Energy sector transition and the 2015 agreement

1. Climate Change Expert Group
www.oecd.org/env/cc/ccxg.htm
CCXG Global Forum 17 September 2014
Breakout Groups 2 and 3 Energy sector transition and the 2015 agreement
Co-facilitated by
Paul Watkinson and Mulugeta Mengist Ayalew

2. 2
Climate Change Expert Group
We are “off track” from a 2C pathway in terms of emissions, technology development, and investment.
Energy sector transition requires alignment of targets and policy across the short, medium and long term.
A long term goal in the 2015 agreement will help send a signal on investment, but will be difficult to agree.
May be role for reporting metrics of energy transition (e.g. energy efficiency) as well as GHG goals.
Business looks to governments’ own actions as signals.
Key emerging themes - general

3. 3
Climate Change Expert Group
For technology RD&D, need balance of “push” (government action) and “pull” (enabling environments).
There is need for greater government co-operation, but there are already significant collaboration in energy RD&D to build on (multilateral and public-private).
The existing technology mechanisms can be built on, and need to expand links to technology RD&D outside the UNFCCC.
Adequate funding of technology efforts matters.
Key emerging themes – RD&D

4. 4
Climate Change Expert Group
Domestic policies and actions the #1 driver of private sector investment
 “Business as Usual” is not necessarily easy either: investment needs are high.
What matters to private investors is not necessarily the text, rather the resolve to build over time under a review process.
Need carbon price signals (not necessarily ETS) to shift fossil fuel infrastructure.
MRV and carbon accounting critical to underpin carbon pricing.
Key emerging themes – investment