CCG COP Events

Achieving the climate transition will call for a major surge of clean energy investments towards mid-century. While Ministries of Energy are making progress in developing optimal energy investment plans for the transition, there is little consideration of whether these plans are financially affordable for countries, given the terms on which they access finance and the cashflows available to service the debt. In this sense, Ministries of Finance can provide a crucial reality check on the financial feasibility of planned investments, but too often remain disengaged from the planning process until relatively late in the process.

This webinar explored how Ministries of Energy and Finance can work more closely together in support of the climate transition, highlighting advantages based on recent cases and showcasing the approach we call Data-to-Deal as a possible way forward for both parties. Read the policy brief: Data-to-Deal: An Emerging and Effective Approach to Supporting LMICs in Climate Transition

This event zoomed in specifically on the linkages between planning activities conducted by the Ministry of Energy and financing strategies led by the Ministry of Finance. We attempted to answer the following questions:

• What kind of language barriers arise between Ministries of Energy andFinance?
• What are the processes that facilitate engagement between Ministries of Energy and Finance?
• What steps are needed to progress from investment plans to financing plans?
• What are the economic and fiscal issues that energy planners need to address?
• What tools exist to facilitate dialogue between Ministries of Energy and Finance?

Our Speakers

Chair:

• Mark Howells (Director, CCG and University of Loughborough and Imperial College London)

Panellists:

• Boniface Kinyanjui (Kenya Power)
• Jairo Quirós-Tortós (University of Costa Rica)
• Theodoros Zachariadis (Cyprus Institute)
• Vivien Foster (Imperial College London)

This video of this webinar is here.  

The climate transition poses exceptionally complex challenges for low- and middle-income (LMIC) fossil fuel producing countries, which differ significantly depending on country characteristics. Consequently, countries may need to simultaneously achieve up to three distinct transitions: an energy transition away from domestic fossil fuel dependency; an economic transition towards more diversified economic activities and exports; and an equitable fossil fuel transition that protects those most affected by change.

Currently, LMIC fossil fuel producers lack many of the prerequisites for delivering such transitions, including human capital, physical infrastructure and good governance. In response, the global community needs not only to step-up traditional climate finance, but also to tailor a broader package of development finance and capacity building support that also encompasses economic diversification and social protection.

This event used the conceptual framework of a scientific paper that later appeared in Nature Energy as the basis for a conversation with representatives of specific fossil fuel producing LMICs. Using the wealth of material we collected, we attempted to answer the following questions:

• What kinds of transition challenges are faced by different LMIC fossil fuel producers?
• How can the international community best support the transition for LMIC fossil fuel producers?

Speakers

Chair

• Yacob Mulugetta (Professor, University College London)

Panellists

• Navroz Dubash (Professor, Centre for Economic Policy, India)
• Jean-Paul Adam (Director, UNECA)
• Tasneem Essop (Climate Action Network)
• Mohamed Youba Sokona (African Development Bank)

The video of this webinar is here.  

Read our policy brief: Financing green grids is critical to support a Paris-aligned energy transition

Background

Countries around the world are actively engaged in designing energy transition pathways that fit their own particular situations. Doing so poses considerable challenges, which range all the way from conducting sound evidence-based energy sector planning (built on data) to developing an affordable financing strategy for the required investments (leading to deals).

Recent experience from several countries suggests that a coordinated multi-stakeholder approach can significantly accelerate the process of defining the preferred transition pathway and unlocking the necessary finance. Notably, Costa Rica embarked on a national strategy process in 2019 which, by the end of 2022, had raised over US$ 2.4 billion of climate finance based on just US$ 200,000 of analytical work. Some of the critical success factors include sustained high-level engagement between Ministries of Energy and Finance; close collaboration between policymakers and academia; and empowerment of local experts to build locally grounded and relevant analytical tools.

See the event flyer  

Read our new policy briefs:

• Data-to-Deal: An Emerging and Effective Approach to Supporting LMICs in Climate Transition
• Data-to-Deal: How can Countries in the Global South Afford the Climate Transition?

