SCP and Climate Change - JICA’s Cases - DAC-UNEP Workshop on Sustainable Consumption and Production for Development Tomonori SUDO, Ph.D Office for Climate Change Japan International Cooperation Agency (JICA)
Facts & Figures of JICA • Staff: – 1,664 staff. They are supplemented at any one time by thousands of Japanese experts and young and senior volunteers on both short-term and long-term contracts. • Operational Volume: – It is the world’s largest bilateral development assistance agency with a size of estimated $10.3 billion dollars. Comparison with other Major Donor Agencies Number of Staff 8,600 World Bank Volume of Operation US$19,634mil Number of Staff 2,443 Asian Development Bank Volume of Operation US$6,851mil Number of Staff 2,227 USAID Volume of Operation US$3,976mil Number of Staff 1,664 New JICA Volume of Operation* US$10,280mil Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end) *estimated based on FY2008 budget (full year)
Development Agenda and Climate Change - Toward “Low Carbon Society” Climate Change Toward Low Use of fossil fuels Carbon Secure =Increasing GHG Emission Society Developmental benefit Economic Development Forest Urban Rural Energy Conservation Development Development Agriculture Biodiversity Transport Education Water Resource Waste Health & Industrialization Management management Sanitation Poverty Environmental SD Economic SD Social SD
Climate change benefit as co-benefits of development Cooperation for Sustainable Development from various levels GHG Reduction as Generating co-benefit Development Developmental benefit Plan Sector Donor’s Integrate Policies Assistance Climate Change Financial Programs Concerns Assistance into Development Technical Projects Actions Assistance Long-term vision
Toward Low-Carbon Development Hypothesis ：「 Society with high resource productivity ≒ Low Carbon Society ・ Seeking possible style on production and consumption, Instead of consumeristic development. ・ It is fundamentally recognized that increase of energy consumption and GHG emission in the lifecycle has been led by Increase of production/consumption of goods, that is, resource saving and low carbon development are deeply related. Breakdown of Kaya Identity in resource consumption aspect GDP Energy Consumption CO 2 Emission CO 2 Emission ＝ POP × × × POP GDP Energy Consumption CO 2 Emission Resource Cons Energy Cons CO 2 Emission ＝ × GDP GDP Resource Cons × Energy Cons Design of Social – Identification of factors to Quantification of possible Possibility of CO 2 Emission increase CO 2 Emission by Reduction by alternative reduction of energy Economic system with economic growth and its consumption by recycle resource use (esp. focus high resource forecast on Renewable resources) use and/or cascade use of productivity resource Factor analysis of Possibility on Compact Resource recovery from Alternate fossil CO 2 Emission focus on city, waste and stocks resource consumption fuels by use of biomass, energy “Rental/Lease society Analysis on possible International division of Leapfrogging development labour and International from waste Service economy, use of path for dev’ing countries material cycle 5 ICT
JICA’s approach Policy Level Institution Level Program/Project Level
JICA’s approach Top Down approach (Policy formation & implementation) Towards Sustainable Financial Technical Consumption & Production Assistance Cooperation Bottom-up effort (Program/Project activities)
To generate “co - benefit” <Sample case> Needs to Increase New Technology New Technology Power supply + + Increase of Developmental ODA ODA Power Demand, benefit Construction Rural （ Finance and T/A ） （ Finance and T/A ） of New Power Electrifications Stations Increase of power supply Project Policy Developmen Project GHG t Objectives Implementation Reduction Introduce Mitigation of Could it reduce Climate Change climate friendly GHG? (Global Benefit ） technology Co-benefit!
