Energy sector summary watkinson&ayalew ccxg gf sep2014
1. Climate Change Expert Group
www.oecd.org/env/cc/ccxg.htm
CCXG Global Forum 17 September 2014
Breakout Groups 2 and 3 Energy sector transition and the 2015 agreement
Co-facilitated by
Paul Watkinson and Mulugeta Mengist Ayalew
2. 2
Climate Change Expert Group
We are “off track” from a 2C pathway in terms of emissions, technology development, and investment.
Energy sector transition requires alignment of targets and policy across the short, medium and long term.
A long term goal in the 2015 agreement will help send a signal on investment, but will be difficult to agree.
May be role for reporting metrics of energy transition (e.g. energy efficiency) as well as GHG goals.
Business looks to governments’ own actions as signals.
Key emerging themes - general
3. 3
Climate Change Expert Group
For technology RD&D, need balance of “push” (government action) and “pull” (enabling environments).
There is need for greater government co-operation, but there are already significant collaboration in energy RD&D to build on (multilateral and public-private).
The existing technology mechanisms can be built on, and need to expand links to technology RD&D outside the UNFCCC.
Adequate funding of technology efforts matters.
Key emerging themes – RD&D
4. 4
Climate Change Expert Group
Domestic policies and actions the #1 driver of private sector investment
“Business as Usual” is not necessarily easy either: investment needs are high.
What matters to private investors is not necessarily the text, rather the resolve to build over time under a review process.
Need carbon price signals (not necessarily ETS) to shift fossil fuel infrastructure.
MRV and carbon accounting critical to underpin carbon pricing.
Key emerging themes – investment