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Module 01
Presentation Script
Presentation Script
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Presentation Script
Introduction
Presentation Script
Introduction
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Presentation Script
There
are
many
different
policy
options
for
greening
the
energy
sector
available
to
governments.
Five
broad
categories
of
policy
options
to
support
green
growth
in
the
energy
sector
include
Research
&
Development
Support,
Regulations
and
Standards,
Price
Instruments,
Quantity
Instruments,
and
International
Cooperation.
Click
on
each
of
these
policy
options
to
learn
more.
Select
Next
when
you
have
viewed
each
option
and
are
ready
to
continue.
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Presentation Script
Energy
innovation
is
a
fundamental
component
of
greening
the
energy
sector.
The
cornerstone
of
innovation
is
Research
&
Development,
or
R&D.
Innovation
is
a
complex
process
that
is
enabled
by
several
factors:
research,
applied
science
and
engineering,
the
activities
of
entrepreneurs,
an
educated
and
skilled
workforce,
and
access
to
financing
for
investment.
Research
and
development
can
be
enhanced
with
public
sector
support.
Public
sector
support
for
renewable
energy
R&D
surged
to
$5
billion
in
2010,
from
$2
billion
in
2009;
surpassing
private
sector
investments
according
to
UNEP
data
in
2011.
Specific
policy
options
available
to
governments
include
increased
funding
to
basic
research
in
science,
engineering,
and
education,
and
support
for
the
commercial
development
of
new
technologies.
In
addition,
governments
can
promote
the
development
of
an
innovation
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The
second
set
of
regulatory
policy
standards
are
technology
standards.
These
standards
guide
investments
in
new
technologies.
They
can
do
this
in
several
ways,
such
as
setting
minimum
performance
standards,
setting
standards
for
quality
grades,
or
mandating
the
use
of
specific
technologies.
Best
available
technology
standards
prescribe
that
the
best
state
of
the
art
technology
should
be
deployed.
Although
literally
understood
to
mean
that
costs
should
not
impact
the
technology
decisions,
in
practical
applications,
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costs
are
often
taken
into
account.
The
best
available
techniques
not
entailing
excessive
cost,
or
BATNEEC,
was
introduced
in
the
European
Union
to
recognize
that
costs
are
an
important
consideration
in
setting
technology
standards.
These
types
of
technology
standards
are
widely
deployed
in
the
developed
countries,
but
are
less
common
in
developing
countries.
Take
a
moment
to
explore
an
example
illustrating
technology
standards.
Roll
your
cursor
over
the
prompt
on
screen
to
learn
more.
After
you
are
finished,
advance
to
the
next
screen
to
continue.
Scanning
for
Policy
Options
-
Regulations
and
Standards
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Presentation Script
information
gaps
that
often
exist
at
the
point
of
purchase.
Programs
such
as
Quality
Seals
and
the
US
Energy
Star
label
are
examples.
In
addition,
sometimes
the
private
sector
has
developed
voluntary
standards
that
seek
to
provide
similar
information.
ISO
process
standards
for
companies,
LEED
building
certifications,
and
voluntary
carbon
standards
are
example
of
programs
that
identify
compliance
with
best
practices
in
the
industry.
Advance
to
the
next
screen
to
return
to
the
policy
options
menu
and
select
another
policy
option
to
learn
more.
Scanning
for
Policy
Options
-
Price
Instruments
The
next
set
of
policy
options
aim
to
influence
the
decisions
of
businesses
and
individuals
through
price
instruments.
For
example,
by
correctly
incorporating
environmental
costs
into
prices,
businesses
and
individuals
will
internalize
these
costs
when
they
are
making
their
investment
and
purchasing
decisions.
The
net
result
should
be
a
more
efficient
allocation
of
resources.
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Presentation Script
Two
of
the
most
pertinent
multi-sector
policies
are
fossil
fuel
subsidy
reforms
and
carbon
charges.
In
the
previous
lesson,
we
reviewed
the
harmful
economic,
environmental,
and
social
implications
of
fossil
fuel
subsidies.
By
reducing
the
subsidies,
consumption
decisions
of
individuals
and
businesses
would
be
influenced
by
the
resulting
increased
prices
of
fossil
fuels.
Eliminating
these
inefficiency
subsidies
remains
as
one
of
the
most
important
tools
in
greening
the
energy
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Presentation Script
sector.
