TNA process and possible g
p
linkages with the NAMA process
Vladimir Hecl
Finance, Technology, Capacity Building Programme, UNFCCC
Technology Needs Assessments in the UNFCCC process
Regional workshop for Eastern European and Asia
Asia-Pacific
Pacific regions to share experiences
and lessons learned in the preparation and implementation of
Nationally Appropriate Mitigation Actions
Yerevan, 3 July 2012
Technology Needs Assessments – what are they?
•
The technology transfer framework defines TNAs as a set of
country-driven activities that identify the mitigation and adaptation
technology priorities of Parties, particularly developing country Parties;
•
TNAs present an opportunity to track an evolving need for new
equipment, techniques, practical knowledge and skills necessary to
mitigate GHG emissions and to reduce vulnerability to the adverse
impacts of climate change;
•
The purpose of TNAs is to assist in identifying priority technology needs,
which can form the basis for a portfolio of EST projects and
programmes which can facilitate access to
to, and the transfer of
of, the ESTs
and know-how in the implementation of Article 4, paragraph 5, of the
Convention;
•
TNAs involve
TNA
i
l stakeholders
t k h ld
in
i a consultative
lt ti process to
t consider
id priority
i it
sectors and technologies, identify barriers to technology transfer,
measures to address these barriers, and explore on other needs;
Technology Needs Assessments – Key steps
Organizing
The TNA
A process
Assembling
national team
Identify country’s
priorities
Identify barriers and
measures to overcome
TNA results fed into
national strategies
Technology
Action Plans
Implement
TNA results
T
Implementation
of TNAs results
Cond
ducting the TNAs and TAP
Ps
Identify and prioritize
sectors and ESTs
Cross--cutting isssues
Na
ational su
ustainable develo
opment objectives
o
s
Identify
Stakeholders
Barriers to technology transfer
The main barriers to technology transfer were economic and market barriers,
followed by human capacity,
capacity information and awareness,
awareness institutional
institutional, policy related
and regulatory barriers;
90
70
60
50
40
30
20
Infrastructuree
Othe r
IP Rss
Technicaal
P olicy-relatedd
Regulatoryy
Institutionaal
Hum ann
0
Inform ati on/awarenesss
10
E connom ic/m arkett
P er cent of the P arties
80
Regional coverage
The submissions of TNAs are covering the following regions and Parties:
•
Latin America and the Caribbean - Antigua and Barbuda
Barbuda, Bolivia,
Bolivia Chile
Chile,
Colombia, Dominica, Dominican Republic, Ecuador, El Salvador, Guyana, Haiti,
Jamaica, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia; (15)
•
Africa - Benin,, Botswana,, Burkina Faso,, Burundi,, Cape
p Verde,, Chad,, Comoros,,
Cote d’Ivoire, Democratic Republic of the Congo, Egypt, Ethiopia, Ghana,
Guinea, Kenya, Lesotho, Madagascar, Malawi, Mali, Mauritania, Mauritius,
Namibia, Niger, Republic of Congo, Senegal, Seychelles, Tanzania, Togo,
Tunisia, Uganda, Zimbabwe, South Africa; (31)
•
Asia and the Pacific - Bhutan, Cambodia, Indonesia, Islamic Republic of Iran,
Jordan, Lao People’s Democratic Republic, Lebanon, Niue, Philippines, Samoa,
Sri Lanka, Thailand, Viet Nam; (13)
•
CIS and Europe - Albania, Armenia, Azerbaijan, Georgia, Malta, Republic of
Moldova, Tajikistan, The former Yugoslav Republic of Macedonia, Turkmenistan,
Uzbekistan; (10)
Groups: (LDCs, SIDS, DC, EIT)
Regional coverage
The submissions of TNAs under the GEF Poznan Strategic Programme on
Technology Transfer are covering the following regions and Parties:
