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The strategic prioritization in policy synergies heterogeneous stakeholders and opportunities that facilitates developing nations to game for betterment of society in limited resources. The strategic prioritization methodology was presented to frame long and short-term actions with available resources. The theme is to develop inherently de-carbonize economies with minimum spending, efforts, adopting best practices, exploit regional potential, optimize asset efficiency, recycling/reuse, technology and innovation, etc. However, trickle down global climate change regulations require level of awareness for regional energy dynamics, politics, bureaucratic structure, training and education, infrastructural weaknesses, financial barriers, etc. Several conflicting, non-measurable and inconsistency in policies destroy efforts towards net carbon zero and hindering de-carbonizing objectives in the developing world. No doubt, societal factors and their interest’s influences political systems engaged in energy transition policymaking, implementation and enforcement. Therefore, it’s time to organize energy transition efforts/planning in a way that it has minimum financial impact and keep developing economies on momentum. The article highlights sustainable policy instruments, initiatives, best practices, opportunities, innovation areas and identify stating steps those will inherently lead climate change ambitious targets of de-carburization in developing economies with minimum financial investment.
policy synergies, strategic prioritization, action plan, developing nations, sustainable energy transition
Energy transition journey towards de-carbonization gaining momentum and strategic prioritization of action plan for developing nation’s is a challenge. The target is to limit global average temperature increase at preferably 1.5℃ above preindustrial levels, as concluded by the United Nations (UN) in Paris Agreement [1]. Inter-Governmental Panel on Climate Change (IPCC) has anticipated the continues CO2 emissions will potentially rise sea level causing multiple destructions in eco-systems; increase droughts, species extinction, absolute poverty levels, life expectancy, rising oceans acid levels, declining crop productivity, increases in malnutrition, infectious diseases spread, etc. [2]. Basis according to IPCC, total cumulative carbon dioxide (CO2) emissions in end 2017 was 2230 GtCO2 and it left the margin of 420 GtCO2 (January 2018) for average global temperature rise to 1.5oC until 2050 [3]. IPCC links energy transitions with demand and sets broader sustainability context keeping earth as a natural system, with the 17 UN Sustainability Development Goals (SDGs) [4]. Complete understanding of planet energy system is still in progress as it is a constituent of multiple systems/layers having no full operational independence, size of energy producing or consuming, distribution size (regional or local grids), emergent nature, and evolutionary development. The gap between observed emissions and proposed reductions as per agreed climate objectives are keep increasing.
The technologies desired for energy transition is still in progress and 2050 target date is probably over optimistic. The climate change is a fact, where completely greener future is a challenge as pose an imminent existential crisis and its urgent solution is shared responsibility. Therefore, sensible policies, sustainable technological solutions, prioritization, etc. to tackle energy transition and de-carbonization will allows weaker economies to contribute and survive in better shape. One of the major objections on adoptability or deployment of disruptive acceleration in this transition is associated costs. For the policy prioritization review, IPCC, International Renewable Energy Agency (IRENA), and International Energy Agency (IEA) open source information were analyzed with developing nation’s individual action plans.
The core of agenda is to reduce GHG emissions. Therefore, understanding about the carbon flow in energy system is important, and it is distinguished by carbon categories and sources. Before digging deep in action plans and discussing options/policies to prioritize actions, let’s overview GHG emission classifications and sectors contributing in energy system’s carbon footprint (see Figure 1). These sectors are pillars of social system (where size presented in Figure 1 is fictive and illustrative only) and one can classify itself by defining its boundaries. The focus was given in this article to help developing nation to strategically prioritize action plan with qualitative approach. Therefore, the quantified information such as size of the sector and its contribution in GHG emissions were not discussed, as these numbers may vary with time for each nation.
Figure 1. Topology of emissions scope and energy sectors
One of the important questions, why to start focus on developing nations? As developing nations are most populated and resources consumption centers. Resource allocation and financial spending is also a challenge. Therefore, setting realistic targets (national action plan) and strategic prioritization is the key to achieve de-carbonization, reduction in avoidable emissions and balancing unavoidable emissions in an equivalent amount of CO2. Exhaustive emissions from each system accounted in various scope classification from one to three. Most of the direct emissions from operations fall in Scope 1 and Scope 2, accounted ~5% and remaining ~95% emissions are from supply chain activities. Commonly used term “Net zero” means that the amount of greenhouse gases (GHG) produced is balanced with removed GHG in said boundaries. Oceans and land (are natural sinks biosphere) remove ~50% of GHG produced. In practice, the current level of 412 ppm (1ppm equivalent to 1.8 mg/m3) of CO2 in atmosphere needs to reduce to 350ppm, which required complete stopping of fossil fuels [5]. European countries are pioneering in policy making or developing plausible pathways toward net zero carbon. Netherlands announced emission free cars by 2030, Germany planned for coal power plants phase out by 2038, Portugal almost achieved 100% electricity production from wind and hydro, Switzerland stimulate renewable energies, energy efficiency and phase out of nuclear power plants, and Denmark declare 100% renewable energy use in heating, electricity and transport by 2050 [5].
