Green Competitiveness The Promise and Challenge of Climate Technology Innovation for Developing Countries Wednesday, 21 October 2015

INVESTMENTS: $70 – 100 billion annually through 2050 just to adapt to climate change

Scope of the market opportunity

Projecting growth amidst disruption

Step-change price drop

+ = $ 421 $ 1 $ 420 + = $ 45 $ 35 $ 10

Development without Electricity?

Growing, diverse political urgency Massive investments for developing countries Profound technological change

What is Green Competitiveness? Climate change – and the responses to climate change - are triggering transformations that effect industrial and national competitiveness This creates both threats – enforced/induced mitigation, changing weather patterns affecting industry and trade… … And opportunities – rapid technology advancement, large new financing finance flows, emerging new sectors (eg, solar or EV) The Green Competitiveness gathers WBG and other expertise in industry and national competitiveness to apply with in the WBG and as part of the global discussion in these matters Greening Industry and Trade Help existing industries adapt to climate measures with global best practice Standards, Industrial energy efficiency, SEZs Scaling New Sectors Identify new sectors and help scale for relevant countries Innovation ecosystem, competitive analysis, international links

Sectors ripe for climate innovation Renewable energy – solar (PV, CSP. SHW), wind, biomass/biogas, hydro, other Energy efficiency – industrial, commercial and residential Mitigation Climate-smart agriculture Water supply Information/warning systems Disaster preparedness and response Adaptation/ Resilience

Common traits of climate sectors Involves physical hardware Long lead times in development Higher up-front capital costs and distribution Facing established incumbent technologies and players, often state-owned Must fit local circumstance (usually) Potential strong political support Potential strong customer appeal Potential climate funding available Offer co-benefits and addressing longstanding current problems

Current Programs under WBG Green Competitiveness Diagnostics for Climate Innovation Centers & Climate Tech Ventures Standards & Incentives Target Industries Climate Efficient Industries Climate Technology Program Solutions Lab for Climate Tech Ventures Industrial Infrastructure Mainstreaming the Climate Tech Ventures Green Buildings Projects Staff IFC: 18 projects, $33.5m WB: 16 projects, $1bn + IFC: approx 10 staff WB: approx 12 staff

Climate Efficient Industries WBG response to climate change and sustainability challenges in industries 1/3 of GHG emissions is due to industries 8% GHG reduction possible at low costs Clean tech - a $3 trillion industry by 2030 FACTS Standards & labeling Priority industries Industrial areas APPROACH Green buildings Energy efficient equipment Energy efficient appliances Cement Textiles Cleantech Green (low-carbon) zones Eco-industrial parks Industrial symbiosis Current portfolio: 18 projects = $33.5 million Pipeline: 6 projects. Priority regions Asia, MENA Example: Annual cost savings of over $4m in Bangladesh EPZs Target: to reduce GHG emissions by 1.2 million tons/ year by 2020 RESULTS

Climate Technology Program WBG support to client countries to develop indigenous, commercial innovations in climate tech A global network of Climate Innovation Centers (CICs) http://www.infodev.org/videos#video-602

CTP Project Example and Results Launched September 2012 USD 13 m budget, funded by local DANIDA and DFID Part of GoK’s National Climate Change Action Plan (NCCAP) Working with more than 100 companies Voted “Most Promising Incubator” for 2014 http://bit.ly/1VaPXBS Secured additional USD 12 m funding CTP Lifetime Results Targets Typical ‘green growth’ results, both economic and environmental Approx 300k CO2 mitigation, 600k+ people more resilient to climate change, Over 100 companies receiving private financing, 30+ policies amended Effect of innovation and scaling…

Principles for Climate Innovation Policies R&D spending, tax credits & grants Public-private collaborations Demonstration projects and competitions Applied research networks Technology Development Direct technical assistance/business advisory Linking to investors Business incubators and accelerators Entrepreneurship and business acceleration Soft loans and loan guarantees Stimulate seed and venture capital ecosystem Blended public-private investment Technology-specific consumer credits Innovation Finance

Principles for Climate Innovation Policies (cont’d) Renewable energy credits ad feed-in tariffs Standards Product labeling and certifications Consumer education campaigns Market Development Carbon pricing / cap-and-trade Taxes valuing negative externalities Favorable import taxes and quotas State procurement to favor cleaner solutions Legal and regulatory frameworks Networks across borders Partnerships linking high tech centers with commercial players in consumer markets Incentives for international collaboration International Connections

Dual sets of goals for climate innovation Climate Objectives Addressing a major change that disproportionately affects the poor and disenfranchised Economic Objectives Greater efficiency Jobs Investment Co-benefits How can stakeholders position themselves to take advantage of these new, major, transformational and disruptive economic realities? How can stakeholders position themselves to take advantage of these new, major, transformational and disruptive economic reality?

Conference on November 19 Event to examine how private sector response to climate change can bring competitiveness, new technologies and growth Co-hosted with Sitra Discussions with WRI Prelude to but not directly linked to COP-21 CC-CCSA involvement

Thank you…