+ 2°C

Renewable Energy and

Energy Efficiency in
Developing Countries:
Contributions to Reducing
Global Emissions

Third Report | 2017

A digital copy of this report is available at 1gigatoncoalition.org

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 + 2°C

Renewable Energy and

Energy Efficiency in
Developing Countries:
Contributions to Reducing
Global Emissions

Third Report | 2017

ACKNOWLEDGEMENTS
LEAD AUTHORS Maria van Veldhuizen (Renewable Energy and Energy Efficiency
Yale University: Angel Hsu, Carlin Rosengarten, Partnership (REEEP)), Gunnar Wegner (Energizing Development and
Amy Weinfurter, Yihao Xie Climate Mitigation (EnDev)), Elke Westenberger (Moroccan Climate
REN21: Evan Musolino, Hannah E. Murdock Change Competence Centre (4C Maroc)), Laura Williamson (REN21),
Peter Wright (Sustainable Energy for All (SEforALL))

REVIEWERS Data gathering

Niklas Höhne, Markus Hagemann, and Takeshi Kuramochi Markus Kurdziel (IKI), Sarah Leitner (IKI), Karoline Teien Blystad
(NewClimate Institute), Philip Drost (UN Environment), (Norfund), Lucie Bernatkova (EIB), Cyrille Arnould (EIB), Aglaé Touchard-
Nathan Borgford-Parnell and Hanxiang Cong (Institute for Le Drain (EIB), Martina Jung (KfW), Milena Gonzalez Vasquez (GEF),
Governance and Sustainable Development), Zhao Xiusheng David Elrie Rodgers (GEF), Ichiro Sato (JICA), Yoji Ishii (JICA)
(Tsinghua University, China)
THOMSON REUTERS
COUNTRY, INITIATIVE AND DATA CONTRIBUTORS A contribution from Thomson Reuters report “Global 250
Case study support: Greenhouse Gas Emitters: A New Business Logic” is included in
We thank and acknowledge following individuals for their valuable chapter 3. Lead Authors:
assistance providing consultation, feedback and information to David Lubin, Constellation Research and Technology; John
inform the case studies. Moorhead, BSD Consulting; Timothy Nixon, Thomson Reuters
Jaime Acuña (Univalle),Adedoyin Adeleke (Centre for Petroleum,
Energy Economics and Law, University of Ibadan), Ayooluwa Adewole The authors would like to thank and acknowledge the important
(Centre for Petroleum, Energy Economics and Law, University of contributions of Chris Mangieri, Dan Esty and Jay Emerson of Yale
Ibadan), Godwin Aigbokhan (Renewable Energy Association of University and Constellation Research and Technology.
Nigeria (REAN)), Habiba Ali (SOSAI Renewable Energies Company), Important data and analytics support was provided by Frank Schilder,
Centro Regional de Producción más Limpia (CRPML), Corporación Thomson Reuters Research & Development, Adam Baron from
Autónoma Regional del Valle del Cauca (CVC), Tolu Fakunle (Centre Thomson Reuters Content Analytics, and Ian van der Vlugt from CDP.
for Petroleum, Energy Economics and Law, University of Ibadan),
Eitan Hochster (Lumos Global), Janet Kajara (Kampala Capital PROJECT MANAGEMENT AND COORDINATION
City Authority (KCCA)), Shehu Ibrahim Khaleel (Renewable Energy Zitouni Ould- Dada (UN Environment),
Resources D ­ evelopment Initiatives (RENDANET)), Edison Masereka Rashmi Jawahar Ganesh (UN Environment)
(Kampala Capital City Authority (KCCA)), Nolbert Muhumuza (Awuma
Biomass), Tanya Müller Garcia (Secretary of Environment, Mexico REN21
City), Eleth ­Nakazzi (Kampala Capital City Authority (KCCA)), Ines The 1 Gigaton Coalition would like to thank and acknowledge the
Restrepo-Tarquino (Univalle), Patricia Ugono (Solynta), Uvie Ugono invaluable assistance of REN21, namely: Hannah E. Murdock for
(Solynta), Paola Andrea Vásquez (GEADES-UAO), Sandra Vásquez research coordination, and Linh H. Nguyen for research support.
(El Castillo)

Multistakeholder partnerships DESIGN AND LAYOUT

Patrick Blake (en.lighten, U4E), Callum Grieve (Sustainable Energy Weeks.de Webeagentur GmbH
for All (SEforALL)), Martin Hiller (Renewable Energy and Energy
Efficiency Partnership (REEEP)), Irma Juskenaite (Climate Technology
Centre and Network (CTCN)), Tatiana Kondruchina (Climate and
Clean Air Coalition (CCAC)), Celia Martinez (District Energy in Cities
Initiative), Wei-Shiuen Ng (International Transport Forum, OECD),
Eva Kelly Oberender (Renewable Energy and Energy Efficiency
Partnership (REEEP)), Ellen Paton (UK International Climate Fund
(ICF)), Quinn Reifmesser (Renewable Energy and Energy Efficiency
Partnership (REEEP)), Andrea Risotto (NDC Partnership), Nora
Steurer (The Global Alliance for Buildings and Construction (GABC)),
Jukka Uosukainen (Climate Technology Centre and Network (CTCN)),
 + 2°C

TABLE OF CONTENTS
ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
KEY MESSAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2 IN ENERGY EFFICIENCY AND RENEWABLE ENERGY

DEVELOPING COUNTRIES’ EFFORTS AND ACHIEVEMENTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2.1 POLICY DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.1.1 Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.1.2 Policy instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3 NON-STATE AND SUBNATIONAL CONTRIBUTIONS TO RENEWABLE ENERGY AND ENERGY EFFICIENCY . . . . . . 20

3.1 CASE STUDIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.2 EXCERPT FROM GLOBAL 250 GREENHOUSE GAS EMITTERS: A NEW BUSINESS LOGIC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

4 1.5- AND 2- DEGREE COMPATIBILITY: A NEW APPROACH TO CLIMATE ACCOUNTING . . . . . . . . . . . . . . . . . . . . . . . . . . 37

4.1 DEVELOPING 1.5- AND 2- DEGREE COMPATABILITY CONDITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

4.2 COMPATABILITY TABLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

4.3 PROJECT-LEVEL COMPATABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

5 DATABASE ASSESSMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

5.1 AGGREGATED IMPACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

5.2 SELECTED BILATERAL INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

5.3 SELECTED MULTILATERAL INITIATIVES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.3.1 Multistakeholder partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

6 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

A OF MITIGATION IMPACT CALCULATIONS

ANNEX I: DETAILED DESCRIPTION
. . . . . . . . . . . . . . . . . . 77

References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Acronyms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Impressum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

5
 FOREWORD + 2°C

Even if the pledges in the Paris Agreement on Climate Change are

implemented, we will still not reduce greenhouse gas emissions
enough to meet the goals. The UN Environment Emissions Gap
Report 2017 states that for the 2°C goal, this shortfall could be
11 to 13.5 gigatonnes of carbon dioxide equivalent. For the 1.5°C
goal, it could be as much as 16 to 19 gigatonnes. We urgently need
more ambitious action to close these gaps. So, this latest 1 Gigaton
Coalition Report helps to focus those efforts by quantifying the
progress secured through renewable energy and energy efficiency.

Electricity touches almost every aspect of our lives, yet nearly

a quarter of the population still lacks access to safe, clean and
affordable energy. Around the world, people continue to seek
less polluting options for everyday needs like lighting, heating,
H.E. Børge Brende Erik Solheim water, cooking and sanitation. It should be no surprise then that
Minister of Foreign Affairs UN Environment Executive
renewable power capacity is growing faster than all fossil fuels
Norway Director and Under-Secretary-
General of the United Nations combined, with a record increase of about 9% from 2015 to 2016.
Particularly, when bi-products include better health, education,
security and economic growth.

Take cities, which are responsible for 75% of global greenhouse gas emissions. They can also be a big part of the solution, by adopting
to energy efficient buildings, electric transport, cycle schemes and waste conversion. For example, in New Delhi, India, the health of
local communities is severely affected by growing mountains of waste being dumped in open spaces. The city and private sector are
tackling this by investing in waste-to-energy-plants. These reduce toxic emissions and transform waste into electricity. The plant’s
community center offers employment and artisan training to about 200 local women. For Badru Nisha, this income has enabled
her to save 70,000 rupees (US $1,100) and build a house for relatives in Bihar state. This program helps women build their skills
and confidence, and provides them with some financial security and independence. This is just one of many stories inspiring local
governments, mayors, businesses and civil society to join forces for significant environmental, economic and public health benefits.

This report comes at a critical moment to support the growing number of non-state actors showing leadership to deliver the Paris
Agreement. We hope it will motivate donors, initiatives and countries to build on their achievements, while inspiring more public and
private sector stakeholders to join this global effort.

6
KEY FINDINGS

R INTERNATIONALLY SUPPORTED RENEWABLE ENERGY AND ENERGY EFFICIENCY

PROJECTS implemented in developing countries between 2005 and 2016 are projected
to reduce greenhouse gas emissions by 0.6 Gigatons of carbon dioxide (GtCO2 ) annually
in 2020. When scaled up using international climate financing commitments, these
efforts could deliver 1.4 GtCO2 in annual reductions by 2020.

R INTERNATIONAL SUPPORT FOR INVESTMENTS IN RENEWABLE ENERGY AND ENERGY

EFFICIENCY IS VITAL FOR DECARBONIZATION, as this support provides key resources
and creates enabling environments in regions critical to the global climate future.
International assistance accounts for only 10% of all global renewable energy and energy
efficiency activities, yet it has extensive impact for future climate mitigation.

R DATA AVAILABILITY AND INFORMATION SHARING REMAIN A PERENNIAL CHALLENGE,

one that is preventing countries and supporting organizations from systematically evaluating
their work’s impact, although renewable energy and energy efficiency projects and policies are
growing in developing countries. The 1 Gigaton Coalition has developed a database of about 600
internationally supported projects implemented in developing countries between 2005 and 2016.

R EVALUATING PROJECTS, POLICIES, AND SECTORS’ COMPATIBILITY WITH GLOBAL

1.5°C AND 2°C CLIMATE GOALS IS ESSENTIAL TO LINK ACTIONS WITH LONG-
TERM OBJECTIVES. This new method would enable bilateral and multilateral development
organizations to measure the long-term impacts of supported projects.

R NON-STATE AND SUBNATIONAL ACTORS HAVE TAKEN ON A LEADING ROLE IN

SCALING UP CLIMATE ACTION. The case studies in this report show that low-carbon
forms of development – particularly city-based public private partnerships – generate multiple
co-benefits. These include improved environmental and human health, economic stimulus
and employment creation, enhanced gender equality, and other societal gains that support
the 2030 Agenda for Sustainable Development.
EXECUTIVE SUMMARY
Developing countries are achieving low-cost emissions reductions through renewable energy
(RE) and energy efficiency (EE) projects and initiatives. The focus of this report is to evaluate
the impact of these projects in terms of measurable greenhouse gas emissions’ reductions to
help close the emissions gap needed to meet the 2°C climate goal.

Greenhouse gas (GHG) emissions reductions created by a Assessing an initiative’s emissions mitigation impact has
sample of 273 internationally supported RE and EE projects inherent drawbacks that must be overcome in order to
in developing countries implemented between 2005 and evaluate a project, policy, or sector in light of international
2016 amount to approximately 0.3 gigatons of carbon climate goals. Emissions reductions estimates, even when
dioxide (GtCO2) annually by 2020. Of the analysed 273 projects, accurate, do not explain whether the described outcomes are
197 are RE, 62 are EE, and 14 are both RE and EE. These efforts compatible with global climate goals. This report takes steps to
reduce emissions by displacing fossil fuel energy production with overcome this challenge, by developing criteria intended to assess
a sector’s compatibility with global climate goals. It also shows how
clean energy technologies and by conserving energy in industry,
these compatibility conditions can be applied to RE and EE projects,
buildings, and transportation. The analysed sample’s RE projects
outlining a conceptual framework for future analysis.
contribute approximately 0.084 GtCO2, EE projects contribute
0.113 GtCO2 and RE/EE projects contribute 0.059 GtCO2 to the Criteria for sector-level compatibility with 1.5°C and 2°C
total emissions reductions. These projects received direct foreign goals were developed to evaluate emission savings from
support totaling US $32 billion. This analysis builds upon the projects (Tables 3.1 - 3.15). The sectoral criteria are displayed
second 1 Gt Coalition report, which examined data from 224 in compatibility tables, with each table listing 1.5°C- and
projects (see Annex I for more details). 2°C-compatibility conditions drawn largely from the International
Energy Agency’s (IEA) Energy Technology Perspectives (ETP)
Reductions in GHG emissions resulting from all internationally 2017 report and its 2°C Scenario (2DS) and Beyond 2°C Scenario
supported RE and EE projects in developing countries (B2DS). Schematics (Figures 7  – 10) demonstrate how the
implemented between 2005 and 2016 could be 0.6 GtCO2 sectoral compatibility criteria could be applied at the project,
per year in 2020. This estimate is determined by scaling up the firm, or policy level to identify projects considered 1.5°C- or
analysed sample’s emissions reductions to a global level using the 2°C-compatible. Two actual projects, selected from this report’s
total bilateral and multilateral support for RE and EE from 2005 to RE and EE database, are used as proofs of concept. Information
2016 (US $76 billion). These international investments create crucial sharing and data availability prove to be key challenges to
enabling conditions in developing broadening the application of this approach.
countries and emerging economies,
where there are significant barriers to Figure ES: Emission reduction from renewable energy and energy efficiency projects by 2020
private RE and EE investment.
GHG emissions reductions from Reductions from 273
supported projects Reductions by all Reductions
internationally supported RE and implemented during supported projects if support scaled up to
2005 – 2016 2005 - 2016 US $25 billion annually
EE projects could be on the order GtCO2e analyzed in this report ($76 billion in total support) through 2020
of 1.4 GtCO2e per year by 2020 if
committed public finance for climate 0.258 GtCO e 2

0.6 GtCO e
mitigation is used to scale up these
activities. Developed countries agreed 2

in 2010 to mobilize US $100 billion

1.4 GtCO e
per year by 2020 to help developing
countries adapt to the impacts of
2
climate change and reduce their
emissions. To calculate the 1.4 GtCO2e
estimate, it is assumed that a quarter of
the US $100 billion is public mitigation
finance and deployed in the same way
as for the 273 analysed projects.
 EXECUTIVE SUMMARY  g

City governments are increasingly collaborating with • MEXICO CITY’S Sustainable Buildings Certification Programme,
the private sector to address common challenges related developed and implemented in partnership with the local
to climate change and sustainable development. The construction and building industry, covers 8,220 square meters
Intergovernmental Panel on Climate Change (IPCC) has indicated of floor area across 65 buildings and has reduced 116,789 tons of
that achieving a 1.5°C- or 2°C-compatible future is a very carbon dioxide (CO2 ) emissions, saved 133 million kilowatt-hours
challenging task, yet almost all the technologies needed to build (kWh) of electricity and 1,735,356 cubic meters of potable water,
this future are commercially available today. This report shows and created 68 new jobs between 2009 and 2017.
that many countries are acting to reduce emissions through RE
and EE programmes, and that when policies are well-designed,
both local and global communities benefit. The six case studies
presented in this report describe the social, economic, and
environmental benefits that RE and EE programmes bring to the
localities where they are implemented. They highlight innovative
initiatives implemented in a diverse set of cities and regions:
• NEW DELHI’S municipal government has partnered with
Infrastructure Leasing and Financial Services Environment
(IL&FS Environment) to build a waste-to-energy plant that will
save approximately 8.2 million tons of greenhouse gas emissions
over its 25-year lifespan, while reducing the landfill’s area and air
and water pollution. The project helps transition former waste-
pickers to new jobs, directly hiring 70 people at the new plant,
and has created a community center that provides support and
job training to approximately 200 local women. These case studies demonstrate the feasibility and benefits
• NANJING, China worked with the electric vehicle industry to of a low-carbon future through the various RE and EE
add 4,300 electric vehicles to its streets between 2014 and 2015. activities undertaken in cities in collaboration with private
This transition has helped the city reduce emissions by 246,000 sector groups. Expanding this type of public-private sector
tons of carbon dioxide equivalent (CO2e) in 2014, while saving engagement would harness expertise, funding, technology, and
over US $71 million in lower energy bills. data from both arenas to help overcome barriers to action and
accelerate the pace of climate action.
• In the industrial VALLE DEL CAUCA corridor of Colombia, The
Women’s Cleaner Production Network developed action plans to Governments and non-state actors will gather at COP 23 in
reduce industrial pollution and address climate change in small November to discern a path forward for implementing the
and medium-sized enterprises. The initiative has created a host of Paris Agreement’s central provisions. Data sources needed to
benefits, including a 110 percent increase in enterprise production evaluate progress towards achieving the 1.5°C or 2°C climate goals
efficiency and a new residential solar installation program. are key points under discussion. This report provides pertinent
information and evidence showing how internationally supported
• In LAGOS, and in many other Nigerian cities, private companies
RE and EE projects and initiatives implemented in developing
are piloting new approaches to make solar energy more accessible
countries are contributing to narrowing the emissions gap – the
and affordable. A partnership between a solar start-up and local
difference between the status quo and the 1.5°C and 2°C goals.
telecommunications provider has brought solar power to 50,000
homes, clinics, schools, and businesses, benefiting more than The report’s case studies show the social and economic co-
250,000 people and creating 450 new jobs. benefits associated with these emissions reductions, particularly
when city governments partner with private companies to enact
• Uganda’s capital city, KAMPALA , has partnered with businesses emissions savings programs. These initiatives have great potential
to scale up an array of clean cooking technology initiatives, to motivate countries and non-state actors to build new channels
installing 64 improved eco-stoves in 15 public schools, for collaboration, to raise their ambitions, and scale up their
constructing biodigesters in 10 public schools, and funding
efforts. The 1 Gigaton Coalition will continue to promote RE and
companies that train women and youth to produce low-carbon
EE efforts, evaluate their emissions impacts, and show how they
briquettes from organic waste.
contribute to achieving both international climate objectives and
Sustainable Development Goals (SDGs).

9
CHAPTER 1

1
INTRODUCTION

Energy-related carbon dioxide (CO2) emissions have stabilized, showing no growth in 2016 for
the third year in a row, yet global energy consumption is predicted to increase 48 percent by
2040.1 Developing countries, where rapid economic growth is the main driver of rising energy
demand, will account for the vast majority of this future increase in energy consumption.1, 2
To meet the Paris Agreement’s goal to limit global temperature to no more than 2°C, and aim
to hold warming to 1.5°C, global emissions must peak around 2020 and then rapidly decline
in the following three decades, approaching zero by 2050.3 The emissions gap, however, has
widened from last year’s estimates. The 2017 United Nations Environment Programme (UN
Environment) Emissions Gap Report finds that, by 2030, there will be a gap of 11 – 13.5 GtCO2e
between countries’ Paris climate pledges and the goal to limit global temperature rise to 2°C.
The gap widens to 16 – 19 GtCO2e when considering the 1.5°C goal.4

New Delhi, India

New Delhi‘s waste-

to-energy initiatives
convert more than
50 percent of the
city‘s daily waste
into energy and fuel.

R Details see page 22

 INTRODUCTION  g

Renewable energy (RE) and energy efficiency (EE) projects in developing countries are crucial
means of narrowing the emissions gap and decarbonzing future energy growth. In 2016,
a record 138.5 gigawatts (GW) of new capacity of RE was installed, mostly in developing
countries and emerging economies, some of which have become key market players.5
Evaluating how RE and EE projects translate to measurable emissions reductions, to closing
the emissions gap, and to creating a 1.5°C or 2°C compatible future is the focus of this report.

The climate imperative is clear: we must act now and with Report’s unconditional NDC scenarios and its 2°C trajectory, and
ambition to decarbonize human activities in order to meet a 19 GtCO2e gap between the NDCs and 1.5°C trajectories.7
global climate goals. The latest climate scenarios produced by
This gap points to an urgent need to increase the ambition,
the world’s leading international scientific bodies show that
scope, and scale of carbon mitigation efforts worldwide. Each
our window to prevent dangerous global warming is rapidly
sector in every nation must lead the way with ambitious actions
narrowing as humanity’s carbon budget – the total amount
to decarbonize, and governments must enact plans and policies
of carbon dioxide that can be emitted for a likely chance of for sharp emissions reductions if we are to meet the 1.5°C or
limiting global temperature rise – diminishes year on year. The 2°C targets. Nearly one-half of lower middle income countries
Intergovernmental Panel on Climate Change (IPCC) found, in (GNI per capita between US $1,006 and $3,955) and one-fourth
its Fifth Assessment Report (2014), that the world will warm by of low income countries (GNI per capita less than US $1,005)
between 3.7°C to 4.8°C by 2100 if humanity pursues a “business have made RE a primary focus of their NDCs.8 One-third of lower
as usual” pathway. This level of warming, scientists agree, would middle income countries and 19 percent of low-income countries
be disastrous for human civilization. To give us a better than have adopted EE as a main focal instrument in their NDCs.9 Many
66% chance to limit global warming below 2°C – the scientific of these countries lack energy access for the majority of their
community’s agreed upon threshold for what societies could population, suffer from the effects of poor indoor and outdoor
reasonably manage – the IPCC reports that atmospheric CO2 air quality, and are striving to rapidly develop their economies
concentrations cannot exceed 450 ppm by 2100. This limit means to reduce poverty – needs that can be partly addressed through
that the world’s carbon budget through the year 2100 is less than RE and EE efforts. Intergovernmental coordination and support
1,000 Gt CO2e. Considering a 1.5°C limit, our carbon budget falls are key catalysts for the requisite RE and EE initiatives, as
to under 600 Gt CO2e through 2100.6 developed nations transfer expertise, technologies, and funding
UN Environment’s Emissions Gap Report 2017, which focuses on to developing countries to create enabling environments for
the gap between the emissions nations have pledged to reduce carbon-neutral growth. Yet beyond global emissions reduction
and the mitigation needed to meet global temperature goals, goals, what specific targets should nations, sectors, and individual
developed a “likely” (>66% chance of achieving the target) 2°C firms use to guide their actions? How do funding organizations,
warming model under which annual global GHG emissions would policymakers, and implementing groups know at what point their
need to stabilize around 52 GtCO2e through 2020 and then fall operations are compatible with the 1.5°C and 2°C targets?
precipitously to 42 GtCO2e by 2030 and 23 GtCO2e by 2050. The growth in RE and EE projects in developing countries in the last
To have a greater than 50% chance of containing warming to decade demonstrates the potential for these efforts to contribute
1.5°C, the 2017 Gap Report projects a greater drop in annual to global climate mitigation and to narrow the emissions gap. A
emissions, to 36 GtCO2e by 2030 – a significantly lower estimate lack of data and harmonized accounting methodology, however,
than what the 2016 Emissions Gap report suggested. Under have prevented the bilateral and multilateral organizations that
both scenarios annual global emissions appear to go negative – support these efforts from systematically evaluating their impact.
meaning that more carbon is absorbed than produced – by 2100. The 1 Gigaton Coalition supports these organizations’ efforts in
These projections are starkly divergent from baseline business as developing countries, where growth in RE and EE projects have
usual emissions projections as well as scenarios that account for potential to transition economies to low-carbon trajectories. The
the Nationally Determined Contributions (NDCs) that countries Coalition works to build a robust knowledge base and support
pledged in the Paris Agreement. By 2030, there is a 13.5 GtCO2e the development of harmonized GHG accounting methods.
difference between the annual emissions in the 2017 Gap These tools will aid analysis of RE and EE initiatives that are not

11
 CHAPTER 1 INTRODUCTION  g

directly captured in UN Environment’s Emissions Gap Report or OVERVIEW OF THE

in other assessments of global mitigation efforts. Through the
compilation and assessment of developing country RE and EE
1 GIGATON COALITION 2017 REPORT
efforts between countries, partners, and collaborative initiatives, The 1 Gigaton Coalition 2017 report builds upon the first two reports,
the 1 Gigaton Coalition promotes these efforts and strives to further expanding the database of RE and EE projects from developing
measure their contribution to reducing global greenhouse gas countries to calculate the mitigation impact of 273 internationally
emissions reductions. supported projects in developing countries. These projects, including
197 RE, 62 EE, and 14 RE and EE activities, are located in 99 countries
and supported by 12 bilateral funding agencies and 16 multilateral
+ 2°C + 2°C

development banks and partnerships. They are categorized for the

technologies used to replace fossil fuel energy production with clean
energy (i.e., solar, wind, biomass, and hydroelectricity) and reduce
Narrowing the Emissions Gap :
Contributions from Renewable energy energy consumption in the industrial, building, and transport sectors.
renewable energy and and energy efficiency
in developing countries: In total, these projects received US $32 billion in direct foreign support.
energy efficiency activities
contributions to reducing
global emissions
Evaluating RE and EE projects’ mitigation impact is important to
shed light on whether these efforts are reducing global emissions.
First Report | 2015 Second Report

2016 An essential question is whether these efforts lead to long-term

decarbonization or low-carbon pathways that are compatible
with global goals to limit temperature rise to 1.5°C and 2°C. The
1 Gigaton Coalition 2017 report synthesizes a methodological
approach to evaluate the 1.5°C- and 2°C-compatibility of RE and
PREVIOUS 1 GIGATON COALITION REPORTS EE projects, intending to guide bilateral and multilateral partners
and implementing countries in determining which policies,
The 1 Gigaton Coalition has released two reports to date. The
individual projects, and entire sectors are consistent with 1.5°C
1 Gigaton Coalition 2015 report aimed to quantify RE and EE
and 2°C scenarios. Drawing from other research initiatives and
contributions to narrowing the 2020 emissions gap. The 2015
the International Energy Agency’s (IEA) 2017 Energy Technologies
report was the first of its kind to assess and quantify RE and EE
Perspective (ETP) report, this analysis provides criteria for 1.5°C and
projects’ global climate mitigation potential. This analysis used
2°C-compatibility at the sector level and demonstrates how these
a comparison between the IEA World Energy Outlook (WEO)
criteria could be applied to RE and EE projects.
current policy scenarios and a no-policy scenario derived from
Providing real world examples of RE and EE initiatives in developing
the IPCC scenarios database to estimate the energy sector’s total
countries, this report features six in-depth case studies of ongoing
emissions reductions. The analysis found that EE and RE projects
programmes and policies in cities throughout the world. These case
in developing countries could result in emission reductions on
studies demonstrate the compounding benefits to human health,
the order of 4 GtCO2 in 2020, compared to a no-policy baseline
the economy, and environment that result from smartly planned RE
scenario.
and EE efforts. The cases feature collaborative initiatives in which
The 1 Gigaton Coalition 2016 report refined the approach the public sector and private companies work together to develop,
developed in the inaugural 2015 report, expanding the database implement, and scale climate action.
of internationally supported RE and EE projects in developing
This report is organized as follows:
countries from 42 to 224. The larger database includes projects
Chapter 2 provides an overview of the current landscape of RE and
implemented between 2005 and 2015, receiving direct foreign
EE policies in developing countries. Chapter 3 presents six case
support totalling US $28 billion. These projects were estimated
studies that explore RE and EE programmes that engage the private
to reduce GHG emissions by an aggregate 0.116 GtCO2 annually
sector to develop and implement renewable energy and energy
in 2020. Avoided GHG emissions were calculated by multiplying
efficiency activities. The case studies highlight the multiple benefits
the annual energy saved or substituted by a project (determined
these initiatives garner across the various cities and regions where
for RE projects by using the power generation capacity and the
they are implemented. This chapter also includes a discussion by
technology- and country-specific capacity factors and for EE
Thomson Reuters of the emerging low-carbon business paradigm.
projects through a project’s documentation) by country-specific
Chapter 4 describes the 1.5°C- and 2°C-compatibility methods
grid electricity CO2 emission factors. The 2016 report estimated
and applications developed for this report, providing sector-level
that all internationally supported RE and EE projects would
compatibility tables and project-level guidance. Chapter 5 provides
reduce emissions by up to 0.4 GtCO2 annually in 2020, and that if
an assessment of the GHG emissions mitigation from RE and EE
public finance goals for climate mitigation were met, supported
projects in developing countries based on calculations derived from
projects could reduce emissions by 1 GtCO2 per year in 2020.
a project database built for this report. Chapter 6 concludes with
the report’s key implications for policymakers, RE and EE supporting
partners, and climate actors.

