!! assessment!of!post+2020! mi0ga0on!scenarios! · sectorial!mi0ga0on! ac0on!plans!(smaps)! •...

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Assessment of Post2020 Mi0ga0on Scenarios Analy&cal input for Colombia’s INDC assessment

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Page 1: !! Assessment!of!Post+2020! Mi0ga0on!Scenarios! · Sectorial!Mi0ga0on! Ac0on!Plans!(SMAPs)! • IdenDficaon.and.prioriDzaon.of.strategic.lines.of.acDon. for.each.sector. Sectorial

   Assessment  of  Post-­‐2020  

Mi0ga0on  Scenarios  Analy&cal  input  for  Colombia’s  INDC  assessment  

Page 2: !! Assessment!of!Post+2020! Mi0ga0on!Scenarios! · Sectorial!Mi0ga0on! Ac0on!Plans!(SMAPs)! • IdenDficaon.and.prioriDzaon.of.strategic.lines.of.acDon. for.each.sector. Sectorial

Outline  

1.  Background:  Low  Carbon  Development  Strategy  2.  Technical  inputs  for  INDC  determinaDon  process  3.  PMR  analyDcal  support  4.  Main  elements  5.  Nexus  with  Colombia’s  MRP    

Page 3: !! Assessment!of!Post+2020! Mi0ga0on!Scenarios! · Sectorial!Mi0ga0on! Ac0on!Plans!(SMAPs)! • IdenDficaon.and.prioriDzaon.of.strategic.lines.of.acDon. for.each.sector. Sectorial

•  Sectoral  reference  scenarios  up  to  2040  

•  IdenDficaDon  of  sectoral  miDgaDon  opDons  

•  Assessment  of  abatement  potenDal  and  costs  

Component  1  2012-­‐2013  

ProjecDon  of  sectoral  reference  scenarios;  

formulaDon  of  low  carbon  development  alternaDves  

•  PrioriDzaDon  of  miDgaDon  opDons  prioriDzaDon  (NAMAs,  programs  and  policies)  to  be  included  in  the  SMAPs.  

•  Design  of  policies,  plans,  and  measures.  

Component  2  2013-­‐2014  

Sectoral  Mi0ga0on  Ac0on  Plans  -­‐  SMAPs  

•  AdopDon  of  Sectoral  MiDgaDon  AcDon  Plans  –  SMAPs  ImplementaDon  •  Policies;  •  NAMAs/Projects    

•  Development  of  MRV  system  •  Local  implementaDon  

Component  3  Ongoing  

SMAP  implementaDon;  development  and  

implementaDon  of  monitoring  &  reporDng  system  

Component  4.  Capacity  building  

Component  5.  Stakeholder  parDcipaDon  &  CommunicaDon  pla]orm  

Colombia’s  Low  Carbon  Development  Strategy  

Page 4: !! Assessment!of!Post+2020! Mi0ga0on!Scenarios! · Sectorial!Mi0ga0on! Ac0on!Plans!(SMAPs)! • IdenDficaon.and.prioriDzaon.of.strategic.lines.of.acDon. for.each.sector. Sectorial

Sectorial  Mi0ga0on  Ac0on  Plans  (SMAPs)  

•  IdenDficaDon  and  prioriDzaDon  of  strategic  lines  of  acDon  for  each  sector  

Sectorial  Mi0ga0on  Scenarios  (boIom-­‐up  

analysis)  

•  Baseline  and  reference  scenarios  2010-­‐2040,  by  sectors  •  Sector  Marginal  Abatement  Cost  Curves  (MACCs)    

Carbon  Calculator  2050   •  Projected  emissions  up  to  2050  •  Sectoral  measures  and  scope  (4  ambiDon  levels)  

Aggregated  mi0ga0on  scenarios  &    

top-­‐down  analysis  of  macroeconomic  impacts  

•  Types  of  economy-­‐wide  miDgaDon  targets;  •  RBS  and  equiDy  scenarios  for  naDonal  discussion  on  

ambiDon  and  fairness;    •  Establishment  of  aggregated    BAU  &  miDgaDon  scenarios  •  Macroeconomic  impacts  (MEG4C-­‐  Colombian  CGE  model)  

Overview:  Technical  Inputs  for    Colombia’s  INDC  determina0on  process  

ü

 ü

 Supplemental  sector  analysis  (boIom-­‐up)  

•  Analysis  of  select  sector  measures  to  increase  level  of  ambiDon  (CCAP)  

•  AddiDonal  analysis  in  the  AFOLU  sector  (IFPRI-­‐CIAT)  

Ø

 

Ø

 

Ø

 

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Objec0ves:  PMR  Analy0cal  Support  

ü Providing   technical   informaDon   and   macroeconomic  analysis   on   emissions   scenarios   and   enabling   policy  instruments;    

ü Enhancing   the   understanding   of   opportuniDes   and  challenges   behind   different   types   of   economy-­‐wide  miDgaDon  objecDves  in  the  Colombian  context;    

ü Strengthening   the   modeling   capacity   in   Colombia   for  analyzing  miDgaDon  pathways,  enabling  policy  opDons  and  macro-­‐economic  impacts.    

