Aligning politics and practice for climate risks

By Thomas Schinko, IIASA Risk, Policy and Vulnerability Program

Climate change is projected to disproportionately affect people in developing countries, through extreme weather events and slow onset events such as rising sea levels. Because the countries most affected by climate change are also those who contributed the least to the problem and with the least capacities to cope, one of the major issues in recent climate negotiations has been how to support those nations’ efforts to adapt and to address climate impacts beyond adaptation.

To address this problem, in 2013 the United Nations Framework Convention on Climate Change (UNFCCC) established the Warsaw International Mechanism (WIM) for Loss and Damage Associated with Climate Change Impacts (WIM).

Yet at the Paris climate talks in December, the future of the WIM was in limbo. The Global South argued for loss and damage to be a key part of an eventual agreement, while the Global North argued for including it under the adaptation agenda. In the end, the Paris agreement quite prominently featured loss and damage. However the Global North’s fears of signing up to a mechanism that makes them liable for unlimited damage claims in the future have been addressed by adding a specific paragraph to the agreement stating, “the agreement does not involve or provide a basis for any liability or compensation.”

©Amir Jina via Flickr

A flood in Bangladesh in 2009. Flooding is project to increase with climate change, yet arguments remain about attributing specific events to the influence of climate change. Photo Credit: Amir Jina via Flickr

Building on this reconfirmed support for the mechanism, the second meeting of the Executive Committee of the WIM was held 2–5 February 2016, in Bonn, Germany. The main purpose of the meeting was to give an update on the delivery of specific activities and to consider relevant requests arising from COP21. The Paris agreement requests the establishment of (1) a clearinghouse for risk transfer to facilitate the implementation of comprehensive risk management strategies and (2) a task force to address displacement issues. On the first issue, discussions have focused on the need to move beyond focusing solely on risk transfer and the link between current disaster risk management practice and climate adaptation as there are important overlaps.

As an observer, I could feel the presence of team spirit among the committee members, all honestly committed to help the most vulnerable people. Yet one issue remained hotly debated: the degree to which anthropogenic climate change can be blamed for natural disasters and extreme weather events. I saw a strong divide between committee members from the Global North and South and between those with a strong background in disaster risk management in contrast to those coming from a climate change background. Nevertheless, even in that regard I see a good chance for a joint vision to emerge, if we can distinguish two levels of the loss and damage discourse: the practical implementation on the ground vs. the political dimension.

On the practical implementation side, a pragmatic compromise became palpable: Building on decades of experience in disaster risk management related to weather extremes and the climate variability, it was identified as an entry point to deal with current and future climate risks – whether they are triggered or intensified by climate change or not. The political level, which circles around climate finance and the question of who is going to pay for losses and damages is quite another matter. Here the anthropogenic element is existentially important, as it builds the foundation for international support under the UNFCCC. If reference to anthropogenic climate change is left out of the loss and damage discourse, the UNFCCC might lose its mandate for support, as disaster risk management falls under national responsibility. Once this door closes it could remain shut, though another one might open (e.g. via civil law).

© Asian Development Bank via Flickr

Women in Thata, Pakistan line up for water following 2010 floods. Photo Credit: Asian Development Bank via Flickr

To overcome the political barriers and to build upon the convergence with respect to the short-term practical implementation, we suggest to foster an iterative and comprehensive risk management approach, linking risk prevention, risk reduction, risk retention, risk transfer, as well as ex-post relief and reconstruction to effectively tackle different layers of climate risks.

However, it is important not to lose track of climate change as a risk driver, by consequently screening new scientific and empirical insights. This is crucial, as future risks might substantially increase due to climate change, requiring an iterative adaptation of current practices and support by the international community.

To support such an approach, rigorous scientific input, bringing together researchers from various disciplines, practitioners, NGOs, and policy makers is crucial. Together with international partner institutions, in November 2015 we initiated a scientific hub on loss and damage to provide such input. The envisaged clearinghouse for risk transfer and the task force for climate-related displacement could become key recipients for information generated by our network, packaged with further information and distributed to make it actionable; particularly addressing the needs of the most vulnerable developing countries.