12
CHAPTER 2 DE VELOPING COUNTRIES’ EFFORTS AND ACHIE VEMENTS  g

2
DEVELOPING COUNTRIES’ EFFORTS
AND ACHIEVEMENTS IN ENERGY
EFFICIENCY AND RENEWABLE ENERGY
This chapter describes the role of policymakers in promoting renewable energy and
energy efficiency initiatives in developing countries. Data collected by REN21 – the global,
multistakeholder renewable energy policy network – is used to illustrate the current
status of targets and policies.

Nanjing, China

Nanjing was one of

the fastest adopters
of electric vehicles
and has become an
important hub for
the industry.

R Details see page 26

 CHAPTER 2

2.1 POLICY DEVELOPMENT effectively, may incentivize renewable energy development and
deployment across sectors by increasing the comparative costs of
Renewable energy (RE) and energy efficiency’s (EE) increasingly vital higher-emission technologies. The removal of fossil fuel subsidies
role in the rapid transformation of the energy sectors of industrialized, also may level the financial playing field for energy technologies,
emerging, and developing countries continues to be stimulated in part as fossil fuel subsidies remain significantly higher than subsidies for
by government actions to incentivize new technology development renewables, with estimates of the former being at least more than
and deployment. Policymakers have adopted a mix of policies and twice as high as those for RE. This estimate rises to ten times higher
targets to deploy RE and EE to expand energy access, provide more when the cost of externalities and direct payments are included.
reliable energy services, and meet growing energy demand, while
Developing countries led the way on initiating subsidy reform
often simultaneously seeking to advance research and development
in 2016, with 19 countries adopting some form of reduction or
into more advanced fuels and technologies.
removal. Similarly, by year-end 2016, Group of 20 (G20) and Asia-
Recognizing the complementary nature of RE and EE, at least 103 Pacific Economic Cooperation (APEC) initiatives had led to 50
countries addressed EE and RE in the same government agency, countries committing to phasing out fossil fuel subsidies.
including at least 79 developing and emerging countries, while
an estimated 81 countries had policies or programmes combining
support to both sets of technologies, including approximately 75 2.1.1 TARGETS
developing or emerging countries.
Targets are an important tool used by policymakers to outline
Adopted together, RE and EE can more rapidly help meet national development strategies and encourage investment in EE and
development goals including increasing energy security, enhancing RE technologies. Targets are set in a variety of ways, from all-
industrial competitiveness, reducing pollution and environmental encompassing economy-wide shares of capacity, generation, or
degradation, expanding energy access, and driving economic efficiency, to calling for specific technology deployments or new
growth. This can be achieved through sector-wide planning, such developments in targeted sectors. Similarly, policymakers at all
as China’s 13th Five Year Plan adopted in 2016, which includes levels, from local, to state/provincial, regional, and national, have
specific goals for both RE and EE. adopted targets to outline sector development priorities.
Indirect policy support, including the removal of fossil fuel subsidies Nearly all nations around the world have now adopted RE
and the enactment of carbon pricing mechanisms such as carbon targets aiming for specified shares, production, or capacity of RE
taxes, emission trading systems and crediting approaches can also technologies. Targets for RE at the national or state/provincial
benefit the RE and EE sectors. Carbon pricing policies, if designed level are now found in 124 developing and emerging countries,

14
 DE VELOPING COUNTRIES’ EFFORTS AND ACHIE VEMENTS  g

Figure 1: Number of developing and emerging countries with RE targets by sector and type, end-2016
Number of developing and emerging economies with RE targets by sector and type, end-2016

120
113
100

80

60 53
40 33
24 22
20
12
0
Primary Final Both Final & Electricity Heating Transport
Energy Energy Primary Energy and Cooling

Source: REN21 Policy Database

Note: Figure does not show all target types in use. Countries are considered to have policies when at least one national or state/provincial-level
policy is in place. Policies are not exclusive--that is, countries can be counted in more than one column; many countries have mroe than one
type of policy in place.

with new or revised RE targets found in 53 of those countries United Nations Framework Convention on Climate Change
in 2016. Economy-wide targets for primary energy and/or final (UNFCCC). A total of 117 NDCs were submitted by year-end 2016,
energy shares have been adopted in 54 countries. By sector, largely formalizing the commitments made in countries’ Intended
renewable power has received the vast majority of attention, with Nationally Determined Contributions (INDCs) submissions prior
targets found in 113 countries. Targets for renewable heating and to the Paris climate conference. EE was mentioned in 107 NDCs,
cooling and transport energy have been introduced to a much and 79 developing and emerging economy NDCs included EE
lesser degree, in place in 22 and 12 developing and emerging targets, such as Brazil’s target of 10% efficiency gains by 2030.13
countries, respectively, by year-end 2016.10 (See Figure 1) RE was referenced in 73 NDCs submitted by developing and
emerging countries, with 44 including specific RE targets.14
With nearly all countries around the world having some form
of RE target now in place, the pace of adoption of new targets Individual country RE and EE commitments range widely in terms
has slowed significantly in recent years. However, many countries of scope and ambition. In the EE sector, targets that address
continue to increase the ambition of their renewable energy multiple end-use sectors are the most common. However,
goals, with some, including the 48 Climate Vulnerable Forum policymakers have increasingly set single-sector goals to
member countries, seeking to achieve 100% RE in their energy or transition energy supply or reduce energy use in sectors including
electricity sectors.11 heating and cooling, transportation, buildings, and industry. This
includes targets such as India and Uganda’s light-emitting diode
A total of 51 new EE targets were adopted in developing and
(LED) lamp goals.
emerging economies worldwide in 2016, bringing the total number
of countries with EE targets in place to at least 105 by year-end RE and EE targets have also been adopted at the regional level.
2016. Many EE targets have been put in place through National In 2016, the members of the Southeast Asian Nations (ASEAN)
Energy Efficiency Action Plans (NEEAPs), both in developed collectively established a 20% by 2020 energy intensity reduction
and developing countries. Outside of the EU, NEEAPs have be target in their NDCs, while the European Union set a binding
particularly prevalent in Eastern Europe and African countries.12 30% by 2030 energy savings target.
Energy sector targets also played a prominent role in many RE and EE targets are both often paired with specific policy
National Determined Contributions (NDCs) submitted to the mechanisms designed to help meet national goals.

15
 CHAPTER 2

2.1.2 POLICY INSTRUMENTS of complementary regulatory policies, fiscal incentives, and/

or public financing mechanisms to overcome specific barriers
In addition to targets, direct and indirect policy support or meet individual energy sector development goals. These
mechanisms continue to be adopted by countries to promote mechanisms, if well-designed and effectively implemented, can
EE (See Figure 2) and RE development and deployment (See help spur the needed investment in the energy sector to meet
Figure 3). Policymakers often strive to implement a unique mix national RE and/or EE targets.

Figure 2: Developing and emerging countries with EE policies and targets, end-2016

82 Countries with policies

and targets

8 Countries with policies,

no targets (or no data)

23 Countries with targets,

no policies (or no data) Source: REN21 Policy Database.

25 Countries with neither

targets nor policies
Note: Countries are considered to have policies when at least one
national or state/provincial-level policy is in place.

Figure 3: Developing and emerging countries with RE policies and targets, end-2016

95 Countries with policies

and targets

6 Countries with policies,

no targets (or no data)

29 Countries with targets,

no policies (or no data) Source: REN21 Policy Database.

8 Countries with neither

targets nor policies
Note: Countries are considered to have policies when at least one
national or state/provincial-level policy is in place.

16
 DE VELOPING COUNTRIES’ EFFORTS AND ACHIE VEMENTS  g

RE and EE are often adopted through differing mechanisms. EE- geothermal power. Similarly, Ghana announced plans to double the
specific promotion policies often take the shape of standards, length of terms under its solar PV FIT to 20 years. Cuts were also
labels and codes, or monitoring and auditing program; while RE is made to existing mechanisms in countries such as Pakistan and the
often promoted through feed-in tariffs, tendering, or net metering. Philippines, while Egypt enacted domestic content requirements for
Policymakers have also turned to similar mechanisms such as solar PV and wind projects qualifying for FIT assistance.
mandates and fiscal incentives to promote both RE and EE. In recent years many countries have revised their FIT mechanisms
RE and EE policies play an important role in the transformation to focus on support to smaller-scale projects, while turning to RE
of the energy sectors of industrialized, developing and emerging auctions, or tendering, for large-scale project deployment. The
countries. EE policies have been adopted in at least 137 use of tendering for promoting renewable power technologies
countries, including 90 developing and emerging economies.15 has expanded rapidly in recent years with developing and
EE awareness campaigns were held in at least 47 developing and emerging countries taking a leading role in the adoption of these
emerging countries, while EE funds were in place in at least 40 mechanisms. Tenders were held in 34 countries in 2016, with half
such countries in 2016.16 (See Figure 4) of them occurring in developing and emerging countries.18 This
included Chile’s auction, which resulted in a world record bid for
Direct RE support policies were found in at least 154 countries, lowest price of solar PV generation at US $29.10 per MWh.
including 101 developing and emerging economies as of year-
end 2016.17 The power sector continues to attract the majority Countries in Africa were particularly active throughout the year,
with Nigeria adopting a tendering system for projects larger than
of attention, with sectors such as heating and cooling and
30 MW to supplement its FIT policy, and both Malawi and Zambia
transportation receiving far less policy support. (See Figure 5)
holding their first RE tenders. In the Middle East and North Africa
Feed-in tariffs (FIT) remain the most common form of regulatory (MENA) region, comments included Morocco, State of Palestine,
policy support to RE. While the pace of new FIT adoption has and Jordan all held tenders. In Asia, the world’s two largest
slowed in recent years, policymakers continue to revise existing countries, China and India (at the national and sub-national
mechanisms through a mix of expanded support to further level), as well as Turkey held RE tenders during the year. In Central
incentivize specific RE technologies as well as reduced rates to keep America tenders were held in El Salvador, Guatemala, Honduras,
pace with falling technology costs. For example, in 2016 Indonesia Panama, and Peru. Tenders have also been held for non-power
increased its solar FIT by more than 70% and set FIT rates for technologies, though to a far lesser degree.

Figure 4: Number of developing and emerging countries with EE targets and policies, end-2016

Number of awareness campaigns

47
Number of funds
40
TOTAL TARGETS
105
Number of new targets 51
Number of mandatory targets 28
TOTAL POLICIES
90
Number of new policies
41
0 20 40 60 80 100 120

Source: REN21 Policy Database.

Note: Numbers indicate countries where targets and policies have been identified but not necessarily the total number of countries with policies
in place.

17
 CHAPTER 2

Figure 5: Number of RE policies and number of countries with policies by sector and type, developing and emerging
countries, end-2016

Number of countries
Countries
80
78 with Power
Policies
70 69 69
60 62
2013 2014 2015 2016
Countries
50 with
Transport
Policies
40
34 35 35 37
9 countries
30 had other
Countries with
Heating and heating &
20 Cooling (H&C) Policies cooling
policies
10
7 7 7
0 3
Power H&C Transport Power H&C Transport Power H&C Transport Power H&C Transport

Feed-in tariff / premium payment Solar heat obligation Biodiesel obligation / mandate only
Tendering Technology-neutral heat obligation Bioethanol obligation / mandate only
Net metering Both biodiesel and bioethanol
Renewable Portfolio Standard (RPS) Non-blend mandate

Source: REN21 Policy Database

Note: Figure does not show all policy types in use. Countries are considered to have policies when at least one national or state/provincial-
level policy is in place. Policies are not exclusive--that is, countries can be counted in more than one column; many countries have more than
one type of policy in place.

Previously successful tendering programs in South Africa and an environment of enabling technologies, such as energy storage
Brazil each saw setbacks in 2016. In South Africa developers and smart grid systems, to better integrate renewable technologies
faced challenges securing power purchase agreements (PPAs) in global electricity systems. For example, Suriname held a tender
with the national utility, while reduced demand for electricity for solar PV systems including battery storage in 2016.20
and economic challenges caused by Brazil’s contracting national
RE deployment in the electricity sector through mechanisms
economy forced officials to call off previously planned auctions,
such as those described above can also have a significant impact
marking the first time since 2009 in which the country did not
on the efficiency of power generation by shifting from thermal
hold a tender for wind power.
power plants, which convert only approximately one-third of
Policymakers have also continued to support renewable electricity primary energy to electricity, to more efficient RE installations.21
deployment through enacting mandates for specified shares of
renewable power, often through Renewable Portfolio Standards Renewable heating and cooling technologies are directly
(RPS), or requiring payment for renewable generation through promoted primarily through a mix of obligations and financial
net metering policies, such as the new policies added in Suriname support, though the pace of adoption remains well below that
in 2016. In addition to regulatory policies, several countries seen in the power and transport sectors. By year-end 2016
provided public funds through grants, loans or tax incentives to renewable heat obligations or mandates were in place in 21
drive investment in RE development or deployment. This includes countries, including seven emerging and developing countries
India’s 30% capital subsidy for solar PV rooftop systems.19 (Brazil, China, India, Jordan, Kenya, Namibia, and South Africa).22

Governments are also adapting mechanisms that long have been RE heating and cooling policies frequently focus on the use of
used for the promotion of power generation technologies to develop RE technologies in the buildings sector, and are often adopted

18
 DE VELOPING COUNTRIES’ EFFORTS AND ACHIE VEMENTS  g

in concert with building efficiency policies and regulations.23 Fuel economy standards are a primary means of increasing
Several countries advanced EE through new or updated building energy efficiency of passenger vehicles in the transport sector.
codes in 2016, of which 139 are in place worldwide at the At least eight countries plus the EU have now established fuel
national and sub-national level, including in at least 9 developing economy standards for passenger and light-commercial vehicles
and emerging countries.24 This includes Indonesia’s efforts to as well as light trucks, including Brazil, China, India, and Mexico.25
develop a Green Building Code, and members of the Economic No developing countries have yet adopted policies for heavy-
Community of West African States (ECOWAS) implementing duty vehicles.
building codes in accordance with a regional directive.
RE in the transportation sector is often promoted through
Specific financial incentives, including grants, loans, or mandates specifying required shares or volumes of renewable
tax incentives, targeted at renewable heating and cooling fuel use. Developing countries are often at the leading edge of
technologies have been adopted in at least 8 developing and nations looking to promote fuel switching to renewable transport
emerging economies. In certain cases, such as in Bulgaria, fuels. Biofuel blend mandates were in place at the national or
support to RE heating technologies are included in broader EE state/provincial level in 36 countries as of year-end 2016, with
financial support programs. New developments in 2016 included developing and emerging countries accounting for 26 of that
Chile’s extension of its solar thermal tax credit and India’s new total.26 In 2016, Mexico expanded its blend mandate to cover
loan incentives for solar process heat developers. Renewable nationwide fuel use, while Argentina, Malaysia, India, Panama,
energy tendering has also been used to scale up deployment Vietnam, and Zimbabwe all added or strengthened biofuel and/
in the sector. Bids for South Africa’s long-awaited solar water or bioethanol blend requirements.
heater tender closed in early-2016.
New financial incentives also were introduced in 2016 to promote
The industrial sector also has a significant EE policy focus; biofuel production and consumption, biorefinery development,
however, the development of targeted mechanisms for the and R&D into new technologies, including in Argentina where
promotion of RE in industrial processes remains a challenge for biodiesel tax exemptions were expanded, and Thailand which
policy makers. For EE, both Mali and Morocco now require energy provided subsidies to support a trial program for biodiesel use in
audits for large industrial energy users. trucks and military and government vehicles.
Transportation-focused RE and EE policies have both been While national policies remain an important driver of renewables
adopted to accomplish a wide range of sector goals, including and energy efficiency development, municipal policymakers
increasing fuel economy or fuel switching to renewable fuels or are taking a leading role in the promotion of both RE and EE
electric vehicles. The vast majority of policy attention, particularly within their jurisdictions, often moving faster and enacting
in developing countries, has been focused on energy use in the more ambitious goals than their national counterparts. As cities
road transportation sector. While energy use in the maritime, rail, continue to band together to mitigate the impacts of global
or aviation transportation sectors is gaining attention, concrete climate change, they have turned to RE and EE to transform
RE and EE policy mechanisms have been adopted in only a their energy sectors. A number of cities around the world are
handful of locations. now seeking to achieve 100% renewable energy or electricity,
while a growing list of municipalities in developing and emerging
economies such as Cape Town (South Africa), Chandigarh (India)
and Oaxaca (Mexico) have established ambitious RE goals.

19
CHAPTER 3

3
NON-STATE AND SUBNATIONAL
CONTRIBUTIONS TO RENEWABLE
ENERGY AND ENERGY EFFICIENCY

In cities and regions throughout the world, governments at all jurisdiction levels are
collaborating with private companies, funding organizations, and civil society to
implement renewable energy and energy efficiency programs. These activites reduce
carbon emissions and create co-benefits including enhanced environmental quality,
improved public health, economic growth and job creation, social inclusion, and
gender equality. This chapter includes six case studies of successful public-private
collaboration, as well as a discussion of the emerging low-carbon business paradigm.

Kampala, Uganda

Kampala aims to
replace 50 percent of
household charcoal
use with alternative
cook fuels, such as
biomass or briquettes
made from organic
waste.

R Details see page 24

 NON-STATE AND SUBNATIONAL CONTRIBUTIONS  g

Renewable energy (RE) and energy efficiency projects (EE) in between US $330 billion and $1.8 trillion (₹2-12 lakh crores) per
developing countries often require collaboration from implementing year by 2050 – up to 6 % of the country’s GDP – while producing
partners, such as the private sector and subnational actors. This significant savings for households.44 Altogether, the New Climate
chapter features six case studies that demonstrate some of the Economy estimates that global low-carbon urban actions could
strategies that cities, businesses, and other collaborators are using generate US $16.6 trillion between 2015 and 2050, while reducing
to support RE and EE activities across developing and emerging annual GHG emissions by 3.7 GtCO2e by 2030.45
economies. These examples showcase the social, economic, and
Increasingly, different kinds of actors are working together to
environmental benefits of RE and EE initiatives, demonstrating the
realize this potential. One assessment found that three-quarters
incentives driving businesses and cities to take leadership roles in
of the challenges facing city climate action require support
implementing them.27, 28 It also includes an excerpt from Thomson
and collaboration with national and regional governments or
Reuters’ forthcoming ‘Global 250 Report: A New Business Logic’,
the private sector.46 Cities and companies, in particular, have
exploring the motivations and process of companies seeking to
grown increasingly interdependent. Businesses aim to capture
decarbonize their business models.
a share of the growing US $5.5 trillion global market in low-
Cities and the private sector will be vital to limiting global carbon and environmental technologies and products, which is
warming to well below 2°C.29 As of 2013, over half of the global often concentrated in cities.47 Energy service companies, which
population and approximately 80 percent of global GDP resided base their business model on delivering EE solutions, generated
in cities.30 By 2050, the urban population will account for two- US $24 billion in revenue in 2015, and employed over 600,000
thirds of the global population, and 85 percent of the global people in China alone.48 The global RE sector employed 9.8
GDP.31 Since cities concentrate people and economic activity, million people in 2016, a 1.1% increase over 2015; by 2030, this
they also shape energy use; urban areas currently make up number is expected to grow to 24 million.49 Engaging in climate
around two-thirds of global primary energy demand and 70 action also helps to mitigate the risk climate change may pose to
percent of global energy-related carbon dioxide emissions.32 an organization’s business model and supply chain, and enables
The goals of the Paris Agreement rest on the ability to chart a companies to meet internal and public commitments to address
sustainable urban future – through the adoption of renewable global warming.
energy, increasingly efficient use of energy, and the design of
The private sector can also help develop, implement, and scale
resilient and low-carbon infrastructure and transport.33
climate and development solutions in urban areas that often
Many cities already host innovative climate strategies, driven by struggle to access adequate finance. Aside from tax collection,
governments, businesses and other actors who see opportunities most cities face limited options to raise or spend funds; the
to lower costs, appeal to investors, generate new forms of private sector can help access capital to initiate or expand
industry, and improve quality of life. Activities that help cities successful projects.50 A C40 analysis of some 80 mega-cities
address climate change also offer opportunities to make progress identified 2,300 high-impact, “shovel ready” climate actions that
towards meeting the goals of the 2030 Agenda for Sustainable could mitigate 450 MtCO2 – close to the annual emissions of the
Development. Low-carbon forms of development generate co- United Kingdom – by 2020, if US $6.8 billion in funds could be
benefits, such as reduced traffic congestion and improved air unlocked to implement them.51
quality and public health.34, 35, 36 Between 2007 and 2015, solar
Many of these collaborations are already underway. One survey
and wind power in the United States produced air quality benefits
of 627 climate change initiatives, across 100 global cities, found
of US $29.7–112.8 billion, mostly from 3,000–12,700 avoided
that private and civil society actors accounted for approximately
premature mortalities.37
one quarter (24 percent) of urban climate action, and 39 percent
The transition to a low-carbon economy can also reduce poverty of climate action in Asian cities.52 Private sector organizations
and spur job creation.38, 39 Implementing the RE strategies fund and invest in climate action; act as service providers; deliver
articulated in the national climate action plans of the United operations and maintenance support to projects such as transport
States, European Union, China, Canada, Japan, India, Chile, and or waste management; and design and build infrastructure.53
South Africa would generate roughly 1.1 million new jobs, and Companies have also helped to fill gaps in infrastructure by
save about US $50 billion in reduced fossil fuel imports.40 If these creating new models for delivering city services, such as ride-
countries committed to a 100 percent RE pathway, they would sharing.54 Strategies like microfinance have played important
generate 2.7 million new jobs, and save US $715 billion from roles in further unlocking the upfront capital vital to developing
avoided fossil fuel imports.41 Collaboration with civil society and and implementing urban innovations.55 As urban areas expand,
local stakeholders can help ensure a just transition to a low- public-private partnerships that harness different forms of
carbon economy, that maximizes job creation, helps citizens expertise, technology, and data can help overcome barriers to
develop new skills, and fosters community renewal.42 action and keep pace with cities’ rapid rate of change.56 National
and regional governments can also help foster this process, by
Building compact, connected cities also reduces the cost of
crafting policy and financial environments that help RE and EE
providing services and infrastructure for urban transport, energy,
strategies take root.
water and waste.43 In India, smart urban growth could save

21
 CHAPTER 3

NEW DELHI
About the City
Population: 23 million
(metro area)
GDP (2016): US $ 293.6 billion
Land Area: 1,483 km2 iii

Current situation: R New Delhi’s 3 waste-to-energy

plants enable the city to
R The 52 MW capacity of New Delhi’s
3 waste-to-energy plants constitute nearly
use over 50% of its waste 60% of the total 88 MW produced by waste
to produce electricity daily. management practices in India.

5,500 t/day >50 % 52 MW

R
R R
About the initiative
New Delhi’s Integrated Municipal Waste
Processing Complex at Ghazipur, financed
through a private-public partnership with
IL&FS Environment, reduces emissions
while transforming waste into energy. This
partnership also supports local families
through direct hiring and job training.

