1. 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

2. 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

3. 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

4. CCFI programming principles (1)
Additionality
Legal (ETS, landfill directive, building code,etc)
Financial (EU Structural funds, other instruments)
Broad involvement of social partners 4

5. 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). 5

6. CCFI programming principles (2)
GHG emissions
Energy efficiency
Renewables
Efficient use of fossil 6

7. Sectoral GHG emission in Latvia (2006)7 7

8. Energy intensity (2005)
Source: IEA 8

9. Indicative Greening pipelines and Open Calls
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 9 9

10. CCFI key measure of invesment efficiency
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 10 10 10

11. Emisijas faktors Fuel tCo2/MWh Coal 0,334 Peat (Wd=40%) 0,376 Petrol
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 11 11 11

12. Open calls under implementation
Open calls under implementation
Energy efficiency in municipal buildings (LVL )
Energy efficiency in university buildings (LVL )
Complex measures for GHG reductions in municipal buildings (LVL )
Complex measures for GHG reductions in state and municipality professional education buildings (LVL )
Complex measures for GHG reductions in industrial buildings (LVL )
Technology conversion from fossil to renewable energy sources (LVL )
Development of GHG reduction technologies (LVL 1 757 010)
Renewable energy use in transport sector (LVL 3  ) 12 12 12

13. Open calls to be announced
Low energy housing (LVL 7 261 722)
Use of renewable energy sources for reeducation of greenhouse gas emissions (LVL  876),
Renewable energy use in household sector (microgeneration) (LVL 11 399 481)
Efficient street lighting in municipalities (LVL )
Development of GHG reduction technologies and pilot project demonstration (LVL )
Public awareness raising on climate change issues (LVL 597 384) 13 13 13

14. Thank you for attention! More information www.varam.gov.lv