Analysis of climate finance policy instruments. 2 Imprint Published by: Contact adelphi Caspar-Theyss-Strasse 14a 14193 Berlin / Germany T +49 30-8900068-0.

Analysis of climate finance policy instruments

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What you can expect to learn from this exercise:

Get an understanding of :- the implementation process of policy instruments in different

contexts.- the relevant criteria for evaluating climate policy instruments

considering different stakeholder perspectives.

How to:- analyse climate policy instruments according to quantitative and

qualitative parameters.

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Introduction of the analysis criteriaOverview of real case examplesExerciseReflections

Agenda

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Introduction of the analysis criteria

Institutional base

Co-benefitsEffectiveness

Public costs

Private sector/ consumer cost

Climate Policies

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Introduction of the analysis criteria

Institutional base

Guiding questions:

• Which institutions (private and public) are involved and in what way do they cooperate with each other?

• How would you assess the capacity of the institutions involved with regards to policy implementation?

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Introduction of the analysis criteria

Guiding questions:

• What are the main cost categories to be borne by the government, e.g. administrative expenses, direct subsidies, decrease of tax revenues, etc.

• How costly is the implementation of the climate policy with regards to the required institutional set-up and coordination process?

Public cost

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Introduction of the analysis criteria

Guiding questions:

• What potential cost impact does the climate policy instrument have for the private sectors?

• How are industries and private households affected by the changes in prices of goods and services?

Private sector/ consumer cost

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Introduction of the analysis criteria

Guiding question:

• How effective is the policy instrument in terms of climate change mitigation or adaptation (e.g. emission reductions, reduction of vulnerability)?

Effectiveness with regards to mitigation and/or adaptation

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Introduction of the analysis criteria

Guiding questions:

• What are the potential co-benefits of the policy instrument, e.g. poverty reduction, improvement of health situation, economic development, job creation, etc.?

• What is the potential negative impact induced by the policy instrument?

Co-benefits

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Introduction: Real cases of climate finance policies

Case 1: South Africa - Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

• Policy that offers a guaranteed price for renewable energy to be fed into the electricity network over a fixed-term period

• Guarantees grid access to renewable electricity generators

• Tender-based programme where investors are selected through a competitive tendering process.

For detailed information on the case please see hand-out!

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Introduction: Real cases of climate finance policies

Case 2: Perform, Achieve and Trade (PAT) Energy efficiency scheme in India

• The PAT scheme sets plant-specific energy efficiency targets with a first compliance period from 2012-2015

• So called Designated Consumers (DCs) from 15 sectors receive tradable, certified energy savings credits if they achieve efficiency gains beyond their reduction target

• During the design process, the engagement of the industry as well as flexibility have been key factors

• For a successful system, a strong MRV system is needed which can also facilitate a linkage to international carbon markets in the long run

For detailed information on the case please see hand-out!

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Analysis of climate policy instruments

Now it is your turn to do the exercise!

Break up into groups of 4 people Follow the instructions of the step-by-step guide which you will find in the

hand-out

• Step 1: Use the information in the hand-outs regarding the real cases of climate policy implementation.

• Step 2: Analyse one of the cases according to the criteria displayed on the hand-out and formulate your conclusions as bullet points on a flipchart paper

• Step 3: Present your results to the plenary and discuss the outcomes with the other participants.

You are free to think of additional evaluation criteria that can be applied in analysing the cases!

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Analysis of climate policy instruments

Getting CLIF Ready

• What did you learn from this exercise?

• What aspects of the results from the analyses of the real case examples did you find surprising?

• How do you assess the feasibility of implementing similar policy instruments in your country?

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Analysis of climate policy instruments – Next Steps

Checklist to get CLIF Ready

According to what you learnt from this exercise you could …

Check the institutional capacity in your institution/ country regarding the implementation of different climate finance policy options.

Check what would be the most suitable criteria to assess the feasibility of climate finance policies in your country.

Check potential climate finance policies that can engage the private sector in your country.

Check where it would be sensible to implement a policy instrument?

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Analysis of climate policy instruments

Thank you for your attention!!!