•
Latin America and the Caribbean –Argentina, Bolivia*, Colombia*,
Costa Rica, Cuba, Dominican Republic*, Ecuador*, El Salvador*,
Guatemala, Peru*; (10)
•
Africa - Cote d’Ivoire*, Ethiopia*, Ghana*, Kenya*, Mali*, Morocco,
Mauritius*, Rwanda, Senegal*, Sudan, Zambia; (11)
•
Asia
A
i and
d the
th Pacific
P ifi – Bhutan*,
Bh t * Cambodia*,
C b di * Bangladesh*,
B
l d h* China,
Chi
Indonesia*, Lao People’s Democratic Republic*, Lebanon*, Mongolia,
Nepal, Sri Lanka*, Thailand*, Viet Nam*; (12)
•
CIS and Europe – Azerbaijan*, Georgia*, Kazakhstan, Republic of
Moldova*; (4)
Groups: (LDCs, SIDS, DC, EIT)
• * Countries updating their TNAs
• The World Bank support
F a c ilit ie s
F re ig h t
W a s te m a n a g e m e n t
A g r i c u l tu r e & fo r e s tr y - 8 4 . 6 %
Industry - 84.6%
A lu m in iu m i n d u s t ry
B re a d - m a k in g inn d u s t ry
P u b lic t raa n s p o rt
V e h ic le s
M a n a g e m e n t & p o lic y im p ro v e m e n t s
40
T ra n s m is s io n - 6 1 .5 %
Energy - 84.6% of Parties
B o ile rs
In d u s t ria l e n e rg y -e f f ic ie n c y
S te e l i n d u s t ry
M in in g
F u rn a c e s
50
B u i l d i n g s & r e s i d e n ti a l - 7 6 . 9 %
90
W a t e r a n d la n d m a n a g e m e n t
O th e r
H ig h -e f f ic ie n c y m o t o rs
F u e l s w it c h in g
C e m e n t p ro d u c t io n
M is c e lla n e o u s in d u s trie s
60
DSM
D is t ric t h e a t in g
M is c e ll a n e o u s
C ro p m a n a g e m e n t
F o re s t ry
70
G e n e r a ti o n - 8 4 . 6 %
80
N u c le a r p o w e r p la n t
M is c e ll a n e o u s
E n e rg y - e f fic ie n t a p p lia n c e s
M is c e ll a n e o u s
G re e n b u ildd in g s - m a te ria ls & d e s ig n
RET
F o s s il e n e rg y s u p p ly
C H P (c o g e n e ra t io n )
Parties from Asia and Pacific
f identified their d
f d h
technology needs mostly in the energy sector They identified
sector. They identified the need to foster clean energy technologies, such as RET, high efficiency power generation including co‐
generation These
generation. These were followed by crop management, water management, and public transport needs.
P e r c e n t o f P a r tie s
Transport -76.9%
W a s te m a n a g e m e n t - 7 6 . 9 %
Regional analysis – sectors and technologies related to mitigation
100
30
20
10
0
Projects proposed within TNA reports:
Energy production
Examples of the proposed projects:
•Development of hydropower plant for national use and export of electricity.
•Off-grid solar electrification program to electrify rural households.
•Bio-diesel production for the transport sector.
•Diffusion of solar heaters, by emergence of a local industrial
manufacturing.
Projects proposed within TNA reports:
Forestry
Examples of the proposed projects:
•Increasing CO2 sequestration capacity by aforestation of river basins and
degraded land plots.
•Installation of fire monitoring facilities to assess the more threatened forest
areas from climate change
g p
point of view and the desertification scale due
to fires.
•Planting of protective forest, irrigation management of agricultural fields.
Projects proposed within TNA reports:
Information & Awareness
Examples of the proposed projects:
•Raising awareness on environmental modes of transport – education of
drivers and carrier staff.
•Strengthen knowledge of national stakeholders on various aspects and
benefits of mitigation and adaptation technologies
technologies.
•Production of wind energy atlas on national level.
Examples of the main TNA guiding tools:
Technology Needs Assessments – what next?
