1. Sustainable management solutions
CLIMATE CHANGE AND RENEWABLE
ENERGY CHALLENGES AND
OPPORTUNITIES IN DEVELOPING
NATIONS
October 5,2011 Webinar, PMI Global RUTH P. BRIONES, MPA, LlB
Sustainability Community of Practice

2. Abstract
The intention of this presentation is to focus on the challenges that
developing nations in order to reduce emissions in view of the refusal of
developed nations to sign an extension of the Kyoto Agreement.
This is in view of the a great divide between developed nations and
developing nations as to how these countries cut their emissions. It could be
noted that the Kyoto Protocol set emissions targets only to developed
nations and that the said agreement is ending, the challenge is on the
developing nations to implement measures to cut emissions by speeding up
development of sustainable green technological change and the
transition towards renewable energy.
It will be emphasized that the real challenge for the future is to introduce
policy measures that can really enhance inclusive and sustainable growth on
renewable energy, which is an opportunity to developing nations.

3. Parts of the presentation
 Background on Climate Change,
impacts and effects
 Challenges, Cause of action
 Management and Development
 The Opportunities

4. Climate change…
Climate change is a significant and lasting
change in the statistical distribution of
weather patterns over periods ranging from
decades to millions of years. It may be a
change in average weather conditions or
the distribution of events around that
average (e.g., more or fewer extreme
weather events).
Climate change may be limited to a
specific region or may occur across the
whole earth.

5. COAL, OIL,
NATURAL GAS- when
LANDFILLS,
burned release carbon
GAS PIPELINES
dioxide (greenhouse gas
RICE PADDIES.
emissions),transportation, CAUSES COAL MINERS
power generations
OF
CLIMATE
DEFORESTATION: CHANGE FERTILIZERS
when wood is burned; AND OTHER
wood rots in swamp CHEMICALS.
methane is produced
HOW MUCH WARMING ?
SCIENTISTS SAY----
ABOUT 2.5 DEGREE FAHRENHEIT
1.4 DEGREE CENTIGRADE BY THE YEAR 2050

6. Climate Change? Causes…a blanket
around the earth…
A layer of greenhouse gases –
primarily water vapor, and
including much smaller amounts
of carbon dioxide, methane and
nitrous oxide – act as a thermal
blanket for the Earth, absorbing
heat and warming the surface to
a life-supporting average of 59
degrees Fahrenheit (15 degrees
Celsius).
Water Vapor
Human Carbon Dioxides
Main causes of expansion of Methane
global warming Greenhouse Nitrous Oxide
Effects Chroloflourocarbon
Source: NASA

7. Effects of Climate Change in
developing nations
• Food Security Scarcity
• Untold Sufferings to • Hunger
developing nations
• Worsening economy
• Famine
• Little mitigation or no • Poor development
capacity to mitigate • Widespread infrastructure
the impacts Diseases
• Political instability
• Worst affected • Desertification of
• Mushrooming
some arable lands
population in urban
areas

8. The United Nations Framework Convention on Climate
Change (UNFCCC) recognizes that the industrialized countries
are responsible for a major part of historical and current global
emissions of greenhouse gases, and they must therefore take
the lead in making commitments to reduce their emissions.

9. Cost
of Climate HIGH
Change
CUTTING OF EMISSIONS OF
GREENHOUSE GASES
GREENING OF ECONOMIES THAT WILL
PROVIDE GLOBAL LEAD
OUR
RESPONSIBILITY
USE OF ADVANCED
IN TWO WAYS
TECHNOLOGIES
BUILDING LOW OR CARBON ENERGY
STRUCTURES
SHARING SCIENTIFIC UNDERSTANDING AND
TECHNOLOGICAL EXPERTISE
• This will cost money -------
• but, will save humanity and long term health of economy

10. CHANGING
COURSE…
• REDUCE DEPENDENCE AND
WORLD AGENDA DEMAND ON FOSSIL FUELS
ALTERNATIVE COURSE OF ACTION
 GROWING POPULATION
 BURGEONING ECONOMIC DEVELOP FOSSIL FUEL
DEVELOPMENT ENERGY ALTERNATIVES
 ENERGY SECURITY
INCREASE ENERGY EFFICIENCY
 ENVIRONMENTAL DEGRADATION
REDUCE ENERGY CONSUMPTION
ACHIEVING SOLUTIONS WILL NOT BE EASY, BUT ENHANCING
ENERGY SECURITY AND AVERTING FUTURE HARMS TO THE
ENVIRONMENT IS POSSIBLE AND CAN ALSO BE PROFITABLE.

