Transcript Module 4 Barriers to Mitigation a. Concepts b. Sectoral Barriers c. Overcoming Barriers 4.1 Module 4a Concepts 4.2

Module 4
Barriers to Mitigation
a. Concepts
b. Sectoral Barriers
c. Overcoming Barriers
4.1
Module 4a
Concepts
4.2
Introduction
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Numerous technologies and
policies exist to reduce GHG
emissions.
Significant technical progress
has been made in the last 5
years in areas such as wind
turbines, hybrid engine cars,
underground CO2 storage, etc.
But significant barriers exist.
Barriers add to the cost of
implementation, and reduce the
realizable potential
Barriers can be technical,
economic, political, cultural,
social, behavioral and
institutional.
Potential Global GHG Emission Reductions
Sector
Potential emission Potential emission
reductions in 2010 reductions in 2020
(MtCeq/yr)
(MtCeq/yr)
Buildings
700 – 750
1000 - 1100
Transport
100 – 300
300 - 700
300-500
700-900
-material efficiency:
~200
~600
-non-CO2 gases:
~100
~100
150 –300
350 - 750
Waste
~200
~200
Montreal Protocol replacement apps
~100
n.a.
50-150
350-700
1900-2600
3600-5050
Industry
-energy efficiency:
Agriculture
Energy supply and conversion
Total
Adapted from IPCC TAR– Mitigation. Table SPM,1
4.3
Mitigation
Potential
Opportunities for Mitigation
Differ by Region
• In industrialized countries, opportunities lie primarily in
removing social and behavioral barriers;
• In countries with economies in transition,
opportunities lie primarily in price rationalization;
• In developing countries, opportunities lie primarily in
price rationalization, increased access to data and
information, availability of advanced technologies,
financial resources, and training and capacity building.
• NB: These three categories of countries are not
homogenous.
• Opportunities for any given country might be found in the
removal of any combination of barriers.
4.5
The Concept of Barriers
“The transfer of technologies and practices that have the potential
to reduce greenhouse gas (GHG) emissions is often hampered by
barriers that slow their penetration”
[IPCC, 2001 Mitigation: Working Group III to the Third Assessment Report]
• A barrier is any obstacle to reaching a potential that can be overcome by a
policy, programme, or measure.
• An opportunity is a situation or circumstance to decrease the gap between
the market potential of a technology or practice and the economic,
socioeconomic, or technological potential.
• Barriers and opportunities tend to be context-specific, and can change over
time and vary across countries. Policies, programmes, and measures may be
used to help overcome barriers.
4.6
Sources of Barriers and
Opportunities
Barriers
categories
or areas…
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prices
financing
trade and environment
market structure
institutional frameworks
Information provision
social, cultural and behavioral norms and aspirations
Within each of these areas, barriers and opportunities represent:
– failures or imperfections in markets, policies, or other institutions that lie
between the market potential and the possible achievement of the
economic potential
– Other barriers are aspects of institutions or social and cultural systems that
separate the economic and socioeconomic potentials.
4.7
Module 4b
Sectoral Barriers
4.8
Sectors Considered
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Buildings
Transport
Industry
Energy Supply
Forestry
Solid Waste
Agriculture
4.9
Key Barriers in the
Buildings Sector
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Traditional customs
Lack of skills
Behavior and style
Social barriers
Misplaced incentives
Lack of financing
Market structure
Administratively set prices
Economic pricing
Imperfect information
4.10
Key Barriers in the
Transport Sector
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Infrastructure
Lifestyles
Economic Development
Patterns of industrial production
Consumer behavior
Status value
Lock-in technology
Subsidies
Distorted perceptions
4.11
Key Barriers in the
Industry Sector
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Lack of information
Limited Capital Availability
Lack of skilled personnel
Decision making process
Energy prices and subsidies
4.12
Key Barriers in the
Energy Supply Sector
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Energy Prices
Inconsistency in evaluation of energy costs
Lack of adequate financial support
Institutional transformation and reforms
Legal and regulatory frameworks
Lack of information
Decision making process and behavior
Social and cultural constraints
Capital availability
Lack of internalization of environmental externalities
4.13
Key Barriers in the
Forestry Sector
• Lack of technical capability
• Lack of capacity for monitoring carbon
stocks
• Poor practices such as slash and burn
agriculture and mismanagement of forest
resources
4.14
Key Barriers in the
Solid Waste Sector
• Lack of enabling policies initiatives,
institutional mechanism, information and
opportunities
• Organizational problems in collection and
transport
• Lack of coordination among different
groups
4.15
Key Barriers in the
Agriculture Sector
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Farm-level adoption constraints
Government subsidies
Lack of capacity and skills
Lack of information
Property rights
4.16
Module 4c
Overcoming Barriers
4.17
Overcoming Barriers
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Overcoming barriers requires a wide variety of policies, measures and
instruments.
