CDC Climat

Energy transition vs competitiveness, Poland vs Europe: a CDC Climat study sheds light on the debate

Maria Scolan — 2013-04-22T07:24:18Z

At the beginning of April, CDC Climat Recherche and the IDDRI presented the Polish authorities with a study on the country's competitiveness and European climate and energy policy.

What would you do if you were the only European country enjoying rapid growth, your territory was brimming with coal and you were concerned about the risks of importing gas from your large Russian neighbour? Perhaps, like Poland, you would be inclined to use your own energy, despite its high carbon emissions, to protect your country's competitiveness. Consequently, you would block all progress in the European climate and energy policy negotiations.

But to what extent does Europe's energy and climate transition policy really put Poland at a higher risk than other European countries of seeing its competitiveness fall? To investigate this question, the European Climate Foundation in Poland commissioned research from CDC Climat Research and the IDDRI. Main conclusions: in Poland since 2000, low-carbon intensity sectors have seen rapid growth, and other sectors have been able to make major reductions in their emissions thanks to technical progress. Polish fears about its competitiveness in Europe are therefore broadly unfounded.

On April 4th, the authors presented these results to representatives of the Polish Ministries for the Economy and the Environment and representatives from the World Bank. The Polish authorities found the presentation very interesting. CDC Climat hopes to have contributed to progressing European negotiations through this work, which was also presented to the French negotiators.

The study, "A Static Assessment of Carbon Leakage Risks in Poland" by Oliver Sartor (CDC Climat Recherche), Thomas Spencer (IDDRI) and Guillaume Chevaleyre (CDC Climat Recherche) will be published in the next few weeks.

Financing for energy renovation in private sector homes: study project to be led by Pierre Ducret

Maria Scolan — 2013-04-08T10:48:32Z

As part of the energy renovation plan announced by the French President, the government has charged Caisse des Dépôts with designing financing tools for energy efficiency in housing.

The project will be managed by Pierre Ducret, chairman of CDC Climat.

Its aim is to propose ongoing financing tools which will render renovation projects more attractive, to meet the French government's ambition to bring 500,000 homes annually (including 380,000 in the private sector) into line with the most stringent energy consumption standards from 2017, while controlling the cost to public finances.

The working group created by Pierre Ducret within CDC Climat and Caisse des Dépôts will submit an initial report in June 2013.

US Energy-Climate policies: How will Europe be affected?

Maria Scolan — 2013-03-06T13:25:27Z

A few days after the State of the Union Address, where President Obama made the climate one of the United States' political concerns, this conference, which was organised by the HEC Energy and Finance Chair, Deloitte and Société Générale, in collaboration with CDC Climat, was perfectly timed for setting out the interactions between both continents in the energy sector.
Download the conference summary at the bottom of this page.

In his opening words, Jean-Pierre Sicard, Deputy CEO of CDC Climat, underlined the importance of these issues for Europe at a time when there is a national debate on energy transition in France, and when the European Union is discussing ways to improve its climate and energy policy tools.

Richard H. Jones, the Deputy Executive Director of the International Energy Agency (EIA) wondered what the consequences of the shale gas revolution in the United States will be for the global energy market (see his presentation below). Thanks to the promise of regained energy independence, so to speak, the United States is turning the global energy trade upside down. It could become the world's largest oil and gas region by 2020, and a net exporter of gas, and even of oil by 2030. This new reality has consequences for Europe. Indeed, falling consumption of coal, which is less competitive and more polluting, is enabling the United States to export its excess production to Europe, where coal has toppled gas, which is more expensive as its price in Europe is tied to the oil price.

For Denny Ellerman, Head of Research at the European University Institute, the major difference between the two continents is the fact that there is a climate policy in Europe and none in the United States. Although US greenhouse gas emissions are currently falling, it is the consequence of substituting gas for coal, and not the result of political will, so nothing guarantees such a decline in the future.

Yves-Louis Darricarrère, President Upstream, Total, underlined that multinational companies needed an international agreement for combating climate change to be reached which would involve the countries with the highest GHG emissions like China and the United States. Conversely, the European Union's unilateral climate initiative will remain useless if there are no equivalent measures in the rest of the world, due to the simple fact that the emission of any tonne of CO2 increases the level of concentration of GHGs in the atmosphere, regardless of the place where the CO2 is emitted, and to the fact that the EU's share of GHG emissions accounts for only 20% of global emissions.

The changing rules in the global energy game, driven by the extraction of shale gas in the United States, are having a fundamental impact on European competitiveness. Businesses that consume significant amounts of gas benefit from a competitive advantage in the United States as US prices are five times lower than those in Europe. Conversely, their European counterparts, like the steel, petro-chemicals, aluminium, cement, and chemicals industries are affected by relatively uncompetitive gas supplies. For Olivier Imbault, Vice President, European Industry Affairs, Air Liquide, this negative impact is resulting in a net loss of competitiveness which is exacerbated by Europe's energy dependence and dependence on price changes. The competitiveness of European businesses must be supported by foreseeable, forward-thinking European legislation which promotes low greenhouse gas emission investments over the coming decade.

