Climate change financial instrument for energy efficiency and renewable energy projects in Latvia

Valdis Bisters Director

Climate Policy and Technology Department

Ministry of Environmental Protection and Regional Development

Climate change policy

Climate change policy is on political agenda now and put forward challenge for:

Scientists (to understand the problem and seek for solutions)

Politicians (formulate of long, clear and binding post 2012 regime)

Business (invest into low carbon technologies, mitigate fossil risks)

Society (accept and create demand for services and change life styles)

Climate change is not only environment but also economic prerogative

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Climate change financial instrument

Green inevestment scheme under Kyoto protocol article 17 – in Latvia Climate change financial instrument (CCFI)

Established by law, implemented as state budgetary programme

CCFI implementation launched

CCFI guiding principles – transparency, accountability and efficiency

Programmatic with scaling-up of technology deployment

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CCFI programming principles (1)

Additionality

Legal (ETS, landfill directive, building code,etc)

Financial (EU Structural funds, other instruments)

Broad involvement of social partners

Eligible costs (additional environmental costs)

I = (IRES - Ifos ) x P

IRES – RES technology investment costs (Ls/kWth or Ls/kWel) according to different scales

Ifos  – fossil energy production investment costs (Ls/kWth or Ls/kWel) according to the scale

P – intalled capacity of RES technology (kW).

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CCFI programming principles (2)

Renewables

Efficient use of fossil

Energy efficiency

GHG emissions

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Sectoral GHG emission in Latvia (2006)

Energy, 45,0%

Transport, 30,5%

Agriculture, 17,7%

Waste, 6,8%Solvents and

other products, 0,6%

Industrial processes, 2,2%

Energy intensity (2005)

2.0

1.8

1.5

1.3

1.0

0.8

0.5

0.3

0.0

0.3

0.5

0.8

1.0

1.3

DKIEGBITAT

GR

DE

SE

FR

OE

CDNL

LU

ES

BE

PT

CY

MTFI

SI

La

tvijaHU

PL

LT

EE

CZ

SK

RO

BG

KPEP/IKP / TPES/GDP - 2005, (toe/000 $2000)

Elektroenerģijas patēriņš* / IKP /Electricity consumption* / GDP - 2005, (kWh/$2000)

EU-27

EU-27

Source: IEA

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Indicative Greening pipelines and Open Calls

Energy supply-side management

Promotion of biomass use including CHP plants

Biogas recovery and use, including transport

Solar heat, geothermal, small hydro, wind, etc.

Energy demand-side management

Improved thermal energy efficiency

Improved use of electricity

Technological processes

Integrated demand-side and supply-side projects

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CCFI key measure of invesment efficiency

kgCO2 y / Ls

CO2 emission factor – average 264 g/KWhth or 397g/KWhe replacing

fossil sources or electricity in the grid

Ls – CCFI funding requested

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Emisijas faktors

Fuel tCo2/MWh

Coal 0,334

Peat (Wd=40%) 0,376

Petrol 0,249

Diesel 0,268

Heavy oils 0,278

Liquid gas 0,226

Other mineral oils 0,263

Natural gas 0,202

LVMĢC data

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Open calls under implementation

Energy efficiency in municipal buildings (LVL 26 193 405)

Energy efficiency in university buildings (LVL 7 028 040)

Complex measures for GHG reductions in municipal buildings (LVL 8 521 500)

Complex measures for GHG reductions in state and municipality professional education buildings (LVL 10 225 798)

Complex measures for GHG reductions in industrial buildings (LVL 9 839 256)

Technology conversion from fossil to renewable energy sources (LVL 8 082 346)

Development of GHG reduction technologies (LVL 1 757 010)

Renewable energy use in transport sector (LVL 3 522 621)

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Open calls to be announced

Low energy housing (LVL 7 261 722)

Use of renewable energy sources for reeducation of greenhouse gas emissions (LVL 27 716 876),

Renewable energy use in household sector (microgeneration) (LVL 11 399 481)

Efficient street lighting in municipalities (LVL 2 800 000 )

Development of GHG reduction technologies and pilot project demonstration (LVL 2 793 646)

Public awareness raising on climate change issues (LVL 597 384)

Thank you for attention!More information

www.varam.gov.lv