Ismaël Faouri

Fiscal policy instruments are powerful tools that governments can deploy to respond to climate change challenges. On May 14, the IMF's Middle East Regional Technical Assistance Center will host a webinar discussing: (1) the macroeconomic and fiscal implications of climate change in Algeria, (2) risks associated with the global energy transition for Algeria’s economy, and (3) appropriate fiscal policy responses. It will give an overview of the Algerian government’s climate strategy and present fiscal policy options to achieve Algeria’s greenhouse gas emission reduction goals and build resilience against climate risks. The session will conclude with Q&A: https://lnkd.in/eAraCBnW Mahmoud H. Holger Floerkemeier Zeinab Hammoud Anastasia Janzer

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The ETS World Map provides a comprehensive view of emissions trading systems (ETSs) around the globe. Credits to Omar AL-Ajaji 🇵🇸. Follow him for more sustainability insights. Original post : __________ It tracks ETSs currently in force, under development, and under consideration: ● 36 ETSs are currently in operation. ● 14 additional ETSs are expected to launch in the coming years, including systems in Colombia, Türkiye, and Vietnam. ● 12 jurisdictions are exploring the potential of ETSs for their climate strategies. The map utilizes a color scheme to indicate the status of ETS implementation: - Blue: Jurisdictions with an ETS in force - Blue with a green border: Jurisdictions with an ETS in force and another under development __________ ♻️ Find this post useful? Feel free to share it with your network 📣 👉Follow Sustainability Infographics 📊 to learn from the industry's best visuals. #climatechange #emissions #sustainability #carbonpricing #markets #ets #netzero #investing #management

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New Oxford Institute for Energy Studies paper looks at Reforming Capacity Markets and How to Incorporate the Flexibility of Residential Consumers 👉 Link to OIES Paper: https://lnkd.in/dQDGNjUD Key points:   💠 Resource adequacy has become more challenging in low carbon power systems due to lower #electricity prices and the missing money problem 💠 #renewableresources make traditional resource adequacy techniques obsolete since generation scarcity can occur even at times of low demand 💠 Capacity remuneration mechanisms have been proposed to provide an additional stream of revenues for resources 💠 One such mechanism are capacity markets where generators and other resources make offers based on their unavoidable costs to keep them available and transmission system operator determines the demand based on forecasted peak load 💠 Capacity markets may lead to over capacity investments by not letting consumers express their value of continuity of supply 💠 Also capacity markets do not have appropriate temporal and spatial granularity to provide signals for capacity investments at right location and with appropriate temporal characteristics 💠 This paper proposes construction of capacity demand curve based on consumers’ continuity of supply preferences and introduce a refined capacity product for trading in capacity markets incorporating specifics about location, flexibility, and adjustments to the calculation of firm capacity profile to ensure resource adequacy in future low carbon power systems #capacitymarkets #resourceadequcy #lowcarbon #powersystem

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Report | UNDP: The Peoples’ Climate Vote 2024 Conducted for the UN Development Programme (UNDP) with the University of Oxford, UK, and GeoPoll, the survey asked 15 questions on #climate change in the biggest-ever standalone public opinion poll on the issue. Explore the findings of the report on our website. #ESG #climatechange #poll #survey #report

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📊 Energy data is crucial in driving informed decisions for clean energy transitions and security. The IEA's new roadmap is a powerful tool for strengthening national capacities in tracking and enhancing energy statistics. A must-read for policymakers and institutions working towards sustainable energy goals! #EnergyTransition #Sustainability #IEA

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Key Enablers to Triple Renewables by 2030: Skills and Capacities The International Renewable Energy Agency (IRENA) has pointed out that reaching over 11 Terawatts of installed renewables capacity as set at COP28 would necessitate overcoming identified structural barriers. One of those barriers is related to the evolving energy transitions needs that demand skilled workforce. Well-skilled workforce filling in a broad range of occupational profiles determines the success of renewables expansion. IRENA already estimated that with the efforts to triple installed renewables capacity under its 1.5°C Scenario, renewable energy sector jobs will also triple from 2021 levels to about 40 million worldwide by 2050. Source: https://lnkd.in/gXnssDrp

