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Innovate4Climate, Barcelona
Overviews on the implementation
of NDCs on a sectoral level
Thomas Day, NewClimate Institute
Bonn, 24.05.2017
Overview
8 thematic briefing papers designed to advance and
disseminate knowledge on:
the sector coverage of NDCs
the integration of sector planning with NDCs
successful approaches for implementation of NDCs at the
sector level
potential enhancements of NDC formats for guiding sector-
level implementation
Authored by NewClimate Institute & GIZ
Published by GIZ
Supported by BMZ
Available from newclimate.org/publications
04/04/2017 www.newclimate.org 2
NDCs as a catalyst for sector momentum
Status of sector integration in
climate policy
304/04/2017
Source: NewClimate Institute research
based on interviews with 52 countries
8 thematic briefing papers
General
04/04/2017 www.newclimate.org 4
Sector-specific
Energy supply, Transport, Energy
efficiency, Agriculture, Forestry
Coverage of the sector in NDCs
Importance of the sector for climate
change mitigation
Trends in instruments for implementation
Challenges for action & enhanced
ambition
Interfaces/synergies with other sectors
Roles and responsibilities for
implementation of action
General overview
Status of NDCs, mitigation impact,
outlook for NDC implementation
Trends for sectoral integration, link to
ambition raising
Finance
Finance needs, potential sources
Requirements for converting available
international funds to sector action
Transparency
Current status: Clarity of NDCs,
standardisation of approaches
Gaps: Requirements at the national
and sectoral level
Finance needs in NDCs
04/04/2017 www.newclimate.org 5
Finance is central to the feasibility of NDC implementation
 Around 80% of developing countries communicate conditional targets
and commitments – in most cases conditions relate to financial or capacity
building support
 75 developing countries articulate finance needs in their NDCs – but
clarity is limited
The data and information presented in the INDCs provides limited clarity on
actual finance and support needs
This was not the major purpose of NDCs; the purpose of the NDCs is to
internationally communicate a governments climate change intentions
Financing sector transformation
04/04/2017 www.newclimate.org 6
Requirements for further development of sector-level investment plans for NDC
implementation:
 Development of sector-level decarbonisation pathways
 Assessment of technology and infrastructure needs
 Identification of investment priorities
 Identification of barriers for implementation and feasibility of instruments to
unlock investments
 Design of specific financial interventions
 Assessment of domestic financial resources and international support needs
 Development of investment proposals and project pipeline for presentation
to potential (international) funds and investors
Much of this information already available from other policy planning processes
at the national and sector level.
Sector guidance in NDCs
04/04/2017 www.newclimate.org 7
Major focus on energy supply sector in NDCs,
where sector level detail is common.
NDCs generally designed for international
communication of climate plans, rather than for
sectoral guidance
Sector focus observed in NDCs is in line with the
UNFCCC Common Reporting Format (CRF)
 advantageous for aggregated emission
accounting, and comparability of efforts
 May entail limitations for the development of
implementation plans at the sector level
NDC revision for enhanced
sector-level clarity
804/04/2017
Net-zero
Translation of
national targets to
sector level targets
Long-term
decarbonisation
planning for sectors
Closer alignment of
sector level plans
with NDCs
Increase clarity of
existing contributions.
SDG 6.2
SDG 7.1
SDG 11.1
Identify synergies with
national/sectoral
objectives and SDGs
Enhanced alignment of
sector strategies with
climate policy
Complete stock take of
existing action
(inc. subnational & non-state actors)
Development of
investment plans
Development of
policies and support
proposals
Devolution of
responsibility for
implementation to
sector level
Inter-ministerial
communication and
planning
Integration of reporting
processes for
transparency
framework
Implications of Paris
Agreement for the
sector
Wider impacts, benefits
and synergies - SDGs
Implications of
potential sector
pathways for climate
and development
objectives
Enabling conditions for sector-
level implementation of NDCs
904/04/2017
Knowledge
dissemination
Institutions &
processes
Planning & action
Energy efficiency (building sector)
1004/04/2017
2DS
1.5DS
2010 2050 2050
0
3
6
9
Emissionsfrombuildingsector
(GtCO2e)
Required emissions reductions from the
building sector for a 2DS/ 1.5 DS
Current
renovation
rates
2020, Non
OECD
2020, OECD
0%
1%
2%
3%
4%
5%
Yearlybuildingrenovationrates
Required building renovation trends
Major untapped mitigation potential
requiring action at the sector level
Only ca. ¼ of NDCs make explicit
reference to building sector measures
Energy efficiency (building sector)
1104/04/2017
Given the building sector’s huge mitigation potential, a
key priority should be to, either:
• start prioritising the building sector for more explicit and specific
NDC inclusion; and/or
• develop clear (separate) guidance on what the high level targets
of the NDC mean for the sector, with clear mandates.
