PROJECT LIFE04 TCY/CRO/029. CAPACITY BUILDING FOR IMPLEMENTATION OF THE UNFCCC AND THE KYOTO PROTOCOL IN THE REPUBLIC OF CROATIA (CRO Climate Cap)

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1 PROJECT LIFE04 TCY/CRO/029 CAPACITY BUILDING FOR IMPLEMENTATION OF THE UNFCCC AND THE KYOTO PROTOCOL IN THE REPUBLIC OF CROATIA () THE LAYMAN'S REPORT BENEFICIARY Ministry of Environmental Protection, Physical Planning and Construction PARTNER EKONERG Energy Research and Environmental Protection Institute WITH THE CONTRIBUTION of the LIFE financial instrument of the European Community

2 INTRODUCTION > Convention and the Kyoto Protocol international respond to climate change The United Nations Framework Convention on Climate Change (UNFCCC) sets an overall framework for intergovernmental efforts to tackle the challenge posed by climate change. It recognizes that the climate system is a shared resource whose stability can be affected by industrial and other emissions of carbon dioxide and other greenhouse gases. The Convention enjoys near universal membership, with 192 countries having ratified. The adoption of the Convention in 1992 was a major step forward in tackling the problem of global warming. Yet as greenhouse gas (GHG) emission levels continued to rise around the world, it became increasingly evident that only a firm and binding commitment by developed countries to reduce emissions could send a signal strong enough to convince businesses, communities and individuals to act on climate change. Member countries of the UNFCCC therefore began negotiations on a Protocol an international agreement linked to the existing Treaty, but standing on its own. The Kyoto Protocol was adopted at the third Conference of the Parties to the UNFCCC (COP 3) in Kyoto, Japan, on 11 December The major distinction between the two, however, is that while the Convention encouraged developed countries to stabilize GHG emissions, the Protocol commits them to do so. Because it will affect virtually all major sectors of the economy, the Kyoto Protocol is considered to be the most far-reaching agreement on environment and sustainable development ever adopted. The Kyoto Protocol entered into force on 16 February > Croatian circumstances need for capacity building Croatia is a country that is particularly vulnerable to the impact of climate change due to its 5,800 km long coastline with 1185 islands, and its fragile agriculture and forestry with their social and economic significance. There is also the potential influence on hydrology, water resources, mainland and coastal ecosystems. Therefore, Croatia has cause for concern and is motivated to take an active part in international efforts aimed at finding practical solutions to combat climate change. The Republic of Croatia became a party to the Convention on 17 January 1996 when the Croatian Parliament passed the law on its ratification. As a country with economy in transition it assumed the responsibilities under Annex I to the Convention. The Kyoto protocol was ratified by the Croatian parliament on 27 April 2007, after almost five years of negotiation for flexibility regarding to the base year emissions under article 4.6. of the UNFCCC. Under this treaty Croatia will have to reduce the greenhouse gas emissions by 5% in the period in relation to the base year, i.e Finally, Stabilization and Association Agreement came into force in February 2005 followed by start of the accession negotiation between Croatia and the EU and harmonization with EU environmental acquis. The Layman's Report 2/11

3 Ministry of Environmental Protection, Physical Planning and Construction (MEPPPC) as a focal point for climate change in Croatia outlined the capacity building programme in the First National Communication 1 as the first step for addressing the climate change issues. The purpose of this multi-annual programme is to increase abilities and competencies of individuals and institutions to understand and deal with climate change, and particularly commitments arising from the Convention and the Kyoto Protocol. One of the biggest challenges was to ensure financial resources for its accomplishment in the coming years. MEPPPC decided to develop project proposal for submission to the European Community for financing under LIFE-Third Countries. > LIFE - Third Countries providing financial means to ends The specific objective of LIFE-Third Countries is to contribute to the establishment of capacities and administrative structures needed in the environmental sector and in the development of environmental policy and action programmes. Through this institutional and capacity building support, LIFE-Third Countries contributes to the strengthening of national environmental policies and therefore to the increase of environmental protection in the EU-bordering regions. In July 2004 project Capacity building for implementation of the United Nations Framework Convention on Climate Change and the Kyoto Protocol in the Republic of Croatia passed the final selection and was approved by the European Commission. 1 The Layman's Report 3/11

