Climate policy mapping and analysis

2 Imprint Published by: Contact adelphi Caspar-Theyss-Strasse 14a Berlin / Germany T F E I Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH CF Ready Program Godesberger Allee Bonn/Germany T F E I Dennis Tänzler E T Dorit Lehr E T tise/html/3041.html Any content written by named authors do not necessarily reflect the views of adelphi nor GIZ nor of the German Federal Ministry for Economic Cooperation and Development. Although the authors take all possible care to ensure the correctness of published information, no warranty can be accepted regarding the correctness, accuracy, reliability and completeness of the content of this information. August 2014

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4 Objective of the Mapping and Analysis Exercise What you can expect to learn from this exercise: Identify national policy instruments Learn about criteria for assessing the effectiveness of policy instruments (their strengths and weaknesses) Ultimately, to convey an idea of how participants could draw their own policy map as a step towards improving their country’s Climate Finance Readiness

5 Criteria for Policy Mapping and Assessment Exercise Reflections Agenda

6 Policy Instrument Mapping - Exercise How to draw a policy map 1.Think of sectors that could be of relevance for Climate Finance (e.g. buildings, infrastructure, agriculture) 2.Review the existing policy landscape: a.Identify policy instruments – regulations and market-based instruments – relevant for Climate Finance. a.Estimate how effective these policies are according to certain criteria.

7 Policy Instrument Mapping - Criteria Step 1 According to the introduction of policy instruments in the overview presentation, which sectors seem relevant to you? Sources: pictogram-free.com; XXXX Katya???

8 Step 2 What policy instruments come to mind that are relevant for Climate Finance? Policy Instrument Mapping - Criteria regulations § § § market-based instruments adaptation mitigation

9 BuildingsEnergy ? Market-based instruments Regulations Source:World Bank 2013 IPCC 2007 Draw the Policy Map ? ? XXX code Feed-in tariff ? ? ? ? Grants

10 Policy Instrument Mapping - Criteria Step 3 Looking at the policy instruments you identified: How effective are these policy instruments, considering the following criteria? Sources: XXXX Katya??? Costs for the public sector Environmental impact Costs for the private sector

11 Assessment of Criteria How much does the public sector invest in this instrument ? What are the costs for the private sector e.g. households ? Costs for the public sector Does the instrument lead to considerable environmental impact e.g. CO 2 reductions? Environmental impact Costs for the private sector Criteria Assessment

12 Assessment of Criteria How much does the public sector invest in this instrument ? What are the costs for the private sector e.g. households ? Costs for the public sector Does the instrument lead to considerable environmental impact e.g. CO 2 reductions? Environmental impact Costs for the private sector Criteria Assessment How high are the costs to the public sector of implementing the instrument? high medium low high medium low How great are the (positive) environmental impacts expected to be from the instrument? How high are the costs to the private sector of implementing the instrument? low medium great

13 Policy Instrument Mapping Exercise Now it is your turn to do the exercise!  Now, break up into groups of 4 people Step 1: List the sectors that could be relevant for climate related policy instruments (e.g. buildings, energy). Step 2: Brainstorm on policy instruments that are relevant for climate finance. Differentiate between regulations and market-based instruments. Step 3: Draw the policy map Step 4: Assess 2-3 policy instruments that you identified in step 2 with regards to costs for the public sector, environmental impact and costs for the private sector. Which instrument(s) have low/medium/high/ costs or impacts? For instructions and further information please review the hand-out given to you!

14 BuildingsEnergyIndustry Infrastructure Agriculture Grants Market-based instruments Regulations Source:World Bank 2013 IPCC 2007 Example of a Policy Map Building code Criteria 1: Criteria 2: Criteria 3: Building code Criteria 1: Criteria 2: Criteria 3: Concessional loan Vehicle standards Performance standards Land-use regulation Concessional loans Low-cost debt Carbon tax Emission trading scheme Feed-in tariff example

15 Source: adapted overview, based on Emerton L. et al (2006) Sustainability Financing of Protected Arias, IUCN and Fischer A. / Petersohn L. / Hubbert W. (2004): Natural Resources and Governance: Incentives for Sustainable Resource USE GTZ Example of a Policy Map

16 Policy Instrument Mapping Exercise Based on the results from your assessments, discuss: Which instruments seem most efficient for your country in view of their costs/impacts? What are potential downsides of the policy instruments analysed?

17 Policy Instrument Mapping – Reflections Getting CLIF ready How easy did you find it to assess the costs and impacts of the policy instruments? Which instruments have great costs but uncertain impacts? Which instruments do you find useful? Why?

18 Policy Instrument Mapping – Next Steps Checklist to get CLIF ready According to what you learnt from this exercise you could … Think about how you or your institution could conduct a policy mapping and analysis in your country. Reflect on which criteria would be useful in your country for such an analysis.

19 Policy Instrument Mapping - Exercise Thank you for your attention!!!