# Greenhouse gas reductions Michael Kvetny COWI 11 May Economics

# Content  Programme objective and focus  Scope of review  Methodology  Interventions  Results  Lessons learnt Economics

# Objective and focus  Protection of the environment and promotion of sustainable development  Reduction of Greenhouse gasses through Energy Efficiency and Renewable Energy Measures Economics

# Scope of review  164 projects comprising 8 intervention types in 13 countries  152 infrastructure and 12 soft projects  90 % public sector and 10 % private sector  32 projects completed (20 %)  Total grant amount million EUR  Increase knowledge about results and outcome  Improve next programme Economics

# Methodology  Screen data from programme documents  Update database with information from questionnaires  Make site visits  Participate in lesson learnt seminar Economics

# Interventions  Number of projects Economics TypeCombinationsSingle EE-Buildings10044 Heating Systems598 Renewable Energy4118 Waste Management117 Fuel Switch80 Environmental Protection42 EE-Industry21

# Social Assistance House in Stegna, Poland Economics

# Results of review  Cost efficiency  Effectiveness  Comparison with similar programmes  Support strategy (grant rate)  Other sustainability effects  Targeting of programme  Infrastructure versus soft projects  Quality of information in programme documents Economics

# Cost efficiency  Reduction cost per unit *)Point Carbon April 2010 **) Estimate by COWI Economics TypeEUR/tCO2EUR/GJ EE-Buildings4911 Renewable Energy3642 EE-Buildings & Heating System288 Heating System254 CO2 market price*)15 Estimated DH heat price**)14-16

# Effectiveness  Reductions compared to baseline in pct Economics TypeCO2Energy EE-Buildings56 %57 % Renewable Energy60 %-9 % EE-Buildings & Heating System64 %49 % Heating System13 %

# Similar programmes  Reference a mix of Central European and Western European countries  Large variations between countries and programmes  EEA and Norway grants CO2 reduction costs are relatively high (except for RE projects) Economics

# Support strategy  Does the grant share create the right incentives?  Do the investment generate an acceptable Internal Rate of Return ? Economics IRR< 5 %5 – 7.5 %7.5 % < Pct. of projects40 %25 %35 %

# Other sustainability effects  Importance of environmental, economic and social sustainability as judged in project documents – in pct.  Environmental: fossil fuel and pollutant reduction  Economic: employment  Social: improved public buildings Economics EnvironmentEconomicSocial No information7 %6 %7 % Not important1 %87 %79 % Important11 %7 %13 % Fundamental82 %0 %1 %

# Targeting of programme  EEA and Norway Grants are sole external funding source  Other funding schemes have the same target  Promoters have experience with other funding schemes Economics

# Infrastructure versus soft projects  Infrastructure: physical measures  Soft: behavioural change of beneficiaries  Different time profile  Different promoters (public/private versus NGO)  Additionality and supplementarity Economics

# Quality of programme documentation IndicatorInfo in PDs Corrections in survey Additions in survey Total Energy baseline Energy target Energy savings CO2 baseline CO2 target CO2 reductions RE capacity RE production Economics

# Lessons learnt  Focus on EE-buildings and Heating Systems  Focus on public sector  Focus on Central and Eastern European Countries  Make grant share dependent on estimated IRR  Simplify monitoring and disbursement procedures Economics

# Solar PV Poland Economics