Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance - SNAPFI

Current Project

Department

Climate Policy

Project Management

David Rusnok, DIW Berlin

Project Period

July 1, 2019 - June 30, 2023

Funded by

Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)

In Cooperation With

Center for Sustainability Studies of Fundação Getulio Vargas (Brazil),
Energy and Resources Institute (India) in cooperation with Indian Institute of Technology Delhi,
Climate Change Center, Institute of Technology Bandung (Indonesia)
University of Cape Town (South Africa)

Overview

The project researches the implementation of Nationally Determined Contributions (NDCs) in Brazil, Germany / EU, India, Indonesia and South Africa, by research-based policy advice and capacity building. The project will especially analyse policy and financial instruments that support the just transition to a climate-friendly pathway and that can contribute to the mobilization of private and public finance for climate friendly investments. The project team plans to elaborate five country studies per year and one synthesis reports for policy decision makers. Country studies will be discussed at national workshops with relevant stakeholders. The studies will focus on key sectors such as energy, industry and land-use. The project will also elaborate one topic of common interest relevant to the interface of climate-finance and policies within an annual cross-country study and discuss results at international workshops. The project started in July 2019 and has a duration of 4 years.

 Objectives

The project explores how international climate finance can support the implementation of NDCs in emerging economies and EU-Countries through comparative analyses and a better understanding of the interface between finance and policy implementation. This enables decision-makers in the target regions to implement their NDCs through efficient effective mitigation and adaption policies, supported by national and international financial instruments. The cooperation among five research intuition facilitates an effective implementation of the NDCs, provides space for increased ambition levels and stimulates private and public investments in the low-carbon and climate resilient economic transformation. The envisaged impact is an improved GHG reduction effect as well as a contribution to development policies in the five project countries.

This project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservationand Nuclear Safety (BMU) supports this initiative on the basis of a decision adopted by the German Bundestag. Find more information about the IKI here

Events

The investment challenge to decarbonize global economies in terms of mobilizing additional investment and restructuring existing portfolio is unprecedented, especially for emerging economics facing other numerous, development-related challenges. The main questions are how to raise public and private capital to finance the transition in the most impactful way as well as how to structure international climate finance to support such processes.


The workshop as part of the IKI funded project “Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance” (SNAPFI). The project aims to discuss the lessons learned from the European Structural and Investment Funds (ESIF) use for international climate policy and how to assess them. The main objectives of the workshop are:

  • Understand how EU-level finance impacted climate policy development in selected EU countries,
  • Identify the features of ESIF programming and implementation in selected countries that enabled the transformative effects achieved so far, and
  • Discuss lessons learned from the ESIF use for international climate policy.

The IKI funded SNAPFI project started in June 2019 and aims to advice how international climate finance can support the implementation of National Determined Contributions (NDCs) in emerging economies. To achieve this, it conducts comparative analyses and enable the exchange with lessons learned between countries. In this regard, lessons learned from European countries can help illustrate how long-term stable climate policy framework could be formed. Many challenges, which occur in Europe, in particular in Central and Eastern Europe with lower welfare levels than in Western Europe, have relevance in emerging countries too.

Presentations:

Richard Filcak: Evaluation of the Progress & Challenges Ahead in the Slovak Republic (PDF, 391.83 KB)

Rimantas Zylius: Using ESIF in Lithuania: programming and priorities (PDF, 164.82 KB)

Valius Serbenta: Modernization Program for Multi Apartment Buildings in Lithuania (PDF, 2.31 MB)

Aleksandra Novikova: Setting the scene: project rationale and the ESIF analysis methodology (PDF, 353.13 KB)

Marina Olshanskaya: Lessons Learnt: financing climate actions from EU structural funds and recommendations for emerging economies (PDF, 207.7 KB)

Boriss Knigins: Cohesion policy after 2020 – investments in climate and energy (PDF, 0.58 MB)

Workshop Agenda (PDF, 0.69 MB)

Workshop Summary (PDF, 190.71 KB)

The UCT team held a highly successful first national workshop on 6 November 2019. The purpose of the workshop was to get early input to the country case study. Participants included decision-makers from National Treasury, development finance institutions, retail and investment banks, banking association,  civil society, NBI staff and UCT researchers. The workshop was co-hosted with National Business Initiative (NBI), which is a is a voluntary coalition of companies, working towards sustainable growth and development in South Africa. The workshop was held in Sandton, the financial heartland of South Africa.

Samantha Keen from the UCT team introduced the SNAPFI project, after which Prof Harald Winkler spoke to the outline of the case study on ‘climate finance to transform energy infrastructure as part of a just transition in South Africa’.  The raised questions including: How can climate finance accelerate a phase-out of coal, as part of a just transition? What is the role of climate finance in accelerating a phase out of coal ?  What institutional innovation in ownership models would support renewable energy?  In the wide-ranging discussion, participants offered their perspectives on these questions. They also raised additional issues – relating to the baseline, additionality, the desirability of a special purpose vehicle, strategic issues in a just transition (JT), what a JT fund might provide, and much more. These inputs gave the UCT team valuable guidance that will enrich the case study. In closing, the team indicated that a further workshop will be held to present results of the case study (by mid-2020) and that participants will be kept informed.

The case study and workshop are important parts of work in South Africa, as part of an international research project SNAPFI (“Strengthen national climate policy implementation: Comparative empirical learning & creating linkage to climate finance”), supported by IKI.

Workshop on November 6th 2019 in South Africa
Photo: University of Cape Town

Workshop on November 6th 2019 in South Africa
Photo: University of Cape Town

The project`s Kick-off Workshops took place 18th -20th September 2019 in Berlin. Participants from all partner institutions discussed - among other topics – the content of the first-year country and cross-country studies.

The 1st Kick-off Workshop, September 18th - 20th in Berlin
Photo: DIW Berlin

Documents and Publications

The first set of Country Reports will be delivered 3rd Quarter of 2020

Team

DIW works with renowned partners in the target countries: the Center for Sustainability Studies of Fundação Getulio Vargas (Brazil), The Energy and Resources Institute (India) in cooperation with the Indian Institute of Technology Delhi, the Climate Change Center, Institute of Technology Bandung (Indonesia) and the University of Cape Town (South Africa).

In addition, the team will be supported by Institute for Climate Protection Energy and Mobility (Germany), Climate Strategies (UK), DIW Econ (Germany), New Climate Institute (Germany), Vivid Economics (UK).

In the partner countries, the research project has the support of those Ministries, that are responsible for the coordination of the NDC,

  • In India: Ministry of Environment, Forest and Climate Change
  • In Indonesia: Ministry of National Development and Planning
  • In South Africa: Department of Environment, Forestry and Fisheries.
  • In Brazil: Ministry of Economics (tbc)

Contact

David Rusnok, DIW Berlin, drusnok@diw.de, +49 30 89789 481 (general coordination)

Dr. Nils May and Heiner von Lüpke, DIW Berlin (coordination cross country studies)

Dr. Alexandra Novikova, Institute for Climate Protection Energy and Mobility, aleksandra.novikova@ikem.de (lead European case study)

Contact