ENERGY EFFICIENT PUBLIC BUILDINGS AND HOUSING IN ARMENIA Asia Pacific and Eastern Europe Regional Workshop on Nationally Appropriate Mitigation Actions (NAMA) 5 Bonn, Germany June, 2015

As a non-Annex I Party to the Convention  Armenia prioritizes transformation to the Low Carbon Emissions Development (FCCC/AWGLCA/2011/INF.1 and UNFCCC/SBI/2013/inf.12/Rev.2 compilation packages).  The Armenia’s Strategic Programme for Sustainable Development for – states need to improve building condition of public buildings.  National Energy Security Concept Action Plan (2014) – prioritizes reduction of GHG emissions and investments in the buildings energy efficiency.  Law on Energy Saving and Renewable Energy and Law on Urban Development (2014) – establishes mandatory legal provisions for building energy efficiency and reinforces building energy efficiency codes.  National Strategy on Developing Social Housing Stock for the period of and Actions Plan (2014) – calls for inclusion of EE measures in housing stock.  Government resolution 397-N on implementation of country’s commitments under a number of environmental conventions, stipulates elaboration of INDC within National Policy Context 2 Asia Pacific and Eastern Europe Regional Workshop on NAMA

NAMA Scope Direct scope:  New construction and capital renovation of public buildings and social housing.  Financing sources: National - state budget, municipal budget, public foundations and public-private partnerships (PPP) - conventional way of construction – no advanced requirements for energy performance. International – Climate Funds, IFI loans/grants - to cover additionality costs for EE. Direct Scope/Initial phase: Public buildings and social housing Residential buildings NAMA Public buildings and social housing stock 2021-> EE common practice Scaling up Asia Pacific and Eastern Europe Regional Workshop on NAMA Indirect Scope: Commercial buildings, private houses Market transformation

NAMA components 4 1. Policy and regulation: - Support to implementation of EEB policies, regulations, norms and standards; - Support in rating and certification of EEB 2. Technical support and capacity building - Trainings on EE design/maintenance/operation; - MRV of energy use/savings 4. Financial incentives for EE construction/renovation: - Co-financing of application of EE building design and technologies in construction - Availability of soft loans 3. Marketing, promotion and awareness - Support stakeholder consultations - Awareness raising campaigns - Demonstration projects Market Transformation Asia Pacific and Eastern Europe Regional Workshop on NAMA

Institutional Framework 5 NAMA Executive Unit Developers/ contractors ESCOs Municipalities State Urban Development Inspectorate Ministry of Urban Development Urban Development Programs Implementation Office Ministry of Nature Protection International financing institutions/ international donors/partners Local financial institutions Architects/ engineers Climate Change Centre NAMA Supervisory Committee Other stakeholders: Ministries of Finance, Health, Education, Labour and Social Affairs, Energy, Municipalities,… Implementing partners and beneficiaries Building managers/ operators Building users Asia Pacific and Eastern Europe Regional Workshop on NAMA

Construction/ reconstruction pipeline projects – potential area for NAMA intervention , (m 2 ) 6 Implementing agency Type building Cumulative volume projected ( ) MUD PIU Educational, Cultural, Athletic, Residential buildings 85,06596,297101, , , ,678623,234 Health PIUMedical Institutions13,5078,500 22,007 Education PIUEducational Buildings15,1489,089 51,503 Armenia SIF Educational, Pre-school, Cultural, Athletic, Social buildings 37,29541,390108,82620,32624, ,627 ASBA Social Housing Foundation Affordable rental housing 4,0005,500 7,500 35,500 Yerevan Municipality Emergency Building Resettlement info pending "Hayastan" All Armenia Fund Charity Public Building Construction/repair info pending Total volume 155,015160,776224,822142,212154,868127,178964,872 In average for 6 years 200 mln USD Asia Pacific and Eastern Europe Regional Workshop on NAMA

NAMA Financial Mechanism and Sources  In November 2013 the Government approved the action plan on implementation of measures under the Concept on Innovative financial mechanisms in the field of environmental protection.  By means of environmental fees formulate civil investment revolving fund similar to the Green Investment Scheme. 7 Asia Pacific and Eastern Europe Regional Workshop on NAMA NAMA possible financing sources State budget Municipal budget Private sector contribution Grants Concessional finance

NAMA for Funding Tentative Budget ( ) 8  Costs and budget are to be determined based on envisaged measures.  Strongly depend on the available national and international support. Asia Pacific and Eastern Europe Regional Workshop on NAMA NAMA component Budget (USD) Notes Component 1. Financial incentives to cover incremental costs for energy efficiency in planned investment programs 2-4 million Investment grants, complementing public investments for new construction and renovation Component 2. New energy efficiency rehabilitation programs for public buildings 10 – 30 million Concessional loans Component 3. Technical assistance/support for component 2 and 3 including strengthening building management and MRV 1-2 millionGrants

Framework for measurement, reporting and verification 9 MeasureReportVerify What to.. Electricity and fuel consumption; emission factors (grid electricity and fuel); net calorific value of fuel; floor area of building unit, heating degree days Description of NAMA activities Assumptions and methodologies Objectives of the actions and information on progress Emissions reductions (level of stringency tbd) Increased access to affordable and efficient housing How to… Electricity / fuel meters and/or utility bills CDM Tool for emissions factors Data on construction Default values National-level reporting procedures (i.e. biennial update reports to UNFCCC) NAMA-level reporting procedures, Biennial Update Reports to be verified by international experts NAMA-level verification Who should… NAMA implementer NAMA supporter (national and/or int‘l) When to… Continuous metering Performance monitoring annually Baseline updates National-level, biennially NAMA-level, TBD National level every 2 years NAMA-level Asia Pacific and Eastern Europe Regional Workshop on NAMA

NAMA Challenges  Access to international carbon funding opportunities and meeting the requirements.  Limited capacities for formulation and utilization of the international public and private financing opportunities.  Time scheduling of NAMA implementation to be synchronized with public budget planning and design phase of major construction/ reconstruction efforts.  GHG emissions baseline - establishment of a system for monitoring and reporting of reductions, improvement of national statistics.  Establishment of coordination scheme for NAMA implementation and monitoring.  Institutional barriers (delays in administrative processing, limited  capacity to formulate policies and strategies, weak policy implementation  and enforcement). 10 Asia Pacific and Eastern Europe Regional Workshop on NAMA

 Difficult system of MRV for the building sector for monitoring of energy savings and CO 2 emissions in buildings.  Lack of support to adopt enabling policy framework and identify, develop and aggregate technically and financial feasible EE retrofit projects.  The current conditions for loans provided by commercial banks to ESCOs and/or building owners are not preferential for EE measures: high interest rate, short payback and requirements of loan guarantees.  Demand side EE measures implementation in some aspects is not in benefit of energy supply monopolies. NAMA Risks Asia Pacific and Eastern Europe Regional Workshop on NAMA

 Environment – dual goal greenhouse gas mitigation and sustainable development. Efficient use of natural resources, i ncreased energy efficiency in new constructed and renovated public buildings and social housing.  Economic – attraction of foreign investments, reduced burden on public/family budgets for energy expenses, which is becoming more acute with growing energy prices, employment generation, as energy importing country reduced spending in hard currency.  Social – improved comfort conditions in the buildings and improved service quality, extended operational life period of buildings and reduced operation costs, creation of new job opportunities, the public budget savings can be allocated for other social programs-reduced poverty.  Political – addressed sector priority objectives, reduced country’s energy import dependence. Why NAMA in Buildings - Benefits 12 Asia Pacific and Eastern Europe Regional Workshop on NAMA

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