Implementation and ambition raising could benefit from
participation of subnational governance and urban
planners in design of NDC.
Planning and action often hindered by data/info
deficits; establishing processes for access to existing
(decentralised) collected information is vital.
8 thematic briefing papers
General
04/04/2017 www.newclimate.org 12
Sector-specific
Energy supply, Transport, Energy
efficiency, Agriculture, Forestry
Coverage of the sector in NDCs
Importance of the sector for climate
change mitigation
Trends in instruments for implementation
Challenges for action & enhanced
ambition
Interfaces/synergies with other sectors
Roles and responsibilities for
implementation of action
General overview
Status of NDCs, mitigation impact,
outlook for NDC implementation
Trends for sectoral integration, link to
ambition raising
Finance
Finance needs, potential sources
Requirements for converting available
international funds to sector action
Transparency
Current status: Clarity of NDCs,
standardisation of approaches
Gaps: Requirements at the national
and sectoral level
Also recently published
1304/04/2017
NDC Update Report (May 2017)
First edition: May 2017
Published every six months
Quantitative and qualitative
overview of NDC implementation
status at the sector level.
Based on survey and interviews
with ca. 100 country
representatives.
www.newclimate.org
Thank you for
your attention
Thomas Day
t.day@newclimate.org
NewClimate Institute
29/05/2017 www.newclimate.org 16
Towards sector-driven
implementation & ambition
raising
Immediate-term steps to enable conditions for NDC implementationand ambition raising
Institutional responsibilities
for oversightof implementation
and monitoring of progress
Knowledge
developmentand dissemination
on ParisAgreementimplications
and benefits
Planning for ambition
Through strategy alignmentand
long-term decarbonisation
planning
Investment planning
For resource allocation and
determination of supportneeds
Policies andprogrammes
should be immediately
implemented to kick-startaction
for existing ambition
• Mapping of existing institutional mandates
• Determination of optimal alignment of institutions with implementation
objectives, including links for finance and planning ministries
• Devolution of implementation responsibilities to line ministries
• Gap analysis of institutional capacity requirements
• Integration of sector level information collection and reporting processes
• Complete alignment of sector level strategy with climate policy strategy
• Stock-takeand integration of subnational and non-stateactions
• Determination of long-termfull decarbonisation targets for the sector
• Translation of sector level targets to sub-sector targets
• Analysis of potential for ambition raising:
• Analysis of regional best practice policies
• Targets for sub-sectorsnotyetcovered in climate strategy
• Collation of all information and targets into a target-based roadmap
• Evaluation of investmentrequirements for preferred measures
• Evaluation of a) privatesector investment capacity; b) public finance
requirements; c) international supportrequirements.
• Medium-term investmentplanning to align non-privatecapital
requirements with existing national and multilateral financing rhythm
• Analysis of persisting barriers (financial, political, institutional, cultural)
• Identification of projectconcepts that address the barriers for unilateral
implementation and/or international support(e.g. NAMAs)
Institutional
roles
National level
(inter-
ministerial)
Sector level
(line ministries
and sub-
national gov.)