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Science for climate risk management and climate justice

By Thomas Schinko and Reinhard Mechler, IIASA Risk, Policy and Vulnerability Program

Discussions on dealing with the already palpable as well as future burdens from climate change have moved into the spotlight of international climate policy. They are being tackled as part of the climate negotiations via the Warsaw International Mechanism (WIM) for Loss and Damage associated with Climate Change Impacts (Loss and Damage Mechanism), a measure for dealing with impacts and adaptation related to extreme climate events and slow onset events that was agreed in 2013. Debate on the scope, framing and on how the mechanism will eventually be implemented is still continuing, and is heavily framed around moral issues such as compensation, liability, and a need for attributing disasters to climate change, which is a difficult and complex issue.

Opening of COP 21 on 29 November 2015. Photo: Benjamin Géminel via Flickr

Opening of COP 21 on 29 November 2015. Photo: Benjamin Géminel via Flickr

To help move this contentious debate forward, we recently organized a meeting at IIASA to set up a broad scientific network to support work under the Loss and Damage Mechanism with rigorous and evidence-based research.

Since the first climate negotiations, climate justice has been a major source of contention, with countries disagreeing on the level of responsibility for climate change and the extent to which developed and developing countries should contribute to the solutions. These discussions have predominantly focused on climate mitigation responses, but over the last few years, impact and risk issues have moved into the limelight.

Discussions in the run-up to the 21st Conference of the Parties to the Climate Convention (COP 21) in Paris make it clear that answering key questions revolving around climate justice and climate finance will be pivotal for the conference to deliver on any global climate change agreement.

Even though some rich countries currently appear to acknowledge the central role of a mechanism covering losses and damages within a new global climate agreement to be negotiated at COP 21 in Paris, huge reservations remain. With changing climates, extreme weather events are likely to increase in frequency as well as in intensity. The global North fears exposure to soaring claims for financial compensation by countries of the global South, which will be facing the most severe risks from climate change. In fact, even the meaning and nature of Loss and Damage is still being debated – some suggest the Loss and Damage mechanism should be part of adaptation, while others want it to focus on residual risks that remain after adaptation efforts have been taken. For example, it could finance potential climate-induced migration.

Discussion of compensation raises complex issues about liability, and would presumably require attribution of losses and damages to emitters. Indeed, climate science has been making great progress in attribution research. Recent work has shown a significant human element in mega-events such as superstorm Sandy in 2013 in the US or the Australian heatwave in 2013. Yet, as our kick-off meeting reconfirmed, linking anthropogenic greenhouse gas emissions to extreme weather events and to risks for people and property will remain extremely complex, not least as risks from climate-related events are shaped by many factors, including climate variability, rising exposure of people and assets, as well as socio-economic vulnerability dynamics. While the basic case for climate justice has been made, the concrete, enforceable case remains much harder to establish.

A protest for "climate justice" at Quezon City, Philippines on 14 November 2015. Photo: RB Ibañez via Flickr

A protest for “climate justice” at Quezon City, Philippines on 14 November 2015. Photo: RB Ibañez via Flickr

For these good reasons and to not derail the debate by fixating on questions regarding liability, the debate has extended beyond the narrow focus on compensation – the omnipresent elephant in the room of the UNFCCC process. The meeting at IIASA, which brought together 14 researchers from 10 institutions and 8 countries, also suggested that for a productive discussion, it makes sense to focus broadly on managing various climate risks by fostering current policies and practices while keeping the climate justice debate in close consideration.

This proposal essentially suggests to build on a long history of managing climate-related (and geophysical driven) extremes by employing a broad portfolio of different disaster risk management tools, including financial instruments such as insurance or regional risk pools. As identified also by the IPCC’s 5th assessment report, building on this body of knowledge and practice for comprehensively tackling existing and increasing extremes, holds a lot of promise and has seen international support, e.g. by the Sendai Framework for Action.

The discussion at IIASA focused on these two angles – climate justice and climate risk management – and worked out the following specific foci and building blocks for an evidence-based research approach to support the operationalization of the Loss and Damage Mechanism:

  • Articulation of principles and definitions of Loss and Damage, including ethical and normative issues central to the discourse (e.g. liability and responsibility).
  • Definition of the Loss and Damage space vis-á-vis the adaptation space.
  • Research on the politics and institutional dimensions of the debate.
  • Defining the scope for dealing with sudden-onset risk versus slow-onset impacts.

