This document provides an overview and summaries of 8 briefing papers on implementing Nationally Determined Contributions (NDCs) at the sectoral level. The briefings cover topics like the sector coverage of NDCs, integrating sector planning with NDCs, finance needs articulated in NDCs, and recommendations for enhancing NDCs to provide clearer sector-level guidance. Key recommendations include prioritizing sectors in NDCs, developing sector implementation plans, and aligning sector strategies and long-term planning with climate policy to facilitate NDC implementation.
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.
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
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.
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.
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.
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.
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.