+2°C Third Report | 2017 Renewable Energy and Energy Efficiency in Developing Countries: Contributions to Reducing Global Emissions UN Environment promotes environmentally sound practices globally and in its own activities. This publication is printed on 100% recycled paper, using vegetable - based inks and other eco- friendly practices. Our distribution policy aims to reduce UN Environments carbon footprint. Togu Cover inside GreenDot.indd 1 11/25/09 9:49:23 AMA digital copy of this report is available at 1gigatoncoalition Copyright © United Nations Environment Programme, 2017 This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. The United Nations Environment Programme would appreciate receiving a copy of any publication that uses this publication as a source. 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No: DTI/2132/PARenewable Energy and Energy Efficiency in Developing Countries: Contributions to Reducing Global Emissions Third Report | 2017 +2°CLEAD AUTHORS Yale University: Angel Hsu, Carlin Rosengarten, Amy Weinfurter, Yihao Xie REN21: Evan Musolino, Hannah E. Murdock REVIEWERS Niklas Höhne, Markus Hagemann, and Takeshi Kuramochi (NewClimate Institute), Philip Drost (UN Environment), Nathan Borgford-Parnell and Hanxiang Cong (Institute for Governance and Sustainable Development), Zhao Xiusheng (Tsinghua University, China) COUNTRY, INITIATIVE AND DATA CONTRIBUTORS Case study support: We thank and acknowledge following individuals for their valuable assistance providing consultation, feedback and information to inform the case studies. Jaime Acuña (Univalle),Adedoyin Adeleke (Centre for Petroleum, Energy Economics and Law, University of Ibadan), Ayooluwa Adewole (Centre for Petroleum, Energy Economics and Law, University of Ibadan), Godwin Aigbokhan (Renewable Energy Association of Nigeria (REAN), Habiba Ali (SOSAI Renewable Energies Company), Centro Regional de Producción más Limpia (CRPML), Corporación Autónoma Regional del Valle del Cauca (CVC), Tolu Fakunle (Centre for Petroleum, Energy Economics and Law, University of Ibadan), Eitan Hochster (Lumos Global), Janet Kajara (Kampala Capital City Authority (KCCA), Shehu Ibrahim Khaleel (Renewable Energy Resources Development Initiatives (RENDANET), Edison Masereka (Kampala Capital City Authority (KCCA), Nolbert Muhumuza (Awuma Biomass), Tanya Müller Garcia (Secretary of Environment, Mexico City), Eleth Nakazzi (Kampala Capital City Authority (KCCA), Ines Restrepo-Tarquino (Univalle), Patricia Ugono (Solynta), Uvie Ugono (Solynta), Paola Andrea Vásquez (GEADES-UAO), Sandra Vásquez (El Castillo) Multistakeholder partnerships Patrick Blake (en.lighten, U4E), Callum Grieve (Sustainable Energy for All (SEforALL), Martin Hiller (Renewable Energy and Energy Efficiency Partnership (REEEP), Irma Juskenaite (Climate Technology Centre and Network (CTCN), Tatiana Kondruchina (Climate and Clean Air Coalition (CCAC), Celia Martinez (District Energy in Cities Initiative), Wei-Shiuen Ng (International Transport Forum, OECD), Eva Kelly Oberender (Renewable Energy and Energy Efficiency Partnership (REEEP), Ellen Paton (UK International Climate Fund (ICF), Quinn Reifmesser (Renewable Energy and Energy Efficiency Partnership (REEEP), Andrea Risotto (NDC Partnership), Nora Steurer (The Global Alliance for Buildings and Construction (GABC), Jukka Uosukainen (Climate Technology Centre and Network (CTCN), Maria van Veldhuizen (Renewable Energy and Energy Efficiency Partnership (REEEP), Gunnar Wegner (Energizing Development and Climate Mitigation (EnDev), Elke Westenberger (Moroccan Climate Change Competence Centre (4C Maroc), Laura Williamson (REN21), Peter Wright (Sustainable Energy for All (SEforALL) Data gathering Markus Kurdziel (IKI), Sarah Leitner (IKI), Karoline Teien Blystad (Norfund), Lucie Bernatkova (EIB), Cyrille Arnould (EIB), Aglaé Touchard- Le Drain (EIB), Martina Jung (KfW), Milena Gonzalez Vasquez (GEF), David Elrie Rodgers (GEF), Ichiro Sato (JICA), Yoji Ishii (JICA) THOMSON REUTERS A contribution from Thomson Reuters report “Global 250 Greenhouse Gas Emitters: A New Business Logic” is included in chapter 3. Lead Authors: David Lubin, Constellation Research and Technology; John Moorhead, BSD Consulting; Timothy Nixon, Thomson Reuters The authors would like to thank and acknowledge the important contributions of Chris Mangieri, Dan Esty and Jay Emerson of Yale University and Constellation Research and Technology. Important data and analytics support was provided by Frank Schilder, Thomson Reuters Research & Development, Adam Baron from Thomson Reuters Content Analytics, and Ian van der Vlugt from CDP. PROJECT MANAGEMENT AND COORDINATION Zitouni Ould- Dada (UN Environment), Rashmi Jawahar Ganesh (UN Environment) REN21 The 1 Gigaton Coalition would like to thank and acknowledge the invaluable assistance of REN21, namely: Hannah E. Murdock for research coordination, and Linh H. Nguyen for research support. DESIGN AND LAYOUT Weeks.de Webeagentur GmbH ACKNOWLEDGEMENTS5 1 INTRODUCTION .10 2 DEVELOPING COUNTRIES EFFORTS AND ACHIEVEMENTS IN ENERGY EFFICIENCY AND RENEWABLE ENERGY .132.1 POLICY DEVELOPMENT .142.1.1 Targets .142.1.2 Policy instruments .16 3NON-STATE AND SUBNATIONAL CONTRIBUTIONS TO RENEWABLE ENERGY AND ENERGY EFFICIENCY .203.1 CASE STUDIES .223.2 EXCERPT FROM GLOBAL 250 GREENHOUSE GAS EMITTERS: A NEW BUSINESS LOGIC .34 4 1.5- AND 2- DEGREE COMPATIBILITY: A NEW APPROACH TO CLIMATE ACCOUNTING .374.1 DEVELOPING 1.5- AND 2- DEGREE COMPATABILITY CONDITIONS .384.2 COMPATABILITY TABLES .414.3 PROJECT-LEVEL COMPATABILITY .50 5 DATABASE ASSESSMENT .565.1 AGGREGATED IMPACT .575.2 SELECTED BILATERAL INITIATIVES .595.3 SELECTED MULTILATERAL INITIATIVES .635.3.1 Multistakeholder partnerships .68 6 CONCLUSION .75 A ANNEX I: DETAILED DESCRIPTION OF MITIGATION IMPACT CALCULATIONS .77 ACKNOWLEDGEMENTS .4 FOREWORD .6 KEY MESSAGES .7 EXECUTIVE SUMMARY .8 +2°C TABLE OF CONTENTS References . 