In the coming months the novel network effort will tackle these issues and questions in order to provide actionable but research-based input into the Loss and Damage deliberations.

Note: The authors thank the researchers present at the kick-off event at IIASA for their input on the topic and this blog post: Florent Baarsch (Climate Analytics, Berlin), Laurens Bouwer (Deltares, Delft), Rachel James (University of Oxford), Stefan Kienberger (University of Salzburg), Ana Lopez (University of Oxford), Colin McQuistan (Practical Action, Rugby), Jaroslav Mysiak (FEEM, Venice), Ilan Noy (University of Wellington), Joeri Roegelj (IIASA), Olivia Serdeczny (Climate Analytics, Berlin), Swenja Surminski (LSE, London), Koko Warner (UNU-EHS, Bonn)

References
Bouwer LM (2013). Projections of future extreme weather losses under changes in climate and exposure. RiskAnalysis 33(5):915–930

Herring, S.C., Hoerling, M.P., Peterson, T.C., Stott P.A. (eds) (2014). Explaining extreme events of 2013 from a climate perspective. Special Supplement to the Bulletin of the American Meteorological Society 95(9)

James, R., Otto, F., Parker, H., Boyd, E., Cornforth, R. Mitchell, D. and M. Allen (2014). Characterizing loss and damage from climate change. Nature Climate Change 4: 938-39

Mechler, R. Bouwer, L., Linnerooth-Bayer, J., Hochrainer-Stigler, S., Aerts, J., Surminski, S. (2014). Managing unnatural disaster risk from climate extremes. Nature Climate Change 4: 235-237

Peterson, T.C., Hoerling, M.P., Stott, P.A., Herring, S.C. (2013). Explaining Extreme Events of 2012 from a Climate Perspective. Bull. Amer. Meteor. Soc., 94: S1–S74. doi: http://dx.doi.org/10.1175/BAMS-D-13-00085.1
Trenberth, K.E., Fasullo, J.T., Shepherd, T.G. (2015). Attribution of climate extreme events. Nature Climate Change 5: 725–730. doi:10.1038/nclimate2657

This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Scientific decision support systems: One step beyond bridging science to policy

By Ping Yowargana, IIASA Ecosystems Services and Management Program

Recently, Indonesia has been combating its most severe forest fire of the decade. Around 43 million Indonesians have been exposed to hazardous fumes, and countless loss of biodiversity and ecosystem services has occurred. An estimated 1 billion tonnes of carbon emission has been released to the atmosphere. Within three months, Indonesia’s daily carbon emission has surpassed the average daily emissions of the whole US economy.

Firefighters outside Palangka Raya, Central Kalimantan, 15 October 2015.  Photo by Aulia Erlangga/ CIFOR

Firefighters outside Palangka Raya, Central Kalimantan, 15 October 2015.
Photo by Aulia Erlangga/ CIFOR

Forest fires in Indonesia are closely related to unsustainable agricultural practices spreading out throughout the country. Indonesia is the world’s largest producer of palm oil, with 8 million hectares of plantation area. Other than its significant contribution to the economy, and broadly debated effects on the environment, oil palm is also regarded as a promising solution to the country’s effort to achieve energy security. The current administration has set ambitious targets to increase national biofuel production, and to consume it domestically.

In this landscape of uncertainty and crisis, scientific support for Indonesian energy policy is more urgently needed than ever. That’s why it is one of our main focuses in the IIASA Tropical Forests Initiative (TFI).

“Scientific authority has to be the basis of our future energy policies,” said Mr. Sudirman Said, Indonesia’s Minister of Energy and Mineral Resources, at the opening session of our first collaborative screening workshop in September in Bandung, Java. In the workshop, jointly organized by IIASA and the ministry, we aimed at laying out a plan to establish a new decision support system for the ministry, based on IIASA’s energy systems models such as the renewable energy systems optimization model, BeWhere and the Model for Energy Supply Strategy Alternatives and their General Environmental Impact (MESSAGE).

Scientific decision support systems (DSS) are a tangible crystallization of bridging science to policy. A decision support system gathers information and analytical expertise in order to improve the quality of policy making, using feedback and evaluation from previous planning and policy implementation. As a practical approach in dealing with what scientists refer as complex adaptive systems, such DSS should be able to integrate visions of long-term planning with technical details that are important for daily executed policies.

