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 will explore 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 will zoom in specifically on the linkages between planning activities conducted by the Ministry of Energy and financing strategies led by the Ministry of Finance. We will attempt to answer the following questions:
What kind of language barriers arise between Ministries of Energy and Finance?
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)
Format
Opening from the Chair
Opening statements by Panellists
Discussion and interactive conversation with Panel
Q&A for everyone
This webinar has now taken place and the video is here.
Webinar 2
If fossil fuels are the past, what is the future? How can the global community support fossil fuel producers in low- and middle-income countries to achieve the sustainable development goals in a low-carbon world?
One of the hottest topics for COP28 will be around reducing fossil fuel production and introducing a large-scale clean energy industry in its place, with all the issues associated with that challenge.
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 will use the conceptual framework of a scientific paper currently under review at Nature Energy as the basis for a conversation with representatives of specific fossil fuel producing LMICs. Using the wealth of material we collected, we will attempt 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)
Format
Opening Keynote from Professor Philipp Trotter (University of Wuppertal, Germany)
Statements by our Panellists
Panel discussion and interactive conversation
Q&A for everyone
This webinar has now taken place and the video is here.
COP28 CCG Events Programme
Global Green Grids:
The Case for Inter-Continental Power Interconnection
3rd December 2023, 10:00-11:30, Dubai time, Kinsale Meeting Room, Hotel Voco-Bonnington Dubai, Jumeirah Lake Towers, JLT Cluster J, Dubai, Hybrid
GREEN GRIDS: Launch of new study assessing the critical role of interconnection to support a Paris-aligned energy transition
Increasing grid transmission capacity and interconnecting electricity systems is going to be vital to enable the scaling of the renewable electricity supply needed to meet international climate goals. To assess the global benefits of grid interconnection, a study has been undertaken led by TransitionZero in partnership with CCG, Dartmouth College and Simon Fraser University. This global analysis highlights how interconnection can significantly reduce the system costs of achieving a net zero global electricity system. It identifies where interconnector projects are of most value to achieving emission reductions to get to net zero, providing insights on potential future projects.
This CCG COP28 side event, in association with TransitionZero and the Green Grids Initiative, will first present the findings of our new global study on the role of interconnection projects, followed by a panel to reflect on the study and to explore the technical and financing requirements for getting projects up and running.
10.00–10.10
The need for new transmission and interconnection projects
Marcus Stewart (GGI)
10.10–10.40
The role of interconnection in meeting Paris goals
Abhishek Shivakumar (TransitionZero)
10.40–11.20
Panel responses to the study, and discussion
(moderated by Steve Pye, CCG)
Chilombo Chila (Ministry of Energy, Zambia)
Michele Akute (CMP/EPRA, Kenya)
Stephane Straub (Chief Economist for the Infrastructure Vice Presidency, World Bank)
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.
Data-Deal: Can Countries in the Global South Afford the Climate Transition? (Speaker: Vivien Foster (Imperial College London)
Moderated Panel Discussion with Q&A (40 minutes):
Mungai Kihara (Ministry of Energy & Petroleum, Kenya)
Patrick Nussbaumer (UNIDO)
Nick Godfrey (Senior Adviser, LSE – Grantham Institute)
Others TBC
Format
The planned Climate Compatible Growth (CCG) COP28 side event will convey the essence of the Data-to-Deal approach, providing practical illustrations of implementation that draw on live experiences from countries at different stages in the process. Ahead of the event, read our new policy briefs:
Development and Transition Pathways for LMIC Fossil Fuel Producers in a Carbon-Constrained World 4th December 2023, 10:30-12:00 Dubai time, Hotel Voco-Bonnington Dubai, Hybrid
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.
Accelerating the Just Transition Towards Transport Decarbonisation in LMICs
4th December 2023, 13:00-18:30 Dubai time, Hotel Voco-Bonnington Dubai, Hybrid followed by Invitation Only Transport Community Reception – co hosted by CCG, FIA Foundation and SLOCAT).(19:00-21:00)
While transport related CO2 emissions in LMICs are relatively low in comparison to High-Income Countries (HICs), net zero strategies are needed to create a just transition, so nobody is left behind. The process of “just decarbonisation” in the transport sector is relatively complex and not yet well understood, particularly in the context of LMICs.