Removal of barriers during capital stock turnover and periods of rapid social
change can minimize disruption and mitigation costs.
National responses to climate change can be more effective if deployed as
a portfolio of policy instruments to limit or reduce greenhouse gas
emissions.
Effectiveness can be enhanced when climate policies are integrated with
the non-climate objectives of national and sectoral policy development (e.g.,
sustainable development).
Coordinated actions among countries and sectors may help to reduce
mitigation cost, address competitiveness concerns, potential conflicts with
international trade rules, and carbon leakage.
Nevertheless, earlier actions, including a portfolio of emissions mitigation,
technology development and reduction of scientific uncertainty, increase
flexibility in moving towards stabilization of atmospheric concentrations of
greenhouse gases.
4.18
Overcoming Barriers:
Sectoral Level
• Market based instruments (taxes, tradable
permits, subsidies, deposit/refund systems)
• Standards, product bans, energy mix
requirements
• Voluntary agreements
• Information, and labeling programs
• Government investment/ R&D spending
• Sectoral options only as effective as allowed by
macro conditions
4.19
Overcoming Barriers:
International and Macro Levels
• Macro policies: Some examples:
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Reform of the legal system
Creation of open and competitive markets
Enhancing physical and communications infrastructure
Improve land tenure
Improve macro-economic stability
• International co-ordination can address competitiveness,
international trade rules, and “leakage”
• Setting appropriate macro-conditions can contribute
more to mitigation than improving sectoral policies,
measures, and instruments.
• IPCC shows a major gap in research: few studies
identify barriers and ways to overcome them, or estimate
the cost of their removal.
4.20
Overcoming Barriers: Special
Challenges for Developing Countries
• Appropriate financing
• Market Segmentation: small firms face
information and market-structure barriers.
• Developing strong communication
channels
4.21
Opportunities For
Overcoming Barriers
• Seeking synergies between competitiveness and GHG mitigation
(e.g., when GHG mitigation could reduce costs)
• Communication among firms, between firms and users, or
universities or government labs.
• Good communication strategies (marketing) may encourage
consumer acceptance of new technologies.
• Economic, regulatory, and social incentives for reducing GHG
emissions will also act as incentives for innovation to find new
means of mitigation.
• Introduce low-emission technology, when previously locked-in
technology begins to change.
• Changes in the market and legislative context can also provide
opportunities for innovation.
4.22
Examples of Barriers and Opportunities
Source of barrier
and/or opportunity
Examples of market and/or institutional
imperfections (and opportunities)a
Prices
Missing markets (market creation)
Distorted prices (rationalization of prices,
environmental regulations and taxes)
Financing
Financial market imperfections (sector reform or
restructuring of economy)
Constraints of official development assistance (ODA)
(removing tied aid and/or better targeting of ODA)
Trade and environment
Tariffs on imported equipment and restrictive
regulations (rationalization of customs tariffs)
Institutional
frameworks
Transactions costs
Inadequate property rights (improve land tenure)
Misplaced incentives
Distorted incentives
Information provision
Public goods nature of information (increase
public associations)
Adoption externality (build demonstration projects)
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Long time and high transaction costs for small projects
(pooling of projects)
Circumstances requiring rapid payback (fuel subsides)
Weaknesses of suppliers in market research
(form associations to support market research)
Market structure and
functioning
Social, cultural, and
behavioural norms and
aspirations
Examples of social & cultural barriers
(and opportunities)
Institutional structure and design (restructuring of firms)
National policy styles (shifting balance of authority)
Lack of effective regulatory agencies (informal regulation)
Inadequate consideration of human motivations and goals
in climate mitigation (modify social behaviour)
Individual habits (targeted advertising)
Remarks in parenthesis indicate opportunities, e.g., missing markets denote an opportunity for the creation of markets.