The IIASA and the Ministry of Energy and Mineral Resources of Indonesia screening workshop took place from 15-17 September. ©MEMR

The IIASA and the Ministry of Energy and Mineral Resources of Indonesia screening workshop took place from 15-17 September. ©MEMR

Indonesia’s energy sector is a typical example of a highly complex system. Currently, challenges of the sector are more cross-sectoral than ever. Issues that seem to have limited scopes, such as bioenergy, actually influence a broad swath of other areas including agriculture, land use change, air pollution, climate change and social equity.

For that reason, the approach we brought to the recent meeting relies on multiple models. BeWhere brings a snapshot perspective to explore energy supply options that best meet the objective set by policy makers, such as cost efficiency or least CO2 emissions, based on location specific energy demand, resource and infrastructure availability. On the other hand, MESSAGE brings a more macroscopic perspective, looking at various scenarios that project optimal solutions of meeting long-term energy demand in a certain region or country.

To have a truly systems perspective, the above approach cannot stand alone. Before we started looking at Indonesia’s energy sector, we had engaged local researchers in the tropics to localize IIASA’s Gobal Biosphere Management Model (GLOBIOM). GLOBIOM is used to analyze the competition for land use between agriculture, forestry, and bioenergy, which are the main land-based production sectors. Clearly, investigating further into the energy system will allow us to grasp a more holistic understanding and develop solutions to tackle challenges in tropical countries.

As one of IIASA’s pilot countries in the budding TFI, Indonesia represents conflicting realities of the tropics, which are essential to the planet’s well-being. Tropical forests help regulate the Earth’s climate system, while being home to huge biodiversity, millions of plant and animal species. However, the region is also highly challenged by domestic development needs and the growing consequences of a globalized economy. Abundant natural resources and land-intensive agricultural commodities, together with intensified infiltration of global supply chains and complicated socio-economic structures, have resulted in severe ecological pressures that are harmful to the region as well as the planet.

The TFI aspires to address such complexity by applying systems analysis together with regional policymakers. Such application implies a two-fold challenge. The first one is to put together IIASA’s various scientific tools to understand the broader picture that comes out from the integration of interrelated aspects of domestic development. Secondly, working together with policymakers leads to a mutual learning process. Policymakers learn to use scientific models and tools in their decision making process. In this process, fitting the models into the local context is an inevitable step that requires intense communication between scientist and practitioners. Eventually, this process will also benefit researchers by giving them a better understanding of the issue, and opening opportunities for further scientific investigation on new topics.

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

Pessimism is not an option: The road to sustainable development

Interview with Naoko Ishii, CEO and Chairperson of the Global Environment Facility (GEF), an independent organization that provides grants for projects working towards sustainability. IIASA, the GEF, and the United Nations Industrial Development Organization (UNIDO) have recently partnered on a new project to explore integrated solutions for water, energy, and land.

Naoko Ishii ©Global Environment Facility

Naoko Ishii ©Global Environment Facility

Q What is sustainable development and why is it important?
As Brundtland put it, sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs.

If we do not achieve sustainable development, we will fail to provide even the barest essentials of life—food, water, and shelter—for the growing population. The extra two billion people that will inhabit the world in 2050 can only be accommodated if we are serious about sustainable development.

On a personal level I care about sustainable development because I care about the future, I care about young people, and I care about humanity. Achieving sustainable development is, in my opinion, the single most important issue we face today. Without it, all life on Earth is in jeopardy.

The Global Environment Facility (GEF) was created on the eve of the 1992 Earth Summit in Rio to assist in the protection of the global environment and promote sustainable development. The benefits of such an endeavor have only become clearer over time. It is no coincidence that in 2015 all nations of the world will adopt a set of sustainable development goals which place a strong emphasis on the “global commons,” and that in parallel we have a new global agreement on climate change within reach.

How do you see the world in 2050? What are your most optimistic and pessimistic visions?
I am an optimistic person so I will say that, by 2050, every government, every business, and every individual will take the environment into consideration in all their actions. By 2050, we will all be caring for the Earth, taking responsibility for the use of our planet’s resources, and building economies which will leave no one without dignity or necessary subsistence. We will live within safe planetary boundaries. Pessimism is not an option for me.

