Technology diffusion and Joint Implementation (JI)
Three new reports from the Annex I Expert Group on the UNFCCC - October 2006

In October 2006, the Annex 1 Expert Group on UNFCC released a number of new reports, three of which are of direct relevance to Sustainable Energy Technologies. Two of the reports discuss the political support and actions needed to overcome non-technical barriers for diffusion of energy efficient technologies. The third report examines Current Issues and Emerging Challenges in the JI.

Download the report - Oct 2006

Numerous barriers still impede the dissemination of these technologies. Most technical barriers have now been fixed, although technical limitations persist; unfortunately, past failures have left some distrust in the public and policy makers’ opinion in many countries. Other barriers include high investment costs, failures to account for the public energy security and environmental benefits, insufficient training of professional installers, “split incentives” and other institutional barriers, legal barriers such as permitting, and lack of awareness of the potential by customers as well as policy makers.

The uneven level of solar thermal markets in countries with similar climate and energy conditions highlights the importance of public policies to overcome the barriers to their use.

Policies to overcome these barriers may include support to research, development and demonstration programmes and support to market deployment through public outreach and professional training, certification of components guarantees of performances of systems and the establishment of solar energy service contracts.

Download the report - Oct 2006

Compact Fluorescent Lamps (CFLs) is a cost effective means of radically reducing the energy consumption for lighting that account for 8% of the worlds' CO 2 emission. Yet CFL account only for 6% of the lighting market and represent a minor share of light production in the residential sector. The natural uptake of CFLs in the market is hampered by a variety of barriers. Though CFL costs have gone down significantly since they were first introduced, their high initial cost compared to incandescent lamps remains an important barrier particularly for the poorer sections of the community.

To capture the benefits of CFLs, governments can implement policies and measures to overcome such barriers. A number of countries already have experience with such programmes. The cases of Brazil, California, China, South Africa and the United Kingdom are considered here to draw lessons from this experience and to help improve the design of future CFL and other technology diffusion programs. These case studies focus on actions that displace incandescent lamps in favour of CFLs, which is where the major savings opportunity lies.

A number of policy-specific lessons can be drawn from the cases considered. First, lowering the price differential of CFLs compared to incandescent lamps through, for example, a subsidy programme is effective in supporting market growth and provides a strong foundation to demonstrate long-term CFL benefits. Second, promotional campaigns can be effective though they require a high level of coordinated involvement from all actors in the lighting market. Third, ensuring the quality of CFLs through certification schemes can also contribute to build trust in the technology.

The case studies show that success was partly conditional on policy addressing multiple barriers. The first cost and information barriers were most often addressed jointly. Yet other barriers should also be addressed. Governments should emphasise the need for a portfolio approach with different measures targeting different barriers.

Also, to provide consistent messages, programmes need to be sustained and adjusted as the CFL market evolves. A monitoring and evaluation process to gauge the effectiveness of measures should be included in any CFL diffusion programme.

Download the Report - Oct 2006

The paper examines the following issues:

Status of host country arrangements, including institutional issues: This includes information on host country JI policies, national registries and responsible organisations, as well as a discussion on the status of JI Track I and II, and the approaches that are being taken to develop national guidelines and procedures for these.

Buyer-side criteria for investment: The key determinants of the investment climate for JI transactions are outlined, including the differences between public and private sector investment, and the essential versus ‘desired’ parameters that investor countries would like to see in host countries.

JI baselines and monitoring: The differences between JI and CDM with respect to development/approval of baselines and monitoring are identified, with the aim of assessing any implications for the carbon market.

The Annex I Expert Group is an ad hoc group of government officials from Environment, Energy and Foreign Affairs ministries from countries that are listed in Annex I to the United Nations Framework Convention Climate Change, and those that have acceded to Annex I commitments. Annex I countries include most OECD member states and some countries from central and eastern Europe and the Commonwealth of Independent States that are undergoing the process of transition to a market economy (EITs).

The OECD and IEA carry out analytical work for this Group to support:

1. Annex I countries in the UNFCCC negotiations, and 
2. national climate change policy development.

Further information and other papers from the Annex I Expert Group on the UNFCCC can be downloaded from: www.oecd.org/env/cc/aixg