Module 01 Policy Instruments Lesson 1 Why Low Emissions Development

Module 01Policy InstrumentsLesson 1Why Low Emissions Development?

World BankInstitute

Policy Instruments

Presentation Script

Page 1 of 16

Policy Instruments

Module 1: Lesson 1– Why Low Emissions Development? Presentation Script

Page 2 of 16

Policy Instruments


Overview

This introductory lesson is dedicated to the question: why is pursuing a

path of low emissions development in a country's best interest?

We will pay special attention to the social, economic, and environmental

benefits that low emissions development can provide for achieving a

development agenda.

We also will review some of the challenges and how these barriers can be

overcome.

Page 3 of 16

Policy Instruments


Rationale for Low Emissions Development

We start this course by asking: Why should a country be interested in

pursuing a low emissions development path? In this course, we suggest

there are two main reasons.

First, the pursuit of low emissions development spurs many positive

impacts to national development goals. It promotes wider sustainable

development benefits, which helps address pressures related to

economic growth, population growth, urbanization, and resource use.

Here's a list of the many local benefits it can generate.

Second, a low emissions development trajectory contributes to global

emissions reductions. In this sense, it is a mechanism for mitigating

climate change.

Page 4 of 16

Policy Instruments


Let's take a closer look at climate change. It is now clear that no nation

will be immune to the impacts of climate change. Numerous studies, and

most recently a 2012 World Bank report, stresses that global emissions of

greenhouse gases need to be heavily reduced by 2050. If this is not done,

we risk putting prosperity out of reach for millions of people in the

developing world, and decades of sustainable development efforts are

threatened.

Why Sustainable development can be achieved effectively though LED

Now, let's review some of the risks of climate change.

Why is it useful for countries to consider low emissions development

while achieving their national development goals? One of the main

arguments is that if current global trends of emissions continue, serious

climate change impacts will affect countries. The distribution of impacts

is likely to be unequal and tilted against many of the world's poorest

regions, which have the least economic, institutional, scientific, and

Page 5 of 16

Policy Instruments


technical capacity to cope and adapt. Let's review some examples of

these current challenges that countries can turn into opportunities.

Low emissions development can help prevent and manage heat waves

and droughts that involve huge risks for reduced agriculture and harvest

losses, forest fires, and heat-related deaths. It also can help prevent and

improve water stress and pollution. This will contribute to increased

access to safe and clean drinking water, which prevents health risks.

Furthermore, low emissions development policies can help manage a

wetter climate that will cause similar social and economic costs, such as

increased flooding in many vulnerable urban areas.

Low emissions development can thus help turn the challenges of

developing countries into opportunities. It should be seen as a

development approach that assists countries to achieve sustainable

economic growth and improve living standards while slowing the rise of

greenhouse gas emissions. National low emissions development

strategies should be suitable to country-specific needs and consistent

with a country's sustainable development priorities.

What does LED mean to your country? What about the short-term and

local benefits?

Page 6 of 16

Policy Instruments


What can Low Emissions Development mean to your country?

Let's take a closer look at the national and local benefits of low emissions

development. Click on each button to learn more.

Page 7 of 16

Policy Instruments


Increased Energy Security

LED policies that diversify the energy systems in countries can improve

energy security. Today, many developing countries are heavily dependent

on oil imports, leaving them vulnerable to oil price shocks. Improving

energy security by shifting to diversified energy systems of domestic

renewable energy and energy efficiency can reduce the economic impact

of sharp changes in oil, which improves an economy's resilience.

Currently, fossil fuel dependency leads to many environmental,

economic, and social disadvantages.

A diversified energy system, on the other hand, can provide more

sustainable prospects for energy security. Shifting to renewable sources

of energy and energy efficiency is a climate action that provides health

and social benefits. This energy is locally available in the country and less

Page 8 of 16

Policy Instruments


prone to price hikes, which creates less dependency on foreign energy

and leads to more a sustainable quality of growth.

All in all, a diversified energy system, away from a dependency on fossil

fuels leads to many economic benefits.

Click the blue button to review an example from the Asia-Pacific region.

Improved health and economic activity from less pollution

By reducing the costs of environmental degradation to society, health

and economic activity can improve.

For example, by reducing air pollution, societies can save major health

and social costs.

