Lord Donoughue – 2016 Parliamentary Question to the Department for Energy and Climate Change
The below Parliamentary question was asked by Lord Donoughue on 2016-06-07.
To ask Her Majesty’s Government whether the Clean Technology Funds financial eligibility threshold of $200 per tonne of CO2 equivalent abated represents good value for UK taxpayers in the context of global mitigation effects.
Lord Bourne of Aberystwyth
In order to ensure value for money, the Clean Technology Fund (CTF) Investment Criteria (2009) has six objectives, of which cost-effectiveness is one. The other objectives are Potential for GHG Emissions Savings, Demonstration Potential at Scale, Development Impact, Implementation Potential and Additional Costs and Risk Premium.
The financial eligibility threshold of $200 per tonne of CO2 equivalent is in place to safeguard value for money. This threshold was based on the International Energy Agency’s Energy Technology Perspectives 2008 Report, as the lower-end estimate of the marginal incentive needed to achieve a reduction of global GHG emissions to 50% by 2050. The average total investment cost per tonne achieved in the CTF is $39.60 (£26.40), which is significantly below this threshold.
More information is available in the document Climate Investment Funds (2009), Clean Technology Fund Investment Criteria for public sector operations.
