1

From Ideas to Action:From Ideas to Action:From Ideas to Action:From Ideas to Action:Clean EnergyClean Energy SolutionsSolutions

for Asia to Address Climate Changefor Asia to Address Climate Change

Orestes Anastasia, US Agency for International DevelopmentOrestes Anastasia, US Agency for International DevelopmentUSAID Regional Development Mission for AsiaUSAID Regional Development Mission for Asia

andandP t d P t PhD Chi f f P tP t d P t PhD Chi f f P t

1a

Peter du Pont, PhD, Chief of Party,Peter du Pont, PhD, Chief of Party,ECOECO--Asia Clean Development and Climate ProgramAsia Clean Development and Climate Program

Presented at:Presented at:1717thth AsiaAsia--Pacific Seminar on Climate ChangePacific Seminar on Climate Change

“Good Governance for Climate & Development“Good Governance for Climate & DevelopmentCoCo--benefits Innovation and Integrated Adaptation to Climate Change”benefits Innovation and Integrated Adaptation to Climate Change”

Bangkok, Thailand, Bangkok, Thailand, 31 31 July July -- 3 3 August August 20072007

2

Overview

1. Regional approach to clean energy2. From Ideas to Action: regional analysis of clean

energy options3. Overview of new regional program on clean energy

2

3

Regional Challenges Require A Regional Approach

• Common Energy Challenges for Asia’s Developing Economies …

Increasing energy demandAssociated urban air pollutionEnergy security concernsClimate change increasing in importance

• … Are Most Effectively Tackled with a Regional Response Harmonization of energy standards and labelingHarmonization of energy standards and labelingBenchmarking clean energy practices and performanceCatalyze change by sharing and replicating innovationLeverage resources of organizations and donors with regional initiatives

4

USAID-funded review of clean energy priorities in Asia

Obj tiObjectives• Identify clean energy priorities –

technologies, sectors, and initiatives• Identify opportunities for regional actionMethodology• organized “listening tours” with 220 key

energy stakeholders in the 6 countries• researched and prepared more than 300 p p

profiles on clean energy institutions, policies, programs

• prepared in-depth country reports on the clean energy opportunities in the 6 countries

3

55

Comparative Evaluation of Fuel Options

Supply-Side Energy• Coal (CCT and carbon storage)• Petroleum• Natural Gas (incl. methane capture)• Renewables (biomass, wind, solar, small

hydro, geothermal, biofuels)• NuclearEnergy Efficiency• Power generation and transmission

efficiency• End-use efficiency (buildings, appliances,

lighting, industry, transport, etc.)

6

DEMAND DRIVERSEconomic growth and increased incomes are leading to large increases in energy demandincreases in energy demand

Source: APERC 2006

4

7

UNTAPPED EFFICIENCYBut regional experience shows significant potential for efficiency improvementsefficiency improvements

100100100

80

90

100

110

Ele

ctri

city

Use

Fluorescent Lamps(38% improvement)

Efficiency gains in Korean appliances – 1993 to 2000

58

46

62

40

50

60

70

1993 Market Ave. 2000 Market Ave.

Nor

mal

ized

E

Refrig-Freezers(42% improvement)

Air Conditioners(54% improvement)

Source: Sun-Keun Lee, 2001

8

COAL RELIANCECoal is the “fuel of choice” for the next 15-20 years to meet demand

The share of primary energy from coal has risen from 43% in 1980, to 48% in 2005, and is projected to reach 51% in 2030

demand

Primary Energy Mix for Asian Countries, 1980 to 2005

Coal

Nuclear

Hydro

Source: BP Statistics 2006

in 2030.

Note: This data includes all of Asia, not just developing Asia

Oil

Gas

5

9

… and the Share of Coal is IncreasingShare of Coal in Primary Energy Supply, 2002 and 2030

27%

25%

25%

16%

13%

13%

11%19%

Philippines

Thailand

Vietnam

Indonesia20022030

59%

52%

56%

34%

0% 20% 40% 60% 80%

China

India

Source: APERC, TERI

10

OIL AND ENERGY SECURITYSoutheast Asia will import 70% of its oil by 2030

Imported Oil as Share of Total Oil Consumption

Source: APEC 2006

6

11

LOCAL AIR POLLUTIONFossil Fuels Lead to High Particulate Levels

Criteria pollutant levels in Asian megacities

Local air pollution has been linked to more than 500,000 premature deaths annually in Asia (WHO)