4 PROJECT OVERVIEW > Objectives and targets The main objectives of the project were to establish institutional, legislative, organizational and technical capacities and to promote education and public awareness related to climate change in order to prepare Croatia for implementation of the United Nations Framework Convention on Climate Change and fullfilment of commitments under the Kyoto Protocol. Specific objectives (targets) of the project were to: assess capacity building needs; develop implementation strategy with action plan; draft all the necessary legislation; prepare guidelines for sectoral operational programmemes i.e. energy, transport, industry, agriculture and waste management; establish effective implementation monitoring system; set up a system for implementation of the Kyoto flexible mechanisms (JI, CDM) and emission trading system; strengthen international collaboration on climate change issues; and network relevant institutions and programmemes To achieve these objectives project was divided in ten project tasks: Analysis and assessment of capacity building needs, National implementation strategy and action plan, Drafting of legislation, Guidelines for preparation of sectorial operational programmes Implementation monitoring mechanisms, Kyoto Protocol flexible mechanisms, Education and public awareness, International co-operation, Task management and reporting to EC, Task dissemination. > Results Task 1 Assessment of capacity building needs Assessment of capacity building needs for implementation of the UNFCCC and the Kyoto Protocol in Croatia provided situational analysis of internal strengths and weaknesses and external opportunities and threats related to current climate change policy and practice in Croatia. In that respect intensive stakeholder s consultations were organized to: raise awareness on commitments and their implications, facilitate discussion on barriers for implementation of the UNFCCC and the Kyoto Protocol and identify priority activities needed to overcome them. Selected examples of good practice from other developed and EIT countries were analyzed and presented with emphasis on effectiveness of capacity building activities and projects. The Layman's Report 4/11

5 Task 2 - National implementation strategy and action plan National strategy for implementation of the United Nations Framework Convention on Climate Change and the Kyoto Protocol in the Republic of Croatia and action plan is the key policy document which was prepared in the framework of this project. Strategy sets up short- (until 2012) and long-term objectives ( ) with overall goal to reduce greenhouse gas emissions by 5% in the period , relative to This objective should be achieved primarily by implementation of domestic costeffective mitigation measures and by establishment of emissions trading scheme in the beginning of Strategy and action plan was reviewed by the Working group which gave recommendations for its improvement. Formal adoption of National implementation strategy and action plan is envisaged through Plan for protection and improvement of air quality in Croatia in the first quarter of The strategy sets up following short-term objectives: Ratification of the Kyoto Protocol by Croatian Parliament Establishment of necessary structure for implementation of the Strategy Accelerate the transposition process of EU environmental acquis in the field of climate change Integrate climate change policy in sectorial strategies, particularly Energy strategy Active involvement in setting up a post-kyoto commitment period obligations Establishment of Climate Change Research & Development programme In the long-term, strategic objectives will be aligned with the common efforts of the EU toward less intensive carbon economy, where Croatia should take into account its national circumstances in regard to starting position and capacity of economy to achieve average EU level. Task 3 Drafting of legislation Several very important regulatory documents were drafted, including: Regulation on greenhouse gas emissions monitoring in the Republic of Croatia (enacted in January 2007) this regulation is a cornerstone for establishment of the national system for the estimation of anthropogenic greenhouse gas emissions by sources and removals by sinks under Article 5.1. of the Kyoto Protocol and implementation of Decision 280/2004 of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol. The Layman's Report 5/11