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Oxford Institute for Energy Studies Paper looks at reforming capacity markets and how to incorporate the flexibility of residential consumers 👉 Link to OIES paper: https://lnkd.in/dQDGNjUD Some key points: 💠 Energy-only markets rely on high price signals during periods of scarcity to incentivize investment but these signals can be uncertain and insufficient to cover the fixed costs of new generation 💠 Capacity remuneration mechanisms have been introduced in many countries to compensate generators for making generation capacity available for utilization 💠 But current capacity market regulatory framework is more tailored for conventional generating resources and leaves less room for storage and demand response resources 💠 Instead of building new generating units to meet reliability criteria, demand response resources could be used 💠 During times of generation scarcity there exist consumers who are willing to reduce their demand for monetary compensation and although commercial demand response has been more prominent, there has not been great engagement from residential demand response 💠 But there are barriers that prohibit greater demand response participation: These span from economic, social, technological, political, and structural 💠 The main barriers include the market product traded and consumers’ perception: Residential consumers tend to withdraw from demand response programs if the inconvenience of participating becomes too high 💠 But consumers may attach different value to the guarantee of continuity of supply and this is especially the case when considering consumption for non- essential uses in excess of what is necessary to cover basic needs (lighting, cooking and heating) 💠 Paper proposes the use of priority pricing contracts so that consumers can demonstrate their value for reliability by subscribing in specific contracts 💠 Priority pricing contracts can be incorporated through an aggregator as explicit demand response in capacity markets 💠 Paper proposes a business model for an aggregator that provides priority pricing contracts to consumers and participates in capacity markets #electricity #electricitymarkets #capacitymarkets #aggregators #flexibility #demandresponse

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New Oxford Institute for Energy Studies paper on Contracts for Difference (CfDs) and their role in the energy transition 👉 Link to paper : https://lnkd.in/ede2vKsX Some key conclusions: 💠 Diversity of support schemes increasing as more jurisdictions started or upgraded their #energytransition-related support measures 💠 UK, EU, several EU Member States and other countries have recently announced (or reasserted) their intention to prioritize #CfDs for supporting investment in #renewable and #lowcarbon projects 💠 In power sector CfD mechanism emerged as preferred arrangement to provide required revenue support and stimulate construction of new renewable power generating facilities 💠 CfDs help overcome limitations and distortions caused by previous generation of support schemes, such as FiTs and FiPs, providing better value for money for governments and enabling projects to be de-risked and funded by private sector 💠 CfDs offer lower implementation and operational complexity than #PPAs even though novel use of CfDs to provide revenue support for #hydrogen production might show that this is dependent on existence of market for product to provide a reference price than on CfD mechanism itself 💠 CfDs help governments address fiscal fairness issue that bedevils other technology support schemes by providing a cap on amount of support to be provided and by collecting differences in times of high prices 💠 But CfDs should not be seen as a silver bullet for #decarbonization as they have their own limitations 💠 They can generate market #distortions and crowd out other market-driven initiatives such as corporate PPAs 💠 If used to drive down price of production too fast (such as with power generation) focus on cost reduction can cause unwanted consequences in the local #supplychain 💠 Because of high expectations that CfDs address a myriad of desired outcomes they have been burdened by ongoing discussions on how to add more dimensions to the allocation or the functioning of the mechanism 💠 New designs of CfD contracts are being debated to address perceived shortcomings of CfDs and how they can be used to effectively support evolution of #electricitymarkets 💠 Another example and direction of reform is discussion on the use of "non-price factors" alongside purely financial metrics in the allocation of CfDs 💠 General expectation is over time required revenue support mechanisms will be phased out in favour of pure market mechanisms but given need to accelerate investment in energy transition, in the short-term opposite will be true with demand for more and more effective revenue support having to be offered not only to #renewable power projects but to other #cleanenergy solutions such as #hydrogen and #CCS

