture √ √ Drought resistant crops

Forestry √ √ Processing and use of forest products

Human health √ Health monitoring and surveillance systems

Coastal adaptation

√ Geographical planning systems for coastal zones

Water √ Non-water based sanitation

Page 6: Energy R&D

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Water availability is expected to decrease everywhere but Russia

WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA?-> REASON 1: ADAPTATION RELIES ON LOCAL INNOVATION

Decrease in yields

Yield gap is already 4.5 times larger than yield

increase from climate change

Source: World Bank (2009) World Development Report 2010

ECA’s poor transport, power and housing infrastructure is expected to be under significant stress

Page 7: Energy R&D

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WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA? -> REASON 2: THERE ARE WIN-WIN OPPORTUNITIES

Energy technology can promote business competitiveness

Source: World Bank (2010) Lights Out? The Outlook for Energy in Eastern Europe and the Former Soviet Union

Page 8: Energy R&D

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WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA? -> REASON 2: THERE ARE WIN-WIN OPPORTUNITIES

Many climate change technologies are already financial viable

Source: World Bank (2009) World Development Report 2010

Page 9: Energy R&D

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WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA? -> REASON 3: DON’T BE THE LAST ONE IN THE GAME

Clean technology investments are experiencing phenomenal growth

Global cumulative wind capacity

Source: World Bank (2009) World Development Report 2010

Page 10: Energy R&D

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WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA? -> REASON 3: DON’T BE THE LAST ONE IN THE GAME

But where is ECA?

Source: World Bank (2009) World Development Report 2010

Location of investments of top 5 global wind equipment firms in 2009

Page 11: Energy R&D

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WHY BOTHER WITH CLIMATE-SMART INNOVATION IN ECA? -> REASON 3: DON’T BE THE LAST ONE IN THE GAME

ECA has the world’s highest carbon intensity

Total primary energy supply in kiloton oil equivalent per GDP

Source: World Bank (2010) Lights Out? The Outlook for Energy in Eastern Europe and the Former Soviet Union

Page 12: Energy R&D

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HOW CAN YOU STIMULATE CLIMATE-SMART INNOVATION IN ECA?

Command and control: Regulations and mandatory performance standards ...but careful, this is a double-edged sword

Page 13: Energy R&D

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HOW CAN YOU STIMULATE CLIMATE-SMART INNOVATION IN ECA?

Price signals Remove subsidies to high-carbon technologies Remove tariffs on climate-smart technologies Tax carbon Introduce feed-in tariffs for renewable energy

Page 14: Energy R&D

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Number of electric bicycles produced in China:

1998 = 40,000 2008 = 21,000,000

($11 billion industry)

Source: World Bank (2009) World Development Report 2010

HOW CAN YOU STIMULATE CLIMATE-SMART INNOVATION IN ECA?

Regulation and price signals in action in China

Page 15: Energy R&D

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HOW CAN YOU STIMULATE CLIMATE-SMART INNOVATION IN ECA?

But regulations and price signals alone can’t solve the market and system failures associated with innovation

Improve the business environment Facilitate climate-smart FDI and create conditions for local production

of climate-smart technologies Introduce climate-smart innovation policy

Public R&D on climate-smart innovation Research-industry linkages Climate-smart industry standards Climate-smart technology extension programs in industry and agriculture In countries with a critical mass of innovation such as Russia, Poland and

Turkey, introduce climate-smart innovation support promotion instruments in the private sector: matching grants, innovation prizes, etc.