A web-based tool for policy options to reduce GHGs until 2020

Transcription

1 A web-based tool for policy options to reduce GHGs until 2020

2 A web-based tool for policy options to reduce GHGs until 2020 By: Luis Janeiro and Heleen Groenenberg Date: 22 January 2015 Project number: CLINL15542 Reviewer: Prof. dr. Kornelis Blok Ecofys 2015 by order of: Ministry of Infrastructure and the Environment, The Netherlands ECOFYS Netherlands B.V. Kanaalweg 15G 3526 KL Utrecht T +31 (0) F +31 (0) E info@ecofys.com I Chamber of Commerce

3 Abstract The rate of greenhouse gas emission reductions needs to accelerate very substantially for the world to remain on a pathway consistent with a temperature increase of 2 C. Workstream 2 of the Ad Hoc Working Group on the Durban Platform encourages countries to identify options to increase ambition to reduce greenhouse gas emissions before One of the options is the implementation of additional policies, but information on effective policies is still not widely available. Therefore, there is a clear need for a useful and cost-effective web-based tool for disseminating information on policy options to policy makers. However, there are two concerns: a) that something new is set up that duplicates existing tools; and b) that overall maintenance costs may become a significant burden. In this report, we present an overview of existing policy databases. These contain more or less exhaustive inventories of policies implemented in a selection of countries, economic sectors, and policy areas. We recommend to establish a database of policy options only, possibly complemented by one or several examples of implemented policies. Such a database would not contain an exhaustive list of implemented policies, but may provide focused guidance for developing new policies by providing generic information on strengths and weaknesses of policy instruments, and selected best practices. It may also perform a portal function to more information on international programmes and support. The total initial investment to bring a database of this type online is estimated at around 140,000. The cost of maintenance and updates is estimated at 30,000 per year. ECOFYS Netherlands B.V. Kanaalweg 15G 3526 KL Utrecht T +31 (0) F +31 (0) E info@ecofys.com I Chamber of Commerce

4 Table of contents 1 Introduction Background Objective 2 2 Inventory of web-based policy databases Type 1 vs Type 2 policy databases Overview of existing policy databases 3 3 Proposed structure of a new database Coverage of sectors and policy areas Policy types 7 4 Estimated efforts 10 5 Q&A from the discussion of Friends of WS2 at the COP20 in Lima 11 6 Conclusions 13 Annex 14 A1. UNEP-CTCN Knowledge Management System 14 A2. IEA Policies and measures database 15 A3. RES-Legal: legal sources on renewable energy 16 A4. Odyssee-Mure: Energy efficiency policy database 17 A5. IIP Industrial Efficiency Policy Database 18 A6. CLASP Database of Appliance Standards and Labels 19 ECOFYS Netherlands B.V. Kanaalweg 15G 3526 KL Utrecht T +31 (0) F +31 (0) E info@ecofys.com I Chamber of Commerce

5 1 Introduction 1.1 Background There is an urgent need to accelerate the rate of greenhouse gas emission reduction to limit climate change. The UNEP emissions gap report (UNEP 2014) 1 concludes there is a gap at up to 10 Gt CO2e in 2020 between emission levels if country pledges are met, and what would be necessary to be on a pathway consistent with a temperature increase of 2 C. The gap is estimated at up to 17 CO2e in Existing commitments from countries play a crucial role, but are insufficient to close the gap. Under Workstream 1 of the UNFCCC Ad Hoc Working Group on the Durban Platform (ADP) countries are encouraged to submit post-2020 national contributions to the global mitigation of greenhouse gas emissions as part of a 2015 international climate agreement. These may take the form of emission targets and, additionally, specific policies. Workstream 2 of the ADP encourages countries to identify options to increase ambition to reduce greenhouse gas emissions before A number of thematic areas has been identified where further emission reduction potential is available and where measures have sustainable development benefits. As part of Workstream 2 a series of Technical Expert Meetings on exploring mitigation options in areas of high potential have been organised, including on energy efficiency, renewable energy, land use, urban environments, carbon dioxide capture, use and storage, and non-carbon dioxide greenhouse gas emissions. The outcomes of these meetings have been documented in Technical Papers 2. An important challenge for many countries is the identification of appropriate policies to exploit the potential for GHG reduction in each of these areas. In 2013 the Alliance of Small Island States submitted a proposal to Workstream 2 outlining steps for a technical process to analyse mitigation opportunities, and to identify best practices that can be grouped by thematic areas. In March 2014 Ecofys presented a paper proposing a way to develop a policy menu that countries may use both in considering ways of enhancing their pre-2020 level of ambition, as well as to design post-2020 national contributions to the 2015 agreement that are as ambitious as possible 3. Hence, a group of parties has proposed capturing and disseminating policy options in an easily accessible and searchable web-based tool. This regards information identified in the Technical Expert 1 UNDP, The Emissions Gap Report The latest Technical Paper was published in November 2014: UNFCC, Updated compilation of information on the mitigation benefits of actions, initiatives and options to enhance mitigation ambition. Technical paper. November Available online from: 3 Ecofys, Towards a policy menu to strengthen the ambition to mitigate greenhouse gases. March CLINL