12

INCREASING CO2 EMISSIONS Developing Asia’s CO2 Emissions Will Increase 4-Fold

Current26 billion metric tons CO2

203040 billion metric tons CO2

Source: APERC, TERI

7

13

ELECTRICITY IS MAJOR SOURCEMore than half of CO2 emissions from power plants

Projected CO2 Emissions by Sector (2002 - 2030)

Electricity

Commercial 2%

Residential5%

Transport12%

Transport11%

Residential7%

Commercial 2%

Electricity Generation

45%y

Generation55%

Industry23%

Transformation 3%

2002 2030

Industry29%

45%

Transformation 6%

Source: APERC, TERI

14

What is the Answer? There is no Single Silver Bullet

Coal• Expected nearly 4-fold increase in consumption by 2030, will lead to 13

billion metric tons of annual CO2 by 2030Petroleum• Import dependency to increase drastically (exporters turn into importers;

others will import 70-90% of their needs)Natural Gas• By 2030, countries will import between 40-75 percent of their needs. Nuclear • Even with massive investment, nuclear projected to supply only approx. 4-

8% of primary energy needs by 2030 (China, India, Thailand, and Vietnam)Renewable Sources• Even with major expansion, current estimates project renewables to account

for 5-10% of future energy needs by 2030

8

15

Estimated energy delivery costs by clean energy typeTypical cost ofyavoided electricity generation(about 6-7 US cents/kWh)

The “least cost” options are energy efficiency, and they cost ¼ to ½ as much as building a new power

l t

Sources: Compiled from Sims et al, 2003; Sawin 2004; LBNL, 2005 and IEA, 2006

plant

16

Costs of carbon reductions by clean energy option

A number of optionsA number of options can reduce CO2emissions at no net cost

9

17

Ranking of clean energy options for regional cooperation

18

Top 6 priority clean energy technologies and sectors for regional cooperation

• Energy-efficient lighting and appliances• Clean coal technologies• Renewable energy technologies

(esp. onshore wind energy and biomass-fired electricity)

• Energy-efficiency in the transport sector• Biofuels for transportation• Methane capture

10

19

Implementing Just These Options Can Reduce Future Emissions from Asia’s Developing Economies by 25%

USAID ECOUSAID ECO--Asia Clean Development Asia Clean Development and Climate Programand Climate Program

20a

gg

11

21

ECO-Asia Clean Development and Climate Program

• Findings of the Regional AnalysisA number of viable, low-cost options are ready for immediate implementationImplementation often limited due to lack of awareness, or technical, institutional, and financial barriers

• Program ObjectivePromote market transformation toward clean energy development in AsiaAsia

• Activities1. Increase policy and market incentives2. Mobilize and facilitate clean energy financing3. Share knowledge to accelerate deployment

22

ECO-Asia CDCP Geographic Coverage

ChinaIndiaIndonesiaPhilippinesThailandVietnamVietnam

These 6 countries account for 96% of the GDP of Asia’s developing countries

12

23

Strategy of the ECO-Asia CDCP

Regional Actions …• Promote partnerships and improve cooperation• Replicate best practices to scale up investments in

clean energy technologies• Leverage resources of key regional partners - ADB,

ASEAN, APP, ASEAN, and APEC… Anchored to National Commitments• Ensure commitments and ownership at national level • Address national clean energy needs and priorities • Establish National Advisory Committees

24

Program Areas and OutcomesProgram Area Activities Expected Outcomes

Energy efficient lighting

• Benchmarking of CFL programs and standards

• Regional quality assurance program for CFLs

• Improved quality and availability of energy-efficient lighting (CFLs)

Cleaner coal • Monitoring coal expansion plans and environmental regulations

• Promote cleaner coal technologies and practices

• Catalyze financing for cleaner coal technologies

• Improved efficiency and environmental standards in coal power plants

• Increased investments in more efficient coal power plants

g

Clean energy finance

• Train financial institutions to evaluate energy-efficiency loan proposals

• Assist in developing bankable clean energy loan proposals

• Reduced barriers to lending for clean energy projects

• Increased commercial lending for clean energy projects

Knowledge sharing and networks

• Establish clean energy knowledge portal for Asia region

• Annual regional forum on clean energy policy and finance

• Create learning culture through knowledge management

• Communities of practice in the areas of clean coal and CFLs

13

25

www.CleanEnergyAsia.net

Thank youThank you

26a

www.CleanEnergyAsia.net www.CleanEnergyAsia.net