How can science help the world achieve sustainable development?
Science plays a critical role.  We need it to monitor the state of our resources, the impacts of our activities, and the progress being made.  Science can also help identify solutions. It can help encourage businesses to make smart decisions, for example, about saving money though energy efficiency, risk mitigation, and new revenue opportunities driven by innovation and new business models.

Sustainable development is a truly cross-cutting endeavor: it spans many sectors, from agriculture to economics, and transcends national boundaries. Science can play an important role by producing research that is integrated, cross-sectoral and international. In this way, synergies, co-benefits, and trade-offs can be explored in order to identify the smartest paths to achieving multiple sustainable development goals at the same time

©The GEF

“Sustainable development is a truly cross-cutting endeavor: it spans many sectors, from agriculture to economics, and transcends national boundaries.” ©The GEF

How do you see the role of Global Environment Facility in implementing the Sustainable Development Goals?
The GEF is uniquely placed to support the global commons—the planet’s finite environmental resources that provide the stable conditions required for a sustainable, prosperous future for all.  Our new strategy—GEF2020—lays out an ambitious vision for the GEF, aimed at addressing the underlying drivers of environmental degradation and delivering integrated, holistic, solutions. We are building on more than 20 years of experience providing support to over 165 countries. By working with national governments, local communities, the private sector, civil society organizations and indigenous peoples, we help find and implement integrated solutions to global challenges.

What are the advantages of a cross-sectoral and cross-border approach to identifying paths to sustainable development?
Many environmental challenges and threats to sustainable development do not respect borders.  Moreover, they are often interdependent, or share common drivers. For example, biodiversity loss and climate change is partly driven by unsustainable forest management, which is in turn connected to production of globally traded commodities like palm oil or soy. Problems like this require an integrated, cross-cutting approach.

Given the importance of cross-sectoral interventions, at the GEF we will be implementing a program of integrated approach pilot projects. We believe that these will help countries and the global community in tackling underlying drivers of environmental degradation. I am also very excited about a research program we have recently launched in partnership with IIASA and the United Nations Industrial Development Organization, focusing on development and implementation of integrated solutions to tackle the water-food-energy nexus.

Note: This article gives the views of the interviewee, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.

10 steps to removing carbon from the global economy

By Nebojsa Nakicenovic, Deputy Director General, International Institute for Applied Systems Analysis (IIASA), Austria (Originally published on the World Economic Forum Agenda Blog.)

Nebojsa Nakicenovic

Nebojsa Nakicenovic

Goal 7 of the Sustainable Development Goals is ambitious: Ensure access to affordable, reliable, sustainable and modern energy for all. This must be accomplished without compromising Goal 13: climate. This is achievable.

In spite of ups-and-downs and outright shocks in the global economy, some quite recent, the economic success stories of the industrialized countries are role models for the countries that are still developing. This puts the entire global community in the dichotomous position of needing to fire up the engine of growth, without producing the greenhouse gases it has been emitting since the beginning of the Industrial Revolution. What is the answer?

Very few questions in the complex area of energy and climate change can have a simplistic answer, but I am going to attempt one here: decarbonization, namely, drastic reduction of carbon dioxide and other greenhouse gas emissions per unit of economic activity.

Back in 1993, I wrote this:

“The possibility of less carbon-intensive and even carbon-free energy as major sources of energy during the next century is consistent with the long-term dynamic transformation and structural change of the energy system.”

My view in 2015 is the same; however, the scientific community 22 years later has a much better understanding of “the decarbonization challenge” and how it can be addressed. I will sketch out a 10-step approach to the removal of carbon from the global economy, but first I’d like to paint in a bit of the background.

Carbon dioxide is the main greenhouse gas and contributor to climate change. The largest source is our use of fossil fuels to drive development. Carbon dioxide emissions have increased exponentially since 1850 at about 2% per year, while decarbonization of the global economy is only around 0.3% per year.

