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Energy R&D

Energy R&D. Source: World Bank (2009) World Development Report 2010. Energy R&D. Source: World Bank (2009) World Development Report 2010. Energy R&D. Source: World Bank (2009) World Development Report 2010.

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Energy R&D

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  1. Energy R&D Source: World Bank (2009) World Development Report 2010

  2. Energy R&D Source: World Bank (2009) World Development Report 2010

  3. Energy R&D Source: World Bank (2009) World Development Report 2010

  4. Accelerating Diffusion and Innovation of Climate Change Systems in Eastern Europe and Central Asia Jean-Louis Racine, The World Bank May 7, 2010 Knowledge Economy Forum IX - Berlin

  5. What is climate-smart innovation?

  6. Why bother with climate-smart innovation in ECA?-> Reason 1: Adaptation relies on local innovation Yield gap is already 4.5 times larger than yield increase from climate change • Water availability is expected to decrease everywhere but Russia Decrease in yields • ECA’s poor transport, power and housing infrastructure is expected to be under significant stress Source: World Bank (2009) World Development Report 2010

  7. Why bother with climate-smart innovation in ECA? -> Reason 2: There are win-win opportunities • Energy technology can promote business competitiveness Source: World Bank (2010) Lights Out? The Outlook for Energy in Eastern Europe and the Former Soviet Union

  8. Why bother with climate-smart innovation in ECA? -> Reason 2: There are win-win opportunities • Many climate change technologies are already financial viable Source: World Bank (2009) World Development Report 2010

  9. Why bother with climate-smart innovation in ECA? -> Reason 3: don’t be the last one in the game • Clean technology investments are experiencing phenomenal growth Global cumulative wind capacity Source: World Bank (2009) World Development Report 2010

  10. Why bother with climate-smart innovation in ECA? -> Reason 3: don’t be the last one in the game • But where is ECA? Location of investments of top 5 global wind equipment firms in 2009 Source: World Bank (2009) World Development Report 2010

  11. Why bother with climate-smart innovation in ECA? -> Reason 3: don’t be the last one in the game • ECA has the world’s highest carbon intensity Total primary energy supply in kiloton oil equivalent per GDP Source: World Bank (2010) Lights Out? The Outlook for Energy in Eastern Europe and the Former Soviet Union

  12. How can you stimulate Climate-Smart Innovation in ECA? • Command and control: • Regulations and mandatory performance standards • ...but careful, this is a double-edged sword

  13. How can you stimulate Climate-Smart Innovation in ECA? • Price signals • Remove subsidies to high-carbon technologies • Remove tariffs on climate-smart technologies • Tax carbon • Introduce feed-in tariffs for renewable energy

  14. How can you stimulate Climate-Smart Innovation in ECA? • Regulation and price signals in action in China Number of electric bicycles produced in China: 2008 = 21,000,000 ($11 billion industry) 1998 = 40,000 Source: World Bank (2009) World Development Report 2010

  15. How can you stimulate Climate-Smart Innovation in ECA? • But regulations and price signals alone can’t solve the market and system failures associated with innovation • Improve the business environment • Facilitate climate-smart FDI and create conditions for local production of climate-smart technologies • Introduce climate-smart innovation policy • Public R&D on climate-smart innovation • Research-industry linkages • Climate-smart industry standards • Climate-smart technology extension programs in industry and agriculture • In countries with a critical mass of innovation such as Russia, Poland and Turkey, introduce climate-smart innovation support promotion instruments in the private sector: matching grants, innovation prizes, etc.

  16. http://blogs.worldbank.org/ climatechange/ http://worldbank.org/wdr2010 http://www.worldbank.org/eca/ climatechange

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