6 Meetings, and available from various expert organisations (e.g. IEA, IRENA, UNEP, UNDP, WB etc.). This web-based tool could serve as a portal by referring to additional information from other existing policy databases and international cooperative initiatives. Article 32 draft decision from ADP Workstream 2 during COP20 in Lima 4 reads that [the Conference of the Parties] also requests the Secretariat to [ ] disseminate the information in the technical paper referred to in paragraph 32(a) above, including through a publicly accessible web-based tool. However, there are two concerns: a) that something new is set up that duplicates existing tools; and b) that overall maintenance costs may become a significant burden Objective Against this background the purpose of this study is to present an inventory of existing tools and define the best way forward to come to a useful and cost-effective web-based tool for disseminating information on policy options to support a decision on developing such a tool. To this end, as part of the project a scan of relevant existing web-based tools (or other databases) of policy options is made. The tools that come close to a desired policy database are identified and characterised in further detail. The characterisation includes the aim of the tool, the accessibility, the hosting/operating agency, current use, and the scope and size of the database, including geographical and sectorial coverage. On the basis of the inventory, preliminary conclusions on the need and prospects of building on existing databases/tools are drawn up. The inventory and the preliminary conclusions have been informally presented and discussed during COP20 in Lima in the Friends of WS2 group and with the UNFCCC secretariat and the Climate Technology Centre and Network (CTCN) of UNEP 6. In chapter 2 of this report an inventory of existing policy databases is provided, as well as an explanation of the difference between so-called Type 1 and Type 2 policy databases. In chapter 3 we clarify how a new web-based database could be structured, depending on the type of database considered. In chapter 4 we provide a qualitative assessment and a quantitative estimation of the effort involved in setting up and maintaining a web-based tool and database. In Chapter 5 we provide answers to the questions raised during the discussion in the group Friends of WS2 at the COP20 in Lima. Chapter 6 provides conclusions and recommendations. 4 Draft text on ADP2-7 agenda item 3. Implementation of all the elements of decision 1/CP November Advancing the Durban Platform for Enhance Action. Draft by co-chairs. 5 In the final decision adopted in Lima (1/CP.20) no explicit reference to a publicly accessible web-based tool is made, but the wording on dissemination of information in para 19(c) does not exclude the development of such a tool either. 6 CLINL

