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First Meeting of the INDC Working Group Summary Report
July 2016
Table of Contents
Overview .............................................................................................................................................................................. 1
Objectives of the Meeting ................................................................................................................................................ 1
Meeting Proceedings ......................................................................................................................................................... 1
Conclusion and Key Takeaways ...................................................................................................................................... 4
Annexes ................................................................................................................................................................................ 5
Overview
The first meeting of the INDC working group was held on July 26, 2016 in Beirut as part of the
activities undertaken by the Low Emission Capacity Building Project (LECB) – Lebanon. The
implementing agency of this project is the UNDP, while Ministry of Environment (MoE) is the
executing agency.
This first meeting of the working group gathered government representatives from various
ministries (Ministry of Environment, Ministry of Energy and Water, Ministry of Agriculture, Ministry
of Public Works and Transport, Ministry of Finance, Ministry of Industry, Ministry of Public Health),
research institutions and NGOs. See Annex 1 for the full list of attendees.
The meeting started with an overview of Lebanon’s INDC that was submitted to the UNFCCC
Secretariat prior to the Paris Agreement. This was followed by presentations from four speaker
panels presenting the sectors of Energy, Waste, Transport and Forestry. The speakers discussed
milestones, needs and gaps of each sector in the implementation of Lebanon’s 2030 climate
change targets, in addition to progress indicators to track the performance of each sector in
mitigating climate change. The meeting was concluded by the key takeaways of the presentations
and the next steps. The event also served as the launching of the De-risking of Renewable Energy
Investment in Lebanon, an activity carried out by the LECB-Lebanon project and DREG project at
the Ministry of Environment and the Ministry of Energy and Water, respectively.
Objectives of the Meeting
1. Move from preparation to implementation
• Clarify the status of the implementation of the Lebanese INDC and overview of future
activities
• Identify needs and gaps of different sectors whether it is financial, regulatory, technology-
related, etc.
• Shed light on areas which potentially can be translated into project proposals for
international support
2. Enhance the existing cooperation between climate change stakeholders
3. Launching of ‘Lebanon: Derisking Renewable Energy Investment’ activity
Meeting Proceedings
The welcoming sessions started with the opening remarks of H.E. Phillipe Lazzarini (Resident
Representative, United Nations Development Programme), followed by H.E. Ms. Christina Lassen
1
(Ambassador, Head of the Delegation of the European Union to Lebanon), Dr. Fadi Comair
(Director General of Hydraulic and Electrical Resources, Representing the Minister of Energy and
Water) and H.E. Mr. Mohamad El Mashnouk (Minister of Environment, Ministry of Environment)
discussing the previous achievements and collaborations among different stakeholders, the future
steps in mitigating climate change and the challenges ahead.
Mr. Vahakn Kabakian presented Lebanon’s Mitigation INDC and the Workshop Objectives (see
Annex 2).
The Energy Sector
Mr. Karim Osseiran (Advisor to H.E. the MoEW) presented ‘Climate Change Mitigation Initiatives
in the Power Sector’. GHG emission reduction targets were discussed under different policies or
actions such as the electricity supplying barges, conversion to Combined Cycle Gas Turbine
and/or reciprocating engines, rehabilitation, maintenance, replacement or upgrading of the
existing plants, and increasing the installed capacity. See Annex 3.1 for the work plan and the
respective targets.
Dr. Joseph Al Assad (Technical Advisor to the MoEW and LCEC) presented ‘Cleaning Lebanon’s
Electricity: The Rise of Renewable Energy’ (See Annex 3.2). He presented the chronological
milestones of the energy sector, specifically discussing the National Renewable Energy (RE) and
Energy Efficiency (EE) Action Plans for 2016-2020. Dr. Al Assad presented a timeline of RE
targets up to 2030, while pinpointing the main barriers and keys to success. The conclusion was
done by showing several needs and gaps related to financial investments, legal/regularity
framework, capacity building, in addition to progress indicators.
Dr. Sorina Mortada (Technical Consultant to the LCEC) developed on the previous presentation by
discussing the details the National Energy Efficiency Action Plan (NEEAP) 2016-2020. Dr.
Mortada introduced the different initiatives of the NEEAP, which tackled needs and gaps related
to: cost estimation and finance, legal/regulatory framework, and capacity building. The progress
indicators and the work plan concluded the presentation. Annex 3.3 incudes the slideshow
presentation.
Dr. Mischa Repmann (Senior Advisor at First Climate) presented ‘Derisking Renewable Energy
Investment: Selecting Public Instruments to Promote Wind and Solar PV Investment in Lebanon’ (see
Annex 3.4). The presentation covered the main concept of Derisking (including a case study of
Nigeria), the methodology used for modelling, and the background for the case of Lebanon.
Furthermore Dr. Repmann talked about their next steps of conducting interviews with equity and
debt investors, the data collection and the various meetings with stakeholders.
This session was moderated by Mr. Pierre Khoury (MoEW/ LCEC).
The Waste Sector
Ms. Sabine Ghosn (Head of Department of Urban Environment Pollution Control, Ministry of
Environment) presented ‘From Recycling to Energy Recovery: Solid Waste Mitigation’. The
2
presentation included a short-term plan of building 2 sanitary landfills and a long term plan of a
Waste to Energy Facility, in addition to the challenges and the keys to success. See Annex 4.1 for
the complete presentation.
Mr. Mufid Dhaini (Head of Service of Environment, Ministry of Energy and Water) presented
‘Lebanon’s Wastewater Strategy’, which included short-medium term plans to long term plans till
2030. Annex 4.2 includes the targets for wastewater collection and treatment, the financial
assessment, capacity and legal needs.
This session was moderated by Mrs. Lea Aboujaoude (UNDP/ MoE).
The Transport Sector
Mr. George Xanthakos (Transport Key Expert/ SISSAF-EU project) presented ‘SISSAF Project and
the Formulation of the Land Transport Strategy for Lebanon’. The project includes different
programs with their respective actions tackling safety, institutional capacity and financial
feasibility in the transport sector. The information presented is still under discussion with DGLMT.
The Land Transport Strategy Report is to be published by the end of 2016. See Annex 5.1.
Mr. Rami Semaan (Managing Partner TMS Consult) presented ‘Revitalizing the Mass Transit
System for Passengers’ talking about various points and issues to be considered while improving
the public transport systems in Lebanon; details can be found in Annex 5.2.
Dr. Ziad Nakat (Senior Transport Specialist, World Bank) presented ‘The Greater Beirut Urban
Transport Project’, which included the different components of BRT construction, complementary
bus network development, institutional strengthening and project managements. Presentation not available based on the request of the presenter.Mr. Nikolaus Wohlgemuth (Senior Advisor at First Climate) presented ‘NAMA in Lebanon’s Private
Transport Sector (FEVs)’, mentioning the steps taken for the development of the NAMA with its
different sections. The presentation was concluded by discussing the national and sectoral benefits
embedded in the implementation of this NAMA and the steps ahead. See Annex 5.3.
This session was moderated by Mr. Michel-Ange Medlej (MoEW).
The Forestry Sector
Dr. Chadi Mhanna (Director of Rural Development and Natural Resources, Ministry of Agriculture)
presented ‘The 40 Million Chances to Reduce Lebanon’s Emissions’ (see Annex 6). The presentation
included planned initiatives for the future and the requirements to reach to the given targets, in
addition to success stories and previously achieved outcomes.
This session was moderated by Dr. George Mitri (Balamand University).
3
Conclusion and Key Takeaways
Mr. Vahakn Kabakian summarized the key takeaways from the sectoral presentation, and briefly
discussed the timeline ahead for reporting the INDC implementation.