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State of Energy Policy 2024 - Analysis - IEA Summary: The State of Energy Policy 2024 highlights the transformative energy policies adopted in recent years, driven by energy security concerns, clean energy transitions, and ambitious climate commitments. The COVID-19 pandemic and geopolitical events like Russia's invasion of Ukraine accelerated global clean energy investments, which have grown by 60% since 2020. Around 150 countries, covering 95% of global GHG emissions, have implemented new energy policies. Governments have earmarked nearly USD 2 trillion for clean energy projects since 2020, primarily in China, the U.S., and the EU. Key insights include: Energy Security: The reemergence of energy security concerns has prompted diverse policy measures. Geopolitical tensions and supply chain disruptions highlight the importance of securing clean energy supply chains. Global concentrations of clean energy technologies remain high, with 80% of production concentrated in a few countries. Clean Energy Investments: Since 2020, governments have increased clean energy investments, with USD 290 billion earmarked in 2024 alone. Most of this funding is allocated to electric vehicles, hydrogen, batteries, and critical mineral production. Regulatory Shifts: More than half of G20 countries have implemented stricter energy regulations covering power, industry, and transportation. However, some countries have rolled back regulations on fossil fuel boilers and internal combustion engine vehicles due to the energy crisis. Global Emissions Coverage: As of 2024, energy performance regulations cover three-quarters of global energy-related emissions. However, challenges remain in unregulated sectors, and enforcement gaps persist, particularly in fossil fuel methane emissions. The IEA's State of Energy Policy provides a comprehensive inventory of more than 5,000 policies across 60 countries, offering a valuable tool to assess policy effectiveness in balancing sustainability, affordability, competitiveness, and security. #CleanEnergy #EnergyTransition #EnergySecurity #ClimateChange #GHGEmissions #EnergyPolicy #RenewableEnergy #IEA #Sustainability #NetZero

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Power Sector News Roundup: Global: - European clean energy stocks fall amid Trump’s victory and policy concerns - Global energy efficiency improvements lag behind COP28 targets: International Energy Agency (IEA)  - Nigeria calls for bids to develop 4 GW gas-fired power plants - RWE chooses Thyborøn Port to build Denmark’s largest offshore wind farm - EDF in talks to source nuclear power for 1 GW data centre projects in France - Ireland releases geophysical data ahead of 900 MW offshore wind auction - Seaway7 to provide ScottishPower’s East Anglia offshore cables - Vårgrønn acquires 27.4% stake in Germany's Baltic 2 offshore wind farm - STMicroelectronics signs PPA with BKH Solar for Malaysian operations - Nigeria commits NGN500 billion to revitalise abandoned power projects India: - SECI debars Reliance Power Limited and subsidiaries from tenders over fake documents - Nomura projects 7% CAGR in India's power demand through FY27  - Centre, Himachal Pradesh discuss 4,300 MW pump storage projects  - DGTR for anti-dumping duty on certain type of solar glass from China, Vietnam - TATA Power to invest Rs 5.5 billion in renewable energy for Noida Airport - Inox Wind Ltd. Wind reports Rs 902.2 million profit in Q2 FY24, income up 93% - Greenzo Energy secures EPC contract for 120 MW solar project in Nepal - ACME Solar and Hexa Climate Solutions win bids for NTPC’s FDRE projects For more detailed news, head over to Power Peak Digest. #PowerNews #RenewableEnergy #GlobalEnergy #AIinEnergy #OffshoreWind #GreenHydrogen #BESS #SolarEnergy #CleanEnergy

