Support for the transition to a competitive low

carbon economy

Dr. Karsten Krause

European CommissionDirectorate-General for Climate ActionLow Carbon Technologies Unit

2

A cost-efficient pathway towards 2050 (world-wide)

EC, 2010

Carbon intensity of GDP in 2008 for countries in transition in Europe and Central Asia

Source: IEA, EBRD

(2011)

Technology Transfer & Indigenous Capacity

• Creation of an "enabling environment" can only happen within a country.

• The majority of the investment will come from the private sector, public funding has an important leverage effect.

• Support to assess national technology needs, to develop an "enabling environment" and to initiate projects is available.

UNFCCC Technology Mechanism

• Technology Executive Committee, as an expert body for giving strategic recommendations to the COP

• Climate Technology Centre and Network to provide practical support for the transfer of mitigation and adaptation technologies.

Climate Technology Center and Network

EU Funding Instruments

Climate Action is a Priority for the EU …

• Greenhouse gas mitigation and the resilience against climate change are cross-cutting priorities in all EU programmes

• At least 20% of the 201 – 2020 EU budget will support the climate action targets - around €27.5 billion p.a.

• Additional funding through EU initiatives outside the EU budget, notably NER300 and the lending portfolio of the European finance institutions.

Research and Innovation Policy

• Horizon 2020 budget: 70bn

• At least 35% climate related expenditure within Horizon 2020.

• Focus on energy efficiency, smart cities and lowcarbon energy generation

• First calls will be published in early December2013

LIFE Programme (2014-2020)

LIFE Programme €3,456.7 (2014-2020)

Sub-programme for

Climate Action

€864.2 (25% of LIFE

budget)

Climate Change

Mitigation

Climate Change

Adaptation

Information &

Governance

Sub-programme for

Environment

€2,592.5 (75% of LIFE

budget) Nature &

Biodiversity

Environment &

Resource Efficiency

Information &

Governance

€1,155 min (55% of ENV

Sub-progrm)

LIFE-Climate Action: Types of funding instruments

• innovative financial instruments in most cases offer the highest leverage;

• integrated projects offer a medium leverage through blending of financial sources from different sources (e.g. rural development, research, regional development);

• individual project grants normally offer lower leverage, but may provide chances to support particularly innovative mitigation/adaptation projects.

Beneficiary countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine (partner countries)

Project time frame: October 2012 – October 2016

Project budget: maximum €7 million*

Funding authority: European Commission (DEVCO)

* Part of a larger 'Clima East project' package

SUPPORT TO CLIMATE CHANGE MITIGATION POLICIES

AND MEASURES IN EASTERN PARTNERSHIP COUNTRIES

AND RUSSIA (CLIMA EAST PROJECT)

� Improve capacities to contribute to the 2015 Global Climate Agreement through better access to information and expertise on EU climate policies and the emerging EU climate acquis

� Promotion of dialogue with the EU on climate change and support with approximation to the EU climate change and related climate and energy acquis

� Strengthening of capacity for strategic planning with regard to mitigation, including NAMA's, GHG-related energy efficiency strategies and low-carbon strategies

� Strengthening of capacity for strategic planning with regard to adaptation to climate change, including impact and vulnerability assessment

� Support for the elaboration of domestic and regional emission trading systems

Clima East objectives

Key Messages

• Need for an "enabling environment" to stimulate project development

• Public Private Partnerships

• International support structure

• EU support

More information

http://ec.europa.eu/clima/index_en.htm

• Thank you for your attention!

Source: M. Grubb 2004

EXAMPLES OF A GOOD PROGRESS WITH CLIMATE CHANGE MITIGATION POLICIES IN THE REGION

• Ukraine• - 267 registered JI projects (over 350 million ERU)• - over 500 projects under Green Investment Scheme• - feed-in (“green”) tariff (2009, 2012) to support renewable energy• - tax incentives for manufacturers of energy efficient equipment

(2011) and power generation from renewable energy sources (2012)• Moldova• - Low Emission Strategy (2011) and Policy Options for Climate Change

Adaptation• - Laws on Energy Efficiency (2010) and on Renewable Energy (2007)

provide support to EE&RE, including investment incentives• - National Agency for Energy Efficiency was created in 2011• Belarus• - Regulation on financial incentives for energy saving technologies

implementation in governmental sector (2010)• - Law on Renewable Energy Sources (2010) creates legal environment

and gives preferences for investments in renewables

•

Accelerating the Market Take-up

Source: IPCC 2007, AR 4, WG III

ESIF 2014-2020

Climate action can be fully mainstreamed into the five European Structural and Investment Funds for the period 2014-2020.

• European Regional Development Fund (ERDF)

• European Social Fund (ESF)

• Cohesion Fund (CF)

• European Agricultural Fund for Rural Development (EAFRD)

• European Maritime and Fisheries Fund (EMFF)

• The funds contribute to the objective of having at least 20% climate related expenditure for the next Multiannual Financial Framework (MFF).