Renewable Energy Promotion Policy and the International Community

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03/05/2012. 2. Paul Suding. I. How are Latin American and Caribbean countries moving forward in making policy changes to promote renewable energy? II. What support should the international community provide? . 03/05/2012. 3. Paul Suding. Source: REN21 Global Status Report 2006:. Past: Exception

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Renewable Energy Promotion Policy and the International Community

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1. 03/05/2012 1 Paul Suding Renewable Energy Promotion Policy and the International Community Inter-American Development Bank Conference on Investing in Sustainable Energy and Climate Change Mitigation Washington, 28 and 29 November 2006

2. 03/05/2012 2 Paul Suding I. How are Latin American and Caribbean countries moving forward in making policy changes to promote renewable energy? II. What support should the international community provide?

3. 03/05/2012 3 Paul Suding Source: REN21 Global Status Report 2006: Past: Exceptional RE Developments in LAC Large Hydro Power :South America Geothermal Power :Mexico and Central America Ethanol Programme :Brazil Mechanical Wind Pumps :Argentina Recent past: Little participation in recent global RE growth trend Strong global renewable energy investment and production growth trends (sustained wind and solar PV annual growth rates of 25% and 50%, high growth in Biofuels and Biomass electricity as well as Solar Hot Water; strong rural RE growth in Asia) In Latin America renewable significant energy production increase only in Biofuels 40 million households worldwide use rooftop solar collectors, 2 million geothermal heat pumps are used in 30 countries. Even so, biomass-fueled heating provides five times more heat worldwide than solar and geothermal combined. 33 billion litres biofuel production in 2004, (3% of global gasoline consumption). Ethanol provided 44% of nondiesel motor vehicle fuel in Brazil in 2004 and was being blended with 30% of all gasoline sold in the US. 4.5 million green power consumers in Europe, US, Canada, Australia, Japan in 2004 1.7 million direct jobs from RE manufacturing, operations, maintenance RE provides electric power, heat, motive power, and water pumping for tens of millions of people in rural areas of DCs.40 million households worldwide use rooftop solar collectors, 2 million geothermal heat pumps are used in 30 countries. Even so, biomass-fueled heating provides five times more heat worldwide than solar and geothermal combined. 33 billion litres biofuel production in 2004, (3% of global gasoline consumption). Ethanol provided 44% of nondiesel motor vehicle fuel in Brazil in 2004 and was being blended with 30% of all gasoline sold in the US. 4.5 million green power consumers in Europe, US, Canada, Australia, Japan in 2004 1.7 million direct jobs from RE manufacturing, operations, maintenance RE provides electric power, heat, motive power, and water pumping for tens of millions of people in rural areas of DCs.

4. 03/05/2012 4 Paul Suding Renewable Energy in main energy markets Leading countries (capacity or production) 2005 By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide

5. 03/05/2012 5 Paul Suding Renewabel Energy systems in rural energy Leading countries 2005 By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide

6. 03/05/2012 6 Paul Suding I. 2. Renewable Energy Promotion Policies The biggest RE growth is in countries, states and municipalities with RE promotion policies Brazil and US for biofuels US States, Spain, Germany, for wind energy; Germany, Japan for photovoltaic energy China, City of Barcelona etc. for solar water heating Promoting policies have mushroomed globally: In 2005 at least 54 countries had RE promotion policies, including 15 Developing Countries; in LAC only Brazil 2005/2006 policy changes in LAC: rapid for Biofuels, cautious in electricity generation numerous countries are introducing a policy (quota: blending) to introduce bioenergy in transport fuel markets Several national and local government initiatives for promotion in electricity sector By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide By 2005, at least 32 countries and 5 states/provinces had adopted feed-in policies. At least 32 states or provinces have enacted RPS, half of these since 2003, and six countries have enacted national RPS since 2001. Direct capital investment subsidy, grant, or rebate is offered in at least 30 countries. Most US states and at least 32 other countries offer a variety of tax incentives and credits for RE. Policy targets for RE exist in at least 45 countries, incl. 10 DC, all 25 EU countries, many states/provinces in US and Canada, as well as municipalities around the world. Mandates for blending biofuels into vehicle fuels have been enacted in Brazil, China, India, and at least 20 states/provinces worldwide