A novel addition of circular economy concept in industrial sector is itself restorative or regenerative by innovation, changing consumer with user. The optimal portfolio options of de-carbonization depends on variety of factors and its design feedstock/product suitable for biosphere with no ‘end-of-life’ and ‘waste generation’ concept. Renewable energy use is also promoted in complete production cycle. In the process industry, these concepts create clear-cut value generation opportunities. Figure 2 demonstrates general amplification, starting from feedstock (1) and catalyst (2) used in process will be greener, substituted, consumed or recycled; utilities and energy requirements (3) of process meet via greener route to control CO2 emission; within boundary of industry (4) or circle, minimizing energy intensity, enhancing energy efficiency and improving process of conversion to more environmentally sustainable; appropriately use of residual energy and waste (5); product and profit (6) were also defined as reusable, consumable and recyclable with minimum CO2 footprint and extends product longevity. The beauty of circling concept refers to increasing number of consecutive cycles (whether reuse, re-manufacturing, material cycling, etc.) and/or time for each cycle. The cascaded use diversify circular concept across whole value chain and reduce new materials substitution.
Figure 2. Energy reduction and circular economy strategies
Transformation toward renewable energy and sustainable carbon-neutral technologies to limit/reduce GHG emissions has been gained attention. In addition to it, various guidelines and actions were devised without proper synchronization, that made it puzzle and overall success reported is questioned owing to climate changes dashboard. Extensive GHG emission reduction measures are taken by various developing countries, while penetration barriers of renewable energy technologies still promoting fossil fuels. Therefore, it’s a shared responsibility to play role in capacity for sustainable energy transition and de-carbonization [1]. Building energy transition and de-carbonization [1]. Building foundations of fair tangible energy policies and enthusiasm for developing nations and environmental justice is itself a challenge [6]. Therefore, knowledge sharing and easy excess of advanced technologies from developed nations to developing can bridge the gap faster. As a consequence, governments of developing nations also devised strategy, setting long and short term goals, aiming limitations to preindustrial emissions. Two approaches are commonly regarded to achieve this goal are carbon feedstock mitigation (by enhancing renewable resources share, energy efficiency, etc.) and reinforcement of carbon sinks (either naturally through afforestation/reforestation, or artificially using CCUS technology).
IRENA did extensive work to model energy development scenarios based on planned policies and propose ambitious climate-resilient roadmap [7]. The energy transition roadmap regularly updated with developments or adopting low-carbon technologies as a baseline for comparing progress and identifying investments. It serves as guideline to governments on their ongoing energy plans and targets/commitments under Paris Agreement. It has been further forecasted that renewable energy options in heating and transport sectors could reduce two-thirds of emissions [7-9]. An equally important goal is to reduce poverty because most environmental problems cannot be solved until community is ready to bear adoptability cost [10-14]. In this complex scenario, decorated policies were presented with vision statements in Intended Nationally Determined Contribution (INDC), whereas policy prioritization for developing nation’s need more professional and practical approach. This article divides national policy instrument to reach their energy transition and de-carbonization targets with respect to level of investment (tiers). Aligning polices with tiers will save efforts, resources, expenditures and time to reach the targets of de-carbonization. Start tackling various aspects, such as imaginary implicated governance, energy integration, erratic power supply, level of technology knows how, upgradation of existing technologies, framework to enable sustainability, politics, etc. This manuscript further helps to outline policies prioritization and developing methodology for actions and investments without affecting socio-economic momentum of developing nations.
The UN has outlined roadmap with SDG’s, where timeline spanning short, medium and long-term goals. More specific polices for a particular country explicitly outlined in INDC. While multiple gaps/challenges based on techno-social infrastructure has been observed for developing nations, needs action prioritization. Theme behind methodology of strategic prioritization of action plan in sustainable energy transition and de-carbonization has considered many aspects, starting focus on financial position to inherent national potential with “no regrets” adaptation, assert efficiency, effective disaster management and more strictness for upcoming energy intensive installations, uninterrupted energy supply, cost of energy and time. Priority options in policy for implementation starts with low hanging fruit and negative costs projects such as energy efficiency enhancement or integration opportunities. Further down the road commitments by each nation with sector’s and stakeholder/actors identification (as illustrated in Figure 3), with realistic and measurable targets is part of methodology considerations as transition take time and investment.
