SCP and Climate Change- JICA’s Cases-

DAC-UNEP Workshop on Sustainable Consumption and Production for Development

Tomonori SUDO, Ph.D

Office for Climate Change

Japan International Cooperation Agency (JICA)

Facts & Figures of JICA• Staff:

– 1,664 staff. They are supplemented at any one time by thousands of Japanese experts and young and senior volunteers on both short-term and long-term contracts.

• Operational Volume: – It is the world’s largest bilateral development assistance

agency with a size of estimated $10.3 billion dollars.

Comparison with other Major Donor Agencies

World Bank

Number of Staff 8,600

Volume of Operation US$19,634mil

Asian Development BankNumber of Staff 2,443

Volume of Operation US$6,851mil

USAIDNumber of Staff 2,227

Volume of Operation US$3,976mil

New JICANumber of Staff 1,664

Volume of Operation* US$10,280mil

Exchange Rate used: JPY100.10/US$ (IFS rate for 2008 March end)

*estimated based on FY2008 budget (full year)

Economic Development

Poverty

Industrialization

Forest

Conservation

Biodiversity Agriculture

Climate Change

Health &

Sanitation

Use of fossil fuels

=Increasing GHG Emission

Environmental SD Economic SD Social SD

Rural

Development

Urban

Development

Water Resource

Management

Development Agenda and Climate Change- Toward “Low Carbon Society”

Transport

Energy

Education

Waste

management

Secure

Developmental

benefit

Toward Low

Carbon

Society

Long-term vision

Climate change benefit as co-benefits of developmentCooperation for Sustainable Development from various levels

Projects

Programs

Sector

Policies

Development

Plan

Integrate

Climate

Change

Concerns

into

Development

Actions

Donor’s

Assistance

Financial

Assistance

Technical

Assistance

Generating

Developmental

benefit

GHG Reduction as

co-benefit

5

Identification of factors to

increase CO2Emission by

economic growth and its

forecast

Design of Social –

Economic system with

high resource

productivity

Quantification of possible

reduction of energy

consumption by recycle

use and/or cascade use of

resource

Possibility of CO2Emission

Reduction by alternative

resource use (esp. focus

on Renewable resources)

Breakdown of Kaya Identity in resource consumption aspect

CO2Emission＝POP× × ×GDP Energy Consumption CO2Emission

POP GDP Energy Consumption

CO2Emission Resource Cons Energy Cons CO2Emission

GDP GDP Resource ConsEnergy Cons

＝ ×

×

Possibility on Compact

city,

“Rental/Lease society

Service economy, use of

ICT

Resource recovery from

waste and stocks

International division of

labour and International

material cycle

Alternate fossil

fuels by use of

biomass, energy

from waste

Factor analysis of

CO2Emission focus on

resource consumption

Analysis on possible

Leapfrogging development

path for dev’ing countries

Hypothesis：「Society with high resource productivity≒Low Carbon Society・Seeking possible style on production and consumption, Instead of consumeristic development.

・It is fundamentally recognized that increase of energy consumption and GHG emission in the lifecycle

has been led by Increase of production/consumption of goods, that is, resource saving and low carbon

development are deeply related.

Toward Low-Carbon Development

JICA’s approach

Policy Level

Institution

Level

Program/Project

Level

JICA’s approach

Towards Sustainable

Consumption & ProductionFinancial

Assistance

Technical

Cooperation

Top Down approach

(Policy formation &

implementation)

Bottom-up effort

(Program/Project activities)

To generate “co-benefit”

Co-benefit!

Policy

ProjectDevelopmen

t Objectives

Project

Implementation

Increase of

power supply

GHG

Reduction

New Technology

+

ODA

（Finance and T/A）

Needs to

Increase

Power supply

Construction

of New Power

Stations

Increase of

Power Demand,

Rural

Electrifications

Developmental

benefit

Mitigation of

Climate Change

(Global Benefit）

Could it reduce

GHG?

