Globalization of Low-Carbon Technologies

Transcription

1 Globalization of Low-Carbon Technologies

2 Venkatachalam Anbumozhi Kaliappa Kalirajan Editors Globalization of Low-Carbon Technologies The Impact of the Paris Agreement 123

3 Editors Venkatachalam Anbumozhi Economic Research Institute for ASEAN and East Asia Jakarta Indonesia Kaliappa Kalirajan Crawford School of Public Policy Australian National University Canberra, ACT Australia ISBN ISBN (ebook) DOI / Library of Congress Control Number: Springer Nature Singapore Pte Ltd This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore , Singapore

4 Foreword The Presidents and Prime Ministers who gathered in Paris for the Conference of Parties (COP21) in December 2015 witnessed palpable enthusiasm, collective effort, and notably unwavering optimism to tackle climate change in what the world believes is such a defining moment. Toward this, the submissions of Intended Nationally Determined Contributions (INDC) by individual countries, declaring and ratifying proposed actions for a new global agreement to reduce carbon emissions, have emerged as a significant milestone in the entire spectrum of sustainable development. The Paris Agreement clearly and strongly signaled to the energy sector that a transition to a low-carbon economy is now an irreversible trend. Decarbonizing energy systems by the second half of the century is a common objective for all INDC. Advanced economies must face the challenge of unlocking the long-lived, high-emission infrastructure, most of which need to be replaced or remodeled for a low-carbon future by On the other hand, the emerging economies of Asia face a different challenge. With the expected continued and rapid growth in energy demand, a new paradigm of economic development one that decouples economic growth from greenhouse gas emissions to more efficient use of energy and low-carbon energy supply is needed. Hence, increasing access to the new low-carbon technologies by making them cost effective to meet the INDC targets becomes crucial. It is in this context that the Economic Research Institute for the ASEAN and East Asia (ERIA) has initiated a project on Globalisation of Low-Carbon Technologies that aims to: Identify the key to low-carbon technologies that can significantly influence the INDC targets in the short and medium terms. Assess the cost of transition to a low-carbon energy future by 2030 under the INDC framework. Review a regional technology cooperation that could accelerate investments on a scale required to achieve the INDC targets. v

5 vi Foreword This book has emanated from the research papers commissioned under the project and discussed in two technical workshops arranged by ERIA. This project brought together leading energy and economic experts from the region, assessed country INDC, generated common insights on technology needs and weighed deployment paths, analyzed policy implications, and identified action plans, all of which are captured in this book. One important empirical finding is that energy-related emissions have slowed down because of adaptation of new low-carbon technologies; however, the right investments in the sub-sector are necessary. The key prerequisites to successfully achieve INDC targets are to ramp up globalization efforts, regularly review relevant and related policies, and make coordinated efforts at the regional level in tracking the progress of low-carbon technology deployment to meet the 2030 targets. One important empirical finding is that energy-related emissions have slowed down because of adaptation of new low-carbon technologies; however, the right investments in the sub-sector are necessary. The key prerequisites to successfully achieve INDC targets are to ramp up globalization efforts, regularly review relevant and related policies, and make coordinated efforts at the regional level in tracking the progress of low-carbon technology deployment to meet the 2030 targets. This book is part of ERIA s efforts to produce knowledge products to promote sustainable development, one of our three priority themes. I am confident that this publication will contribute to energy policy development and analytical understanding on low-carbon technology systems where new insights are urgently needed from the perspective of the Paris Agreement. I hope this book will also help countries in the ASEAN region and East Asia to set up and implement robust actions plans on INDC and sustainably manage their critical energy resources for the long-term development of their people. October 2017 Hidetoshi Nishimura President Economic Research Institute for ASEAN and East Asia

