SCP and Climate Change - JICA s Cases- DAC-UNEP Workshop on Sustainable Consumption and Production for Development

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1 SCP and Climate Change - JICA s Cases- DAC-UNEP Workshop on Sustainable Consumption and Production for Development Tomonori SUDO, Ph.D Office for Climate Change Japan International Cooperation Agency (JICA)

2 Facts & Figures of JICA Staff: 1,664 staff. They are supplemented at any one time by thousands of Japanese experts and young and senior volunteers on both short-term and long-term contracts. Operational Volume: It is the world s largest bilateral development assistance agency with a size of estimated $10.3 billion dollars. Comparison with other Major Donor Agencies World Bank Asian Development Bank USAID New JICA Number of Staff 8,600 Volume of Operation US$19,634mil Number of Staff 2,443 Volume of Operation US$6,851mil Number of Staff 2,227 Volume of Operation US$3,976mil Number of Staff 1,664 Volume of Operation* Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end) *estimated based on FY2008 budget (full year) US$10,280mil

3 Development Agenda and Climate Change - Toward Low Carbon Society Climate Change Secure Developmental benefit Use of fossil fuels =Increasing GHG Emission Toward Low Carbon Society Economic Development Forest Conservation Energy Urban Development Rural Development Biodiversity Transport Education Agriculture Water Resource Management Industrialization Waste management Health & Sanitation Poverty Environmental SD Economic SD Social SD

4 Climate change benefit as co-benefits of development Cooperation for Sustainable Development from various levels Donor s Assistance Financial Assistance Technical Assistance Generating Developmental benefit Development Plan Sector Policies Programs Projects Long-term vision GHG Reduction as co-benefit Integrate Climate Change Concerns into Development Actions

5 Toward Low-Carbon Development Hypothesis: Society with high resource productivity Low Carbon Society Seeking possible style on production and consumption, Instead of consumeristic development. It is fundamentally recognized that increase of energy consumption and GHG emission in the lifecycle has been led by Increase of production/consumption of goods, that is, resource saving and low carbon development are deeply related. Breakdown of Kaya Identity in resource consumption aspect GDP Energy Consumption CO 2 Emission CO 2 Emission=POP POP GDP Energy Consumption CO 2 Emission Resource Cons Energy Cons CO 2 Emission = GDP GDP Resource Cons Energy Cons Identification of factors to increase CO 2 Emission by economic growth and its forecast Design of Social Economic system with high resource productivity Quantification of possible reduction of energy consumption by recycle use and/or cascade use of resource Possibility of CO 2 Emission Reduction by alternative resource use (esp. focus on Renewable resources) Factor analysis of CO 2 Emission focus on resource consumption Analysis on possible Leapfrogging development path for dev ing countries Possibility on Compact city, Rental/Lease society Service economy, use of ICT Resource recovery from waste and stocks International division of labour and International material cycle Alternate fossil fuels by use of biomass, energy from waste 5

6 JICA s approach Policy Level Institution Level Program/Project Level

7 JICA s approach Top Down approach (Policy formation & implementation) Financial Assistance Towards Sustainable Consumption & Production Technical Cooperation Bottom-up effort (Program/Project activities)

8 To generate co-benefit <Sample case> Increase of Power Demand, Rural Electrifications Developmen t Objectives Needs to Increase Power supply Construction of New Power Stations Policy Project New Technology + Project ODA (Finance and T/A) Implementation Developmental benefit Increase of power supply GHG Reduction Could it reduce GHG? Introduce climate friendly technology Mitigation of Climate Change (Global Benefit) Co-benefit!