IN RELATION TO SDGS

New Delhi

Initiative Accomplishments:
The Ghazipur waste-to-energy plant will save...
... 8.2 million tons ...US $ 0.4 per kWh ... 200 acres
in avoided methane in avoided of land, valued at over
emissions – equivalent waste treatment costs Rs 2000 crores
to removing all cars from (US $308 million)
Delhi’s roads for

100 days

22
 CASE STUDIES  g

TRANSFORMING WASTE INTO ENERGY | INDIA | NEW DELHI

Each day, the Integrated Municipal Waste Processing Complex at IL&FS Environment also worked with a nonprofit organization,
Ghazipur, New Delhi, receives approximately 2,000 tons of waste, Institute for Development Support (IDS), to establish Gulmeher,
about 20% of the city’s 9,500-ton waste stream.57 Through a public- a community center that offers employment and training to
private partnership between the East Delhi Municipal Corporation approximately 200 local women, who previously earned a living
and the Infrastructure Leasing and Financial Services Environment collecting waste at the Ghazipur landfill.72 The center, which
(IL&FS Environment) the landfill now includes a waste-to-energy launched in May 2013, grew out of brainstorming sessions
plant which generates an annual 12 MW of power.58 It also produces IDS held with waste-pickers, IL&FS Environment, and other
127 tons of fuel, an alternative energy source for cement and power stakeholders.73, 74 To help boost their future employability, the
plants.59 The Ghazipur plant, which began operating in November center provides training in a variety of jobs.75 Women reuse
2015, will save a projected 8.2 million tons in avoided methane materials from a nearby wholesale flower market to create
emissions over its 25-year life span.60 products including boxes, cards, diyas, and natural holi colors.76
In mid-2014, the center partnered with Delhi-based start-up
The project’s benefits extend beyond its climate impacts. Reusing
Aakar Innovations to produce inexpensive sanitary napkins that
waste will prevent 200 acres of urban land, valued at over Rs 2000
low-income women can afford. Aakar Innovations helped train
crores (US $308 million), from being consumed by the landfill.61, 62
the women and buys and re-sells the products they produce.77
For IL&FS Environment, the plant enables it to engage in India’s
environmental goods and services sector, estimated to be worth In 2014, the community organization converted into a private
Rs 250 billion (US $3.9 billion) and projected to grow 10 to 12% company, with participants also acting as shareholders of the
annually.63 Across its operations, the company reuses 95% of every Gulmeher Green Producer Company Limited.78 Earnings for the
tonne of municipal solid waste through recycled products or energy participating women average approximately Rs 5,000-6,000
generation.64 (US $77-90) every month.79 For Badru Nisha, the first woman to
join the center, this income has enabled her to save 70,000 Rs
Converting waste to energy, and avoiding the expansion of the
(US $1,100) and to build a house for relatives.80 In India, where
landfill, also lowers the health and safety risks of an open solid waste
only 26% of women participate in the labor force, compared to
disposal site.65 The plant reduces the amount of leachate the landfill
almost 75% of men, this organization helps build women’s skills
generates, saving US $0.4 per kWh in annual treatment costs.66 In
and confidence.81, 82
managing the Ghazipur plant, IL&FS Environment relies on best-in-
class technology67 and a Continuous Emission Monitoring System, Without intervention, New Delhi is expected to generate roughly
which publishes real-time emission parameters online, to meet strict 15,750 tons of garbage daily in 2021.83 For cities facing a similar
air quality standards.68 challenge of managing high volumes of waste with limited
land, the Ghazipur plant offers a successful strategy; plans for
The project also focuses on supporting the surrounding community
replicating it are underway in New Delhi and other Indian cities.84
of 373 local wastepicker families who live near and work in the
The city’s most recently constructed waste-to-management
landfill, salvaging and reselling waste. Providing support and
plant, Narela-Bawana, also relies on a public-private partnership
retraining to local families is critical to efforts that affect access
model, and produces compost as well as energy.85 As the city
to the landfill and its materials. The Ghazipur plant employs over
and its waste stream continue to grow, the private sector plays
70 former waste-pickers directly in the plant.69 To foster financial
a powerful role in converting challenges into opportunities for
inclusion, 400 families received bank accounts and Permanent
development.
Account Number cards, and kiosk banking was provided to the local
community through the State Bank of India. Since July 2014, 2,075
bank accounts have been opened.70, 71

23
 CHAPTER 3

KAMPALA
About the City
Population
(metro area): 3.5 million
GDP: US $25.528 billion
Land Area: 1,895 km2

Current situation:

-22 % -50 %
Reduce greenhouse-gas Replace 50%
emissions by 22 % (compared of charcoal with
to business-as-usual) alternative cook fuel
Market in Kampala, Uganda

About the initiative IN RELATION TO SDGS

Kampala accelerates the development and adoption of clean
cooking technology. The city partners with the private sector,
civil society, and international funders to bring clean cooking
technology to public schools and markets and to support low-
carbon biomass businesses.

64 x
1 billion
improved

220
eco-stoves
installed in 15 primary schools,
saving of 9,300 € (US $11,029)
in firewood costs, reducing
1,671 tons of CO2
Ugandan shillings
annually, and benefitting (US $276,860) raised eco-stoves 
15,631 children and by MTN Uganda to install installed in Kampala’s
staff members. bio-toilets in 10 schools. markets.

24
 CASE STUDIES  g

EXPANDING ACCESS TO CLEANER COOKING | UGANDA | KAMPALA

Kampala has grown rapidly over the past decade, becoming home low-carbon briquettes from organic waste, food scraps and
to nearly 2 million people, and generating approximately half of other materials. The briquettes burn cleanly, without releasing
Uganda’s GDP.86 In 2014, the city launched a five-year Climate smoke or ash, and help avoid deforestation. In the words of one
Change Action Strategy87 to guide its rapid evolution and to ensure customer, they are also “cheap to use, time-saving and energy-
it “drives development in the most sustainable way.”88 The plan draws saving.”98 The briquettes have gained popularity with restaurants,
on a diverse array of goals – from planting half a million trees to hotels, households and poultry farmers. Kampala’s administration
creating traffic-free paths for pedestrians and bicyclists – to build is developing a program to further expand the supply of low-
Kampala’s resilience and protect its most vulnerable populations.89 carbon fuel and connect producers with more markets.99
The early years of the Kampala’s Climate Change Action Strategy In addition, the city has installed 220 eco-stoves in the city’s
have focused on creating pilot projects and building partnerships marketplaces. These stoves can be linked with solar photovoltaic
that lay the groundwork for expanded action. In particular, the city panels that extend stoves’ cooking time and can generate
has made great strides in implementing a complementary array of electricity for other uses, such as lighting a kitchen or charging
clean cooking initiatives. Its Climate Change Action Strategy seeks a battery.100 This approach improves working conditions, protects
to replace 50% of household charcoal use with alternative cook the health of the women who typically cook and serve food in
fuels, such as biomass or briquettes made from organic waste.90 these spaces, and helps test and fine-tune this technology. It also
To pursue this target, Kampala provides seed capital and funding builds awareness and comfort with cleaner cooking technology
to organizations that train youth and women in making biomass among smaller business owners, who often face financial barriers
briquettes; brings biogas digesters and improved cook stoves to to the purchase of new equipment.
public schools; and installs eco-stoves at city markets. These proof- The shift to cleaner cooking technology can deliver vital
of-concept demonstrations build confidence and connections improvements in public health. More than 90% of Ugandan
with the private sector, civil society, and bilateral and multilateral households,101 along with many restaurants, schools, and other
funders, to help scale up these strategies. places that serve and prepare food, cook with wood charcoal.
MTN Uganda, the country’s largest telecommunications company, The World Health Organization estimates exposure to cookstove
for instance, has committed 1 billion Ugandan shillings (US smoke contributes to 13,000 premature deaths every year in
$276,860), raised through two annual city marathons, to install Uganda.102, 103 In Kampala, over 80% of households rely on
biogas digesters in 10 public schools.91 Their commitment will charcoal for cooking, with dramatic impacts on air quality and
expand a program piloted at the Kansanga School, which turns public health.104 Women and girls often face the highest levels of
human, animal, and food waste into methane gas, halving the risk, as they can spend up to five hours daily cooking in smoky
amount of energy used to cook meals. This biogas digester produces kitchens, and can face safety risks in traveling to forests to
approximately 2.6 MWh annually, lowering operating costs and collect firewood.105
reducing pollution from the firewood or charcoal it replaces.92 The use of clean cooking technology also lessens the risk of fuel
A collaboration between the Kampala Capital City Authority shortages. The balance between biomass supply and demand
(KCCA) and French development agency Expertise France remains fragile, with large deficits in materials forecasted
supports a complementary effort to bring higher efficiency in and beyond the 2020’s.106 Since Kampala concentrates
cooking stoves to 15 new public schools,93 with technical support Uganda’s economic activity and, as a result, its energy demand,
from the Ugandan company SIMOSHI Ltd. This effort, which has it is especially vulnerable to these projected shortfalls, but also
distributed 64 stoves supplied by Uganda Stove Manufacturers particularly well-placed to test and develop solutions.107
Ltd., builds on the successful implementation of an eco-stove The city’s approach to promoting clean cooking technology
at another school.94 The program has saved schools 9,300 € reflects the need to ensure that the transition away from the
(US $11,029) in firewood costs, reduced 1,671 tons of CO2 charcoal market generates jobs and creates revenue.108 Funding
annually, and benefitted 15,631 children and staff members.95 will also continue to be crucial to the city’s ability to facilitate and
Earnings acquired through the Clean Development Mechanism accelerate the adoption of clean cooking technologies. Kampala
will be reinvested in the schools to support annual maintenance, has teamed up with the World Bank and the University of
monitoring and management.96 Eventually, the project aims to Washington to develop a climate-smart capital investment plan
install 1,500 stoves in 450 schools, benefiting 340,000 children that aligns new projects with the city’s climate action goals. It will
and reducing 31,286 tonnes of annual CO2 emissions.97 continue to leverage partnerships with private and international
Kampala also works with emerging businesses, providing seed partners to scale up public funding as it takes the next steps in its
funding to organizations that train women and youth to produce climate and development roadmap.109

25
 CHAPTER 3

NANJING
About the City
Population (metro area): 8.21 millionxlv
GDP (2016): US $146.4 billionxlvi
Land Area: 6,598 km2 iii

Current situation:
R Shortlisted as one
of China’s National

LOW-CARBON
PILOT CITIES.
RENEWABLE
ENERGY

ELECTRIC VEHICLE
MANUFACTURING AND
SERVICES HUB

EV POLICIES

About the initiative IN RELATION TO SDGS

The Nanjing Municipal Government
introduced a series of policies to
promote the sale, use and production
of electric vehicles. It works with
industry to continue transforming
the city into a major electric vehicle
manufacturing and services hub.

Initiative Accomplishments* * During 2014-15

+4,300 R Added 4,300 electric vehicles (EVs)

-246,000t R reduced CO2 emissions by 246,000 tons

and saved over US $71 million in lower energy bills

R Drew more than 46

EV companies to the city,
generating annual tax revenues of approximately

US$ 16 million.
26
 CASE STUDIES 
?  g

PROMOTING ELECTRIC VEHICLES | CHINA | NANJING

The Chinese city of Nanjing deployed the fastest rollout of

electric vehicles in the world, adding 4,300 electric vehicles to
its streets during 2014–2015.110 This transition to electric vehicles
(EV) helped Nanjing reduce CO2 emissions by 246,000 tons in
2014.111 Nanjing’s activities have drastically cut the city’s carbon
emissions and use of oil, and generated over US $71 million in
savings from lower energy bills.112
Nanjing’s adoption of renewable and electric vehicles is part of a
larger economic and environmental bid to transition away from
energy and carbon intensive industries like petrochemicals, steel,
and building materials113 that Nanjing’s economy once relied
on. These conventional industries are losing their economic Through supportive policies and a favorable investment
competitiveness while emitting large amounts of greenhouse environment, Nanjing has established itself as an electric vehicle
gases and other pollutants.114 manufacturing and services hub. In 2014-15, Nanjing drew 46
companies connected to the EV sector to the city and earned
The municipal government supported this shift by building tax revenues of approximately US $16 million per year.121 In 2016,
compatible infrastructure for electric vehicles, introducing tax Chinese EV manufacturer Future Mobility Corporation invested
breaks and electricity price subsidies for EV consumers, and US $1.7 billion to build a factory in Nanjing that has an initial
promoting the use of renewable-powered vehicles in public production capacity of 150,000 cars per year.122 Beijing-based EV
services. In the 2016 New Energy Automobile Promotion and rental company Gofun has also introduced its service to Nanjing,
Application Plan of Nanjing, the municipal government aimed rolling out 200 electric cars that can be rented via smartphones.123
to add 500 renewable energy buses, 500 service vehicles and
1,502 passenger vehicles to its transportation system in 2016.115 Policy coordination across different levels of government helps
By 2018, Nanjing’s goal is to convert 80% of its bus fleet to be explain Nanjing’s success. Nanjing is a National Low-Carbon Pilot
powered by renewable energy.116 Nanjing also plans to build 3,000 City.124 Policies and guidelines from the Central and Provincial
charging stations, especially in residential areas, and to expand Governments give the Municipal Government the confidence
the use of electric vehicles to trucks and vans in the logistics and support it needs to conduct pilot programs and test new
sector.117 solutions.

Nanjing’s initiative to promote electric vehicles closely aligns Private sector engagement is another important factor in scaling
with China’s national climate, energy, and macroeconomic up EV adoption. The private sector plays a key role in Nanjing’s
policies, and it receives support from the central and provincial expansion of its EV sector, by providing solutions, products, and
levels of government. On a national level, China has set specific services to meet demand. The Nanjing Municipal Government’s
targets to develop a sustainable and renewable energy-driven policies have made Nanjing a pioneer both as a market and a
transportation sector, as highlighted in both the State Council’s manufacturing center for the EV industry. The Nanjing Municipal
Circular Economy Development Strategy and Near-Term Government offers incentives for manufacturers to base
Action Plan and the Ministry of Transport’s Guiding Opinions their production in Nanjing, thereby promoting its economic
on Accelerating Development of Green Circular Low-Carbon restructuring.
Transportation.118 Electric vehicles are a key part of the solution, The government also fosters companies’ engagement in the
as they enable China to achieve GHG emission reduction targets sector’s future. In August 2017, the Nanjing New Energy
as well as to grow and restructure its automobile industry. Automobile Operation Alliance was launched. It consists of 37
At the provincial level, the Jiangsu Provincial Government has companies across the entire EV value chain – including carmakers
signed a Framework Agreement119 with the Ministry of Transport like BYD, real estate developer China Fortune Land Development,
to promote Jiangsu’s development of low carbon transportation. and charging station solution provider e-charger. The alliance is
The Jiangsu Provincial Government also released the Green, supported by the Nanjing Municipal Government’s EV Office and
Circular and Low-Carbon Transportation Development Plan of the Nanjing Economic and Technological Development Zone.125
Jiangsu Province (2013-2020),120 which included a target to make Platforms like this will enable Nanjing to expand its volume
35% of public buses and 65% of taxis run on renewable energy of EVs and develop a transportation sector that runs on clean
across Jiangsu. pollution-free renewable energy.

27
 CHAPTER 3

VALLE DEL About the City

CAUCA REGION
Population 4.6 millionxciv
(metro area):
GDP (2016): US $35.3 millionlxix
Land Area: 22,140 km2 iii

Current situation:
Across Colombia, micro, small, and
medium enterprises comprise:
90% 80% 35%
of private of the
of all Colombian sector GDP national
businesses employment GDP

About the initiative

The Women’s Cleaner Production Network trains and
encourages entrepreneurs to foster clean production
practices in small and medium enterprises along the
Colombia’s Valle del Cauca region, a major industrial
corridor.

IN RELATION TO SDGS

Cali, Valle del Cauca, Colombia

Initiative Accomplishments

25
Under the leadership of Network participants

Production efficiency R A construction firm achieved a:

+110% 31% reduction of its

construction waste;

69% reuse of demolition

and construction
material waste;

50% reduction of paper use

in its organizational
processes;
women have been R A construction firm R A sugar cane mill
trained through the
initiative
installed
3,304 kWh switched to more
efficient stoves and fuel,
and the use of
rainwater for

90%
of energy in a new housing increasing production of construction
development, saving +US efficiency 110% activities
$200 in the first 8 months of
its projected 20-year life span

28
 CASE STUDIES  g

LEADING BY EXAMPLE IN CLEANER INDUSTRIAL PRODUCTION |

COLOMBIA | VALLE DEL CAUCA REGION
The Women’s Cleaner Production Network helps entrepreneurs Across Colombia, micro, small, and medium-sized enterprises
transform their firms into green businesses. It gathers women make up 99% of all Colombian businesses, and drive 80% of
from academia, utility companies, public organizations, and large private sector employment, along with 35% of the national
and small industries to develop action plans to reduce industrial GDP.134 They also often generate significant pollution, in part
pollution and address climate change. To date, 25 women have because of the challenge of accessing environmental knowledge
leveraged the Network to capture efficiency savings, reduce and best practice technologies.135 Regional cleaner production
emissions, and give their company a competitive edge. centers, universities and environmental authorities, in sync
with Colombia’s 2010 Sustainable Production and Consumption
While strategies vary across sectors, they typically deliver cost or
Policy, aim to transform polluting industries into sustainable
material savings for the organization as well as benefits for the
businesses.136
climate. At a trapiches paneleros (unprocessed sugar product)
mill, old and inefficient ovens used wood and old tires as fuel, in Groups like the Women’s Cleaner Production Network help
part to compensate for the oven’s open design, which failed to facilitate collaboration between these different actors, making
conserve heat. Burning these materials released sulfur dioxide, cleaner production efforts more resilient to financial or technical
which creates respiratory risks,126 in addition to greenhouse challenges. These collaborations also help identify key areas
gases.127 The firm’s owner, a member of the Network, led the for intervention. A partnership between the Network and the
switch to an eco-oven, a system easily constructed using local Corporación Autónoma Regional del Valle del Cauca (CVC),
materials. A fine-grained silica wall conserves heat, eliminating Colombia’s environmental authority, for instance, is developing
the need to burn tires and wood and enabling the operation to clean production initiatives to support small coffee producers,
reuse sugar cane waste as fuel. The new stove also generates which employ many women displaced by conflict.
more heat, cuts the use of vegetable oil in the consumption
Though many small and medium-sized enterprises are dominated
process by 83%, and increases overall production efficiency by
by men, women have been crucial actors in the transition to
110%.128 The mill’s production of its final products – 24-kg lumps
cleaner technology and practices. While they work across diverse
of processed sugar cane – have jumped from 2.5 to 5.25 per
industries, participants in Women’s Cleaner Production Network
hour.129
share a common trait: they have all already led successful cleaner
In another example, a firm’s female construction director led production projects in various industries in Colombia prior to
a shift to the use of solar energy in residential construction joining the initiative. The Network helps facilitate technology
projects. The firm joined forces with a national utility company, transfer, but also fosters strategic partnerships and learning
Empresa de Energia del Pacifico (Epsa), and piloted an initiative alliances to help implement new tools and sustain change. Many
to install solar panels on the roofs of common areas, such as firms, even when they successfully participate in demonstration
gardens, swimming pools and gyms. Since the panels’ installation projects, struggle to integrate these new strategies, tools or
in January 2017, the PV systems have generated 3.304 kWh of processes into their daily operations. The Women’s Cleaner
energy, of which 3.303 kWh has been consumed, saving its Production Network has been especially adept at helping its
owners over US $200 in the first 8 months of its projected 20- participants institutionalize these transitions, create a new
year life span.130, 131 The director now hopes to expand the use business-as-usual, and lay the foundation for continued gains in
of solar to individual homes, using environmentally-friendly clean production.137
materials to generate and store electricity.
The potential for replicating the Network’s model in and beyond
Other women associated with the Women’s Cleaner Production Colombian remains large. Most participants’ activities draw
Network have achieved similar results in both emissions on local technology and materials and involve simple, easily
reductions and environmental protection. Increased efficiency at achievable steps.138 The model of the Network itself could also
one large construction firm spread to ten of its suppliers; across be scaled up. It draws value from the diversity of institutions and
these businesses, women led the installation of photovoltaic industries represented, and helped build participation through
energy systems to provide light and pump rainwater; initiated concrete activities, responsibilities, and benefits for engagement
waste recycling and water reuse programs; replaced firm in the network. Crucially, it considers technical knowledge from
motorcycles with bicycles; and cut administrative paper use by small firms and from large institutions to be complementary
half.132 and equally valuable, enabling the group to tackle problems
that would have been challenging to address from a single
All of this activity occurs within the Valle del Cauca region of
perspective.139
Colombia, a major industrial corridor that hosts roughly 450
small and medium enterprises from different industries.133

29
 CHAPTER 3

MEXICO CITY
About the City
Population: 20.4 million
(metro area)
GDP: US $421 billion
Land Area: 1,485 km2

Past Accomplishments: Current Situation: Future Targets:

7.7million tonnes of CO e 10
Cut Commercial and Reduce
industrial buildings’ million tonnes
energy use generates of CO2e
2

31.4
between by 2020, and

30%
2008 - 2012 =

+10%
more than its
original targets million tonnes
of CO2e
of Mexico
by 2025.
City‘s carbon
emissions

21,949 80-95%
Reduce annual emissions by
square
meters
of green roofs on schools,
hospitals, and public buildings or limit to 2 metric tons of CO2
per capita, by the year 2050

2mt CO 2

IN RELATION TO SDGS
About the initiative
Mexico City’s Sustainable Buildings Certifi-
cation Program incentivizes sustainable
commercial, industrial and residential
buildings, creating benefits for building
owners, tenants, and the city government.

Initiative Accomplishments (between 2009-2017)

8,220 116,789 133 68

Reduced Saved Saved
Covers
square meters
of floor area across tons of CO2
1,735,356
cubic meters
new jobs
created
65 buildings emissions
million kWh of water
of electricity

30
 CASE STUDIES  g

TAKING THE LEAD IN GREEN AND SUSTAINABLE BUILDINGS |

MEXICO | MEXICO CITY
Mexico City has encouraged efficiency in new and existing accelerated permitting procedures. These benefits help building
building stock through a strategy that integrates public policy with owners overcome the high capital costs and limited financing
concrete action. The Sustainable Buildings Certification Program options that can stall building improvements.144 By lowering the
(SBCP), “the first of its kind in Mexico,”140 exemplifies this approch, demand on municipal water, energy, and waste management
generating buy-in and capacity for more comprehensive action services, the program also enables Mexico City to stretch its
while delivering tangible environmental and economic benefits. resources farther.145
The initiative fosters the sustainable construction or improvement
The SBCP includes multiple points of entry that accommodate
of commercial, industrial and residential buildings, by awarding
different participants’ needs. Its tiered certification system
certifications that reflect various levels of sustainability
allows small businesses with limited access to capital to scale
performance in energy efficiency, water, mobility, solid waste,
up efficiency improvements over time. Tenants of commercial
social and environmental responsibility, and green roofs.
buildings can obtain certification for the space that they rent or
The SBCP launched in 2009, after approximately two years of lease. In multi-family properties, certifications can apply to either
planning and stakeholder consultation. Mexico City’s Ministry specific building sections, common areas, or the entire building.
of Environment gathered technical experts from the building These options help counter the challenge of “split incentives”
industry, local governments, and academia to develop the between building tenants and owners, in which a building owner
program’s certification process and criteria. Typically, participants worries that savings from lower energy costs will flow to the
audit their building’s energy and water use, then use the results tenant, while a tenant avoids investing in improving efficiency,
to develop a plan to meet or exceed existing local and national since the resulting increases in property value will largely benefit
energy efficiency standards. The Ministry of the Environment the owner.146 Continuing to tailor outreach and incentives to
certifies new or newly retrofitted buildings, rating residential different audiences – and, in particular, to small and medium
structures as compliant, efficient, or excellent, and industrial enterprises – will be a key next step for the city.147
buildings as compliant or excellent. Higher certification levels
The program also increases the transparency of the building
generate higher property tax and payroll tax reductions. Every
marketplace. Domestic or international corporations seeking
two years, a follow-up assessment tracks performance and
green office space or industrial facilities may consult a list of
compliance.141
SBCP participants. Certified office buildings have garnered “green
As of 2017, the program encompassed 8,220 square meters premiums” of around 20% in their rental yields,148 as companies
of floor area across 65 buildings. Between 2009 and 2017, seek to meet their own sustainability commitments or harness
participating buildings saved 116,789 tons of CO2, 133 million the benefits of green buildings.
kWh of electricity, and 1,735,356 cubic meters of potable water.142
The SBCP is part of a complementary mix of reforms and
The SBCP’s benefits also spread beyond efficiency. The program
incentives aimed at greening the city’s building sector. Mexico
has supported renewable energy installation and expanded
City leads by example, covering 21,949 square meters of schools,
green roofs and gardens – its tax breaks allow participants to
hospitals, and public buildings with green roofs, and conducting
implement sustainability strategies that might otherwise be
audits for efficiency retrofits at 19 public buildings.149, 150, 151
prohibitively expensive.
In June 2016, Mexico City’s Ministry of Environment updated
Since third-party technicians play a vital role in supporting building codes, including guidance on materials for construction,
the certification process – auditing buildings, and identifying equipment, and design, to enable more energy-efficient buildings.
strategies to improve performance – the city has partnered with This dramatic shift from the previous regulations, which did not
industry to offers technicians resources, training, and the chance account for energy efficiency, could reduce buildings’ energy use
to earn credentials as official implementing agents of the SBPC up to 20%.152 Through platforms such as the Building Efficiency
program. The certification can help auditors win new contracts, Accelerator, the city continues to engage a wide range of
and the process of training and hiring technicians to oversee stakeholders to develop strategies that foster efficient buildings. 153
the auditing and certification of buildings has generated 68 new Voluntary initiatives, like the SBCP, help generate support for
jobs.143 more comprehensive policies, and will play an important role in
accelerating their uptake.
Reduced property and payroll taxes, along with lower energy and
water bills, help incentivize participation. The program’s auditing
and monitoring components enable participants to closely
track their personal return on investment. Participation in the
SBCP also leads to increased access to project financing and

31
 CHAPTER 3

LAGOS
About the City
Population: 16 millioncxli
(metro area)
GDP: US $136 billioncxlii
Land Area: 999.6 km2 cxliii

Current situation:
Nigeria’s 7,500 MW power supply
lags behind the estimated
GDP
170,000 MW demand,
costing the region 2-4% of its annual GDP

R Small and medium enterprises...