The Energy Sector
Significant decrease in greenhouse gas emissions can be achieved in the energy sector –
considerable potential for EE and RE, but the biggest potential is from thermal energy
transformation, which depends on the availability of natural gas
Financing is a major barrier in the energy sector, but also the political-will to eliminate
legal and regularity barriers
Derisking Renewable Energy Investment Report is currently in development
The Waste Sector
Urgent need to establish the legislative framework so that implementation can start
without political barriers
There is a need to update the progress indicators to accurately track the implementation
of the INDC targets
There is an urgent need to assess the financial needs for implementation, which ultimately
can lead to development of national solid waste or wastewater project proposals to be
applied for funding
The Transport Sector
The Greater Beirut Urban Transport Project is pending on the final political approval to
enter its implementation phase
The NAMA of the transport sector is ready to be submitted for funding and enter into
execution if funding is available
A draft of the Lebanese Transport Strategy is expected by the end of 2016, which
includes 5-10 year work-plan
The Forestry Sector
The 40 million trees programme is in development, depending on planting costs and
environmental impacts a final decision is to be taken on how to move forward
There are opportunities for developing further progress indicators to track the
development of the reforestation programme
There are various sustainable development benefits beside climate change mitigation from
reforestation; such as land rehabilitation, community and municipality involvement
4
Annexes
Annex 1. List of participants
Annex 2. Lebanon’s Mitigation INDC and the Workshop Objectives Presentation
Annex 3. Energy Sector Presentations
Annex 4. Waste Sector Presentations
Annex 5. Transport Sector Presentations
Annex 6. Forestry Sector Presentation
5
Annex 1. List of participants
Name Institution Email
1 Zeina Majdalani PCM [email protected]
2 Constance Leon L’orient Le Jour [email protected]
3 Navia Fahed Green Party [email protected]
4 Riwa Ghawi Green Party [email protected]
5 Nada Zarour Green Party [email protected]
6 Rana El Hajj IFI/AUB [email protected]
7 Nadim Farajalla IFI/AUB [email protected]
9 Vahakn Kabakian UNDP/ Ministry of Environment [email protected]
10 Lea Kai Aboujaoude UNDP/ Ministry of Environment [email protected]
11 Mary Awad UNDP/ Ministry of Environment [email protected]
12 Yara Daou UNDP/ Ministry of Environment [email protected]
13 Zakria Rammal Ministry of Energy and Water [email protected]
14 Nikolaus Wohlgemuth First Climate [email protected]
15 Izzat Alameddine PCM/UNDP [email protected]
16 Kourken Kadehjian UNDP/Ministry of Environment [email protected]
17 Allison Towle UNDP [email protected]
18 Cyril Dewaleyne EU Delegation [email protected]
19 Jil Amine UNDP DREG [email protected]
20 Karam Avi Yazbek LRI [email protected]
21 Chadi Foraj Media [email protected]
22 Sorina Mortada LCEC/Ministry of Energy and Water [email protected]
23 Majd Oueidat UNDP/Ministry of Environment [email protected]
24 Selim Saad AIA [email protected] - [email protected]
25 Osama Kassaman Expert CES-Med [email protected]
26 Ricardo Mansour Ministry of Environment [email protected]
27 Edwin Saliba Ministry of Finance [email protected]
28 Sabine Ghosn Ministry of Environment [email protected]
29 Khadija Benaissa Moroccan Embassy [email protected]
30 Sheikh Mohamad
Alaya EDL [email protected]
31 Rana Tabcharani ALI [email protected]
32 Nabil Kaiss CASC [email protected]
33 Lama Mghames World Bank/Ministry of Environment [email protected]
34 Lamia Mansour EU/Ministry of Environment [email protected]
35 Rami Semaan TNS Consult [email protected]
36 Bassam Taki Takom Energy [email protected]
37 Nada El Hout Tele Liban [email protected]
38 Ramzi Shasha Ministry of Industry [email protected]
39 Michel Kfoury Ministry of Public Health [email protected]
40 Silva Koteiche Ministry of Agriculture [email protected]
41 Elene Ayoub Ministry of Agriculture [email protected]
42 Joseph Al Assad Ministry of Energy and Water /
LCEC [email protected]
43 Hassan Harajli CEDRO / UNDP [email protected]
44 Jaoudat Abou
Jaoudeh CDR [email protected]
45 Karim Osseiran Ministry of Energy and Water [email protected]
46 Jihan Seoud UNDP Energy and Environment [email protected]
47 Eliane Charbel LRI [email protected]
48 Jad Baaklini BOS MAP PROJECT [email protected]
49 George Xanthakos SESSAF/EU [email protected]
50 Fatima Hmede LARI [email protected]
51 Chadi Mahanna Ministry of Agriculture [email protected]
52 Mufid Dehauni Ministry of Energy and Water [email protected]
53 Paul Bejjani AARAYA Environment Association [email protected]
54 Sandy Ardo Ministry of Environment [email protected]
55 Nahla NasserDine Al Balad Newspaper [email protected]
56 Jean Stephan Lebanese University [email protected]
57 Assem Abou Ibrahim LPA [email protected]
58 Michelange Medlej Ministry of Energy and Water [email protected]
61 George Mitri University of Balamand [email protected]
62 Pierre El Khoury Ministry of Energy and Water /
LCEC [email protected]
63 Rola Sheikh UNDP LPA [email protected]
64 Samin Skaf Green Globe [email protected]
65 Toni Richa Green Globe
66 Ramzi Dobeissy EDL [email protected]
67 Ziad Nakat World Bank [email protected]
68 Mischa Repmann First Climate [email protected]
Annex 2. Lebanon’s Mitigation INDC and the Workshop Objectives Presentation
3/08/16
1
Lebanon’s Mitigation INDC &
Workshop Objectives
UNDP Climate Change projects © 2016
‘’ I·N·D·C
Intended Nationally Determined Contribution
Countries publicly outline what climate actions they intend to take under a new in ternat iona l agreement by 2030.
How was Lebanon’s INDC formulated?
Adopted exisiting sectoral
strategies
Multi-stakeholder consultation process in
2015
Submitted to the
UNFCCC in September
2015
MITIGATION - Energy - Transport - Waste - Forestry
Lebanon’s INDC
Cut CO2 emissions
15%
30%
Unconditional target
Conditional to finance, technical support and capacity building
INDC officially recognized in Paris
3/08/16
2
Lebanon signing the Paris
Agreement
Present day: objectives
1. Move from preparation to implementation through the identification of the strategies’ components: • The status of implementation and overview of future activities • Needs and gaps whether it be financial, regulatory, technology-
related etc… • Areas which can be translated into project proposals for
international support 2. Enhance the exisiting cooperation between the climate change stakeholders
Thanks! @climatechangelb #climatechangelb www.climatechange.moe.gov.lb [email protected]
Annex 3. Energy Sector Presentations
3/08/16
1
Lebanon’sIntendedNa.onallyDeterminedContribu.onSector:Energy
PresentedbyMr.KarimOsseiran–BEE
AdvisortoH.E.theMinisterofEnergy&Water
ClimateChangeMi.ga.onIni.a.vesinthePowerSector
1.Ac.vityOverview
OverviewofPolicyorAc.on
ElectricityPolicyPaperItem1.a:Barges
CO2equivalent/MWh
(tCO2/MWh)
PG(DO) Barges(HFO) %Decrease
Barges270MW(HFO) 1,243,015 1,155,659 7%
Note:-PrivateGenera5on–PGSpecificFuelOilConsump5onSFOCaround222g/kWh
-BargesguaranteedSFOC=214g/kWh
OverviewofPolicyorAc.onElectricityPolicyPaper
Item1.b:Rapidincreaseoftheinstalledcapacityby600–700MWusingCombinedCycleGasTurbine(CCGT)and/or
Reciproca.ngEngines
CO2equivalent/MWh
(tCO2/MWh)
PG(DO)NewPlants(HFO)
%Decrease
NewPlants(NG)
%Addi.onalDecrease
%Cumula.veDecrease
ZoukICE194MW(HFO) 1,102,945 853,217 23% 573,303 25% 48%
JiyehICE78.2MW(HFO) 444,589 345,104 22% 241,708 23% 46%DACCPPII539.2MW
(HFO) 2,992,6772,308,575 23% 1,716,902 20% 43%
Note:-ZoukICESFOC=178.06g/kWh,JiyehICESFOC=178.67g/kWh,
DAIISFOC=177.56g/kWh
OverviewofPolicyorAc.on
ElectricityPolicyPaperItem1.c:Rehabilitate,maintain,replace,or
upgradeexis.ngplantstoincreasetheiroverallcapacitybyabout245
MW.
CO2equivalent/MWh
(tCO2/MWh)
BeforeRehab/Upgrade
AeerRehab/Upgrade
%Decrease
AeerRehab/Upgrade(NG)
%Addi.onalDecrease
%Cumula.veDecrease
ZoukThermal607MWRehabilita.on 1,101,851 816,186 26% N.A. N.A. N.A.
