Business and Environment (Kansai Research Centre)

Seminar on Low Carbon Technologies at the Regional Environmental Center for Central and Eastern Europe (REC)

The Institute for Global Environmental Strategies (IGES), in cooperation with Regional Environmental Center for Central and Eastern Europe (REC) and the Ministry of the Environment of the Government of Japan (MOEJ), held the “Seminar on Low Carbon Technologies” on 6-7 July 2015 in Szentendre, Hungary. There were approximately 40 participants from 10 countries (Albania, Kosovo, Former Yugoslav Republic of Macedonia, Serbia, Turkey, Lithuania, Slovakia, Romania, Hungary and Japan), representing public institutions, research institutes, and the relevant private sector. This two-day event was organised in the context of transitioning to low-carbon technologies, following Japan’s continuous efforts to promote the reduction of greenhouse gas emissions in order to achieve the decarbonisation of economy with leading technologies. More specifically, the seminar served as a platform to introduce and exchange the views on prospective financial instruments including “the Joint Crediting Mechanism (the JCM)” as the Japan-led scheme to contribute to CO2 emissions reduction at the global level. In addition, the perspectives and needs on low-carbon technologies in Central and Eastern European (CEE) and South Eastern European (SEE) regions were shared, as well as experiences in Asia including Japanese initiatives for promoting low-carbon technology diffusion abroad.

Date 6-7 July 2015
Venue Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary
Organisers Institute for Global Environmental Strategies (IGES)
Regional Environmental Center for Central and Eastern Europe (REC)
Ministry of the Environment, Japan (MOEJ)
Languages English
Number of Participants Approx. 40
Related Link REC hosts seminar on low carbon technologies
Photos

Summary

Session 1 aimed at setting the scene for further discussions and creating common understanding on the importance of decarbonisation in Central and Eastern Europe (CEE) and South Eastern Europe (SEE). The focus was put on the electricity sector, and factors influencing investments, criteria for assessing the investments decisions were shared. Investment trends in Europe in energy generation, technology outlook (renewables, climate policy, nuclear technology) and their investment market impacts were introduced. Finally country specific examples of introducing low-carbon technologies (LCTs), electricity mix, total investment cost of new power plants in Albania and Montenegro were presented.

Session 2 aimed to create a common understanding on the importance of financing low-carbon technology diffusion in order to achieve further emissions reduction worldwide, and particularly in CEE and SEE. Representatives from CTCN, and Energy Community Secretariat shared their views and expertise on the topic. During this session various questions and statements about energy efficiency targets were made from CEE and SEE participants in relation to the energy efficiency targets for European Union.

Session 3 introduced the Joint Crediting Mechanism (the JCM) - a bilateral project based carbon market mechanism for global emissions reductions. The JCM is an initiative of the Japanese government pursuing both domestic emissions reductions target and global UNFCCC process goals through dissemination of low-carbon technologies. The representatives of the Ministry of Environment of Japan (MOEJ), Global Environmental Centre Foundation, and Institute for Global Environmental Studies provided the overview of the JCM itself, its methodologies, financing schemes, and technologies currently involved in the development and implementation of the projects under the mentioned mechanism. The JCM was presented both as a carbon reduction scheme on the inter-governmental level and real life mechanism already under implementation accumulating experience and lessons learned.

Since almost all the CEE and SEE participants were familiar with the flexible mechanisms under the Kyoto Protocol, thorough comparison with Clean Development Mechanism (CDM) and Joint Implementation (JI) was inevitable. The representatives of the Japanese side have underlined that there is a number of familiar approaches in the JCM in comparison with the Kyoto flexible mechanisms, however, at the same time there is a number of improvements making the JCM less bureaucratic and easier to understand and implement. The CEE and SEE participants demonstrated significant interest in the JCM mechanism as a channel of bringing climate friendly investments and technologies into their respective countries. Their main concerns regarded eligibility of the countries, availability of advanced technologies, opportunities opened for the potentially complicated projects in comparison with “low hanging fruits”, opportunities opened for the projects in the non-energy sectors such as agriculture, waste, and transportation.

Session 4 aimed at sharing various schemes and cases under the JCM, where representatives from the Asian Development Bank (ADB), MOEJ and the Japanese private sector shared their activities related to LCTs diffusion and the JCM supported projects. The presentations varied from examples of collaborations within case studies under the JCM to actions of the ADB financing JCM, and the diverse case studies from Mitsubishi Heavy Industries and JFE Engineering Corporation, having the main purpose of transferring Japanese experiences, the know-how and strengthening connections between Government representatives, private companies and Japanese research institutions. The participation of the SEE-CEE representative was quite noticeable in this session, as there were copious questions regarding the JCM, how the projects are implemented, how institutions are chosen as partners, and participants were keen to learn how they could promote this mechanism in their own countries.

