Globalization of Low-Carbon Technologies: The Impact of the Paris Agreement

618 Pages·2017·11.16 MB·English

by  Venkatachalam Anbumozhi

Venkatachalam Anbumozhi
Kaliappa Kalirajan Editors
Globalization
of Low-Carbon
Technologies
The Impact of the Paris Agreement
Globalization of Low-Carbon Technologies
Venkatachalam Anbumozhi
Kaliappa Kalirajan
Editors
Globalization of Low-Carbon
Technologies
The Impact of the Paris Agreement
123
Editors
Venkatachalam Anbumozhi Kaliappa Kalirajan
Economic ResearchInstitute for ASEAN Crawford Schoolof Public Policy
andEastAsia Australian National University
Jakarta Canberra,ACT
Indonesia Australia
ISBN978-981-10-4900-2 ISBN978-981-10-4901-9 (eBook)
DOI 10.1007/978-981-10-4901-9
LibraryofCongressControlNumber:2017940810
©SpringerNatureSingaporePteLtd.2017
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Foreword
The Presidents and Prime Ministers who gathered in Paris for the Conference of
Parties (COP21) in December 2015 witnessed palpable enthusiasm, collective
effort,andnotablyunwaveringoptimismtotackleclimatechangeinwhattheworld
believes is such a defining moment. Toward this, the submissions of Intended
Nationally Determined Contributions (INDC) by individual countries, declaring
and ratifying proposed actions for a new global agreement to reduce carbon
emissions, have emerged as a significant milestone in the entire spectrum of sus-
tainable development.
The Paris Agreement clearly and strongly signaled to the energy sector that a
transition to a low-carbon economy is now an irreversible trend. Decarbonizing
energy systems by the second half of the century is a common objective for all
INDC. Advanced economies must face the challenge of unlocking the long-lived,
high-emissioninfrastructure,mostofwhichneedtobereplacedorremodeledfora
low-carbon future by 2030. On the other hand, the emerging economies of Asia
faceadifferentchallenge.Withtheexpectedcontinuedandrapidgrowthinenergy
demand,anewparadigmofeconomicdevelopment—onethatdecoupleseconomic
growth from greenhouse gas emissions to more efficient use of energy and
low-carbon energy supply—is needed. Hence, increasing access to the new
low-carbon technologies by making them cost effective to meet the INDC targets
becomes crucial.
ItisinthiscontextthattheEconomicResearchInstitutefortheASEANandEast
Asia(ERIA)hasinitiatedaprojecton‘GlobalisationofLow-CarbonTechnologies’
that aims to:
– Identify the key to low-carbon technologies that can significantly influence the
INDC targets in the short and medium terms.
– Assess the cost of transition to a low-carbon energy future by 2030 under the
INDC framework.
– Review a regional technology cooperation that could accelerate investments on
a scale required to achieve the INDC targets.
v
vi Foreword
This book has emanated from the research papers commissioned under the
project and discussed in two technical workshops arranged by ERIA. This project
brought together leading energy and economic experts from the region, assessed
country INDC, generated common insights on technology needs and weighed
deployment paths, analyzed policy implications, and identified action plans, all of
which are captured in this book.
One important empirical finding is that energy-related emissions have slowed
down because of adaptation of new low-carbon technologies; however, the right
investments in the sub-sector are necessary. The key prerequisites to successfully
achieveINDCtargetsaretorampupglobalizationefforts,regularlyreviewrelevant
and related policies, and make coordinated efforts at the regional level in tracking
the progress of low-carbon technology deployment to meet the 2030 targets.
One important empirical finding is that energy-related emissions have slowed
down because of adaptation of new low-carbon technologies; however, the right
investments in the sub-sector are necessary. The key prerequisites to successfully
achieveINDCtargetsaretorampupglobalizationefforts,regularlyreviewrelevant
and related policies, and make coordinated efforts at the regional level in tracking
the progress of low-carbon technology deployment to meet the 2030 targets.
This book is part of ERIA’s efforts to produce knowledge products to promote
sustainable development, one of our three priority themes. I am confident that this
publication will contribute to energy policy development and analytical under-
standingonlow-carbontechnologysystemswherenewinsightsareurgentlyneeded
from the perspective of the Paris Agreement. I hope this book will also help
countries in the ASEAN region and East Asia to set up and implement robust
actions plans on INDC and sustainably manage their critical energy resources for
the long-term development of their people.
October 2017 Hidetoshi Nishimura
President
Economic Research Institute for ASEAN and East Asia
Contents
1 ParisAgreementandGlobalizationofLow-CarbonTechnologies:
What’s Next for Asia? .. ..... .... .... .... .... .... ..... .... 1
Venkatachalam Anbumozhi and Kaliappa Kalirajan
Part I INDC and Low-Carbon Technology Deployment Scenarios:
Regional Analysis
2 INDC and Low-Carbon Technology Deployment Scenarios:
China.... .... .... .... ..... .... .... .... .... .... ..... .... 21
Yuezhong Zhu and Jianguo Liu
3 INDC and Low-Carbon Technology Deployment Scenarios:
India. .... .... .... .... ..... .... .... .... .... .... ..... .... 57