DeirAmmar&ZahraniCCPPUpgrades(63MW) 3,516,4463,165,277 10% 2,770,965 11% 21%
Tyr&BaalbekCombinedCycleAddOn 282,868 191,436 32% 137,148 19% 52%
OverviewofPolicyorAc.on
ElectricityPolicyPaperItem1.d:Increasingtheinstalledcapacityby1,500MWand1,000MWaeerwards
CO2equivalent/MWh(tCO2/MWh)
PG(DO) NewPlants(NG)
%Decrease
IPP1 3,021,841 1,660,147 45%IPP2 2,532,386 1,433,704 43%IPP3 2,698,189 1,459,743 46%
IPP4 2,630,324 1,436,561 45%
IPP5 2,841,668 1,743,965 39%
Notes:
-IPP’scalcula5onsareforvarioustypesofCombinedCyclePowerPlantsrunningonNG
3/08/16
2
2.WorkPlan
2.WorkPlanFeasibility Termsof
ReferenceBiddingStage
ContractAward
ProjectProgress
ProjectCompleted
ElectricityPolicyPaperItem1.a:Barges P P P P P P
ElectricityPolicyPaperItem1.b:
ZoukICE194MW(HFO) P P P P 90%
JiyehICE78.2MW(HFO) P P P P 95%
DACCPPII539.2MW(HFO) P P P P 15%
ElectricityPolicyPaperItem1.c:
ZoukThermal607MWRehabilita.on P P P
Expectedin2016 Expected
in2019
DeirAmmar&ZahraniCCPPUpgrades(63MW) P P P P P P
Tyr&BaalbekCombinedCycleAddOn
UnderStudy
ElectricityPolicyPaperItem1.d:IPP’s P Expectedin2017 Expectedin
2019 Expectedin2022
Thank You
3/08/16
1
Cleaning Lebanon’s Electricity: The Rise of Renewable Energy
Lebanon’s Intended Nationally Determined Contribution Sector: Energy
Joseph Al Assad
2009 UN-CCC Copenhagen Announcement
2010 Electricity Reform Paper
2013 BRSS
2016 NEEAP 2016-2020
NEAAP 2011-2015 2010
NEEREA 2012
Evaluation of NEEAP 1 2015
NREAP 2016-2020 2016
Milestones
Targets
• 12% in 2020 following UN CCC Cop. Declaration in 2009
• Target based on total primary energy consumption for both heat and electricity
• Based on the AREF and NREAP templates by LAS for 2010-2030 period
• 2010 as a baseline for all calculations
Methodology
Potential Assessment
International Outlook
Target Scenarios
Target Trajectories
Impacts Economic Assessment
Resource Shares out of the 12%
Wind16%
PV,CPV7%
DistributedPV5%
SWH19%
CSP5%
Hydro27%
Geothermal0%
Biomass21%
Timeline and Workplan
2010 2015 2020 2025 2030 RE production (ktoe) 210.4 238.8 779.4 1,138.8 1,273.5
Total primary energy (ktoe) 3,438.5 4,822 6,389 8,474 11,239
% of total energy production 6.1% 5% 12.2% 13.4% 13.5%
No Political Commitment
• Review every 5 years • Yearly Evaluation • 2010-2030 • Political commitment for 2020 • No commitment for the period beyond 2020
3/08/16
2
Barriers
• Lack of a legislative framework for RE IPP integration
• Low oil prices • High incentives on EDL electricity cost • Short term versus long term investments
Keys to success
• Adoption of a clear RE grid code • De-risking RE investments • Freeing RE law from constraints of IPP laws
462 and 288 • Availability of investments • Political and security stability • Political commitment
Needed Investments (Million USD)
415.0
211.5
395.7
251.1
422.5
264.2
29.9
340.0
195.0
282.3
187.8
355.0
217.8
24.8
490.0 465.0 509.0
813.9
490.0
363.5
34.9
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
Wind PV, CPV Distributed PV
SWH CSP Hydro Geothermal
Average
Low
High
Around 1,990 Million USD investments for the equivalent generation of 3,608 GWh excluding the cost of bioenergy
Legal/regulatory needs
• Modality for RE connection on grid • IPP RE licensing • Law 462 versus 288 • Adoption of the RE-EE law
Capacity Building Needs
• Design of several vocational training programs in collaboration with the ministry of education
• Adoption of a licensing program for RE installers especially for decentralized installations
• Decision makers capacity building
Progress Indicators
• Evaluation will be installed in terms of installed capacities and energy productions
• Yearly evaluation for the advancement of each of the resources development to be prepared by the LCEC and the MEW to submitted to the RCREEE and the LAS
• NEEREA decentralized installations progress report to be submitted to BdL quarterly
3/08/16
1
Cleaning Lebanon’s Electricity: The Rise of Energy Efficiency
Lebanon’s Intended Nationally Determined ContributionSector: Energy
By Dr. Sorina MortadaTechnical Consultant
July 26, 2016
1. Activity Overview
Policies targeting Energy Efficiency (EE) and Renewable Energy (RE) !
• Policy Paper for the Electric
Sector 2010• First National Energy
Efficiency Action Plan (NEEAP 2011-2015)
• Second National Energy Efficiency Action Plan (NEEAP 2016-2020)
• National Renewable Action Plan (NREAP 2016-2020)
• NEEAP 2016-2020 is a five year plan• 26 Sectoral Measures • Bottom-Up approach• NEEAP 2016-2020 will be yearly evaluated• The third NEEAP will be developed based
on NEEAP 2016-2020
Policies targeting Energy Efficiency (EE) and Renewable Energy (RE) !
Example: Building Sector Measures
B 03: Building Code
N/A GWh
B 04: Use of efficient equipment
66.4 GWh
55.6 GWh
B 09: Capacity Building for refurbishment
N/A GWh
B 02: Testing Facility for Buildings Components
B 05: Energy Performance Certificate for BuildingsB 06: Energy Audits
for public buildings
B 07: Implementing measures in selected public buildings
B 08: Pilot Project
B 01: Double Wall Ordinance
26.5 GWh
N/A GWh
0.34 GWh
N/A GWh
N/A GWh
148.9 GWh37.2 MUSD
NEEAP 2016-2020!
Power Sector 686.1 GWh
473.5 MUSD
Horizontal 49.2 GWh
587.8 MUSD
Building Sector
148.9 GWh37.2 MUSD
Industry & Agriculture610.2 GWh
120.6 - 215.6 MUSD
Public Sector19.7 GWh2.2 MUSD• Total Savings 1,514 GWh
• 1,221.5-1,316.5 MUSDFor an expected energy demand of
31,344 GWh in 2020 (BAU)• Decreasing the demand Growth
rate from 7% to 5.81%
3/08/16
2
2. Workplan
Status of actions
• NEEAP 2016-2020 published in March 2016
• The implementation of some measures has started – Energy Audits in Public buildings– Financing Mechanism for municipalities– Building code
3. Gaps and Needs
Cost Estimation and Financial Needs
MeasureFunds needed
(MUSD) Funds Source
Total 1,221.5-1,316.5
Power Sector 473.5Covered though the budget allocated to implement the policy paper for the electricity sector for the 5 measures
End-use 748-843
Horizontal End-use measures 587.875
• NEEREA• Budget not available for 3/5
measures• Budget to be made available by
MEW for EE law
End-use measures in the building sector 37.2
• Budget not available for 7/9 measures
• Pilot project, budget LCEC• Measures in public buildings,
Potential Fund World BankEnd-use measures in industry and Agriculture 120.6-215.6
• Budget not available for 3/3 measures
Energy efficiency in the public sector 2.2
• Budget not available for 3/4 Measures
• Replacing 9,000 lamps for street lighting to be covered by MEW
Legal/regulatory needs• Need of an EE and RE law (measure H05)
– Mandatory standards for Equipment– Building Code– Double Wall ordinance– Mandatory Energy audits especially for the
Industry and the public buildings
Capacity Building Needs• B 09: Capacity Building for refurbishment • H 03: Awareness Campaign and Capacity Building
– School curriculum especially technical schools and institutes to include energy efficiency courses such as efficient heating and cooling, heat recovery, efficient buildings...
