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ACTIVITIES IMPLEMENTED JOINTLY (AIJ)

List of Programmes

1. Designated national authority for activities implemented jointly

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 Accordingly, 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

The fact that the criteria for JI were not yet determined when the programme was launched was not 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 îSweden 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.î

The programme is financed through special allowances from the Government Budget. Up to 1997 altogether a sum of MSEK 290,5 (around 40 MUSD) has been allocated to the programme. NUTEK, the Swedish National Board for Industrial and Technical Development, is assigned by the Government to implement the programme, which is mostly known as the EAES Programme, the Swedish Programme for an Environmentally Adapted Energy System in the Baltic region and Eastern Europe. According to the Swedish Energy Bill 1997, adopted by Parliament in June 1997, further resources of around 50 MSEK for investment projects are to be allocated annually to the Programme during the coming seven years. Furthermore, around 10 MSEK are to be allocated annually during the same period for R&D cooperation with and technology tranfer to the countries in the Baltic Sea region and Eastern Europe to support a sustainable development of the energy systems in these countries as supplement to the investment activities within the EAES Programme. The EAES Programme is adapted in line with the criteria for the pilot phase of Activities Implemented Jointly as agreed upon at the first conference of the Parties in Berlin in April 1995.

When the Programme was started in 1993 it was introduced to the Government of Latvia which assigned the ministry responsible for energy, Ministry of Economy, Energy Department, to act as counterparttogetheter with Latvian Energy Agency for the selection and endorsement from energy point of view as well as from environmental and climatic point of view. During the years thereafter, following the development of the FCCC criteria for Joint Implementation - Activities Implemented Jointly, direct contacts for approval and endorsement have been developed also with the Ministry for Environment and Regional Development in Latvia. Today both ministries are involved in the endorsement of the projects and reports and information on the projects are provided to and discussed with both ministries.

In the follow-up activities the climate data required in the uniform reporting format are to be included together with other operation and performance data.

With reference to the positive effects of measures undertaken in Sweden in the energy sector in order to improve the environment and the climate, the NUTEK activities in the Baltic States and Eastern Europe are considered as an important step and a contribution to the work of developing a system for joint implementation in line with the obligations in the UN Framework Convention on Climate Change.

The programme, so far, mainly consists of the following three types of project:

ï Conversion of heat production plants to the use of biofuels

ï Reduction of heat losses in district heating systems

ï Energy efficiency in buildings

The activities are directed towards the heating systems: heat production, heat distribution and the residental sector, as Sweden in these areas can offer the required well-developed technology. To that can be added that the preconditions, i.e. forest resources, in the countries concerned are favourable for a conversion to the use of domestic biofuels. Other important issues in the co-operation are the possibilities to supply with thoroughly tested, energy efficient technology at affordable prices together with the transfer of know-how and training which is also a prequesite to giving the measures a lasting result and an inspiration to initiate further improvements within the framework of domestic programmes in these countries.

Besides climatic and environmental effects and energy savings there is also a demand for cost-efficiency and participation by the plant owner during all the steps in the process of a project. The projects are financed by loans from NUTEK to the owners of the plants. The conditions for the loans from NUTEK are in conformity with those applied by international finance institutions. The repayment time is maximum ten years and usually two years grace period are applied. Normally the projects show good profitability with short pay-off periods, around 3-5 years for boiler conversion projects. All repayments, including interest, are made to a special income account and are then to be returned to the programmeís allowance account to finance future projects. In addition to loans NUTEK is providing consultancy assistance to the plant-owner. The consultancy costs are paid by NUTEK and is thus not included in the loan. The consultants acts as advisors to the plant-owners during the whole implementation phase, i.a. in connection with procurement of equipment and works which are undertaken in open competition, and during the commissioning of the plant.

The projects are followed and evaluated from technical and economic points of view by local experts. Such evaluations are proven to be most important for future projects. In February 1995 and in November 1996 special measurement programs and performance tests were carried out of boiler conversion projects implemented in Estonia, Latvia and Lithuania allowing also for comparisons between different projects. These tests were made by Swedish specialists with the assistance of local staff in the boiler houses.

a) For example using 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.