Time to Change. Central and Eastern Europe and the Global Climate

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1 Time to Change Central and Eastern Europe and the Global Climate

2 Black Sea Adriatic Sea Mediterranean Sea Baltic Sea

3 Central and Eastern Europe and Climate Change Warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice and the rising global average sea level. Climate Change 2007: Synthesis Report produced by the Intergovernmental Panel on Climate Change A general framework for global activities to combat climate change was created by the United Nations Framework Convention on Climate Change (UNFCCC) in The Kyoto Protocol (KP) to the Convention, which entered into force in 2005, sets legally binding targets for reducing emissions of greenhouse gases (GHG) produced by industrialised (or Annex I) countries. Annex B to the protocol lists the individual emissions targets for Annex I Parties. The KP requires not only green technology but also institutional changes and the introduction of policies and measures to tackle the problem of climate change. The countries of Central and Eastern Europe (CEE) face specific challenges in implementing the UNFCCC and the KP. These countries experienced recession at the beginning of the market transition, leading to a drastic reduction in GHG emissions (in particular in the energy supply sector) relative to the base-year level. This reduction was due not only to the low level of economic production but also to changes in both policy and technology. Most of the heavily polluting and energy-intensive industrial plants were closed or reconstructed while power and heating plants were made more energy efficient. In 2006, national GHG emissions in this region (with the exception of Slovenia) were still below the base-year emission by between 10 and 55 percent. It is therefore likely that they will have no problem in achieving their targets in the first commitment period (until 2012). Nevertheless, energy intensity and per capita GHG emissions are still high in these countries. GHG emission projections suggest a significant increase due to growing demand for power supply, an expanding iron and steel industry, and the increasing intensity of transport. It is therefore essential to exploit the many existing opportunities for further GHG emission reductions, to improve energy supply efficiency and to increase the share of renewables in the energy mix. Climate change is also being addressed as a priority issue in the non-annex I countries of South Eastern Europe (SEE) and in Turkey, which is in the unique situation of being listed in Annex I but not in Annex B. Rising temperatures and changes in precipitation patterns, resulting in both floods and droughts, have already impacted the region, while the rapid economic development in these countries is expected to accelerate GHG emissions. CEE countries have already ratified the KP, which makes them eligible for Clean Development Mechanism (CDM) projects, a potential channel for foreign investments and technology transfer. Project-based mechanisms leading to GHG emissions reductions benefit both the host and the investor countries. Compared to Western Europe, knowledge of climate-related issues, access to information and public participation are limited. Awareness raising is essential among all stakeholders politicians, the business and finance sector, NGOs and the public. In CEE, activities addressing climate change can be grouped under the following themes: l mitigation, l adaptation l flexible mechanisms; and l education, training and public awareness.

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5 Mitigation Although new EU member states are obliged to increase the share of renewables in the energy mix, renewable energy (RE) projects do not always succeed due to the poor quality of proposals, complicated approval procedures, uncertain property ownership and long investment horizons. Grid connection, transmission and distribution are also problematic. In these countries, there is huge potential for efficiency gains and thus for limiting the growth in energy demand, especially in the industrial, transport, construction and public sectors. According to EC Directive 2006/32, member states should set indicative targets by 2016 (as well as intermediary targets). However, according to the new Energy Directive, which has not yet been adopted, targets must be at least 20 percent by The greatest reductions in energy intensity have been achieved in the industrial sector. The greatest potential for efficiency is in household heating and construction, although there are big financial and administrative barriers and a general lack of awareness that can only be addressed by societal change in the form of active participation and cooperation on the part of low-income homeowners, housing associations and financing institutions. Workshops Promoting Renewable Energy in South Eastern Europe through International Cooperation (Zagreb) The goal of the event was to discuss compliance with EU policies, regulatory and economic instruments, and financial support schemes. Participants represented a wide range of stakeholder groups, including EC and government officials, energy agencies, energy regulators, research institutes, renewable energy companies and investors.

6 Renewables Connection to the Network and Distributed Generation (Budapest, Zagreb) The workshops focused on information exchange, solutions to legislative and technical problems related to the connection of RE to the grid, and distributed generation. The targeted stakeholder groups were energy regulators and energy experts from CEE, Turkey and the Newly Independent States. Environmental and Social Housing (Budapest, London, Szentendre) This series of events provided opportunity to explore the topic of energy efficiency in apartment blocks and a new energy efficiency financing mechanism for low-income homeowners. Targeted stakeholder groups were housing associations and international energy and financial experts.