82 Glossary . 87 Acronyms . 88 Impressum . 896 Even if the pledges in the Paris Agreement on Climate Change are implemented, we will still not reduce greenhouse gas emissions enough to meet the goals. The UN Environment Emissions Gap Report 2017 states that for the 2°C goal, this shortfall could be 11 to 13.5 gigatonnes of carbon dioxide equivalent. For the 1.5°C goal, it could be as much as 16 to 19 gigatonnes. We urgently need more ambitious action to close these gaps. So, this latest 1 Gigaton Coalition Report helps to focus those efforts by quantifying the progress secured through renewable energy and energy efficiency. Electricity touches almost every aspect of our lives, yet nearly a quarter of the population still lacks access to safe, clean and affordable energy. Around the world, people continue to seek less polluting options for everyday needs like lighting, heating, water, cooking and sanitation. It should be no surprise then that renewable power capacity is growing faster than all fossil fuels combined, with a record increase of about 9% from 2015 to 2016. Particularly, when bi-products include better health, education, security and economic growth. Take cities, which are responsible for 75% of global greenhouse gas emissions. They can also be a big part of the solution, by adopting to energy efficient buildings, electric transport, cycle schemes and waste conversion. For example, in New Delhi, India, the health of local communities is severely affected by growing mountains of waste being dumped in open spaces. The city and private sector are tackling this by investing in waste-to-energy-plants. These reduce toxic emissions and transform waste into electricity. The plants community center offers employment and artisan training to about 200 local women. For Badru Nisha, this income has enabled her to save 70,000 rupees (US $1,100) and build a house for relatives in Bihar state. This program helps women build their skills and confidence, and provides them with some financial security and independence. This is just one of many stories inspiring local governments, mayors, businesses and civil society to join forces for significant environmental, economic and public health benefits. This report comes at a critical moment to support the growing number of non-state actors showing leadership to deliver the Paris Agreement. We hope it will motivate donors, initiatives and countries to build on their achievements, while inspiring more public and private sector stakeholders to join this global effort. FOREWORD H.E. Børge Brende Minister of Foreign Affairs Norway Erik Solheim UN Environment Executive Director and Under-Secretary- General of the United Nations +2°CKEY FINDINGS R INTERNATIONALLY SUPPORTED RENEWABLE ENERGY AND ENERGY EFFICIENCY PROJECTS implemented in developing countries between 2005 and 2016 are projected to reduce greenhouse gas emissions by 0.6 Gigatons of carbon dioxide (GtCO 2 ) annually in 2020. When scaled up using international climate financing commitments, these efforts could deliver 1.4 GtCO 2in annual reductions by 2020. R INTERNATIONAL SUPPORT FOR INVESTMENTS IN RENEWABLE ENERGY AND ENERGY EFFICIENCY IS VITAL FOR DECARBONIZATION, as this support provides key resources and creates enabling environments in regions critical to the global climate future. International assistance accounts for only 10% of all global renewable energy and energy efficiency activities, yet it has extensive impact for future climate mitigation. R DATA AVAILABILITY AND INFORMATION SHARING REMAIN A PERENNIAL CHALLENGE, one that is preventing countries and supporting organizations from systematically evaluating their works impact, although renewable energy and energy efficiency projects and policies are growing in developing countries. The 1 Gigaton Coalition has developed a database of about 600 internationally supported projects implemented in developing countries between 2005 and 2016. R EVALUATING PROJECTS, POLICIES, AND SECTORS COMPATIBILITY WITH GLOBAL 1.5°C AND 2°C CLIMATE GOALS IS ESSENTIAL TO LINK ACTIONS WITH LONG- TERM OBJECTIVES. This new method would enable bilateral and multilateral development organizations to measure the long-term impacts of supported projects. R NON-STATE AND SUBNATIONAL ACTORS HAVE TAKEN ON A LEADING ROLE IN SCALING UP CLIMATE ACTION. The case studies in this report show that low-carbon forms of development particularly city-based public private partnerships generate multiple co-benefits. These include improved environmental and human health, economic stimulus and employment creation, enhanced gender equality, and other societal gains that support the 2030 Agenda for Sustainable Development.