7. 03/05/2012 7 Paul Suding Renewable Energy Take-Off, when Market Access secure and Promotion Policies in Place

8. 03/05/2012 8 Paul Suding II. 1. RE policy making is a national task; decision makers and stakeholders

9. 03/05/2012 9 Paul Suding II.2. Various Options of International Support for Renewable Energy Promotion Policies Vehicles International Commitments: negotiated or voluntary, targets or actions International Review Arrangement Policy dialogue Showcasing of leading country Consulting, Twinning, Information; Exchange of Experience; Supporting conditions Financial instruments frameworks to support investment, reduce risks Collaboration on International Standards and norms, technical guidelines Technology Transfer Joint R&D, and Industrial Cooperation Capacity building Access for project developers and investors Business

10. 03/05/2012 10 Paul Suding II.3. Conclusion National policy: Transform markets to allow RE business to access markets at conditions which value environmental, climate, supply security, local development aspects International support Include all stakeholder groups Demonstrate effective and viable RE promotion policies and their impacts on investment and energy development Develop further appropriate financing instruments Share technology development

11. 03/05/2012 11 Paul Suding REN21: Mission REN21 - providing international leadership for the rapid expansion of renewable energy in developing and industrial countries based on cooperation of participants Informal network, flexible, multiple stakeholders from energy, development and environment community www.ren21.net THANK YOU FOR YOUR ATTENTION

12. 03/05/2012 12 Paul Suding Global policy trends: Electricity generation market Source: REN21 Global Status Report 2006

13. 03/05/2012 13 Paul Suding Source: REN21 : Relatively few commitments (except Brazil) Underproportional reporting in the follow up Low implementation rate in the reported commitments until 2006 40 million households worldwide use rooftop solar collectors, 2 million geothermal heat pumps are used in 30 countries. Even so, biomass-fueled heating provides five times more heat worldwide than solar and geothermal combined. 33 billion litres biofuel production in 2004, (3% of global gasoline consumption). Ethanol provided 44% of nondiesel motor vehicle fuel in Brazil in 2004 and was being blended with 30% of all gasoline sold in the US. 4.5 million green power consumers in Europe, US, Canada, Australia, Japan in 2004 1.7 million direct jobs from RE manufacturing, operations, maintenance RE provides electric power, heat, motive power, and water pumping for tens of millions of people in rural areas of DCs.40 million households worldwide use rooftop solar collectors, 2 million geothermal heat pumps are used in 30 countries. Even so, biomass-fueled heating provides five times more heat worldwide than solar and geothermal combined. 33 billion litres biofuel production in 2004, (3% of global gasoline consumption). Ethanol provided 44% of nondiesel motor vehicle fuel in Brazil in 2004 and was being blended with 30% of all gasoline sold in the US. 4.5 million green power consumers in Europe, US, Canada, Australia, Japan in 2004 1.7 million direct jobs from RE manufacturing, operations, maintenance RE provides electric power, heat, motive power, and water pumping for tens of millions of people in rural areas of DCs.

14. 03/05/2012 14 Paul Suding RE International Action Programme Commitments

15. 03/05/2012 15 Paul Suding International Action Programme Implementation

16. 03/05/2012 16 Paul Suding But: High Share of Latin America and Caribbean in Registered CDM, by August 2006

17. 03/05/2012 17 Paul Suding Latin America: already advanced in specific RE (hydro, geothermal, ethanol) at least in parts of the region low dynamics on wind and solar which are the global growth champions

18. 03/05/2012 18 Paul Suding Latin America RE : - high share in electricity generation market, but only hydro and geothermal; potential for small hydro, biomass, wind and solar - high electrification in Mercosur, Andean and Mexico, significant potential for RE in rural (and urban poor) electrification in remaining parts and significant parts of most Central American and Caribbean countries - significant share in transport fuel markets; leader Brazil can be copied in many countries - insignificantly low in water and room heating: high potential for solar thermal technology

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