Ritu Mathur and Manish Kumar Shrivastava
4 INDC and Low-Carbon Technology Deployment Scenarios:
Indonesia . .... .... .... ..... .... .... .... .... .... ..... .... 83
Arianto A. Patunru and Tsani Fauziah Rakhmah
5 INDC and Low-Carbon Technology Deployment Scenarios:
Malaysia.. .... .... .... ..... .... .... .... .... .... ..... .... 115
V.G.R. Chandran Govindaraju
6 INDC and Low-Carbon Technology Deployment Scenarios:
Philippines.... .... .... ..... .... .... .... .... .... ..... .... 149
Jessie C. Elauria and Marilyn M. Elauria
7 INDC and Low-Carbon Technology Deployment Scenarios:
Thailand.. .... .... .... ..... .... .... .... .... .... ..... .... 193
Qwanruedee Chotichanathawewong
8 INDC and Low-Carbon Technology Deployment Scenarios:
Vietnam .. .... .... .... ..... .... .... .... .... .... ..... .... 241
Pham Khanh Toan and Nguyen Duc Cuong
vii
viii Contents
9 INDC and Low-Carbon Technology Deployment Scenarios:
Cambodia, Lao PDR and Myanmar .... .... .... .... ..... .... 283
Beni Suryadi and Sanjayan Velautham
Part II Estimating the Low-Carbon Technology Deployment and
Paris Climate Agreement Costs and Meta Policy Analysis:
Cross Country Learning
10 Estimating the Low-Carbon Technology Deployment Costs
and INDC Targets.. .... ..... .... .... .... .... .... ..... .... 335
Sivanappan Kumar, Md. Anisuzaman and Pallavi Das
11 INDC Costs and Experiences in Removing Low-Carbon
Technology Barriers: Japan... .... .... .... .... .... ..... .... 367
Jusen Asuka
12 INDC Costs and Experiences in Removing Low-Carbon
Technology Barriers: New Zealand. .... .... .... .... ..... .... 403
Douglas Hill
13 INDC Costs and Experiences in Removing Low-Carbon
Technology Barriers: Australia .... .... .... .... .... ..... .... 425
Gaminiratne Wijesekere and Arif Syed
Part III Globalization of Low-Carbon Technologies for Achieving
the Paris Climate Agreement: Market and Non-Market
Forces
14 Regional Cooperation in Renewable Energy Trade: Prospects
and Constraints.... .... ..... .... .... .... .... .... ..... .... 459
Kaliappa Kalirajan and Yichang Liu
15 Regulatory Instruments and the Diffusion of Low-Carbon
Technologies in the European Union.... .... .... .... ..... .... 479
Matthias Helble and Adam Majoe
16 World Bank Experience in Low-Carbon Investments
and the Role of Carbon Pricing in China .... .... .... ..... .... 513
Govinda R. Timilsina, Jing Cao and Mun Ho
17 Establishing a Low-Carbon Technology Finance Mechanism:
Asian Development Bank Experiences on Climate Technology
Finance Center .... .... ..... .... .... .... .... .... ..... .... 537
Lingshui Mo, Yongping Zhai and Xuedu Lu
Country Level Analysis on the Cost of Low-Carbon Technologies
Appendix A: Cambodia . .... ..... .... .... .... .... .... ..... .... 567
Contents ix
Appendix B: China. .... .... ..... .... .... .... .... .... ..... .... 573
Appendix C: India . .... .... ..... .... .... .... .... .... ..... .... 579
Appendix D: Indonesia.. .... ..... .... .... .... .... .... ..... .... 583
Appendix E: Malaysia .. .... ..... .... .... .... .... .... ..... .... 587
Appendix F: Philippines. .... ..... .... .... .... .... .... ..... .... 591
Appendix G: Thailand .. .... ..... .... .... .... .... .... ..... .... 593
Appendix H: Vietnam... .... ..... .... .... .... .... .... ..... .... 599
Index .... .... .... .... .... ..... .... .... .... .... .... ..... .... 605
About the Editors
Venkatachalam Anbumozhi is a Senior Economist at the Economic Research
Institute for ASEAN and East Asia (ERIA), Indonesia. His previous positions
include Capacity Building Specialist and Senior Fellow at Asian Development
Bank Institute and Assistant Professor atthe University of Tokyo. Adistinguished
fellow of Asia Pacific Rim University (APRU) Forum on Development and
Environment, he also advised ADB, JICA, JBIC, and UNESCAP projects on
sustainable development. He has published several books, authored numerous
research articles, and produced many project reports on natural resource manage-
ment,climatefriendlyinfrastructuredesign,andprivatesectorparticipationingreen
growth. Anbumozhi wasinvitedasamember oftheAPEC Expert Panel on Green
ClimateFinanceandtheASEANPanelforpromotingclimate-resilientgrowth.He
has taught resource management, international cooperation, and development
finance at the University of Tokyo and has speaking engagements at some of the
leading international organizations. He obtained his Ph.D. from the University of
Tokyo.
KaliappaKalirajan isaProfessorintheCrawfordSchoolofPublicPolicyatthe
Australian National University, Australia. He is also a Visiting Professor at the
Madras School of Economics, India, and International University of Japan. His
areas of major interest include macroeconomic and trade policies, sources of
growth, regionalcooperationinlow-carbonenergysystems,andtechnology issues
in emerging Asian countries. He has 150 publications in those areas in refereed
academicandpolicyjournals.Hehasauthoredandedited15books.Heiscurrently
serving on the editorial board of the following journals: Journal of Asian
Economics; Agricultural Economics; Australian Journal of Agricultural and
Resource Economics; The Developing Economies; The Journal of Applied
Economic Research; Journal of Social and Economic Development; and Asia and
the Pacific Policies Studies. He has been a consultant to different national and
international organizations from time to time.
xi