7 2 Inventory of web-based policy databases 2.1 Type 1 vs Type 2 policy databases Before exploring options for a new web-based tool it is useful to differentiate between two different types of databases. We distinguish Type 1 and Type 2 policy databases: A Type 1 policy database contains policy options, possibly complemented by one or several examples of implemented policies. A Type 1 database may serve as a reference guide for policy makers. A Type 2 policy database contains policies that have been actually implemented worldwide or in a world region. Such databases may help to assess the status of policies worldwide. The databases listed in section 2.2 are all Type 2 databases. In this report we explore whether a Type 1 policy database would be a useful alternative tool to inform policy makers. We did an extended search, but no web-based tool of Type 1 has been found 7 so far. Existing policy databases are Type 2 policy databases. These will be discussed in section Overview of existing policy databases A range of databases with policies for reducing greenhouse gas emissions is available worldwide. Most of these policy databases contain implemented policies in a selected number of countries, economic sectors, and policy areas. These are so-called Type 2 databases. Important databases are presented in Table 1 and in more detail in an annex of this report. Each of the Type 2 databases described has its own strengths and weaknesses: The International Energy Agency has probably the most extensive policy database available online in terms of sectorial and regional coverage. The level of detail of the policy descriptions varies, both within and across the countries included in the database. The database only covers energy-related policies. The database developed in the RES-Legal project has a limited scope, as it includes renewable energy policies in Europe only. However, the database includes very thorough descriptions of renewable energy policies that have been structured in a consistent manner. Entries include also levels of economic support and a reference to relevant legal provisions. The Odyssee-Mure database also has a limited scope, both geographically and in terms of the policy areas covered. The database focuses on energy efficiency policies in Europe. However, it is a very extensive and detailed database, covering all economic sectors. 7 An extensive web search was carried out using the following search terms: policy/database/best practice/mitigation/energy/emissions/measures/instruments as well as several combinations of them. No results were found that would meet the characteristics of a type 1 policy database. CLINL

8 The Institute for Industrial Productivity also has a database including energy efficiency policies, but covers industry only. Policies are broadly classified according to three categories: effort-defining, supporting measures and implementing toolbox. CLASP has a narrow focus on energy efficiency regulations for energy related equipment. However, the inventory of policies is very extensive. It includes minimum energy performance standards and informative labels implemented or in preparation around the world. Regulations are not described in detail. Table 1 also refers to the database developed by the Climate Technology Centre and Network (CTCN) run by UNEP. This database is a broad knowledge management system and includes a large number of reference to reports and publications (see Annex). Currently, this system does not include a policy database. The knowledge management system, however, has the flexibility to host a policy database. CLINL

9 Table 1. Overview of selected Type 2 databases Database Status and Update Description Nr Records Sector Coverage Mitigation Strategies Covered Regional Coverage IEA Updated biannually It includes 4 databases (climate change, renewable energy, energy efficiency, BEEP). Main objective is to enhance availability of international energy policies, measures and market data. > 6,000 policy measures/ regulations/ voluntary initiatives described Mostly energy supply, industry, buildings, transport. Specific database for the built environment Climate change Renewable Energy Energy efficiency Global (IEA member countries, the EU and 6 others) RES-Legal Updated in 2014 The aim of the database is a clear, efficient and concise overview of national renewable energy regulations: comparison of support schemes, grid issues and policies. > 600 policy measures and regulations described Energy Supply, Buildings, Transport Only renewable energy EU 28 + Switzerland, Liechtenstein Norway, Iceland and Turkey Odyssee-Mure Last updated in February 2014 The main objective is to monitor energy consumption and efficiency trends and evaluate energy efficiency policy measures. >2,000 policy measures in 29 countries Energy supply, Industry and Buildings Only energy efficiency EU Member States and Norway Institute for Industrial Productivity Released in 2012 The main objective is to identify best practices to ensure industrial stakeholders have access to the most effective energy efficiency policy approach. 130 policies described Industry Only energy efficiency Mostly US, India and China 11 other countries included CLASP Updated regularly since 2005 The main objective is to compare policies and regulations of appliance standards and labels across countries and by product. 1,970 energy standards and labels listed Energy supply, Buildings, Transport and Industry Only energy efficiency Global (49 economies) UNDP - CTCN Beta version, Not launched yet The focus is on technological knowledge transfer rather than policy. Main objective is to respond to demands from developing countries. > 13,000 In principle open to entries in all sectors In principle open to all types of mitigation strategies Global CLINL