– Integrating Green Diploma such as ProGreen program initiated by AUB, LAU and AUC, and the RE masters at the Lebanese university with ESIB/USJ collaboration, Schneider University
– Promoting online student training programs – Organizing continuous training sessions for installers of energy efficiency
solutions, building constructers (Frame installation, pipes insulation, infiltration...)
– Installing a certification system for contractors in the building and the industrial sectors
– Installing a certification system for Operation and Maintenance works– Establishing periodic examination and certification for the professionals
3/08/16
3
4. Tracking Progress
Measure ContentExample of An Energy Efficiency Measure in the Agriculture Sector
Progress Indicators Institutional Arrangements
• The LCEC has already evaluated the first NEEAP (2011-2015)
• An evaluation procedure is already set• The second NEEAP 2016-2020 is quantitative
=> easier to monitor and evaluate• Using the Output and outcome indicators of
each measure=> Savings achieved (kWh) vs Savings expected
(kWh)
5. Outlook
Keys to success
Capacity Building Funds
Political security and Adoption of NEEAP 2016-2020 target
Year 2020: Saving More than 1,514 GWh
1
LEBANON: Derisking Renewable Energy Investment Selecting Public Instruments to Promote Wind and Solar PV Investment in Lebanon
Mischa Repmann, Senior Advisor INDC Working Group Event, Mövenpick Hotel, Beirut JULY 26th, 2016
26.07.2016 LEBANON: Derisking Renewable Energy Investment 2
The Objective: to make RE investment cost competitive with the business-as-usual investment, typically fossil-fuel based energy
Theory of change: Policymakers to derisk as much as possible, before paying for the remaining incremental costs by incentive mechanisms.
The question: What is the best selection of public instruments?
Cap Ex/ Depreciation
Op Ex
Cost of Debt Cost of Equity
Gas (CCGT)
Wind (onshore)
Developed country
Developed country
Levelized Cost of Electricity
(LCOE)
Derisking Renewable Energy Investment High financing costs penalize renewable energy
Developing country
post derisking
€/kWh
Developing country
€/kWh €/kWh
Developing country
€/kWh €/kWh
High financing cost reflecting a range of investor risks in developing countries
Public instruments can assist the private sector through reducing/ transferring investor risk
26.07.2016 LEBANON: Derisking Renewable Energy Investment 3
Developed country
The UNDP DREI Methodology
Developing country
post derisking
€/kWh
Developing country
€/kWh €/kWh it is quantitative: LCOE modeling it evaluates the public instruments based on key performance metrics
Risks such as: 1. Power market risks 2. Permits risks 3. Social acceptance risks etc.
it measures the perceived probability and impact of risks
it measures the percieved effectiveness of public instruments
Instruments such as: 1. Well-defined regulation 2. Streamlined permitting 3. Loan guarantees etc.
#1 Risks
#3 etc. #2
#1
etc. #3
Best in Class developed country
%
Cost of equity/debt
Derisking instruments
Pre derisking
%
Post derisking
%
#2
Wind (onshore)
à Stakeholder interviews:
How does the private sector view the investment risks surrounding RE?
How does the private sector view the ability of public instruments to mitigate these risks?
26.07.2016 LEBANON: Derisking Renewable Energy Investment 4
#1 Risks
#3 etc. #2
#1
etc. #3
Best in Class developed country
%
Cost of equity/debt
Derisking instruments
Pre derisking
%
Post derisking
%
#2
Source: UNDP, 2015/2016 Preliminary data
Cost of Equity
Best-in-Class Country
Pow
er M
arke
t R
isk
Perm
its R
isk
Tech
nolo
gy/re
sour
ce R
isk
Grid
/tra
nsm
issi
on R
isk
Soci
al A
ccep
tanc
e R
isk
Cou
nter
part
y R
isk
Fina
ncia
l Sec
tor R
isk
Polit
ical
Ris
k
Pre-Derisking
Mac
roec
on. R
isk
Cost of Equity
Pre-Derisking Po
wer
Mar
ket
Perm
its
Tech
nol./
reso
urce
Grid
/tra
nsm
issi
on
Soci
al A
ccep
tanc
e
Cou
nter
part
y
Fina
ncia
l Sec
tor
Polit
ical
Post-Derisking
Cur
renc
y/m
acro
14.8% 18% 18% 8.0%
-3.2%
1.3% 0.4% 0.4% 0.5% 1.1%
1.8% 1.5%
1.4% 1.6% 0.5% 0.1% 0.1% 0.1% 0.5% 0.9% 0.3% NA
0.5%
Instruments adressing risks related to:
Example: DREI Nigeria Study (Solar PV target) Financing cost waterfalls, pre- and post derisking
26.07.2016 LEBANON: Derisking Renewable Energy Investment 5
Example: DREI Nigeria Study (Solar PV target) Study outcome: impact evaluation
If USD 301 m is invested in public derisking measures to promote utility scale solar PV in Nigeria, this can have the following impacts:
Catalyzing private sector funding • UDS 1.869 billion in private sector investment
Generating economy-wide savings • USD 960 million in lower premium prices for
Solar PV over the next 20 yrs
Better affordability for end-users • Solar PV generation costs (LCOE) decrease from USD 10.5 cents/kWh to USD 7.7 cents/kWh Benefit the environment • Emission reductions of 26 Mt CO2e over the next 20 years
Source: UNDP, 2015/2016 Preliminary data
Source: UNDP, 2015/2016 Preliminary data
26.07.2016 LEBANON: Derisking Renewable Energy Investment
• Lebanon is seeking to put in place an enabled environment for RE investments, supported by UNDP
• International consultant First Climate and local consultant Mr.Zakaria Rammal were contracted to perform the DREI analysis for both wind energy and solar PV investment opportunities
6
The DREI Lebanon Study: Background
• In 2013, 6.6% of electricity produced from RE (hydro)1)
• In 2013, fossil fuel subsidies constitute 7% of GDP (mainly direct payments to EDL for fuel purchase)2)
• Domestic generation does not meet demand, private generators filling this gap constitute a shadow market3)
• Clear regulation of the electricity sector elaborated but not yet into force (Law 462)
• Limited private sector RE investment to date
1) IEA 2015, www.iea.org 2) CCCU at MoE, 2015; Fossil Fuel Subsidies in Lebanon 3) MoE 2015; National GHG Inventory Report and Mitigation
Analysis for the Energy Sector in Lebanon
Oil
Hydro Nat. Gas
Electricity generation by fuel Current status
Source: IEA 2015, www.iea.org
2
26.07.2016 LEBANON: Derisking Renewable Energy Investment
• Lebanon is seeking to put in place an enabled environment for RE investments, supported by UNDP
• International consultant «First Climate» and local consultant Zakaria Rammal where contracted to perform the DREI analysis for both wind energy and solar PV investments
7
The DREI Lebanon Study: Background (cont.)
• 12% RE by 2020 (2010 policy paper)1)
• 20% RE by 2030 (conditional INDC target)2)
• Specific targets for wind energy and solar PV are yet to be defined
• Lebanon has excellent wind and solar resources 1) MoEW 2010; Policy paper for the electricity sector 2) GoL 2015; Lebanon’s Intended Nationally Determined Contribution
Source: CEDRO, 2011
Source: Focus Solar, 2009
Lebanon’s RE targets Wind and solar resources
à National Renewable Energy Action Plan (NREAP, work in progress)
26.07.2016 LEBANON: Derisking Renewable Energy Investment
• Today: Start of Kick-off Mission • Conduct ca. 15 structured interviews with equity and debt investors over the next 3 days
• Continue data collection for LCOE modeling and performance evaluation
• Meet stakeholders from Ministries, UNDP, and support programs behind the DREI Lebanon initiative:
8
The DREI Lebanon Study: Next Steps
Mischa Repmann Nikolaus Wohlgemuth First Climate (Switzerland) AG Brandschenkestr. 51 CH-8002 Zürich, Switzerland Phone: +41 44 298 2800 [email protected] [email protected]
CONTACT: UNDP Lebanon:
Vahakn Kabakian Portfolio Manager
United Nations Development Programme Ministry of Environment Beirut Central District, Lazarieh Center PO Box 11-2727, Beirut, Lebanon Phone: +961 1 97 65 55 [email protected]
UNDP DREI New York:
Oliver Waissbein Leader UNDP DREI work
United Nations Development Programme Bureau for Policy and Programme Support 304 E 45th Street, FF-924 New York, NY 10017, USA Phone: +1 212 906 3637 [email protected] www.undp.org/DREI
26.07.2016 LEBANON: Derisking Renewable Energy Investment
Back up
10
26.07.2016 LEBANON: Derisking Renewable Energy Investment
Stage 4: Evaluation
The UNDP DREI Methodology (cont.)
