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70745REVIEW OF ECA PROJECT PIPELINE FOR
CARBON FINANCING OPPORTUNITIES
Final ReportMay 4, 2007
Prepared by: Stratos Tavoulareas, Energy Consultant
Europe & Central Asia RegionWorld Bank
ABBREVIATIONS
CCGT: Combined Cycle Gas TurbineCDM: Clean Development MechanismCHP: Combined Heat and PowerDPL: Development Policy LendingDSM: Demand Side ManagementER: Emission Reductions ESCO: Energy Service Company GEF: Global Environment FacilityJI: Joint ImplementationLULUCF: Land Use, Land Use Change and ForestryPAD: Project Appraisal DocumentPID: Project Information DocumentPIN: Project Idea NoteSCADA: Supervisory Control and Data AcquisitionTTL: Task Team LeaderUNFCCC: United Nations Framework Convention on Climate Change
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Table of Contents
Page #
Introduction………………………………………… 5
Methodology……………………………………….. 5
Selection Criteria…………………………………… 5
Key Findings……………………………………….. 7
Early Project Screening…………………………….. 11
Annex A. List of projects reviewed ………………... 12
Annex B. Projects Suitable for Carbon Finance……. 16
Annex C: Guidelines for Early Project Screening…. 41
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ACKNOWLEDGEMENTS
The author would like to acknowledge the significant contribution and guidance of Jane Ebinger (TTL) and Antonio Lim for this survey. Also, Emine Kildirgici who assisted in the collection of all relevant World Bank documents and Jari Vayrynen of the Carbon Finance Unit of the World Bank who provided useful insight on the suitability of projects. Finally, many TTLs were consulted and provided useful input on the specific projects they are working on and the countries they operate:
A. Amar V. Atur J. Bure A. Capcelea S. Haitov P. Johansen O. Leber V. Loksha J. Melitauri N. Nikolov K. Nyman K. Oppermann D. Ostojic D. Papathanasiou P. Salminen G. Sargsyan S. Sarkar H. Schreiber R. Sharma
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1. Introduction
The purpose of this report is to provide the results of a review of the ECA project pipeline (active projects including those under supervision) and identify carbon overlay opportunities. To accomplish this, the Consultant reviewed the projects in ECA’s (ECSIE, ECSSD, ECSHD) lending pipeline and loans under supervision and the projects that are expected to be presented to the Board of Executive Directors of the World Bank and IDA in FY07 and FY08, or that have been approved by the Board in FY06 and the first half of FY07. Sectors in this review include infrastructure (transport, urban, health and education projects), energy, rural development, and environment. The industrial/mining restructuring projects (coal, steel, aluminum, fertilizer, cement, petroleum refining, gas flaring) under Development Policy Lending (DPL) operations are also included. The projects which are already funded by carbon funds are not included in this report.The key findings of the review and the recommendations are provided as a guideline for future project screening.
The review includes 3 Annex:Annex A: It shows all of the 123 projects which were reviewed.Annex B: It includes descriptions of the ECA projects with high relevance to carbon finance. Annex C: It provides the Guidelines for early project screening
2. Methodology
The following steps were followed for the review: Identification of all the projects which may result in emission reductions directly or
indirectly, and obtain the Project Information Document (PID). Review of the PIDs based on which the projects with higher probability for generating
emission reductions were screened (see criteria below). For most projects this was adequate to determine the potential for emission reduction and suitability to carbon finance requirements.
For some projects, it was also necessary to review the Project Appraisal Document (PAD).
Finally, meetings were held with Task Team Leaders and the Carbon Finance Unit to clarify outstanding questions.
3. Selection Criteria
In order to identify the most suitable projects for carbon financing, following criteria were applied:
I. Country Eligibility: It is mainly linked to Kyoto Protocol ratification. The ECA countries fall into one of the following four categories:
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a) Eligible Joint Implementation (JI) Countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, Slovenia, Russia and Ukraine.
b) Prospective JI Countries: Belarus and Croatia.c) Eligible Clean Development Mechanism (CDM ) Countries : Albania, Armenia,
Azerbaijan, Georgia, Kyrgyz Republic, Macedonia, Moldova, Turkmenistan, and Uzbekistan.
d) Prospective CDM Countries: Bosnia-Herzegovina, Kazakhstan, Serbia & Montenegro and Tajikistan.
II. Suitability of Projects for Carbon Finance Fund Requirements:
The following funds are available within the World Bank and will be considered for eligible projects:
a) Netherlands CDM Fund (CDM Countries Eligible Only) – CDM energy, infrastructure and industry projects
b) Community Development Carbon Fund (CDM Countries Eligible Only) – small scale CDM energy projects
c) BioCarbon Fund (JI and CDM Countries Eligible) – LULUCF projects1
d) Italian Carbon Fund (JI and CDM Countries Eligible) – multi purpose funde) Netherlands European Carbon Facility (JI Countries Eligible Only)f) Spanish Carbon Fund (JI and CDM countries eligible) – multi purposeg) Danish Carbon Fund (JI and CDM countries eligible) – multi purposeh) Umbrella Carbon Facility (JI and CDM countries eligible)
III. Risk Level:This will involve a preliminary risk assessment considering factors such as: the likelihood that the projected emission reductions will be delivered, baseline risks, additionality issues, etc. New methodologies should be avoided unless there is a high potential for ERs (>1 million tons) and replication. Projects which have already commenced are likely to be more difficult to prove additionality than projects which have not been approved yet or have not started specific project activities.
IV. Project Size:All project opportunities must meet the minimum size of 50,000 tCO2e per year. Projects that annually reduce emissions at volumes lower than 50,000 tCO2e may be suitable, if such smaller projects can be bundled into a minimum 50,000 ton/yr. Identification of larger scale projects is preferable.
The expected amount of ERs is characterized as “low” (less than 200,000 tons of CO2 over a 10-yr period), “medium” (200-500,000 tons of CO2 over a 10-yr period) and “High” (above 500,000 tons of CO2 over a 10-yr period). These ranges are arbitrary, but the requirements for contracted amounts by the various funds were taken into account. Also, the estimates of the emission reduction potential are based on the type of technology utilized and previous
1 Tranche 1 of the BIOCF fund is closed to further proposals. Tranche 2 is now open to a call for projects.
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experience from similar projects. More detail assessment of the emission reductions is required considering project-specific factors for both the baseline and “with the project” scenarios.
Hydropower projects must have a maximum installed capacity threshold of 20MW. Bundles of mini-hydros, which in aggregate exceed the 20MW threshold, are also acceptable as long as each single plant in the bundle is within the 20MW limit.
4. Key Findings
The following tables shows the projects identified as most suitable candidates for carbon financing. Table I shows the counties which have ratified the Kyoto Protocol and are eligible, while the second the counties which have not, but are expected to do so. For the latter, project preparation may commence if agreed by the World Bank Carbon Finance Unit.
