The Challenge of Low-Carbon Development - World Bank Internet ...

Table 6.1Summary of Sectoral Findings (continued)Sector Intervention Direct impacts Leverage and diffusionimpactsCarbon financeCarbon finance has little impacton bankability of wind andhydropower projects. Moreover,the stated rationales for the useof carbon funds often refer tobarriers that are best addressedwith greater leverage throughpolicy reform (such as unreliablepower purchase agreements)rather than at the project level.Thirty-five percent ofWBG carbon financeprojects claimed somedegree of technologytransfer.Monitoring needs and issuesCarbon project monitoringprovides valuable feedback. Forexample, poor performance oflandfill gas projects was detectedand corrective actions taken. GEFor other funds could enhance thisde facto monitoring system.Solar homephotovoltaicsCarbon finance has significantimpact on bankability of projectsthat reduce methane emissions.Performance of carbon projectshas often been poor (lowerproduction of permits thanexpected).Resource Siting makes a huge differencesurveysin economic returns because ofspatial variation in wind, water,geothermal, and so forth. Therehave been modest investmentsby the Bank in resource surveys.Impact not evaluated.Policy reform Standardized smallpower purchase agreementshave reduced thecosts of entry of smallhydropower producers inSri Lanka, with significantcumulative impact.Regulatory reforms inChina, Mexico, and Turkeyhave catalyzed windinvestments.Subsidies Subsidies increase household Quality-contingent subsidiesdemand; impact not wellfor manufacturersmeasured.boost competition andquality, and reduce priceat the national level.No global impact onprice; scale was too small.Microfinance Specialized microfinanceinstitutions were able to supportSHS buyers in Bangladesh andSri Lanka.How useful are surveys?Can remote sensing providecontinually updated and improvedinformation on wind and waterresources?What is the fiscal impact andinvestment response of feed-intariffs or renewable portfoliostandards?Longevity and utilization of thesolar home systemsManufacturing qualityMarket penetrationGeographical extent of the electricgrid and connection rate within thegrid (to assess market size for photovoltaic);price elasticity of demand.(Continued)Conclusions and Recommendations | 85