Unit 9 - Economic Implication Of Energy And Development

Question 1

Subsidies for fossil and RE

Answer 1

Fossil fuels: 544 US Billion (other figures are 775B or 2trillion IMF)
RE: 101 US Billion (20% of total)

80% of fossil fuel subsidies are in developing countries:

1. oil based products
2. Natural gas
3. Coal

Question 2

Investment needed to achieve universal energy access and by whom?

Answer 2

1 US$ trillion by 2030 of which 640b USD for electricity

• multilateral
• ODA
• Development Country Governments
• private sector

Question 3

3 delivery models

Answer 3

On grid
Mini grid
Off grid

Question 4

What are carbon markets mechanisms:

Answer 4

1. CDM - offsetting mechanism
2. ETS - cap and trade mechanism
3. JI
4. REDD

Question 5

A ETS problem

Answer 5

Grand-fathering - protective governments negotiate emission caps that are far higher than needed with their national industries.

Question 6

Solution to increase prices in the carbon market

Answer 6

Back-loading - take up to 900 million carbon allowances out of the EU ETS.

Question 7

GCF history

Answer 7

Discussed at COP15 Copenhagen (2009)
Formalized at COP16 Cancun (2010)
Launched at COP17 Durban (2011)

2010-2012 30b Fast Track funding for poor countries the actual was however only 12b
By 2020 100b annually

Question 8

WB Energy funds

Answer 8

CIF - Climate Investment Fund

• Clean Technology Fund CTF
• Strategic Climate Fund SCF

CTF = demonstration, deployment, transfer of low carbon technologies for mitigation in the power sector, the transsport sector and EE.

SCF = pilot projects and TT in the field of RE, forestry and climate resilience.

SREP - Scaling Up RE Programme 250m for LDCs

Question 9

Stern conclusions on cost to stabilize and cost when no mitigation takes place

Answer 9

Un-mitigated CC could cost between 5-20% of global GDP annually due to the effects of CC

Stabalizing global emissions at 550ppm CO2eq could cost about 1% of gloabl GDP annually by 2050

Question 10

Stern damage costs per CO2 and mitigation costs

Answer 10

85USD per additional tCO2eq (damage costs)

25USD per reduced tCO2eq

Question 11

Critics to the Stern report

Answer 11

1. The low discount rate - he does not value the welfare of current generations differently than of future generations.
2. Adaptation strategies were not taken into account.

Question 12

2009 investment in modern energy services and who provided the funds?

Answer 12

9 billion USD

30% multilaterals
30% domestic governments
20% private sector
15% bilateral funding

Question 13

Investment necessary in universal energy access:

Answer 13

1 trillion USD or 48 billion per year (5x as much as in 2009 invested)

Of which 64% is necessary to get universal access to electricity
640 billion USD. Of which a lot is necessary for SSA, followed by India.

Question 14

6x annual investment necessary to provide access to how many people (per year)

Answer 14

On-grid. 11 bUSD/year. 20m people/year
Minigrid. 12. 19
Off-grid. 7.4. 10

LPG. 0.9. 55
Biogas 1.8. 15
Advanced biomass stoves 0.8. 59

Question 15

What is SREP?

Answer 15

Scaling Up RE Programme for LDCs
250m USD, OECD donors

Scale up deployment of RE, encouraging energy access (particularly electricity) mainstream RE in national energy provision.

Including small scale solutions, AVG cap

Question 16

Urban and Nordensvard (2013) indicate that the greatest barriers to RE development in poor countries are:

Answer 16

1. Lack of access to capital
2. Need to engage the private sector to increase invesments in RE
3. A lack of affordability of current technologies
4. Weak enabling environments