6 Contents 1 Paris Agreement and Globalization of Low-Carbon Technologies: What s Next for Asia?... 1 Venkatachalam Anbumozhi and Kaliappa Kalirajan Part I INDC and Low-Carbon Technology Deployment Scenarios: Regional Analysis 2 INDC and Low-Carbon Technology Deployment Scenarios: China Yuezhong Zhu and Jianguo Liu 3 INDC and Low-Carbon Technology Deployment Scenarios: India Ritu Mathur and Manish Kumar Shrivastava 4 INDC and Low-Carbon Technology Deployment Scenarios: Indonesia Arianto A. Patunru and Tsani Fauziah Rakhmah 5 INDC and Low-Carbon Technology Deployment Scenarios: Malaysia V.G.R. Chandran Govindaraju 6 INDC and Low-Carbon Technology Deployment Scenarios: Philippines Jessie C. Elauria and Marilyn M. Elauria 7 INDC and Low-Carbon Technology Deployment Scenarios: Thailand Qwanruedee Chotichanathawewong 8 INDC and Low-Carbon Technology Deployment Scenarios: Vietnam Pham Khanh Toan and Nguyen Duc Cuong vii

7 viii Contents 9 INDC and Low-Carbon Technology Deployment Scenarios: Cambodia, Lao PDR and Myanmar Beni Suryadi and Sanjayan Velautham Part II Estimating the Low-Carbon Technology Deployment and Paris Climate Agreement Costs and Meta Policy Analysis: Cross Country Learning 10 Estimating the Low-Carbon Technology Deployment Costs and INDC Targets Sivanappan Kumar, Md. Anisuzaman and Pallavi Das 11 INDC Costs and Experiences in Removing Low-Carbon Technology Barriers: Japan Jusen Asuka 12 INDC Costs and Experiences in Removing Low-Carbon Technology Barriers: New Zealand Douglas Hill 13 INDC Costs and Experiences in Removing Low-Carbon Technology Barriers: Australia Gaminiratne Wijesekere and Arif Syed Part III Globalization of Low-Carbon Technologies for Achieving the Paris Climate Agreement: Market and Non-Market Forces 14 Regional Cooperation in Renewable Energy Trade: Prospects and Constraints Kaliappa Kalirajan and Yichang Liu 15 Regulatory Instruments and the Diffusion of Low-Carbon Technologies in the European Union Matthias Helble and Adam Majoe 16 World Bank Experience in Low-Carbon Investments and the Role of Carbon Pricing in China Govinda R. Timilsina, Jing Cao and Mun Ho 17 Establishing a Low-Carbon Technology Finance Mechanism: Asian Development Bank Experiences on Climate Technology Finance Center Lingshui Mo, Yongping Zhai and Xuedu Lu Country Level Analysis on the Cost of Low-Carbon Technologies Appendix A: Cambodia

8 Contents ix Appendix B: China Appendix C: India Appendix D: Indonesia Appendix E: Malaysia Appendix F: Philippines Appendix G: Thailand Appendix H: Vietnam Index

9 About the Editors Venkatachalam Anbumozhi is a Senior Economist at the Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia. His previous positions include Capacity Building Specialist and Senior Fellow at Asian Development Bank Institute and Assistant Professor at the University of Tokyo. A distinguished fellow of Asia Pacific Rim University (APRU) Forum on Development and Environment, he also advised ADB, JICA, JBIC, and UNESCAP projects on sustainable development. He has published several books, authored numerous research articles, and produced many project reports on natural resource management, climate friendly infrastructure design, and private sector participation in green growth. Anbumozhi was invited as a member of the APEC Expert Panel on Green Climate Finance and the ASEAN Panel for promoting climate-resilient growth. He has taught resource management, international cooperation, and development finance at the University of Tokyo and has speaking engagements at some of the leading international organizations. He obtained his Ph.D. from the University of Tokyo. Kaliappa Kalirajan is a Professor in the Crawford School of Public Policy at the Australian National University, Australia. He is also a Visiting Professor at the Madras School of Economics, India, and International University of Japan. His areas of major interest include macroeconomic and trade policies, sources of growth, regional cooperation in low-carbon energy systems, and technology issues in emerging Asian countries. He has 150 publications in those areas in refereed academic and policy journals. He has authored and edited 15 books. He is currently serving on the editorial board of the following journals: Journal of Asian Economics; Agricultural Economics; Australian Journal of Agricultural and Resource Economics; The Developing Economies; The Journal of Applied Economic Research; Journal of Social and Economic Development; and Asia and the Pacific Policies Studies. He has been a consultant to different national and international organizations from time to time. xi