CC:INFO/AIJ: Mustamäe, Vilde tee Energy Efficiency

Annex I UNIFORM REPORTING FORMAT:

ACTIVITIES IMPLEMENTED JOINTLY UNDER THE PILOT PHASE

A. Description of project

1) Title of project:

Mustamäe, Vilde tee Energy Efficiency

2) Participants/actors:

Please fill in one table for each participant/actor. For individuals fill in as from item Function within activity".

Item	Please fill in if applicable
Name of organization(a):	Närings- och Teknikutvecklingsverket
Name of organization (English):	Swedish National Board for Industrial and Technical Development
Department:	Environmental Energy System in the Baltic Region and Eastern Europe.
Acronym:	NUTEK
Acronym (English):	NUTEK
Function within activity:	Assigned by the Swedish Government for Implementation including financing arrangements.
Street:	Liljeholmsvägen 32
Post code:	S-117 86
City:	Stockholm
Country:	Sweden
Telephone:	+46-8-681 96 07
Fax:	+46-8-681 96 67
E-mail:	gudrun.knutsson@nutek.se
WWW-URL:	http://www.nutek.se
Contact person (for this activity):	-------------------------------------
Surname:	Liib
First name, middle name:	Aili
Job title:
Direct tel:	+46-8-681 96 72
Direct fax:	+46-8-681 96 67
Direct E-mail:	aili.liib@nutek.se

Item	Please fill in if applicable
Name of organization(a):	Estonian co-reporter
Name of organization (English):
Department:
Acronym:
Acronym (English):
Function within activity:	(standard classifiers to be developed)
Street:
Post code:
City:
Country:	ESTONIA
Telephone:
Fax:
E-mail:
WWW-URL:
Contact person (for this activity):	-------------------------------------
Surname:
First name, middle name:
Job title:
Direct tel:
Direct fax:
Direct E-mail:

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 activity.

3) Activity:

Item	Please fill in if applicable
General description:	Mustamäe District of Tallinn was built in the 1960`s and 1970`s.There live about 80 000 persons in 20 000 flats.The actual buildings were built in 1964-65. The framework is precast concrete elements and walls are of plastered light weight concrete. The roof is flat and had many leaks causing considerable energy losses. The buildings have open and one-pipe heting systems connected to district heating. No regulation of incoming heat or for the local heat and hot water inside the buildings.
Type of project :a)	energy efficiency
Location (exact, e.g. city, region, state):	Mustamäe district Tallinn town ESTONIA
Activity starting date:	13. January 1994 (Letter of Intent)
Expected activity ending date:	31. March 2004
Stage of activity:b)	Complete
Lifetime of activity if different from ending date:c)
Technical data:d)	Renovation and insulation of the roof, wheatherstripping of windows, new ventilation regulators in showerrooms new substation including heat exchangers, domestic hotwater circulation,expansion tanks, main pipe control valves and balancing the heating system, exchanging old and leaking pipes including new insulation

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 are.

4) Cost (to the extent possible):

Item	Year 0 = 1994	Year 1 = 1995	Year 2 = 1996	Year 2 -9	Year 10
Cost of the project in US$:	366000
AIJ component in US$:	120000	6700	6700
US$ per avoided ton of CO2 equivalent:	40	22	22

Describe briefly how costs are determined:

The investment proper is calculated to be 367.000 USD and technical support 120.000 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 commissioning.

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 country.

5) Mutually agreed assessment procedures:

Describe the procedures, including name of organizations involveda):

It is intended that upon agreement with a central Estonian authority on reporting of JI-projects, this authority will assign a local organisation, which will be involved in the evaluation of the climate effects of this project. After an initial work in cooperation with NUTEKís assigned consultant, this local organisation will take the main responsibility the continued measuring for JI-reporting.

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 follows:

(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 participating Parties.

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

terminated earlier

Describe:

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 projects.

