Financing the Energy Transformation - Civic Exchange

Financing the Energy TransformationCivic Exchange’s 12th Energy ForumBackgroundCivic Exchange organised its 12th energy forum on 9 November 2009, with a focus on discussing how tofinance energy transformation. The negotiations for the post-Kyoto multilateral arrangements beyond2012 point to the need for an energy transformation to create a lower or zero carbon future. While varioustechnologies are available to drive down emissions, the issue is how these can be financed. Speakers andcommentators from the banking, investment, power utilities and finance sectors were invited to share theirperspectives and insights, including:Josh Carmody, Senior Project Specialist (Clean Energy & Climate Change), SustainableInfrastructure Division, Regional and Sustainable Development Department, Asian DevelopmentBankCharles Lin, Fellow, McKinsey & Company's Climate Change Special Initiatives (Clean TechnologyService Line), Hong KongAndrew Brandler, CEO, CLP Holdings, Hong KongRobert Todd, Director, Renewable Energy, Resources and Energy Group of HSBC, Hong KongChristine Loh, CEO of Civic Exchange opened proceedings with an overview of what to expect in theCopenhagen negotiations.A copy of the forum programme is attached in Appendix 1. Speakers’ presentations are available fordownload at http://www.civic-exchange.org/eng/event_091109COP15.aspx.Over 140 delegates attended the forum, who also contributed to the exchange during the moderateddiscussion session. This report provides a detailed report of the presentations and discussions on the day.Summary of the presentations, comments and Q & A session1. Presentations1.1. Tracking the Negotiations: What can we expect from Copenhagen?By Christine LohWhen discussing what people could expect from COP15, Christine Loh first brought the audience back tothe 2007 Bali Action Plan, stating the four main issues which still need to be considered in preparation forCopenhagen – mitigation, adaptation, financing and technology transfer. These four issues would also beimportant in assessing how successful COP15 would be. Ms Loh then went further to talk about thereported emissions proposals for COP15 by various countries and using the proposals as the base, she useda model called “C-Roads” to showcase different emissions reduction scenarios. The China scenarios wereused to illustrate the scale of financing needed to reduce emissions and combat climate change.1.2. What will the energy transformation cost and how will it be paid for?By Josh CarmodyJosh Carmody tackled two important questions in his presentation: How much and who pays for the energytransformation? The contribution of developing countries in Asia to greenhouse gas emissions hasincreased over the past three decades. Demand in Asia for energy and projected growth for energy isdouble that of the rest of the world. Money is needed to deliver an energy revolution to reduce emissions2