11
Stage 3: Levelized cost
gas, diesel, hydro,
etc.
Baseline Pre-derisking RE
Post-derisking RE
Levelized Cost of Electricity: (LCOE, €/kWh)
Incremental cost
Calculating life cycle costs and incremental costs for the RE investment.
Analyzing the public instruments in terms of 4 key performance metrics.
€
Cost of public instr.
€
Investment leverage ratio:
Total RE investments
x
€
Cost of public instr.
€
Savings leverage ratio:
Pre-derisking incr. costs
x €
€
Post-derisk. incr. costs
savings
€/ kWh
Pre-derisking LCOE
€/ kWh
End user affordability:
Post-derisking LCOE
%
€/ tCO2e
Pre-derisking abate. cost
€/ tCO2e
Carbon abatement cost:
Post-derisking abate. cost
%
Sensitivity analyses on key inputs and assumptions
Annex 4. Waste Sector Presentations
03‐Aug‐16
1
From Recycling to Energy Recovery: Solid Waste Mitigation
Lebanon’s Intended Nationally Determined ContributionSector: Solid Waste
Eng. Sabine GhosnHead of Urban Environment Pollution Control Department
Ministry of Environment
1. Activity Overview
Overview of Policy or Action• Until 2015: up to 15% of waste recycled and/or composted (Source:
MOE/GEF/UNDP). No WtE implemented until now• Draft Law on the ISWM in Lebanon dated 2005: approved by the CoM but waiting
for endorsement by the Parliamant.• Relevant CoM Decisions:
9 Decision # 55 dated 1/9/2010: advocated WtE technologies in large cities and potentially in other regions in Lebanon (draft legislation re production & selling of energy recovered from waste)
9 Decision # 1 dated 12/1/2015: approving RAMBOLL feasibility study on WtE and requesting CDR to initiate WtE bidding process (preparation of ToRS).
9 Decision # 1 dated 17/3/2016: transitional period (short‐term plan) for SWM‐max 4 years: adoption of 2 new sanitary landfills (Bourj Hammoud & Costa Brava)
9 Decision # 19 dated 27/4/2016: related to the review of ToRs developed by RAMBOLL for the initiation of the WtE bidding process.
Overview of Policy or Action• MoE circular 8/1 dated 16/11/2015: Guidelines on the
Integrated Municipal Solid Waste Management for municipalities and Union of Municipalities: – encouraging the application of the ISWM pyramid with emphasis on
adopting sourting at source & recycling;– Listing all the material that can be recycled;– Encloses a list of recycling centers with locations and contact details.
• MoE circular 2/1 dated 18/2/2016: Actual status of ISWM in Municipalities (questionnaire)
2. Workplan
Status of actions
• Short‐term plan: CoM Decision # 1 dated 17/3/2016: transitional period for SWM‐max 4 years: adoption of 2 new sanitary landfills (Bourj Hammoud & Costa Brava) for the disposal of Municipal SW from Beirut & Mount Lebanon
03‐Aug‐16
2
Status of actions• Long‐term plan: CoM decisions 1 dated 12/1/2015 & 19 dated 27/4/2016:
approving RAMBOLL feasibility study on WtE and requesting CDR to initiate WtE bidding process (RAMBOLL to prepare ToRS)
• ToRs recommendations:– 1 WtE facility in GBA– Max capacity: 2000t/day of MSW– Operation and maintenance of WtE plant: 15 years– Calorific Value: from 7 MJ/kg to 9MJ/kg through sorting/composting 15 to 20% of
organic waste from the total MSW before incineration.– Pre‐qualification phase: (May 2016 – August 2016)– Bidding process: September 2016 – mid‐2017– Construction phase: till end of 2021– Operation phase: beginning of 2022
Tentative dates.
3. Gaps and Needs
Cost Estimation and Financial Needs
• To date, No Financial Assessment for the implementation of the SWM plan has been conducted/issued
• Only the RAMBOLL feasibility study on WtE (long‐term plan)• The study includes recommendations related to costs (CAPEX
& OPEX, gate fee…), funding schemes, and the source of funding.
• Need for a clear national financing and cost recovery system (MoE submitted related proposals to the parliament) (ISWM law)
Legal/regulatory needs• Many legal/regulatory barriers to achieve the full implementation of the solid waste management plan:– No legal framework for SWM: ISWM law still in its draft version: waiting for endorsement by the parliament
– Absence of related decrees (stated by the draft law)
• Need for establishing institutional & regulatory framework for SWM through enactment of the ISWM law & its related decrees as follows:
Legal/regulatory needs cnt’d• Decree that sets an appropriate financing and cost recovery system• Decree related to the adoption of the SWM pyramid and awareness
raising• Decree related to the adoption of all the principles related to SWM
mainly the Polluter Pays Principle• Decree for the establishment of an independent national body
responsible for SWM:– MoE: responsible for setting strategies and national plans for SWM,
reviewing EIAs, Monitoring, setting Environmental Limit values– Municipalities: setting their own local SWM plans for sorting at source,
collection and transport of the MSW– National waste management authority: under the custody of MoE:
responsible for developing ToRs, follow up on bidding processes.
Capacity Building Needs
• CB and awareness raising must be done in collaboration with municipalities, NGOs, private sector & related public administrations: Ministry of Education, MoI, MoIM…
• MoE needs financial assistance to develop the National Action Plan related to capacity building and awareness raising. Required budget (Funds) was already allocated (Dec 55/2010) by the CoMin 2010 but not granted to the MoE to date.
03‐Aug‐16
3
4. Tracking Progress
Progress Indicators
• Progress Indicators for the solid waste management in Lebanon are available but need to be updated/re‐assessed:– Waste generation/capita/day– Waste composition– Waste quantities generated (in GBA and ML)– Calorific Value of the SW– Treatment/disposal rate: landfilling, recycling and open dumping rates
(Estimates)
Institutional ArrangementsIn order to track the progress of MSW activities: • All proposed plans/projects must be approved by MoE prior to
implementation: through EIAs• All activities must be implemented in compliance with all
existing legislations.• MoE coordinates with municipalities the proper
implementation of their waste management plans through:– Technical assistance– Controlling & monitoring the implementation of SWM activities
(surveys)– Capacity Building, awareness creation and all related activities
5. Outlook
Keys to successThe key elements which will ensure the solid waste management plan, and therefore the INDC’s implementation:1. Endorsement of the ISWM law2. Issuance of all related decrees and decisions 3. Creation of an independent body to manage the sector (rule out political
interference)4. Setting a financial & cost recovery system5. Responsibility of the collection of waste should be assigned to
municipalities6. Responsibility of waste treatment & disposal: centralized or owned by the
private sector7. All costs recovered and money collected must be directed to
municipalities for funding waste collection and treatment activities
By implementing the above: Lebanon will be able to reach INDC mitigation targets in the SW sector:
• Achieve a recycling rate higher than 25 to 30%
• Will we be able to recover energy from more than 2000 tons of MSW per day
3/08/16
1
Lebanon’s Wastewater strategy
Lebanon’s Intended Na4onally Determined Contribu4on
Sector: Waste
Mufid Duhayni Head service of Environment
1. Overview of the current situa4on
Overview of the current situa4on
• 60% of the popula4on are connected to wastewater collec4on networks.
• Only 8% of wastewater reaches the four opera4onal plants and is treated for the secondary step
14 Under Design 20 Required Funding
6 completed not operational 7 Under construction
4 Operational –scd+3 primary
Status of the main 54 planned Treatment Plants
2. Workplan
• Collect and treat all wastewater according to na4onal standards and regional agreements.