9 out of 10 3.5 trillion Naira

... make up ... spend some

Nigerian businesses and (US $9.7 billion) each

contribute over 46% of the year on generator fuel
nation’s GDP

About the initiative

Private companies are making solar energy accessible
and affordable, helping to meet the vast demand for
reliable energy access across Nigeria’s cities.

IN RELATION TO SDGS

Initiative Accomplishments
MTN Mobile Electricity... Solynta...
... brings solar power ... benefits over ... creates ... aims to reach ... reduces

50,000 250,000 450 jobs 10 million

to some businesses fuel
costs by at least

homes, clinics, schools,

and businesses
people in Nigeria. installations
by 2022.
75% .

32
 CASE STUDIES  g

SCALING UP THE SOLAR MARKET | NIGERIA | LAGOS

Solar companies are piloting innovative ways of making solar

energy accessible and affordable, meeting Nigeria’s enormous
market and vast need for energy. The Renewable Energy
Association of Nigeria estimates that 15 MW of solar PV has been
installed across the country, with the potential to harness 4.0 –
6.5 kWh per square mile each day.154 These installations reflect
the diversity of energy needs across Africa’s largest country.
In Lagos, a solar school built through a partnership between
architecture firm NLE Works, the United Nations, and the Heinrich
Boll Foundation floats in the Makoko neighborhood’s lagoons,
providing a gathering place for 100 children.155 Consistent Energy
Limited has focused on winning business from the same city’s might otherwise be overlooked due to a lack of credit history.
stylists, signing up an estimated 200 barber shops for pay-as- This payment models mimic the diesel and kerosene payments
you-go solar systems.156 customers are familiar with, but deliver greater value for the
money. Lumos estimates that the cost of running a diesel
The private sector has been instrumental in deploying and generator for two hours is equivalent to the cost of running
demonstrating the feasibility of distributed solar energy systems. their solar system for a day.165 Solynta, which offers pay-as-you-
The solar start-up Lumos Global, for instance, has partnered with go, along with lease-to-own and direct purchase options, has
Nigerian mobile provider MTN to bring solar power to over 50,000
found that switching to solar reduces business fuel costs by at
homes, clinics, schools, and businesses, benefiting over 250,000
least 75%.166 Solar panels can last for 20 years, extending these
people, and creating 450 jobs.157 This partnership, MTN Mobile
savings far into the future.167
Electricity, aims to reach 10 million installations by 2022.158
Solar energy’s lower costs could unleash additional economic
Working with Nigeria’s largest mobile provider – MTN captures development in Nigeria, where customers spened between
about 39% of the country’s mobile market share159 – makes US $10 – 13 billion on kerosene and diesel fuels each year.168
solar power accessible. MTN Mobile Electricity operates through Bottlenecks in accessing power cost the country 2-4% of its GDP
MTN’s well-established marketing and distribution channels, each year, slowing economic growth, jobs, and investment.169
selling eighty-watt systems, small enough to fit on the back Small and medium-sized enterprises, which make up nine out
of a motorcycle, through approximately 300 MTN locations.160 of ten Nigerian businesses, and contribute over 46% of the
Customers pay for solar service through SIM cards, which most nation’s GDP, are especially affected by a lack of access to reliable
citizens already use or have access to.161 Unlike many East African electricity, spending some 3.5 trillion Naira (US $9.7 billion) each
countries, such as Kenya, Uganda, and Tanzania, where pay- year on generator fuel.170 For many business owners, access to
as-you-go solar models have taken off, the infrastructure and more reliable power translates into the ability to expand their
use of mobile money in many West African countries remains services, grow their businesses, and create more jobs.171
nascent.162 Finding a quick and convenient way for customers to
By illustrating the benefits of solar power to customers, investors,
pay for solar systems, without relying on mobile money, bank
and the national government, companies have helped accelerate
accounts, or credit cards, marks a major step towards the wider
its uptake. Education and outreach efforts have introduced
growth of the market.
solar systems to new audiences.172 Demonstration projects have
From MTN’s perspective, its partnership with Lumos Global helps overcome reputational challenges tied to poorly constructed
it set itself apart from its competitors. Offering a unique service solar options in earlier markets.173, 174
– the ability to purchase solar energy – reduces every mobile Demonstrating the demand for solar energy is also unlocking
company’s greatest worry: that its customers will switch to urgently needed finance. Sixteen companies, supported by £2
another provider. Expanding access to reliable energy also makes
million from the Solar Nigeria Programme, delivered small solar
it easier for customers to charge and use mobile phones.163
light and power systems to 170,000 Nigerian households during
The pay-as-you-go model, employed by MTN Mobile Electricity 2016 alone. By 2020, the initiative aims to reach 5 million homes.175
and a wide range of companies operating in Nigeria, helps In addition to partnerships with philanthropic agencies and
customers overcome scarce access to financing, so that upfront impact investors, solar companies are increasingly attracting their
costs do not prevent them from taking advantage of longer term own investment.176 Lumos Global, for instance, raised a record US
savings.164 Pay-as-you-go solar companies also act, in many $90 million in 2016,177 a hopeful signal that solar companies will
ways, as financial service providers, reaching customers that continue accelerating the delivery of clean, reliable energy.

33
 CHAPTER 3

3.2 GLOBAL 250 GREENHOUSE GAS EMITTERS:

A NEW BUSINESS LOGIC
Non-state actors, especially the private sector, will play a critical strategic shift toward a low carbon future, others have recognized
role in addressing climate change and reducing Greenhouse Gas a new business logic: a historic opportunity for innovation that
(GHG) emissions. Indeed, the 250 companies178 referenced in this drives sustainable growth and competitive advantage.
report, along with their value chains, account for approximately The good news is that some companies in the Global 250, such
one third of global annual emissions.179 For years, the management as Total, Ingersoll Rand, Toyota, Iberdrola, and Xcel Energy, are
teams in many large organizations have recognized the future diversifying and decarbonizing their business models. Their
constraints that climate change could pose on their business plans, begun a decade or more ago, have proven business results
operations and outlook. While many have deferred making a and provide a pathway to a profitable low carbon future that

Table 1: Companies in the Global 250 include the Top 15180 (listed below), which alone account for about 10% of global
annual emissions181, and therefore play crucial roles in our global transition to a low carbon economy182:

GHG Emissions Metric Tons CO2e GHG Revenues Decoupling Employment

Rank (Scope 1+2+3) Index Index Index Index
Company
(2015) Baseline Baseline Baseline Baseline
2016 2015 2014
2014 =100 2014 =100 2014 =100 2014 =100
1 Coal India 2,014,314,687 1,869,412,290 108 105 *97 96.1
2 PJSC Gazprom 1,247,624,306 1,264,855,340 99 106 *107 104.9
Exxon Mobil
3 1,096,498,615 1,145,083,349 96 66 *69 97.6
Corporation
4 Thyssenkrupp AG 950,917,000 954,185,140 954,085,140 100 95 96 96.4
China Petroleum
5 & Chemical 874,153,506 901,550,000 97 71 *74 97.9
Corporation
6 Rosneft OAO 835,868,134 829,849,040 101 94 *93 95.2
7 Cummins Inc. 805,343,388 813,043,062 920,001,660 88 91 104 101.5
PETROCHINA
8 730,924,555 688,790,000 106 76 *71 97.6
Company Limited
9 Royal Dutch Shell 734,160,000 698,868,219 735,119,000 100 55 *56 97.9
10 Rio Tinto 668,246,000 669,751,731 652,023,000 102 71 *69 85.4
China Shenhua
11 643,832,223 733,109,000 88 70 *80 103.0
Energy
Korea Electric
12 634,243,789 666,588,494 95 103 110 207
Power Corp
13 Total 469,545,000 581,900,000 598,400.000 78 60 *77 101.9
Petróleo Brasileiro
14 544,200,903 547,476,491 618,399,435 88 84 *95 85.1
SA – Petrobras
United Technologies
15 401,518,529 530,627,775 530,803,247 76 99 131 95.7
Corporation

Notes: 1) 2014 scope 3 emissions data for Thyssenkrup AG and United Technologies Corporation vary significantly from 2015 scope 3 data; therefore,
the change in scope 1+2 emissions between 2015 and 2014 is used in conjunction with Thyssenkrup AG’s and United Technologies Corporation’s
respective 2015 scope 3 emisssions data to determine scope 3 emissions values for 2014.
2) * indicates a Decoupling Index that is susceptible to fossil fuel commodity prices

34
 GLOBAL 250 GREENHOUSE GAS EMIT TERS  g

a series of investments in SunPower (solar), Saft (battery design),

Stem (energy optimization) and BHC Energy (operational energy
efficiency) Total committed to shifting its revenue base toward
sustainable energy solutions.
Approaching Stage 4: Creating Competitive Differentiation
– In 2014, under the leadership of Patrick Pouyanne, Total’s new
Chairman and CEO, the company fully articulated its strategy to
differentiate itself from other oil companies. Going forward, Total
would build its future business on three strategic pillars:
1) Reducing the carbon intensity of its fossil fuel product mix;
2) Investing judiciously in carbon capture, utilization and storage
stretches to 2050 and beyond. Looking at the Global 250, evidence technologies; and
is accumulating that companies who demonstrate leadership 3) Expanding its business base in “renewables,” which includes
toward a decarbonize economy gain strategic advantages. production, storage and the distribution of clean energy and biofuels.
In 2015, Total exited the coal business. Total’s 2016 reorganization
now drives a focus on renewables and low carbon energy solutions,
CASE STUDY OF TOTAL GROUP183 setting policy support and goals aligned with the IPCC’s 2°C target.
Now let’s take a closer look at one firm’s journey to decarbonize, If Total is to realize the full potential of its competitive advantage
operating in a very challenging business sector: fossil-fuel based in the energy sector, it will need to continue to demonstrate viable
energy. decarbonization pathways consistent with the 2-degree boundary.
France’s Total S.A. (Total)184 is the fourth largest publicly held oil This will require continued rapid growth of its EcoSolutions portfolio
and gas company in the world. The firm is responsible for GHG revenues and leadership among the oil companies as they address
emissions that place it 13th on our list of major emitters. Total the potential challenge of so called “stranded assets.”
is today widely recognized as a leader among major fossil fuel
companies for its vision of a new clean energy future and its
LEADERSHIP TRANSLATES INTO REDUCED GHG IMPACTS
progress on adapting a large, complex business for that future.
The data show leadership. Total has reduced emissions over the
Understanding the complex process of strategy-driven business last three years well ahead of IPCC guidance, with an approximate
transformation requires a framework to connect actions to 20% aggregate decline (or roughly 130 million metric tons) in
outcomes over the long-term. The model presented here was total GHG emissions across all scopes.185 While emissions declined,
adapted from previous work (Lubin & Esty, The Sustainability Total’s carbon intensity saw a 9.2% average annual rate of decline
Imperative, HBR, 2010) to assess a firm’s progress in transitioning in GHG/BOE (greenhouse gas emissions/barrel of oil equivalent),
along a “climate impact management maturity curve.” Total’s between 2013 and 2016, or a cumulative decline of 27.5% from
climate related efforts can be traced back 20 years or more, and the baseline year of 2013.186 Both aggregate emissions and the
this historical review begins with their initial recognition of the GHG intensity of Total’s footprint are falling significantly.
challenges that climate change poses for a major energy company
and the need to address them.
LEADERSHIP REFLECTED IN FINANCIAL OUTCOMES:
Stage 1: Initial Engagement – In 2006, Total was one of the
REDUCED COST OF CAPITAL
first major fossil fuel companies to publicly acknowledge the
importance of climate change as a global risk. Their initial Table 2 provides evidence that Total’s strategy, along with their
efforts focused on implementing cost-effective approaches to ability to execute it, is already generating value for the firm.
significantly reduce flaring gas emissions. Thomson Reuters’s Eikon platform displays Total’s peer-leading
credit rating, represented by the blue dot in the peer-scatterplot
Stage 2: Systematic Management – By 2008, Total lead
below. This is a significant advantage in the capital-intensive
other major oil companies in systematic reporting of GHG and
energy sector. As Total continues to extend its climate impact
climate-related performance metrics, including product use, and
leadership with more renewable and low carbon solutions, the
included initial target setting for improvements in the company’s
increasing value of its transformed green product portfolio is
operational footprint.
likely to significantly outpace the potential declining value of its
Stage 3: Transforming the Core – In 2009, Total launched traditional high carbon products.
EcoSolutions, its low carbon products and services portfolio. With

35
 CHAPTER 3 GLOBAL 250 GREENHOUSE GAS EMIT TERS  g

Table 2: Credit ratings among Total and its leading competitors, showing Total’s competitive advantage on this metric.

PEER COMPARISON EDIT PEERS

Model Agency Component Scores

Probability
RIC Company Name Model Score Implied S&P/ Structural SmartRatios Text Mining
of Default
Rating Moody‘s Model Model Model
TOTF.PA Total SA 75 0.05% A+ A+/- 71 47 51
Royal Dutch
RDSb.L 63 0.06% A A+/- 60 39 27
Shell PLC
ENI.MI Eni SpA 37 0.11% BBB BBB+/Baa1 39 12 29
BPL BP PLC 33 0.12% BBB A-/A1 39 7 43
REP.MC Repsol SA 49 0.09% A- BBB-/Baa2 53 18 30
STL.OL Statoil ASA 37 0.11% BBB A+/- 36 16 16
Galp Energia
GALP.LS 80 0.04% A+ -/- 51 79 75
SGPS SA
CVX.N Chevron Corp 72 0.05% A+ AA-/Aa2 87 37 50
Peer Avg. 56 0.08% BBB+ A-/A3 55 32 40

Source: Starmine, Thomson Reuters Eikon

Model Implied The full “Global 250 Report, A New Business Logic”, provides
Rating answers to the following questions as a changing climate
AAA disrupts markets and ecosystems:
AA 1) Who are the 250 public companies and value chains which are
A responsible for the largest emissions of greenhouse gases?
BBB
2) Among this critical group, how are emissions trending by
BB
company over the past 3 years?
B
CCC 3) Is there evidence that decarbonization creates a drag on
CC financial performance, or a premium?
C 4) Given the long-term transformation challenge confronting
C CC CCC B BB BBB A AA AAA these large emitters, how can we assess a company’s progress
Agency Rating Average and define leadership?
5) How are policy and investor leadership evolving in a post-
carbon economy?
This section has been contributed by “David Lubin, Constellation
Research and Technology; John Moorhead, BSD Consulting; The report will be available at: https://blogs.thomsonreuters.com/
Timothy Nixon, Thomson Reuters. sustainability.

The case studies featured in this chapter highlight the diverse 2030 Agenda’s Sustainable Development Goals. Continued action
benefits that renewable energy and energy efficiency activities across both developed and developing countries will also be
generate. These projects have catalyzed economic growth vital to meeting the Paris Agreement’s targets, and protecting
across all levels of development, creating opportunities for small these development gains. Partnerships among cities, regions,
construction firms and multinational companies. In improving companies, civil society, and national governments can help
air quality, reducing pollution, expanding energy access, and leverage these actors’ respective strengths, to further accelerate
creating jobs, RE and EE efforts move the world closer to the the development of RE and EE solutions.

36
CHAPTER 4 1.5°C- AND 2°C-COMPATIBILIT Y  g

4
1.5°C- AND 2°C-COMPATIBILITY:
A NEW APPROACH TO CLIMATE ACCOUNTING

This chapter outlines a new approach that can be used to determine the compatibility of
policies, individual projects, and entire sectors with scientific scenarios that limit global
temperature rise to 1.5°C and 2°C. It provides sector-level compatibility tables and project-
level guidance, and demonstrates how these criteria could be applied to individual RE and
EE projects. Applying these compatability conditions to internationally supported RE and
EE projects can help identify and develop specific policy recommendations to create the
local and national conditions necessary for 1.5°C and 2°C-compatible pathways.

Mexico City, Mexico

Mexico City is greening

its building sector
through a combination
of policy incentives
and reforms.

R Details see page 30

 CHAPTER 4

The final chapter of the 1 Gigaton Coalition 2016 report, “Chapter 4.1 DEVELOPING 1.5°C AND 2°C-COMPATIBILITY
6: A Path Forward: New Concepts for Estimating GHG Impacts,”
suggested an alternative approach to assessing climate outcomes
CONDITIONS
at the project and sector levels. In addition to the problematic A growing community of scientists, researchers, and policymakers
exercise of developing a counterfactual baseline (i.e., a business- have begun to develop metrics to assess sectors, companies,
as-usual scenario reflecting what would have happened in the projects, and policies for their compatibility with global climate
absence of specific policy intervention or technology adoption), targets. The Climate Action Tracker (CAT), a scientific analysis
national governments’ Paris pledges or nationally-determined produced by three independent research organizations –
contributions (NDCs) often overlap with other actions within NewClimate Institute, Ecofys, and Climate Analytics – last year
countries, making it difficult to attribute specific emissions produced a list of ten short-term global targets that sectors
reductions to partner-supported activities. need meet in order to limit warming to 1.5°C. These goals include
building no new coal-fired power plants and reducing emissions
For renewable energy (RE) projects, evaluating whether a
from coal by 30% by 2025; ending the production of fossil fuel
technology or policy is compatible with science-based 1.5°C and
2°C scenarios can be straightforward. A wind farm, for instance, cars by 2035; constructing only fossil-free or near-zero energy
that offsets equivalent fossil-fuel based emissions from grid buildings and quintupling renovation rates of existing structures
electricity would be 2°C-compatible. Energy efficiency (EE) by 2020; and achieving 100% renewable energy penetration in
projects are less straightforward: a certified zero energy house electricity production by 2050.187
under the passive house standard is, for example, more in line Earlier this year CAT joined forces with a consortium of other
with 2°C development than an energy efficient house that just research groups convened by former UNFCCC chair Christiana
exceeds current building standards. Secondary effects, however, Figueres to produce an analysis of five of the heaviest emitting
will also need to be taken into consideration. If a bioenergy sectors. The resulting report, called “2020: The Climate
project leads to adverse land use effects and increased emissions Turning Point” and published under the collaborative’s name
through deforestation then this project may not be in line with “Mission2020”, isolates short-term, sectoral targets that are
a 2°C pathway. These significant secondary effects may not necessary to meet the long-term 2°C climate goal. Giving context
be captured using the GHG emissions reductions accounting to CAT’s list of ten sectoral targets, the Mission2020 report
method employed in the first two 1 Gigaton Coalition reports. shows that these targets are achievable under current conditions
This chapter outlines a new approach that can be used to and that meeting them would produce desirable economic and
determine the compatibility of policies, individual projects, human health outcomes.188
and entire sectors with scientific scenarios that limit global Sector-level targets are key tools for governments and
temperature rise to 1.5°C and 2°C. Drawing from other research policymakers to plan, assess, and implement climate actions
initiatives and the International Energy Agency’s (IEA) 2017 in reference to 1.5°C or 2°C goals. Applying global, sectoral
Energy Technologies Perspective (ETP) report, this chapter objectives at the project level, however, requires another layer of
presents criteria for 1.5°C and 2°C-compatibility at the sector analysis that incorporates a host of local considerations. Factors
level. It also demonstrates how these criteria could be applied
to RE and EE projects, drawing examples from the RE and
EE database compiled for this report. Creating 1.5°C- and
2°Ccompatibility conditions and applying these standards to
internationally supported RE and EE projects opens the door for
researchers to make key inferences and conclusions, including:
g E valuation of local and national conditions necessary for 1.5°C
and 2°C-compatible pathways.
g  etermination of additional efforts needed to make projects
D
1.5°C and 2°C compatible.
g  evelopment of specific policy recommendations to address
D
project- and sectorlevel issues that create 1.5°C and
2°C-incompatibilities.
g S ector level aggregation of emissions outcomes and resulting
policy implications.

38
 1.5°C- AND 2°C-COMPATIBILIT Y  g

pertaining to a locality’s policies, economy, development level, 2°C-compatibility and how these thresholds change over
energy mix, and deployed technologies need to be examined time. This process can also include decision trees and scoring
in order to develop appropriate and rigorous goals that are methodologies that help lay-persons use the compatibility
compatible with 1.5°C or 2°C pathways. method. Central to creating positive and negative lists are the
conditions that must be met to classify a project to either side.
Science Based Targets (SBT) is a leading international initiative
that strives to assess the complex conditions that determine 2°C Developing these conditions requires the distillation of complex
compatibility at the firm or project level, helping private companies information into a malleable and understandable format.
set their own science-based climate targets. A collaboration This balance of complexity and practicability is perhaps the
of the Climate Disclosure Project (CDP), United Nations Global compatibility approach’s greatest strength.190
Compact, World Resources Institute (WRI), and World Wildlife To develop meaningful compatibility conditions and positive
Fund (WWF), and with technical support from Ecofys, SBT aims and negative lists requires robust and current science. The IEA’s
to institutionalize climate target setting among firms in every Energy Technology Perspectives 2017 (ETP) provides the scientific
sector. SBT considers GHG emission reduction targets to be backbone for this report’s compatibility criteria as it also does for
“science-based” if they align with a level of decarbonization that SBT’s analytical tools.191 ETP features three scenarios through the
the international scientific community has deemed necessary to year 2060: a Reference Technology Scenario (RTS), representing
keep global temperature rise below 2°C. Using at least one of energy and climate commitments made by countries, including
SBT’s seven methods for setting emission targets, 293 companies Nationally Determined Contributions (NDCs) pledged under
have applied to have their climate benchmarks verified, of which the Paris Agreement; a 2°C Scenario (2DS) and a Beyond 2°C
SBT has approved 61 firms’ science-based targets. Scenario (B2DS), which feature rapid decarbonisation measures,
The NewClimate Institute has also pioneered 2°C-compatibility creating pathways that align with long-term climate goals. RTS
methods and in November 2015 published a report, “Developing illustrates explicit international ambitions, which do not produce
2°C-Compatible Investment Criteria”, in which the authors emissions reductions compatible with stated global climate
outline a methodology for investors to evaluate whether objectives. RTS would nonetheless represent a large emissions
their investments are compatible with a science-based 2°C cut from a historical “business as usual” scenario. 2DS and B2DS
scenario.189 Distilling complex science and policy issues into are centered around 2°C and 1.75°C pathways, respectively, and
easy-to-understand “positive” and “negative” lists, NewClimate depict scenarios in which clean energy technologies are pushed
shows how investors could apply a compatibility approach to to practical limits. These scenarios align with some of the most
the projects they finance. Employing positive and negative lists ambitious aspirations outlined in the Paris Agreement.
that use quantitative and qualitative conditions to determine
This report synthesizes current research on climate compatibility
a project or sector’s climate compatibility offers some relative
and incorporates targets from ETP’s 2DS and B2DS to create
advantages to a counterfactual baseline approach.
sector-level 1.5°C- and 2°C-compatibility criteria and conditions.
A positive and negative list approach incorporates minimum Demonstrating how one could apply these conditions to RE and
and dynamic quantitative benchmarks, giving clear markers of EE initiatives, graphical and flow-chart schematics are provided

39
 CHAPTER 4

for guidance, and an example project is drawn from a database of 4.2 COMPATIBILITY TABLES
bilateral- and multilateral-supported projects that was compiled
for this report. The challenges inherent to this approach are
Key factors to consider when reading the sectoral Compatibility
discussed, as well as how one might overcome these issues and
Tables (Tables 3.1 – 3.15):
the policy implications of results.
g  ll compatibility conditions must be met for a sector to be
A
In May of 2017, the 1 Gigaton Coalition convened a meeting of
positive listed (i.e. compatible).
climate policy experts in Bonn, Germany, initiating a dialogue to
inform the development of 1.5°C- and 2°C compatibility criteria. g Yet the suites of conditions in this analysis do not mean to be
Dialogue participants evaluated questions prepared by this comprehensive: there may be other conditions or a suite of conditions
report’s authors and discussed research challenges. This section that must be met under alternative 1.5°C and 2°C scenarios.
strives to address all of the most pertinent issues that came to g 1 .5°C compatibility conditions are inclusive of 2°C conditions
the fore through the Bonn dialogue. Many of the challenges unless otherwise noted.
inherent to 1.5°C- and 2°C-compatibility are addressed in Tables
3.1 – 3.15 below, and potential methods for tackling those beyond
g 1 .5°C and 2°C compatibility conditions are combined for some
the scope of this analysis are discussed. sectors depending on data availability – this analysis does not
distinguish between 1.5°C and 2°C compatibility in these cases.
Sector-level 1.5°C- and 2°C-compatibility tables were developed.
The tables are categorized by sector, including by RE technology
g E nabling policies are considered to be required for positive listing,
type and various sectors that are grouped under EE, a broad except in instances in which effective proxy policies are in place.
categorization encompassing transportation, buildings, and g  onditions are considered met when sectors, firms, or policies
C
industry. Sectors are divided into sub-sectors where data demonstrate alignment with long-term, global targets. See
availability allowed. There are clear science-based targets, for Figures 7 – 10 for illustrations of this alignment.
instance, for rail, shipping, and aviation, allowing the creation of
compatibility criteria for these transportation sub-sectors. The
tables do not represent every societal sector – agriculture, for
example, is missing, as is hydropower. The compatibility analysis
is therefore limited to this project’s research scope as well as to
the availability of scientific information. The tables are tools for
assessing 1.5°C- and 2°C compatibility and they are also proofs
of concept that can and should be expanded upon to the limits
of current scientific knowledge.
The compatibility conditions in each table were largely drawn
from the IEA’s ETP 2017 and its 2DS and B2DS models. ETP’s sectoral
targets were cross-referenced with other scientific sources, and
were in some cases altered according to the researcher’s judgement.
It should be noted that ETP’s 2DS and B2DS models correspond to
a 50 percent chance of limiting temperature increases to 2°C and
1.75°C, respectively, by the year 2100. This level of uncertainty carries
over to the compatibility tables and should inform the perspective
of those undertaking any science-based compatibility approach. In
this analysis, the 1.5°C sectoral targets do not correspond precisely
to 1.5°C of warming. The 1.5°C conditions are rather aspirational
targets that align with a level of warming at least 0.25°C below 2°C.
It would imply a false level of certainty to assert that the emissions
targets and warming trajectories in this analysis precisely align with
1.5°C or 2°C of warming. There are also drawbacks inherent to using
one report, ETP, as the backbone of the analysis. The compatibility
conditions are, however, based on the most current and robust
science available, and it is believed they provide the best estimate
for 2°C and below 2°C pathways.