Session 5, organised on the June 7, had two breakout sessions. Participants were divided into two groups and respectively discussed “Prioritised Low Carbon Technologies” and “Possible Cooperation for Technology Diffusion”

Breakout session summary Group 1- Prioritised Low Carbon Technologies

The purpose was to initiate an interactive discussion among participants to identify and explore the key areas for decarbonisation in CEE. Questions to be discussed were as follows:

  1. Which sectors/LCTs are of priority for decarbonisation in CEE and SEE? What are the technologies most demanded in the energy sector?
  2. How do we identify the specific stakeholders in each country who are interested in introducing LCTs?
  3. What are the experiences with the penetration of new LCTs? What are the main barriers to penetration?

The purpose of the session was to receive feedback for participating countries on sectors, which are considered as priority for LCTs. Main discussion points included identifying the main relevant stakeholders and the barriers of penetrating LCT. Participants reported that the main sectors include electricity production (share of coal and gas is still high in some of the countries), industry (e.g. steel production) and transport. Also, the building sector is essential in the sense of increasing energy efficiency. Stakeholders mostly interested in LCT dissemination are mainly politicians. Role of private and national companies is different depending on the market development. As main barriers of penetration, almost everyone mentioned the lack of financial sources among others.

Breakout session – group2 - Possible Cooperation for Technology Diffusion

The facilitator proposed the following two questions:

  1. What are the main challenges against the faster dissemination of LCTs? Is information readily available for dissemination?
  2. How can the experiences from the implementation of the JCM and/or City to City collaboration be used for promoting technology transfer of LCTs? And what kind of model can be feasible for cooperation regarding LCT transfer?

The discussion evolved around two clusters of problems:

  1. The barriers on the way of successful low-carbon technology diffusion in the CEE and SEE regions
  2. Factors enabling the above mentioned dissemination

Both discussions streams converged into the problem of capacity building for technology transfer. Existing capacities enable the transfer, and lack of capacities can become serious impediment of the way of LCT dissemination, and even information flows about the existing technologies. Various suggestions were made about enhancement of LCTs dissemination through the JCM, and participants concluded that identifying the sectors, enterprises, municipalities with demand and connect them directly to the possible suppliers of LCTs is vitally important.

Presentation Materials
Importance of Low carbon technologies in CEE and SEE
Dr. László Szabó, Senior researcher, Regional Centre for Energy Policy Research (REKK), Budapest Corvinus University
PDF (2.1MB)
Needs for technological developments and deployment to mitigate climate change
Mr. Edwin Aalders, Project manager, CTCN / DNV GL strategic partnership
PDF (1.1MB)
Energy Futures in South East Europe
Mr. Péter Vajda, Environmental Expert, Energy Community Secretariat
PDF (1.2MB)
Overview of the Joint Crediting Mechanism (JCM)
Mr. Takaaki Ito, Deputy Director, Office of Market Mechanisms, Global Environmental Bureau, MOEJ
PDF (1.3MB)
MOEJ’s support scheme under the JCM and its case studies
Mr. Sota Sekine, Senior Manager, Global Environment Centre Foundation (GEC)
PDF (2.3MB)
Introduction to JCM Methodologies
Mr. Akihisa Kuriyama, Researcher, Climate and Energy Area, IGES
PDF (966KB)
City to City Collaboration and its case studies under the JCM
Mr. Tomoki Uematsu, Researcher, International Cooperation Office, MOEJ
PDF (3.2MB)
Japan Fund for Joint Crediting Mechanism and Innovative Low Carbon Technology
Mr. Ryuzo Sugimoto, Environment Specialist, Asian Development Bank (ADB)
PDF (2.8MB)
Explanation of JCM Feasibility Study in Thailand & Applicable Low CO2 Emission Technology
Dr. Noriyasu Maehara, Senior Principal Engineer, Air Conditioning & Refrigeration Division Sales Department Machinery, Equipment & Infrastructure, Mitsubishi Heavy Industries
PDF (4.2MB)
JCM Case Studies: Perspectives from private sector
Mr. Gen Takahashi, Deputy General Manager, Global Business Development, JFE Engineering
PDF (3.8MB)
Innovation in Energy: Present challenges and opportunities
Mr. Christo Balinow, Business Development Manager for CEE Region, KIC InnoEnergy
PDF (5.5MB)

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