Table I. Suitable Projects in Eligible ECA CountriesCountry Project
ID Sector Potential ER
Suitable Funds
Board Approval
Task Team Leader
Albania P090656 ECSEE APL2 Energy Medium CDM 6/28/2005 Papathanasiou
Albania P101806 ECSEE APL5 Energy High CDM 1/28/2008 Papathanasiou
Armenia P083352 RENEW ENERGY Energy Medium CDM 1/30/2006 SARGSYAN
Armenia P057880 URBAN HEAT Energy MediumCDM
Small 7/7/2005 SARGSYAN
Azerbaijan P083341 ENERGY Energy High CDM 2/2005 HAMSO
Bulgaria P084831 Energy Efficiency (GEF) Energy High JI 12/21/2004 DOBOZI
Macedonia P089656 Sustainable Energy (GEF) Energy High CDM 5/11/2006 JOHANSEN
Poland P078170 Road Maintenance Transport Medium JI 3/30/2004 Audige
Poland P088824 2nd Road Maintenance Transport Medium JI 3/31/2005 Dumitrescu
Poland P102731 Transport Rehab Transport Medium JI 4/25/2007 Czapski
Poland P096214 Road Maintenance 3 Transport Medium JI 3/23/2006 Queiroz
Romania P068062 ENERGY EFF Energy High JI 9/19/2002 ATUR
Russia P079033 Renewables Energy High JI 5/2007 Schreiber
Ukraine P083702ENERGY SECTOR REFORM
(APL) Energy High JI 9/15/2005 OSTOJIC
Ukraine P096207 Power Transmission Energy Medium JI 5/15/2005 OSTOJIC
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Comments on the Projects in Table I:
a) The APL Projects in Albania: They have good potential to generate ERs. Examples include: 1) Rehabilitation of existing hydro projects; 2) Loss reduction in transmission and distribution system; and 3) Energy efficiency in schools. The possibility of CDCF/CDM project associated with energy efficiency in schools has been discussed already between the Bank and the Ministry of Education. While most of electricity is produced by hydro, smaller facilities (commercial, industrial and residential) use oil (often heavy oil with high concentration of sulfur). Also, imported electricity is generated mostly by lignite-fired plants. For this reasons, emission reduction projects in Albania could be still attractive and deserve a more detailed assessment.
b) The Armenia Renewable Project: It is in the process of preparing PINs. An assessment should be made (in consultation with the TTL) whether the Urban Heat project has components which can be bundled together with the Renewable. By itself, the Urban Heat project is not expected to generate enough ERs to justify the preparation costs for carbon
c) Azerbaijan Energy: It is already in the Bank’s Carbon Finance pipeline; two new methodologies are being considered. The railway project in Azerbaijan (P083108) deserves a more detailed assessment in terms of their ER potential.
d) Bulgaria Energy Efficiency Fund: It is likely that the fund will support projects which are suitable for carbon finance. However, an issue which needs to be addressed is the impact of the recent (Jan 1, 2007) accession of the country into the EU which implies that all energy facilities will be part of the European Trading System (ETS) unless of course they decide to opt-out.
e) Macedonia Sustainable Energy: It is recommended that PINs are prepared after consultation with TTL on some outstanding issues (e.g., ownership of land related to small hydro projects and concession-related issues).
f) Moldova: Three projects (which are also under Energy II and SIF II projects of the World Bank) are supported by CDCF. Also, there is a carbon sequestration project supported by PCF and Biocarbon Fund. As second carbon sequestration project is being promoted; a PIN has been submitted and accepted by BioCarbon Fund (second tranche). Finally, Moldova succeeded in getting a PHRD Climate Change grant to create a Carbon Finance Unit to assist in preparing carbon finance projects.
g) Poland Transport Sector Projects: If the on-going and planned projects of the transport sector (P078170, P088824, P102731 and P096214) are bundle together, the ER potential seems substantial, but more detailed assessment is recommended. Preliminary assessment suggests that these projects taken together are above the threshold of about 400 km and should generate adequate ERs.
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h) Romania Energy Efficiency Fund: It is likely that the fund will support projects which are suitable for carbon finance; it is expected to become more active this year. However, the same issue with Bulgaria needs to be addressed relating to the impact of the recent (Jan 1, 2007) accession of the country into the EU which implies that all energy facilities will be part of the European Trading System (ETS) unless of course they decide to opt-out.
i) Russia Renewables: A number of projects have been already identified and they are in the pre-investment stage. The TTL is aware of and is looking to take advantage of carbon finance opportunities.
j) Ukraine: The APL project (P089244) is being implemented and includes rehabilitation of a hydro project which has already developed a PIN. The transmission project (P096207) includes some energy loss reduction, but it is not substantial and its additionality is questionable. However, the pipeline portfolio is expected to have numerous project which could generate emission reductions including:
Two pumped storage projects (one with relatively small secondary storage area)
Coal bed methane projects Thermal power plant rehabilitation Replacement of natural gas pipeline compressors; etc.
Table II. Projects in Countries which have not ratified the Kyoto Protocol yet
Country Project ID
Sector Potential ER Suitabl
e FundsDate, Board
ApprovalTask Team
Leader
Bosnia-Herz P090666 ECSEE APL3 Energ
y High CDM 6/23/2006 Armar
Belarus P095115 Post-Chernobyl Recovery Energ
y Medium JI 12/20/2005 Armaly
Croatia P079978 ENRGY EFF (GEF) Energ
y Medium JI 6/24/2003 Johansen
Croatia P071464 RENEW ENERGY (GEF) Energ
y High JI 4/28/2005 Johansen
Croatia P095389 District Heating Energ
y High JI 5/25/2006 Sarkar
Kazakhstan P095155 N-S Transmission Energ
y Medium-High CDM 10/27/2005 Dobozi
Serbia & Montenegro
P075343 Energy Efficiency Energ
y High CDM 9/18/2003 Atur
Comments on the Projects in Table II:
k) Bosnia APL3: There is high potential for emission reductions in rehabilitation of hydro (Rama, Trebinje II, Visegrad, Grabovica and Salakovac) and thermal (Ugljevic) projects. Feasibility studies are expected to commence later on in 2007 which will assist in determining more accurately the ER potential.
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l) Belarus: The Post-Chernobyl Recovery project includes activities (energy efficiency and coal-to-natural gas conversion/switching) with high potential to generate emission reductions. A more detailed assessment is need to identify the project activities which have yet to be implemented and estimate their emission reduction potential. A Carbon Finance outreach workshop is planned for the end of March (2007) which provides an opportunity to follow-up on project opportunities in Belarus.
m) Croatia: It is recommended that the District Heating project is reviewed in more detail to develop a preliminary estimate of the ERs and a PIN be prepared. In parallel, the implementing agencies of the energy efficiency and renewable projects should be consulted about opportunities for carbon finance.
n) Kazakhstan: The project may provide opportunities for carbon finance; more detail assessment in needed and consultation with the TTL.
o) Serbia/Energy Efficiency: The project is expected to include carbon finance opportunities which will be pursued. The TTL is aware and will take action.
General Comments and Recommendations:
a) Funds which have been established to finance energy efficiency and renewable projects provide an excellent vehicle to bundle smaller projects, standardize emission reduction purchase agreements and make it more cost-effective to prepare such projects. These funds could be used as intermediaries for carbon finance. Countries with such funds are: Armenia, Bulgaria, Croatia, Macedonia and Romania.
b) The recent accession of Bulgaria and Romania into the EU may impact carbon finance projects in these two countries as all facilities are subject to ETS rules unless they opt-out. In consultation with the World Bank Carbon Finance Unit a decision should be made regarding what type of carbon finance projects (if any) should be pursued by the World Bank in these two countries.
c) Periodic review of the project pipeline is clearly useful, but if it is not done frequently enough (e.g., annually) it may miss projects which start and then it is more difficult to prove additionality. The most effective approach would be to build into the project cycle the required assessment, so a decision can be made whether each project provides carbon finance opportunities or not. This way, periodic review of the project pipeline will not be necessary. For this reason, a brief Guideline is proposed (see below) to screen projects early in the project cycle.