40
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Table 3.1. Renewable energy-powered electricity production aggregate sector-level 1.5°C- and 2°C-compatibility conditions.

Renewable Power:
Compatibility Conditions Enabling Policies
Aggregate

RE accounts for 72% of global energy mix Carbon pricing.

by 2060.
Renewable power investment incentives.
Electricity accounts for ~35% final energy
demand by 2060.
Transparent disclosure of climate vulnerability
$61 trillion cumulative investment to to investors and stakeholders.
decarbonize power sector – 2/3 of this
investment in non-OECD countries. Policies promoting systemic integration.
$34 trillion of investment goes to renewable
power generation technologies (tripling of Retirement of coal-fired power facilities.
annual average).
Early retirement of coal-fired power plants. Shift of investment priorities from coal-fired
power to renewables, natural gas, and CCS
Annual investment in transmission doubles

2°C
technologies.
by 2025 compared to 2014. >2,000 GW
transmission capacity deployed by 2060.
Large-scale R&D and deployment of
electricity storage technologies.
R&D and deployment of carbon negative
technologies including BECCS, which achieves
2% share of electricity generation by 2060.
Deployment of comprehensive demand-side
management systems.
Variable renewable energy integration with
natural gas baseload systems.
Triple investment in interconnected high-
voltage transmission from 2015 levels by 2025.
Power sector achieves near-full decarbonization
by 2050.

Accounts for 75% of energy mix by 2060.

1,000 PWh cumulative RE electricity
generation through 2060.
Electricity accounts for >40% final energy
demand by 2060.

1.5°C
Power sector achieves full decarbonization by
2050 and is carbon negative thereafter.
CCS systems account for >10% of total
electricity production by 2050 (including BECCS).
BioEnergy with CCS achieves 4% share of
electricity generation by 2060.
Nuclear has 15% share of electricity
generation by 2060.

41
 CHAPTER 4

Table 3.2. Renewable energy-powered electricity production disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Renewable Power: Sectors Compatibility Conditions Enabling Policies

Photovoltaics (PV) Carbon pricing.

Achieves 17% of energy mix by 2060.
Renewable power investment incentives.
 1,000 TWh of annual power produced
>
by 2025.
Transparent disclosure of climate vulnerability
4 ,400 GW capacity by 2050; to investors and stakeholders.
6,700 GW capacity by 2060.
4x increase in annual capacity additions Policies promoting systemic integration.
by 2040.
Investment costs for GW capacity decrease Retirement of coal-fired power facilities.
by two-thirds by 2060 compared to 2015.

SOLAR  11 trillion cumulative investment

$
through 2060.
Shift of investment priorities to from coal-
fired power to renewables, natural gas, and
CCS technologies.
Solar Thermal
Achieves 10% energy mix by 2060.
160 TWh of annual power produced by 2025.
Increased deployment for industrial
applications.
$
 6 trillion cumulative investment
through 2060.

20% of energy mix by 2060.

 nshore: 2,400 TWh annual power
O
produced by 2025.
 ffshore: 225 TWh annual power
O
produced by 2025.
10,500 TWh produced by 2060.

WIND 3,400 GW capacity by 2050.

4,200 GW capacity by 2060.
Investment costs per GW capacity decrease
by ~18% compared to 2015.
 11 trillion cumulative investment
$
through 2060.

24% of energy mix by 2060.

E nergy output doubles to around 145 EJ
by 2060.

BIOENERGY
Increased integration of advanced biomass
with industrial processes.
100% sustainably sourced by 2060.
Net negative carbon source by 2060.

220 TWh annual power produced by 2025.

Increased integration with industrial
processes.
GEOTHERMAL

42
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Table 3.3. Industry aggregate sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Aggregate Compatibility Conditions Enabling Policies

Global direct emissions from industry are Energy and material efficiency standards.
halved by 2060.
Immediate adoption of ISO-certified energy Policies that improve scrap collection and
management system (EMS). recycling rates.

Industrial energy consumption growth

Incentives for BAT adoption.
limited to 0.3% annually (~90% decrease
from 2000 - 2014 average).
Remove fossil fuel subsidies.

2°C
~30% improvement in industrial energy
intensity by 2060.
Catalyzing investment for R&D and
Demonstrated BAT implementation. commercialization of new technologies.
Portion of fossil fuel sources declines by >4%
annually through 2030. Improve data reporting and collection.

Shift toward higher proportion of renewables-

Carbon pricing.
powered electrification (on- and off-site) as
end-use energy source.
Large scale shifts in investment.
Improved material yields across supply chain;
improved inter-industry material efficiencies.
Develop advanced life-cycle assessments for
industrial inputs and products.
Global direct emissions from industry are
reduced by 80% by 2060.
Industrial energy consumption growth limited
to 0.2% annually (>90% decrease from 2000
– 2014 average).
>30% improvement in industrial energy

1.5°C
intensity by 2060.
Demonstration of zero- and negative- carbon
technologies.
Proportion of fossil fuel sources declines by
>7% annually through 2030.
Electrification in industrial operations
increases ~27% by 2060 and electrical power
use is 98% decarbonized by 2060 compared
with present levels.

43
 CHAPTER 4

Table 3.4. Industry: cement disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Cement Compatibility Conditions Enabling Policies

Direct carbon intensity decreases by Energy and material efficiency standards.

~10% by 2030.
10% carbon captured by 2030 towards 30% Policies that improve scrap collection and

2°C
captured by 2060. recycling rates.

Diminished use of coal as source of energy for Incentives for BAT adoption.
cement production, so coal is <50% of energy
mix by 2060. Remove fossil fuel subsidies.
Increase use of cement clinker substitution
materials. Catalyzing investment for R&D and
commercialization of new technologies.
Direct carbon intensity decreases by >20%
by 2030. Improve data reporting and collection.

1.5°C
25% carbon captured by 2030 towards
>75% captured by 2060. Carbon pricing.

Diminished use of coal as source of energy Large scale shifts in investment.

for cement production, so coal is one-third of
energy mix by 2060. Develop advanced life-cycle assessments
10% reduction in clinker ratio by 2060. for industrial inputs and products.

Table 3.5. Industry: iron and steel disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Iron and Steel Compatibility Conditions Enabling Policies

30% reduction in CO2 intensity of crude steel Energy and material efficiency standards.
production by 2030 compared with 2014.
Aggregate energy intensity of crude steel Policies that improve scrap collection and
production reduced by 25% by 2030 recycling rates.
compared with 2014 levels.

2°C
Incentives for BAT adoption.
>10% carbon captured by 2025 towards 40%
captured by 2060.
Remove fossil fuel subsidies.
50% of energy used for crude steel
production is from electricity, natural gas, and
Catalyzing investment for R&D and
sources other than coal by 2060.
commercialization of new technologies.
Improved metal scrap reuse and recycling;
towards 100% end-use scrap recycling. Improve data reporting and collection.

>90% reduction in annual emissions by 2060. Carbon pricing.

50% reduction in CO2 intensity of crude steel
production by 2030 compared with 2014. Large scale shifts in investment.
Aggregate energy intensity of crude steel

1.5°C
production reduced by one-third by 2030 Develop advanced life-cycle assessments
compared with 2014 levels. for industrial inputs and products.
>20% carbon captured by 2025 towards 80%
captured by 2060.
>50% of energy used for crude steel
production is from electricity, natural gas, and
sources other than coal by 2060.

44
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Table 3.6. Industry: chemicals and petrochemicals disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Chemicals
Compatibility Conditions Enabling Policies
and Petrochemicals

Annual emissions < 1 GtCO2 in 2060. Energy and material efficiency standards.
Depending on chemical produced, emissions
intensity decrease by between ~15% and 40% Policies that improve scrap collection and
by 2030. recycling rates.

2°C
Reduced aggregate energy intensity;
Incentives for BAT adoption.
amount reduced depends on energy
expenditure on CCS.
Remove fossil fuel subsidies.
>15% carbon captured by 2025 towards
30% captured by 2060.
Catalyzing investment for R&D and
Waste plastic recycling increases to >40% commercialization of new technologies.
by 2060.
Improve data reporting and collection.
Annual emissions decrease by 70% from 2015
levels by 2060 (reaching ~320 Mt CO2 ). Carbon pricing.

1.5°C
Depending on chemical produced, emissions
intensity decrease by between ~25% and 60% Large scale shifts in investment.
by 2030.
>25% carbon captured by 2025 towards Develop advanced life-cycle assessments for
90% captured by 2060. industrial inputs and products.

Table 3.7. Industry: pulp and paper disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Pulp and Paper Compatibility Conditions Enabling Policies

CO2 intensity is cut by ~40% by 2030 and Energy and material efficiency standards.
reduced by ~75% by 2060 compared to 2014
levels. Policies that improve scrap collection and
28% reduction in energy intensity by 2060 recycling rates.

2°C
compared to 2014 levels.
Incentives for BAT adoption.
Deployment of Best Available Technologies
(BAT) as well as low-carbon and CCS Remove fossil fuel subsidies.
technologies.
Substitute heat, biomass, and electricity for Catalyzing investment for R&D and
fossil fuel energy supply. commercialization of new technologies.
66% end-use paper product recycling by 2060.
Improve data reporting and collection.
CO2 intensity is cut in half by 2030 and
reduced by >90% by 2060 compared to 2014 Carbon pricing.

1.5°C
levels.
Large scale shifts in investment.
30% reduction in energy intensity by 2060
compared to 2014 levels. Develop advanced life-cycle assessments
66% end-use paper product recycling by 2060. for industrial inputs and products.

45
 CHAPTER 4

Table 3.8. Buildings aggregate sector-level 1.5°C- and 2°C-compatibility conditions.

Industry: Buildings Compatibility Conditions Enabling Policies

Specific building energy use between Mix of policy and financial incentives
10 - 150 kWh/m2 or under 4 MWh/person. and requirements for energy efficient
construction, deep renovations, and BAT
1.5% annual improvement in building
uptake.
envelope performance.
Limit global energy demand to 130 EJ. Strong Mandatory Energy Performance (MEP)
Shift to electrification to supply ~70% of final targets for all buildings and financial penalties
energy consumption in buildings globally by for substandard performance.
2060.
Upfront financial incentives (e.g. rebates, tax
Renewables (on- and off-site) supply >85% of

2°C
breaks, guaranteed loans).
final energy consumption by 2060.
Shift to BAT electric heat pumps in temperate Comprehensive support for BATs.
climates.
Aim to achieve 350% efficiency improvement Special emphasis given to heating and cooling
in cooling equipment and 120% efficiency demand efficiency in cold and hot climates,
improvement for heating equipment, with respectively.
further improvements through 2060.
Immediate scaling up to 3% renovation rate In countries with large portion of 2060
(global average). building stock to be new construction, MEPs,
integrated efficiency policies, and incentives
Retrofits improve energy intensity by at least for near-zero energy building construction
30% with plan to move to “near-zero” energy (nZEBs) are given weight.
use.
In countries with large portion of 2060
Specific building energy use under building stock already built, renovation
3.5 MWh/person. policies are given weight.
Decrease energy demand by around 0.2%
annually through 2060 to around 114 EJ. Integrated urban planning that encompasses
Shift to electrification to supply ~70% of final construction that increasing building
lifetime and reducing secondary and tertiary

1.5°C
energy consumption in buildings globally and
near total elimination of fossil power. emissions.

Renewables supply >95% of final energy Policies designed to develop a robust market
consumption. for high-efficiency building construction,
Immediate scaling up to 5% renovation rate renovations, and BAT uptake.
(global average).
Retrofits improve energy intensity by at least
50% with plan to move to “near-zero”
energy use.

46
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Table 3.9. Transportation aggregate sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Aggregate Compatibility Conditions Enabling Policies

54% GHG reductions by 2060 compared to Regulatory GHG targets at national and
2015 (75% in OECD countries; 29% in non- international level.
OECD countries).
Fuel, technological, and material efficiency

2°C
Move toward electrification, biofuels, and full standards.
decarbonization by 2060.
Mandates and financial incentives/support for
Efficiency improvements (systemic, BAT adoption.
technological, material, and fuel) that reduce
Elimination of fossil fuel subsidies.
life-cycle energy intensity by more than half.
Carbon pricing and fuel taxes.
Intermodal shifts (e.g. replace aviation with
high speed rail). Regulations and financial incentives
supporting transition to zero-emission vehicles
83% GHG reductions by 2060 compared to and electrification of transport modes.
2015 (95% in OECD countries; 72% in non- Alternative fuel development and
OECD countries). technological R&D.

1.5°C
Demand management.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization on
policy effectiveness.

Table 3.10. Transportation: Bus disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Bus Compatibility Conditions Enabling Policies

Large-scale adoption of electric engines and Regulatory GHG targets at national and
other zero-emission technologies. international level.

2°C
Implementation of negative cost efficiency Fuel, technological, and material efficiency
measures, including technological upgrades. standards.
Intermodal shifts from light-duty vehicles Mandates and financial incentives/support for
(LDV) to buses. BAT adoption.
Passenger kilometers more than double Elimination of fossil fuel subsidies.
through 2060.
Carbon pricing and fuel taxes.
80% energy efficiency improvement by 2060 Alternative fuel development and
(urban). technological R&D.
47% energy efficiency improvement by 2060 Regulations and financial incentives
(intercity). supporting transition to zero-emission

1.5°C
vehicles and electrification of transport modes.
Passenger kilometers nearly triple through
2060. Demand management.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization on
policy effectiveness.

47
 CHAPTER 4

Table 3.11. Transportation: Rail disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Rail Compatibility Conditions Enabling Policies

Full electrification by 2060. Regulatory GHG targets at national and

international level.
Passenger kilometers more than triple through

2°C
2060. Fuel, technological, and material efficiency
standards.
Intermodal shifts from aviation and LDV to
high-speed rail and light rail. Mandates and financial incentives/support for
BAT adoption.
Rail’s share of transport activities increases
from 10% to 15%. Elimination of fossil fuel subsidies.
Carbon pricing and fuel taxes.
100% light rail electrification by 2045.
Regulations and financial incentives
Passenger kilometers increase sixfold through supporting transition to zero-emission vehicles
2060. and electrification of transport modes.

1.5°C
Rail’s share of transport activities about Demand management.
doubles from ~10% to ~20%.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization on
policy effectiveness.

Table 3.12. Transportation: Aviation disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Aviation Compatibility Conditions Enabling Policies

50% reduction from 2005 levels by 2050. Regulatory GHG targets at national and
international level.
70% reduction in direct emissions by 2060,
without offsets. Fuel, technological, and material efficiency
standards.
Shift to ~70% advanced biofuels by 2060.
Mandates and financial incentives/support for
2.5% annual reduction in specific energy use
BAT adoption.
per passenger kilometer.

2°C /
Elimination of fossil fuel subsidies.
Intermodal shifts away from aviation toward
high speed rail. Carbon pricing and fuel taxes.
Regulations and financial incentives
supporting transition to zero-emission vehicles

1.5°C
and electrification of transport modes.
Alternative fuel development and
technological R&D.
Demand management.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization on
policy effectiveness.

48
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Table 3.13. Transportation: Shipping disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Shipping Compatibility Conditions Enabling Policies

Steady emissions through 2030. Regulatory GHG targets at national and

international level.
25% emissions reduction through 2060.
Fuel, technological, and material efficiency
2.8% annual reduction in specific energy
standards.

2°C
use per tonne kilometer through 2060.
Mandates and financial incentives/support
62% improvement over 2010 levels in energy
for BAT adoption.
per efficiency by 2060 (except only 53% for
container ships). Elimination of fossil fuel subsidies.
Continuous ship capacity growth through Carbon pricing and fuel taxes.
2060: container ships 0.9%; bulk carriers
Regulations and financial incentives
0.4%; general cargo 0.6% (annual rates).
supporting transition to zero-emission vehicles
and electrification of transport modes.
Emissions reductions beginning in 2020;
50% reductions through 2060. Alternative fuel development and
technological R&D.
Shift to 50% advanced biofuels by 2060.
Broad retrofit program.

1.5°C
Demand management.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization on
policy effectiveness.

Table 3.14. Transportation: Trucking disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation: Trucking Compatibility Conditions Enabling Policies

78% reduction in road freight emissions Regulatory GHG targets at national and
by 2060, compared to 2015. international level.

2°C Ultra-low and zero-carbon engines achieve

majority share in global trucking fleet by 2050.
Large-scale logistics and vehicle utilization
Fuel, technological, and material efficiency
standards.
Mandates and financial incentives/support
improvements. for BAT adoption.
Elimination of fossil fuel subsidies.
>78% reduction in road freight emissions
by 2060, compared to 2015. Carbon pricing and fuel taxes.
>20% energy supplied by low-carbon fuels Regulations and financial incentives
by 2060 with complimentary zero-emission supporting transition to zero-emission vehicles

1.5°C
technologies. and electrification of transport modes.
Demand management.
Intermodal and systemic planning.
R&D support for zero- and negative-emission
technologies and infrastructure.
Systemic data collection and organization
on policy effectiveness.

49
 CHAPTER 4

Table 3.15. Transportation: Light-duty vehicles disaggregated sector-level 1.5°C- and 2°C-compatibility conditions.

Transportation:
Compatibility Conditions Enabling Policies
Light-Duty Vehicles

30% fuel efficiency improvement in all Regulatory GHG targets at national and
new cars in OECD countries by 2020. international level.

2°C 50% fuel efficiency improvement in

all new cars globally by 2030.
50% fuel efficiency improvement in all cars
Fuel, technological, and material efficiency
standards.
Mandates and financial incentives/support
globally by 2050. for BAT adoption.
Elimination of fossil fuel subsidies.
>50% of LDVs are non-combustion engine
vehicles by 2050. Carbon pricing and fuel taxes.
90% of all cars are plug-in hybrids. Regulations and financial incentives
supporting transition to zero-emission vehicles
All new vehicles by 2030 will have fuel and electrification of transport modes.
efficiency equal to 4 litres per 100 km (in
accordance with the Worldwide harmonized Policies that increase cost of ownership
Light vehicles Test Procedure (WLTP)). of petroleum LDVs and decrease cost of

1.5°C
ownership of zero-emission LDVs.
40% of all new vehicles of all kinds are
“ultra-low” or “zero emission” by 2030. Demand management.
13% of new LDVs are PEVs in OECD and Intermodal and systemic planning.
China by 2020; 32% by 2030. R&D support for zero- and negative-emission
>70% of all energy use by LDVs is electric technologies and infrastructure.
by 2060. Systemic data collection and organization
Electric driving share for plug-in hybrid electric on policy effectiveness.
vehicles (PHEVs) increase to 50% by 2020 and
80% by 2030.

4.3 PROJECT-LEVEL COMPATIBILITY

Assessing project level compatibility with 1.5°C- and 2°C
goals is a significantly more challenging task than establishing
sector level targets. To determine an individual project, firm, or
policy’s compatibility with global climate goals requires greater
subjectivity than do appraisals of sectors, as one must consider
local heterogeneity – a mix of factors that high-level targets do
not specifically address. Actions are undertaken at the local level,
and a compatibility analysis strives to link these actions, with all
their particularities, to global phenomena. Development level is
perhaps the most challenging local factor to account for.
Every project or policy takes shape in a particular development
context, with financial, economic, technological, and knowledge
barriers that can vary greatly from country to country and case
to case. Development trajectories also differ greatly depending
on locality, and these trajectories are crucially important to
determining 1.5°C- and 2°C-compatibility pathways. Reconciling
climate goals with national and international development
priorities is a critical component of 1.5°C- and 2°C-compatibility
analyses, and this process remains a difficult hurdle for many
countries to overcome.

50
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Figure 6: Graphical schematic showing how projects of the same type in separate development contexts could achieve
1.5°C- or 2°C-compatibility.

Compatibility metric
(e.g. Carbon Intensity)
Project A in
Developing
Country B

Current global average

Project X in
Developing
Country Y

2030 Global Target

2060 Global Target

Year 2017 2030 2060

Source: Authors, 1 Gigaton Coalition Report 2017

Figures 7 - 10 present a suite of schematics that illustrate how

a project, firm, policy, sector, or nation could demonstrate
1.5°C- and 2°C-compatibility and become positive listed. In this
analysis, complete access to information – on project inputs and
operations, for instance – is prerequisite for any policy, project,
or entity to be positive listed. In the schematics, nations, sectors,
and projects employing best available technologies (BATs) and
producing output at or near maximum efficiency are considered
“high efficiency” and are held to stricter conditions than “low
efficiency” activities. Nations and sectors with adequate
resources – including all OECD countries and sectors therein –
would be required to have in place a plan for resource sharing
with less developed countries, sectors, and project implementers
in order to achieve positive listing. Precise resource sharing levels
would have to be determined on a case by case basis, requiring
climate policy experts and scientists to facilitate international
cooperation. These schematics underscore the importance of both
quantitative and qualitative criteria when determining 1.5°C- and
2°C compatibility. Rather than supplanting human judgment, this
exercise shows the need for subjective decisionmaking, as most
project and sectoral compatibility hinges on transparent and
actionable planning as well as complex, cross-sector interactions
that are not captured in this report’s tables and schematics.

51
 CHAPTER 4

Figure 7: Decision tree schematic that could inform whether a sector or nation is positive listed for 1.5°C- or 2°C-compatibility

Sector / Nation X

Low Efficiency* High Efficiency

Meets global targets Exceeds global targets

NO YES NO YES

Transparent, actionable Resource sharing

plan to meet/exceed 2030 targets?
YES NO
NO YES
Transparent, actionable plan
for resource sharing?
Negative
listed
YES NO

Negative listed

Conditional positive listed Positive listed

* Characterized by low income and rapid development trajectory, limited use of BATs

Note that sectors in high efficiency, developed national contexts All nations or sectors that currently meet or exceed global
would have to exceed global targets to be positive listed, thereby targets would have to demonstrate a transparent, actionable
balancing out less efficient sectors in developing countries. plan to share resources with those not currently meeting global
targets in order to be positive-listed.

52
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Figure 8: Decision tree schematic that could inform whether a project or policy is positive listed for 1.5°C- or 2°C-compatibility

Project / Policy X

Low Efficiency* High Efficiency

Meets sector targets Exceeds sector targets

NO YES NO YES

Transparent, actionable
plan to meet/exceed 2030 targets?

NO YES

Negative
listed

Conditional positive listed Positive listed

* Characterized by low income and rapid development trajectory, limited use of BATs

Note that projects in high efficiency, developed national contexts

would have to exceed global targets to be positive listed, thereby
balancing out low efficiency projects in developing countries.

53
 CHAPTER 4

Figure 9: A recently-approved Mass Rapid Transit (MRT) project based in Hanoi, was chosen for a demonstration of the
decision tree schematic.

ADB / CTF / AFD / EIB / French and Vitnamese Governments

Mass Rapid Transit in Hanoi, Viet Nam

Low Efficiency High Efficiency

Meets sector targets Exceeds sector targets

NO YES NO YES

Transparent, actionable
plan to meet/exceed 2030 targets?

NO YES

Negative
listed

Conditional positive listed Positive listed

With more than $1.5 billion in approved funding, this project is

jointly supported by the World Bank’s Clean Technology Fund
(CTF), administered via the Asian Development Bank (ADB);
a CTF loan; the Agence Française de Développement (AFD);
the European Investment Bank (EIB); the French government’s
Direction Générale du Trésor; and the Vietnamese government’s
counterpart funds. The project is classified as “low efficiency” due
to its developing nation context, and its location’s general lack
of public transit. With plans to meet daily demand of 157,000
passengers by 2018 and 458,000 passengers by 2038, ADB
estimates that the project will mitigate an average of 33,150 tCO2e
annually through 2038. These demonstrable goals are considered
to meet the sector-level 1.5°C- and 2°C-compatibility conditions
for rail (see Table 1.10), particularly the passenger kilometers
(pkm) metrics (threefold pkm increase for 2°C-compatibility
and sixfold pkm increase for 1.5°C-compatibility). With no MRT
currently running in Hanoi, this project is a massive improvement
on the status quo, especially considering Vietnam’s status as a
low-income nation.192

54
 1.5°C- AND 2°C-COMPATIBILIT Y  g

Figure 10: Approved in 2013, a project supporting the development of the Tunisian Solar Plan was chosen for a demonstration
of the decision tree schematic.

GEF / UNDP

Support for the Tunisian Solar Plan, Tunisia

Low Efficiency High Efficiency

Meets sector targets Exceeds sector targets

NO YES NO YES

Transparent, actionable
plan to meet/exceed 2030 targets?