•
The SBSTA 35 welcomed the report of the workshop on TNAs held in June 2011 in B
Bonn, and noted that it provided opportunities for Parties:
d t d th t it
id d
t iti f P ti
•
To identify specific needs and actions that could assist Parties in implementing the results of their TNAs particularly actions that will facilitate and realise actual results of their TNAs,
particularly actions that will facilitate and realise actual
transfer of technology to the priority needs of developing countries.
•
To identify means for implementing the results of TNAs while ensuring a balance between mitigation and adaptation activities. •
To share experiences gained and lessons learned from the TNA process and to take these into account in the preparation of their NAMAs NAPs LEDSs and
these into account in the preparation of their NAMAs, NAPs, LEDSs and technology road maps or action plans. •
Being assisted by clean energy project developers to access private capital, and g
y
gy p j
p
p
p ,
encourages other multilateral initiatives, to promote the financing of projects.
From TNAs and LCDSs to NAMAs
• TNAs – identification of
identification of mitigation and adaptation mitigation and adaptation
technologies – based on national development p
priorities and circumstances
• TNAs – analyse barriers to the deployment and diffusion of the prioritized technologies
p
g
• TNAs – come‐up with the Technology Action Plans
(TAPs) to address barriers.
• TAPs – include national policies and strategies, programmes and projects to accelerate technology deployment and diffusion, and implement the recommendations.
From TNAs and LCDSs to NAMAs
• TNAs – undertaken in more than 90 countries so far, and ,
countries that have completed TNA can build on the outputs from TNA process regarding mitigation technology choice, deployment target and the supporting actions and policies
deployment target and the supporting actions and policies
needed.
• TNA process supports also capacity building
p
pp
capac y bu d g which should be also relevant for LEDSs and NAMAs activities by building relevant knowledge and capacity within public decision makers private entrepreneurs and other stakeholders
makers, private entrepreneurs and other stakeholders.
• TNAs, LEDSs and NAMAs are all aimed at helping developing countries pursue their development priorities while reducing
countries pursue their development priorities while reducing GHG emissions – and each of these initiatives may focus on different aspects of the process.
From TNAs and LCDSs to NAMAs
•
•
•
•
•
Model frameworks have been used at the country level to evaluate climate change scenarios. Now using TNA outputs –
h
b l
baseline scenario.
TNA results – also used for – policy scenario.
The policy scenario – facilitate analysis of mitigation potential, abatement cost, investments.
Broader sustainability goals – cross‐cutting technologies and non‐technical options (not included in TNAs) can provide additional scenarios – broader sustainable scenarios – inputs for LEDSs.
sustainable scenarios
inputs for LEDSs
If at this stage a specific climate change goals are introduced – a low emission scenario meeting the specific climate change goal (e.g. 2 C stabilization target) can be produced
stabilization target) can be produced. Scenarios  Strategies 
•
•
Low Emission Development
at National Level
 NAMAs
To register these actions as
To
register these actions as NAMAs – procedures and requirements (still procedures and requirements (still
under negotiation and development) for NAMAs have to be followed.
NAMA requirements may include emission reduction calculations, MRVs, etc.
etc
Preparing and Presenting Proposals
p
g
g
p
UNFCCC Guidebook on Preparing Technology Transfer Projects for Financing
Chapter 1…Summary
Chapter 2…Before Preparing a Proposal
Chapter 3…Preparing a Proposal
Chapter 4…Presenting a Proposal
Chapter 5…Customizing
5 Customizing a Proposal
Information Boxes and Lessons Learned
Templates and Other Annexes
Basic Concepts
• Proposal
• Champion and Enabler
Champion and Enabler
• Money, time and other resources
• Idea + Request
q
Proposal
Champion
Enabler
Typical Proposal Problems
Typical Proposal Problems
• Incomplete or Imbalanced
• Misdirected
• Non‐responsive
Non responsive
• Terminology Gap
Preparing and Presenting Proposals: Building Blocks
Proposal
oposa
What If? To Whom?