10 3 Proposed structure of a new database For the purpose of a useful and cost-effective web-based tool for disseminating information on policy options (as referred to in Article 32 draft decision from ADP Workstream 2, see section 1.1) basically two options exist: a) A web-based tool could be built on existing databases, all or most of them Type 2 databases. Content from existing databases could be retrieved frequently and consolidated in a new web-based tool. This presents an opportunity for collaboration with other institutes, and will lead to a database with a lot of information. However, we expect that it will be more expensive to build and maintain. For instance, duplicates of policies included in multiple policy databases need to be taken out, and the quality of entries need to be reviewed. In addition, the number of records each representing an individual policy may limit the use of the tool as practical guidance for policy development. b) Alternatively, a new Type 1 policy database and web-based tool could be developed. Such a database does not intend to provide a comprehensive overview of implemented policies. Therefore, it is less likely to be outdated soon. It contains a smaller amount of records and therefore is more simple for policy makers to consult. In addition, it will be easier to include recommendations for choosing a particular policy instrument. In the following chapter we describe a structure for a Type 1 database underlying a new web-based tool. 3.1 Coverage of sectors and policy areas A web-based tool of climate policy options requires a coherent and comprehensive structure that ensures its completeness both in terms of the economic sectors covered as well as the mitigation alternatives considered. In Figure 1 below we show our proposed framework to organise the web-based database. This framework is a matrix of key economic sectors (rows) and policy areas (columns), which together determine the individual policy segments (dotted lines). Examples of policy segments are for instance energy efficiency policies in industry or fuel switch in the transport sector. CLINL

11 Figure 1. Proposed structure for the policy database: Economic sectors and (mitigation) policy areas covered 8. Climate policies vary widely in terms of coverage. These may target: a specific policy segment: e.g. minimum energy performance standard for household devices (buildings x energy efficiency); a specific policy area and one, several or all economic sectors: e.g. feed-in tariffs for renewable energy. a specific economic sector and one or many policy areas, e.g. a tax exemption on low-carbon technologies for industry. several or all econonomic sectors and policy areas (overarching policies) e.g. national climate change strategies. In the following section we provide some examples of policy types per segment in order to illustrate the structure and type of content to be included in the database. 3.2 Policy types Figure 2 below shows an exemplary list of types of climate policies that may be used to mitigate emissions in the energy supply sector by means of increased deployment of renewable energy technologies. 8 The category activity change refers to mitigation strategies whereby the same social and/or economic result is achieved with a different approach e.g. reducing emissions in the transport sector by incentivising working from home or switching mode of transport from road to rail. CLINL

12 Segment : Renewable Energy/Energy Supply PT1 Economic PT2 Regulatory PT3 Information PT1A Feed-in tariffs/premiums PT1B Quota schemes PT1C - Investment Subsidies PT2A Mandatory purchase of RES PT2B RES grid priority PT2C Public procurement of RES PT3A Ecodesign requirements PT3B Information campaigns PT1D Tax Exemptions PT1E Guaranteed loans PT1F Subsidised loans Figure 2. Exemplary of types of climate policies addressing a policy segment (renewable energy in energy supply) Zooming in in each of the policy segments there are three main approaches that may be used to design climate policies, namely: 1. Economic policies create economic incentives for stakeholders (industry, consumers, national or local governments) to adopt low-carbon technologies and practices. They encourage behavioural changes through their impact on market signals rather than through explicit directives regarding pollution control levels or methods or resource use. Examples are carbon taxes, emissions trading or feed-in tariffs for renewable energy. 2. Regulatory instruments are designed to achieve government's objectives through the use of regulations, laws, and other instruments to deliver better economic and social outcomes and thus enhance the life of citizens and business. Examples include minimum energy performance standards or priority access for renewable energy. 3. Information instruments work to change behaviour through the provision of greater information or by enhancing access to information. Examples include information and education campaigns, labelling requirements, or requirements to disclose other information to the market. A country that would like to establish an incentive to (for example) speed up the penetration of renewable energy sources in its energy supply has several options (policy types) to fulfil this objective. These include feed-in tariffs, quota schemes, investment subsidies, among several others. Each of these policy options has a number of key design elements that need to be considered in its implementation as well as advantages and challenges that have been identified with previous international experience. CLINL

13 A Type 1 web-based tool of climate policy options could store generic information for each of the policy instruments identified (see Figure 3 below). In addition to this generic information per instrument, the database could store a 2 or 3 best practice detailed case-studies with thorough information on its practical implementation. Figure 3. Structure of a Type 1 policy database CLINL