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5. Guidelines for Early Project Screening
In this section of the report is simple checklist is provided to determine if the project meets the basic criteria for carbon financing.
Project Check List:
1. Is the country eligible for carbon finance? Yes Noa. Eligible JI:____[ Eligible JI, which includes Bulgaria, Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, Slovak Republic, Slovenia, Russia and Ukraine]b. Prospective JI:____[Prospective JI: Belarus and Croatia]c. Eligible CDM:____[ Eligible CDM: Albania, Armenia, Azerbaijan, Georgia, Kyrgyz Republic,
Macedonia, Moldova, Turkmenistan, and Uzbekistan]d. Prospective CDM:____[Prospective CDM: Bosnia-Herzegovina, Kazakhstan, Serbia &
Montenegro and Tajikistan]
2. Does the Project reduce fossil fuel (coal, oil or natural gas) consumption directly or indirectly? Yes NoProposed sector/subsectors for carbon finance transaction that applies:
a. Power sector (specify)______b. Oil extraction, production and refiningc. Natural gas production, storage, transportation and distributiond. Coal mininge. Manufacturing industry (specify)____f. Municipal services (specify)g. Transport (specify)______h. Social sector (specify i.e., education, health)_____i. Agriculture (specify)_____j. Others: specify________
If the answers to the above questions are affirmative, more detail assessment is needed including:
Determination of project additionality. Whether the applicable methodology is approved, which makes planning of the project,
as a carbon finance candidate, easier. Estimation of emission reductions.
The Task Team Leader may obtain support from the World Bank Carbon Finance Unit or the designated carbon finance support staff within ECA.
More detailed guidelines are provided in Annex C.
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ANNEX A. LIST OF PROJECTS REVIEWEDCountry Proj ID Sector Potential ER Suitable Funds Board
Approval Task Team Leader
Albania P090656 ECSEE APL2 Energy Medium CDM 6/28/2005 Papathanasiou
Albania P101806 ECSEE APL5 Energy ?? CDM 1/28/2008 Papathanasiou
Albania P077526 Power gen and restructuring Energy High CDM 3/16/2004 Papathanasiou
Albania P075156Integrated water
and Ecosystems (GEF)
Water None 12/2/2003 Rohde
Albania P041442 Muni water and wastewater Water None 1/28/2003 Rohde
Albania ?? Transport Transport Low CDM Small 12/1/2006 Humphreys
Albania P066260 Road Maintenance Transport Low CDM Small 6/27/2002 Le Ber
Albania P078933 Education Excellence Education None 5/3/2006 Miwa
Armenia AMPE8276 T&D Energy None 1/1998 SARGSYAN
Armenia P083352 RENEW ENERGY Energy Medium CDM 1/30/2006 SARGSYAN
Armenia P057880 URBAN HEAT Energy Medium CDM Small 7/7/2005 SARGSYANArmenia P094207 Geothermal Energy High CDM 1/16/2007 Schreiber
Armenia P087641YEREVAN
WATER/WW SERVS
Water Low CDM Small 2/17/2005 SMITH
Armenia P063398 Muni water and wastewater Water Low CDM Small 5/4/2004 SMITH
Armenia P073974 Health Modernization Health None 5/13/2004 Dowsett-Coirolo
Armenia P094225 Social Investment III Social None 9/27/2006 Mascarell
Armenia P057847 NAT RES MGMT Environment Low BioCarbon 6/4/2002 DAMIANOVA
Armenia ?? Traffic Management Urban Low 7/2007 Lawrence
Azerbaijan P089751 IDP Economic Dev Social None 2/15/2005 Ellen Hamilton
Azerbaijan P083341 ENERGY Energy High CDM 2/2005 HAMSOAzerbaijan P083108 Rail Trade Transport Low CDM Small 12/15/2006 Le BerAzerbaijan P094488 Highway2 Transport Low CDM Small 1/17/2006 Le BerAzerbaijan AZPE40716 Highway Transport Low CDM Small 6/14/2001 KrissAzerbaijan P094220 Health Reform Health None 6/5/2006 Baris
Country Proj ID Sector Potential ER Suitable Funds Board Approval Task Team Leader
Azerbaijan P096213 Water Supply Water Low 9/14/2006 Kriss
Azerbaijan P077031
SHAKH-DAG RURAL ENVIRONMENT (GEF)
Rural Medium-Low CDCF 3/15/2005 KISS
Belarus P095115 Post-Chernobyl Recovery Energy Medium-High JI 12/20/2005 Armaly
Belarus BYPE44748 Social Infrastructure
Social/Energy Medium JI 6/5/2001 Peterson
Bosnia-Herz P085112 Water Quality Protection (GEF) Environment None 6/21/2005 Manghee
Bosnia-Herz P083353 Urban Infrastructure Urban Very low 8/13/2004 Manghee
Bosnia-Herz BAPE57950 Solid Waste Management
Urban, Environment Very low 6/20/2002 Manghee
Bosnia-Herz P090666 ECSEE APL3 Energy High CDM 6/23/2006 Papathanasiou
Bosnia-Herz BAPE585213rd Electric
Power Reconstruction
Energy Medium CDM 5/20/2000 Khalil
Bosnia-Herz BAPE71347 Road Management Transport Low CDCF 3/2002 Queiroz
Bosnia-Herz P100792 Road infr and safety Transport Medium CDCF 7/2007 Humphreys
Bulgaria P094018 2nd Trade & Transport Transport Very low 11/30/2006 Kerali
Bulgaria P099894 Road infrastructure Transport Very low Medium? 1/23/2007 Kerali
Bulgaria BGPA8314 District Heating Energy High JI 2003 SarkarBulgaria P100657 Social Inclusion Social None 3/29/2007
Bulgaria P084831 ENRGY EFF (GEF) Energy High JI 12/21/2004 DOBOZI
Croatia P079978 ENRGY EFF (GEF) Energy Medium JI 6/24/2003 JOHANSEN
Croatia P071464 RENEW ENERGY (GEF) Energy High JI 4/28/2005 JOHANSEN
Croatia P098948 Inland Waters Water Very low JI 12/7/2006 Sarkar
Croatia P065416 Coastal Cities Pollution Urban None 5/1/2004 Marino
Croatia HRPA43444 Muni Environmental Urban Very low JI 6/18/1998 Nadkarni
Croatia P093767 Trade & Transport Very low JI 7/30/2006 Ollivier
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Country Proj ID Sector Potential ER Suitable Funds Board Approval Task Team Leader
TransportCroatia P095389 District Heating Energy High JI 5/25/2006 SarkarCroatia P043195 Rijeka Gateway Transport Very low JI 6/24/2003 AudigeCroatia P086671 Education Sector Education None JI 8/17/2005 van MeelCroatia P069937 Social Welfare Social None JI 5/5/2005 Dobraja
Croatia P086669 Sustainable Health Health None JI 12/5/2006 Chao
Georgia P044800 FOREST DEVELOPMENT Environment Low BioCarbon 8/1/2002 KUSHLIN
Georgia P048791 PROT AREAS DEV (GEF) Environment Low BioCarbon 5/24/2001 FAIEZ
Georgia P094044 2nd E-W Highway Transport Low CDCF 2008 Le Ber
Georgia P083110 E-W Highway Transport Low CDCF 11/30/2006 Le Ber
Georgia GEPE54886 Electricity Market Energy Low CDCF 5/3/2001 Vucetic