Base Case
What?
•
Where?
Who?
Wh t? Proposed action, policy,
What?
•
programme, strategy, product,
service, technology.
•
Where? Location, market,
Who? Champion,
Champion owners
owners,
sponsors, team, approval bodies,
stakeholders
•
Why? Mitigation and national
development benefits, financial,
social, environmental, market, growth
How?
H ? Status, milestones,
How?
schedule, costs, revenues, grants,
loans, investment BASE CASE
•
operating and regulatory conditions
•
Why?
What if? Schedule changes,
output and cost variances, key person
events
•
To Whom? Grant-makers,
Lenders, Investors, Specialized
Programs, Others
Preparing and Presenting Proposals: Initial Questions
What?
Where?
Proposed action, policy, programme, strategy,
product,, service,, technology.
p
gy
Location market,
Location,
market social and regulatory conditions.
conditions
Who?
Champion, owners, sponsors, team, suppliers,
approval bodies, stakeholders.
Why?
Mitigation and national development benefits,
financial, social, environmental returns, market
and replication potential,
potential sustainability.
sustainability
How?
Current status
status, milestones
milestones, metrics
metrics, schedule
schedule, costs,
costs
revenues, grants, loans, investment.
To Whom?: Estimated rate of return
Type of funding
Negative or zero
Grants and subsidies
Zero to between 5 and 7
per cent
Donors and investors who consider
social
i l and
d environmental
i
t l returns
t
as
well as financial ones
Over
O
e 5–7
5 pe
per cent
ce t
Specialized lender-investor-donors
who see the blended value potential
of investments are likely targets
Above 10 per cent
Private-sector investors and lenders
Experiences and lessons learned:
Experiences and lessons learned:
Addressing specific project preparation needs at the sub‐regional and national levels
ll l
• Specific capacity‐building needs for project preparation exist at the sub‐
regional and national level in terms of enabling environments, types of g
g
, yp
projects, sectors and technologies and funding opportunities.
Address the financial structure at an early stage of preparation
dd
h fi
i l
l
f
i
• The opportunities for reaching financial closure of a project are substantially increased by paying attention to the financial structure of the y
yp y g
project at an early stage of project preparation, for example, by considering the role of guarantees, grants, loans and tax incentives. • Additional considerations over the pure financial return of the project, Additional considerations over the pure financial return of the project
such as economic, environmental and social benefits, should also be assessed and explained.
Experiences and lessons learned:
No single formula for preparing successful proposals…
• …however there are common ingredients that a well‐prepared proposals contain. Understanding and demonstrating these ingredients will increase the chance of a project success.
• The financing of the project requires careful thought and analysis, as there is no single solution that fits all projects. A project proposal targeted at public funding has to satisfy different requirements from a project proposal targeted at private investors.
Project preparation proved to be challenging
• Project preparation proves to be challenging for many project developers in developing countries.
• Determining bankability ‐ that is, whether financial providers will support a project ‐ is just one in a long series of steps leading to a closed deal. A project’s bankability can be determined only after establishing its feasibility in terms of social, economic, financial, technical, environmental and admin factors. • Project development involves feasibility and pre‐feasibility studies to assess these factors, however, these studies need to be preceded by a project’s purpose, initial design, and an Action Plan. These steps are often preceded by legal and regulatory reforms in the relevant sector and by policy reforms.
f
i th
l
t
t
db
li
f
Prepare a base case for NAMA with a view to enhance understanding of the possible concepts
Brainstorm on the different types of NAMAs and on how they can be supported in the following steps:
supported in the following steps:
1.
2.
•
•
•
•
•
3.
Groups will be distributed a different types of NAMAs,
p
yp
,
Groups will develop the base case for the different types of NAMAs trying to address the following questions:
Wh t?
What?
Where?
Who?
How?
Why?
Each of the groups will have up to five minutes to present the results of the exercise to a expertise panel who will react to the findings and identify strengths and gaps.
identify strengths and gaps.
Thank you for your attention.