<Sample case>

Introduce

climate friendly

technology

New Technology

+

ODA

（Finance and T/A）

Pillar 1: Mitigation

1.1: LULUCF

(Land Use, Land Use

Change and Forestry)

-Reforestation

-REDD

-Forest management

1.2: Energy

-Power plant

-Industry, domestic and

commercial

-Others

Pillar 2: Adaptation

Pillar 3: Cross-cutting Issues

3.1:Understandin

g the Impact of

Climate Change

3.2: Mainstreaming

Climate Change in the

National Development

Program

Example of the Policy Matrix formulated based on the policy dialogue

2.1: Water

Resource

Management

2.2: Water

Supply and

Sanitation

2.3: Agriculture

3.3: CDM 3.4: Co-Benefit3.5: Fiscal

Incentive

3.6: Early

Warning System

Monitor, Review and advice

Steering Committee

Partner country’s

Government

Donors

Financial Assistance

(General Budget

Support, Project

Loans, Grant

Assistance) ,

Technical

Cooperation

Coordination among

line ministries

Case program (1): Top-down approach

(Policy formation & implementation)

Case program(2) Demand side approach

JICA WB/GEF Gov of

Australia

EGAT DSMO• Implement Demand Side Management Program

-High energy efficient home appliances, light

-Green Building Program

-Thermal Energy Storage

-ESCO

Co-finance

US$25m US$9.5m US$5.4m

<Promotion of Electricity Energy Efficiency Project>

– Project objective:

• To build sufficient institutional capacity in Thailand’s

power sector, and energy-related private sector, so

as to deliver cost-effective energy services

throughout its economy,

• To pursue policies and implement actions which

would lead to the development, manufacture and

adoption of energy efficient equipment and

processes within Thailand.

– Impact of the Project

• Approx 4,160 GWh of total energy consumption

were saved

• Over 3 million t-CO2 was reduced.

(During 8years project period)

<The Project on the Practical Energy Management

Training Center>

• Management system for Practical Energy Management

Training Center

• State examination system for PRE

• Pre-examination training courses

• Implementing structure for pre-exam training

• PRE support system

Current Situation of Energy Sector in Viet Nam

Rapid Increase of Energy consumption since 1986

→Appx 8% of GDP growth

（Energy consumption marked 6 times from 1990 to 2006 due to its Economic growth）

→This may continue because of its rapid economic growth

（Energy consumption in 2025 is expected to be 5 times larger than that of 2006)

Estimated Energy consumption in Viet Nam （2005-

2025）

Trend of Energy Consumption in Viet Nam （1990-

2006）

k TOEk TOE

年

（Ref）JICA Survey on National Energy Master Plan

年

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2005 2010 2015 2020 2025

運輸分野

産業分野

その他

BAU case

年0

5,000

10,000

15,000

20,000

25,000

30,000

1990 1992 1994 1996 1998 2000 2002 2004 2006

運輸分野

産業分野

その他

6倍1990年： 4 k TOE2006年： 25 k TOE

年

5倍2006年：25k TOE2025年：118k TOE

Transport

Industry

Others

Transport

Industry

Others

Case project(3) Production side approach

<Viet Nam: EE &RE promoting project (EEREP)>

JICA’ assistances （Institutional development, awareness raising,

financial assistance & capacity development）

EE master Plan・Institutional development・CD through Universities・CD for EE Center

EEREP・Mid-Long term financial assistance in EE/RE・Awareness raising to private sectors

Issues on promotion of EE/RE in Viet Nam＝Lack of institution, awareness, finance and capacity

Special Program responding Climate Change（SP-

RCC）Assistance for Institutional development such as legal framework for EE, preparation of RE master plan

CD for VDB

Development of capacity for Loan appraisal of VDB

ODA LoansTC

Case program(3) Production side approach

<Viet Nam: EE &RE promoting project (EEREP)>

Outline of EEREP

Vietnam

Dev Bank

（VDB）

JICA

ODA Loan

（JPY4billion）

Gov of Vietnam

VDB

Branch

Objective：Assist implementation & promotion of EE/RE by private sector in

Viet Nam by providing Mid-Long term Finance

Lending

RepaymentRepayment Target

enterprises

=SOEs, SMEs

investing in

EE/RE project

Support for CDM Project identification

ＣＤＭ

事業

CDM

CDM

activity

MONRE

（ＤＮＡ）List of sub-

projects

Support for update

Consulting services

TCCD of VDB for appraisal

List of EE

equipments

Awareness raising(Seminars)

EE Diagnosis

EEREP

Institute

of EnergyEE Center

MOCI

TCEEMP

Conclusion

• Green Growth/Economy and SCP can be achieved in a same way.

• Approach through development cooperation is a key for implementation of SCP. – Paris Declaration & Accra Agenda for Action are fundamental

concepts

• Ownership of developing countries

• Alignment (Development policy, Country system-Green public expenditure & Green Procurement)

• Capacity Development

Integration of SCP into development policy is needed.

• Well-coordinated Policies (Top-down) & Programms/projects (Bottom-up) can change both consumption & production patterns in sustainable manner.