Georgia P098217 Education Sector APL2 Education 10/24/2006 van Meel
Georgia GEPE72394Energy Transit
Institutional Building
Energy None 2/6/2001 Walters
Hungary HUPA8497 Muni Wastewater Water Low BioCarbon 5/15/1997 MacEwen
Hungary P074971 Nutrient Reduction (GEF) Urban Low BioCarbon 12/8/2005 de Beauchene
Kazakhstan P102772 Territorial Development ?? 2008 Katakura
Kazakhstan KZPE65414 Transmission Rehab Energy Medium-High CDM 10/26/1999 Dobozi
Kazakhstan P095155 N-S Transmission Energy Medium-High CDM 10/27/2005 Dobozi
Kosovo P097635 Lignite Power TA Energy Medium CDM? 4/27/2006 Atur
Kosovo P088865 Energy Sector TA Energy Medium CDM? 3/29/2005 Gulati
Kyrgyz P083410 Energy Energy ? 2008 Sharma
Kyrgyz P083377 Small Towns Infrastr. Urban Very low CDCF 12/14/2004 Draugelis
Kyrgyz KGPE36977 Rural Water/Sanitation Rural Very low CDCF 12/2000 Konishi
Kyrgyz KGPA5573 Power & DH Rehab Energy High CDM 10/1/1998 R. Sharma
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Country Proj ID Sector Potential ER Suitable Funds Board Approval Task Team Leader
Kyrgyz P084977 Health and Social Protection
Health & Social None 11/23/2005 Khaleghian
Kyrgyz KGPE69814 TA Credit Energy None 5/15/2000 Ghasimi
Lithuania P063656/P073242
VILNIUS HEAT DEMAND MANGMNT
Energy Medium JI 6/10/2003 JOHANSEN
Macedonia P089656 Sustainable Energy (GEF) Energy High CDM 5/11/2006 JOHANSEN
Macedonia P082337 TSO Energy Low CDM 11/11/2006 Kennedy
Moldova P100929 Road Network Transport None 5/16/2007 SchliesslerMoldova MDPA35771 1st Cadastre Privatization None 7/1997 Andersson
Moldova P074469 Pilot Water Supply Water Low CDCF 5/20/2003 Manghee
Moldova P074139 Env. Infrastructure Urban Low BioCarbon 11/20/2004 Manghee
Moldova P095250 Primary Health Care Health None 9/14/2006
Moldova P079314 Social Investment Social Low-Medium CDCF 5/18/2004 Bezhanyan
Moldova P040558+B102 ENERGY 2 Energy Medium CDM Small 11/25/2003 OSTOJIC
Poland PLPE8615 Szczecin-Swinoujscie Transport None 7/2000 Juhel
Poland P078170 Road Maintenance Transport Medium JI 3/30/2004 Audige
Poland P088824 2nd Road Maintenance Transport Medium JI 3/31/2005 Dumitrescu
Poland P102731 Transport Rehab Transport Medium JI 4/25/2007 Czapski
Poland P096214 Road Maintenance 3 Transport Medium JI 3/23/2006 Queiroz
Poland P070246 Energy Efficiency (GEF) Energy Medium JI 2/3/2004 JOHANSEN
Poland P065059/P070246
KRAKOW ENRGY EFF Energy High JI 6/7/2001;
5/29/2003 JOHANSEN
Romania P068062 ENERGY EFF Energy High JI 9/19/2002 ATUR
Romania P067367 FOREST DEVT Environment Low BioCarbon 12/19/2002 DEWEES
Romania P100957 Energy1 Energy ??? 1/31/2008 NYMANRomania P083622 PAL 2 Energy low 7/20/2005 NYMAN
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Country Proj ID Sector Potential ER Suitable Funds Board Approval Task Team Leader
Romania P093812 Trasport support Transport Low JI 7/15/2006 KeraliRomania P081406 Electricity Market Energy Low JI 6/12/2003 NYMANRomania P073967 Rural Education Education None 4/4/2003 Sandi
Romania Rpr 36181-RO Social Inclusion Social None 5/15/2006 Sandi
Romania P078971 Health Sector Reform Health None 11/17/2004 Haazen
Romania P088252 Muni Services Water Low JI 6/22/2006 SarkarRussia P079033 Renewables Energy High JI 5/2007 SchreiberRussia RUPE38551 Muni Heating Energy High JI 3/1/2001 HAMSO
Russia RUPE8832 Muni water and wastewater Urban Very low JI 12/21/2000 Homanen
Russia RUPE50891 Electricity Reform Energy High JI 6/5/1997 Stuggins
Serbia & Montenegro P075343 Energy
Efficiency Energy High CDM 9/18/2003 Atur
Serbia & Montenegro P079116
Montenegro Env-Sensitive Tourist Areas
Urban Medium-High CDM 9/11/2003 Marino
Serbia & Montenegro P088867 ECSEE APL3 Energy Low CDM 6/16/2005 Atur
Serbia & Montenegro P096598 ECSEE APL3 -
Montenegro Energy Medium-High CDM 4/10/2006 Beides
Serbia & Montenegro P096823 Local Socia
Service Social/Health None 2/20/2007
Serbia P096592 Railway Reform Transport Low-Medium CDM 12/15/2007 Humphreys
Tajikistan P079027 Muni Infrastructure Urban Low CDM 10/19/2005 Kamkwalala
Tajikistan TJPE57883 Dushanbe Water Urban Low CDM 9/12/2000 Jakob
Tajikistan P101592 Dushanbe Water Urban Low CDM 12/19/2006 Kamkwalala
Tajikistan P069055 Education Modernization Education None 4/17/2003 Roberts-Schweitzer
Tajikistan P089244 Energy Loss Reduction Energy High CDM 3/2005 Nikolov
Ukraine P083702 Energy sector reform (apl) Energy High JI 9/15/2005 OSTOJIC
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Country Proj ID Sector Potential ER Suitable Funds Board Approval Task Team Leader
Ukraine P096207 Power Transmission Energy Medium JI 5/15/2005 OSTOJIC
Ukraine UAPA44832 District Heating Energy High JI 5/21/1998 Gochenour
Ukraine P095337 Urban Infrastructure Urban None 3/16/2006 Manghee
Ukraine UAPE35786 Muni water and wastewater Urban None 11/5/1997 Stotttmann
Ukraine ?? Roads & Safety Urban Low-Medium JI 9/2007 Audige
Uzbekistan UZPE49621 Bukhara Water Supply Urban Low CDM 10/15/2001 Ijjasz-Vasquez
Uzbekistan P095263Bukhara Solid
Waste Management
Urban Low CDM 9/28/2006 Bernstein
SEE Regional P086694 APL1 Energy High CDM/JI 12/21/2004 Nyman
SEE Regional P075046 GeoFund Energy High CDM/JI 9/5/2006 Schreiber
Notes: Bold indicates projects of higher interest for carbon financeThree categories are identified regarding Suitable Funds: JI, CDM and CDM Small (the latter suitable mainly for CDCF)
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ANNEX B: PROJECTS POTENTIALLY SUITABLE FOR CARBON FINANCE (Selected projects are organized in an alphabetical order by the country name)
1) COUNTRY: ALBANIA
Project name: ECSEE APL2 and APL5
Location of project: Albania
Project ID: P090656 and P101806
Task Team Leader: D. Papathanasiou
Project scope (brief description): Provides investment and technical assistance to extend the life and improve the efficiency and reliability of bulk power transmission system, among others by replacing aging and inefficient facilities with modern efficient ones. Specific components which should improve efficiency include: 1) Rehabilitation of existing hydro projects; 2) Loss reduction in transmission and distribution system; and 3) Energy efficiency in schools.