7 Projects Intelligent Energy Saving Measures for Municipal Housing in CEE Countries (INTENSE) The project promotes the transfer of intelligent energy-saving measures from old EU member states to new member states and accession and candidate countries in CEE. Facilitating ESCO Projects in the Health Care Sector The project aimed to develop a model for the implementation of energy performance contracts for energy services companies (ESCO). The contracts were made with Polish hospitals with the hope of replicating them in other CEE countries. Flexible Mechanisms The UNFCCC and its Kyoto Protocol represent an enormous challenge for the countries of CEE, which must realise economic restructuring while reducing GHG emissions. The protocol contains flexible mechanisms that allow Annex B Parties to lower their GHG emissions in a cost-effective way and to acquire GHG emission quotas outside their countries. These mechanisms include Joint Implementation (Article 6 of the KP), the Clean Development Mechanism (Article 12), and international emissions trading (Article 17). The project-based flexible mechanisms Joint Implementation ( JI) and the Clean Development Mechanism (CDM) are extremely important in CEE as they provide an opportunity to channel foreign investments to upgrade obsolete technologies while reducing GHG emissions at a relatively low cost. Most JI projects are expected to be implemented in Annex I economies in transition. Although participation in the EU ETS limits the scope of JI among new EU member states as hosts, these countries have nevertheless met the eligibility requirements for participation in flexible mechanisms according to the Marrakech Accords. In other words, they have ratified the KP, established national systems for GHG emissions accounting, prepared and submitted annual GHG inventories, and established registries to track the transfer of carbon credits. Non-Annex I CEE countries may participate only in CDM, which involves investments by Annex I countries in sustainable development projects that reduce emissions in host countries. National administrations responsible for climate change issues in SEE and Turkey have made great strides, although capacities to obtain and submit relevant information and to design strategic plans are still weak. Local expertise on the preparation of CDM projects needs improvement and the awareness and understanding of all stakeholders must be increased. Some new mechanisms aiming at cost-efficient emission reductions have been developed outside the scope of the UNFCCC and KP. One such mechanism is the emissions trading scheme (ETS), already operational within the EU. Most Annex I CEE countries are already members of the EU, while others (SEE countries and Turkey) are planning to join. These countries require assistance in implementing the EU Emissions Trading Directive. The Green Investment Scheme The Green Investment Scheme (GIS) is a mechanism under the framework of international emissions trading (IET) ensuring environmental integrity of the trade system. Under the GIS, Parties to Annex B of the KP can sell part of their quota units to other eligible parties. The proceeds for these sales must be earmarked for projects that result in

8 direct GHG emissions reductions (hard greening) or build up the necessary framework for this process (soft greening). Some CEE countries have taken the lead in the implementation of GIS. For instance, Hungary and Latvia have already completed their first transactions. The others are still in the development stage, and additional efforts are needed to establish the required legislative, administrative and institutional background. Voluntary Carbon Trading Voluntary carbon trading can be seen as one of the most powerful tools for GHG emissions reductions in countries and sectors not covered by the KP. The process is rapidly developing, especially in Turkey, where it is considered as a preparatory step for more active involvement in the compulsory carbon markets in the post-2012 period. Some Examples of Activities Assessment of JI Potential in CEE The assessment found that there is good potential to achieve GHG emission reductions outside the EU ETS sectors, including in district heating, by improving energy efficiency and landfill gas utilisation. Promoting CDM Capacity-building needs were identified in SEE countries to establish the required background for CDM projects and trainings were organised on the UNFCCC and KP, with a special focus on CDM. Support to the Establishment of GIS Activities undertaken within these projects included: l assessments of institutional and legal opportunities for GIS inclusion and of the possible eligibility of projects to be financed through GIS; l assistance in preparing a GIS operational manual and government decree in Romania; l evaluation of draft documents, including the Strategy for Participation of the Republic of Belarus in the Flexible Mechanisms; and l workshops in Romania, Ukraine and Belarus to promote GIS.

