October 20, 2017

Climate Friendly Materials Platform

Workshop on Policies to Stimulate Climate Friendly Innovation in the Materials Sector

Date

October 20, 2017

Location

DIW Berlin im Quartier 110
Mohrenstraße 58
10117 Berlin

Speaker

Henry Derwent, Roman Doubrava, Gregory Nemet, Araceli Fernandez Pales, Carl De Maré, Ilian Iliev, Heleen de Coninck, Gareth Roberts, Olga Chiappinelli, Karsten Neuhoff, Jörn Richstein, Puja Singhal

3rd Workshop, Climate Friendly Materials Platform

Introduction  

Karsten Neuhoff (DIW Berlin) and Diana Quezada (Climate Strategies)

Session I: How can public policy makers decide on what technologies/projects to support?

Chair: Henry Derwent (Climate Strategies)

We want to explore, how programs/projects can be designed to achieve the desired learning benefit – both for technology providers and for users. This involves answering the question on how to make decisions on awarding support - both in terms of criteria and of governance of the decision process - to reflect for example the potential for global diffusion of low-carbon technologies or the transformation potential as anticipated for example in sector road maps? Relevant sub-questions include the followings: What are relevant issues at different stages of innovation process/technology readiness levels (e.g., information asymmetries, risk of collusion, risk of pork barrel etc.)? How does the structure of the award mechanism (e.g., single-stage vs multi-stage; between-technology vs. within-technology competition) impact on incentives? How should funding at different levels (e.g., European vs national) be coordinated?

Policy experience with criteria and governance options for innovation support

Presentation: Roman Doubrava (European Commission, DG Clima)
How can public policy makers decide on what projects to support? (PDF, 0.87 MB)

Criteria for innovation support

Opening comments: Gregory Nemet (University of Madison-Wisconsin) and Araceli Fernandez Pales (International Energy Agency)

Governance options for innovation support

Opening comment: Olga Chiappinelli (DIW Berlin)
Governance of innovation funds award - Insights for award design (PDF, 202.39 KB)

Session II: How to design public financial support to stimulate private innovation investments that contribute to transformation?

Chair: Karsten Neuhoff (DIW Berlin)

We envisage discussing a set of the questions on this topic, including the following: Can funding schemes topping-up private investments rely on private commitment and thus reduce public information requirements (to enhance reliability for commercial projects)? Could they then also contribute to diffusion of learning experience beyond the specific commercial interest? How financing instruments can be results-oriented to ensure innovation being on track with long-term sustainability strategies? What financial instruments are most appropriate for what type of projects? How far should funding go (first, second, third of a kind…)? Where should it begin and end (TRL-wise)? How do support programs work together and overlap (e.g. < TRL6 is in Horizon2020)?

Opportunities and limits of private innovation finance

Opening comment: Carl De Maré (ArcelorMittal)

Relative shares of public and private financing

Opening comments: Jörn Richstein (DIW Berlin) and Ilian Iliev (Cambridge IP)

Presentation: Jörn Richstein (DIW Berlin)
Carbon contracts and up-front public co-funding (PDF, 146.46 KB)

Instruments of public innovation finance for pilots/demonstration projects

Opening comment: Puja Singhal (DIW Berlin)
Public Innovation Finance for Pilots/Demonstration Projects (PDF, 261.57 KB)

Session III – How can monitoring and ex-post evaluation of funds help to incentivize innovation?

Chair: Heleen de Coninck (Radboud University)

This last session aims at reviewing and discussing experiences with monitoring and ex-post evaluation of innovation funds. Monitoring of ongoing funded projects and ex-post assessment of performance are needed first, to give policy-makers and public and private funders the confidence that resources are spent as planned and in the most efficient way; second, to provide proper incentives for efficiency and performance in the project execution.

Opening comment: Gareth Roberts (EU Court of Auditors)

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