Also find out more about how Data-to-Deal worked in Costa Rica in this report : Data-to-Deal: Open Data and Modelling of Long-Term Strategies to Financial Resource Mobilization – the case of Costa Rica 

Motivation

Achieving decarbonisation calls for a steep reduction in the production and consumption of fossil fuels. This poses particular challenges for major fossil fuel producers in the low- and middle-income countries (LMICs), whose development prospects – as well as government finances – are closely intertwined with fossil fuels. 

The nature of these challenges differs markedly across LMIC fossil fuel producers. Some countries are established fossil fuel producers, while others have recently discovered major reserves. Some countries produce mainly to satisfy their own domestic energy needs, while for others fossil fuel production is primarily export oriented.

Reflecting these important differences, this event discusses context-specific diversification strategies for LMIC fossil fuel producers to allow them to make holistic progress towards the SDGs in a low-carbon world. This entails a triple diversification challenge:  diversification of energy systems to reduce carbon footprints; diversification of economies to reduce fossil fuel dependency; and equitable diversification of fossil fuel production to protect those most prejudiced by the transition.

The international community must commit to principles of global solidarity to ease the particularly challenging transition path faced by fossil fuel producing LMICs, offering attractive and realistic development alternatives. Scaling-up climate finance is essential, but on its own will not be enough. Concerted efforts are also needed to support economic diversification, targeting measures to raise competitiveness, expand and diversify trade, build human capital and promote employment. This calls for a substantial, comprehensive, accessible, and rapid burst of financial and capacity building support targeted towards fossil fuel producing LMICs. 

Chair

Yacob Mulugetta, Professor, University College London, yacob.mulugetta@ucl.ac.uk

Keynote Speaker

Philipp Trotter, Professor, University of Wuppertal, Germany, philipp.trotter@smithschool.ox.ac.uk

Panellists

· Fatima Denton, Director of the United Nations University, Accra, Ghana (denton@unu.edu)

· Fadhel Kaboub, Senior Advisor, Power Shift Africa. Formerly Under-Secretary-General for Financing for Development, Organisation of Southern Cooperation, kaboubf@denison.edu

· Linus Mofor, Senior Environmental Affairs Office, mofor@un.org

· Anne Olhoff, International Senior Advisor, CONCITO and Manager/Editor of UNEP Emissions Gap Report, (ao@concito.dk)

· Youba Sokona, Former Vice-Chair Inter-Governmental Panel on Climate Change (ysokona@gmail.com)

Opening Remarks: Yacob Mulugetta Chair

Keynote Presentation: Philipp Trotter

How Can the Global Community Support LMIC Fossil Fuel Producers Achieve the SDGs in in a Low-Carbon World?

Opening statements

· Fatima Denton, Director, UNU-INRA, Ghana

· Fadhel Kaboub, Associate Professor, Denison University (on leave) and President of Global Institute of Sustainable Prosperity

· Linus Mofor, Senior Environmental Affairs, UNECA

· Anne Olhoff, International Senior Advisor, CONCITO and Manager/Editor of UNEP Emissions Gap Report

· Youba Sokona, Former Vice-Chair IPCC

Discussion Moderated by Chair Yacob Mulugetta

Closing Remarks: Yacob Mulugetta

We have released a policy brief that looks at this issue, entitled: How can the global community support LLMIC fossil fuel producers through the climate transition? 

Tailoring Climate Action to Informal Transport (CCG in partnership with WRI)

Presentations

• Felipe Ramirez (Urban Mobility Director, WRI): Data and informal transport for climate, sharing early results of emissions inventory from Lusaka. 

