Clean Energy Transitions Programme
Annual Report 2018: Executive summary
Released 25 April 2019.
Launched in November 2017, the IEA Clean Energy Transitions Programme (CETP) is an ambitious effort to accelerate global clean energy transitions. The programme provides independent, cutting-edge support to governments whose energy policies will significantly influence the prospects for – and the speed of – the global transition towards more sustainable energy production and use.
Priority countries include Brazil, the People’s Republic of China (hereafter, “China”), India, Indonesia, Mexico and South Africa, as well as other IEA Association countries and key regions such as Southeast Asia, Latin America and Africa. Year 1 (2018) not only experienced a series of meaningful and ambitious successes (outlined throughout this report), but it also underscored the even greater potential for real-world impact in 2019 and beyond.
CETP origin and approach
The CETP aims to more fully leverage the IEA’s all-of-technologies expertise – built up over 40- plus years – to help reduce global greenhouse gas (GHG) emissions, achieve universal access to electricity and substantially reduce air pollution. Specific areas of focus were chosen in a disciplined manner – in other words, where does the IEA have strengths and capabilities that can materially make a difference in the real world? Six work streams were prioritised: i) data and statistics; ii) energy efficiency; iii) electricity; iv) policy advice and modelling; v) sectoral work; and vi) innovation.
Specific work programmes were created by iterative consultations with each priority country. The IEA was able to build upon long-standing relationships (including at the minister level and above) and to listen to what key challenges each country is facing in its own clean energy transitions. The IEA’s independent and credible all-of-energy expertise has particularly resonated.
CETP highlights from 2018
Key successes for CETP efforts in its inaugural year include more than 2 500 people trained; more than 20 high-level exchanges (ministers and other high-level decision makers); 22 major analyses conducted or enhanced by CETP; and a wide variety of ambitious, real-world impact, including:
- Brazil – informing policy discussions by sharing global experiences on national energy efficiency auctions, market tools and policy design; efforts to assess the impact of a growing share of variable renewables on energy planning and procurement; and an emerging effort on energy innovation.
- China – a thorough review of power sector reform (including publication of a major report in October 2018); expanding collaboration on China’s emissions trading system (ETS), especially the interaction of the ETS with complementary energy and climate policies; efforts to inform China’s long-term energy transitions strategy; and extensive training in energy efficiency and renewables statistics.
- India – extensive collaboration and trainings to improve energy data (involving more than 14 government agencies and 20 of 29 Indian states); a first-ever Energy Efficiency in Emerging Economies Training Week in India (involving 106 officials from 22 state governments and think tanks); tracking and mapping of energy innovation investment and policies across all key ministries; four regional workshops on power system transformation involving 185 energy professionals; joint analysis with an Indian think tank on clean energy investment and financing trends; and groundwork for an in-depth review (IDR) of India’s energy policies.
- Indonesia – strengthening the framework of energy efficiency policies, with a focus on the industry sector; extensive efforts with the Data and Information Centre (PUSDATIN) and others in the Ministry of Energy and Mineral Resources (MEMR) to improve data quality and coverage; and analysis of renewables costs.
- Mexico – finalising a review and assessment of the status of energy efficiency and the Internet of Things; exchanges on energy efficiency data and indicators, and on the benefits of energy efficiency in schools and hospitals; and collaboration on regional trading of capacity and electricity.
- South Africa – providing support to the Department of Energy in the development of a cross-agency energy and GHG reporting system; and energy efficiency efforts focused on policy monitoring and target setting.
- Global/regional efforts – global efforts included various joint learning and knowledge exchange efforts, especially on statistics and energy efficiency; cross-cutting innovation enhancement; two G20 reports, including one on Energy Transitions in G20 countries; Southeast Asia efficiency training involving 220 professionals from government, industry and academia; Southeast Asia clean energy investment and finance training for over 100 policy makers; and Latin America-focused efforts on improving energy statistics, energy efficiency and systems integration of renewables.
Year 1 of the CETP saw a concentration of efforts in Asia – India (19%) and China (17%). During 2019, it is expected that work in other key partner countries (Brazil, Indonesia, Mexico and South Africa) and regions (Africa, Latin America and Southeast Asia) will increase. Building upon the successful experiences of the Energy Efficiency in Emerging Economies (E4) Programme, the efficiency work stream represented roughly 38% of overall CETP efforts, followed by policy advice and modelling (24%) and electricity (15%).
Support and structure of CETP
The CETP is supported by 13 IEA Member governments – the United Kingdom (GBP 8 million; ~EUR 9 million); Sweden (50 million kronor; ~EUR 5.2 million); Denmark (25 million kroner; ~EUR 3.4 million up to 2020); Germany (EUR 1.33 million, from a total pledge of EUR 6 million); the European Commission (total pledge of EUR 3.5 million); the Netherlands (EUR 600 000 in 2018 with a total pledge of EUR 2.6 million); Switzerland (1 million francs; ~EUR 857 000 up to 2021); Canada (625 000 Canadian dollars [CAD]; ~EUR 412 000, with a total pledge of CAD 1 million); Japan (EUR 480 000 in 2018); Italy (two-year junior professional officer working at the IEA); Finland (EUR 45 000); New Zealand (EUR 10 000); and Australia.
The CETP’s overall strategy is informed by a Funders Strategy Group, which allows supporters to engage in an ongoing, strategic conversation. Within the IEA Secretariat, the CETP is set up horizontally, with each work stream led by the respective IEA division with subject matter expertise, along with support by respective IEA country officers. A central CETP co-ordination team helps to ensure efficient and effective operation across the entire programme.
In addition to directly benefiting priority countries (and their citizens), CETP activities have also benefited the entire IEA family and overall global energy analysis. The CETP has allowed the IEA to better reflect and incorporate accurate depictions of emerging economies’ energy systems into a wide variety of IEA analysis, including the World Energy Outlook (WEO) and various market reports. CETP efforts are also creating a wide variety of public knowledge goods – improved data, statistics, trends and analysis – that will help increase global understanding of clean energy transitions. Work under CETP is also providing a variety of mutually beneficial opportunities for the IEA family to learn from one another.
This full inaugural CETP report serves two primary purposes:
First, it outlines in much greater detail CETP efforts in 2018. Of particular note, country-specific mini-reports begin on page 21. It is hoped that each of these country-specific summaries will provide a useful summary of the key energy transition challenges, goals and opportunities faced by each priority country as well as a full summary of CETP activities from 2018.
Second, the report also looks ahead to CETP efforts in 2019 and beyond, where we will see IEA capacities further increase, especially in data and statistics, electricity and sectoral work. The year 2019 will also see additional focus on further enhancing partnership a wide variety of other critical actors (IEA Members, regional counterparts, local agencies and organisations, and other international groups).
In 2018, the CETP got off to a very promising start, but one needs only to look at the latest statistics to know that much work remains. 2018 witnessed the most-ever CO2 emissions released into our shared atmosphere – a 1.7% increase over 2017’s then-record level. And while 2018 saw a record number of people gain access to electricity globally, roughly 992 million people remain without this basic human necessity.
Building off its inaugural successes, the CETP looks forward to further enhancing the IEA’s ability to play as helpful a role as possible in accelerating global clean energy transitions. Our world depends on all of us being successful.