Carbon
charges
or
fees
set
a
price
to
the
emission
of
carbon
and
provide
several
advantages.
First,
they
act
as
an
incentive
for
producers
to
use
low
carbon
technologies
and
to
switch
towards
less
emitting
fuels.
Second,
they
act
as
an
incentive
for
consumers
to
reduce
their
energy
use.
And
third,
carbon
charges
raise
revenue
and
allow
the
government
to
reduce
income
or
other
taxes
through
tax
shifting.
However,
there
are
also
political
challenges
to
implementing
carbon
charges
and
there
use
in
the
real
world
has
been
limited,
especially
in
the
developing
world.
To
learn
more,
review
this
short
case
study
on
carbon
charges
from
the
Canadian
province
of
British
Columbia.
When
you
are
finished,
advance
to
the
next
screen
to
continue.
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Presentation Script
There
are
many
energy
sector
specific
policies
that
influence
decisions
via
pricing
mechanisms.
These
policies
can
aim
to
increase
the
supply
of
clean
energy,
increase
the
demand
for
clean
energy
or
mitigate
risks
of
green
energy
projects.
Policies
that
increase
the
supply
of
clean
energy
often
function
by
lowering
the
cost
of
investing
in,
and
operating
clean
energy
projects.
These
policies
include
tax
credits,
loan
guarantees
that
help
lower
the
costs
of
capital,
and
other
sector
specific
subsidies.
Policies
that
increase
the
demand
for
clean
energy
include
feed-in
tariffs
and
green
procurement
contracts.
Feed-in
tariffs
schemes
require
electric
utilities
to
purchase
electricity
from
clean
energy
projects
at
a
set
rate
for
a
specified
period
of
time.
Feed-in
tariffs
can
provide
the
price
certainty
over
a
longer
term
that
can
make
clean
energy
projects
viable.
Similarly,
greening
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The
next
set
of
policy
instruments
are
quantity
instruments.
Similar
to
price
instruments,
it
is
valuable
to
separate
multi-sector
policies
from
sector
policies
that
target
the
energy
sector.
An
example
of
a
multi-sector
policy
is
a
carbon
emission
trading
system,
or
as
it
is
also
known
cap
and
trade.
A
certain
amount
of
emission
credits
for
the
right
to
emit
carbon
are
given
or
auctioned
away
and
businesses
are
allowed
to
trade
these
credits.
Although
different
from
a
carbon
charges
reviewed
earlier,
both
of
these
types
of
policy
instruments
can
achieve
similar
objectives
of
reducing
emissions
at
least
cost
to
the
economy.
An
example
of
a
sector-specific
quantity
instrument
is
renewable
energy
credits
or
RECs.
RECs
are
set
up
by
electricity
operators
who
set
a
fixed
quota
of
electricity
which
has
to
be
generated
from
renewable
energy.
Companies
have
the
option
of
meeting
their
obligations
through
trading.
These
policies
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Presentation Script
have
been
used
to
jumpstart
demand
for
clean
energy
in
several
jurisdictions.
One
variation
on
REC
trading
is
the
renewable
portfolio
standard
(RPS)
or
Renewable
Obligation,
which
sets
a
minimum
percent
of
a
utilitys
portfolio
that
must
come
from
renewable
energy.
Unlike
a
full
REC
trading
system,
RPS
systems
may
or
may
not
allow
for
trading
to
achieve
compliance.
In
addition,
certain
RPS
systems
may
also
specify
minimum
levels,
called
set-asides
for
specific
technologies
like
solar
PV.
Countries
with
RPS
or
REC
trading
should
take
care
to
ensure
that
they
do
not
conflict,
or
are
not
redundant
with,
other
policies
such
as
emissions
trading
systems.
To
learn
more,
review
the
two
case
studies
shown
on
screen.
After
you
are
finished,
advance
to
the
next
screen
to
continue.
Scanning
for
Policy
Options
-
International
Cooperation
The
fourth
category
of
policy
options
available
to
governments
is
international
cooperation.
As
the
energy
sector
is
globalized
both
in
terms
of
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its
structure,
and
its
impacts,
governments
from
around
the
world
need
to
work
together
to
promote
green
growth
in
the
sector.
International
Cooperation
approaches
can
include
climate
finance
to
provide
access
to
capital
funding
for
clean
energy
projects
and
investments
in
energy
efficiency
in
the
developing
world.