NO YES
Negative
listed

Conditional positive listed Positive listed

With more than $3.5 million in grants from the Global Environment
Facility (GEF) and UNDP and more than $63 million in public and
private co-financing, the Plan includes one 10 MW solar PV plant
and one 24 MW wind farm as demonstration projects and has
a target of achieving 30% RE penetration by 2030. This meets
most of the 1.5°C- and 2°C-compatibility conditions for RE, Solar
PV, and Wind power (see Tables 1.1 and 1.2). Yet this 2030 energy
mix goal falls short of the global 2060 targets. The Tunisian
Solar Plan fits well within the sector’s enabling policies goal, and
considering Tunisia’s status as a low-income nation, this project
is conditionally positive listed as 1.5°C- and 2°C-compatible. This
initiative, however, is a prime example of a policy ripe for positive
influence and aid from funders and outside governments.
Considering Tunisia’s rich solar and wind resources, the country’s
national plan should be expected to incorporate a greater mix of
RE in the long term.193

55
CHAPTER 5

5
DATABASE ASSESSMENT
Building from a custom 600-project database compiled for the second 1 Gigaton Coalition
report, this report has expanded the analysis to assess 273 of these projects, including
197 renewable energy (RE), 62 energy efficiency (EE), and 14 classified as having both
RE and EE components. With implementation dates ranging from 2005 through 2016, the
projects are found in 99 countries. Of the 273 projects, 100 are supported by 12 bilateral
institutions and firms in 10 different countries, and another
173 projects are supported by 16 multilateral development banks and partnerships.
Project-level data were collected from these organizations, including information on
assistance levels, energy capacity, energy savings, supported technologies, and impact
evaluation methodologies. The resulting database was not intended to include all of the
developing world’s RE and EE efforts, but instead exhibits a representative cross-section
of bilateral- and multilateral supported projects.

Valle De Cauca,
Colombia

Across Colombia‘s
Valle del Cauca
region, entrepreneurs
are transforming
their firms into green
businesses.

R Details see page 28

 DATABASE ASSESSMENT  g

The projects encompass every sector taken into evaluation for 1.5°C- and 2°C compatibility,
including wind and solar power generation; geothermal, small hydro, and biomass; energy
efficiency in buildings; rapid public transit systems; electric vehicle deployment; electricity
transmission; industrial efficiency; and other sub-sectors. The sample of internationally
supported RE and EE projects in developing countries will reduce emissions by
approximately 258 million tons carbon dioxide (MtCO2 ) annually in 2020. Total emissions
reductions from internationally supported RE and EE projects from 2005 through 2015
could be up to 600 MtCO2e per year in 2020 if the sample’s emissions reductions are scaled
up to a global level using total bilateral and multilateral support figures for RE and EE (US
$76 billion).

After a historic year in 2015, when global investments in 5.1 AGGREGATED IMPACT
renewable energy (RE) projects reached a record high of $286
billion, new investment in renewables (excluding large hydro) fell This section seeks to build on the 1 Gigaton Coalition 2016 Report
to $242 billion in 2016. In developed economies, new investments and update the evaluation of emissions impact of bilateral- and
decreased by 14% to $125 billion, while in developing economies, multilateral-supported RE and EE projects in developing countries
they went down by 30% to $116.6 billion.194 The decrease implemented from 2005 – 2016.199 Project-level data were
in investment is explained by two main factors. First, solar collected from organizations, including information on assistance
photovoltaics, onshore wind and offshore wind saw more than levels, energy capacity, energy savings, supported technologies,
10% decreases in average dollar capital expenditure per capacity. and impact evaluation methodologies. The resulting database
These technologies have become more cost-competitive. Second, was not intended to include all RE and EE efforts in developing
countries, but instead exhibited a representative cross-section of
financing slowed in China, Japan and some emerging markets.
bilateral- and multilateral-supported projects.
Across different renewable technologies, solar capacity additions
rose from 56 GW to a historic-high 75 GW, while wind capacity Despite the harmonized framework for calculating GHG emissions
additions slowed down to 54 GW compared to 63 GW in 2015. savings from RE and EE projects that International Financial
Overall, the total amount of new capacity installed increased Institutions (IFIs) agreed upon in 2015, current aggregate GHG
from 127.5 GW in 2015 to a record 138.5 GW in 2016. For two impact data are incomplete to accurately assess these efforts’
years in a row, renewable power comprised more than half of the total effects.200 The new framework’s influence has extended
world’s added electric generation capacity. Investment in energy beyond Multilateral Development Banks (MDBs) and has been
efficiency also rose 9% to $231 billion in 2016.195 incorporated by as many bilateral groups. Yet the framework is
still not detailed enough to provide sufficient methodological
Bilateral and multilateral development aid organizations have information to meet the criteria for this analysis. Organizations
for decades played a key role in energy projects in developing generally describe how their aggregate estimates attribute
countries.196 From 2004 to 2014, development institutions in reductions from projects with multiple supporters and, despite
OECD countries financed more than US $247 billion for RE and the harmonised framework, calculation assumptions may vary
EE projects in developing nations. Bilateral development finance widely from project to project. Project-level research is therefore
institutions, such as Norway’s Norfund, and bilateral government needed to overcome these issues.
agencies, such as Japan International Cooperation Agency
Communications with aid organization representatives and
(JICA), are the vehicles for state-sponsored foreign investments.
extensive desk research yielded sufficient information on 197
Multilateral development banks (MDBs), including the Asian
RE, 62 EE projects and 14 RE/EE projects for calculating GHG
Development Bank (ADB) and European Investment Bank (EIB),
emissions impact estimates. The project-by-project emissions
have joined forces to finance RE and EE projects throughout
reductions estimates were made using a common calculation
the developing world, investing more than US$100 billion from method that accounts for Scope 1 emissions (see Annex).
2004 - 2014, according to OECD estimates.197 These groups also
build policy and administrative capacity among governments and The supported projects on energy efficiency and renewable
businesses in recipient countries. According to OECD estimates, energy have significant impact on greenhouse gas emissions:
they invested US $4.7 billion in energy policy and administrative g T he analyzed sample of internationally supported RE and
management in 2014, more than any other recipient sector EE projects in developing countries will reduce emissions
besides electricity transmission and distribution.198 by approximately 0.258 gigatons carbon dioxide (GtCO2)

57
 CHAPTER 5

Figure 12: Emission reductions in 2020 from scaled up public mitigation finance for RE and EE projects.

Mitigation impact
in 2020

CO2
Mt CO2/yr

1600

1400
2020
1200
2019
1000
2018
800
2017
600

400 2005
–
2016
200
Year the
projects are
financed
0

Source: Authors, 1 Gigaton Coalition Report 2017

annually in 2020. The 273 analysed projects generate these g I f public finance for mitigation is scaled up through 2020,
emissions savings by displacing fossil fuel energy production emissions would be reduced by more than 1 GtCO2 per
with clean energy technologies or by conserving energy in year (Figure 12). Countries agreed to mobilize US $100 billion
industry, buildings and transportation. RE projects contribute in total climate finance (mitigation and adaptation, public and
around 0.085 GtCO2, EE projects contribute 0.113 GtCO2e, and private). For this estimate we assume that a quarter of the US
RE/EE projects contribute about 0.059 GtCO2 to the analysis’s $100 billion is public mitigation finance.
total emissions reductions. These projects received direct foreign
assistance totalling US $32 billion.
g Total emissions reductions from internationally supported
RE and EE projects since 2005 could be up to 0.600 GtCO2
per year in 2020. This estimate is derived by scaling up the
analysed sample’s emissions reductions to a global level using
total multilateral and bilateral support figures for RE and EE
($76 billion between 2005 and 2016).201 International support
flows to markets that are in the early stages of development,
where barriers to private investment have to be lifted for RE and
EE finance to mature. This foreign investment, which includes
critical support for capacity building, is essential for spurring
RE and EE development, despite the fact that foreign support
accounts for less than 10% of total RE and EE investments in
developing countries.

58
 DATABASE ASSESSMENT  g

5.2 SELECTED BILATERAL INITIATIVES The bilateral groups featured in this analysis include state-
owned investment funds like Norway’s Norfund; government-
Outreach to bilateral organizations and desk research yielded owned development banks like the China Development
detailed data on 100 projects from 12 bilateral groups in Bank; and some are private companies operating on behalf
nine countries: China, Finland, France, Germany, Japan, The of government ministries, like GIZ in Germany. The full list
Netherlands, Norway, United Kingdom, and the United States. of bilateral organizations included in this analysis is shown in
The eight OECD countries invested more than US $9 billion in Table 4. Bilateral development groups generally mobilize public
RE power generation in developing nations from 2006 – 2015.202 funds from national budgets to finance initiatives abroad. Some
Data on China’s foreign energy investments is difficult to obtain, groups raise capital from private markets and others use both
yet it is known that China has in the past 15 years begun to public and private financing in their operations. Development
invest in RE abroad. China has supported at least 124 solar and institutions finance projects via grants and/or loans distributed
wind initiatives in 33 countries since 2003. Fifty-four of these to governments of recipient nations, which in turn distribute
investments – those for which financial data is available – sum to funding to ministries, local agencies, and firms in charge of
nearly US $40 billion.203 project implementation. Promoting development abroad is
central to the mission of all the groups considered in this report,
and the analysis focuses only on funding for RE and EE projects,
which may comprise a relatively small portion of a bilateral
organization’s total portfolio.

59
 CHAPTER 5

Table 4. Selected Bilateral Organizations204

OECD-reported National
Assistance for RE and EE
Development
Bilateral Organization Country Year/Established (millions current US $) 205, 206

2005–2015
2015
(cumulative)

Agence Française de Développement (AFD) France 1998 401 2,533

China Development Bank and

China 1994 1,000208
China Exim Bank

Department for International Development

UK 1997/2011 59 359
(DFID)/International Climate Fund (ICF)

Danida Denmark 1971 2 151

FinnFund Finland 1980 20 226

The
FMO 1970 38 521
Netherlands

Deutsche Gesellschaft für Internationale

Germany 2011 954 9,899
Zusammenarbeit GmbH (GIZ) 212

KfW/DEG Germany 1948/1962

Japan International Cooperation

Japan 1974 204 4,807
Agency (JICA)

NorFund Norway 1997 27 883

Overseas Private Investment Corporation

USA 1971 244 763
(OPIC)

All OECD countries 1,949 21,142

Note: Cells shaded grey indicates no data available.

60
 DATABASE ASSESSMENT  g

RE and EE # RE
Investments in and EE
Bilateral Development Organization’s Bilateral Organization’s Estimated
this Analysis Projects
RE and EE Achievements GHG Emissions Mitigation Impact
(millions in this
current US $) Analysis

Projects financed from 2013 – 2015

AFD’s supported projects installed 1,759 MW of RE 1,850 30
abate 11.4 Mt CO2 annually207

549 4

DFID and ICF supported projects with 230 MW of

Supported RE projects have achieved
RE capacity already installed and 3,610 MW of RE capacity 207 4
6.6 Mt CO2 abatement209
expected over the projects’ lifetime.
Danida has allocated more than 1,604 million DKK to projects
on natural resources, energy and climate changes in developing 108 5
countries between 2016 and 2020.
US $168 million invested in “Energy and Environmental
40 2
development” from 2011 – 2015210
Established its climate investment fund, Climate Investor
One (CIO), in 2014, which will develop approximately 20 RE CIO aims to achieve an annual
initiatives and build 10 more RE projects, with cumulative
avoidance of 1.5 MtCO2 emissions 189 3
1,500 MW capacity. These efforts will create 2,150,000 MWh
of additional clean electricity production and bring electricity through the 10 RE projects it builds.210
access to approximately 6 million people
Since 2005, GIZ’s EE programs have achieved energy savings
equal to the annual energy consumption of more than one
million German households. GIZ has also distributed energy-
7 2
saving cookstoves to more than 10 million people. GIZ
currently has 39 active RE projects in developing countries
with more than $480 million invested in this sector.213
KfW’s supported 2015 EE projects
produce an estimated 1.5 MtCO2e/
DEG’s supported RE initiatives have an estimated annual year and its supported 2015 RE
production of 8,000,000 MWh, equivalent to the annual projects generate an estimated 2.5 1,007 9
consumption of approximately 9 million people. MtCO2e/year, though it should be
noted that these projects include large
hydropower and biomass plants.214
JICA supported RE projects are
Committed in 2014 to support RE projects expected to reduce emissions by
4,726 30
with total capacity of 2,900 MW 2.8 MtCO2/year (does not include
supported EE projects).215
Supported RE projects in Africa, Asia, and Americas Norfund’s supported RE projects
have a total installed capacity of 4,800 MW, with
reduced emissions by an estimated 7.4 39 11
600 MW more currently under construction. These RE
projects produced 18,500,000 MWh in 2015 alone. MtCO2 in 2015.209

In 2015, committed nearly $1.1 billion to RE in developing

countries marking the fifth year in a row that its investments 666 5
in RE have topped $1 billion217

61
 CHAPTER 5

RE AND EE PROJECT DATA COLLECTION CRITERIA

To be included in the analysis, projects had to meet the following criteria. These boundaries allowed for the calculation of each
project’s GHG emissions mitigation and the identification of reporting overlaps.

Scope of Data Types of Data

g Project location: the report only considers projects in g Technology type: analysis could only be performed where
developing and emerging economies; China was given the technology type (for RE) or technical improvement (for
special consideration as both a recipient and distributor of EE) was given (e.g. solar or power system upgrade).
foreign investments. g Energy information: To be analyzed, projects had to
g P roject focus: the report only evaluates projects with an include quantified power or capacity data. This report
explicit RE or EE focus. builds on the previous 1 Gigaton Coalition reports’ scope,
including many more RE and EE projects in its analysis.
g S upport: the report only examines projects at least partly
RE projects employ one of only a handful of technologies
supported by bilateral or multilateral development groups.
with the primary goal of producing electrical power, which
g Timeframe: the report only analyzes projects that were is commonly expressed in generating capacity (MW) or
implemented from 2005 through 2016. Data was collected power (MWh), making reporting and collecting data on
for projects that have not yet been implemented, but these these initiatives straightforward. EE, on the other hand,
projects were excluded from the analysis. is a broad classification that can refer to a multitude
of different activities, including initiatives that involve
multiple economic sectors. EE programs often involve
buildings and appliances, and they are also employed in
industrial systems, the power sector, transportation, and
waste. Any program that seeks to enhance efficiency in
energy production or consumption can be considered
an EE project. Such an extensive classification requires a
flexible methodological framework with sector-specific
considerations for each project type in order to establish
baselines and determine initiative outcomes (see Section
4). These complex considerations mean that EE project
impacts are generally more challenging to quantify than
RE project results. With various types of EE programs there
are varying metrics for describing project results. This
analysis only includes EE efforts that report energy savings
resulting from project implementation, a metric most often
expressed in terajoules (TJ) or megawatt-hours (MWh)

62
 DATABASE ASSESSMENT  g

5.3 SELECTED MULTILATERAL INSTITUTIONS attract co-financing to a significant portion of the developing
world’s RE and EE projects.218 The Climate Investment Funds (CIF),
Building on the data collected for the 2016 1 Gigaton Report, created by the World Bank in 2008, is another catalyst of MDB
the analysis this year includes 173 projects supported by 16 support. CIF now consists of four programs, two of which focus
multilateral groups. The multilateral institutions featured on developing and expanding RE in middle- and low-income
include multilateral development banks (MDBs) like the Asian countries.219 These collaborations help mobilize funds and they
Development Bank (ADB), European Investment Bank (EIB), also act as data hubs, collecting information on the projects that
and Inter-American Development Bank (IDB). These institutions their partners implement.
are often intertwined, as, for instance, the International Bank MDBs’ collaborative approach to project finance makes double-
for Reconstruction and Development (IBRD) and International counting individual efforts – i.e., counting individual projects
Finance Corporation (IFC) are both part of the extensive World more than once – more likely when creating an initiative
Bank Group. Some are affiliated with bilateral institutions, such database. One project may have multiple groups supporting it,
as Proparco in France, which is a private sector subsidiary of all of whom report the initiative and its outcomes as their own.
the bilateral Agence Française de Développement (AFD). As the This overlap means that if an analyst were to combine different
name suggests, multilateral development groups draw public and
sets of MDB-reported aggregated data, there would be projects
private funding from multiple countries to finance development
counted multiple times. This problem of multiple attribution and
initiatives throughout the world. These organizations often fund
double counting can debase the credibility of an otherwise sound
projects in collaboration with each other, employing multi-
analysis (see Section 4). With detailed project-level data on RE
layered finance agreements that include grants, loans, and
and EE projects, this analysis is able to avoid the hazard of double-
leveraged local funding.
counting MDBsupported programs. Any overlaps between
Organizational frameworks and funds that pool resources projects in the database were discerned and appropriately
and coordinate project support among MDBs have become addressed so that each project was only counted once. Note
increasingly influential in recent years. The Global Environment that in Table 5, overlaps among projects from “Supporting
Facility (GEF) is perhaps the most prominent of these organization reported” sources are not disaggregated, so these
collaborative efforts. A partnership of 18 multinational agencies data may exhibit double counting, demonstrating the difficulties
representing 183 countries, GEF’s investments support and of aggregating data at this level.

63
 CHAPTER 5

Table 5: Selected Multilateral Development Organizations220

OECD-reported Develop-
ment Assistance ($ millions
Multilateral Firm, Fund, Institution Number of Member Countries Year/ current USD) 205, 206
or Partnership and Structure Established
2005–2015
2015
(combined)

Acumen Non-profit venture fund 2001

Asian Development
67 member countries; MDB 1966 350 4,227
Bank (ADB)

African Development
80 members; MDB 1964 58 1,824
Bank (AfDB)

2014;
Asian Infrastructure
officially
Investment Bank 56 countries; MDB
launched
(AIIB)
in 2016

EU’s main instrument for providing

European development aid to African,
Development Fund Caribbean and Pacific (ACP) countries 1959
(EDF) and to overseas countries and
territories (OCTs)

28 European member states;

European Investment
European Union’s nonprofit long-term 1958
Bank (EIB)
lending institution

Established by 194 countries party

to the UN Framework Convention on
Climate Change in 2010. Governed
by a 24-member board, whose
Green Climate Fund
participants are equally drawn from 2010
(GCF)
developed and developing countries,
and which receives guidance from
the Conference of the Parties to the
Convention (COP).

GEF’s governing structure is organized

around an Assembly, the Council, the
Secretariat, 18 Agencies representing
Global Environment 183 countries, a Scientific and
1992 84 296
Facility (GEF) Technical Advisory Panel (STAP) and
the Evaluation Office. GEF serves as
a financial mechanism for several
environmental conventions.

HydroChina
Public company in China. 2009
Investment Corp

Note: Cells shaded grey indicates no data available.

64
 DATABASE ASSESSMENT  g

RE and EE # RE
Investments in and EE
Supporting Organization’s Reported RE and EE Supporting Organization’s Estimated
Analysis Projects
Investments and Impacts GHG Emissions Mitigation Impact
($ millions in
current USD) Analysis

Acumen invested $12.8 million in breakthrough

1.25 2
innovations and impacted 23.3 million lives.

Invested $2.47 billion in clean energy in 2015 (RE and

EE); including 1,481 GWh/year renewable electricity
Achieved abatement of
generation; 4,479 GWh/year electricity saved; 4,390 30
21.9 MtCO2e/year221
37,994 TJ/year direct fuel saved; and 618 MW newly
added renewable energy generation capacity

43 1

Achieved abatement of
Invested $165 million in one EE project 165 1
16,400 tCO2 per year222

273 5

As a result of $21 billion of climate lending in 2014,

Climate lending in 2014 led to avoidance
3,000 GWh of energy was saved and 12,000 GWh of 214 3
of 3 MtCO2 emissions.225, 226
energy was generated from renewable sources.

$10.3 billion of support was announced by 43 state

Anticipated avoidance of 24.8 MtCO2e
governments, towards a goal of mobilizing $100 billion 337 2
through 17 projects.227, 228
by 2020.

Since 1991, GEF has invested more than $4.2 billion

in 1,010 projects to mitigate climate change in 167 2.7 billion tonnes of greenhouse gas
countries. GEF’s investments leveraged more than $38.3 (GHG) emissions have been removed
billion from a variety of other sources, including GEF through the GEF’s investment and 3,098 76
Agencies, national and local governments, multilateral co-financing activities around climate
and bilateral agencies, the private sector and civil society change mitigation, from 1991 – 2014.229
organizations.

115 1

continue next page

65
 CHAPTER 5

Table 5: Selected Multilateral Development Organizations220 (continued)

OECD-reported Develop-
ment Assistance ($ millions
Multilateral Firm, Fund, Institution Number of Member Countries Year/ current USD) 205, 206
or Partnership and Structure Established
2005–2015
2015
(combined)

International
Finance Corporation 184 member countries 1946 422 2,394
(IFC)

Inter-American
Development Bank 48; MDB 1959 588 3,959
(IDB)

July 2014
(Treaty
The BRICS New signed)/July
5; MDB
Development Bank 2015
(Treaty in
force)

Public-Private European Development

Proparco 1977
Finance Institution based in France

189 member countries; The World

Bank Group is comprised of five
multilateral finance organizations
including IBRD and IFC as well as
The International Development
World Bank 1944 1,092 8,801
Association (IDA), The Multilateral
Investment Guarantee Agency
(MIGA), The International Centre for
Settlement of Investment Disputes
(ICSID).

72 developing and middle income

countries; comprised of four programs
Climate including CTF and SREP as well as
Investment Funds the Forest Investment Program (FIP) 2008 579 2,132
(CIF) and Pilot Program Climate Resilience
(PPCR); all implemented and supported
by MDBs.

72 developing and middle income

Clean Technology
countries; projects implemented by 2008
Fund (CTF)
MDBs

Note: Cells shaded grey indicates no data available.

66
 DATABASE ASSESSMENT  g

RE and EE # RE
Investments in and EE
Supporting Organization’s Reported RE and EE Supporting Organization’s Estimated
Analysis Projects
Investments and Impacts GHG Emissions Mitigation Impact
($ millions in
current USD) Analysis

95 2

134 4

Invested $911 million in RE projects in 2016 equaling These investments are expected to avoid
911 5
1,920 MW in capacity. 3.236 MtCO2e/yr.

Proparco’s supported RE projects 2013 – 2015 Proparco’s 2015 investments have

have a combined capacity of 1.75 MW; 695 MW in reduced emissions by an estimated 344 10
2015 alone. 0.876 MtCO2e.231

In 2015, the World Bank catalysed $28.7 billion in 588 MtCO2e reduced with the support
private investments and expanded renewable power of special climate instruments in 2015;
generation by 2,461 MW. 1,270,000 in MWh in projected lifetime 504 11
energy savings based on projects
implemented in 2015.230

Funding pool of $8.3 billion ($58 billion in expected

10,891
co-financing). CIF investments of $1.8 billion (as of 2015)
(including 23
are expected to contribute to 1 GW of CSP and
cofinance)
3.6 GW of geothermal power.223

CTF investments are expected to deliver

Fund of $5.6 billion with approved RE capacity of 13,332
emissions reductions of 1,500 MtCO2e
18,865 MW; These projects expected to generate (including 12
over all projects’ lifetime; 20 MtCO2e have
70,099 GWh/yr. co-finance)
already been achieved.224

67
 CHAPTER 5

International Financial Institutions (IFIs) are banks that 5.3.1 MULTISTAKEHOLDER PARTNERSHIPS
have been chartered by more than one country. All of the
MDBs featured in this report are also IFIs. These institutions In addition to bilateral and multilateral initiatives, multi-stakeholder
adopted the “International Financial Institution Framework partnerships of both public and private actors also extend financial
for a Harmonised Approach to Greenhouse Gas Accounting” and capacity-building support to developing countries, spurring
in November 2015, in an important step toward developing a innovation and new policies. This section features some examples
global methodological standard for GHG accounting.232 As the IFI of initiatives that are operating in developing countries as models
framework gains widespread adoption, there are opportunities for demonstrable mitigation impact.
to add specifications that would improve and further unify the
methodologies. The framework in its current form could provide
more detailed instructions to ensure that results are reproducible.
This way, a third-party analysis would be able to combine GHG
emissions impact estimates of different projects from multiple CLIMATE AND
sources. Nevertheless, in many instances, supporting MDBs CLEAN AIR
present project-level emissions mitigation estimates, citing COALITION (CCAC)
the recently harmonised framework, yet without providing
the precise assumptions inherent to their calculations. The IFI
framework is a very promising development, and widespread www.ccacoalition.org
sharing of methodological approaches is a powerful tool for Established in 2012, the Climate and Clean Air Coalition
catalyzing harmonization efforts. (CCAC) is a voluntary partnership uniting governments,
Accounting for Scope 2 and 3 emissions remains a difficult task intergovernmental and nongovernmental organizations,
and a near-term goal for groups financing RE and EE projects. representatives of civil society and the private sector
With an annual investment of US$11 billion, internationally committed to improving air quality and slowing the
supported RE and EE initiatives in developing countries are rate of near-term warming in the next few decades by
less than 10% of total investment. Yet this class of funding taking concrete and substantial action to reduce short-
can have outsized effects, as foreign investment leverages lived climate pollutants (SLCPs), primarily methane,
other financing, builds capacity in local institutions, and helps black carbon, and some hydrofluorocarbons (HFCs).
mainstream RE and EE project finance.233 According to OECD Complementary to mitigating CO2 emissions, fast action
to reduce short-lived climate pollutants has the potential
estimates, aid groups invested US$4.7 billion in energy policy
to slow expected warming by 2050 as much as 0.5 Celsius
and administrative management in 2014, more than any other
degrees, significantly contributing to the goal of limiting
recipient sector besides electrical transmission and distribution.
warming to less than 2°C.
There is, however, no harmonized method for estimating
emissions impacts from such activities. Analysts from several Reducing SLCPs can also advance priorities that are
bilateral and multilateral institutions interviewed expressed their complementary with the 1 Gigaton Coalition’s work, such as
desires to accurately measure the outcomes of capacity building building country capacity and enhancing energy efficiency.
efforts as well as policy and administrative aid. As funding for For example, replacing current high Global Warming
these initiatives grow, developing rigorous and harmonized Potential (GWP) HFCs with available low- or no-GWP
ways to do this evaluation is key to fully capturing the results of alternatives can also improve the efficiency of the appliances
foreign investments in RE and EE projects. and equipment that use them, potentially reducing global
electricity consumption by between 0.2 and 0.7% by 2050,
resulting in a cumulative reduction of about 5.5 Gt CO2e.234
Another example of this alignment is the SNAP Initiative of
the CCAC, which supports twelve countries to develop a
national strategy to reduce short-lived climate pollutants
and identify the most cost-effective pathways to large-
scale implementation of SLCP measures. This initiative has
resulted in a number of countries, including Mexico, Cote
d’Ivoire, Chile, and Canada submitting NDCs that integrate
SLCP mitigation.

