Sustainable Energy for All Commitments and Accountability Framework

1. Sustainable Energy for All Commitments and Accountability Framework Ole Lund Hansen Head, Global Compact LEAD Issue Manager, Energy

2. Commitments and Accountability SG’s Sustainable Energy for All Initiative – Key Deliverables Secretary- General’s Vision Action “Accelerator” (Web-based platform) ActionAgenda • Web-based, marketplace portal: • Visions, road maps, milestones, indicators • Action Agenda recommendations • Case studies • Commitments • Accountability mechanisms • Progress “snap shots” • Action Agenda document containing: • Areas of focus • Menu of “high-impact” opportunities • Roles and responsibilities • Roadmap with milestones • Generic frameworks for accountability • Identifying & mobilizing commitments to the Action Agenda: • Guidance and structure • Criteria • Recognition • Legitimacy • Accountability measures • SG’s goal and objectives: • Universal access to modern energy services. • Doubling the rate of improvement in energy efficiency. • Doubling the share of renewable energy. 1st /2nd Q 2012 • Jan 2012 onward • Announcement at Rio+20 November 2011 January 2012

3. New UN “Marketplace” for Voluntary Corporate Commitments • Participation in the UN Global Compact is a voluntary commitment to corporate sustainability and transparency • Similar to other initiatives, we have solicited issue-specific commitments on an ad-hoc basis (incl. Private Sector Forum) • Leading new undertaking to systematize voluntary corporate commitments to specific UN goals on a system-wide platform • Large-scale commitments to SE4A by Rio+20 may lead the way for progress on other issues and goals

4. Commitments and Accountability Framework 1a 1b Commitment Sector Specific Recommendations and Best Practices GeneralCommitmentCriteria 2 Selection Screen 3 Recognition and Visibility 4 Accountability Mechanisms

5. Types and Examples of Corporate Commitments to SE4A Partnerships Individual Action Bayer commits to improve its energy efficiency by reducing specific greenhouse gas emissions by 35% by 2020 (baseline 2005) per metric ton of products sold Acciona, a construction and infrastructure company, commits to create favorable conditions for introducing a renewable energy framework to Mexico in collaboration with local and national governments and other relevant stakeholders Core Business Social Investments Deutsche Bank commits to facilitate financing structures which will expand the financing of energy efficiency projects and enable the deployment of renewable energy in developed and developing countries Novozymes will partner with CleanStar Mozambique to aid farmers in Sofala province in implementing environmentally restorative agroforestry. CSM will purchase whatever the farmers do not consume, increasing their incomes by 400% Advocacy Calvert Investments plans to demonstrate the financial and investment risks and opportunities related to climate change and renewable energy and use this to engage on strategies that will reduce greenhouse gas emissions and promote cleaner energy Aviva commits to form a coalition of financial institutions, NGOs, investors, & professional bodies that will call to develop a global policy framework requiring listed and large private companies to integrate sustainability into their annual report and accounts

6. Types and Examples of Public Commitments to SE4A...? Individual Action Partnerships Policy Switzerland pledged to strengthen their FIT law that became effective in 2009, increasing overall money for FIT 12 fold to provide qualified projects more resources as they come online Pledges were made on the integration of Germany’s electricity grid into the European grid network as well as electric vehicle and transportation deployment Procurement & Spending Tokyo pledged to increase its use of renewable energy through the Tokyo Metropolitan Government Cap and Trade program and cooperation among regions India created a global competition to develop and deploy affordable, efficient and clean cookstove technologies Advocacy & ODA Germany committed to a 300 billion euro contribution annually from 2010 to 2012 for capacity building and development coordination on renewable energy and energy efficiency in developing countries Norway committed to double support for the promotion of clean energy in developing countries from NOK 800 million to 1.6 billion by 2011 Similarly, other actors such as NGOs, non-profits, individuals, etc. can make commitments to SE4A

7. Commitments and Accountability Framework 1a 1b Commitment Sector Specific Recommendations and Best Practices GeneralCommitmentCriteria 2 Selection Screen 3 Recognition and Visibility 4 Accountability Mechanisms

8. Draft General Commitment Criteria Commitment Criteria Output Input Accountability

9. Selection Screen ‘Blind acceptance’ Technical review High-level or expert review by legitimate body • No official review or rejection process • All commitments are accepted unless obviously fall short of application criteria • Objective set of criteria that all commitments must meet • Absolute thresholds established along every dimension • Simple review process with legitimacy coming from objective criteria • Mixture of objective and subjective criteria that must be met • Subjective criteria require a legitimate body or individual to decide on commitments

10. Recognition and Visibility to Incentivize Strong Commitments • Recognition of commitment on websites (UN and SE4A) and reports • Speaking-opportunities at high-level events, incl. Abu Dhabi, Rio+201 Allow for self-promotion using special logo (with proper integrity measures) Awards for strong commitments What else???

11. Draft Accountability Framework • Annual, public reporting on progress on implementation • Description and measurement of progress against pre-defined KPIs and targets • Integrated into annual COP (for GC participants) or sustainability report • Optional 3rd party review of self-reporting on progress (differentiation) • Delisting policies and procedures for non-compliance • Other (low-cost) options?

12. Key questions for consideration • Are commitments to SE4A part of our definition of success? • Beyond the private sector? (=> need to define criteria and adapt accountability framework for non-business sectors) • To what extent and how should commitments be screened against the criteria? (quantity vs. quality) • How can we best ‘shine the light’ on commitment-makers? • Does annual reporting and delisting policies constitute an adequate accountability framework?