The 2012 Global Energy Assessment, in which IIASA played a leading role, puts the current decarbonization rate at approximately six times too low to offset the increase in global energy use of about 2% per year. To meet the goal of the 2009 climate agreement (the Copenhagen Accord), namely, “the scientific view that the increase in global temperature should be below 2 degrees Celsius” to prevent dangerous anthropogenic interference with the climate system, global net emissions of carbon dioxide and other greenhouse gases will need to approach zero by the second half of this century, implying deep, deep decarbonization rates.

working oil pumps © Kokhanchikov | Dollar Photo Club

“Carbon dioxide is the main greenhouse gas and contributor to climate change. The largest source is our use of fossil fuels to drive development.” © Kokhanchikov | Dollar Photo Club

But we need deep decarbonization while energy needs are increasing to meet the demand of the developing world, including the three billion without access today to sustainable energy. All scenarios in the academic literature that lead to further economic development in the world, universal access to sustainable energy, and the stabilization of climate change to less than 2 degrees Celsius, anticipate deep and urgent decarbonization. Here’s my 10-point plan for doing that.

  1. Change attitudes
    Attitudes to energy use are based on many factors, from cultural norms to overall infrastructure design. We need much greater political will to affect a change in attitudes: it is critical that policy interventions should communicate to citizens the ethical notion of improved well-being and health now and for future generations of a zero-carbon economy. .
  1. Transform governance
    The transformation needed this century is more fundamental than previous transformations, like the replacement of coal by oil, because of the significantly shorter time needed to achieve it. Thus, government policies are essential, and are needed particularly in changing buildings codes, fuel efficiency standards for transportation, mandates for the introduction of renewables, and carbon pricing.
  1. Improve energy efficiency
    More efficient provision of energy services, or doing more with less, and radical improvements in energy efficiency, especially in end use, will reduce the amount of primary energy required and represents a cost-effective, near-term option for reducing carbon dioxide emissions, as well as having multiple benefits in different areas of life.
  1. Ramp up renewable use
    We can show that the share of renewable non-fossil energy from solar, wind, rain, tides, waves, and geothermal sources in global primary energy could increase from the current 17% to between 30% and 75%. In some regions it could exceed 90% by 2050, provided that public attitudes change and efficiency increases.
  1. Reduce global energy intensity
    The energy intensity in the industrial sector in different countries is steadily declining due to improvements in energy efficiency and a change in the structure of the industrial output. Far greater reductions are feasible by combining these improvements with adoption of the best-achievable technology.
  1. Use known technologies
    Carbon dioxide capture and storage (CCS), now being piloted, is a pathway that leads to decarbonization with continued use of fossil energy. It requires: reducing costs, supporting scale-up, assuring carbon storage integrity and environmental capability, and securing approval of storage sites. Nuclear energy could make a significant contribution in some parts of the world, or it could be phased out as, for instance, in Germany.
  1. Improve buildings
    Retrofitting buildings can reduce heating and cooling energy requirements by 50–90%; new buildings can be designed and built using close to zero energy for heating and cooling. Passive energy houses and those that produce energy onsite are another great opportunity to achieve vigorous decarbonization. In conjunction with compatible lifestyles oriented toward rational energy use, efficient buildings are an important decarbonization option.
  1. Cut transport carbon
    A major transformation of transportation is possible over the next 30–40 years and will require improving vehicle designs, infrastructure, fuels and behavior. Electrically powered transportation reduces final energy use by more than a factor of three over gasoline-powered vehicles. A shift toward collective mobility is an essential option. This also implies behavioral changes and new business models like car-sharing, and self-driving cars to replace individual mobility.
  1. Clean industrial processes
    Overall, global industry efficiency is only 30%. Improved energy efficiency in industry results in significant energy productivity gains and, in turn, improved productivity boosts employment and corporate competitiveness. A shift toward low to zero emission energy sources in industry is another important and much-needed change. For example, with an aggressive renewables strategy, near-zero growth in GHG emissions in the industrial sector would be possible. Finally, decarbonization would also involve changes of industrial processes, for example, from high to low temperatures.
  1. Stranded assets and ‘derisking’ renewables.
    The flow of investment needs to be changed away from fossil fuels and toward efficiency, renewables, decarbonization of fossil energy sources, and especially efficient end-use in buildings, transport, and industry. Sustainable energy futures require relatively high up-front investments with the benefit of low long-term costs. They are attractive in the long run, but the up-front investments need derisking and other forms of support, such as feed-in tariffs.

Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.