To accelerate the Just Transition towards Transport Decarbonisation the CCG Transport Day is joining forces with the Hamburg Sustainability Conference 2024 (HSC). The HSC aims at fostering new partnerships and pioneering international alliances of policy makers, private sector leaders and civil society representatives who are willing to commit to action. The first HSC will be held on June 20–21, 2024. CCG and HSC are presenting this Transport Day as a contribution to setting the agenda for the Hamburg Sustainability Conference together.
The CCG Transport Day will convey the essence of the Data-to-Deal approach in a transport context and share the latest thinking and research focusing on three critical questions:
How to improve informal transport services that are critical for LMIC urban populations
How to accelerate transport decarbonisation through better open-data and open-source models
How to increase climate finance flows to sustainable transport projects in LMICs
13.05–13.15 CCG Welcome and Introduction to the Hamburg Sustainable Conference (HSC) Holger Dalkmann (CCG Transport Lead) Elke Hüttner (Director of Division Climate Change, Environment and Infrastructure)
13.15–14.30 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]
A New Report: We will be launching our recent publication: “Addressing Challenges in Long-Term Strategic Energy Planning in LMICs: Learning Pathways in an Energy Planning Ecosystem”,published in the Energies journal Special Issue: “Changes of Global Energy Systems: Bridging the Gap between Policy, Education, and Research”, collaboratively authored by 19 individuals. These authors come from various universities worldwide, including African institutions (such as Strathmore) and institutions in the UK, Canada, and Sweden.
Summary: This session introduces a paper that explores an innovative movement emerging in developing nations and international organisations. This movement is dedicated to addressing climate change policy and mobilizing financial resources. Its primary focus is empowering local thought leaders and establishing environments conducive to local knowledge generation. The ultimate goal is to bolster large-scale, collaborative, and sustainable long-term energy planning and climate change mitigation efforts. The paper’s content was collaboratively developed in partnership with leading international organisations specialising in this field.
For full details, please read the event flyer here
Fossil Fuels:
How Can the Global Community Support LMIC Fossil Fuel Producers to Achieve the SDGs in a Low-Carbon World? 6th December 2023, 16:30-17:30 Dubai time, UNFCCC Blue Zone UNDESA SDG Pavilion, In-Person Only
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.
[60 minutes]
Introduction from Chair:
Yacob Mulugetta, Professor of Energy and Development PolicyUCL and Coordinating Lead Author, Inter-Governmental Panel on Climate Change
Keynote Presentation:
How Can the Global Community Support LMIC Fossil Fuel Producers Achieve the SDGs in in a Low-Carbon World? (Vivien Foster, Climate Compatible Growth, Imperial College London)
Moderated Panel Discussion with Q&A
Adnan Amin, CEO of COP28 and former Director of IRENA
Fatima Denton, Director of the United Nations University, Accra, Ghana
Youba Sokona, Vice-Chair Inter-Governmental Panel on Climate Change
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 will focus upon the case for impact investment in Zambia’s CDF. It will attempt 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?
Proposed 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)
Zambia representative, TBC
Additional Impact Investor, TBC
Agenda:
Research Presentation
Panel Discussion
Audience Q&A.
Please note, there are more Blue Zone events that will feature CCG experts. These will be added as details are confirmed.
Our Colleague Professor Yacob Mulugetta, is attending the following events:
2 December at 16.00-16.45: Emissions Gap Report event in the Nordic Pavilion.
3 December at 10:30-11:30: Emissions Gap Report side event in the South Africa Pavilion
3 December at 11:45-12:30: Emissions Gap Report side event in the UNEP Pavilion
3 December at 1700 – 1830: Mission Energy Access for a just and sustainable future for all, International Solar Alliance pavilion
4 December at 19:00-21:00: Mobilizing Domestic Resources for Africa’s Energy and Climate Future, Clean Air Task Force. He will talk about ‘local knowledge and expertise into developing African solutions for the region’s energy and climate future.
5 December at 10-11.00: Joint UNEP-UNFCCC high-level official emissions gap report side event in Action Arena 2 (Al Wakri). He will participate in the panel discussion.