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Macroeconomic  AssumpDons  

1.   Sector  assessment  of  mi0ga0on  op0ons  

 (using  sectoral  models)  SBT’s  

Agriculture    Electricity    Coal,  oil  and  gas    Transport    ResidenDal    Industry    Waste  

Sector  experts    Decision-­‐makers  

 Government    Academy  

SMAPs  Government  (Ministries)  

 agents  involved  

2.  Assessment  of  inter-­‐sectoral  interac0ons  &  

 macroeconomic  impacts    (Integra0on  of  BU-­‐TD  models)  

3.  Post-­‐2020  mi0ga0on  scenarios  

Work  in  Progress  

Analysis  of  co-­‐benefits    Other  acDviDes  and  

analysis  

sectoral  experts  government  

 academy  

Input  on  policies  &  ac0ons      for  mid-­‐  and  long-­‐term  mi0ga0on  objec0ves  in  

Colombia    

Methodology:  PMR  Analy0cal  Support  

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Agriculture  

Livestock  

Agriculture  

Waste  

Waste    water  

Industry  

Community  Solid    Waste  

Transport  

Passenger  

Freight  

Energy  

Supply    

Demand  Sector  energía  

Oferta  

Generación  eléctrica  

SIN  

ZNI  

CombusDbles  fósiles  

Crudo  

Carbón  

Gas  natural  

Demanda  

Industria  

Residencial  &  Comercial  

1.  Sector  assessment  of  mi0ga0on  op0ons  (BU)  Baseline  scenarios  (by  sectors)  

Main  Elements  

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Boiom–up  assessment  

Linking  of    BU/TD  models  

Top-­‐Down  analysis  •  GDP  &  sector  output  

•  Consump0on  •  Distribu0onal  effects  

•  Interna0onal  trade  •  Others    

2.  Intersectoral  rela0ons  &  macroeconomic  impact  assessment  

Main  Elements  

MM1   Energy  

MM2  Transport  

MM3   Agriculture  

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So[-­‐linking    MEG4C  CGE  (DNP)  /  Markal  sector  model  (Uniandes)  

(Merven,  B.  et  al.  2013)  ,  (Drouet,  L.,  Labriet,  M.  L.,  &  Vielle,  M.    2008)  

2.  Intersectoral  rela0ons  &  macroeconomic  impact  assessment  

Main  Elements  

Page 10: !! Assessment!of!Post+2020! Mi0ga0on!Scenarios! · Sectorial!Mi0ga0on! Ac0on!Plans!(SMAPs)! • IdenDficaon.and.prioriDzaon.of.strategic.lines.of.acDon. for.each.sector. Sectorial

•  Preliminary  analysis  of  economy-­‐wide  impacts  of  a  carbon  price  has  been  carried  on  with  MEG4C  by  DNP.  This  analyisis  will  be  enhanced  with  expanded  MEG4C.      

•  Preceding  analysis:  the  impacts  of  three  levels  of  carbon  tax  (10,  20,  50  USD  per  tonne  of  CO2)  were  evaluated  

•  Two  oil  price  scenarios  were  modeled  –  “Low  price  scenario”  oil  reaches  and  remains  at  $  80  per  barrel  –  “Medium  price  scenario”    $100  per  barrel  –  With  &  without  revenue  recycling  

-­‐30%  

-­‐25%  

-­‐20%  

-­‐15%  

-­‐10%  

-­‐5%  

0%  2005   2010   2015   2020   2025   2030   2035   2040   2045  

 Mi0ga0on  compared  to  BAU  -­‐  Low  oil  price  

Tax    $10  

Tax  $20  

Tax  $50  

-­‐0.80%  

-­‐0.70%  

-­‐0.60%  

-­‐0.50%  

-­‐0.40%  

-­‐0.30%  

-­‐0.20%  

-­‐0.10%  

0.00%  2015   2020   2025   2030   2035  

10  Tax  with  RM  

20  Tax  with  RM  

50  Tax  with  RM  

GDP  

Carbon  Price:  first-­‐order  assessment  of  macro-­‐economic  impact  

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Output   Baseline  (2013)  

