1. Enabling Environments for Clean Energy Technology Transfer
Michael Gerbis
President
The Delphi Group

2. The Delphi Group Clean Energy & Environmental Consultancy since 1988
Active in North American, Latin American, Asian and European markets
Key business units:
Clean Energy
Climate Change
Corporate Environmental Strategies
Health & Environment

3. Overview Enabling Environments - Private sector Perspective CDM & JI
Canadian Programs
Lessons learned from Delphi’s CACBI initiative
Essentials for developing the market
Role of governments & private sector
Conclusions

4. Enabling Environments
To promote sustainable development
Development priorities
Local capacity building
To promote investment
Commercial viability and replication
Generate economic returns
Intersection of these enabling
environments is of prime interest

5. CDM & JI
Mechanisms that can Facilitate the Development of Enabling Environments
Promote SD, increase foreign investment, catalyze technology transfer
Build capacity, enhance environment & social development
Provide new commercial opp., leverage financing, + revenue, offset risks, etc.

6. What Makes a Market Attractive for CDM/JI?
To private sector, enabling an environment means making it attractive for investment
Minimal business risks (cost, viability)
Maximize returns on investment
High potential for sales and replication
Cost effective CERs/ERUs

7. Canadian Action
Several Canadian Federal Government Initiatives that help set the Foundation
Participate in International Forums (EGTT)
Canadian Climate Change Development Fund (CCCDF)
Cdn Initiative for Int’l Tech Transfer (CIITT)
Technology Early Action Measures (TEAM)
CDM/JI Feasibility & Baselines

8. Canada-Argentina Capacity Building Initiative
$Cdn 1.5 funded by CIDA’s CCCDF
Enabling environment for climate change TT
Stakeholder capacity building & engagement
Demonstration TT project
Replication
CACBI

9. Establishing Enabling Environments for CDM/JI
Key mistakes often made
Government
Creating uncertainty or restrictive rules/policy
Not setting priorities (SD, types of projects…)
Trying to be the “gatekeeper” of project approval
Setting policy/rules and not following through
Private Sector
Do not understand unique aspects of the market
Do not know SD or Tech priorities, CDM/JI process
No engagement of stakeholders

10. Essentials to Develop the Market
Four essential principles for market development by Governments:
Clarity: Make the rules clear
Consistency: Don’t change the rules
Transparency: Enforcing the rules
Disseminate: Make the rules and tools available

11. Enabling a CDM Environment
Developed by The Delphi Group, 2003
Permission for Use Required
Int’l
Validated CERs
Market Availability of CERs
Baseline
& CER Estimation
CDM Project Review Process
Project
Cert’n
&
Verification
CDM Project Review System
Capacity Building For Stakeholders
Development of a CDM Stakeholder System
National CDM Stakeholders System
National Development Foundation
Economic Integration of CDM With Key Industry Sectors
National
Development
Priorities
Sustainable Development Criteria

12. National Governments can Prime the Market
Assess the Market
Build capacity of priority stakeholders
Technical
Networking & engagement opportunities
Match demand with supply
Create incentives/remove barriers for TT
Deregulation, net metering, set RPS
Full cost pricing, eliminate fossil fuel subsidies
Harmonized standards & interconnection guidelines

13. CACBI’s Accomplishments
Institutional Capacity building to:
Define SD & CDM National priorities
Catalyzing Measures
Develop CDM review system (small & large)
Engagement of stakeholders
Creating networking opportunities
Website and widespread communication (

14. Private Sector Role
Understand Local Environment (regulatory, economic, social, technical, etc.)
Capacity Building
Institutional, technical, etc.
Identify Market Opportunities
Technology Development & Adaptation
Financing
Diffusion, Transfer & Replication

15. CACBI’s Accomplishments
Demonstration project to illustrate the system
Illustration of system and benefits of CDM
Targeted Stakeholder Capacity Building
Pan-American University Network
Identification, shaping of solid CDM projects & sources of financing

16. International Authorities can Prime the Market
Subsidize OE costs for first allotment of projects
Encourage & facilitate establishment of OEs in all regions
Help model countries create and use SD and project screens
Continue with Int’l Forums focusing on specific objectives & outcomes

17. Developed & Developing Country Issue
Unleashing the Potential of PV in Canada
Typical Barriers
Need for an “Enabling Environment”
Path Forward
Reduce Price Gap & Create a Flexible Market
Integrate Renewables into Future Energy Strategy
Awareness & Training
Foster Private-Public Partnerships

18. Conclusions Learning process for us all
Building enabling environments is difficult and slow
Success comes by keeping it simple
For CDM/JI there is a need for an ‘Architectural Framework’
CACBI has enjoyed excellent response
Process outlined is transportable
This is both a Public & Private Sector Responsibility
Learning process for us all