Sector level
institutions
with finance &
planning
ministries
• Understanding of long-termsector implications of the Paris Agreement
• Analysis of potential benefits, related to sector development objectives
and the key interests/objectives of influential stakeholders
• Identification of links between mitigation targets and SDGs
PlanningandestablishingenablingconditionsInterventions
All levels &
stakeholders
Probableimpacts
 Clear referencepoints for developmentof
sector roadmaps
 Clear signals for private sector to understand
and plan/act upon
 Better reflection of ambition level and clearer
insights into further potential
 Easier identification of support
needs/possibilities
NDC content revision
Quick-fixes for immediate revision
 Increaseclarity of existing contributions
 Stronger reflection of sector andsubnational
level plans within NDCs
 Direct links between targets and SDGs
Further revisionandupdating of ambition
 Translation of national targets to sector level
targets within NDCs
 Inclusion of long-termdecarbonisation plans
 Improved communicationon the
conditionality of targets
 Clear identification of support needs
 Update on sector, sub-sector andeconomy-
wide ambition in line with planning
Recommendations
• Introduction of new policies and strengthening of existing policies
• Development of proposals for internationally supported measures
Sector level
institutions
with finance &
planning
ministries
Key sectors for EE
29/05/2017 www.newclimate.org 17
Industry Transport Power
generation
Buildings
0%
20%
40%
60%
80%
100%
Unrealized energy efficiency
potential
Realized energy efficiency
potential
30%
28%
32%
10%
Industry Transport
Buildings Other
Figure 5: Final energy consumption
in 2014 (IEA 2016b)
Energy Transport Industry Buildings
0
50
100
150
Figure 6: Sector repartition in NDCs
(no. of Parties). (World Bank 2016)
Figure 4: Unrealised long-term energy efficiency economic potential based on
NPS, 2011-20135. Adapted from IEA (2012), World Energy Outlook 2012

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Overviews on the implementation of NDCs on a sectoral level (Innovate4Climate)

  • 1. Innovate4Climate, Barcelona Overviews on the implementation of NDCs on a sectoral level Thomas Day, NewClimate Institute Bonn, 24.05.2017
  • 2. Overview 8 thematic briefing papers designed to advance and disseminate knowledge on: the sector coverage of NDCs the integration of sector planning with NDCs successful approaches for implementation of NDCs at the sector level potential enhancements of NDC formats for guiding sector- level implementation Authored by NewClimate Institute & GIZ Published by GIZ Supported by BMZ Available from newclimate.org/publications 04/04/2017 www.newclimate.org 2
  • 3. NDCs as a catalyst for sector momentum Status of sector integration in climate policy 304/04/2017 Source: NewClimate Institute research based on interviews with 52 countries
  • 4. 8 thematic briefing papers General 04/04/2017 www.newclimate.org 4 Sector-specific Energy supply, Transport, Energy efficiency, Agriculture, Forestry Coverage of the sector in NDCs Importance of the sector for climate change mitigation Trends in instruments for implementation Challenges for action & enhanced ambition Interfaces/synergies with other sectors Roles and responsibilities for implementation of action General overview Status of NDCs, mitigation impact, outlook for NDC implementation Trends for sectoral integration, link to ambition raising Finance Finance needs, potential sources Requirements for converting available international funds to sector action Transparency Current status: Clarity of NDCs, standardisation of approaches Gaps: Requirements at the national and sectoral level
  • 5. Finance needs in NDCs 04/04/2017 www.newclimate.org 5 Finance is central to the feasibility of NDC implementation  Around 80% of developing countries communicate conditional targets and commitments – in most cases conditions relate to financial or capacity building support  75 developing countries articulate finance needs in their NDCs – but clarity is limited The data and information presented in the INDCs provides limited clarity on actual finance and support needs This was not the major purpose of NDCs; the purpose of the NDCs is to internationally communicate a governments climate change intentions
  • 6. Financing sector transformation 04/04/2017 www.newclimate.org 6 Requirements for further development of sector-level investment plans for NDC implementation:  Development of sector-level decarbonisation pathways  Assessment of technology and infrastructure needs  Identification of investment priorities  Identification of barriers for implementation and feasibility of instruments to unlock investments  Design of specific financial interventions  Assessment of domestic financial resources and international support needs  Development of investment proposals and project pipeline for presentation to potential (international) funds and investors Much of this information already available from other policy planning processes at the national and sector level.
