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ADBI Series on Asian and Pacific Sustainable Development
CLIMATE CHANGE MITIGATION
Policies and Lessons for Asia
Edited by
Dina Azhgaliyeva and Dil B. Rahut
ASIAN DEVELOPMENT BANK INSTITUTE
ADBI Series on Asian and Pacific Sustainable Development
Series Editors: Tetsushi Sonobe and Rohini Pande
Economic growth, poverty reduction, and living standards in Asia and the Pacific have improved dramatically in recent decades, but the region now faces a diverse range of new and ongoing challenges. The ADBI Series on Asian and Pacific Sustainable Development highlights innovative research and policy guidance for enabling greater socioeconomic progress amid fast-changing conditions. The series aims to be a forward-looking and impactful source of knowledge for policy makers and scholars interested in building a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
Climate Change Mitigation:
Policies and Lessons for Asia
Edited by
Dina Azhgaliyeva and Dil B. Rahut
ASIAN DEVELOPMENT BANK INSTITUTE
© 2022 Asian Development Bank Institute
All rights reserved.
ISBN 978-4-89974-267-8 (Print)
ISBN 978-4-89974-268-5 (PDF)
DOI: https://doi.org/10.56506/OJYG4210
The views in this publication do not necessarily reflect the views and policies of the Asian Development Bank Institute (ADBI), its Advisory Council, ADB’s Board or Governors, or the governments of ADB members.
ADBI does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. ADBI uses proper ADB member names and abbreviations throughout and any variation or inaccuracy, including in citations and references, should be read as referring to the correct name.
By making any designation of or reference to a particular territory or geographic area, or by using the term “recognize,” “country,” or other geographical names in this publication, ADBI does not intend to make any judgments as to the legal or other status of any territory or area.
Users are restricted from reselling, redistributing, or creating derivative works without the express, written consent of ADBI.
ADB recognizes “China” as the People’s Republic of China; and “Korea” as the Republic of Korea.
Note: In this publication, “$” refers to United States dollars.
Cover photo credits: Ben Ray, Dina Azhgaliyeva, Dil B. Rahut
Asian Development Bank Institute
Kasumigaseki Building 8F
3-2-5, Kasumigaseki, Chiyoda-ku
Tokyo 100-6008, Japan
www.adbi.org
Contents
Tables, Figures, and Boxes
v
Abbreviations
x
Contributors
xii
Foreword
xiv
Acknowledgments
xv
Executive Summary
xvi
Dina Azhgaliyeva and Dil B. Rahut
Introduction
1
Dil B. Rahut and Dina Azhgaliyeva
PART I Energy Sector: Transition toward
High Renewable Energy Penetration
1 Financing the Energy Transition in a Low-Cost
Intermittent Renewable Energy Environment
19
Frank Wolak
PART II Buildings: Promoting and Financing
Demand-Side Energy Efficiency
2 Future-Proofing Sustainable Cooling Demand
57
Toby Peters and Leyla Sayin
3 Promoting Green Buildings:
Barriers, Solutions, and Policies
85
Dina Azhgaliyeva and Dil B. Rahut
PART III Transport Sector: Promoting Cleaner Transportation
4 Transport CO2 Mitigation and the Production of
Low Traffic Neighborhoods: Lessons from London
133
Robin Hickman and Andrey Afonin
5 Decarbonizing the Transport Sector through Electrification and Biofuel Use
in Emerging Economies of Asia
163
Venkatachalam Anbumozhi, Citra Endah Nur Setyawati, and Rafi Aquary
iii
iv Contents
PART IV Decarbonizing through the Agriculture Sector
6 Contribution of Agriculture to Climate Change and Low-Emissions Agricultural Development
in Asia and the Pacific
203
Jeetendra Prakash Aryal
7 Best Bets for Achieving a Carbon-Neutral
Global Food System
237
David Lobell
PART V Carbon Pricing
8 Exploiting Complementarity of Carbon Pricing Instruments for Low-Carbon Development
in the People’s Republic of China
269
Jie Wu, Ying Fan, Govinda Timilsina, and Yan Xia
9 What Role for Carbon Taxes and Emissions Trading in a Portfolio of Policies to Reduce
Greenhouse Gas Emissions?
300
Frank Jotzo and Dina Azhgaliyeva
Tables, Figures, and Boxes
Tables
I.1
GHG Emissions by Country
4
3.1
Considerations for Policies Supporting Green Buildings
95
B3.1
Key Policies of Green Buildings in the PRC
97
3.2
Examples of Tax Incentives to Promote Energy
Efficiency Improvements in Buildings
108
3.3
Example Grants for Energy Efficiency Improvements
in Buildings
110
3.4
Example Policies Promoting Ener
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