6 Regulation on unit tax, corrective coefficients and criteria for CO 2 emissions taxation (enacted in July 2007) - purpose of this regulation is twofold, first to impose price on carbon in order to stimulate operators to reduce CO 2 emissions and second to ensure stabile flow of financial resources needed to credit environmentally sound projects, particularly in renewable energy and energy efficiency. Regulation on trading of greenhouse gas emission allowances (draft) this regulation sets up an emission trading system compatible with Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC Regulation on Implementation of the Kyoto Protocol flexible mechanisms (draft) this regulation sets up an institutional framework and procedures for implementation of the Kyoto Protocol flexible mechanisms, i.e. Joint Implementation (JI) and Clean Development Mechanisms (CDM). Ordinance on the methods and conditions for the landfill of waste, categories and operational requirements for waste landfills (enacted in 2007) this ordinance stipulates recovery and utilization of landfill gas as operational requirement for waste landfill was prepared in co-operation with the MEPPPC s Waste department. Task 4 Guidelines for preparation of sectorial operational programmes The purpose of the guidelines is to provide techno-economic analysis of greenhouse gas reduction measures for the key emission sources in the following sectors: (1) Energy and transport, (2) Industrial processes, (3) Agriculture, and (4) Waste management. These guidelines were used as a background documents for preparation of National implementation strategy and action plan in part related to policies and measures and sectorial and/or emission source operational programmes. The approach used for preparation of guidelines is combination of top-down and bottom-up approach which has following main steps: (1) identification and technical description of emission reduction measures, (2) estimation of emission reduction potential and (3) estimation of marginal costs associated with implementation of technical measures. Task 5 Implementation monitoring mechanisms As a result of this task MEPPPC had submited 3 National Inventory Reports (NIR) in 2005, 2006 and 2007 and Second, Third and Fourth National Communication to the UNFCCC Secretariat according to principles, guidelines and standardized format prescribed by the UNFCCC. These comprehensive documents contains information on greenhouse gas emissions in Croatia from 1990 to 2005 as well as on implementation of climate change policies and measures. Documents can be downoloaded on The Layman's Report 6/11

7 Task 6 Kyoto Protocol flexible mechanisms The main objective of this task was to analyze implementation potential of flexible mechanisms under the Kyoto Protocol (JI, CDM, IET) and EU Emission Trading Scheme (EU ETS) in Croatia as supplements to domestic greenhouse gas mitigation measures. There are several deliverables which have been prepared in this task. Three of them are technical reports used for preparation of Kyoto flexible mechanisms strategy: - Implementation of the European Greenhouse Gas Allowance Trading Scheme (EU ETS) in the Republic of Croatia, - Development of National Greenhouse Gas Emissions Registry in the Republic of Croatia - Possibilities of Kyoto Protocol Flexible Mechanisms Implementation in the Republic of Croatia Task 7 Education and public awareness This task was executed by NGO Croatian Environment Education Centre (CEEC) which was chosen as external assistance on this project task because it is the only educational institution with substantial experience in the field of climate change in Croatia. CEEC has developed several multimedia educational tools, i.e. book entitled The Drop that Spills over the Glass, Climate change The World and Croatia which was published in January 2007 (ISBN ) accompanied with CD which contains electronic version of the book and presentation material for education, and also DVD with 20 minutes documentary about climate change and global warming from Croatian perspective. CEEC held 13 educational seminars for teachers and professors of geography, biology and chemistry as well as for NGOs in 9 counties across Croatia, with average number of 50 attendees per seminar. More than 1400 copies of book The Drop that Spills over the Glass, Climate change The World and Croatia was disseminated to institutions and participants of seminars. Task 8 International co-operation An excellent and productive co-operation was established with institutions from the Netherlands, namely Ministry of Housing, Spatial Planning and the Environment, Ministry of Economic Affairs and particularly governmental organization SenterNovem, which held three workshops in the Netherlands and Croatia related to implementation of the Kyoto protocol flexible mechanisms. Also, co-operation was established with Slovenian Environmental Agency in the field of establishment of National Registry. The Layman's Report 7/11