14 4 Estimated efforts A very important consideration in deciding on the implementation of the web-based policy tool regards the effort involved in setting up and maintaining the database. These efforts comprise the activities summarized in the table below. Work is required to set up the database, filling it in, perform quality checks of the content, maintaining it and updating it frequently. We expect that the amount of effort required for setting up and maintaining a Type 1 database is considerably smaller than for a Type 2 database. The main reason is that a Type 2 database is likely to contain a vast amount of entries that all need to be consolidated, reviewed, and made consistent. Most likely this effort cannot be undertaken centrally, and help from national representatives will be required. A Type 1 database contains a smaller amount of records and is more static, since types of policy instruments do not change over time as fast as implemented policies in specific countries. Therefore, a Type 1 database is also less likely to be outdated soon. Table 2 Breakdown of efforts involved in setting up and maintaining a Type 1 web-based policy tool. Type 1 - Illustrative database including generic information per policy type and best practice examples Tasks Estimated cost ( ) Setup Set up structure of the database 20,000 Inventory of policy instruments per segment 15,000 Fill Database Maintenance and updates Detailed description of each policy type. Elaborate on advantages and challenges per policy type identified in previous international experience. Fill database with up to 4 best practice examples for each policy type in each of 35 policy segments Maintenance and periodic updates of policy descriptions and best practice examples (per year) 45,000 60,000 30,000 The total initial investment to bring a database type 1 online is estimated at 140,000. Roughly 15% of this budget would be dedicated to the technical setup of the database and 85% to provide it with content. The cost of maintenance and updates is estimated at 30,000 per year. CLINL

15 5 Q&A from the discussion of Friends of WS2 at the COP20 in Lima Q1: Is there really a need for such a tool? Will it be used? How to avoid something will be developed that is not used in the end? The investigation of the need for the tool was not part of this project. In general, no guarantee can be given. The best way to avoid disappointment is to develop the tool in close interaction with the intended users. Q2: Even if there is nothing like a Type 1 tool, can we nevertheless connect to other databases? Yes, this is possible. In addition to providing 2-3 best practice examples per policy type, the web tool could serve a portal function by referring to additional information from other existing policy databases and also refer to international cooperative initiatives in the particular area. Q3: How can this tool be connected to the Knowledge Management System of the Climate Technology Centre and Network? The Knowledge Management System (KMS) of the CTCN has been conceived as an online platform for knowledge transfer, which in principle could integrate the content of the type 1 database into its own system. Q4: Can information on international support options and collaborative approaches be added to this tool? Yes, and the tool could also link to the relevant information, see also answer to the previous question 3. Q5: How are country-specific needs addressed? This is partly done by qualifying the policy options included in the database elaborating on advantages and challenges identified in previous international experience which indicate to what extent policies can be applied in certain circumstances. Q6: Are HFC policies included? Yes, the policy database includes not only energy and CO 2 policies but all relevant GHG gases, including HFCs. See Figure 1 in section 3.1. CLINL

16 Q7: There are many examples of nice software tools that run out of budget and out of time. How to avoid this? A web-based tool type 1 is rather simple, it would contain just a limited number of records and a limited number of items to be filled per record. It would not require complex calculations. So, the risks associated with building a web-based policy tool are low. CLINL

17 6 Conclusions In this report we made an inventory of existing policy databases so far. The purpose of this exercise was to inform about the best way forward to develop a cost-effective web-based tool for disseminating information on policy options, including those identified during the Technical Expert Meetings organised under Workstream 2 of the ADP. The inventory of existing databases pointed out that existing policy databases are so-called Type 2 databases. These contain a large number of policies for several economic sectors and policy areas. So far no web-based tool has been identified that is based on a Type 1 database. A Type 1 database can serve as guidance for developing new policies by providing generic information on strengths and weaknesses of policy instruments, and selected best practices. It contains a smaller amount of records, and is easier to consult. Therefore, it is also less likely to be outdated soon. In this report we also considered the efforts that will be required to setup and maintain a new webbased policy tool. We consider this an important constraint for the cost-effectiveness of the tool. The total initial investment to bring a database type 1 online is estimated at around 140,000. The cost of maintenance and updates is estimated at 30,000 per year. We recommend that Workstream 2 of ADP consider ways to develop and implement a new webbased policy tool based on a Type 1 database. This database would contain generic information as well as a selection of best practice examples for different types of policy instruments in all policy segments. It may also perform a portal function to more information on international programmes and support. CLINL