11. WE MUST CUT OUR
EMISSIONS OF
GREENHOUSE GASES
Global renewable energy
investment growth (1995-2007)

12. International Climate Change Negotiations
 Kyoto Protocol’s target : reduce by 5.2%
compared to the year 1990 (but note
that, compared to the emissions levels
that would be expected by 2010 without
the Protocol.
 The goal is to lower overall emissions
from six greenhouse gases - carbon
I. Earth Summit, 1992 dioxide, methane, nitrous oxide, sulfur
II. United Nations’ Framework hexafluoride, HFCs, and PFCs - calculated
Convention on Climate as an average over the five-year period of
Change,1992 2008-12;
III. Kyoto Protocol,1997  National targets range from 8%
reductions for the European Union and
IV. Copenhagen Accord, 2010
some others to 7% for the US, 6% for
V. Bonn Climate Change Japan, 0% for Russia, and permitted
Negotiation,2011 increases of 8% for Australia and 10% for
Iceland.“–

13. The Challenge to Developing
Nations
The low commitment from rich nations
to reduce emissions is unsurprising.
The major emitters (USA, the
European Union will continue to retain Developed nations imposed that a new
the highest share of emissions over time. legally-binding framework should
include all major emitters including the
Countries such as USA, Australia and developing nations.
Japan had signified that they do not favor
signing a post Kyoto 2012 emissions Developing nations are for the
constraints agreements. extension of Kyoto, obliging all
industrialized nations to cut greenhouse
In 2010, investments in clean energy gas emissions by 5.2% below 1990
rose up to US$ 243 Billion and a 30% levels during 2008-2012.
increase of 2009 levels.
Developed nations refuse any legally
An IPCC report stated that the world binding agreement to reduce emissions
could meet as much 43% of global after 2012.
energy demand with renewable energy
sources by 2030 and 77% by 2050. This
30% renewable energy penetration is
realistic.

14. Pledge amount to more
mitigation and move toward
The post 2012 stop growth of energy
challenges for related emissions
developing
nations
Speed up green
technological change and
transition towards
renewable energy.

15. 1. Viable alternative
2. Environmental concerns
Why 3. Fossil fuel are more expensive
Renewable 4. Limitless fuel to turn a Renewable
Energy? Energy Infrastructure like wind, solar,
and wastes
5. Increase range of technologies
6. Renewable energy gets cheaper
Project Design and Management
A successful renewable energy
project is one that
1. Links energy with social aspects
2. Meets needs
3. Use appropriate and proven technology that will effectively use
as alternative energy source at the same time reduces and
eliminate carbon dioxides and greenhouse gases
4. Is reliable and sustainable
5. Is economically viable

16. Issues in the management and development of
Renewable Energy Projects
THE POLICY ISSUES
 FEED-IN-TARIFF REQUIREMENT
 BIAS TOWARDS FOSSIL FUELS
 LACK OF REGULATORY FRAMEWORK
POLICY  DEREGULATION OF ENERGY SECTOR
TECHNOLOGY
THE TECHNOLOGY ISSUES
INSTITUTIONAL  LACK OF ENOUGH INVENTIONS
 REQUIREMENT OF PROVEN TECHNOLOGIES
FINANCIAL  COMPLIANCE UNDER INTERNATIONAL
ENVIRONMENTAL STANDARDS
 PERMITTING PROCESS ARE TEDIOUS
 LACK OF WORKING TECHNOLOGY
REFERENCES

17. Issues in the development
of Renewable Energy Projects
THE FINANCIAL ISSUES
INSTITUTIONAL/REGULATORY
ISSUES
i. SOURCES OF FINANCING
i. LACK OF CAPACITY TO ii. NEED FOR PRE-DEVELOPMENT
DEVELOP, IMPLEMENT, FUNDING
OPERATE RE PROJECTS;
iii. LIMITED ACCESS TO EQUITY
ii. LACK OF SOUND RENEWABLE
ENERGY POLICY; iv. HIGHER PROJECT
PREPARATION/TRANSACTION
iii. WEAK IMPLEMENTATION OF COST
THE UNFCCC CLEAN
DEVELOPMENT MECHANISM v. REQUIREMENTS FOR LOCAL
GUARANTEE FUND
iv. NEED OF FLEXIBLE AND SELF-
SUSTAINABLE SUPPORT vi. GRANT MENTALITY OF
MECHANISM FOR RENEWABLE DONORS/COUNTRIES
ENERGY DEVELOPMENT

18. In order to achieve self reliance in the development of
Renewable Energy project s Policy Framework should
have the following directions:
Encourage the
Adoption of
development and
sustainable energy
Increase the utilization of
development
utilization of renewable energy
strategies to
renewable energy resources as tools
reduce the Establish the
by institutionalizing to effectively
dependence on necessary
prevent or reduce
fossil fuels and the development of infrastructure and
harmful emissions
thereby minimize capabilities in the mechanisms.
and thereby
exposure to price use of renewable balance the goals
fluctuations in the energy systems; of economic
international fossil
growth and
fuel markets.
development;