Moderated Panel Discussion with Q&A

• Mohamed Hegazy (Climate Champions Team) [moderator]
• Hazem Fahmi (Transport for Cairo)
• Eléonore François-Jacobs (Deputy Coordinator, MobiliseYourCity)
• Josh Whale (Ampersand)
• Randy Wilson (Head of Transport, Kumasi Metropolitan Assembly, Ghana)
• Stephane Straub (Chief Economist for Infrastructure, World Bank)

Making High Quality Data and Models Accessible (CCG in partnership with ADB, HVT, SLOCAT)
Chair: Holger Dalkmann (CCG)

Presentations:

• James Leather (Transport Director, ADB): Towards better data and tools in Asia
• Vivien Foster (Imperial College London): Transport modelling tools fit for LMICs 
• Urda Eichhorst (Programme Director Transport, GIZ): Transport Data Commons Initiative
• Liza Castillo (Senior Advisor, SLOCAT, Former Deputy Minister of Transport, Costa Rica): Transport Decarbonization Index

Moderated Panel Discussion with Q&A:

• Stephane Straub (Chief Economist for the Infrastructure Vice Presidency, World Bank)
• Malindi Msoni (Zambia Institute for Policy Analysis & Research)

Aligning Climate Finance with Greener Transport Development (CCG in Partnership with HVT)

Chair: Henry Kerali (former World Bank Country Lead)

Panel presentations and remarks:

• Claudia Adriazola-Steil (Director WRI, presenting Access to Climate Finance Project)
• Maruxa Cardama (Secretary General, SLOCAT, representing Transport Decarbonisation)
  Index
• Nicolas Peltier (Global Transport Director, World Bank)
• Gianpiero Nacci (Director in the Climate Strategy and Delivery Department at the European Bank for Reconstruction and Development)
• Lucie Anderton (Head of Sustainability, UIC)
• Carlos Eduardo Enriquez Caicedo (Transport Vice-minister, Columbia)

High Level closing remarks

• H E Tatiana Molcean (United Nations Under-Secretary-General and Executive of the United Nations Economic Commission for Europe (ECE) 

Motivation

Achieving decarbonisation calls for a steep reduction in the production and consumption of fossil fuels. This poses particular challenges for major fossil fuel producers in the low- and middle-income countries (LMICs), whose development prospects – as well as government finances – are closely intertwined with fossil fuels. 

The nature of these challenges differs markedly across LMIC fossil fuel producers. Some countries are established fossil fuel producers, while others have recently discovered major reserves. Some countries produce mainly to satisfy their own domestic energy needs, while for others fossil fuel production is primarily export oriented.

Reflecting these important differences, this event discussed context-specific diversification strategies for LMIC fossil fuel producers to allow them to make holistic progress towards the SDGs in a low-carbon world. This entails a triple diversification challenge:  diversification of energy systems to reduce carbon footprints; diversification of economies to reduce fossil fuel dependency; and equitable diversification of fossil fuel production to protect those most prejudiced by the transition.

The international community must commit to principles of global solidarity to ease the particularly challenging transition path faced by fossil fuel producing LMICs, offering attractive and realistic development alternatives. Scaling-up climate finance is essential, but on its own will not be enough. Concerted efforts are also needed to support economic diversification, targeting measures to raise competitiveness, expand and diversify trade, build human capital and promote employment. This calls for a substantial, comprehensive, accessible, and rapid burst of financial and capacity building support targeted towards fossil fuel producing LMICs. 

Summary

Since January 2023, CCG has been investigating the potential that Zambia’s Constituency Development Fund (CDF) has to ‘crowd in’ investment for sustainable development from public and private impact-focussed investors. This has been in collaboration with the Zambian Government and a team of local research organisations.  The CCG team, led from the University of Oxford, published a report on ‘Mobilising Investment through the CDF’ in June 2023, and is completing additional work with government and financial stakeholders currently to investigate prerequisites to investment.

This event focussed on the case for impact investment in Zambia’s CDF. It attempted to answer these questions:

• What evidence is there that CDF projects support climate-compatible growth in Zambia?
• How does the international impact investment community react to the case of Zambia’s CDF?
• How can the impact of Zambia’s CDF be measured and evaluated?
• How might different stakeholders (eg. donor organisations, private investors) get involved in funding regional development through schemes like the CDF?

Speakers:

• Leah Pedersen (Senior Director, Market Acceleration and Design, Convergence Finance)
• Aurélie Pollak (Finance Working Group & Impact Investor, UNFCCC Youth Constituency)
• Moderator: George Carew-Jones (Research Associate, CDF for CCG Zambia Project, University of Oxford)