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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)
ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE
A. Description of project
1) Title of project:
Boiler plant in Paldiski
Please fill in one table for each participant/actor. For individuals fill in as from item Function within
a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc. involved in the
activity, i.e. research institutes associated with the project, auditors, government agency closely following the
a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency; renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation; fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.
b) Circle the appropriate option.
c) Methodological work will be required to define lifetime of activities.
d) Methodological work will be required to determine for each type of activity what the minimum data requirements
4) Cost (to the extent possible):
Describe briefly how costs are determined:
The investment proper is calculated to be 826.666 USD and technical support 75.211 USD.
The lifetime or the project is foreseen to be minimum 10 years (corresponding to the maturity period of the loan).
The following definitions are used:
Cost for the project in year 0:
Costs for investment (= loan from NUTEK) and technical assistance (= grant from NUTEK) are summarized over the
investment period (up to the time for commissioning) and stated for year 0, being the year of the date for
Cost for the project in consequtive years:
Costs (i e possible costs for investment and costs of AIJ component character) are shown per calender year. Year 1
represents part of the calender year after the date of commissioning.
AIJ component in year 0:
The costs for technical assistance up to commissioning have a clear character of AIJ component. The costs for the
investment can also be maintained to have the an AIJ character, as the loan is a cost for the host country, and as
the loan represents a business risk for the financier, NUTEK.
AIJ component in consequtive years:
Consist a o of the following parts:
1. Costs for follow-up after the date of commissioning (information exchange to secure a high utilisation of the investment + costs for measuring and reporting to FCCC). The cost for follow-up for the years up to and including 1996 is calculated by dividing NUTEKs total costs for follow-up by the total years of operation of all NUTEK-financed projects.
2. Difference between a market interest rate and the favourable interest rate (STIBOR) which NUTEK applies. This can be settled between the co-reporting parties annually.
3. Business risk.
US $ per avoided ton of CO2 equivalent equals:
- at year 0 the cost of the project/AIJ component cost divided by the projected decrease in CO2 emission over the 10 year lifetime of the project
- for consequtive years the cost of the project/AIJ component divided by actual figure for decrease of
CO2 emission for each of the years 1 - 10.
Note: Possible costs for organisations in the host country may be suggested by the co-reporter in the host
5) Mutually agreed assessment procedures:
a) Please ensure that detailed contact information for all organizations mentioned is reported under
section A.2 above.
B. Governmental acceptance, approval or endorsement
Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance, approval
or endorsement by the Governments of the Parties participating in these activities, which shall be shown as
(a) In the case of joint reporting, the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached letters issued
by the relevant national authorities;
(b) In the case of separate reporting, the reports are submitted separately by the designated national authority of
each and every participating Party. Information will only be compiled once reports have been received from all
1) For the activity:
* First report and joint reporting: Agreement with designated national authority is planned to be signed
summer or autumn 1997.
* Subsequent reports:
Activity was: suspended
2) This report is a joint report:
Yes, Agreement with designated national authority is planned to be signed summer or autumn 1997.
3) General short comment by the government(s) if applicable:
Comment by the Swedish government
The Swedish Parliament decided already in 1993 to establish a program for what was later to be known as AIJ
The decision stemmed from the perception that Swedish mitigation costs were relativeliy high when compared to most countries especially some of our neighbouring countries Acccordingly, Swedish policy against climate change should include promotion of activities in these countries.
The relatively high mitigation costs in Sweden are caused by a high share of non-fossil energy in the energy
balance, efficient use of energy due to high carbon dioxide taxes and programmes for the introduction of renewables
as well as for increased energy efficiency. (The background is more fully described in the Swedish national report
to the FCCC)
In the bill leading to the establishment of the programme now reported the minister of energy in 1993 declared that
Sweden immediatelly should take action to assist the Baltic countries to make their energy system more efficient.
Such actions were seen to be in accordance with the notion of JI as conveyed in the FCCC. They should also
contribute to the cost-effectiveness of Swedish measures against climate change . The minister also underlined in
his message to the Parliament that Sweden should have a pragmatic approach in her climate change policy
That the criteria for JI were not yet determined when the programme was launched was not to be considered as any
obstacle for the promotion and introduction of Swedish climate change policy initiatives in the Baltic countries,
Poland and other East European countries. Such measures should be seen as an initial step towards an efficient,
sustainable and equitable international climate strategy.
In the Swedish energy agreement of 1997 it was concluded that "Sweden shall, as a member of the European
Union, work towards a common climate policy and should actively promote international cooperation in the climatic
field. In particular, Sweden shall engage in the development of efficient policy means within the framework of the
climate policy of EU and the Framework Convention on Climatic Change. Sweden should also cooperate with other
countries in the way envisaged by the Climate Comvention, through so called joint implementation."
C. Compatibility with and supportiveness of national economic development and socio economic and environment
priorities and strategies
D. Benefits derived from the activities implemented jointly project
Whenever possible, quantitative information should be provided. Failing that, a qualitative description should be
given. If quantitative information becomes available, it could be submitted using the update(s). (If the amount of
quantative information is too large, the source could be indicated.)
E. Calculation of the contribution of activities implemented jointly projects that bring about real, measurable
and long-term environmental benefits related to the mitigation of climate change that would not have occurred in
the absence of such activities
1) Estimated emissions without the activity (project baseline):
Description of the baseline or reference scenario, including methodologies applied:
The reference scenario represents at status quo situation. The decrease in energy consumption that followed after
1990 is assumed to have reached full impact, meaning a stable heat consumption over the life-time of the project.
Loan from NUTEK is so far one of the very few sources to finance this type of investments for municipalities in
Estonia. As this would imply that an alternative investment would not have taken place, neither the consequence of
another investment, nor the consequence of an alternative technical solutions are considered.î
2) Estimated emissions with the activity:
Description of the scenario, including methodologies applied:
Cf. E.1. above.
Fill in the following tables as applicable:
Summary table: Projected emission reduction s:
a) Includes indirect GHG leakages.
Summary table: Actual emission reductions :
a) Includes indirect GHG leakages.
F. Additionality to financial obligations of Parties included in Annex II to the Convention within the framework
of the financial mechanism as well as to current official development assistance flows
Please indicate all sources of project funding.
1 USD = 7.50 SEK
G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to other
Parties, particularly developing country Parties, to enable them to implement the provisions of the Convention. In
this process, the developed country Parties shall support the development and enhancement of endogenous capacities
and technologies of developing country Parties
Endogenous capacity supported or enhanced:
1) Please ensure that detailed contact information for all organizations listed is reported under section A.2 above
H. Additional comments, if any, including any practical experience gained or technical difficulties, effects,
impacts or other obstacles encountered
Fill in as appropriate:
1) Any practical experience gained:
2) Technical difficulties: The boilerhouse area was contaminated with oil, which caused extra costs during
3) Effects encountered:
4) Impacts encountered:
5) Other obstacles encountered: The low production during the first season is mainly caused by problem with
fuel supply ( too high prices.)