Overcoming Sectoral Barriers:
Buildings
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Voluntary programs
Building efficiency standards
Equipment efficiency standards
Demand-side management (DSM) programs
Financing programs
Government procurement
Tax credits
Accelerated R&D
Carbon cap and trade schemes
4.24
Overcoming Sectoral Barriers:
Transport
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Fuel taxes
Charges on road users, including parking fees, road taxes, license fees,
and insurance premiums
Shifting local government spending towards public transport and away
from private transport.
Fiscal and regulatory measures and public purchasing aimed at
developing larger markets for low- GHG-emission vehicles plus
international co-operation
Implementing planning measures that encourage more sustainable
transport patterns, avoiding the pollution, congestion, higher accident
rates, and GHG emissions associated with cars. Introduce toll rings
around big or medium sized cities,
Moving away from zoning and car-based transport, and towards multifunction, high-density pedestrian zones
Effective mitigation strategies would entail combinations of measures
for overcoming the many forms of inertia and lock-in.
4.25
Overcoming Sectoral Barriers:
Industry
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Technology diffusion policies: there is no single instrument to reduce
barriers; instead, an integrated policy accounting for the characteristics of
technologies, stakeholders, and countries addressed would be helpful.
Information programmes designed to assist energy consumers in
understanding and employing technologies and practices to use energy
more efficiently.
Best Practice’ programmes aimed to improve information on energy
efficient technologies, demonstration projects and information
dissemination, Energy audit programmes, among others.
Environmental legislation can be a driving force in the adoption of new
technologies.
Direct subsidies and tax credits or other favorable tax treatments.
Financial incentive programmes leading to large impacts on energy
efficiency
4.26
Overcoming Sectoral Barriers:
Energy Supply
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Multilateral cooperation is especially important for the development of
hydropower programmes, regional interconnections, and developing small
renewable technologies (e.g., mini hydro, solar, and wind).
A reduction in nuclear or hydro unit size and/or improved safety could
help to overcome the capital availability barrier.
Greater regional co-operation among developing countries in both
research and development, and the development of an international
commercial contracting network, to improve technology transfer.
Accounting for the needs of potential users, and harmonizing diffusion
strategies with local physical, human, and institutional resources, while
building local technical and institutional capabilities.
Expansion of electricity supply systems, while improving the efficiency of
new capacity.
Promoting commercialization of excess electricity production (e.g. from
Industrial CHP) through better regulated access to existing grid systems.
4.27
Overcoming Sectoral Barriers:
Agriculture
• Farm-level Adoption Constraints, participatory arrangements that fully
engage all the involved actors may help to overcome many barriers.
• The expansion of internationally supported credit and savings schemes,
and price support, to assist rural people.
• Shifts in the allocation of international agricultural research.
• The improvement of food security and disaster early warning systems.
• The development of institutional linkage between countries with high
standards in certain technologies, for example flood control.
• The rationalization of input and output prices of agricultural commodities
taking DES issues into consideration which would lead to more efficient use of
input resources.
4.28
Overcoming Sectoral Barriers:
Forestry
• Forestry sector options are relatively low cost
compared to those in the energy sector, which
helps to reduce barriers.
• Promotion of mitigation projects also
automatically promotes the flow of technology
• Independent verification of C abatement would
help to increase the credibility and funding of
forestry-sector mitigation projects.
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Overcoming Sectoral Barriers:
Solid Waste
• A multi-pronged approach is needed which should
include the following components:
– Building up of databases on availability of wastes, their
characteristics, distribution, accessibility, current practices of
utilization and/or disposal technologies and their economic
viability;
– An institutional mechanism for technology transfer though a
coordinated program involving the R&D institutions, financing
agencies, and industry (Schwarz, 1997); and
– Defining the role of stakeholders including local authorities,
individual house holders, NGOs, industries, R&D institutions,
and the government.
4.30
Module 4c
Examining Barriers During a
Mitigation Assessment
4.31
Examining Barriers During a
Mitigation Assessment
• Mitigation assessment should include information on the
barriers and opportunities for implementation.
• Useful to identify main implementation requirements
including:
– Financial support
– Assessment of technology options for the different mitigation
options in various sectors
– Institutional capacity-building to sustain mitigation work
– Regulation policies
– Further improvements of the national decision framework
4.32
Possible Topics for Discussion
• How can the concepts of mitigation
potential (market, economic, social,
technological) and barriers best be
incorporated into a mitigation
assessment?
• What approaches might be used for
modeling mitigation potential?
4.33