Technology to be employed: Rehabilitation of hydro, transmission and distribution, as well as energy efficiency.
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: June 28, 2005; APL5 expected: January 28, 2008
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): APL2 includes $27 million from IDA; $20 million from EBRD; $5.14 million from borrower; total project: $52.14 million. APL 5 is not known yet.
Potential ERs/Potential CF opportunity: High.
Suitable Funds: All CDM funds.
Status/Issues/Remarks: The possibility of CDCF/CDM project associated with energy efficiency in schools has been discussed already between the Bank and the Ministry of
Education. Task Team Leader is aware of carbon finance options and will pursue opportunities.
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Country: Albania
Project name: Power Sector Generation and Restructuring
Location of project: Albania
Project ID: P077526
Task Team Leader: D. Papathanasiou
Project scope (brief description): Investment for a combined cycle burning distillate oil and technical assistance to strengthen the management of the power sector and introduce power sector reforms.
Technology to be employed: Combined cycle gas turbine (CCGT).
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: March 16, 2004
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): $25 million from IDA; $37.50 million from EBRD; $37.50 million from EIB; $12.66 million from borrower; total project: $112.66 million.
Potential ERs/Potential CF opportunity: ER amount could be high depending on the power generation alternatives (e.g., coal-fired or oil-fired steam cycle). If the CCGT is gas-capable, it may generate additional ERs when natural gas becomes available in Albania.
Suitable Funds: All CDM funds.
Status/Issues/Remarks: The fact that the project is already being implemented may make additionality difficult to prove.
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2) COUNTRY: ARMENIA
Project name: Renewable Energy
Location of project: Armenia
Project ID: P083352
Task Team Leader: Gevorg Sargsyan
Project scope (brief description): Develop a sustainable, market-based financial mechanism, a Renewable Energy Fund (REF), and provide technical assistance to build the capacity of project investors, local financial institutions and state agencies to reduce barriers, and create the enabling regulatory and market environment for developing renewable energy projects.
Technology to be employed: Promotion of renewables, especially small hydro and wind projects.
GHGs targeted: CO2
Project type (e.g. FI): Loan; GEF to provide grant for overcoming market barriers.
Board Approval Date: January 30, 2006
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): $5 (IDA, out of a total project of $28)
Potential ERs/Potential CF opportunity: Medium ER amount expected (300,000 for the period 2006-2012); projects with a cumulative capacity of 80 MWs are projected to be bundled
Suitable Funds: All CDM funds.
Status/Issues/Remarks: The renewable fund provides an excellent vehicle for bundling smaller projects for carbon finance; hence reducing the project preparation costs. The REF targets small hydro projects for which a standardized emission reduction purchase agreement can be developed to apply to similar projects.
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Country: Armenia
Project name: Urban Heating
Location of project: Armenia
Project ID: P057880
Task Team Leader: Gevorg Sargsyan
Project scope (brief description): 1. Community mobilization and development; 2. Supplier and financing institution development; 3. Improvement of heating and related building infrastructure; and 4. Support of project preparation.
Technology to be employed: Promotion of energy efficiency and switching from electricity heating to gas-based heating.
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: July 7, 2005
Implementation timeframe: 6 years
IBRD/IDA Commitment ($ millions): $10 (IDA, out of a total project of $23)
Potential ERs/Potential CF opportunity: Medium ER amount expected
Suitable Funds: All CDM funds
Status/Issues/Remarks: Project schedule overlaps with first compliance period (2008-12) and provides an opportunity for generating and selling ERs. ER estimation and monitoring system design could be challenging (considering that it involves predicting what it will happen without the project (establishing baseline scenario)), but similar assessments and monitoring systems have been implemented in other projects (e.g., Bulgaria/Sofia District Heating Rehabilitation). It is recommended to be included only if another project such as the Renewable Energy Fund is pursued in Armenia.
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Country: Armenia
Project name: Geothermal Energy
Location of project: Jermakhpyur, Armenia
Project ID: P094207
Task Team Leader: Helmut Schreiber
Project scope (brief description): Develop a 25 MW geothermal project in Jermakhpyur.
Technology to be employed: Geothermal, a renewable technology.
GHGs targeted: CO2
Project type (e.g. FI): GEF grant.
Board Approval Date: January 16, 2007
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): $3.2 million from GEF/GEOFUND; $1.4 million from recipient of the grant; total $4.60 million.
Potential ERs/Potential CF opportunity: High ER amount expected
Suitable Funds: All CDM funds.
Status/Issues/Remarks: The World Bank is not participating any more in the project. Should the project be pursued by the World Bank Carbon Unit?
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3) COUNTRY: AZERBAIJAN
Project name: Power Transmission Project
Location of project: Azerbaijan
Project ID: P083341
Task Team Leader: Bjorn Hamso
Project scope (brief description): 1. Improve power system dispatch; and 2. Transmission rehabilitation and energy loss reduction.
Technology to be employed: Modern power dispatching SCADA/Energy Management System, and transmission rehabilitation.
GHGs targeted: CO2
Project type (e.g. FI): IBRD loan
Board Approval Date: February, 2005
Implementation timeframe: 4 years, but emission reductions will continue to be generated after the project completion.
IBRD/IDA Commitment ($ millions): $40 from IBRD (total project: $47.4 million)
Potential ERs/Potential CF opportunity: High; approximately 2% fuel savings corresponds to 1.5-2.0 million tons for 10 years.
Suitable Funds: All CDM Funds
Status/Issues/Remarks: PINs are being prepared.
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4) COUNTRY: BELARUS
Project name: Post-Chernobyl Recovery Project
Location of project: Belarus
Project ID: P095115
Task Team Leader: M. Armaly
Project scope (brief description): Includes energy efficiency investments (such as replacement of old boilers with new, some cogeneration; replacement of heat distribution pipes; addition of pipe insulation; heat regulators and heat meters) and replacement of coal with natural gas.
Technology to be employed: Modern and most efficient boilers and cogeneration facilities. Pipe insulation and new heat distribution pipes. Conversion from coal to natural gas.
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: Sept 15, 2005
Implementation timeframe: 6 years (up to 2011)
IBRD/IDA Commitment ($ millions): $50 million by IBRD (total: $62.36 million; borrower: $12.36 million)
Potential ERs/Potential CF opportunity: High.
Suitable Funds: All JI Funds
Status/Issues/Remarks: Need more detail assessment, especially considering the status of the project; while some activities may be already implemented and may be difficult to prove additionality, it is likely that many more are yet to be finalized.
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5) COUNTRY: BOSNIA AND HERZEGOVINA
Project name: ECSEE/APL3 (Energy Community of South East Europe)
Location of project: Bosnia and Herzegovina
Project ID: P090666
Task Team Leader: D. Papathanasiou
Project scope (brief description): Investments to maintain domestic generation, improve safety and environmental compliance and upgrade capabilities of ISO. Also, rehabilitation of hydro plants (Rama, Trebinje II, Visegrad, Grabovica and Salakovac) and the Ugljevic thermal plant.
Technology to be employed: Hydro rehabilitation; thermal plant rehabilitation; and distribution system rehabilitation.
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: June 23, 2006
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): $36 million by IDA (total: $271.6 million; EBRD: $67 million; EIB: $104.5 million; KfW: $44.9 million; Financing GAP: $14.1 million; borrower: $5.1 million)
Potential ERs/Potential CF opportunity: High due to rehabilitation of hydro and thermal power plants; also, the distribution system.
Suitable Funds: All CDM Funds
Status/Issues/Remarks: Project just starting; good timing to assess specific ER potential. Feasibility studies are expected to commence later on in 2007 which will assist in determining more accurately the ER potential.
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6) COUNTRY: BULGARIA
Project name: Energy Efficiency Project
Location of project: Bulgaria
Project ID: P084831
Task Team Leader: Istvan Dobozi
Project scope (brief description): Support the establishment of the Bulgaria Energy Efficiency Fund (BEEF), a sustainable, market-based mechanism, to finance energy efficiency projects.
Technology to be employed: Energy efficiency
GHGs targeted: CO2
Project type (e.g. FI): Loan plus GEF support for barrier removal and partial risk guarantee
Board Approval Date: December 21, 2004
Implementation timeframe: 15 years
IBRD/IDA Commitment ($ millions): IBRD loan not determined yet (total project: $17.85 million; GEF: $10 million)
Potential ERs/Potential CF opportunity: High potential; multiple projects; preliminary estimates: 2 million tCO2 for the period 2005-12
Suitable Funds: All JI funds
Status/Issues/Remarks: BEEF could be an efficient intermediary in accessing and preparing many smaller projects, which are not practical to prepare one at a time. A potential issue is the fact that Bulgaria is part of the EU (as of January 1 2007) and would have to be part of ETS; facilities may opt-out of ETS, but it is not likely that they will do so.
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7) COUNTRY: CROATIA
Project name: Energy Efficiency Project
Location of project: Croatia
Project ID: P079978
Task Team Leader: Peter Johansen
Project scope (brief description): Support the establishment of a utility-based Energy Efficiency Service Company (ESCo) to finance energy efficiency projects.
Technology to be employed: Energy efficiency
GHGs targeted: CO2
Project type (e.g. FI): Loan plus GEF support for barrier removal and partial risk guarantee
Board Approval Date: June 24, 2003
Implementation timeframe: 7 years
IBRD/IDA Commitment ($ millions): $5 million IBRD loan (total project: $30.40 million; GEF: $7 million)
Potential ERs/Potential CF opportunity: High potential; multiple projects
Suitable Funds: All JI Funds
Status/Issues/Remarks: The ESCo could be an efficient intermediary in accessing and preparing many smaller projects, which are not practical to prepare one at a time. Recommended to approach ESCo to develop PIN.
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Country: Croatia
Project name: Renewables Project
Location of project: Croatia
Project ID: P071464
Task Team Leader: Peter Johansen
Project scope (brief description): Support the development of renewable projects so Croatia can increase the contribution of renewables to potentially 11% of the total generation by 2010.
Technology to be employed: Renewables
GHGs targeted: CO2
Project type (e.g. FI): GEF support for barrier removal and contingent loan for project preparation
Board Approval Date: April 28, 2005
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): GEF: $5.5 million (total project: $30.40 million; Borrower: $60.9 million; Commercial/Private: $60.0 million)
Potential ERs/Potential CF opportunity: High potential; multiple projects
Suitable Funds: All JI Funds
Status/Issues/Remarks: Presently, only pre-investment work is going on, but soon projects will be identified to be implemented. Timing good for ER assessment and PIN preparation.
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Country: Croatia
Project name: District Heating
Location of project: Croatia
Project ID: P095389
Task Team Leader: Sudipto Sarkar
Project scope (brief description): Promote energy efficiency operations in HEP T.
Technology to be employed: District Heating rehabilitation and DSM/energy efficiency options
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: May 25, 2006
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): IBRD: $28.8 million (total project: $42.85 million; Borrower: $14.05 million)
Potential ERs/Potential CF opportunity: High potential
Suitable Funds: All JI Funds
Status/Issues/Remarks: Timing good for ER assessment and PIN preparation.
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8) COUNTRY: KAZAKHSTAN
Project name: North-South Electricity Transmission
Location of project: Kazakhstan
Project ID: P095155
Task Team Leader: Istvan Dobozi
Project scope (brief description): Upgrade transmission system
Technology to be employed: High voltage transmission technologies
GHGs targeted: CO2
Project type (e.g. FI): IBRD loan
Board Approval Date: October 27, 2005
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): IBRD: $100 million loan (total project: $161.09 million; Borrower: $4.55 million; EBRD: $13.14 million; Financial Intermediaries: $43.4 million)
Potential ERs/Potential CF opportunity: Medium-High potential depending on the projects implemented and the avoid emissions.
Suitable Funds: All CDM Funds
Status/Issues/Remarks: Requires more specific assessment to estimate the emission reduction.
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9) COUNTRY: LITHUANIA
Project name: Vilnius District Heating Project
Location of project: Vilnius, Lithuania
Project ID: P063656/P073242
Task Team Leader: Peter Johansen
Project scope (brief description): Energy efficiency measures such as demand side management (DSM), replacement of substations, rehabilitation of CHPs, upgrading of heat-only boilers, interconnection of CHPs to improve efficiency through optimum operation (dispatching) and creation of energy conservation program.
Technology to be employed: DSM, rehabilitation of existing plants and operating improvements
GHGs targeted: CO2
Project type (e.g. FI): IBRD loan along with GEF grant, borrower financing and bilateral (EU, Finland and Sweden) support.
Board Approval Date: August 23, 2001/June 10, 2003
Implementation timeframe: June 30, 2008, but the project would continue generating ERs beyond 2008
IBRD/IDA Commitment ($ millions): $17.1 IBRD out of a total of $64.52 million; GEF provides $16.5 million
Potential ERs/Potential CF opportunity: High
Suitable Funds: All JI Funds
Status/Issues/Remarks: Significant ERs could be generated. An issue which needs to be addressed is proving additionality, considering that the project has been already approved, financed and mostly implemented. Also, emission reductions linked to the GEF-funded component may need to be excluded.
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10) COUNTRY: MACEDONIA
Project name: District Heating and Energy Efficiency
Location of project: Macedonia
Project ID: P089656
Task Team Leader: P. Johansen
Project scope (brief description): GEF grant to support market transformation activities, establish utility-based ESCO and invest in energy efficiency and renewable projects through a Sustainable Energy Financing Facility.
Technology to be employed: Energy efficiency and renewable technologies.
GHGs targeted: CO2
Project type (e.g. FI): GEF grant
Board Approval Date: May 11, 2006
Implementation timeframe: 5 Years
IBRD/IDA Commitment ($ millions): $5.8 million from GEF out of a total of $34.6 million (the remaining provided by the borrower and local sources including financial intermediaries)
Potential ERs/Potential CF opportunity: High
Suitable Funds: All CDM Funds
Status/Issues/Remarks: Assess Emission Reduction and prepare PINs. Timing should be coordinated with TTL because some issues still remain (e.g., ownership of land and rights for hydro projects; also, concession terms).
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11) COUNTRY: MOLDOVA
Project name: Energy II Project
Location of project: Moldova
Project ID: P040558
Task Team Leader: Dejan Ostojic
Project scope (brief description): A component of the project is efficiency improvement of the heating supply system in selected public and residential apartment buildings.
Technology to be employed: DSM, rehabilitation and efficiency improvements
GHGs targeted: CO2
Project type (e.g. FI): IDA loan
Board Approval Date: Nov 25, 2003
Implementation timeframe: 4 years, but it will continue generating ERs beyond 2008
IBRD/IDA Commitment ($ millions): $35 million from IDA out of a total of $39.93 million
Potential ERs/Potential CF opportunity: Medium
Suitable Funds: All CDM Funds
Status/Issues/Remarks: Three projects (which are under Energy II and SIF II projects) are supported by CDCF.
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12) COUNTRY: POLAND
Project name: Krakow Energy Efficiency Project
Location of project: Krakow Region
Project ID: P065059/P070246
Task Team Leader: Peter Johansen
Project scope (brief description): 1. Modernization of district heating system; 2. End use (DSM) measures; 3. Financing DSM. GEF is supporting a risk guarantee mechanism and providing technical assistance.
Technology to be employed: Energy efficiency and DSM.
GHGs targeted: CO2
Project type (e.g. FI): IBRD loan plus GEF risk guarantee and grant.
Board Approval Date: June 7, 2001 for P065059 and May 29, 2003 for P070246
Implementation timeframe: Closing on Dec 31, 2007, but it will continue generating ERs.
IBRD/IDA Commitment ($ millions): $15 million loan from IBRD, $11 million grant from GEF, $47 million from the borrower and $31 million from commercial banks (total project investment: $104 million)
Potential ERs/Potential CF opportunity: High
Suitable Funds: All JI Funds
Status/Issues/Remarks: Significant ERs could be generated. An issue which needs to be addressed is proving additionality, considering that the project has been already approved, financed and mostly implemented. Also, potential emission reductions due to GEF funding need to be taken into account and separated from other investments.
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Country: Poland
Project name: Transport projects
Location of project: Poland
Project ID: P078170/P088824/P096214/P102731/
Task Team Leaders: Audige, Dumitrescu, Czapski and Queiroz
Project scope (brief description): Four separate loans for road maintenance and rehabilitation.
Technology to be employed: Road maintenance and rehabilitation.
GHGs targeted: CO2
Project type (e.g. FI): IBRD loans.
Board Approval Date: March 30, 2004/March 31, 2005/ March 23, 2006/April 25, 2007
Implementation timeframe: ??
IBRD/IDA Commitment ($ millions): $601 million (total project investment: $995 million)
Potential ERs/Potential CF opportunity: Medium
Suitable Funds: All JI Funds
Status/Issues/Remarks: Bundling of the four projects may make it cost-effective to prepare for assessing and selling emission reductions. However, it is difficult to estimate ER potential with the available information. Klaus Oppermann reviewed this (as well as similar projects in other ECA countries) and recommended a more detailed assessment of the transport projects in Poland.
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13) COUNTRY: ROMANIA
Project name: Energy Efficiency
Location of project: Romania
Project ID: P068062
Task Team Leader: Varadarajan Atur
Project scope (brief description): Establish self-sustaining Energy Efficiency Financing Facility (EEFF) to support energy efficiency projects.
Technology to be employed: Energy efficiency
GHGs targeted: CO2
Project type (e.g. FI): GEF grant provides seed capital for establishing the EEFF, as well as technical assistance.
Board Approval Date: July 2001
Implementation timeframe: Up to December 31, 2007
IBRD/IDA Commitment ($ millions): $10 million from GEF and $40 million from private sources.
Potential ERs/Potential CF opportunity: High
Suitable Funds: All JI Funds
Status/Issues/Remarks: Potential emission reductions due to GEF funding need to be taken into account and separated from other investments. However, most projects funded by EEFF are expected to generate ERs, which can be traded. A potential issue is the fact that Romania is part of the EU (as of January 1 2007) and would have to be part of ETS; facilities may opt-out of ETS, but it is not likely that they will do so.
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Country: Romania
Project name: Energy I and PAL 2
Location of project: Romania
Project ID: P083622/P100957
Task Team Leader: K. Nyman
Project scope (brief description): Market reforms, upgrading of transmission system and pumped storage hydro plant
Technology to be employed: Transmission upgrading and hydro rehabilitation
GHGs targeted: CO2
Project type (e.g. FI): IBRD loan
Board Approval Date: July 20, 2005 and January 31, 2008
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): 150
Potential ERs/Potential CF opportunity: Potentially high depending on specific investments
Suitable Funds: All JI Funds
Status/Issues/Remarks: Rehabilitation upgrading is difficult to prove additionality; hydro rehab is suitable, but Romania is part of the EU (as of January 1 2007) and projects have to be part of ETS; facilities may opt-out of ETS, but it is not likely that they will do so.
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14) COUNTRY: RUSSIA
Project name: Renewable Energy
Location of project: Russia
Project ID: P079033
Task Team Leader: Helmut Schreiber
Project scope (brief description): Increase the utilization of renewable energy resources.
Technology to be employed: Small hydro; reconstruction of biomass boilers; biomass fuel production; switching from fossil fuel to biomass; landfill gas; wind; and solar heating.
GHGs targeted: CO2
Project type (e.g. FI): GEF grant
Board Approval Date: May, 2007
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): GEF: $20 million; total project: $112.2 million
Potential ERs/Potential CF opportunity: High
Suitable Funds: All JI Funds
Status/Issues/Remarks: Preliminary list of projects has been identified; TTL aware of carbon finance opportunities which will be pursued.
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15) COUNTRY: SERBIA/MONTENEGRO
Project name: Energy Efficiency
Location of project: Serbia
Project ID: P075343
Task Team Leader: Varadan Atur
Project scope (brief description): Reduce the environmental impact from heating of building in Serbia and improve energy efficiency.
Technology to be employed: Rehabilitation of heating systems, in most cases replacement with natural gas-fired systems.
GHGs targeted: CO2
Project type (e.g. FI): Loan and GEF grant
Board Approval Date: Sept 18, 2003
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): IDA: $10 million; GEF: $4 million (total project: $20 million; Italy MOFA: $1.5 million; other bilaterals: $0.5 million; borrower: $4 million).
Potential ERs/Potential CF opportunity: High
Suitable Funds: All CDM funds
Status/Issues/Remarks: Project identification should commence.
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COUNTRY: SERBIA & MONTENEGRO
Project name: ECSEE APL3
Location of project: Montenegro
Project ID: P088867/P096598
Task Team Leader: Husam Beides
Project scope (brief description): Strengthen power system to participate in the regional energy market. Specific activities which may result in CO2 emission reductions include: 1. Optimization of transmission system operation through integration and modern operating systems; 2. Upgrading of transmission; 3. Restoration of critical generation (Zvornik and Perucica hydros) and transmission facilities; 4. Metering devices
Technology to be employed: Rehabilitation of hydro and transmission facilities. Also, modern power system operation and telecom systems.
