Name of organization(a):

Statens energimyndighet⁽¹

Name of organization (English):

Swedish National Energy Administration

Department:

Secretariat for Climate Policy and International Cooperation

- EAES Programme

Acronym:

STEM

Acronym (English):

STEM

Function within activity:

Assigned by the Swedish Government for Implementation including financing arrangements.

Street:

Kungsgatan 43, P.O. Box 310

Post code:

SE-631 04

City:

ESKILSTUNA

Country:

Sweden

Telephone:

+46-16 544 20 00

Fax:

+46-16-544 22 64

E-mail:

klas.tennberg@stem.se

WWW-URL:

http://www.stem.se

Contact person (for this activity):

-------------------------------------

Surname:

Knutsson

First name, middle name:

Gudrun

Job title:

Head of Section, Climate Investment Programme

Direct telephone:

+46-16-544 20 72

Direct fax:

+46-16-544 22 64

Direct E-mail:

gudrun.knutsson@stem.se

Name of organization(a):

Eesti Vabariigi Keskkonnaministeerium

Name of organization (English):

Ministry of the Environment of the Republic of Estonia

Department:

International Relations Department

Acronym:

EKM

Acronym (English):

MoE

Function within activity:

Estonian Climate Responsible Organisation

Street:

Toompuiestee 24

Post code:

EE 0100

City:

Tallinn

Country:

ESTONIA

Telephone:

+372 62 62 800

Fax:

+372 62 62 801

E-mail:

Min@ekm.envir.ee

WWW-URL:

http://www.envir.ee

Contact person (for this activity):

-------------------------------------

Surname:

Kratovits

First name, middle name:

Andres

Job title:

Councellor

Direct tel:

+372-62 62 841

Direct fax:

+372-62 62 845

Direct E-mail:

andres@ekm.envir.ee

Name of organization(a):

Name of organization (English):

Ministry of Environmental Protection and

Regional Development of the Republic of Latvia

Department:

Environmental Protection Department

Acronym:

VARAM

Acronym (English):

Function within activity:

Latvian Climate Responsible Organisation

Street:

Peldu Str. 25

Post code:

LV 1494

City:

RIGA

Country:

LATVIA

Telephone:

+371-7 026 508

Fax:

+371-7820 442

E-mail:

erna@novell.gov.lv

WWW-URL:

Contact person (for this activity):

-------------------------------------

Surname:

Apene

First name, middle name:

Ingrida

Job title:

Senior Official

Direct tel:

+371 - 7 026 508

Direct fax:

+371 - 7 820 442

Direct E-mail:

erna@novell.gov.lv

Name of organization(a):

Aplinkos Apsaugos Ministerija

Name of organization (English):

Ministry of Environment of the Republic of Lithuania

Department:

Dept. for Environmental Quality

Acronym:

AAM

Acronym (English):

EPM

Function within activity:

Assigend by the Lithuanian Government for activities implmented jointly

Street:

A. Jaksto 4/9

Post code:

LT 2694

City:

VILNIUS

Country:

LITHUANIA

Telephone:

+ 370 – 2 610 558

Fax:

+ 370 – 2 220 847

E-mail:

atm@nt.gamta.lt

WWW-URL:

http://www.gamta.lt

Contact person (for this activity):

-------------------------------------

Surname:

Bilkis

First name, middle name:

Mindaugas

Job title:

Director of Environmental Quality Dept.

Direct tel:

+370 – 262 54 88

Direct fax:

+370 - 2 61 11 30

Direct E-mail:

atm@nt.gamta.lt

Activities implemented jointly should be compatible with and supportive of national environment and development priorities and strategies; In the selection process of the projects appropriate local and national authorities are informed about the planned project. These authorities give their first endorsement and in some cases the initial project proposals are channelled through the national energy/environment authorities. As soon as relevant documents (feasibility study, business plan and Letter of Intent) are available stating the basic features of the project, including estimated environmental and climate effects, these documents are handed over to the National AIJ Authority for approval in the form of a letter. In this letter both AIJ Authorities give their confirmation of the project to be regarded and reported as an AIJ project.

