Biomass Energy for Heating and Hot Water Supply
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Category: MCF
A project in Belarus aims to reduce greenhouse gas emissions by promoting biomass energy for heating and hot water through strengthening institutional capacity, facilitating investments from public and private sectors, establishing financial mechanisms including a revolving fund, and providing market information to overcome negative perceptions.
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Full text:
UNITED NATIONS DEVELOPMENT PROGRAMME GLOBAL ENVIRONMENT FACILITY PROJECT DOCUMENT IDENTIFIERS: Project Name Biomass Energy for Heating and Hot Water Supply in Belarus PROJECT NUMBER BYE/02/G31 UNDP/GEF PIMS Number 1893 Duration 48 months GEF Implementing Agency United Nations Development Programme (UNDP) Executing Agency Committee on Energy Efficiency Implementing Agency Committee on Energy Efficiency Requesting Country Belarus Eligibility Belarus ratified the UNFCCC on 9 May 2000 GEF Focal Area Climate Change GEF Programme Framework OP#6: Promoting the adoption of renewable energy by removing barriers and reducing implementation costs LPAC meeting: 4 December 2002 ACC/UNDP sector: 0500 Energy ACC/UNDP subsector: 0504 New and Renewable Sources of Energy SUMMARY The proposed project will address the reduction of greenhouse gas (GHG) emissions in Belarus by increasing the capacity of the government to support biomass energy projects and the capacity of customers to finance and implement them. This project will focus on the following objectives: 1) strengthening institutional capacity to support biomass energy projects; 2) establishing a track record for investments in sustainable biomass energy projects, including both fuel supply and demand; 3) developing straightforward financial “starter” mechanisms in a challenging investment climate that will allow continued financing for biomass energy projects; and 4) overcoming negative perceptions of biomass energy and provide public and private investors with much-needed market information. First, the project will address lack of biomass project experience by facilitating the investment of USD 2.1 million by the Committee on Energy Efficiency and USD 3.4 million by the private and public sectors by 2006 in biomass energy projects. The project will also address financial barriers by establishing a revolving fund with initial capitalization of USD 1.54 million that will be based in part on the GEF contribution and dedicated to the support of biomass energy. Direct fossil fuel savings as a result of this programme represent approximately 1.08 million tonnes of CO2 reduction over a 15-year period. Thus, for a GEF contribution of USD 3.129 million, the cost per tonne of CO2 reduced is USD 2.9. Estimates of the potential impact on wood-fuel use resulting from this project total an additional annual amount of 895,000 tonnes of CO2 by 2015. On behalf of: Signature Date Name/title The Government: ________________ __________ Nikolai Zaichenko, First Deputy Minister of Economy ________________________ Committee on Energy Efficiency of the Republic of Belarus ________________ __________ Lev Dubovik, Chairman ________________________ UNDP: ________________ __________ Niel Buhne, UNDP Resident Representative and UN Resident Coordinator ________________________ TABLE OF CONTENTS TOC \o "1-3" \h \z 1 PROJECT OVERVIEW PAGEREF _Toc42080009 \h 3 2 BACKGROUND AND CONTEXT PAGEREF _Toc42080010 \h 3 3 BARRIERS PAGEREF _Toc42080011 \h 10 4 OBJECTIVES PAGEREF _Toc42080012 \h 12 4.1 Overall objective PAGEREF _Toc42080013 \h 12 4.2 Specific objectives PAGEREF _Toc42080014 \h 13 4.3 GEF rationale PAGEREF _Toc42080015 \h 13 5 PROJECT COMPONENTS/ACTIVITIES AND EXPECTED RESULTS PAGEREF _Toc42080016 \h 14 5.1 Component 1: Institutional Capacity Development PAGEREF _Toc42080017 \h 14 5.2 Component 2: Technical Capacity Development PAGEREF _Toc42080018 \h 18 5.3 Component 3: Financial Capacity Development PAGEREF _Toc42080019 \h 22 5.4 Component 4: Information and Outreach to Increase Awareness PAGEREF _Toc42080020 \h 24 6 RISKS AND SUSTAINABILITY PAGEREF _Toc42080021 \h 26 6.1 External Risks PAGEREF _Toc42080022 \h 26 6.2 Internal risks PAGEREF _Toc42080023 \h 27
Tags: Reporting, Climate Finance, Investment, Report, Finance, Development, Public Private, Biomass, Climate Fund, Institutions / Administrative Arrangements, Mitigation, Heat, Incentive, Renewable Energy, Funding, Energy Efficiency, Energy, Climate Protection, Loan, Carbon Accounting, Policy, Grant