The de-carbonization policy can’t be driven faster without economic interest, where engineering estimation of benefits and costs of inaction (economic effects of climate change) need more clarity for each nation. Quantifying measurable effects of climate change that incorporates risk, mitigation with technological change, economic costs of adaptation, costs of major catastrophic events, non-CO2 GHG’s and sinks, and recent abatement technologies, etc. Framework assessment of risks and uncertainties will be an accompanying policy toolbox within low carbon transition pathways [14]. To achieve de- carbonization, massive scale carbon technologies are required, alongside energy efficiency and behavioral change measures. No doubt, opportunities exist, but associated with unseen risks; while said change cannot executed at the expense of moving economies, productivity, demand and living standard. Therefore, detailed techno-economic evaluation of each policy action will be reviewed with de-carbonization objectives and integrated synergies. Staying away from the “valley of death” policy makers must enable technology framework (computational methods) to accelerate climate-proof investments. It’s possible to pin point, more efficiently and diversified portfolio of energy sources, i.e. to make less responsive energy sources more responsive, reduce carbon impact of poorly performing sources, lower investment, etc. Recognition of all emission reduction initiatives falling in scope 1, 2 and 3 are equally important to meet de-carbonization.
Figure 3. Stakeholder/actors for methodology considerations
Table 1. Identification of SWOT for developing and under-developing nations [14, 15]
Strengths |
Weaknesses |
Opportunity |
Threats |
Geographic position |
Bureaucratic processes |
Regional integration |
Corruption |
Political stability |
Level of awareness |
Electricity demands |
Land ownership |
Economic stability |
Sense of urgency |
Improve energy efficiency |
Education |
Renewable feedstock |
High capital investment cost |
Promo case studies |
Fossil fuel dominance |
Renewable energy Implementation |
Sense of responsibility |
Awareness of climate change |
Conflicting policies |
Research Institutions and institutional supports |
Little attention to off-grid systems |
International support funding |
Erratic climatic conditions |
Public and private investment |
Low electricity tariffs |
Improve assert efficiency |
Environmental impacts and food security |
Generalize emissions calculation and reporting |
Dearth of commercialization of scientific research |
Price decline in renewable energy and rebates |
Wheeling arrangements, supply and feed-in-tariffs |
Defined targets of each sector |
Environmental and ecological protection |
Renewable manufacturing support |
Energy markets |
Centralized monitoring and targets |
Equity and justice |
Society, culture, and behaviour |
Legal requirements |
Unified dashboard |
Finance & infrastructure |
Value chain improvement |
Technology access |
Cheap workforce |
High energy demand |
Land availability |
Utility cost |
Every developing country has its own energy dynamics with strengths, weaknesses, opportunities and threats (SWOT), as tabulated in Table 1 [14, 15]. Strengths represent available resources and those reduce profitability are weaknesses. To model nation energy outlook, possible questions are: available/unlockable renewable energy resources, policy favors, level of expertise, technology availability, operational ease, interest of investors, jobs creation, scales of opportunity, available financing and profits, how much climate impact it will create compared to fossil fuels, demand and infrastructure needs, etc. This study discussed gaps and challenges first to specifying technical and social factors with respect to emission profiles. Secondly, define prioritization strategy outlines, limitations, prospectus, capacity/technology support. Third, time planning with respect to financial stability. Fourth, integrated simulation of facts needs to cross-checked potential outcome with national model and define actions. Carbon-free technologies in many sectors does not exist or not mature enough, therefore, CAPEX and OPEX estimation is near to impossible and various subsidies desired to reduce threat of competitiveness by adopting said enormous changes. Devising de-carbonization and energy transition policies requires extensive understanding of socio-economic structure and resources demography of the region. Therefore, policy enabling framework must classified in number of categories, such as societal, cultural, political, ecological protection, energy market and demand, responsible authorities for policy enforcement, legal requirements, diverse range of stakeholder objectives, infrastructure, economic (finance), impact or clash of interests, synergetic effects, etc. [15].