Public consultation on structural options for the EU Emissions Trading System:

Maria Scolan — 2013-03-06T13:00:47Z

CDC Climat's answers - News / A_la_une

Renewable energies in the Mediterranean: the United Nations approve the programme backed by CDC Climat Asset Management

Maria Scolan — 2013-01-23T11:13:02Z

A useful tool for helping to structure the financing of RE projects in Morocco, Egypt, Tunisia, and Lebanon

The United Nations Framework Convention on Climate Change* has certified the Programme of Activities for Grid Connected Renewable Energy (RE) in the Mediterranean Region drawn up by CDC Climat Asset Management, a subsidiary of CDC Climat and Proparco (AFD Group).

This programme involves four countries on the Southern shore of the Mediterranean, i.e. Morocco, Egypt, Tunisia, and Lebanon. The RE projects, (wind, solar, and concentrated power) that will qualify for this programme will automatically obtain United Nations certification for any reduction of carbon emissions that they may generate.

More broadly, this programme, which is based on the stringent methods drawn up by the United Nations, is a very useful tool for helping to structure the financing of RE projects in these countries.

It is the result of dialogue with and of a desire shared by the institutions and government authorities of the countries involved, which are still heavily dependent on fossil fuels, despite their substantial renewable energy potential.

*international organisation for the implementation of treaties to combat climate change (Kyoto Protocol)

International climate negociations: the Doha conference conclusions

Maria Scolan — 2013-01-07T10:47:24Z

Read the CDC Climat's research brief - News / A_la_une

Best wishes from CDC Climat

Maria Scolan — 2013-01-02T17:25:26Z

for 2013, the year of energy transition

V. Kandinsky (Improvisation 7 - 1910 Tretyakov Gallery, Moscow)

DPD wins the HANSE GLOBE 2012, Hamburg's prize for sustainable logistics.

Maria Scolan — 2012-12-27T15:44:08Z

The prize is the recognition of DPD's commitment to carbon-neutral parcel shipping. CDC Climat is proud to be DPD's carbon offsetter.

Under its Total Zero commitment the international parcel and express service provider DPD, a GeoPost subsidiary, provides carbon-neutral shipping for all parcels – at no extra cost.

GeoPost's CO2-neutral shipping is based on three complementary components: accurate measurement of CO2 emissions, cutting those emissions which are avoidable and compensating for those which are unavoidable (offsetting).
CDC Climat, GeoPost offsetter, selected for GeoPost high quality emissions certificates coming from environmental projects which make a proven contribution towards reducing global CO2 emissions. Examples of the projects supported by DPD are a national biogas plant programme in Cambodia and the reforestation of devastated forest areas in Colombia.

Doha: CDC Climat puts energy efficiency on COP18 agenda

2012-12-04T18:36:43Z

On November 28th 2012, CDC Climat Research organized, with the International Partnership for Energy Efficiency Cooperation (IPEEC) and HEC Paris in Qatar, a side event at the Conference of Parties (COP 18) in Doha, Qatar on financing energy efficiency.

Introduced by Professor Antoine Hyafil (HEC Paris in Qatar), the workshop discussed different ways of financing energy efficiency. Thibaud Voita (IPEEC) examined the role of public programs in financing energy efficiency from the experience of India in terms of energy saving certificates to dedicated lending program for SMEs and state funds for energy savings.

Igor Shishlov (CDC Climat Research) discussed how Joint Implementation (JI ), a project mechanism for GHG emissions reduction, can be used as a tool to leverage private capital to improve energy efficiency. It was pointed out that JI can finance all types of energy efficiency projects (industrial, agriculture, buildings) with a leverage ratio of private capital estimated at $8 for every dollar of carbon revenue incentive. Finally, Jan-Willem Van de Ven (EBRD) presented the operation of EBRD's funds dedicated to sustainable energy that also mobilize private investment partners. These loans of more than €2.4 billion contributed to the reduction of 3.1 million tons of CO2 and the economy of 7.8 million MWh.

“Instruments to curb global warming: Recent developments”

2012-11-14T11:23:56Z

Download the presentation of the seminar organized by CDC Climat Research-Cremerap and PSE on the 4th October.

CDC Climat Research, alongside the Center for Economic Research and its Applications (Cepremap) and the Paris School of Economics (PSE) organized on the 4th October a seminar entitled “Instruments to curb global warming: Recent developments”

The seminar was introduced by Daniel Cohen, Director of Cepremap, and Benoît Leguet, head of Research at CDC Climat, and comprised presentations by Roger Guesnerie (Collège de France et PSE), Bard Harstad (Northwestern University), David Martimort (PSE), Stephen Salant (University of Michigan), Reyer Gerlagh (Tilburg University), Thomas Michielsen (Tilburg University), Julien Daubanes (ETH Zurich), and Jérôme Pouyet (PSE).

Full program

Presentations:
Julien Daubanes
Reyer Gerlagh
Bard Harstad
David Martimort
Thomas Michielsen
Jerome Pouyet
Roger Guesnerie
Stephen Salant