68
 DATABASE ASSESSMENT  g

CLIMATE TECHNOLOGY
CENTRE AND NETWORK DISTRICT ENERGY IN
(CTCN) CITIES INITIATIVE (DES)

ctc-n.org districtenergyinitiative.org/
The Climate Technology Centre and Network (CTCN) delivers The District Energy in Cities Initiative is a multi-stakeholder
tailored capacity building and technical assistance at the partnership coordinated by UN Environment, with financial
request of developing countries, across a broad range of support from DANIDA, the Global Environment Facility,
mitigation and adaptation technology and policy sectors. and the Government of Italy. As one of six accelerators of
As the implementation arm of the UNFCCC Technology the Sustainable Energy of All (SEforAll) Energy Efficiency
Mechanism, the CTCN is a key institution to support nations Accelerator Platform, launched at the Climate Summit
in realizing their commitments under the Paris Agreement. in September 2014, the Initiative is supporting market
transformation efforts to shift the heating and cooling sector
As countries around the world seek to scale up their energy-
to energy efficient and renewable energy solutions.
efficient, low-carbon and climate-resilient development, the
CTCN plays the role of technology matchmaker, mobilizing The Initiative aims to double the rate of energy efficiency
a global network of technology expertise from finance, improvements for heating and cooling in buildings by
NGO, private and research sectors to provide customized 2030, helping countries meet their climate and sustainable
technology and policy support. Over 200 technology development targets. The Initiative helps local and national
transfers are currently underway in 70 countries. governments build local know-how and implement enabling
policies that will accelerate investment in modern – low-
The Centre is the implementing arm of the UNFCCC
carbon and climate resilient – district energy systems. UN
Technology Mechanism. It is hosted and managed by UN
Environment is currently providing technical support to
Environment and the United Nations Industrial Development
cities in eight countries, including Bosnia and Herzegovina,
Organization (UNIDO), and supported by more than 340
Chile, China, India, Malaysia, Morocco, Russia and Serbia.
network institutions around the world. Nationally-selected
focal points (National Designated Entities) in each country Since its establishment, the Secretariat has been leading
coordinate requests and implementation at the national level. and coordinating the development of, as well as facilitating
global access to, the best relevant technical information
necessary to address regulatory, economic, environmental
and social barriers to enable successful and sustainable
district energy programmes.
The Initiative works with a wide range of committed
partners and donors. Partnerships are a key enabler for
EN.LIGHTEN combatting climate change and fostering sustainable
development, and are firmly embedded in the way the
initiative works at global, regional and national level. By
http://united4efficiency.org/ joining forces with other players, the initiative leverages
additional resources, expertise and technical know-how to
The en.lighten initiative is a public-private partnership be-
help countries and cities in their effort to move towards
tween the UN Environment and companies such as OSRAM,
modern district energy systems.
Philips Lighting and MEGAMAN, with support from the
Global Environment Facility (GEF). The initiative’s main aim
is to support countries in their transition to energy efficient
lighting options. en.lighten has taken a regional approach
to standards implementation. Through this method, coun-
tries are able to share the costs for innovation and testing
centres, as well as recycling and waste schemes to manage
disposal of the new products (e.g. lights containing mercu-
ry). To date, the en.lighten initiative accounts for over 60
partner countries with a number of ongoing regional and
national activities and projects. Over the next several years,
the en.lighten initiative – as the lighting chapter of United
for Efficiency – will focus its support for countries to leap-
frog to LED lighting and assisting countries and cities to im-
plement efficient street lighting policies and programmes.

69
 CHAPTER 5

GLOBAL ALLIANCE FOR GLOBAL COVENANT

BUILDINGS AND OF MAYORS FOR
CONSTRUCTION (GABC) CLIMATE AND ENERGY

http://www.globalabc.org/ http://www.globalcovenantofmayors.org/
The Global Alliance for Buildings and Construction (GABC) The Global Covenant of Mayors for Climate & Energy is an
promotes and works towards a zero-emission, efficient and international alliance of cities and local governments with
resilient buildings and construction sector. It is a voluntary, a shared long-term vision of promoting and supporting
international, multi-stakeholder partnership serving as global voluntary action to combat climate change and move to
collaborative umbrella organization for other platforms, a low emission, resilient society. The Covenant focuses on:
initiatives and actors to create synergies, and increase climate g  Local Governments as Key Contributors: The Global
action scale and impact for decarbonising the buildings and Covenant of Mayors works to organize and mobilize cities
construction sector in line with the Paris Agreement goals. and local governments to be active contributors to a global
climate solution.
The GABC’s common objectives are:
g  City Networks as Critical Partners: Local, regional and
(a) Communication: Raising awareness and engagement global city networks are core partners, serving as the
making visible the magnitude of the opportunities and primary support for participating cities and local
impact in the buildings and construction sector. governments.
(b) Collaboration: Enabling public policy and market g  A Robust Solution Agenda: Focusing on those sec-
transformation action to achieve existing climate tors where cities have the greatest impact, the Global
commitments, through implementing partnerships, sharing Covenant of Mayors supports ambitious, locally relevant
technical expertise, and improving access to financing. solutions, captured through strategic action plans that
are registered, implemented and monitored and publicly
(c) Solutions: Offering and supporting programmes and
available.
locally adapted solutions to achieve climate commitments
and further ambitious ‘well-below 2°C path’ actions. g  Reducing Greenhouse Gas Emissions and Fostering
Local Climate Resilience: The Global Covenant of May-
The GABC has five Work Areas for addressing key barriers to ors emphasizes the importance of climate change mit-
a low-carbon, energy-efficient, and resilient buildings and igation and adaptation, as well as increased access to
construction sector: Education & Awareness; Public Policy; clean and affordable energy.
Market Transformation; Finance; and Measurement, Data
Created through a coalition between the Compact of Mayors
and Accountability.
and EU Covenant of Mayors, the Global Covenant of Mayors
Specifically, the GABC focuses on: is the broadest global alliance committed to local climate
g orking towards a common vision and goals by
W leadership, building on the commitments of over 7,477 cities,
developing a GABC global roadmap and issuing an annual representing 684,880,509 people and 9.31% of the global
GABC Global Status Report. population.

g  atalysing action, particularly supporting and accelerating

C
NDC implementation.
g F acilitating access to and scaling-up technical assistance
by coordinating members’ needs with other members’
capabilities and capacities.

70
 DATABASE ASSESSMENT  g

INTERNATIONAL TRANSPORT
FORUM AT THE ORGANISATION
FOR ECONOMIC DEVELOP-
MENT AND COOPERATION ENERGISING DEVELOPMENT
(OECD) (ENDEV)

https://www.itf-oecd.org/ www.endev.info
The International Transport Forum (ITF) at the Organisation EnDev is an international partnership with the mission to
for Economic Development and Cooperation (OECD) is an promote sustainable access to modern energy services in
intergovernmental organization with 59 member countries. developing countries as a means to inclusive social, eco-
The ITF acts as a think tank for transport policy and organ- nomic and low carbon development. EnDev is funded by six
ises the Annual Summit of transport ministers. It serves as a donor countries: Norway, the Netherlands, Germany, Unit-
platform for discussion and pre-negotiation of policy issues ed Kingdom, Switzerland and Sweden. EnDev was initiated
across all transport modes, and it analyses trends, shares in 2005 and is currently implemented in 26 countries in
knowledge and promotes exchange among transport de- Africa, Asia and Latin America, with a focus on least de-
cision-makers and civil society. The ITF also has a formal veloped countries. EnDev promotes sustainable access to
mechanism, through its Corporate Partnership Board (CPB), climate-smart energy services that meet the needs of the
to engage with the private sector. Created in 2013 to enrich poor: long lasting, affordable, and appreciated by users,
global policy discussions with a private sector perspective, while also fulfilling certain minimum quality criteria. The
it brings together companies with a clear international per- most widely promoted technologies are improved cook-
spective in their activities that play an active role in trans- stoves for clean cooking, solar technologies for lighting
port and associated sectors. CPB partners represent com- and electricity supply as well as mini-grids.
panies from across all transport modes and closely related
EnDev has a robust monitoring system, which provides
areas, such as energy, finance, or technology.
donors, partners and management with verified data and
reliable assessments. By now, EnDev has facilitated sus-
Together with its member countries and corporate partners,
tainable access for more than 17.3 million people, more
the ITF has developed a wide range of projects, including
than 38,600 small and medium enterprises and 19,400 so-
transport and climate change. In May 2016, the ITF Decar-
cial institutions. In 2016, through the measures of the pro-
bonising Transport project was launched to help decision
gramme, CO2 emission reductions totalled 1.8 million tons
makers establish pathways to carbon-neutral mobility. This
per year. Since beginning in 2005, EnDev has contributed
project brings together a partnership that extends far be-
to avoiding more than 8.5 million tons of CO2. This figure
yond the member countries of ITF. There are currently more
is a conservative estimate: it includes various deductions
than 50 Decarbonising Transport project partners from in-
for sustainability, additionality, free riding and replacement
tergovernmental organisations, non-governmental organi-
or repeat customers. The majority of the EnDev’s avoided
sations, national governments, city networks, foundations,
emissions are generated in the cookstove sector.
universities, research institutes, multilateral development
banks, professional and sectoral associations, and the pri-
vate sector.

71
 CHAPTER 5

INTERNATIONAL THE PRIVATE FINANCING

RENEWABLE ENERGY ADVISORY NETWORK
AGENCY (IRENA) (PFAN)

www.irena.org www.pfan.net
The International Renewable Energy Agency (IRENA) is an The Private Financing Advisory Network is one of few actors
intergovernmental organization that supports countries in in the climate finance space addressing the barriers to success
their transition to a sustainable energy future through ac- for small and medium enterprises (SME) in developing coun-
celerated deployment of renewable energy. tries and emerging economies – a shortage of bankable proj-
ects on the demand side and difficulties assessing risks and a
IRENA’s Roadmap for a Sustainable Energy Future, REmap conservative lending culture on the supply side.
2030, demonstrated that doubling the share of renewable
energy in the global energy mix by 2030 is both economi- PFAN’s goals are to reduce CO2 emissions, promote low-carbon,
cally viable and technically feasible. Through its Renewable sustainable economic development, and help facilitate the tran-
Readiness Assessments, IRENA helps countries assess local sition to a low-carbon economy by increasing financing oppor-
tunities for promising clean energy projects. PFAN accomplishes
conditions and prioritize actions to achieve renewable ener-
this by coaching and mentoring high-potential climate and clean
gy potentials. The Agency’s regional initiatives, such as the
energy businesses; by developing a network of investors and fi-
African Clean Energy Corridor, promote the penetration of
nancial institutions with an interest in and extensive knowledge
renewable electricity in national systems and renewable en-
of clean energy markets; and by presenting to these investors
ergy cross-border trade. IRENA is organizing dialogues with
projects that have been screened for commercial viability, sus-
a broad range of stakeholders to advance specific regional tainability and environmental and social benefits.
concerns, including efforts to strengthen renewable energy
objectives in countries’ NDCs. To date, PFAN has raised over US $1.2 billion in investment for
the projects in its pipeline, which have led to installing and
IRENA makes its data, knowledge products, and tools a operating over 700 MW of clean energy capacity.
public good so that many can benefit from the Agency’s
unique mandate and reach. These tools include, among PFAN is a multilateral public-private partnership, founded by
the Climate Technology Initiative (CTI) and the United Nations
others: a Global Atlas that consolidates renewable resource
Framework Convention on Climate Change (UNFCCC). It has
potential worldwide; a Project Navigator that guides the
recently been relaunched under a new hosting arrangement
preparation of high quality project proposals; and a Sus-
with the United Nations Industrial Development Organization
tainable Marketplace that facilitates access to finance to
(UNIDO) and the Renewable Energy and Energy Efficiency
scale up investments.
Partnership (REEEP). Under this arrangement, PFAN’s opera-
tions are set to scale by a factor of two to five by 2020.

RENEWABLE ENERGY POLICY NETWORK FOR THE 21ST CENTURY (REN21)

www.ren21.net/
REN21 is the global renewable energy policy multi-stakeholder d­ iverse viewpoints from both private and public-sector actors,
network that connects a wide range of key actors. REN21’s goal serving to dispel myths about renewables energy and to ca-
is to facilitate knowledge exchange, policy development and joint talyse policy change. It does this through six product lines: the
action towards a rapid global transition to renewable energy. Renewables Global Status Report (GSR), which is the most fre-
REN21 brings together governments, non-governmental or- quently referenced report on renewable energy market, indus-
ganizations, research and academic institutions, international try and policy trends; Regional Reports on renewable energy
organizations and industry to learn from one another and build developments of particular regions; Renewables Interactive
on successes that advance renewable energy. To assist policy Map, a research tool for tracking the development of renew-
decision making, REN21 provides high quality information, ca- able energy worldwide; the Global Future Reports (GFR), which
talyses discussion and debate and supports the development of illustrate the credible possibilities for the future of renewables;
thematic networks. the Renewables Academy, which offers a venue to brain-
storm on future-orientated policy solutions; and International
REN21 facilitates the collection of comprehensive and time-
­Renewable Energy Conferences (IRECs), a high-level political
ly information on renewable energy. This information reflects
conference series.

72
 DATABASE ASSESSMENT  g

RENEWABLE ENERGY
NDC AND ENERGY EFFICIENCY
PARTNERSHIP PARTNERSHIP (REEEP)

http://www.ndcpartnership.org/ www.reeep.org
The NDC Partnership is a global coalition of countries and in- REEEP invests in clean energy markets to help developing coun-
ternational institutions working together to mobilize support tries expand modern energy services, improve lives and keep low-
and achieve ambitious climate goals, while enhancing sustain- ering CO2 emissions. Leveraging a strategic portfolio of high-im-
able development. Launched at COP22 in Marrakesh, the NDC pact investments, REEEP generates, adapts and shares knowledge
Partnership aims to enhance cooperation so that countries to build sustainable markets for clean energy and energy efficien-
have access to the technical knowledge and financial support cy solutions, advance energy access, and combat climate change
they need to achieve large-scale climate and sustainable de- in order to facilitate economic growth where it matters most.
velopment targets as quickly and effectively as possible, and
REEEP invests in small and medium-sized enterprises (SMEs)
increase global ambition over time.
in low and middle-income countries and develops tailor-
In-Country Engagement made financing mechanisms to make clean energy technology
The Partnership engages directly with ministries and other accessible and affordable to all.
stakeholders to assess needs and identify opportunities for
Market transformation is complex and multidimensional.
collective action across sectors, regions, and international
REEEP monitors, evaluates and learns from its portfolio to bet-
partners. Through the Partnership, members provide target-
ter understand the systems we work in, identify opportunities
ed and coordinated assistance so that nations can effective-
and barriers to success and lower risk for market actors. The
ly develop and implement robust climate and development
knowledge we gain is shared with government and private sec-
plans. Leveraging the skills and resources of multiple partners
tor stakeholders, influencing policy and investment decisions.
towards a common objective, and delivering with speed, is a
unique value proposition that the Partnership brings. Current major projects and activities by REEEP include: man-
aging the Sweden-funded Beyond the Grid Fund for Zambia,
Increasing Knowledge Sharing
which is set to bring clean energy access to 1 million Zam-
The Partnership raises awareness of and enhances access to cli-
bians by 2021; Powering Agrifood Value Chains, a portfolio
mate support initiatives, best practices, analytical tools, and re-
of eight promising clean energy businesses in the agrifood
sources. Information to address specific implementation needs
space; market-based clean energy and energy efficiency
is made available through online portals, as well as communities
solutions for urban water infrastructure in Southern Africa;
and networks that generate opportunities for knowledge sharing.
and the hosting and execution of activities of the Private Fi-
Governance nancing Advisory Network PFAN (see p. 72).
The NDC Partnership is guided by a Steering Committee com-
Founded at the 2002 World Summit on Sustainable Devel-
prised of developed and developing nations and international
opment in Johannesburg, REEEP works in close collaboration
institutions, and is facilitated by a Support Unit hosted by the
with a range of public and private sector partners at the early
World Resources Institute in Washington and Bonn. The Partner-
stages of clean energy market development.
ship is co-chaired by the Governments of Germany and Morocco.

MOROCCAN CLIMATE CHANGE COMPETENCE CENTRE (4C MAROC)

www.4c.ma/
The Moroccan Climate Change Competence Centre (4C Maroc) 4C Maroc works to strengthen national actors’ capacities in cop-
is a national capacity building platform for multiple stakeholders ing with climate change by collecting and developing information,
concerned with climate change, including government entities at knowledge, and skills pertaining to climate change vulnerability, ad-
all levels, private companies, research institutions, and civil society aptation, mitigation, and funding in Morocco. It also develops tools
organizations. 4C Maroc acts as a hub for regional climate change to improve and aid decision-making regarding climate change. 4C
information. Maroc is particularly focused on creating a link between policymakers
and scientists, aiming to ensure that universities and research centres
get necessary funding to work on topics most relevant to improving
public well-being. This effort’s goal is to enable the public sector to
make the best decisions on matters relating to climate change.

73
 CHAPTER 5 DATABASE ASSESSMENT  g

UNITED FOR
SUSTAINABLE ENERGY EFFICIENCY
FOR ALL (SEforALL) (U4E)

www.seforall.org united4efficiency.org
Sustainable Energy for All (SEforALL) was launched in 2013 The UN Environment-GEF United for Efficiency (U4E) sup-
as an initiative of the United Nations with a focus on moving ports developing countries and emerging economies to leap-
the importance of sustainable energy for all center stage. frog their markets to energy-efficient lighting, appliances
Following the adoption of the SDGs, SEforALL has now tran- and equipment, with the overall objective to reduce global
sitioned into an international non-profit organization with electricity consumption and mitigate climate change. High
a relationship agreement with the UN that serves as a plat- impact appliances and equipment such as lighting, residen-
form supporting a global movement to support action. tial refrigerators, air conditioners, electric motors and dis-
SEforALL empowers leaders to broker partnerships and un- tribution transformers will account for close to 60 percent
lock finance to achieve universal access to sustainable ener- of global electricity consumption by 2030. The rapid deploy-
gy as a contribution to a cleaner, just and prosperous world ment of high-energy efficient products is a crucial piece of
for all. SEforALL marshals evidence, benchmarks progress, the pathway to keep global climate change under 2°C. A
tells stories of success and connects stakeholders. In order global transition to energy efficient lighting, appliances and
to take action at the scale and speed necessary, SEforALL’s equipment will save more than 2,500 TWh of electricity use
work focuses on where we can make the greatest progress each year reducing CO2 emissions by 1.25 billion tons per an-
in the least amount of time. num in 2030. Further, these consumers will save US $350
billion per year in reduced electricity bills.
Founding partners to U4E include the United Nations Devel-
opment Programme (UNDP), the International Copper Asso-
ciation (ICA), the environmental and energy efficiency NGO
CLASP, and the Natural Resources Defense Council (NRDC).
UK INTERNATIONAL Similar to en.lighten, U4E also partners with private sector
CLIMATE FUND manufacturers, including ABB, Electrolux, Arçelik, BSH Haus-
geräte GmbH, MABE, and Whirlpool Corporation.

https://www.gov.uk/government/publications/interna-
tional-climate-fund/international-climate-fund
In 2010, the UK established the International Climate Fund
(ICF) as a cross government programme, managed by BEIS,
DFID and DEFRA. The Fund has delivered £3.87 billion in Offi-
cial Development Assistance between 2011 and 2016. It now
has a mature portfolio of over 200 programmes with global
reach, working through private sector, multilateral, and bilat-
eral channels, and has committed to spending at least £5.8
billion over the next five years. The ICF aims to spend half
of its finances on climate mitigation and half on adaptation.
Up to US $90 trillion will be invested in infrastructure globally
over the next 15 years in energy, cities, and transport. Much
of this will be in developing countries where the ICF will try
to influence finance flows to lower carbon investments by
making visible, distinctive and catalytic investments that can
be scaled up and replicated by others.
Since 2011, the ICF has directly supported 34 million peo-
ple, helping them cope with the effects of climate change,
and improved energy access for 12 million people. ICF in-
vestments have also helped prevent 9.2 million tonnes of C0 2
emissions –and generated US $2.86 billion of public invest-
ment and US $650 million of private investment.

74
CHAPTER 6 CONCLUSION  g

6
CONCLUSION

Meeting the Paris Agreement’s climate goals will require an immediate and worldwide
shift toward decarbonizing human activities. According to the IPCC, global emissions
will have to peak in the next few years and then rapidly decline over the following
three decades, approaching zero by 2050, if the world is to have a likely chance
of limiting warming in line with the 1.5°C or 2°C goals established in the Paris
Agreement. The annual emissions gap, however, is growing, and will equal
11 – 19 GtCO2e by 2030 unless efforts to reduce emissions dramatically ramp up.
Timing is crucial, as the global carbon budget shrinks each year and the window of
opportunity for achieving our shared climate goals narrows. Emissions benchmarks
that correspond with 1.5°C or 2°C scenarios are moving targets, and if the world
misses them in the short term, climate trajectories would worsen and long-term goals
would become more difficult to meet.

Lagos, Nigeria

Private companies
are making solar
energy accessible and
affordable, helping to
meet the vast demand
for reliable energy
access across Nigeria.

R Details see page 32

 CHAPTER 6 CONCLUSION  g

Renewable energy (RE) and energy efficiency (EE) initiatives are Decarbonization is occurring throughout the world, as cities
the most prominent and effective means for cutting carbon and other subnational jurisdictions have aligned their actions
emissions while promoting sustainable economic growth. As with national governments and partnered with private firms to
with their timing and scale, the location of these efforts is implement innovative RE and EE programmes. Public-private
crucial to achieving global climate goals. Developing countries partnerships, particularly collaborations at the subnational level,
are projected to drive almost all of the world’s energy demand are assuming an increasingly prominent role in international
growth this century as well as the vast majority of new climate efforts, and these collaborations will be a main focus
buildings, new modes of transportation, and new industrial at COP23. Yet these actions are not happening at the speed or
activity.236 These countries must balance domestic development scale necessary to achieve the 1.5°C or 2°C goals. Developed
needs with global climate goals, and they cannot be expected to countries need to transfer resources, including policy and
do so without support from the rest of the world. Developing technical expertise, best available technologies, and financing,
countries are installing RE facilities at a record pace, accounting to developing countries in order to create the enabling
for more than half of the nearly 140 GW of RE that came online environments necessary for RE and EE expansion at a scale
in 2016. These nations are also developing and implementing commensurate with what international climate goals demand.
more RE and EE policies than ever before, as documented in Nations, project implementers, and supporting organizations
Chapter 2 of this report. must determine which policies and programmes do in fact meet
the ambitious climate goals set out in the Paris Agreement
In cities and regions throughout the world, governments at all
while also achieving the Sustainable Development Goals (SDGs).
jurisdictional levels are partnering with private companies to
This report provides some of the key elements that could be
implement RE and EE programmes, achieving carbon emissions
used to assess projects, policies, and initiatives according to
reductions as well as co-benefits for their localities, including
their promotion of global climate and sustainable development
enhanced environmental quality, human health, economic
objectives.
outcomes, social inclusion, and gender equality. Section 3.1
of this report details six cases from various cities and regions, Information is a key resource that is little discussed. This
where public-private RE and EE initiatives are proving successful. report’s 1.5°C or 2°C compatibility exercise finds that data
These efforts are prime examples of the global movement to transparency and information sharing are essential components
decouple carbon emissions from development. It is challenging, of compatibility at the national, sector, and project levels.
however, for many policymakers, project supporters, and International efforts to improve data availability need to
implementers to determine individual RE and EE projects and ramp up immediately. Bilateral and multilateral development
policies’ contributions to closing the emissions gap. Judging organizations are among the groups best suited to catalyze
these efforts’ compatibility with global 1.5°C and 2°C scenarios these global changes. This report finds that these international
is also an unchartered territory for many actors. organizations leverage large emissions reductions for relatively
small RE and EE investments. These groups are shown to
Evaluating internationally supported RE and EE initiatives’
foster enabling environments helping to create homegrown
measurable emissions reductions and creating a 1.5°C or
low carbon trajectories in developing countries. International
2°C-compatibility framework for RE and EE sectors and projects
development authorities now should expand their support to
is the focus of this report. The results show that, when scaled
advance transparency and resource transfers at an ever greater
up with proposed funding figures, supported RE and EE projects
scale and speed.
in developing countries could produce 1.4 GtCO2e in annual
reductions by 2020. The compatibility framework presents a
practical alternative to using counterfactual baseline scenarios
to estimate an RE or EE project or sector’s impacts, allowing
funders, policymakers, project implementers, and other laypeople
to quickly determine if a programme, project, or policy is 1.5°C
or 2°C compatible, and to isolate crucial determining factors
of project and sector-level compatibility. The compatibility
analysis illustrates the need for integrated, system-focused
policy promoting decarbonization in every sector. This means
policies that link electricity generation and transmission with
end-use management; regulations and standards that address
upstream and downstream emissions throughout supply chains;
and a large-scale shift of incentives away from fossil fuels and
inefficient energy use towards RE sources and system-wide
efficiencies.