At the same time major issue in most the developing and under-developing economies is to deploy dedicated resources in their budget. Policies can also confront with new challenges and potential to manage such consequences is expansive. For example, some nation’s still investing in coal-fired power plants and impede decarburization, and extreme is that some even doing it on imported coal [16, 17]. If still coal-based power plants are announced, or planned, or under construction, national efforts will never reach net carbon zero. Prioritization of strategies inhibits development of carbon-intensive energy systems for an ambitious de-carbonization path. Therefore, prioritization got attention to gear up developing economies for de-carbonization, starting for policy development where minimum or no CAPEX (Capital Expenditures) from stakeholders is involved. After getting confidence on benefits from such policies they get motivated to start inviting in coming milestones as per priority roadmap.
After SWOT analysis and stakeholders identification, thematic tier methodology for policy to lead de-carbonization actions were devised. Fictional theme is to identify options, deploy cheaper solutions, their impact from every sector and emission demography. For instance, in transportation sector a target to limit cars with less than 80g CO2 per kilometer (either by hybrid or electrification) by certain year and at same time integrate with electricity production emission at backend. Therefore, policy prioritization will help nations to achieve economy-wide emission goals with CAPEX, whereas some individual actions may not contribute significantly. Complementarities range of policy instruments and strategies impacted by multiple barriers and vary in different geographies due to differences in above discussed contextual factors. The efforts and policies to address de-carbonization cannot be generalized that may lead to business-as-usual or overload financially. The methodology revealed an integrated approach to strategic prioritizing in developing countries for achieving goals of net carbon zero. Authors feel the sense of urgency to develop this methodology to grip low hanging fruit that is manageable with minimum investment or even by best practice. This prioritization in policy will enhance the actions effectiveness and outcome. However, the dynamics of energy is complex and integrated, therefore, identifying variables and simplifying equation will make the de-carbonization target easier to achieve in every geography.
Strategic prioritization tier approach is developed using above described methodology for policy in energy transition and de-carbonization. The schematic Figure 4 demonstrates fictive emissions reduction classification into four tiers with business as usual and reduction potential using different policy tiers. Tiers were prioritized starting from no or lower capex/investment to intensive investments, therefore, combined with a qualitative cost curve display emission reduction cost. Numbers displayed are purely illustrative to demonstrate cost and effect of prioritization for energy transition and de-carbonization.
An alarming highlight is that need attention on actions and obstacles in policies of zero cost, and their implementations are still on shelf. These policy tiers are not limited to following; Tier Zero (start with immediate effect and no or minimum investment), Tier I (to be completed by 2030 with minimum investment), Tier II (to be completed by 2040 with technology shift measures), and Tier III (to be completed by 2050, capturing all emissions by force). A detailed overview of SWOT as discussed in Table 1 with respect to developing and under –developing nations for future viability of system and this section linked these with tiers. The prioritization approach (discussed in broader prospectus) will be robust and extremely effective tool to formulate SMART policy by developing clarity and filling gaps in action plans [16]. The strategic prioritization of national action plan enables governments to effectively implement, enhanced decisions and deploy resources on de-carbonization commitment with minimum capital burden. This approach of strategic prioritization is further trickle down with Tier’s philosophy in measurable policy instruments are discussed below.
Figure 4. Fictive summary of tier methodology for strategic prioritization of policy actions to achieve de-carbonization
3.1 Tier zero
It is an emergency policy and/or actions need to start implementing with immediate effect. The philosophy behind this tier is to control emissions with inherent potential, without signification financial investment. This tier is more about the correctness of policies, actions, gaps and/or conflicting synergies, such as putting efforts on reducing emission and in other means producing emissions in same sector. Tier zero should be extremely strict for new installations to achieve de-carbonization targets. This will mitigate emissions up to 40-60%, while actions are not limited to the list below, as directional.
3.2 Tier I
This tier classified as minimum effort or minimum capex and provide basis for further coordinated approach for facilitation in medium-term concerns. Long term infrastructure should also be planned to support de-carbonization activities till 2050 and stepwise investment accordingly.
3.3 Tier II
This tier starts from 2030 and it’s important to achieve targets of previous tiers before starting tier II. More strict pledges and policies are desired to promote de-carbonized activities of scope 3 based on clear standards, methodologies, aligned definitions for claiming energy transition impact. Emphasis remains not to focus cost intensive and high risk areas contributing. Therefore in this tier, policy mandate/instrument should force action to complete decarbonize production of electricity, improved efficiency, waste minimization, improve natural carbon sinks (forest management) with desired food productivity and enhance soils framework, etc. The purpose of this article is not to discuss multi-indicator analysis for CO2 emissions estimation while concentrating on policy prioritization.