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📄new #analysis: Quantifying sectoral CO2 marginal #abatementcost curves 👉application of #MACCs in abatement decision-making. This brief builds upon Enerdata’s EnerFuture scenarios to provide exclusive quantitative insights into the anticipated trends in #energysystem costs under different climate ambition levels, ranging from a baseline scenario to a climate constraint scenario. At the same time, it discusses case studies and results covering The European Union Landscape, Czechia and Indonesia. Read the analysis 👉 https://lnkd.in/e7CcYa2M

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We are rapidly approaching the deadline for the #ParisAgreement, yet progress remains far from sufficient. This year's COP will be crucial for shaping future discussions on #climateaction, particularly in the realm of finance. Especially the topics such as new climate finance goals, the current international financial framework, and strategies for designing Nationally Determined Contributions (#NDC) that facilitate investment in climate-resilient infrastructure. Having recently participated in the Petersberg Climate Dialogue (PCD), I had the privilege to shared Indonesia's perspective on how the Ministry of Finance can play a proactive role in supporting the development, financing, and implementation of NDCs. It is disheartening to note that only 29% of respondents in a 2021 survey conducted by Coalition of Finance Ministers for Climate Action reported actively contributing to NDC development in their countries. I shared the stage with other prominent speakers including, HE Svenja Schulze, HE Marina Silva (Minister of the Environment and Climate Change, Brazil), Amar Bhattacharya and Warren Evans. The discussion at the PCD also brought to light contrasting views on the responsibilities of developed versus developing countries in financing climate action. While emerging nations advocate for greater support from historical emitters, developed countries hold a different perspective on this crucial issue. I am proud to stand in solidarity with other developing nations in advocating for a fair and inclusive approach to designing the new climate finance goals. It is imperative that the specific needs and priorities of developing countries, such as the imperative for a #justtransition, are taken into consideration in these discussions. Addressing the $1.6 trillion investment gap required to shift from brown to green energy is essential for achieving sustainable growth and climate resilience. Indonesia is committed to leading by example in mobilizing transition financing through initiatives like the Just Energy Transition Partnership (JETP) and the Energy Transition Mechanism (ETM) Country Platform. Additionally, we are actively updating our Indonesia Taxonomy for Sustainable Financing and supporting the development of the ASEAN Taxonomy for Sustainable Finance Version 2 to promote transition activities. On a global scale, Indonesia is playing a significant role in various climate forums as the Co-chair of CFMCA and actively participating in the #G20 Sustainable Finance Working Group and G20 TF-CLIMA. As we navigate the complex challenges of #climatefinance, cooperation and collaboration among nations will be paramount in achieving our shared #climategoals.

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The UAE Framework for Global Climate Resilience (or the GGA Framework) has 11 targets aimed at enhancing adaptive capacity and resilience building and reducing vulnerability to #climatechange.  Postdoctoral Research Fellow Luckson Zvobgo has worked on the development of indicators to track the implementation of these targets. With #COP29 set to review the development of these target indicators, Zvobgo outlines the significance of the GGA Framework and Africa's four priorities for #adaptation at the summit. https://lnkd.in/eQG_35ez

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#ArticleOfTheWeek | The global imperative to combat climate change has spurred the emergence of innovative, market-based solutions. Among these, voluntary carbon reduction certificates are becoming a key tool to incentivize emissions reductions. Egypt, facing dual challenges of climate change and economic growth, has made a significant move by launching its first regulated voluntary carbon market. By examining the market's key features, benefits, challenges, and opportunities, voluntary carbon reduction certificates can play a role in driving sustainable development and economic prosperity in Egypt. Read the full Article > https://lnkd.in/di7wdjXt For more Articles don’t forget to Subscribe to our Newsletter > https://lnkd.in/dYCSUNjN #ArabFinance #Egypt #Economy #Market #Development #Growth #Carbon #Innovation