8 Task 9 Task management and reporting to the EC Each task in the project had a nominated task coordinator who was responsible for its coordination, execution and control. During execution of the project four Progress report, one Interim report and Final report were prepared and submitted to the LIFE Unit and the EC Monitoring team. Two in-country missions were organized in which progress and results of the projects were presented to delegates from the EC and the Monitoring team. Task 10 Taks dissemination Representatives of the project team held numerous public presentations during entire duration of this project. Project outputs were also presented on TV, radio and in newspapers. Ministry has also developed climate change portal within its official web site where all project deliverables are presented and available for download ( The Layman's Report 8/11

9 CONCLUSION The main objectives of the project were to establish institutional, legislative, organizational and technical capacities and to promote education and public awareness related to climate change in order to prepare Croatia for implementation of the United Nations Framework Convention on Climate Change and fullfilment of commitments under the Kyoto Protocol. Project entailed ten project tasks, i.e. (1) Analysis and assessment of capacity building needs, (2) National implementation strategy and action plan, (3) Drafting of legislation, (4) Guidelines for preparation of sectorial operational programmemes (5) Implementation of monitoring mechanisms, (6) Kyoto Protocol flexible mechanisms, (7) Education and public awareness, (8) International co-operation, (9) Task management and reporting to EC, (10) Task dissemination. Relatively wide scope of the project is based on recommendations from the First National Communication of the Republic of Croatia to the UNFCCC which has outlined the need for implementation of capacity building programmeme which should set up a framework for systematic addressing of climate change mitigation issues. This should be achieved in accordance with obligations in different articles of the UNFCCC and the Kyoto protocol, which are further elaborated in Conference of Parties decisions and guidelines. Ministry has also taken special concern in this project to obligations that arises from harmonization of Croatian legislation to the EU environmenal acquis and its effective implementation afterward. Rather than focusing on one particular topic, Ministry has decided to build its capacities on different, yet complementary fields of climate change policies and instruments in the field of mitigation. In this regard results of the project presented in this report, particularly implementation strategy and action plan, represent cornerstone for future activities in combating climate change in Croatia. Finally, capacity building for combating climate change is not a one-off but rather continuing investment in people, institutions, information, knowledge and technologies that together enable Croatia to fulfill its commitments under the Convention and the Kyoto Protocol. That is why we re moving forward! The Layman's Report 9/11

10 MOVING FORWARD Project is by definition a temporary endeavor undertaken to create unique product or service. This means that it has its definite beginning and end. However, this project sets up foundations and support for follow-up actions in tackling climate change in Croatia. Immediately after project has officially ended in October 2007, in the framework of CARDS 2004 programme, MEPPPC has started with preparation of National Allocation Plan (NAP) and establishment of National Registry which are required for greenhouse gas emission trading between companies covered by this unique system. In the beginning of 2008 Ministry of Ministry of Economy, Labor and Entrepreneurship ordered updating and upgrading of Croatian Energy strategy and implementation programme. This assignment was entrusted to international consortium led by EKONERG which was a partner to MEPPPPC in this LIFE project. One of the main objectives is to prepare climate friendly energy strategy which shall incorporate principles and goals defined in National strategy for implementation of the United Nations Framework Convention on Climate Change. The Layman's Report 10/11

11 CONTACT & INFORMATION EXCHANGE > Beneficiary Ministry of Environmental Protection, Physical Planning and Construction Visnja Grgasovic, Head of Department for Climate Change and Ozone Layer Contact details: Phone Fax visnja.grgasovic@mzopu.hr URL > Partner EKONERG Energy Research and Environmental Protection institute Davor Vesligaj, Atmospheric Protection Department Manager Contact details: Phone Fax davor.vesligaj@ekonerg.hr URL > Project web site The Layman's Report 11/11