3.4 Tier III
Tier III starts from 2040 and to accomplish vision of complete de-carbonization. Nations should pursue efforts that address the vulnerability of sectors influencing climate change by intensive actions. Despite expected emissions reduction with cohesive measures of previous tiers, in this tier all-practical solutions were planned to achieve net carbon zero. Investment and collaboration to several technologically mature concepts were tackled in this tier, such as low-carbon hydrogen generation processes, utilization of CO2 and biomass as feedstock, electrification of chemical operations, etc. [22-25]. The collaborative/joint ventures initiatives and consolidation of success in implementation of prioritized technologies will focused and social inclusion that leaves no one behind (as outlined in the Paris Agreement article 4.19) [1]. Prioritization in policy and advance planning implications in developing countries can save huge investment with brilliant outcome on reduced carbon emissions.
Innovation Commercialization: Out of the box innovation is desirable to improve technology-built cost trajectories for renewable energy supply chain from production to end consumption. [29, 30]. Otherwise, distortive market effects or other inequalities prevent an increased integration of new market players.
Analysis of SWOT and prioritization of actions, addresses the question how to quantify de-carbonization success based on extending technical and financial situation in developing. Adaptation of tiers into economic appraisal, national periodization of actions are extremely important with their integrated cross-sectoral synergies. Most of the policy led actions listed in tier zero changes the emission dashboard of each nation, that is by corrective measures and best practices, where no significant investment is required. Implementing the prioritization methodology tier zero will relieve financial pressure on national investment in de-carbonization and improve their emissions outlook. Government/policymakers should plan integrated SWOT and stakeholder’s interest analysis/brain storming sessions with experts to frame tier zero policy/actions for each sector.
A variety of complementary polices appear to be green in particular scope but insufficient as adding emissions to other scope, therefore, innovative breakthrough technologies in recycling/reuse are highly desirable [1-4]. Standing support of scientific team for policy makers to capture change benefits and highlight conflicting aspects of various technologies is part of story. In the absence of a well-thought-out transition strategy, transparency in actions, deep de-carbonization of industry could be enormously disruptive and costly, necessitating comprehensive simulation or review at tier zero. Successive tiers are cost intensive as proceed with time and may encounter technological limitations or challenges in developing nation.
Developing nations may ask as UNFCCC Paris Agreement under CBDR (common but differentiated responsibilities) rule, the de-carbonization potential will be realized through collective efforts both financial and technical assistance [1, 2, 4]. Emerging industrial policy has become heart of actions while vary in across national contexts. Integrated framework to explore the relationship between de-carbonization policy instruments and empirical planning implementations has overlapped with innovation policy. Presented roadmap to net zero will play vital role in helping developing countries to identify multiple scenarios and priorities actions to achieve de-carbonization goals.
The article emphasises on strategic prioritization of developing nation’s actions to faster deployment on de-carbonization to address common goal i.e. to limit global warming to 1.5℃ above pre-industrial levels. Irrespective of technological and financial challenges, developing world has huge potential to contribute by corrective and appropriate policies. It’s further outlined how polices can divide into different tiers to drive actions on de-carbonization, considering complex emergence of diverse set of actors, such as technology limitations, influential individuals, investors, government, society, etc. Autharities/policymakers should carefully choose reliable data to construct actions that suits unique national circumstances while maintaining investor’s confidence. For example, at the moment renewable energy share in developing nations is relatively infant and mobilization require policy support. Another important aspect that existing policies could not stop upcoming emissions or subsequent factors.
A systematic tier methodology has been presented to address prioritize policies in a way to start with corrective measures or best practices. Tier zero serves as instrumental guidelines to prepare house in order without capital spending. To start with low hanging fruit, and optimize compatibility; where authorities should stop new energy intensive installations/manufacturing/products/imports not meeting de-carbonization targets or those going to be obsolete. Focus on eco-technology deployment to unlock available energy resources, assert efficiency and energy conservation [30]. Tier I and II set stepwise investment plan with careful coordination between sectors: power, building, transportation and industry. Key outlook of tier I is energy conservation, low carbon power and circular economy. Tier II is a cross-model continued expansion of activities with of affordability assessment for portfolio optimization of complete renewable power, transportation and buildings. Tier III enabling framework of complete eradication wheeling arrangements and need policy intervention to force expansive decisions, BAT, and investment. Investment to commercialize innovative solutions or technology imports were also pursued in this tier. The discussed strategic prioritization of action plan for achieving de-carbonization will expedite energy transformation in developing countries and help in endure energy scarcity.
The authors acknowledged continues learning support from pears and sharing experiences.
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