2 December 2014: Participants discussed the role of innovative models to support clean energy technologies and their international replicability, including in the context of shaping Intended Nationally Determined Contributions (INDCs), at a side event at the Lima Climate Change Conference. ClimateNet and the Swiss Association for Environmentally Conscious Management convened the event, titled ‘Implementing and Replicating Innovative Energy Transition Programs and Clean Technology Funds.’

Axel Michaelowa, ClimateNet, compared the effectiveness of regulatory, fiscal and market mechanisms to stimulate technology development. He stressed, inter alia, that: technology-support policies by governments have a long history of failure with only a few successes; successful technology development becomes more likely under crises and other external pressures; incentives require long-term stability to mobilize technology development; the Emissions Trading System (ETS) has facilitated technology diffusion but not innovation; and stable carbon taxes have promoted technology development.

Patrick Bürgi, South Pole Carbon, discussed the Swiss Technology Fund, which promotes innovative technologies that reduce greenhouse (GHG) gas emissions and resource consumption and support renewable energy and energy efficiency. Bürgi noted that: the Fund contributes to economic growth and climate change mitigation; a loan-guarantee mechanism can leverage significant investments in new technologies with limited public spending; and bottom-up and open application processes establish a level playing field among projects. He highlighted the quality of the loan-guarantee approval process as a key factor in the Fund’s success.

Stephan Hoch, Perspectives, provided insights on the Climate Investment Fund’s Scaling up Renewable Energy in Low Income Countries Program (SREP), focusing on case studies in Ethiopia and Kenya. He stressed, inter alia: the need for a diversified portfolio of activities, well-aligned with country needs and government strategies; and that trade-offs between performance indicators undermine consistency and transparency of mitigation impact.

Presenting on the Taiwanese private sector incubation mechanism, Chen-An Lien, Industrial Technology Research Institute (ITRI), focused on: climate finance flows and a mechanism to bridge the GCF, the Adaptation Fund, the Global Environment Facility (GEF) and developing countries, using ITRI as an example of an incubator.

During the discussion, participants addressed, inter alia: cut-off points where an innovation technology is considered too risky; technology risks in relation to implementation risks; and the Swiss Fund’s replication potential. [IISD RS ENBOTS Coverage] [IISD RS Coverage of Lima Climate Change Conference] [ClimateNet Website] [South Pole Carbon Event Announcement]