Goal  2018  

Percentage  of  journeys  made  by  sustainable  modes  in  8  ci0es   27%   40%  Outcome   Baseline  

(2013)  Goal  2018  

Intervened  kilometers  of  road  infrastructure  to  urban  transport  systems    

854   908  

Infrastructure  spaces  dedicated  to  intermodality   31   44  Output   Baseline  

(2013)  Goal  2018  

Average  age  of  freight  vehicle  with  gross  vehicle  weight  greater  than  10.5  tonnes  

19   15  

Outcome   Baseline  (2013)  

Goal  2018  

Disintegrated  vehicles  with  a  gross  vehicle  weight  greater  than  10.5  tonnes  

8.000   22.000  

Reports  on  the  Na0onal  Register  of  Freight  Delivery  (RNDC)   1.500.000   6.000.000  

Review   drawing   upon   recently   adopted   sector   development   plans,   in   parDcular  Transport  SMAP  2013  and  NaDonal  Development  Plan  2014-­‐2018:  

Refined  Analysis  of  Sector  Mi0ga0on  Op0ons  

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Nexus  with  Colombia’s  MRP    

MBI1:  Credited  NAMAs  in  the  urban  transport  sector  

MBI2:  Fossil  fuel  surcharge  and  domesDc  offset  scheme  

MBI3:  Performance  standard  for  vehicles  combined  with  allowances  

MRV  System  in  Transport  Sector  

Colombia   MRP:   Readiness   roadmap   for   implementaDon   of   miDgaDon  acDons  &  enabling  policy  instruments  in  the  transport  sector  

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Marginal  Abatement  Cost  Curve:  Transport  Sector  

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Demand-­‐side  measures  Efficient  light  bulbs  

Sectoral GDP

Decrease Electricity GDP

Household Consumption

Decreases  electricity  

consump0on  of  households  

Increases disposable income

Increased consuption for other goods

Increase GDP

0.00%  0.02%  0.04%  0.06%  0.08%  0.10%  0.12%  0.14%  0.16%  

2011   2016   2021   2026   2031   2036  

Percent change in national GDP

Macro-­‐economic  impact  assessment  of  implementa0on  of  set  of  transport  mi0ga0on  ac0ons  

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15

Nathaly  Torregroza  Vargas  [email protected]      Coordinator  –  Mi0ga0on  Group    

Climate  Change  Division      

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Item   AcDviDes  Jan   Feb   Mar   Apr   May   Jun     Jul   Aug  

4   1   2   3   4   1   2   3   4   5   1   2   3   4   1   2   3   4   1   2   3   4   5   1   2   3   4   1   2   3   4  

1  

Report   on   the   types   of  n a D o n a l   c o n t r i b u D o n  (includes   presentaDons   to  agents   and   informaDve  document)  

2   Scenarios  required  by  science  

3   Forward   integraDon   with  Markal  MEG4C  

4   Baseline  scenario  emissions  

5   Scenar io   eva luaDon   o f  measures  NDP  

6   SelecDon   Procces   (MiDgaDon  opDons)  

7   Rev i s i on   g reen   g rowth  policies  

8  P r o p o s e d   M i D g a D o n  Scenar ios   (packages   of  measures)  

9   Socioeconomic's  impact  

10   Instruments   evaluated   and  results  

11   Final  Results  

Work  Schedule  

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Colombia´s  MRP  –Transport  Sector  

NAMAs  needs  to  include  MRV  concept  aligned  with  naDonal  MRV    

Regulatory   inputs   and   insDtuDonal   structuring:   relevant   for   all   market  instruments    

Drar  regulaDon  text:  Legal  base  for  implementaDon  of  all  market  instruments      

Baseline  and  measures  will  be  guided  by  miDgaDon  scenarios  defined  with   the  analyDcal  support    

Includes   the  evaluaDon  of  exisDng   structure   (GSBO-­‐MADS).  Key   for     all  market  instruments  (Basis  for    implemenDng  instruments  analyzed  on  analyDcal  work)  

The   analyDcal   work   will   help   to   strength   modeling   capacity   in   Colombia   for  analyzing  miDgaDon  pathways,  including  transport  sector.    

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Colombia’s  MRP  –  Transport  Sector  

Colombia’s  MRP            Upstream  Analy0cal  Work  

Colombia’s  MRP            Upstream  Analy0cal  Work  

Colombia’s  MRP            Upstream  Analy0cal  Work  

Colombia’s  MRP            Upstream  Analy0cal  Work  

Colombia’s  MRP            Upstream  Analy0cal  Work  

Colombia’s  MRP            Upstream  Analy0cal  Work