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

Describe (to the extent possible) how the activity is compatible with and supportive of national economic development and socio economic and environment priorities and strategies

The project meets the following objectives in the Estonian Energy Law:

- efficient use of energy resources;

- creation and usage of energy efficient technologies, fuel/energy consuming and diagnostic equipment, construction and insulation materials; energy flow metering and control devices, automated energy consumption control systems;

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.)

Item	Please fill in
Describe environmental benefits in detail:	Annual emissions reduction 300 ton CO2 2.6 ton SO2 0.20 ton NOx
Do quantitative data exist for evaluation of environmental benefits?	No.
Describe social/cultural benefits in detail:	The inhabitants have become much more aware of environmental aspects.Tenants and neighbors find that they can see "the light in the tunnel" - they have common positive issues to discuss. This creates of course unity and identity.The process gives also as result a form of self-identity and proudness to take part in the evolution. Looking at the actors in the process from local manager to architekts, ingeneers, suppliers they receive an example how to act commercially and at the same time keep the ethics in business. A much better living comfort is created.
Do quantitative data exist for evaluation of social benefits?	No.
Describe economic benefits in detail:	Energy bill decreases by about 20 %.The experiences from this project encouraged the actors to go further with new projects.
Do quantitative data exist for evaluation of economic benefits?	No

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.

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 reductions:

	GHG	Year 1	Year 2	...	Year 10
A) Project baseline scenario	CO2	300	300		300
	CH4
	N2O
	other
B) Project activity scenarioa)	CO2	0	0		0
	CH4
	N2O
	other
C) Effect ( B-A )	CO2	- 300	- 300		- 300
	CH4
	N2O
	Other
D) Cumulative effect	CO2	- 300	- 600		- 3000
	CH4
	N2O
	Other

a) Includes indirect GHG leakageís.

Summary table: Actual emission reductions:

	GHG	Year 1 = 1995	Year 2 = 1996	...	Year X
A) Project baseline scenario	CO2	300	300
	CH4
	N2O
	other
B) Project activity scenarioa)	CO2	0	0
	CH4
	N2O
	other
C) Effect ( B-A )	CO2	-300	-300
	CH4
	N2O
	Other
D) Cumulative effect	CO2	-300	-600
	CH4
	N2O
	Other

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.

Category of funding

(For each source one line)

Amount

(US dollars)

Loan from NUTEK

367000 USD

Grant from NUTEK for technical assistance

120000 USD

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

Transfer of environmentally sound technologies and know-how

Describe briefly

Schematically, the transfer of knowledge involves the following activities over time:

i) Technology transfer through NUTEKs technical specialist during the implementation of the project.

ii) Technology transfer through cooperation between foreign supplier and local partner

iii) Conferences, seminars, documentation and training.

iv) Stimulate înet-workingî for the exchange or experience between plant owners with similar problems, e g îbio-clubsî.

Technology transfer has taken place through

i) NUTEKs technical specialist support to the local project leader and municipality. ii) technology transfer through cooperation between foreign consultants, supplier and local consultant and building constructor.

iii) personal involved in the project have been invited to different seminars and work-shops.

stimulate cooperation with local experts,consultants to achieve two-way communication and to find respect for chosen solutions from both sides.
Involve professional groups besides energy experts i e architects, construction engineers, firesecurity experts and so on to achieve optimal solutions and to secure other aspects such as estetical.

Endogenous capacity supported or enhanced:

Endogenous capacity

(Name of organization1)

Development (DEV) /

enhancement (ENH)

Describe briefly

Mustamäe District Administra-

tion of City Tallinn

(DEV or ENH)

The local project leader has been an important person who continues the energy efficiency projects in larger scale and informs others interested.

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: Detailed drawings give better results.

2) Technical difficulties: 1. How to best regulate the the natural ventilation.

How to correctly tighten the element joints in the outdoor

walls.

3) Effects encountered:

4) Impacts encountered:

5) Other obstacles encountered:

Other: 1. Better results would be achieved if most of the vertical pipes were possible

to change, and radiator regulators were installed on the fifth floor.

NEGOTIATIONS

FOCUS

PROCESS

KEY STEPS