South-south
knowledge
exchange
and
data
sharing
can
enable
the
sharing
of
information,
experiences,
and
best
practices.
Furthermore,
partnership
networks
can
be
cultivated
to
help
facilitate
the
flow
of
information
across
borders.
The
signing
of
international
treaties
regarding
greening
the
energy
sector
can
potentially
be
a
useful
way
for
governments
to
align
interests,
set
targets,
and
collectively
take
action.
For
example,
the
signing
of
trade
agreements
may
encourage
the
flow
of
clean
technologies
between
countries.
Lets
examine
the
south-south
knowledge
exchange
and
data
sharing
options
further.
Advance
to
the
next
screen
to
learn
more.
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We
are
now
going
to
talk
about
data
sharing,
which
is
another
way
to
collaborate
internationally.
We
need
to
throw
open
the
doors,
recognizing
that
others
can
find
and
create
their
own
solutions.
The
Open
Data
initiative
is
one
effort
to
achieve
this
aim.
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The
World
Bank
launched
the
Open
Data
initiative
in
2010
with
the
release
of
the
most
comprehensive
database
on
developing
economies,
which
included
more
than
7,000
indicators.
Believing
that
open
data
can
increase
transparency
and
accountability,
improve
efficiency
and
effectiveness
and
create
economic
opportunity,
this
initiative
aims
to
embrace
a
new
development
paradigm
toward
Open
development.
The
main
objective
is
to
provide
public
access
to
previously
restricted
sources
of
data
and
knowledge,
thereby
promoting
local
solutions
to
development
and
energy
challenges.
Monitoring
Progress
Towards
Green
Growth
Transitioning
to
a
greener
energy
sector
can
be
made
more
effective
with
targeted
monitoring
of
effectiveness
and
the
ability
to
adapt
policy
to
respond
to
this
information.
This
requires
well-designed
indicators
to
help
governments
monitor
trends,
assess
policies,
and
revise
objectives.
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The
key
steps
for
monitoring
begin
with
developing
a
framework
for
monitoring
progress
towards
green
growth
that
outlines
the
interactions
of
the
economy,
environment,
and
policy.
Identifying
energy-related
indicators
is
the
next
step
of
the
process.
In
selecting
the
type
and
number
of
indicators
to
cover,
there
is
a
trade-off
between
ensuring
all
the
different
dimensions
and
interactions
of
green
growth
in
the
energy
sector
are
adequately
covered
and
the
necessity
for
simplicity.
Once
the
indicators
have
been
identified,
data
should
be
collected.
The
next
step
is
to
analyze
the
results
and
then
report
the
results
to
the
public
and
stakeholders.
Ensuring
the
process
is
transparent
is
a
critical
component
to
earn
public
and
stakeholder
support.
Finally,
using
the
results
of
the
process,
refinements
can
be
made
to
the
framework
and
the
identified
indicators
as
needed.
We
will
explore
these
steps
in
more
detail
in
a
subsequent
lesson.
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When
monitoring
progress,
it
is
often
useful
to
group
potential
indicators
into
broad
categories.
The
OECD
has
developed
a
useful
framework
that
outlines
the
interactions
of
four
groups
of
indicators:
the
environmental
and
resource
productivity
of
production
and
consumption;
the
natural
asset
base;
the
environmental
dimension
of
quality
of
life;
the
policy
responses
and
economic
opportunities.
All
of
these
categories
are
relevant
for
the
energy
sector.
Review
each
of
the
indicator
groups
to
see
some
examples
of
potential
energy-related
indicators.
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Indicators
are
means
to
monitoring
progress
towards
green
growth.
This
information
is
used
to
assess
whether
the
policy
instruments
are
achieving
the
identified
policy
objectives.
For
example,
if
the
policy
objective
is
to
increase
renewable
energy
in
the
electricity
grid,
we
can
use
an
indicator
such
as
the
share
of
electricity
from
renewable
energy
to
track
and
assesses
the
progress
and
effectiveness
of
the
key
policy
instruments.
Other
key
indicators
of
a
policy
could
be
employment
impacts
and
costs.
Click
on
the
link
to
see
the
share
of
electricity
from
renewable
energy
sources
within
different
countries
in
2009,
and
the
different
targets
countries
have
set.
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Now
that
you
have
completed
this
lesson,
we
invite
you
to
review
the
following
references.
Visit
these
links
for
more
information
on
Energy
Sector
Strategies
Policy
Instruments.
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