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Decarbonization Prioritization with the Eisenhower Matrix Credits to Dr. Mohamed Tash. Follow him for more sustainability insights. Original post : __________ 📍Navigating the urgent need for decarbonization requires a structured approach to prioritize effectively. 📍That's where the Eisenhower Decarbonisation Matrix comes in. 📍Adapted from the well-known Urgent-Important Matrix, this tool helps categorize decarbonization tasks by urgency and importance, guiding actions towards a more sustainable organisation. 🔹 Quadrant 1: Urgent & Important (Do First) ▪️Implement energy efficiency measures swiftly. ▪️Meet crucial regulatory deadlines for emissions reduction. ▪️Tackle immediate climate risks, such as extreme weather. ▪️Deploy renewable technologies where they are needed most. 🔹 Quadrant 2: Not Urgent but Important (Plan) ▪️Develop strategic, long-term decarbonization policies. ▪️Invest in R&D for innovative clean energy technologies. ▪️Launch educational campaigns to enhance sustainable practices. ▪️Foster international collaboration for knowledge exchange. 🔹 Quadrant 3: Urgent but Not Important (Delegate) ▪️Automate or outsource administrative tasks related to emissions reporting. ▪️Handle non-critical inquiries regarding decarbonization. ▪️Address compliance tasks that have minimal overall impact. 🔹 Quadrant 4: Not Urgent & Not Important (Eliminate) ▪️ Eliminate non-essential meetings and redundant documentation. ▪️Avoid activities that do not directly contribute to decarbonization goals. 📍This matrix serves as a practical framework for organizations committed to reducing their carbon footprint efficiently and effectively. 📍Through focusing on what truly matters, you can accelerate your organisation's journey towards zero emissions. __________ ♻️ Find this post useful? Feel free to share it with your network 📣 👉Follow Sustainability Infographics 📊 to learn from the industry's best visuals. #Decarbonization #Sustainability #ClimateAction #RenewableEnergy #EisenhowerMatrix #productivity

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Decarbonization Prioritization with the Eisenhower Matrix Credits to Dr. Mohamed Tash. Follow him for more sustainability insights. Original post : __________ 📍Navigating the urgent need for decarbonization requires a structured approach to prioritize effectively. 📍That's where the Eisenhower Decarbonisation Matrix comes in. 📍Adapted from the well-known Urgent-Important Matrix, this tool helps categorize decarbonization tasks by urgency and importance, guiding actions towards a more sustainable organisation. 🔹 Quadrant 1: Urgent & Important (Do First) ▪️Implement energy efficiency measures swiftly. ▪️Meet crucial regulatory deadlines for emissions reduction. ▪️Tackle immediate climate risks, such as extreme weather. ▪️Deploy renewable technologies where they are needed most. 🔹 Quadrant 2: Not Urgent but Important (Plan) ▪️Develop strategic, long-term decarbonization policies. ▪️Invest in R&D for innovative clean energy technologies. ▪️Launch educational campaigns to enhance sustainable practices. ▪️Foster international collaboration for knowledge exchange. 🔹 Quadrant 3: Urgent but Not Important (Delegate) ▪️Automate or outsource administrative tasks related to emissions reporting. ▪️Handle non-critical inquiries regarding decarbonization. ▪️Address compliance tasks that have minimal overall impact. 🔹 Quadrant 4: Not Urgent & Not Important (Eliminate) ▪️ Eliminate non-essential meetings and redundant documentation. ▪️Avoid activities that do not directly contribute to decarbonization goals. 📍This matrix serves as a practical framework for organizations committed to reducing their carbon footprint efficiently and effectively. 📍Through focusing on what truly matters, you can accelerate your organisation's journey towards zero emissions. __________ ♻️ Find this post useful? Feel free to share it with your network 📣 👉Follow Sustainability Infographics 📊 to learn from the industry's best visuals. #Decarbonization #Sustainability #ClimateAction #RenewableEnergy #EisenhowerMatrix #productivity

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