19. PROJECT MANAGEMENT
FOR RENEWABLE ENERGY RESEARCH AND DEVELOPMENT
PROJECTS
ECONOMIC VIABILITY
TECHNOLOGY SELECTION
PRELIMINARY STUDIES
Factors to be PROJECT SIZING
considered at the
planning stage INSTITUTIONAL, POLICY, AND
REGULATIONS
STAKEHOLDER AND OFFTAKER
REQUIREMENTS
FINANCING OPTIONS, ECONOMIC
VIABILITY AND COST
TIMETABLE

20. THE PROJECT DEVELOPMENT AND MANAGEMENT SYSTEMS
INTEGRATION REQUIREMENTS FOR RENEWABLE ENERGY
PROJECTS
DETAILED INVESTIGATION AND
PREPARATION OF ANALYIS OF THE TECHNICAL,
LONG TERM CONDUCT OF FRONT ECONOMIC, INSTITUTIONAL,
END ENGINEERING LEGAL,REGULATORY
COMPREHENSIVE DESIGN ELEMENTS OF THE PROPOSED
DEVELOPMENT PLAN PROJECT TO SUBSTANTIATE
THE PROJECT’S ECONOMICS
THE TOTAL PROJECT PROCESS FLOW
CIVIL WORKS
COST ESTIMATE DIAGRAM
DETERMINATION OF THE DELIVERY
PRELIMINARY HEAT THE FIRM PRICE SCHEDULE FOR THE
AND BALANCE QOUTE AND PROJECT EQUIPMENT

21. Factors to be considered in the preparation of a long term
project management plan for Renewable Energy Projects
Market oriented Human capacity
Infrastructure
reform building
Technology
Capacity Local workforce
transfer and
expansion training
productivity
requirements
enhancement
Regulatory, legal Project Project
and policy management and sustainability and
requirements maintenance risks

22. The Business Plan
Business Model and
Executive Summary Investment
Strategy
• Scope of the project • Investment structure
• Detailed business plan
• commercial rationale for • Operations/Planning
implementing the project, • Equity cash flow
• Expansion/Growth
• where located, Strategy
• who are involved, • Marketing Strategy • Exit Strategy
• who is doing, what, where,
when, how and why
• Management and
manpower
• Total investment involved;
• Management expertise
• investment/financing
required, and credentials
partnerships
• market opportunity;
• business objectives; • Technologies and
Suppliers
• projected headline returns
• Industry analysis,
external analysis
• Competitive advantage
analysis

23. FOUR STAGES OF PROJECT MANAGEMENT FOR
RENEWABLE ENERGY PROJECTS

24. On Managing Renewable Energy Projects in
developing nations…
The challenge and objective that project managers
should participate is to involve in undertaking
concerning the technological change that will stabilize
greenhouse gas concentrations in the atmosphere at a
level that will prevent dangerous human interference
with the climate.
As managers, Renewable Energy project management
deals with climate change in a way that balance a
broad array of relevant policy imperatives, which
include energy security, sustainable economic growth,
economic competitiveness and the other non-
environment issues and directions.
Renewable Energy is broad project management
agenda—a flexible market based approach
towards a low carbon, zero emission based action
towards an effective climate change mitigation.

25. FINANCING RENEWABLE ENERGY PROJECTS IN
DEVELOPING NATIONS
Twenty (20) United Nations agencies
support renewable energy projects in
developing and underdeveloped countries.
 Technical assistance and training
 Institutional development
UN Activities
in Renewable  Capacity building
Energy  Policy development
 Power sector reform
 Energy access and poverty reduction

26. FINANCING RENEWABLE ENERGY
PROJECTS IN DEVELOPING NATIONS
Bilateral Development Agencies
Global Environmental Facility
International & Local Financial
Institutions
Asian Development Bank
Carbon Finance, World Bank

27. Opportunities as per New
Energy Finance Report – CANREA
 Total amount of RE investment – over US $ 42 Billion in
2005 and five fold increase thereafter
 CANREA sees the rapid growing investment interest in
renewable energy globally involving developing nations.
 Wind energy dominates RE investments at $ 12 Billion in
2005;
 Solar photovoltaic climbs over 5 GWp per year by 2011.
 Top 20 utilities in Europe targets to double RE capacity in
the next five years.