Case program (1): Top-down approach (Policy formation & implementation) Example of the Policy Matrix formulated based on the policy dialogue Pillar 1: Mitigation Pillar 2: Adaptation 1.1: LULUCF 1.2: Energy (Land Use, Land Use Change and Forestry) 2.1: Water 2.2: Water 2.3: Agriculture -Power plant Resource Supply and -Industry, domestic and -Reforestation Management Sanitation commercial -REDD -Others -Forest management Pillar 3: Cross-cutting Issues 3.2: Mainstreaming 3.1:Understandin Climate Change in the 3.5: Fiscal 3.6: Early g the Impact of 3.3: CDM 3.4: Co-Benefit National Development Incentive Warning System Climate Change Program Financial Assistance Monitor, Review and advice (General Budget Support, Project Loans, Grant Coordination among Steering Committee Assistance) , line ministries Technical Partner country’s Donors Cooperation Government
Case program(2) Demand side approach <Promotion of Electricity Energy Efficiency Project> – Project objective: • To build sufficient institutional capacity in Thailand’s power sector, and energy-related private sector, so as to deliver cost-effective energy services throughout its economy, • To pursue policies and implement actions which would lead to the development, manufacture and adoption of energy efficient equipment and processes within Thailand. – Impact of the Project • Approx 4,160 GWh of total energy consumption US$25m US$9.5m US$5.4m were saved JICA WB/GEF Gov of • Over 3 million t-CO2 was reduced. Australia (During 8years project period) Co-finance <The Project on the Practical Energy Management Training Center> EGAT DSMO • Implement Demand Side Management Program • Management system for Practical Energy Management -High energy efficient home appliances, light Training Center -Green Building Program • State examination system for PRE -Thermal Energy Storage • -ESCO Pre-examination training courses • Implementing structure for pre-exam training • PRE support system
Case project(3) Production side approach <Viet Nam: EE &RE promoting project (EEREP)> Current Situation of Energy Sector in Viet Nam Rapid Increase of Energy consumption since 1986 →Appx 8% of GDP growth （ Energy consumption marked 6 times from 1990 to 2006 due to its Economic growth ） → This may continue because of its rapid economic growth （ Energy consumption in 2025 is expected to be 5 times larger than that of 2006) k TOE （ 1990- （ 2005- k TOE Trend of Energy Consumption in Viet Nam Estimated Energy consumption in Viet Nam 2006 ） 2025 ） 140,000 30,000 運輸分野 Transport 運輸分野 Transport 120,000 産業分野 Industry 25,000 その他 産業分野 Industry Others 5 倍 100,000 BAU case 2006 年： 25k TOE 6 倍 20,000 2025 年： 118k TOE その他 Others 1990 年： 4 k TOE 80,000 2006 年： 25 k TOE 15,000 60,000 10,000 40,000 20,000 年 5,000 0 0 年 年 年 2005 2010 2015 2020 2025 1990 1992 1994 1996 1998 2000 2002 2004 2006 （ Ref ） JICA Survey on National Energy Master Plan
Case program(3) Production side approach <Viet Nam: EE &RE promoting project (EEREP)> Issues on promotion of EE/RE in Viet Nam ＝ Lack of institution, awareness, finance and capacity JICA’ assistances （ Institutional development, awareness raising, financial assistance & capacity development ） EEREP ・ Mid-Long term financial assistance in EE/RE ・ Awareness raising to private sectors EE master Plan CD for VDB ・ Institutional development ODA Loans ・ CD through Universities Development of capacity ・ CD for EE Center TC for Loan appraisal of VDB Special Program responding Climate Change （ SP- RCC ） Assistance for Institutional development such as legal framework for EE, preparation of RE master plan
Outline of EEREP Objective ： Assist implementation & promotion of EE/RE by private sector in Viet Nam by providing Mid-Long term Finance EEREP Consulting services Support for CDM Project Support for update identification MONRE （ＤＮＡ） List of sub- projects List of EE equipments CDM Gov of Vietnam ＣＤＭ 事業 CDM ODA Loan activity Vietnam Lending （ JPY4billion ） VDB Dev Bank （ VDB ） Branch Repayment Target JICA Repayment enterprises =SOEs, SMEs Institute investing in EE Center of Energy EE/RE project Awareness raising TC (Seminars) CD of VDB for appraisal EE Diagnosis MOCI TC EEMP
Conclusion • Green Growth/Economy and SCP can be achieved in a same way. • Approach through development cooperation is a key for implementation of SCP. – Paris Declaration & Accra Agenda for Action are fundamental concepts • Ownership of developing countries • Alignment (Development policy, Country system-Green public expenditure & Green Procurement) • Capacity Development Integration of SCP into development policy is needed. • Well-coordinated Policies (Top-down) & Programms/projects (Bottom-up) can change both consumption & production patterns in sustainable manner.
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