• If economic, reuse treated wastewater for agriculture and industry and recharge of the aquifer
The objec4ves
3/08/16
2
Status of ac4ons
Sector targets and initiatives developed : • For the short-medium term (2011-2015) • For the long term (2016-2020) • To serve the projected population(2025-2030)
- Council of Development and Reconstruction : 1265 M$
- MoEW : 60 M$ - Ministry of Housing : 30 M$ - Municipalities : unknown values - NGOs : 25 M$ from USAID +
unknown values from EU
Executed plans
Sector targets 2011-2020 • Increase the present wastewater collection to
95% by 2020 • Pre-treatment of all industrial wastewater by 2020 • Increase reuse of treated effluent to 50% by 2020 • Secondary treatment and reuse of all inland
wastewater by 2020 • Full recovery of O&M costs by 2020 (“polluter
pays” principle) – Water Code
3. Gaps and Needs
Some causes of the current situa4on
• The investment program is not well coordinated and needs to be revised (changes in population and rates).
• Investments selected from donor, political and regional preferences rather than rational planning.
• Slow implementation (10 years from inception to completion)
Cost Es4ma4on and Financial Needs
3/08/16
3
Legal/regulatory needs
• No policy on pre-treatment of industrial wastewater
• No guidelines on the selec4on of the most cost-effec4ve treatment techniques
• No policies for systema4c reuse of treated wastewater
• Coordina4on and responsibili4es are unclear and lost between CDR, MoEW, WEs, municipali4es and other ministries
Capacity Building Needs
• No workable opera4onal model for service delivery.
• Water Establishments have legal responsibility for opera4on but
- No opera4onal framework, - No experience
- No capacity
Annex 5. Transport Sector Presentations
3/08/16
1
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
SISSAF Project & the Formula3on of the
Land Transport Strategy for Lebanon
Lebanon’s Intended Na3onally Determined Contribu3on
Sector: Transport
George Xanthakos, Transport Key Expert / SISSAF-EU Project
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
1. Ac3vity Overview
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
SISSAF Project
• EU Founded Technical Assistance Project
• Been in Lebanon since 2013
• Assis3ng MPWT as well as MoEW
• Ac3vi3es of this project are directly related with issues concerning the ins3tu3onal capacity of each Ministry
• Especially for Transport Sector there is a component related to the formula3on of the Land Transport Sectors Strategy
• Strategy will be announced by the end of September 2016 covering all aspects raised by relevant stakeholders
• Although in dra[ form main issues can be presented as follow
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Strategy of Land Transport Sector
• Implementation in three periods
Vision
SafetyIns@tu@onalCapacity Economy
Targets
GreenMobilityPolicy
Taxa@onPolicy
Legisla@onofLaws
SafetyPolicy
Programs
GuidelinesStandards …
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
2. Workplan
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
3/08/16
2
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
3. Gaps and Needs
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Cost Es3ma3on and Financial Needs
• Financial Assessment – CBA for the basic infrastructure projects has been developed a Three scenarios have been developed (10%, 20% and 40%)
– All scenarios are economically profitable
– The most the Government invest the higher are the economic benefits
– For the most advanced scenario the cost of investment and opera3on es3mated around $8bn
– Further assessments needed related to future feasibility studies of each project
– The funding is not yet secured as further ac3ons are needed with Government and Donors Coordina3on group (formulated under SISSAF)
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Legal/regulatory needs
• Within the strategy there are ac3ons related directly
to the legal and regulatory needs
• New Legal/Regula3on framework should be added
• Rec3fica3on of the Dra[ Transport Law is one of the
most important ac3ons that should be taken
• Secondary needs related with the crea3on of
standards and the encouragement of PPP should be
taken into considera3on
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Capacity Building Needs
• Capacity building should be strengthen
• Lack of personal is the most important issue in
order the strategy to be applicable
• Addi3onal equipment should be purchased
• Training seminars should be applied in regular
basis
3/08/16
3
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
4. Tracking Progress
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Progress
Indicators
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Ins3tu3onal Arrangements
• Un3l now there is no provision of a mechanism
to monitor the ac3vi3es of the sector
• Within the Strategy a mechanism of
monitoring and following up is provided
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
5. Outlook
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Keys to success
• There are no key element that can ensure the
strategy implementa3on if there is no will to
do so
• In Lebanon, there is a great need of having a
strategy being implemented and for this the
Government should act in the direc3on of
applying
SUPPORTPROGRAMMEFORINFRASTRUCTURESECTORSTRATEGIESANDALTERNATIVE
FINANCING EuropeAid/133349/C/SER/LB
Delegation of the European Union in
Lebanon
MinistryofPublicWorksandTransport
RepublicofLebanon
Next Steps
• Presenta3on of the Land Transport Sector Strategy at September 2016
• Adop3on of (poten3al) comments by November 2016
• Assist to endorse the Strategy by the
Government
• Further assessment of programs men3oned at the Strategy
Revitalizing the Mass Transit System for Passengers
Lebanon’s Intended Nationally Determined ContributionSector: Transport
Rami SEMAAN – Managing Partner TMS Consult
1. Overview
Overview• Stakeholders and responsibilities: some
overlapping roles; multiplicity of stakeholders in the sector; absence of structural framework and strategic vision.
• A stumbling "decentralization" at the national level: a negative parameter for developing urban transport.
• Predominance of central authority: concentration of the decision making process, in spite of local communities’ institutional prerogatives.
Overview• Confusion between issues: economic, social and
financial.
• Impacts:
– Isolation of certain cities or districts, in contrast with high concentration of economic activities in central areas.
– Increased congestion and, subsequently, transport costs (considering the predominance of individual modes).
– Small / individual operators’ level, acting almost as an informal sector, and increased hidden unemployment with public operators.
Current Modal Split Motorization
GDP
per H
abita
nt
Relation between GDP & Car ownership
2. Reason of Reform
Reasons for reform• Increased car use and congestion, causing
accessibility problems and negatively impacting the economy and the environment.
• Motorization and increasing use of individual modes, and a highly unbalanced modal split.
• Recurring deficit of public operators, and chronic discrepancy in favor of individual modes.
• No resources / specific taxes, which limits investments on strategic projects within a long-term master plan.
• Rather random budgets, resulting mostly in operating subsidies under a general social label.
Actions• Draft legislations under preparation at the central
administration level:
– As part of a willingness to introduce some carefully dosed decentralization, sponsored by the central government.
– Increasing use of public transit, bicycles and walking is starting to become an important issue for certain agglomerations, with cautious support from the central government.
– Parking control and regulation.
– To promote collective mass modes without offending local customs.
3. Gaps and Needs
Financial Context
• Deficits are essentially due to inadequate pricingcombined with the non-participation of economicsectors to revenues, and to non-optimizedmanagement.
• Private operators involved on profitable segments,with small / medium capacities.
• Lack of major investments (over long period)
Institutional and legal aspects
• Several bills have been drafted for the creation of a national Organizing Authority (regulatory body) with regional agencies in major cities.
• However, the most "daring" of these projects propose a limited and controlled autonomy, and remain quite vague on funding patterns taxes allocation & resources.
Capacity Building Needs
• Restructuring of Land Transport entities (Ministry of Public Works & Transport –Municipalities – Ministry of Interior)
• Fields: pricing, regulation, enforcement, monitoring…
Institutional Arrangements for Railway• Fully Integrated Rail System: one single entity (Public or
Private) in charge of operation and maintenance of all rail components (infrastructure, superstructure and rolling stock).
• Vertical separation which includes as a minimum:– Owner of infrastructure (usually public) responsible
for its maintenance– One or more operators in charge of freight and
passenger train operations, and maintenance of the rolling stock
– A rail regulator
4. Tracking Progress
Progress Indicators
• The proportion of passengers using public transport means.
• The use of alternative modes (walking, bicycles…)
• Contribution to a better environment (emission CO/CO2, noise…)
• Balance of investments in the transport sector.