9 Adaptation to the Impacts of Climate Change EU climate policy has thus far focused on measures to mitigate GHG emissions. However, recent natural disasters and increasingly frequent extreme weather events in the Mediterranean region and coastal and mountainous areas of Central Europe have drawn attention to the urgency of adapting to climate change. According to the 4th Assessment Report (AR4) on Climate Change (2007) by the Intergovernmental Panel on Climate Change (IPCC), CEE and Turkey can expect to suffer an increasing variety of climate change impacts such as deadly heat waves, droughts and destructive floods. There is a need for improved monitoring and reporting of data concerning climate and its impacts and for more information on vulnerabilities and the costs of adaptation measures. However, such measures are just beginning to be implemented. Those countries that are not yet in the EU suffer from a lack of awareness and a lack of funding and capacity to meet this need. Activities Partnership with the European Topic Centre on Air and Climate Change ( ) In the framework of the partnership, feasibility studies were developed for projects concerning national and sectoral climate change impacts, vulnerabilities and adaptation measures. The aim was to develop indicators to assess the effectiveness of adaptation measures. Workshop on Facilitating Adaptation to the Consequences of Climate Change: Progress Achieved and Capacity Building Needed The aim of the workshop was to disseminate information on IPCC AR4, to analyse capacities for adaptation, to identify capacity-building needs, and to allow for the sharing of experiences and case studies among governmental officials and representatives of international organisations from CEE, Belarus, Russia, Turkey and Ukraine.

10 Enhancement of Regional SEE Cooperation in the Field of Climate Policy Within this project, country studies were prepared on the development of adaptation policies in Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Serbia and Turkey. A capacity-building component was also included in the form of trainings and regional events for various stakeholder groups. Southeast European Climate Change Framework Action Plan for Adaptation The project comprised the preparation of a South Eastern Europe Climate Change Adaptation Framework Action Plan (SEE/CCAFAP) to improve understanding and assessment of impacts, vulnerability and adaptation to climate change. Education, Training and Public Awareness Article 6 of the UNFCCC stipulates the promotion of education, training and public awareness on climate change through the development of educational and public awareness raising programmes; increased public participation and training for scientific and technical personnel; and the exchange of educational and awareness-raising materials. The experience of the Turkish national focal point for Article 6 could provide a model for the establishment of a regional focal point for CEE. In CEE, general knowledge of climate change has recently been improving but there is still a need to improve information dissemination. This includes education for schoolchildren and awareness raising among the general public, as well as the provision of more detailed and specific information to all stakeholders, including central and local governments, the business and financial sector, NGOs and the media. The training of journalists is a particularly powerful tool for awareness raising and information dissemination. Examples of Activities The Green Pack This is multi-media education resource for teaching children about environmental protection and sustainable development. Kyoto in the Home This project contributes to the development of energy and climate education in secondary schools. Building Capacities in the Field of Climate Change in the Republic of Serbia The project supports national activities to prepare the First National Communication under the UNFCCC,

11 Training for Journalists on Sustainable Energy The REEEP training provided participating CEE journalists with skills and techniques to improve the quality and impact of their reports on climate change, renewables and energy efficiency. Possibility of New Measures in Energy Intensity Improvement The project aimed to raise the awareness of the Hungarian public of energy-saving potential and practice through publication of a fact sheet and a booklet. Capacity Building of Stakeholders and Government in Climate Change Project achievements included the first Turkish NGO participation at an official meeting of the UNFCCC; online daily feedback of a COP meeting in Turkish; three publications and a documentary film on capacity building. and to disseminate information and improve understanding of climate change, international climate negotiations and reporting to the UNFCCC. Activities included trainings for government officials, experts and journalists. Course for Sustainability This educational programme is aimed at key government officials responsible for sustainable development from CEE, the Black Sea region and Kazakhstan. REEEP Travelling Exhibition The Renewable Energy and Energy Efficiency Partnership (REEEP) is a global coalition to promote sustainable energy and energy efficiency. The Power to Change poster exhibition was developed in 2005 to educate and raise awareness among stakeholders in the CEE region. The ZeroCarbonCity campaign in Turkey Photo exhibitions, leaflets, videos and international video conferences in 17 cities in Turkey, made this an effective public awareness project at national and local levels. Promoting Climate Change Policies in Turkey The project raised public awareness and supported Turkey s negotiation strategy on climate change by developing sectoral strategies and launching informal dialogue between senior Turkish officials and their counterparts at the international and EU levels on the Kyoto Protocol.

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