18 Annex A1. UNEP-CTCN Knowledge Management System UNEP-CTCN: Knowledge Management System The CTCN started as a mandate from the COP. Main objective is to respond to demands from developing countries. The focus is on technological knowledge transfer rather than policy. General description Database will be filled in with inputs from the consortium running the CTCN (11 organisations) as well as CTCN network members. Status Access Link Status: beta version. Launched on Dec 2nd in the COP in Lima. The beta version they have to entries already. Free Figure 4 Cover CLINL

19 A2. IEA Policies and measures database IEA Policies and measures database The main objective is to improve easy access to international renewable energy policies, measures and market data. It comprises Addressing Climate Change, IEA/IRENA Renewable Energy, Energy Efficiency and Building General description Energy Efficiency Policies databases. Information on policies at national level (regional actions are not systematically included). Information on policy title, country, year, policy status, policy type and policy target is provided. Mostly energy supply, industry, buildings and transport. Databases cover measures taken in IEA member countries and Sectorial and regional coverage Brazil, China, the European Union, India, Mexico, Russia, South Africa. Launched in 1999, BEEP database launched in Updated bi-annually. Status IEA delegates (and IRENA) review and update existing records with direct information from member governments. Access Free Link Figure 5 Screenshot CLINL

20 A3. RES-Legal: legal sources on renewable energy RES-Legal General description Sectorial and regional coverage Status Access Link The focus is renewable energy policy. It is an initiative of the European Commission. The main objective is a clear, efficient and concise overview of national renewable energy regulations. RES LEGAL Europe is a comparison tool of support schemes, grid issues and policies. Information is based on the relevant legal sources. The database provides links to the legal sources, links to translations of laws and contact details of national experts. It covers electricity, heating & cooling and transport. The scope is the 28 EU member states, the EFTA countries and some EU Accession countries. Updated on a regular basis and professionally reviewed. Archives date back to Free Figure 6 Screenshot CLINL

21 A4. Odyssee-Mure: Energy efficiency policy database Odysse-Mure General description Sectorial and regional coverage Status Access Link The main objective is to monitor energy consumption and efficiency trends and evaluate energy efficiency policy measures by sector. 2 complementary databases: ODYSSEE (energy efficiency and CO2 indicators) and MURE (energy efficiency measures) It was co-funded by the Intelligent Energy Europe Programme of the EU. The database can be queried by sector, country, measure type and end-use. It covers energy supply, industry and the built environment. Information is provided on the EU Member States and Norway. In February 2014, it included more than 2000 measures for all targeted countries. Updated once to twice a year by national representatives. Free Figure 7 Screenshot CLINL

22 A5. IIP Industrial Efficiency Policy Database Institute for Industrial Productivity Industrial Efficiency Policy Database The main objective is to identify best practices to ensure industrial stakeholders have access to the most effective energy efficiency policy approach. Part of the 5 industrial energy efficiency and energy General description management databases. Policies are listed in a pyramid as effort defining policy, supporting measure or implementation toolbox. Results include policy description, implementation information and costs & benefits. Only industry and energy efficiency. The near-term focus is the US, India and China Sectoral and regional coverage Other countries include Australia, Canada, Germany, Russia, South Africa, Thailand, Sweden, Finland, the UK, Japan, and the Netherlands. Released in Status Reviewed by global experts and researchers. Access Free Link Figure 8 Screenshot CLINL

23 A6. CLASP Database of Appliance Standards and Labels CLASP Databased of Appliance Standards and Labels The objective is to compare policies and regulations of appliance standards and labels across countries and by product. General description The main focus is energy efficiency. The database compares policy type, policy status and most recent effective date. By products, divided in 17 product groups, cover the energy Sectoral and regional coverage supply, industry, built environment and transport sectors. The database provides information on 49 economies. Launched in Status Updated regularly by S&L experts. Access Free Link Figure 9 Screenshot CLINL

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25 ECOFYS Netherlands B.V. Kanaalweg 15G 3526 KL Utrecht T: +31 (0) F: +31 (0) E: I: