Low Emissions Development Strategies Training Series Module 4: LEDS Policy Options Selection & Design

The module is designed to guide countries in selecting and designing effective LEDS policy options. The LEDS process involves a step-by-step approach to policy selection and design, consisting of 10 steps. These steps include organization and goals, baseline development, policy options identification, policy screening and prioritization, initial policy option design specifications, direct impacts assessment, policy options integration and overlap, indirect impacts assessment, final recommendations and report transmittal, and monitoring, reporting, evaluation, and updating. The module focuses on assessing a menu of potential LEDS policy options and mechanisms, including sector-specific and cross-cutting options catalogs or databases. It also emphasizes the importance of screening-level assessment and prioritization of options for goal alignment, such as economic, energy, and environmental (E3) potential. The module highlights the need for a top set of policies in each sector to address low-carbon development (LCD) planning goals. It also notes that the total number of options typically includes up to ten in each sector, or potentially 50 overall, and that in-depth feasibility analysis is needed for each option and all integrated together. The screening process involves a stepwise framework, including assembling a complete list of policy options/mechanisms for each sector, determining appropriate screening criteria, populating a matrix with benchmark or expert ratings for each criterion, evaluating results using multi-criteria analysis, iterating through group review, discussion, and modifications if needed, and selecting priorities. The module also discusses policy catalogs, which provide a list of potential policy options and their potential impacts on greenhouse gas (GHG) emissions, carbon intensity, and other macroeconomic and microeconomic indicators. The catalogs include examples of policy options, such as renewable portfolio standards, green power purchases and marketing, and grid-based renewable incentives or barrier removal. The module emphasizes the importance of using multi-criteria analysis (MCA) as a screening and prioritization tool. MCA supports group decisions and discussions, enables peer learning and exchange, reveals informed preferences, identifies synergies and comparative effects, enables conflict resolution and consensus, and accommodates variations in values. The LEDS screening metrics include GHG reduction potential, carbon intensity, economic impacts, energy security and sustainability, environment, resource sustainability and efficiency, and equity and fairness for individuals, groups, and locations. These metrics are used to evaluate the potential impacts of policy options and to identify the most effective options for achieving LEDS goals.