Activities implemented jointly should contribute to cost effectiveness in achieving global benefits; The investment part of the projects are financed by loans. The economy of the project shall allow for repayment of the loan and also generate a profit. The implementation of the projects also aims at cost effectiveness. As an example - procurement is made in open competition, where local and foreign companies participate. All consultant services for investigations, prefeasibility studies, advice during the implementation and commissioning of the project as well as follow-up activities are grant parts which are paid by the Lender/STEM and thus not included in the loan sum.

Activities implemented jointly under this pilot phase require prior acceptance, approval or endorsement by the Governments of the Parties participating in these activities;

The Swedish Government has initiated a process of bilateral agreements/understandings with the relevant Government Ministry in the partner countries concerning AIJ reporting. There are mutual understandings reached, although in some cases the administrative process has not yet been finalised. Furthermore each project shall have prior acceptance of both parties.

Activities implemented jointly should 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;

Additionality is in many cases linked to over-coming of barriers.

Restraining factors in the host country for the implementation of projects within the EAES-programme have been a. o.

• that local investment funds are not available allowing financing at reasonable costs as long-term loans are not available at reasonable interest rates
• a weak local tradition to apply the technologies focused upon in the EAES Programme, using wood waste from industry or from forest operations as fuel, or applying an up to date technology for energy saving. Consequently the local technology for the applications has largely been missing.

These factors still restrain a local development, notwithstanding the fact that the technology development and local tradition have progressed rapidly as a consequence of not least the EAES Programme. The EAES-programme concentrates on investments in the municipal sector with foreseeable and long-term energy consumption.

The financing of activities implemented jointly shall be additional to the financial obligations of Parties included in Annex II to the Convention within framework of the financial mechanism as well as to current official development assistance (ODA) flows;

The Swedish EAES-programme is financed from funds for climate issues allocated by Ministry for Industry, Communications and Employment which is the government ministry responsible for Swedish energy policy. These funds are separated from development assistance funds.

Criteria applied nationally

Important selection criteria for projects are a combination of the factors - high specific CO₂ reduction in relation to investment, the project demonstration value and the sustainability of the climate effect of the project. This implies:

• High specific CO₂-reduction, i e reduction in relation to cost of investment is achieved through the selection in the first place of RES projects, conversion of base-load boilers to use wood fuel. High climate effects show also landfill gas projects.

The project demonstration value. In countries, where a technology has been demonstrated in some installations, priority is given to proposals meaning an extension of an existing project or to applications using a technology which has not been demonstrated previously in the country, even if the specific CO₂-effect is not so high. In those cases the projects have a value added effect as regards sustainability, cost-efficiency and in the end indirect climatic effects, for instance, in the form of decreased demand for heat produced in fossil fuelled boilers at peak demand occasions and, in its turn, avoided investment costs for production.

Borrower’s ability and motivation to enlarge the activity. The selection of an application with a good economy, like a base-load wood-fuelled boiler, allows for a positive cash-flow. The amount that is not needed to cover loan costs allows the borrower to make further RUE or RES investments. An important criterion in the selection of a project is the qualification and motivation of the borrower’s staff to implement the project and to further develop their energy system. An important factor is then institutional co-operation that can be established with the borrower's/plant owner's staff.

Long-term sustainability of the project through selecting installations where heat to a large extent is used for comfort heating. Projects are generally selected where project owners belong to a municipal administration or organisation In some cases projects are selected in industries, where a large part of the heat load is attributable to surrounding housing stock. In case the industry would stop operating, the heat supply from the boiler would prevail.

Short-term sustainability is promoted through the follow-up or consolidation programme combining technical support and knowledge transfer for follow-up programmes.

In accordance with the general approach in Sweden’s climate policy, underlining a pragmatic approach, the selection of AIJ-projects focuses on projects meeting the following requirements:

• Projects shall be implemented quickly, meaning that priority is given to small and medium-sized project, which do not call for complicated co-ordination or require lengthy feasibility and design works. The motivation of the project owner is also an important selection criterion. However, the project is always evaluated against its effects from the point of view of the total situation for the heating company as regards its future economy and its total heat supply obligations.
• Projects shall be affordable, meaning that the avoided costs of the formerly used fossil fuel pay for the new equipment and the new fuel within a reasonable time, usually shorter than the maturity period of the loan.
• Projects shall be reliable, meaning that the technology used should have proved to function well in earlier projects and that there will be no experimenting on the behalf of the borrower.
• A partnership relation, involving institutional co-operation with the borrower’s staff, shall be feasible.