Indicator
% o
f PT
usag
e al
l mod
es GDP of a City & %of PT usage (all modes)
Indicator
% o
f PT
usag
e -M
otor
ized
mod
es Relation between Nb. of vehicles by person & % of PT usage - Motorized modes
5. Outlook
Keys to success
• Comprehensive institutional reform
• New taxation policy
• Investment in public transport means
• Implementation of bus network system (GBA)
• Restructuring of the funding process
• Parking policy for major cities
Keys to success
• Participation of Municipalities (at local and regional levels)
• Law enforcement at all levels (national and local)
• Sustainable funding (operation balance, subsides…)
1
NAMA in Lebanon’s Private Road Transport Sector (FEVs)
First Meeting of the INDC Working Group July 26, 2016 Nikolaus Wohlgemuth First Climate
NAMA in Lebanon‘s Private Road Transport Sector
Background – Consortium Partners
2
International consultant consortium
Local consultant
International Backstopping
NAMA in Lebanon‘s Private Road Transport Sector
Road Transport Sector in Lebanon
3
• Explicitly mentioned in Lebanon’s INDC: “In the transport sector, restructuring is planned through a number of large infrastructure initiatives aiming to revive the role of public transport and achieving a relevant share of fuel efficient vehicles.”
• Transport sector contributes to 21% of national greenhouse gases, with road transport being the largest contributor in this sector (~96%).
• 1,471,933 registered cars in Lebanon in 2014 (private vehicles and taxis), with 54% of the fleet older than 15 years
• Policies on maximum age of vehicles or emission norms to reduce the number of inefficient and polluting vehicles do not exist or are not complied within Lebanon
Policies and actions are needed to reduce the emissions from the road transport sector and/or the reliance on the private car.
NAMA in Lebanon‘s Private Road Transport Sector
Building Blocks of the NAMA
4
The implementation of a car scrappage and replacement program to replace old and fuel intensive vehicles with new FEVs (private cars and taxis)
Setting up and operating an institutional framework for managing and operating the NAMA
Establishing the necessary legal and regulatory framework (including an incentive scheme for private car owners to switch to FEVs)
Ensure the promotion of and awareness building for FEVs
Capacity building of key NAMA stakeholders
NAMA in Lebanon‘s Private Road Transport Sector
Interventions, Measures and Phased Approach
5
B.Scrappageprogramispreparedandincen1veschemedefined C.Promo1onandawarenessbuilding D.Scrappageprogram
implementa1on
A.1ACoordina1ngEn1ty(CE)andanImplemen1ngEn1ty(IE)areestablished
andopera1ng
B.1Eligibilitycriteriaareassessedanddefined&emissionstandardsassessed
andgivenlegalforce
B.2Incen1veschemeforthescrappageprogramislegallyestablishedand
opera1ng
D.1Pilotscrappageprogramisimplemented
D.2Extendedscrappageprogramisimplemented
C.1Awarenesscrea1onforthescrappageprogram
A.Ins1tu1onalframeworkforthescrappageprogramisestablished
Phase1
Phase2
C.2Broadpromo1onofFEVsbeyondthescrappageprogram
B.3Theupgradingofpar1cipa1ngscrappagesitesisensured
A.2NAMAFinanceFacilityisestablishedandopera1ng
NAMA Phase 1 (2017-2020): • Establishment of the enabling
environment for the car scrappage and replacement program
• Main intervention leading to GHG emission reductions is a pilot scrappage program (2019-2020) with limited scope, focusing on taxis only
NAMA Phase 2 (2021-2030): • Scaling up of the car scrappage
program to cover both red plate (taxis) and white plate (private cars) vehicles
• NAMA target: 100% replacement of vehicles older than 15 years by 2030 (20% conditional target considered in the INDC!)
• Broad promotion program for FEVs
NAMA in Lebanon‘s Private Road Transport Sector
Policy Alignment
6
The NAMA shall support the establishment of a regulatory framework, including incentive schemes for the road transport sector. The NAMA is aligned with existing national and sectorial policies, plans and strategies, including:
National Sustainable Development Strategy (Draft) Vehicle fleet improvement, greater fuel efficiency, transformational change of road transport sector
National Land Transport Policy and Strategy Mobility and road safety improvements, economic development, human resource development
Draft Law on the Protection of Air Quality Reduce, measure and report on air pollution from transport sector
Draft amendment of Law 341/2001 (awaiting parliamentary approval) Provision of incentives for FEVs, definition of emission limit values for new cars, reference to international norms
Third National Communication (TNC) Reduced GHG emissions, increased share of FEVs
INDC Reduced GHG emissions, public transport and FEVs.
Second National Energy Efficiency Action Plan (NEEAP 2016-2020) Discussing energy efficiency improvements in the transport sector in three NAMA ideas
2
NAMA in Lebanon‘s Private Road Transport Sector
Key Results: NAMA Emissions
7
Phase1reduc1ons(tCO2)
Phase2reduc1ons(tCO2)
Totalreduc1ons(tCO2)
Rela1vereduc1ons
2017-2020 2021-2030 2017-2030 2017-2030Whiteplates 0 9,919,000 9,919,000 13.5%Redplates 37,000 1,076,000 1,113,000 18.9%Total 37,000 10,995,000 11,032,000 13.9%
Emission reductions: expected GHG emissions reductions over the full NAMA timeline (2017-2030) for a replacement of 100% of cars older than 15 years
Baseline: calculated in a bottom up approach based on the emissions of each car, Lebanon’s entire car population and estimates for autonomous replacement of old cars by new cars
Baselineemissions(tCO2) 2017-2030Whiteplates 73,406,000Redplates 5,875,000Total 79,281,000
NAMA in Lebanon‘s Private Road Transport Sector
Key Results: Financing Approach
Full NAMA is financeable in terms of the combination of national and international support, national revenues and private sector participation Appropriate incentive scheme designed to ensure key activities are attractive enough to stimulate the FEV market and the operation of scrappage sites
M
Currently preparations to apply for international support from the NAMA Facility’s 4th call are undertaken – see http://www.nama-facility.org
8
Type Phase1(2017-2020)USD Phase2(2021-2030)
USDTotal(2017-2030)
USDInternaFonalSupportPartners
(CapacityBuildingGrants)1,590,000 546,000 2,136,000
InternaFonalSupportPartners
(GrantSubsidyScheme)13,028,000 0 13,028,000
NaFonalSupport
(FundsallocatedbyGovt.)5,636,000 90,000 5,726,000
NaFonalrevenues(taxes&fees)re-investedinthe
NAMA
(GrantSubsidyScheme)
0 3,646,288,000 3,646,288,000
EsFmatedFEVsFmulatedmarketsFmulusvalue
(VehiclePurchases)39,843,000 14,267,949,000 14,307,792,000
Total 60,097,000 17,914,873,000 17,974,970,000
NAMA in Lebanon‘s Private Road Transport Sector
Key Results: GHG Abatement Costs
9
The NAMA’s first intervention (pilot scrappage program is implemented) is entirely supported by international contributions, while the second intervention (extended scrappage program is implemented) is supported by National Government contributions: The management structure and the key institutions foreseen for the NAMA are based on the existing stakeholders in the road transport sector: • MOE to host the NAMA Coordinating Entity (CE) • Traffic, Trucks and Vehicles Management Authority of the MOIM to host the NAMA Implementing
Entity (IE) • MOF (hosting the Finance Facility) to be responsible for coordinating and overseeing overall NAMA
financing
*Calculated values may differ slightly from NAMA DD as rounded figures are shown here
Phase1(VehiclereplacementsfinancedbyInterna>onalSupportPartners)
Phase2(Vehiclereplacementsfinancedby
Na>onalGovernment)
YearofEmissionReduc1on 2017-2020 2021-2030Emissionreduc>ons(tCO2e) 37,000 10,995,000FinancialSupport 14,618,000 3,646,378,000GHGmi1ga1oncosts*(USD/tCO2e) 395 332
NAMA in Lebanon‘s Private Road Transport Sector
Takeaways
The NAMA… • …aims to foster long-term transformational change in the private
road transport sector • … will help to change the prevailing practice of high fuel
consumption and high car emission levels and to support a systematic change towards Fuel Efficient Vehicles (FEVs)
• … will contribute directly towards achieving the GHG mitigation and energy efficiency targets outlined under Lebanon´s INDC
• … is closely aligned with existing country and sector strategies and policies
Without it, Lebanon’s road transport sector would continue to deteriorate due to the continuing growth in the number of private cars and no regulation in place for limiting fuel use or incentivizing fuel efficiency
10
NAMA in Lebanon‘s Private Road Transport Sector
NAMA Design Document
11
To access the NAMA DD, please contact: Ministry of the Environment Service of Environmental Technology [email protected]
CONTACT: Nikolaus Wohlgemuth · Senior Advisor First Climate (Switzerland) AG Brandschenkestr. 51 CH-8002 Zürich, Switzerland Phone: +41 (0) 44 298 2800 Fax: +41 (0) 44 298 2899 [email protected]
Annex 6. Forestry Sector Presentations
3/08/16
1
The 40 Million Chances to Reduce Lebanon’s Emissions
Lebanon’s Intended Na<onally Determined Contribu<on
Sector: Forestry
Dr. Chadi Mohanna
Ac<vity Overview
Overview of the NARP (National Afforestation and Reforestation program)
The 40 million trees program
TheMinistry of Agriculture with the FAO assistance developedthe NARP, which aims at increasing forests from 13% ofLebanon’stotalarea(currently)to20%overaperiodof20years.
