Executive summary and insights
for policy makers Emerging market and developing economies (EMDEs) have a major stake in tackling the climate challenge, including through the innovations needed to underpin the clean energy transition. The pathways taken by emerging economies to increase their energy supplies to meet rising demand and boost economic development will be fundamental to achieving energy transitions globally. Given the role of new and improved energy technologies in achieving clean energy goals, technological innovation is critical to addressing the climate challenge for all countries. Without it, energy and climate goals will remain out of reach. According to IEA analysis, 35% of the energy sector emissions savings that are needed to achieve net zero CO2 emissions globally by mid-century must come from technologies that are not yet commercially available on the market. As well as continued improvements to products already on the market, there is therefore a need for concerted global efforts to successfully demonstrate emissionsreducing technologies that are known, but not yet proven at scale.

Introduction
The urgency of meeting the climate challenge cannot be overstated. While advanced economies have a leading and central role to play in the clean energy transition that is the mainstay of climate action, emerging market and developing economies (EMDEs) are also integral to achieving this transition as they grow their economies and energy supplies to meet their developmental aspirations. And given the role of new and improved energy technologies in underpinning this transition, energy innovation is critical to addressing the climate challenge for all countries. Without enhanced energy innovation, energy and climate goals will be out of reach. It is also important to recognise that nurturing new technologies to maturity can create local economic prosperity, and clean energy transitions will be a major market opportunity for all economies during the course of the 21st century. Countries around the world are striving to be the home of the next breakthrough clean energy technology company or host world-class clean energy supply chains, with good reason.

Four policy pillars (functions) of effective energy innovation systems

Brazilian leadership in the development of flex-fuel vehicles In the 1970s Brazil was at the forefront of the development of engines that could run on E100, and then in the late 1990s of engines that could run on gasoline, E100 or any blend of the two, allowing drivers to choose the most economic fuel. Both technologies were designed for the unique nature of the Brazilian market, with the high availability and competitive pricing of bioethanol. While the innovation was led by private sector efforts in the 1970s, there was more government involvement in the 1990s’ achievements. The first E100 vehicle hit the market in 1979, a version of the Fiat 147, which was produced in the state of Minas Gerais from 1976 until 1987. The augmented compression ratio worked well and the car outperformed expectations, becoming a big seller.

Energy efficiency in India
Abhishek Malhotra (World Bank) and Ambuj Sagar (Indian Institute of Technology Delhi) This chapter examines India’s clean energy innovation policies and institutions, focusing on energy efficiency programmes. India’s ambitious clean energy programmes, in the face of rapid economic growth and increasing energy demand, have made it a crucial case study for understanding the challenges and opportunities of clean energy transitions in emerging economies. The study explores how India has implemented energy efficiency policies and programmes, including the Standards and Labelling (S&L) programme, the Perform, Achieve and Trade (PAT) programme, and the UJALA programme, to reduce energy consumption and mitigate climate change. It analyses the factors that have influenced policy choices, including the national vision, data collection, international experiences and stakeholder engagement. It also highlights the importance of institutional innovation and the role of the Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL) in driving energy efficiency adoption. By examining India’s experiences, this case study aims to provide valuable insights for other emerging economies seeking to enhance clean energy innovation and achieve sustainable development goals.

Energy sources for electricity and other uses, and level of imports, India, 2000-2021

Box 8.1 The Kenya Climate Innovation Center
The Kenya Climate Innovation Center (KCIC) was established in 2012 as part of the World Bank’s infoDev initiative. It was the first in a global network of Climate Innovation Centers whose design and establishment arose from the need to help developing countries overcome the challenges they face in acquiring, developing and deploying climate technologies in their local contexts. KCIC aims to foster a localised and durable approach to climate change-related innovation and has a mandate to accelerate the development, deployment and commercialisation of relevant technologies. KCIC aims to support innovators to overcome barriers that are especially pronounced in developing countries, including inadequate skills, limited financial support and inhibitive policy frameworks, as well limited access to markets for climate technologies. Its services include business advice, technical assistance, financial support and policy advocacy to help create markets and support further innovation. As well as helping to tackle climate concerns, job creation is an objective of KCIC and a pressing need in Kenya. Initially supported primarily by the World Bank, Denmark and the United Kingdom, KCIC has broadened its funding base as it has grown. In addition to working in Kenya, it has expanded to offer services elsewhere in East Africa. To do so, it now includes support from multilateral development partners like the European Union and foundations such as the IKEA Foundation and the Mott Foundation. By the end of 2022 KCIC had incubated over 3 000 businesses in areas such as renewable energy, agribusiness, forestry, waste and water management. This is estimated to have generated nearly 40 000 jobs and enable half a million tonnes of CO2 emissions to be avoided. In recognition of its impact, KCIC was designated as the implementing agency of the “Promote Climate Technologies and Innovation” initiatives for 2018-2022 under Kenya’s Vision 2030 agenda.

Source:https://www.iea.org/reports/clean-energy-innovation-policies-in-emerging-and-developing-economies