Transforming the Market for Efficient Lighting

request for project preparation grant (PPG) 
Project Type: Full –sized Project  
the GEF Trust Fund
      		 Submission date:  July 2008
 							         	Re-submission date:  22 October 2008
GEFSEC Project ID: 
GEF Agency  Project ID: 4175
Country(ies): Ukraine
Project Title: Energy Efficient Lighting in Residential and Public Buildings  
GEF Agency(ies): UNDP 
Other Executing partner(s): Ministry of Environmental Protection of Ukraine, Agency for Rational Energy Use, DerzhStandard 
GEF Focal Area(s): Climate Change 
GEF-4 Strategic program(s): CC-SP1
name of parent/program/umbrella project:  UNEP/UNDP “Global Market Transformation for Efficient Lighting”       
a.   Project preparation Timeframe 
Start date	December 2008
Completion date	December 2009

b.   project preparation activities ($)  	
Describe the PPG activities: Preparing and detailing a market transformation project for efficient residential and public lighting in Ukraine, including the supply and demand sides of the market and working closely with national and municipal authorities, manufacturers and other market parties.
1. Collection of additonal data
Baseline and market structure data has been collected during the preparation of the PIF, but additional data is needed for a careful planning of the full project and accurate estimation of baseline and project GHG emissions. This will be collected during the PPG
1.1 Production capacities and supply characteristics
Detailed information will be collected about current production capacities in Ukraine and the characteristics of the products that are currently being produced. Similar data will be collected about main importers and assemblers of equipment. Further, an assessment will be made of the capacities of production facilities to manufacture more and better quality equipment. This will primarily take place via an analysis of production statistics and enquiries with manufacturers and other supply chain parties.
1.2 EE lighting equipment sales and availability
Detailed baseline data about the sales of lighting equipment (volume, types and characteristics of products, prices, availability) in various retail and distribution channels will be collected, to build an accurate overview of the current market. This will be done by means of an analysis of sales statistics and enquiries with major suppliers, wholesale distributors and retailers of lighting equipment.
1.3. GHG emissions from lighting sector under baseline scenario
2. Stakeholder consultation
Stakeholders have been consulted in preparation of the PIF of this project. More detailed consultations, focusing on details of the project and the roles and contributions of the various stakeholders, will take place during the PPG. National and municipal authorities related to this project will be consulted do discuss their views on the detailed objectives of and arrangements for this project, including coordination with on-going and planned initiatives in the area of EE lighting, assessment of their involvement in project execution, securing their commitment to critical outputs and agreement on the activities the national and municipal authorities will undertake as a part of the project. These discussions will be facilitated through bilateral consultations with the relevant parties and workshops at the federal and municipal levels.
3. Design of pilot/demonstration projects
As part of the project, various municiaplities and market parties will invest in pilot projects to demonstrate the benefits of EE lighting and to take the first steps in the transformation of the lighting market. These investments need to be detailed and coordinated with other project activities, UNDP CO programme in order to maximise the marketing value of the pilots and to make sure that other marketing efforts are well synchronized with the realisation of the pilots (and their different parts). During PPG a detailed feasibility study and investment plan for a pilot public building project in Rivne will be prepared specifying the timing of investments, the type of buildings where the investments will take place, the types of equipment to be used, the monitoring of impacts and the demonstration and outreach programme to communicate the benefits and scale-up the programme to other municipalities.  
4. Design supply-chain initiatives and other support programmes for domestic CFL manufacturers
Some market parties were consulted during the preparation of the PIF, such as the only Ukrainian CFL producer, Gazotron-Lux, but further consultations with additional stakeholders are needed to detail the cooperation with manufacturers, importers, and other suppliers, assess their capacity gaps and coordinate arrangements for pilot projects, supply-chain initiatives and marketing of EE lighting. This will also take place via bilateral meetings with the major parties, private sector associations, and workshops at the federal and municipal levels. 
5. Project strategy and implementation detailing
Based on the activities described above, the detailed planning of the full project will be completed. Collaboration with the GEF global lighting project will be ensured in particular when designing project strategies and defining scope and activities for two projects. The PPG activities will include:
the existing policy framework and required additions
a detailed overview of existing and necessary legislative and standardisation regulations
the market structure, sales characteristics, and barriers emerging from this
national and global environmental benefits sought;
social, economic and financial sustainability of proposed project activities 
a set of viable outcomes, outputs and activities that constitute the most cost effective response to the identified barriers;
costing of expected project outcomes and outputs, co-financing sources and co-financing commitments in compliance with the GEF incrementality principle;
a monitoring and evaluation plan, including a set of impact indicators to track the project’s progress and effectiveness, baseline and target values on indicators;
a cost-effectiveness analysis

List project preparation activities	GEF Grant	Co-financing	Total
Collecting additional data about the market structure, production, imports, distribution, sales and demand for efficient lighting technologies, and GHG emissions under baseline	20,000	20,000	40,000
Consulting with public and private sector stakeholders about the regulatory, technical and marketing activities	20,000	20,000	40,000
Detail design of the EE lighting pilot/demonstration projects in public buildings	15,000	15,000	30,000
Capacity assessment and consultation with domestic producers 	15,000	25,000	40,000