9 Case program (1): Top-down approach (Policy formation & implementation) Example of the Policy Matrix formulated based on the policy dialogue Pillar 1: Mitigation Pillar 2: Adaptation 1.1: LULUCF (Land Use, Land Use Change and Forestry) -Reforestation -REDD -Forest management 1.2: Energy -Power plant -Industry, domestic and commercial -Others 2.1: Water Resource Management 2.2: Water Supply and Sanitation 2.3: Agriculture Pillar 3: Cross-cutting Issues 3.1:Understandin g the Impact of Climate Change 3.2: Mainstreaming Climate Change in the National Development Program 3.3: CDM 3.4: Co-Benefit 3.5: Fiscal Incentive 3.6: Early Warning System Coordination among line ministries Monitor, Review and advice Partner country s Government Steering Committee Donors Financial Assistance (General Budget Support, Project Loans, Grant Assistance), Technical Cooperation

10 Case program(2) Demand side approach <Promotion of Electricity Energy Efficiency Project> Project objective: To build sufficient institutional capacity in Thailand s power sector, and energy-related private sector, so as to deliver cost-effective energy services throughout its economy, To pursue policies and implement actions which would lead to the development, manufacture and adoption of energy efficient equipment and processes within Thailand. Impact of the Project Approx 4,160 GWh of total energy consumption were saved Over 3 million t-co2 was reduced. (During 8years project period) <The Project on the Practical Energy Management Training Center> Management system for Practical Energy Management Training Center State examination system for PRE Pre-examination training courses Implementing structure for pre-exam training PRE support system US$25m US$9.5m US$5.4m JICA WB/GEF Gov of Australia Co-finance EGAT DSMO Implement Demand Side Management Program -High energy efficient home appliances, light -Green Building Program -Thermal Energy Storage -ESCO

11 Case project(3) Production side approach <Viet Nam: EE &RE promoting project (EEREP)> Current Situation of Energy Sector in Viet Nam Rapid Increase of Energy consumption since 1986 Appx 8% of GDP growth (Energy consumption marked 6 times from 1990 to 2006 due to its Economic growth) This may continue because of its rapid economic growth (Energy consumption in 2025 is expected to be 5 times larger than that of 2006) k TOE 30,000 25,000 20,000 15,000 Trend of Energy Consumption in Viet Nam ( ) 運輸分野 Transport 産業分野 Industry その他 Others 6 倍 1990 年 : 4 k TOE 2006 年 : 25 k TOE k TOE 140, , ,000 80,000 60,000 Estimated Energy consumption in Viet Nam ( ) 運輸分野 Transport 産業分野 Industry その他 Others BAU case 5 倍 2006 年 :25k TOE 2025 年 :118k TOE 10,000 40,000 5,000 20,000 年 年 年 (Ref)JICA Survey on National Energy Master Plan

12 Case program(3) Production side approach <Viet Nam: EE &RE promoting project (EEREP)> Issues on promotion of EE/RE in Viet Nam =Lack of institution, awareness, finance and capacity JICA assistances (Institutional development, awareness raising, financial assistance & capacity development) EEREP Mid-Long term financial assistance in EE/RE Awareness raising to private sectors EE master Plan Institutional development CD through Universities CD for EE Center ODA Loans TC CD for VDB Development of capacity for Loan appraisal of VDB Special Program responding Climate Change(SP- RCC) Assistance for Institutional development such as legal framework for EE, preparation of RE master plan

13 Outline of EEREP Objective:Assist implementation & promotion of EE/RE by private sector in Viet Nam by providing Mid-Long term Finance JICA EEREP Gov of Vietnam ODA Loan (JPY4billion) Repayment Support for update Vietnam Dev Bank (VDB) List of subprojects VDB Branch EE Center Consulting services List of EE equipments Lending Repayment Institute of Energy Support for CDM Project identification MONRE (DNA) CDM CDM 事業 CDM activity Target enterprises =SOEs, SMEs investing in EE/RE project TC CD of VDB for appraisal MOCI Awareness raising (Seminars) EE Diagnosis TC EEMP

14 Conclusion Green Growth/Economy and SCP can be achieved in a same way. Approach through development cooperation is a key for implementation of SCP. Paris Declaration & Accra Agenda for Action are fundamental concepts Ownership of developing countries Alignment (Development policy, Country system-green public expenditure & Green Procurement) Capacity Development Integration of SCP into development policy is needed. Well-coordinated Policies (Top-down) & Programms/projects (Bottom-up) can change both consumption & production patterns in sustainable manner.