Page 9 of 16

Policy Instruments


Through climate-smart agriculture, societies can reduce soil degradation

and make better use of land that contains carbon in the soil, thus

mitigating climate change and enhancing agricultural productivity.

In the face of deforestation, forestry programs can help plant trees and

preserve forests that contain extremely important and rich resources for

our survival.

To learn more about the costs of air pollution, click the blue button to

study an example from Europe.

You can also click the green button to review an example of how much

environmental degradation costs as a percentage of GDP for some

countries.

Increased industrial efficiency and productivity

LED policies and programs have huge potential to reduce the energy

costs and thus enhance competiveness of the industrial sector.

Page 10 of 16

Policy Instruments


Through implementing cost-effective measures for energy efficiency,

waste reuse, and insulation improvements, factories and companies gain

many benefits that also will have spillover effects for the whole economy.

For instance, developing economies have an especially significant

opportunity to strengthen their growth by boosting industrial energy

efficiency and productivity. Investments in existing energy-efficient

technologies can potentially pay for themselves through future energy

savings. Click on the marker to view an example from the cement

industry in China.

Measures to reduce energy intensity in the Chinese cement industry have

not only contributed to the goal of reduced energy intensity, but also

improved product quality, which gives sales a boost. Companies that

adopt energy-efficient technologies early also may benefit from

enhanced competitiveness and first-mover advantage. To learn more visit

the link on-screen.

Page 11 of 16

Policy Instruments


New economic opportunities and employment

Low emissions development investments in renewable energy and

energy efficiency can be a new source of jobs for many developing

countries that are struggling with high unemployment. Leading sectors

can be directly linked to: waste management, sustainable agriculture,

energy use, construction of energy efficient buildings, and engineering.

It is important to keep in mind that new job opportunities are not only

found in the research, development and production of renewable energy

equipment and components. There is great employment potential in the

downstream linkages, as they need workforce in the distribution,

marketing, sales, installation, operation, service, and maintenance of

such systems.

Page 12 of 16

Policy Instruments


Click the blue button to review an example from Bangladesh. You can

also click the green button for an example from Korea.

Contribution to a reduction in the global cost of climate change

The first benefit of a low emissions development path is that it is a

contribution to the reduction in the global cost of climate change.

The figure shows how different sectors, such as agriculture and water

resources, will be impacted in different scenarios of temperature

increase.

The warmer the temperature, the more loss of agricultural land and

increased water stress will be experienced. Some of these scenarios

unfortunately will not be completely mitigated and will therefore require

Page 13 of 16

Policy Instruments


societies to adapt to new conditions. This adaptation process is also part

of a low emissions development pathway.

Co-benefits of low emissions development

All in all, we see that well-designed low emissions development policies

can greatly benefit the poor. Click on each marker to look at some daily

life situations.

In the household, measures can involve replacing or improving

indoor cooking stoves, reducing long-term health care costs.

Micro power installations can increase energy access, providing

social benefits.

Page 14 of 16

Policy Instruments


In an urban environment, it can help improve transportation

systems to make them more environmentally friendly and

lowering cities' pollution level.

In rural areas where livelihoods rely on agriculture and forestry,

LED can secure more stable access to food and less deforestation

Challenges of Low Emissions Development– what will it take?

We are now reaching the end of this lesson. Although we have seen that

there are many benefits associated with a transition to low emissions

development, there still remain challenges. The questions that

policymakers usually ask themselves are what sectors will have to adapt?

How much will this cost? What might be the social costs of a transition to

low emissions development?

Page 15 of 16

Policy Instruments


Another challenge is that it will take increased initial investments in

urban infrastructure, electricity generation, and energy efficiency.

In addition, it will require behavioral changes from consumers and

producers in society. For example, there will have to be greater

appreciation of environmental quality, a change in consumer attitudes,

and an economic approach that goes beyond GDP and includes

environmental and social values of development.

Given all these challenges, we simply end up with the question: how do

we start this process? Subsequent lessons will seek to answer these

questions.

How do we start this process?

Page 16 of 16

Policy Instruments


From a strategic perspective, a transition process requires three main

elements: vision, strategy, and action.

Please continue to lesson number 2 where we will explore these

elements in turn.

References and Resources

For more information on low emissions development, click on the links

displayed.

Module 01 Policy Instruments Lesson 1 Why Low Emissions Development

Documents