  • 7. Sector guidance in NDCs 04/04/2017 www.newclimate.org 7 Major focus on energy supply sector in NDCs, where sector level detail is common. NDCs generally designed for international communication of climate plans, rather than for sectoral guidance Sector focus observed in NDCs is in line with the UNFCCC Common Reporting Format (CRF)  advantageous for aggregated emission accounting, and comparability of efforts  May entail limitations for the development of implementation plans at the sector level
  • 8. NDC revision for enhanced sector-level clarity 804/04/2017 Net-zero Translation of national targets to sector level targets Long-term decarbonisation planning for sectors Closer alignment of sector level plans with NDCs Increase clarity of existing contributions. SDG 6.2 SDG 7.1 SDG 11.1 Identify synergies with national/sectoral objectives and SDGs
  • 9. Enhanced alignment of sector strategies with climate policy Complete stock take of existing action (inc. subnational & non-state actors) Development of investment plans Development of policies and support proposals Devolution of responsibility for implementation to sector level Inter-ministerial communication and planning Integration of reporting processes for transparency framework Implications of Paris Agreement for the sector Wider impacts, benefits and synergies - SDGs Implications of potential sector pathways for climate and development objectives Enabling conditions for sector- level implementation of NDCs 904/04/2017 Knowledge dissemination Institutions & processes Planning & action
  • 10. Energy efficiency (building sector) 1004/04/2017 2DS 1.5DS 2010 2050 2050 0 3 6 9 Emissionsfrombuildingsector (GtCO2e) Required emissions reductions from the building sector for a 2DS/ 1.5 DS Current renovation rates 2020, Non OECD 2020, OECD 0% 1% 2% 3% 4% 5% Yearlybuildingrenovationrates Required building renovation trends Major untapped mitigation potential requiring action at the sector level Only ca. ¼ of NDCs make explicit reference to building sector measures
  • 11. Energy efficiency (building sector) 1104/04/2017 Given the building sector’s huge mitigation potential, a key priority should be to, either: • start prioritising the building sector for more explicit and specific NDC inclusion; and/or • develop clear (separate) guidance on what the high level targets of the NDC mean for the sector, with clear mandates. Implementation and ambition raising could benefit from participation of subnational governance and urban planners in design of NDC. Planning and action often hindered by data/info deficits; establishing processes for access to existing (decentralised) collected information is vital.
  • 12. 8 thematic briefing papers General 04/04/2017 www.newclimate.org 12 Sector-specific Energy supply, Transport, Energy efficiency, Agriculture, Forestry Coverage of the sector in NDCs Importance of the sector for climate change mitigation Trends in instruments for implementation Challenges for action & enhanced ambition Interfaces/synergies with other sectors Roles and responsibilities for implementation of action General overview Status of NDCs, mitigation impact, outlook for NDC implementation Trends for sectoral integration, link to ambition raising Finance Finance needs, potential sources Requirements for converting available international funds to sector action Transparency Current status: Clarity of NDCs, standardisation of approaches Gaps: Requirements at the national and sectoral level
  • 13. Also recently published 1304/04/2017 NDC Update Report (May 2017) First edition: May 2017 Published every six months Quantitative and qualitative overview of NDC implementation status at the sector level. Based on survey and interviews with ca. 100 country representatives.
  • 14. www.newclimate.org Thank you for your attention Thomas Day t.day@newclimate.org NewClimate Institute
  • 15.
  • 16. 29/05/2017 www.newclimate.org 16 Towards sector-driven implementation & ambition raising Immediate-term steps to enable conditions for NDC implementationand ambition raising Institutional responsibilities for oversightof implementation and monitoring of progress Knowledge developmentand dissemination on ParisAgreementimplications and benefits Planning for ambition Through strategy alignmentand long-term decarbonisation planning Investment planning For resource allocation and determination of supportneeds Policies andprogrammes should be immediately implemented to kick-startaction for existing ambition • Mapping of existing institutional mandates • Determination of optimal alignment of institutions with implementation objectives, including links for finance and planning ministries • Devolution of implementation responsibilities to line ministries • Gap analysis of institutional capacity requirements • Integration of sector level information collection and reporting processes • Complete alignment of sector level strategy with climate policy strategy • Stock-takeand integration of subnational and non-stateactions • Determination of long-termfull decarbonisation targets for the sector • Translation of sector level targets to sub-sector targets • Analysis of potential for ambition raising: • Analysis of regional best practice policies • Targets for sub-sectorsnotyetcovered in climate strategy • Collation of all information and targets into a target-based roadmap • Evaluation of investmentrequirements for preferred measures • Evaluation of a) privatesector investment capacity; b) public finance requirements; c) international supportrequirements. • Medium-term investmentplanning to align non-privatecapital requirements with existing national and multilateral financing rhythm • Analysis of persisting barriers (financial, political, institutional, cultural) • Identification of projectconcepts that address the barriers for unilateral implementation and/or international support(e.g. NAMAs) Institutional roles