GHGs targeted: CO2
Project type (e.g. FI): Loans
Board Approval Date: June 16, 2006/April 10, 2006
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): IDA: $30 million (total project: $41 million; borrower: $11 million).
Potential ERs/Potential CF opportunity: Medium
Suitable Funds: All CDM funds
Status/Issues/Remarks: Present scope does not seem to result in significant ERs, but future projects in Montenegro have high potential.
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16) COUNTRY: TAJIKISTAN
Project name: Energy Loss Reduction
Location of project: Tajikistan
Project ID: P089244
Task Team Leader: Nikolay Nikolov
Project scope (brief description): Consumer meters for electricity and gas
Technology to be employed: Gas and electricity metering devices.
GHGs targeted: CO2
Project type (e.g. FI): Loans
Board Approval Date: March, 2005
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): IDA: $15 million (total project: $26.63 million; Swiss Secretariat for Economic Coop: $8 million; borrower: $3.63 million).
Potential ERs/Potential CF opportunity: Low
Suitable Funds: All CDM funds
Status/Issues/Remarks: Even though metering could increase energy conservation, the project is likely to increase energy consumption and it is unlikely that emission reductions can be estimated. A relevant project, Pamir Hydro, may result in emission reductions.
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17) COUNTRY: UKRAINE
Project name: Energy Sector Reform
Location of project: Ukraine
Project ID: P083702
Task Team Leader: Dejan Ostojic
Project scope (brief description): Increase security and reliability of energy supply. Among others, it includes reduction in thermal power plant operation by increasing production of hydroelectric power plants
Technology to be employed: Replacement of thermal power plants with hydro.
GHGs targeted: CO2
Project type (e.g. FI): Loan
Board Approval Date: Sept 15, 2005
Implementation timeframe: 5 years
IBRD/IDA Commitment ($ millions): $250 million
Potential ERs/Potential CF opportunity: High
Suitable Funds: All JI Funds
Status/Issues/Remarks: PIN has been developed and carbon finance is already been pursued.
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ANNEX C: GUIDELINES FOR EARLY PROJECT SCREENING
The purpose of these guidelines is to identify the key factors which should be considered in initial screening of projects and identify the most likely to be suitable for carbon finance.
Early Screening for Carbon Finance Transaction
Date Prepared:
Basic InformationCountry: Project ID: Additional Project ID (if any): Project Name: Task Team Leader: Estimated Appraisal Date: Estimated Board Date: Managing Unit: ECSSD Lending Instrument: Sector: (Theme:)IBRD Amount (US$m.): IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: Environmental Category:
3. Is the country eligible for carbon finance? Yes Noa. Eligible JI:____[ Eligible JI, which includes Bulgaria, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland, Romania, Slovak Republic, Slovenia, Russia and Ukraine]b. Prospective JI:____[Prospective JI: Belarus and Croatia]c. Eligible CDM:____[ Eligible CDM: Albania, Armenia, Azerbaijan, Georgia, Kyrgyz
Republic, Macedonia, Moldova, Turkmenistan, and Uzbekistan]d. Prospective CDM:____[Prospective CDM: Bosnia-Herzegovina, Kazakhstan, Serbia
& Montenegro and Tajikistan]
4. Does the Project reduce fossil fuel (coal, oil or natural gas) consumption directly or indirectly? Yes NoProposed sector/subsectors for carbon finance transaction that applies:
a. Power sector (specify)______b. Oil extraction, production and refiningc. Natural gas production, storage, transportation and distributiond. Coal mininge. Manufacturing industry (specify)____f. Municipal services (specify)
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g. Transport (specify)______h. Social sector (specify i.e., education, health)_____i. Agriculture (specify)_____j. Others: specify________
More specifically: Fossil fuel reduction could be achieved through improvement of the energy efficiency of a system or substitution of fossil fuel with another energy resource which does not release as much carbon dioxide or methane emissions; for example, replacement of fossil fuel with a renewable energy resource or replacement of coal or oil with natural gas.
For the power sector: Projects which qualify include: Energy efficiency improvements in generation, transmission, distribution
and end use applications; Rehabilitation of existing power plants of all types (thermal, hydro, etc.)
provided that the efficiency is improved and the additional energy generated replaces a more polluting source or reduces consumption of fossil fuel by the plant itself.
Use of cleaner fuels such as natural gas Renewable projects including hydro plants, biomass, wind etc.
Projects requiring further consultation: Cases where the storage of hydro projects is increasing due to the project;
under certain circumstances, increasing of hydro storage is not affecting adversely the ER potential, but if new storage is developed, more detail assessment is needed taking into account the potential for methane release from the flora being covered with water.
Project types that are ineligible: Nuclear power
For oil extraction, production and refining: Projects which qualify include: Introduction of more efficient technologies Reduction of gas flaring and use of associated gas Energy efficiency (demand-side management)/conservation.
For gas production, storage, transportation and distribution: Projects which qualify include:
Reduction of leaks in pipelines and compressor stations Reduction in energy used for transporting the gas (e.g., efficiency improvements and loss reduction) Energy efficiency (demand-side management)/conservation.
For mining: Projects which qualify include: Reduction and/or utilization of methane emissions (Coal-Mine Methane) Introduction of energy efficient technologies.
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For Municipal Services: Projects which qualify include: Improvement of efficiency of heat generation, transmission and use of heating Reduction or capture of methane from landfills, composting and wastewater treatment Improvement of energy efficiency of water supply and municipal services
Promotion of energy efficiency in public sector buildings, as well as the residential and commercial sectors.
For industry: Projects which qualify include: Improvement of the efficiency in chemical, petrochemical, metallurgical, cement, and pulp and paper plants Reduction in energy demand/conservation Elimination of N2O gas emissions.
For Transport Sector: Fuel savings could result from introduction of more efficient transport fleets (public transport, truck fleets) and/or traffic management;; rules of thumb to be used for CO2 emissions per road-kilometer:
750 tCO2 p.a. for a frequency of 5,000 car trips per day 3,000 tCO2 p.a. for 5,000 truck trips per day
If the answers to the above questions are affirmative, more detail assessment is needed including:
Determination of project additionality. Whether the applicable methodology is approved, which makes planning of the
project, as a carbon finance candidate, easier. Estimation of emission reductions.
The TTL may obtain support from the World Bank Carbon Finance Unit or the designated carbon finance support staff within ECA. A few general guidelines on the additionality and methodology follow:
Is the project additional (i.e. does it result in real emission reductions)?Additionality requires a detailed assessment but the following simple rules should be kept in mind:
The project could be economically and financially viable, but it should not be the least cost option or faces significant barriers to investment;
It is much easier to prove additionality before the project is approved than after. In case the project components which may generate emission reductions has commenced, carbon finance may be considered for enhancing the project or ensuring the implementation or sustainability of certain components.
Is the methodology used to determine the emission reductions approved?
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This is not an essential requirement, but if the methodology which applies to the project is already approved by the international body regulating the use of the CDM (i.e. the Executive Board) or if the method has been successfully used in a JI project (i.e. the project has been determined/validated), it is much easier to get verification and certification of the emission reductions; hence, it is easier to sign an agreement to sell the emission reductions. Approved CDM methodologies and progress on methodologies under review can be found on the UNFCCC website2. Additional information on the methodology itself is also provided on the World Bank’s methodology website: http://carbonfinance.org/Router.cfm?Page=Methodology&mt=List
2 http://cdm.unfccc.int/methodologies
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