76
 ANNEX  g

ANNEX I: DETAILED DESCRIPTION

OF MITIGATION IMPACT CALCULATIONS

This study performed a three-step calculation to determine the Whenever the project capacity size was reported, ESi was
GHG mitigation impact from bilateral and multilateral-supported calculated as follows:

2
renewable energy (RE) and energy efficiency (EE) finance in 2020.
In the first step, the annual emission reduction for a project ESi = PCi x 8760 (hours/yr) x CFi
number i in 2020 were calculated as follows:

1
where: PC i : Capacity of project i (MW)
CF i : Capacity factor of project i (dimensionless)
CO2R2020i = ESi x EFi
where: CO2R2020 i = Direct CO2 emission reduction in
2020 by project number i (t/yr)
ES i = Annual energy saved or substituted
by project number i (MWh/yr);
EF i = country-specific grid electricity CO2
emission factor for project number i
(t/MWh)

Following this step, the analysed projects’ aggregate mitigation impact was scaled up to estimate the total mitigation delivered by
bilateral- and multilateral-supported RE and EE projects in developing countries between 2005 and 2016. The scale-up was done by
using the following equation:

FINj,tot,2005-2016
CO2R2020tot,2005-2016 = Sj (S CO2R2020j,Dataset x
SFINj,Dataset
)
3
where: CO2R2020 tot,2005-2016 = total mitigation in 2020 by bilateral- and multilateral-supported RE and EE projects in
developing countries committed between 2005 and 2016 (MtCO2 /yr)
CO2R2020 j,Dataset = CO2 emissions reduction in 2020 estimated for a project under technology category j
in the dataset developed in this analysis (MtCO2/yr)
FINj,tot,2005-2016 = total finance committed by bilateral and multilateral institutions on technology category j
between 2005 and 2016 (million current USD)
FINj,Dataset = Finance committed by a project under technology category j in the dataset developed in this
analysis (million current USD)

In the final step, the analysed projects’ aggregate mitigation figure was used to estimate the expected mitigation from bilateral and
multilateral support that will be committed through 2020 in line with the US $100 billion global climate finance goal.237

FINj,tot,2005-2016 + FINj,tot,2015-2020
(
CO2R2020tot,2005-2020 = Sj S CO2R2020j,Dataset x
SFINj,Dataset ) 4
where: CO2Rtot,2005-2020 = total mitigation in 2020 by bilateral- and multilateral-supported RE and EE projects in 2020 in
developing countries committed between 2005 and 2020 (MtCO2/yr)
FINj,tot,2015-2020 = total finance expected to be committed by bilateral and multilateral institutions on technology
category j between 2015 and 2020 (million current USD)

Further details about these steps are given in the following sections. CO2 emissions generated through the construction of RE facilities
are excluded, as these are generally less than emissions from fossil fuel power plant construction.

77
 ANNEX

1.1 TECHNOLOGY CATEGORIZATION (J)

Technologies were categorised into the following (Table 1: Projects were categorized through a word search from project
Categorization of renewable energy technologies): solar descriptions. For projects reporting the implementation of
photovoltaic (PV), solar thermal, wind (including onshore and more than one technology, the category “multiple renewable
offshore), hydro (including large, medium and small), biomass/ technologies” was used.
waste and geothermal. The presented categorization makes it
possible to develop country- technology-specific capacity factors
in a consistent manner using datasets from different sources.

Table 1: Categorisation of renewable energy technologies

Category used in this study IRENA category OECD DAC category

Solar photovoltaic Solar Photovoltaic
Solar energy
Solar thermal Concentrated Solar Power
Geothermal energy Geothermal Energy Geothermal energy
Large Hydropower
Hydropower
(excluding large and medium, Medium Hydropower Hydro-electric power plants
over 50 MW capacities)
Small Hydropower
Offshore Wind
Wind Wind energy
Onshore Wind
Biogas
Bioenergy/waste Liquid Biofuels Biofuel-fired power plants
Solid Biomass
Energy generation, renewable sources –
Multiple renewable technologies
multiple technologies
Marine
(Not considered) Marine energy
Pumped storage and mixed plants

1.2 TOTAL ANNUAL ENERGY SAVED OR SUBSTITUTED (ES)

Total annual power generation by RE projects are in most cases For EE projects, the amount of energy saved annually reported in
calculated by using the power generation capacity and the the project documentation was used for the calculations.
technology- and country-specific capacity factors. Total annual
power generation values reported by supporting institutions
were used only when capacity values were not available. Whereas
the first method included the use of the capacity factor, the grid
electricity CO2 emission factor and the reported project capacity,
the second included only the grid electricity CO2 emission factor
and the reported project power.

78
 ANNEX  g

1.3 CAPACITY FACTORS (CF)

For efficient fossil fuel-fired power plant projects, uniform datasets from the IRENA database238. For CSP, a projected value
capacity factor of 80% was assumed. For other EE projects, for 2020 (33%) was used, drawn from the IEA Energy Technology
capacity factor values were not used for calculations because the Perspectives 2016 report.239 In the absence of country-specific
energy consumption reduction values were taken directly from capacity factor data, the average of all countries with values
the project documentation. For RE projects, average capacity was used as a proxy. For any project with multiple renewable
factors were calculated for the period 2010-2014 for individual technologies, the capacity factor was defined as the mean of
RE technologies per country, except for Concentrated Solar the capacity factor values of RE technologies involved in that
Power (CSP), using the installed capacity and power generation particular project.

Table 2: Country-specific average capacity factors by renewable technology.

Bioenergy/
Country Solar Wind Hydro Geothermal
waste
Range for the countries in which projects
5-20% 10-36% 10-84% N/A 42-84%
were implemented
Simple average across all countries
15% 22% 42% 40% 63%
in the IRENA database*

* Average values are used as proxies.

Source: Calculations based on IRENA (2016).

1.4 GRID ELECTRICITY CO2 EMISSION FACTORS (EF)

Grid electricity CO2 emission factors (tCO2 /MWh) were obtained g A
 sia: Cook Islands, Kiribati, Maldives, Marshall Islands,
from the Clean Development Mechanism (CDM) grid emission Myanmar, Nepal, Palau, Reunion, Samoa, Solomon Islands,
factors database (version 13 January 2017) published by the Timor Leste, Tonga and Vanuatu.
Institute for Global Environmental Strategies (IGES) 240. Among g L atin America: Antigua and Barbuda, Barbados, Dominica,
three different emission factors, the combined margin emission
Guadeloupe, Haiti, St. Lucia, St. Vincent and Grenadines and
factors were used for both RE and EE projects. Because the
Suriname.
database only covers countries with CDM projects, regional
average values were used for other countries. The countries that g A
 frica: Algeria, Benin, Botswana, Burundi, Cabo Verde,
are not covered by the IGES database (by region) are: Cameroon, Chad, Congo, Congo DR, Djibouti, Equatorial
Guinea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Liberia,
Lesotho, Malawi, Mauritania, Mozambique, Niger, Seychelles,
Togo and Zimbabwe.
g M
 iddle East: Iraq and Yemen.
g O
 thers: Afghanistan, Belarus, Kazakhstan, Kyrgyzstan,
Moldova, Tajikistan, Turkey.
For biomass-fired power plants, an attempt was made to make
simplified yet robust estimates on GHG emissions resulting from
bioenergy production, but it was not possible due to the lack of
data that can be applied to the specific set-up of each bioenergy
project analysed in this study.

79
 ANNEX

1.5 CALCULATED MITIGATION IMPACTS FOR THE PROJECT DATASET ASSESSED IN THIS REPORT
Table 3. presents total CO2 emission reductions expected in 2020
from 273 RE and EE projects per area and technology analysed
in this study.

Table 3: CO2 emission reductions expected in 2020 from 224 RE and EE projects analysed in this study.

Annual emissions Finance committed

Area/technology Number of projects
reduction (MtCO2 /yr) (million current USD)

RE 197 84.9 20,142

Solar Thermal 11 2.2 1,948

Geothermal 17 14.9 6,066

Hydro 29 2.5 1,567

Solar PV 39 36.7 2,719

Wind 44 15.4 4,281

Biomass/waste 19 0.2 324

Multiple RE 38 13.1 3,237

RE/EE 14 59.2 926

EE 62 113.8 10,831

1.6 SCALED UP MITIGATION IMPACTS USING DEVELOPMENT FINANCE COMMITMENTS

To quantify the total mitigation impact in year 2020 delivered Mitigation impacts were scaled up for each RE category. Shown
by bilateral- and multilateral-supported RE projects implemented in Table 4., the data comprised all renewable technologies and a
from 2005 - 2015, the aggregated mitigation impact for 2020 category was added for projects with multiple RE technologies.
calculated for the 273 projects was scaled up using the total For the scaling up calculations, finance data categorized as
finance committed (in million current US dollars) in approximately “multiple RE technologies” was proportionally distributed to
the same period. Data on financial commitments to renewable individual renewable energy categories, while finance and carbon
technology projects were obtained from the OECD Development mitigation data categorized as “RE/EE” was divided equally among
Assistance Committee (DAC) database241 for the years 2005 to the two categories. The results were summed to achieve a total
2015 (Table 4: Total amount of development finance committed renewable funding per technology. Solar PV and solar thermal
to RE projects by all supporting partners between 2005 and projects are scaled up collectively as “solar energy” projects. The
2015 (million current US dollars). Note: data for 2016 is not yet results are shown in Table 5.
available at the time of writing.
It should be noted that the estimated CO2 emissions reductions
The OECD DAC database does not provide finance figures for from bioenergy projects, which are uncertain due to the lack of
energy efficiency projects. Therefore, an assumption was made information on land-use related emissions, accounted for less
on the ratio between of finance for RE and EE projects; the ratio than 1% of total emissions reductions from all RE projects.
for 2014 estimated by Climate Policy Initiative (CPI) in 2015.242, 243 Therefore, the exclusion of indirect emissions related to biomass
was also assumed for the period 2005–2020. production is unlikely to affect our overall results.

80
 ANNEX  g

Table 4: Total amount of development finance committed to RE projects by all supporting partners between 2005
and 2015 (million current US dollars).

Sector 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Energy generation,
renewable
347 274 363 734 1,172 1,799 2,561 1,763 2,030 2,447 1,742 15,233
sources – multiple
technologies
Hydro-electric
480 720 1,181 442 208 716 586 997 1,387 1,285 806 8,808
power plants
Solar energy 64 53 25 155 328 243 103 621 971 1661 718 4,942
Wind energy 126 93 147 322 219 990 78 140 92 488 82 2,776
Marine energy 0.4 0.0 0.1 0.1 0.0 0.5 0.1 0.1 1
Geothermal
225 10 8 3 43 673 397 48 290 606 372 2,676
energy
Biofuel-fired
15 20 35 105 132 53 26 43 117 83 71 701
power plants

Total 1,258 1,171 1,760 1,761 2,102 4,474 3,751 3,612 4,886 6,571 3,791 35,137

Note: data for 2016 is not yet available at the time of writing.

Table 5: Estimated total mitigation impact in 2020 from RE and EE projects financed by bilateral and multilateral
institutions between 2005 and 2015.

Expected total emissions reduction

Total finance 2005-2015
OECD category in 2020 resulting from finance
(billion current USD)
2005 – 2016 (MtCO2e/yr)

RE and RE/EE total 49.4 322

Biofuel-fired power plants 1.67 6.05*

Solar energy 11.6 102.5

Geothermal energy 5.49 16.6

Hydro-electric power plants 24.6 171.1

Wind energy 6.07 26.5

EE total 26.2 332

* Includes energy projects from waste.

Several assumptions were made to estimate the expected total of that figure was assumed to be public finance. This means that
mitigation impact from finance commitments made between the public finance for RE and EE projects would comprise 25%
2005 and 2020. First, it was assumed that the global finance of the US $100 billion. Third, the US $25 billion was assumed to
target of US $100 billion in 2020 will be achieved. Second, half of be distributed to RE and EE at the same 2014 ratio as reported
this US $100 billion was assumed to address mitigation, and half by CPI.

81
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interview-with-ron-margalit-from-solar-home-system-provider-lumos/. Industries: Trends and Drivers. Working Paper. Washington, DC: World
178 Thomson Reuters and CDP have collaborated on this report to bring together the Resources Institute. Retrieved from: http://www.wri.org/publication/
latest data from companies that do report emissions and the latest estimates china-overseasinvestments-in-wind-and-solar-trends-and-drivers.
for those which do not or incompletely report emissions. The finance sector was 204 Cells shaded grey indicates no data available.
excluded, as there are insufficient estimates on its Scope 3 emissions. 205 Official Development Assistance + Other Official Flows
179 This is measured against total anthropogenic emissions, including land use of 206 Organization for Economic Cooperation and Development. Creditor Reportign
approximately 52 Gigatons CO 2e. This number includes direct, indirect and value System. Retrieved from: https://stats.oecd.org/Index.aspx?DataSetCode=CRS1#.
chain emissions (scopes 1, 2 and 3) adjusted for a double counting of 60%.
207 Agence Française de Développment. (2016). 2015: Our Work Around the World.
180 Top 15 in terms of total annual aggregate emissions. In the table, a Retreived from: http://www.afd.fr/webdav/site/afd/shared/PUBLICATIONS/
GHG Index above 100 indicates an increasing emissions trend; a Revenues Colonne-droite/Rapport-annuel-AFD-VA.pdf
Index above 100 indicates an increasing revenue trend; a Decoupling Index
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Employment Index above 100 indicates an increasing employment trend. Third Pole. Retrieved from: https://www.thethirdpole.net/2016/06/01/
china-becomes-worlds-biggest-development-lender/
181 This is measured against total anthropogenic emissions, including land use of
209 UK International Climate Finance. (2016). 2016 UK Climate Finance Results.
approximately 52 Gigatons CO 2e. This number includes direct, indirect and value
Retrieved from: https://www.gov.uk/government/uploads/system/uploads/
chain emissions (scopes 1, 2 and 3) adjusted for double counting of 60%
attachment_data/file/553402/2016-UK-Climate-Finance-Results2.pdf
182 Values which are “N/A” for 2016 are not available yet because they are not
210 FinnFund. (2016). Annual Report 2015. Retrieved from: http://annualreport.
provided by the companies in a manner which allows for peer comparison, and
finnfund.fi/2015/filebank/753-Annual_Report_2015.pdf
therefore require further analysis; all values will be available by end of 2017 and/
or in the full Global 250 Report. 211 FMO. (2016). 2015 Annual Report. Retrieved from: http://annualreport.fmo.
nl/l/library/download/urn:uuid:921394c0-bb5b-45d9-99e9-18d09fd21961/
183 Note this is an abridged version of case study as it appears in the full Global 250
fmo_annualreport2015_online.pdf?format=save_to_disk&ext=.pdf
report.
212 The International Climate Initiative (IKI), the German government’s climate
184 Of the examples of emerging leadership in this report, Total Group represents funding instrument, supplies the funds for many GIZ RE and EE projects. GIZ is the
an underlying thesis that even the most carbon intensive firms have the implementing organization for these projects while IKI is the supporting institution.
opportunity for transformative business model change
213 Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.
185 According to Total completed CDP Climate Change information request submissions Projects. Retrieved from: https://www.giz.de/projektdaten/index.
186 http://www.annualreports.com/HostedData/AnnualReportArchive/t/ action?request_locale=en_EN
NYSE_TOT_2015.pdf 214 KfW Development Bank. (24 February 2016). Presentation on KfW Development
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warming to 1.5C”. Climate Action Tracker. Available: http://climateactiontracker. Retrieved from: https://urldefense.proofpoint.com/v2/url?u=https-3A__www.
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2Dund-2DKlima_Zahlen-2DDaten-2DStudien_KfW-2DKlimafinanzierung-
188 Mission2020. 2020: The Climate Turning Point. Available: http://www.
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189 N. Hoehne, et al. (2015). Developing 2C Compatible Investing Criteria. mYpLVbZF3u_UtYA0frxBmccQMurQoKFFk&m=z0-IQV0b8MFl57AlNkF_
NewClimate Institute, Germanwatch and 2° Investing Initiative. Available: zVMGgXCzaqh3KPZ-K_-AgW8&s=W9Ezfc2ZuAIrScF_-ljhjQYyn0PGffRYH23Qo_
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190 Ibid. reports/annual/2015/c8h0vm00009q82bmatt/c8h0vm00009q82o5.pdf
191 International Energy Agency. (2017). Energy Technology Perspectives. 215 Retrieved from: https://www.jica.go.jp/english/publications/reports/
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EnergyTechnologyPerspectives2017ExecutiveSummaryEnglishversion.pdf 216 Norfund. (2016). 2015 Report on Operations; Norwegian Investment Fund for
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files/publication/167401/adb-cif-country-fact-sheets-2nd-ed.pdf from: https://www.opic.gov/sites/default/files/files/2015annualreport.pdf

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219 Climate Investment Funds. (2016). What we do. Retrieved from: http://www-cif.
climateinvestmentfunds.org/about
220 Cells shaded grey indicate no data available.
221 Asian Development Bank. (2016). 2015 Clean Energy Investment Project
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publication/184537/clean-energy-investment-2015.pdf
222 Asian Infrastructure Investment Bank. (2016). The People’s Republic of
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summary/bangladesh_distribution_system_upgrade_and_expansion.pdf
223 Climate Investment Funds. (2016). Empowering a Greener Future: Annual Report
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files/annual-report-2015/cif-annual-report-ebook.pdf
224 Climate Investment Funds. (2016). Empowering a Greener Future: Annual Report
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sustainability_report_2014_en.pdf.
227 Green Climate Fund. (2016). Resources Mobilized .Retrieved from: http://www.
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publications/GEF_numbers2015_CRA_bl2_web_1.pdf
229 Global Environment Facility. About Us. Retrieved from: https://www.thegef.org/
about-us
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Harmonized_Approach%20to_Greenhouse_Gas_Accounting.pdf
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Investment 2016. Retrieved from: http://fs-unep-centre.org/sites/default/files/
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243 USD 49 billion was identified for renewable energy projects and USD 26 billion
for energy efficiency projects.

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 GLOSSARY  g

GLOSSARY
The entries in this glossary are adapted from definitions provided Double counting: the situation where the same emission
by authoritative sources, such as the Intergovernmental Panel on reductions are counted towards meeting two parties’ pledges
Climate Change and UN Environment. (for example, if a country financially supports an initiative in
a developing country, and both countries count the emissions
Additionality: a criterion that stipulates that emissions savings
towards their own national reductions).
achieved by a project must not have happened anyway had the
project not taken place. Emission pathway: the trajectory of annual global greenhouse
gas emissions over time.
Baseline Scenario: the scenario that would have resulted had
additional mitigation efforts and policies not taken place. International Financial Institutions (IFIs): banks that have
been chartered by more than one country.
Bilateral Development Organization: a bilateral development
organization mobilizes public funds from national budgets to Multilateral Development Banks (MDBs): financial institutions
finance development initiatives abroad. Some groups also raise that draw public and private funding from multiple countries to
capital from private markets and some use both public and finance development initiatives in developing countries. These
private financing in their operations. Development institutions organizations often fund projects in collaboration with each
generally finance projects via grants and/or loans distributed other, employing multi-layered finance agreements that include
to governments of recipient nations, which in turn distribute grants, loans, and leveraged local funding.
funding to ministries, local agencies, and firms in charge of
Scenario: a hypothetical description of the future based on
project implementation.
specific propositions, such as the uptake of renewable energy
Bottom-up analysis: a method of analysis that looks at the technologies or the implementation of energy efficiency
aggregated emissions impact from individual renewable energy standards.
and energy efficiency projects.
Top-down analysis: a method of analysis that uses aggregated
Business as usual: the scenario that would have resulted had data, often supplied by organizations that support renewable
additional mitigation efforts and policies not taken place (with energy and energy efficiency projects in developing countries, to
respect to an agreed set). determine global impact of a certain policy, measure, group, etc.
Developing Countries: this report uses the same definition of
developing countries as used by organizations such as the IEA or
IRENA.243

87
 ACRONYMS

ACRONYMS
£ British Pound Gt Gigaton
€ Euro GW Gigawatt
2DS 2°C Scenario kg kilogram
B2DS Beyond 2°C Scenario kWh Kilowatt hours
AFD Agence Française de Développement LED Light Emitting Diode

ADB Asian Development Bank LCA Life-Cycle Analysis

APEC Asia Pacific Economic Cooperation LDV Light-duty vehicle

BAU Business as usual IDS Institute for Development Support

BAT Best available technology IEA International Energy Agency

BECCS Bioenergy with carbon capture and storage IFI International Financial Institution Framework for a
Harmonised Approach to Greenhouse Gas Accounting
BEIS UK Department for Business, Energy & Industrial Strategy
IKI International Climate Initiative
AFD Agence Française de Développement
IPCC Intergovernmental Panel on Climate Change
ADB Asian Development Bank
IRENA International Renewable Energy Agency
CAT Climate Action Tracker
ISO International Organization for Standardization
CCS Carbon capture and storage
MDB Multilateral development banks
CDP Carbon Disclosure Project
MWh Megawatt-hour
CF Capacity factor
NDCs Nationally Determined Contributions
CIF Climate Investment Fund
NDEs National designated entities
CO2 Carbon dioxide
NEEAPs National Energy Efficiency Action Plans
CO2e Carbon dioxide equivalent
ODA Official development assistance
DEFRA Department for Environment, Food & Rural Affairs of the
OECD Organisation for Economic Cooperation and Development
United Kingdom of Great Britain and Northern Ireland
PPA Power purchase agreement
DFID UK Department for International Development of the
United Kingdom of Great Britain and Northern Ireland PV Photovoltaic
EC European Commission PWh Petawatt-hour
ECOWAS Economic Community of West African States R&D Research and development

EE Energy efficiency RE Renewable energy

EIA Energy Information Administration of the United States of REN21 Renewable Energy Policy Network for the 21st Century
America REEEP Renewable Energy and Energy Efficiency Partnership
EIB European Investment Bank RPS Renewable Portfolio Standards
EJ Exajoule Rs Indian Rupee
ES Energy saved or substituted RTS Reference Technology Scenario
ETP Energy Technology Perspectives SBCP Sustainable Buildings Certification Program
EV Electric vehicle SBT Science-Based Targets
FIT Feed-in tariff SDGs Sustainable Development Goals
JICA Japan International Cooperation Agency SE4ALL Sustainable Energy For All
GDP Gross domestic product TWh Terawatt hour
GEEREF Global Energy Efficiency and Renewable Energy Fund UNFCCC United Nations Framework Convention on Climate Change
GEF Global Environment Facility US $ United States Dollars
GHG Greenhouse gas WEO World Energy Outlook
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit WRI World Resources Institute
GNI Gross national income WWF World Wildlife Fund

88
 IMPRESSUM/PICTURE RIGHTS  g

IMPRESSUM/PICTURE RIGHTS
Titelpage: People using lights powered by Off-Grid: Electric’s solar page 35: Luxembourg/shutterstock, Vytautas Kielaitis
service, mPower. © Power Africa; Geothermally active ground/ page 37: Monumento a la Revolucion, Mexico City, Mexico
shutterstock, SvedOliver; H’mong ethnic minority children/Laocai,
page 38: India; shutterstock, singh_lens
Vietnam; Wind Farm/shutterstock, Mongkol Udomkaew
page 39: Flickr, David Mellis, CC BY 2.0; Mwanza, Tanzania/Flickr,
page 9: Matemwe village, Zanzibar, Sam Eaton/PRI
Russell Watkins, Department for International Development (DFID)
page 10: Udaipur, India
page 40: Lambarene, Gabon, Africa; Tay Son street/Hanoi, Vietnam
page 13: Nanjing, China
page 50: Nanjing Yangtze River Bridge/Flickr, Jack No1, CC BY 3.0
page 14: World Bank Photo Collections Fotos
page 51: Bariadi, Tanzania/Flickr, Russell Watkins/Department
page 19: Kuala Lumpur, Malaysia; Hanoi, Vietnam
for International Development (DFID), CC BY 2.0
page 20: Women prepare matoke dish, Kampala
page 54: Hanoi, Vietnam; Hanoi Metro, Hanoi, Vietnam/
© IFPRI/Milo Mitchell
wikimedia commons, Autumnruv; CC BY-SA 4.0
page 22: Jama Masjid, Old Delhi, India
page 55: gobi desert, central asia
page 23: New Delhi, India; New Delhi, India; Amravati, India
page 56: Plaza de Caicedo, Cali, Colombia
page 24: Kampala, Uganda
page 58: Kokemnoure, Burkina Faso
page 26: Nanjing Jianye District, China; Nanjing, China; car
charger/Flickr, © Håkan Dahlström, CC BY 2.0 page 59: shutterstock, LIUSHENGFILM
page 27: Wikimedia Commons, DKMcLaren, CC BY-SA 4.0 page 62: barefoot-banner.jpg
page 28: Cali, Valle Del Cauca, Colombia; Creative Commons page 63: Kampala, Uganda
licensed by user CoCreatr on Flickr, CoCreatr.typepad.com page 69: shutterstock, Srdjan Randjelovic
page 30: Alameda (central park), Mexico/CityFlickr, Ingrid page 70: Casablanca, Morocco
Truemper, CC BY-NC 2.0; gardens integrated into building/ page 71: Mexico City, Mexico; Rwanda camp for internally
UnSplash, Oliver Wendel displaced people (IDP), Tawila, North Darfur/Flickr, Albert
page 32: Lagos, Nigeria/Flickr, Seun Ismail, CC BY-NC 2.0, Gonzalez Farran UNAMID, CC BY-NC-ND 2.0
Figmentmedia.co.uk; Jessica Seldon, Department for International
page 74: Morocco, shutterstock
Development (DFID), CC BY 2.0; Bariadi, Tanzania/Flickr, Russell
Watkins, Department for International Development (DFID), page 75: People using lights powered by Off-Grid: Electric’s solar
CC BY 2.0; Flickr, Russell Watkins/Department for International service, mPower. © Power Africa
Development, CC BY 2.0; Uribia, Colombia page 87: Siem Reap, Cambodia
page 33: Bariadi, Tanzania, Flickr, Russell Watkins, Department page 89: Isla Contoy, Mexico
for International Development, CC BY 2.0

89
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