Promoting Renewable Energy
and Energy Efficiency through
Legislation and Policy
Tomilola Akanle
School of Law, University of Dundee
IUCN Conference Presentation 27/09/2008
Background
 Climate Change
 Sustainable Development
 Renewable Energy and Energy
Efficiency
 Need to promote the use of and
investment in RE and EE
 Choice of measures: legislative or
policy, voluntary or mandatory?
Examination of Policies and
Legislation
 Energy-related policies and legislation
 South Africa, Jamaica & the
Philippines
 To what extent do they promote the
exploitation, use of and investment in
RE & EE?
 What is the effect on the CDM hosting
potential of these countries? – the
issue of additionality.
South Africa
 A lot of legislation and policy
 Generally contain non-mandatory instruments
 Government unwilling to use mandatory
measures or too many financial incentives
 Other incentives are however used, such as
registration and duty payment exemptions.
 Approach could help RE & EE projects meet the
CDM additionality requirement; impact on
environmental protection is less certain.
 Difficult to assess impact on CDM investment.
The Philippines
 A lot of legislation
 Trying to promote energy selfsufficiency
 Many incentives to increase private
sector investment in NRE
 Impact on CDM investment depends
on level of incentive provided
Jamaica
 Much less done
 Apparently limited awareness
of/desire to use the CDM for RE & EE
 Awareness now on the increase
 Some renewable energy options
appear to be more cost effective than
conventional energy. What is the
effect on CDM eligibility?
Legislation or Policy/Mandatory
or voluntary measures?
 Can the government feasibly provide
enough financial incentives to make the
use of RE & EE more attractive?
 Should government mandate activities
and/or provide financial incentives, thus
improving environmental protection, but
reducing CDM hosting ability? Can such
actions alone effectively help transit
developing countries to a clean energy
development path?
Legislation or policy (contd.)
 Can the use of voluntary measures only,
without commensurate financial
incentives, effectively compel people to
move from the use of traditional fossil
fuel-based energy to RE & EE?
 So, which approach is better to
contribute to sustainable development,
through a balance of environmental
protection and access to energy?
Two Examples
 Jamaica: will not enact . Perverse
incentive not enact legislation for the
mandatory use of ethanol and
gasoline blend of motor vehicle fuel
until project registered under the
CDM.
 Nigeria: perverse incentive for the
non-enforcement of gas flaring
prohibition?
Conclusion
 Mix of mandatory and voluntary
measures
 The CDM is an important tool and a
balance needs to be achieved to
promote CDM eligibility and protect the
environment
 Use the CDM to contribute to achieving
sustainable development goals in areas
eligible for CDM participation; act on
areas not eligible