28. Renewable energy development in developing
nations during the last ten years
Brazil- 90% of electricity comes from Hydro electric plants and 15 % of
total energy comes from Renewable Energy projects; 2,000 MW of
Biomass cogeneration power plant , 5 GW of wind power and 14 GW
of hydro power.
India—Non-commercial biomass energy comprise 1/3 of total India
energy use ; the transition to RE is visible of energy capacity
initiatives to mitigate climate change, has instituted a sizeable RE
program over the past 20 years- 3.3 million of household uses
biomass gasification plants. High penetration of small hydro, wind,
biomass and industrial waste –to-energy technologies sustains RE
markets.
Other countries such as Mexico, Thailand, Malaysia, Philippines,
Morocco, Croatia, Jordan, South Africa, Tunicia have programs in
sustainable development of renewable energy projects.

29. The Feed-In-Tariff for Renewable Energy
Projects
The Feed-in-Tariff is the best
i. Guaranteed connection to the grid renewable energy policy and
ii. Long term contract to sell political mechanism to
Renewable energy provide investment security
iii. Fixed price sufficient to recover and spread the decentralized
their costs plus a reasonable production of renewable
profit. energy.
iv. Democratizing energy
v. Encouraging decentralized As a renewable energy
production from many producers policy, feed-in-tariff would
and many renewable sources provide flexible, self-
vi. Spreading the power and sustainable support
economic benefits as widely as mechanism for renewable
possible. energy development in
developing countries.

30. The Clean Development Mechanism (CDM) and the development
of Renewable Energy projects in developing countries
The CDM allows industrialized nations to fulfill some of their
legally binding greenhouse gas emissions reduction targets
by financing projects in developing nations .
Each tonne of reduced and verified
CO2 equivalents resulting from the Can CDM and Feed-in-Tariff
project can be traded- and profits be combined to sustain the
made - - on the international carbon commercial viability of a
market in the form of Certified Renewable Energy Project?
Emission Reduction Units (CERs)

31. Is there a need for a renewable energy policy fund?
According to World Future Council - a national renewable energy policy
fund can cover the feed-in-tariff rate and the concrete shares of
developing country could be determined on the criteria reflecting the
development status of the respective country, GDP /capita PPP/capita.
Is there a need to impose tax CDM in developing nations? This is ideal in
the sense that the imposition of tax on CDM generated within its borders,
this is an additional revenue.

32.  Financial incentives
 Users’ Tax
 Income Tax Holidays
 Market support
 Green Option
 Feed-in-Tariff Rules
Policies for
leveraging  Low interest loans
renewable  Building domestic capacity for RE
energy development
investments
 Leveled playing field
 Access to funds for R & D for RE
technologies
 Domestic supports for RE technology
standards and energy efficiency standards
leveling
 Introduction of revenue neutral
environmental taxes

33. Opportunities in renewable energy projects in
developing nations
Energy Efficiency Improvement: In the near future,
the amount of primary energy required for a given
energy service could be cost-effectively reduced by
25 to 35 percent in industrialized countries (the
higher figure being achievable by more effective
policies). In transitional economies, reductions of
more than 40 percent will be cost-effectively
achievable.
And in most developing countries – which tend to have
high economic growth and old capital and vehicle
stocks – the cost-effective improvement potential
ranges from 30 to more than 45 percent, relative to
energy efficiencies achieved with existing capital
stock.
However, when this potential is made use of there will
still remain 20 to 40 percent in 20 years time due to
technological progress. (Johansson et al, 2004)

34. The European Union supports for RE
development in developing countries
 About $115 M annually has been assisted over period 1997-2001
 A 250 million euro facility created to finance RE/EE
 Setting up Global RE funds (GREFF) to support several investor-
financed funds
 Target capitalization of 75 million euros
 EU had set up development assistance in renewable energy in
developing countries.
 EC-ASEAN Energy Facility (EAEF) aims to promote climate-
friendly and clean energy sources as its primary focus in the
ASEAN which ran between 2002-2007 with EU funding of 215 M
Euro. Renewable Energy and energy efficiency components
compose about 77 projects.

35. Conclusions
 Efforts among developing nations to speed up
development of Renewable Energy can be crucial
during the post-Kyoto scenario, however, these
challenges provides opportunities with developing
nations in the forefront of climate change mitigation
and reduction of GHGs emissions.
 The global initiatives and supports towards the
maximizing energy efficiency investments,
continuing market and policy reforms could move to
the direction towards clean technologies and the
transition towards renewable energy.

36. For more information, please contact:
RUTH P.BRIONES, MPA, LlB.
Chairman/Chief Executive Officer
Greenergy Solutions Inc.
Rm.401/411,Verde Oro Bldg.,
535 Commonwealth Ave. Diliman
Quezon City, Philippines
Phone Nos: +632-490-5776 / + 63 917 5556948
E-mail Address: gsiwte@gmail.com
Website: www.greenergy-solutions.com