In December 2012, the Lebanese Government launched the 40milliontreesprogram.
ImplemenQng the NARP will have huge economic, social andenvironmentalimpactsontheLebanesesociety.
Expected objectives from NARP
IncreasingtheforestcoverofLebanonby7%,parQcularlyonpublicland
MaximizingtheforestfuncQons
AdapQngtheforestandagriculturesystemsinLebanontoclimatechange
EstablishingsiteswithimprovedproducQoncapacity
NurturingthePublicPrivatePartnershipsasagoodgovernancemodel
Updates on the NARP
Thus
Many projects and acQviQes are happening in thecontext of the 40 million tree program but not allrevolvearoundtheplanQngacQvity.
Thecounterismovingforward…Butwecannotgiveanumbernow
AGRICULTUREANDRURALDEVELOPMENTPROGRAMME(ARDP)
Fundedby:EuropeanUnion
ImplementaConphase:
July2011–April2019
Implementedby:MinistryofAgriculture(MoA)
UpdatesontheNARP ARDP
3/08/16
2
ARDP1:TASUPPORTFORTHE“40MILLIONTREES”PROGRAMME
FORESTATION/REFORESTATIONPILOTMASTERPLANINLEBANON
Outputsoftheproject:
-CadastraldataandMapsfor1,133villages
-Reportsoffieldsurveystoover60villages
-Acatalogueof63speciesthatcanbeplantedinLebanon
-TheelaboraQonof9forestaQon/reforestaQonmodels
- A Socio-economic methodological approach for villageconsultaQons
- InteracQve ICT applicaQon containing all the outputs andorganising these so as to provide MoA/RDNRD with adecision-makingsupporttool
UpdatesontheNARP ARDP
Villages borders
Reforestation sites in a village LULC of the village
Altitude Soil type
3/08/16
3
Reforestation site data Planting techniques
Adapted/Associated species ARDP2:PILOTFORESTATIONPROJECTSFORNGOs&MUNICIPALITIES• 5reforestaQonprojectsforNGO-municipaliQespartnerships:ongoing
Applicant Co-applicant-MunicipaliCes Region Areatobeplanted
Al-ShoufCedar
Society
جمعية أرز الشوف
Barouk(Min5H),,MaaserAlChouf(Min5
H),MrusQ(Min5H),andSaghbin(Min5
H),
Chouf
WestBekaa
25H
Universityof
Balamand
جامعة البلمند
Munjez(10H), Akkar 10H
JouzourLoubnan
جذور لبنان
Jezzine(40H), Jezzine 40H
Lebanese
University
اجلامعة اللبنانية
Hasbaya(5H),Kawkaba(5H),Baalbeck
(7H)andAramoun(?H),
Hasbaya,
Baalbeck,
Keserwan
22H
CTFC
مركز علوم الغابات في كتالونيا
DeirAlAhmar(5H),Barka(?H),and
Ainata(5H)
Baalbeck 15H
Total 112H
UpdatesontheNARP ARDP
Ongoing projects
FAOOfficiallylaunchedtheForestandLandscapeRestoraQonMechanisminJune2014(22ndCOFO)inordertoincreaseitssupporttofieldprograms(withkeysupportoftheKoreanForestService)
• Lebanonwasoneofthefirstselectedcountries
FLRMismuchneededwithinthe40milliontreeprogramespeciallywithrespectto:
• BoosQngthecoordinaQonandcollaboraQonatthenaQonallevelbetweenallstakeholders
• DisseminaQngofthetechnicalknow-how
• ImplemenQngrestoraQoninpilotsites
ForestandLandscapeRestoraConMechanisminLebanon
UpdatesontheNARP FLRM
3/08/16
4
FLRMwillhelpfillthegapsandneedsinthefollowingareas:
UpdatesontheNARP FLRM
1.Governance, insCtuConal support to theMinistry of Agricultureand enabling framework environment of Forest and LandscapeRestoraQoninLebanon
2. Facilitate the access of naQonal insQtuQons to sustainablefinancingforForestandLandscapeRestoraQon
3. Pilot acQons focused on the implementaQon of newmethodological models potenQally replicable in other Lebaneseregions
StepsfortheimplementaQonofFLRM
• PreparaQonofToRsforNaQonalconsultants• PreparaQonofLoAwithAUBonextendingtheMedscapes
resultsontheremainingoftheLebaneseterritory
• 2missionsforfundingMechanismsExperts(MarchandMay
2016)includingworkshopsandconsultaQvemeeQngswith
stakeholders
• PreparaQon of LoA between Shouf Biosphere Reserve andFAOtoconductastudyfortherestoraQonofstoneterraces
inbothKadishaValleyandShouf
• MeeQngwiththeKadishacommijee
• PreparaQon ofMoUwith Lebanese ReforestaQon IniQaQve
(LRI)
UpdatesontheNARP FLRM
Strengthening the CoordinaCon of the NaConalAfforestaConandReforestaConProgrammeinLebanon
• Technical CooperaQon Programme TCP with
FAO
• TheimplementaQonperiodisfromDecember
2015QllDecember2017
UpdatesontheNARP TCP
TCPprojectoutputs
• The TCP project aims to enhance the capacity ofMoA tocoordinatestakeholdersacQviQes in reforestaQon inordertoachievethegoaloftheNARP.
• The project aims at strengthening MoA’s field levelreforestaQon oversight, management and reporQngcapacity by developing training curriculum and providingtrainingtoRDNRDengineersandforestguards.
• The project alsowill develop amechanism to raise fundsmainly from private sectors (domesQc and internaQonal)and Lebanese diasporas to strengthen Financial resourcesmobilizaQon.
UpdatesontheNARP TCP
FFEMproject:MaximizetheproducConofgoodsandservicesofMediterraneanforestecosystemsinthecontextofglobalchanges
Outputs• EvaluaQngtheeligibilityoftheNARPtoexisQngmechanismsofcarbonfinance(ONFireport)
• Development of amonitoring protocol for the acQviQes oftheNaQonalReforestaQonProgram
• Capacitybuildingonforestcarboninventories• ElaboraQonofaForestryNAMA(ongoing)
UpdatesontheNARP FFEM
Component 4: OpCmizing and enhancing miCgaCon role of Mediterranean forests (carbonsinks), through thedevelopmentofmethodological tools toenforce localefforts toprotect/restoreecosystems
In Lebanon, this component was adapted naConally for the 40 million treesplantaConprogram
TheNAPAlignmentandLandDegradaConNeutrality(LDN)
The alignment of the NAP to the 10-Years Strategy (2008-2018) of theUNCCD,fundedbyUNEP-GEF,isunderway,anditisexpectedattheendof2016.
LebanoniscurrentlybenefidngofasupportfromtheGM-UNCCDfortheiniCaConandimplementaConofLDN.
ForestLandscapeRestoraConisoneofthemajortoolstobeusedfortheimplementaConofLDNandfortherestoraConofthelandscapemosaicinLebanon,alsowithinthecontextofthe40milliontreeprogramme
UpdatesontheNARP LDN
3/08/16
5
FrenchDevelopmentAgency(AFD)
TheRepublicofLebanonhasreceivedfundingfromtheAFDtocarry out Preliminary studies and Environmental ImpactAssessment and Social Assessment for the afforestaQon/reforestaQon project falling within the naQonal program "40milliontrees“.
UpdatesontheNARP AFD
The40milliontreeprogramwillbeachievedthrough:
CommunicaConand
Transparency
AmbiConandGoodwill Publicand
Privatesector
CooperaCon
CoordinaCon
Thankyou