IISD Reporting Services Coverage of U.S. Center at COP 22 - Issue #8

[IISD Reporting Services]

Title: IISD Reporting Services Coverage of U.S. Center at COP 22 - Issue #8

Having trouble viewing this email? Please try our Browser Version     U.S. Center at COP 22 Issue No. 8 - Thursday, 17 November 2016 Events convened on Wednesday, 16 November 2016 Visit our IISD Coverage for Wednesday, 16 November 2016, at: http://www.iisd.ca/climate/cop22/us-center/16nov.html Auctions to Attract Investment Presented by the US Agency for International Development (USAID) The event was moderated by Matt Austin, USAID. He underscored that many countries are using renewable energy auctions and that feed-in tariffs have not kept up with renewable energy price decreases. Eric Postel, USAID, emphasized the importance of investing now in clean energy systems to achieve climate goals. He underscored the role of reverse auctions as an important instrument to foster competition and investment, and drive down costs. Highlighting renewable energy auctions in Mexico, Zambia, Afghanistan, Senegal and Ethiopia, he stressed that all countries can benefit from auctions. Scott Cantor, World Bank, illustrated the design elements and functioning of renewable energy auctions with a game. Participants were given chocolates and Cantor conducted a live descending clock auction where he engaged in purchasing a limited amount of chocolate with the public trying to sell their chocolate and maximize their benefit. He underscored the importance of bidding guarantees to ensure performance of auctions, and inclusion of auctions into the Nationally Determined Contributions (NDCs). Claudia Octaviano, National Institute of Ecology and Climate Change (INECC), Mexico, explained the electric market structure in Mexico after the recent reform of the energy sector. She highlighted that Mexico had reached very competitive prices for electricity supply thanks to renewable energy auctions. Ben Chee, NERA Economic Consulting, said that auctions are a very powerful tool, but just a tool. He noted the importance of contract design, performance-based purchases, long-term contracts, construction contingencies, and contract transferability in case of bankruptcy. Chee stressed the importance of bidding and construction guarantees to ensure project execution. In the ensuing discussion, participants addressed, inter alia: best practices to avoid underbidding by developers, including guarantees and contract design; perverse incentives from declining prices to fulfill purchase power agreements (PPAs); the need for specific regulation for small suppliers and distributed energy; the use of auctions for off-grid electrification; and the role of auctions for private procurement from large corporations. More information: www.usaid.gov Contacts: Matt Austin mataus...@usaid.gov North American Mid-Century Strategies for Low-Emission Development Presented by the White House Council on Environmental Quality The event, moderated by Laurence Tubiana, Climate Champion, focused on the progress the US, Canada and Mexico have made in developing their mid-century strategies for low-emission development, and their visions for decarbonization for the 21st century. She explained how the North American collaboration on low-carbon strategies provide a valuable example of the type of collaboration needed in long-term planning that will be crucial to achieve the goals of the Paris Agreement. Noting that the Nationally Determined Contributions (NDCs) agreed in 2014 remain insufficient to reach the goals of the Paris Agreement, and that the NDCs need regular revisions, she explained why low-emission mid-century strategies are at the core of the Paris Agreement. Stephen Lucas, Senior Associate Deputy Minister, Canada, presented on the Pan-Canadian Framework on Climate Change. Drawing attention to agreement on climate collaboration by the Heads of States of North America in June 2016 and Canada’s ratification of the Paris Agreement in October 2016; he focused on, inter alia, energy efficiency; short-lived carbon pollutants; and interprovincial and intercontinental cooperation on clean electrification. Noting that Mexico was one of the first countries to submit its strategy to the UNFCCC, Rodolfo Lacy Tamayo, Undersecretary for Environmental Policy and Planning, Mexico, drew attention to Mexico’s establishment of a carbon tax in 2014 and its intent to establish a carbon market by 2018 to link with sub-national markets in Quebec, California and Ontario. Underscoring that the country’s mid-century strategy will provide a long-term vision, and can be a tool and template to be replicated by other countries, Brian Deese, Senior Advisor to the US President, explained that the strategy does not contain prescriptive policy for any specific administration nor does it set targets or predict the world of 2050. He also explained possible scenarios for lowering total emissions in the US, such as enhancing carbon storage on its crop lands; and accelerating reforestation efforts in the US to create new markets for its forest industry. During discussions, participants addressed, inter alia: influence of mid-century low-emission development strategies on finance and investment community; modeling in the future US administration in the US’s mid-century low-emission strategy; green investment in infrastructure such as public transit; and the importance of collaboration and market signals in these “living” strategies. More information: www.whitehouse.gov/administration/eop/ceq Go.wh.gov/mcs Contacts: Christine Dragisic (Coordinator) dragisi...@state.gov This issue has been written by Bo-Alex Fredvik. The Digital Editor are Liz Rubin and Diego Noguera. The Editor is Leila Mead <le...@iisd.org>. The Director of IISD Reporting Services is Langston James “Kimo” Goree VI <k...@iisd.org>. Funding for coverage of the U.S. Center at COP 22 has been provided by the US Department of State. The opinions expressed in this issue are those of the author and do not necessarily reflect the views of IISD and funder. Excerpts from this issue may be used in non-commercial publications only with appropriate academic citation. For permission to use this material in commercial publications, contact the Director of IISD Reporting Services at <k...@iisd.org>. Electronic versions of issues of this issue can be found on the IISD Reporting Services website at http://www.iisd.ca/climate/cop22/us-center/ You are currently subscribed to enb as: arch...@mail-archive.com View enb Forum            Membership Options / Unsubscribe Subscribe to all other IISD Reporting Services' free newsletters and lists for environment and sustainable development policy professionals at http://www.iisd.ca/email/subscribe.htm