National level (inter- ministerial) Sector level (line ministries and sub- national gov.) Sector level institutions with finance & planning ministries • Understanding of long-termsector implications of the Paris Agreement • Analysis of potential benefits, related to sector development objectives and the key interests/objectives of influential stakeholders • Identification of links between mitigation targets and SDGs PlanningandestablishingenablingconditionsInterventions All levels & stakeholders Probableimpacts  Clear referencepoints for developmentof sector roadmaps  Clear signals for private sector to understand and plan/act upon  Better reflection of ambition level and clearer insights into further potential  Easier identification of support needs/possibilities NDC content revision Quick-fixes for immediate revision  Increaseclarity of existing contributions  Stronger reflection of sector andsubnational level plans within NDCs  Direct links between targets and SDGs Further revisionandupdating of ambition  Translation of national targets to sector level targets within NDCs  Inclusion of long-termdecarbonisation plans  Improved communicationon the conditionality of targets  Clear identification of support needs  Update on sector, sub-sector andeconomy- wide ambition in line with planning Recommendations • Introduction of new policies and strengthening of existing policies • Development of proposals for internationally supported measures Sector level institutions with finance & planning ministries
  • 17. Key sectors for EE 29/05/2017 www.newclimate.org 17 Industry Transport Power generation Buildings 0% 20% 40% 60% 80% 100% Unrealized energy efficiency potential Realized energy efficiency potential 30% 28% 32% 10% Industry Transport Buildings Other Figure 5: Final energy consumption in 2014 (IEA 2016b) Energy Transport Industry Buildings 0 50 100 150 Figure 6: Sector repartition in NDCs (no. of Parties). (World Bank 2016) Figure 4: Unrealised long-term energy efficiency economic potential based on NPS, 2011-20135. Adapted from IEA (2012), World Energy Outlook 2012

Hinweis der Redaktion

  1. Based on survey of 52 countries conducted early 2015 and November 2015. The NDC process has made significant developments for the mainstreaming of climate change in sector planning Line ministries and sector specific stakeholders hold the greatest influence over the development of sector-level interventions. Sector specific line ministries have the expertise and mandate to develop and implement effective sector level policies. Where the development of sector level policies and strategies is not be aligned with climate change planning and/or the NDC process, the potential to achieve the NDC may be severely compromised. Countries that already involved line ministries in the development of the NDC, or in earlier processes, generally reported fewer challenges in their planning processes than countries where processes remain centralised to a single responsible ministry or agency (NewClimate Institute 2015). This is mainly due to the enhanced availability of information and expertise on specific sector options, the alignment with sectoral strategies, and greater awareness and political will of sector-level decision makers and stakeholders.
  2. Major focus on energy supply sector in NDCs, where sector level detail is common. Other sectors are relatively well “covered” in NDCs, although often only within economy-wide targets: reference to specific targets and measures for these other sectors is much less common than for the energy sector. NDCs are generally designed for international communication of climate plans, using a sector categorisation that is logical for emissions accounting. This was the purpose of NDCs. However, such an approach may not offer clear guidance for how such targets should be implemented at the sector level. In the case that NDCs were born out of existing sector-level plans or more comprehensive strategies that breaks high level climate targets into sector and sub-sector action, this is not an issue. However, this is not the case in many countries where NDCs are often stand-alone documents that are at times misaligned with sector plans. Further information or processes is required to provide clarity to sectors on how to implement the targets of NDCs.
  3. Current state of NDCs provides limited guidance for how the targets should be implemented at the sector level. Can be addressed in two ways: Revisions to the NDC to enhance sector-level clarity; and/or Development of clear (separate) guidance on what the high level targets of the NDC mean for individual sectors and sub-sectors In case countries wish to address this through NDC revision, 5 key steps can assist sector-level clarity.
  4. While the previous slide shows how NDCs can be revised to enhance sector-level clarity, not all Parties will wish to add such comprehensive detail to their NDC; some countries have approached NDCs as a more comprehensive document for climate policy, but many have preferred to structure it simply as a basic tool for international communication of climate ambition. Whether or not Parties add more sector-level clarity to their NDCs, this slide shows some of the steps which could be taken to enable the conditions for sector-level implementation of NDCs.
  5. Example of sector paper: buildings (energy efficiency) The building sector is a key example of how the NDCs and climate terminology sometimes may fail to provide clear guidance for a sector. Practitioners who must implement action to achieve this mitigation potential belong to the “building and construction sector”. For these practitioners, there is no such thing as an “energy efficiency sector”, nor do they consider themselves a subset of the energy sector. Logical sector categorisation for emissions accounting does not necessarily equate to logical sector categorisation for implementation of action.