1. Energy Efficiency Improvements in the Context of Energy Trade and Regional Integration in the Caucasus and Central Asia Oleg Dzioubinski Energy Efficiency 21 Programme Manager UNECE Sustainable Energy Division International Conference International Trade Law in the Region of the Caucasus and Central Asia: Between Regional Integration and Globalization Baku, 30-31 May2013

2. United Nations Economic Commission for Europe (UNECE) - Established in 1947 - One of five UN Regional Commissions - 56 member States - Programmes include: - Environment -Transport -Statistics -Trade -Forestry -Housing and Land Management -Economic Cooperation and Integration -Sustainable Energy

3. Key Energy Issues Energy Security Sustainable Energy Strategies Energy Efficiency and Renewable Energy Liberalisation of Energy Markets Energy Pricing Policies Norms, Standards & Classification Systems Cleaner Electricity Production from Fossil Fuels Electric Power, Coal and Natural Gas Infrastructure

4. 4 Committee on Sustainable Energy Energy Security Dialogue Working Party on Gas & Gas Centre Energy Efficiency 21 Programme Group of Experts on Cleaner Electricity Production Group of Experts on Reserves and Resources Classification Group of Experts on Coal Mine Methane Regional Advisory Services

5. 5 Energy Efficiency in UNECE Region Energy efficiency represents win-win solution to: Mitigate climate change Enhance energy security in both importing and producing countries Guarantee sustainable models of growth for future generations UNECE Region has a widely differentiated situation: both world’s best and worst performers are in the region Differences due to economic transition, lack of investments, unavailability of best technology, lack of awareness, pricing and other policy barriers Integration may help overcome some of the barriers Various UNECE projects are addressing all of these issues since early 1990s

6. 6 Energy and Carbon Intensity in UNECE countries and world average

7. Energy Efficiency 21 Programme Launched in 1991 – eighth 3-year phase (2012-2015) Enhance East-West Trade and Cooperation Environment – UNECE Conventions UNFCCC Kyoto Protocol Improve Capacities and Networking Energy Efficiency Policy Reforms Financing Energy Efficiency Investments

8. 8 EE21 Programme Plan 2012-2015 General Objective To enhance regional cooperation on energy efficiency market formation and investment project development to reduce greenhouse gas emissions in economies in transition

9. 9 Selected Projects of EE21 Programme Increasing energy efficiency for secure energy supplies (completed) Enhancing Synergies in the CIS National Programmes on Energy Efficiency and Energy Saving for Greater Energy Security Analysis of Advanced Technologies in Energy Efficiency and Renewable Energy in the Framework of the Global Energy Efficiency 21 Project and Preparation of Recommendations on its Application with Special Emphasis on Central Asian Region (subproject of the GEE21) Financing Energy Efficiency and Renewable Energy Investments for Climate Change Mitigation (FEEI) Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (subproject of the GEE21)

10. 10 Cooperation between CIS member States in Energy Efficiency Agreement on cooperation between CIS member States in the area of EE and ES (2002, CIS Executive Committee) Main directions and principles of interaction between CIS member States in the area of EE and ES (2005, CIS Economic Council) Strategy on interaction and cooperation between CIS member States in the area of electric power until 2020 (2005, Electric Power Council)

11. 11 Cooperation between CIS member States in Energy Efficiency Harmonization of legislation and norms is anticipated Establishment of a common system of norms and technical specifications is anticipated Analytical research, information exchange

12. 12 Parallel operation of power systems of CIS countries Unified Power System of Central Asia Power systems of 10 CIS countries operate in parallel within CIS power pool Power systems of Lithuania, Latvia, Estonia and Mongolia operate in parallel to the CIS power pool Electricity transmission and power interchanges with power systems of Armenia, Norway, Finland, Poland, Slovakia, Hungary, Turkey, Iran, China, and Afghanistan.

13. 13 Parallel operation of power systems of CIS countries Agreement on parallel operation of the power systems of the CIS countries (1998) “…the parties will take steps to form and develop an open and competitive market for electric power and for capacity based on the electric power systems of the countries that are parties to the Agreement” (article 13) Concept paper for frequency and power flow control in the power systems of the CIS and the Baltic States Rules for planning interchange schedules Rules and recommendations for frequency and power flow control

14. Recommendations for developing cooperation to provide available capacity of transmission systems for transiting electric power generated by member-states to create favorable conditions for rational use of hydropower resources and electric power to render mutual assistance in mitigating and liquidating the consequences of natural disasters and accidents in the power sector to harmonize and liberalize customs regulations regarding electric power trade and transit to carry out comprehensive mutual exchange of information to develop and upgrade the electric networks to develop rules for cross border trade of electric power (capacity)

15. Global Energy Efficiency 21 (GEE21) Project Launched in 2008 – support from Russian Federation First project – Global Energy Efficiency 21: Cooperation between the United Nations Regional Commissions on Energy Efficiency for Climate Change Mitigation – successfully completed in 2011 Publication Financing Global Climate Change Mitigation Global Strategy for Energy Efficiency Market Formation to Mitigate Climate Change Two on-going projects: A. Analysis of Advanced Technologies in Energy Efficiency and Renewable Energy in the Framework of Global Energy Efficiency 21 Project and Preparations of Recommendations on its Application with Special Emphasis on Central Asian Region (supported by Russian Federation) B. Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (funding from UN Development Account)

16. GEE21 Project Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (2012-2014) Implemented by five UN Regional Commissions (UNECE – lead agency) Objective Capacity building for development of EE investment projects. It will assist UN RCs to strengthen capacities of their member states to attract investments in EE projects in the context of climate change mitigation and sustainable development. Expected accomplishments a)Improved capacity of national project developers, energy experts and middle-level managers in developing countries and countries with economies in transition to develop energy efficiency investment projects in private and public sectors; b)Improved regulatory and institutional framework for promotion of new financing mechanisms for energy efficiency projects; c)Increased financing for investments in energy efficiency projects, including through innovative financing mechanisms.

17. GEE21 – UN Development Account Project Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development (2012-2014) Main activities Five regional trainings in project development, finance and business planning Development of an investment project pipeline (inventory of energy efficiency project proposals) Five regional workshops to analyze investment project pipeline Fifteen case studies on the experience of policy reforms Five policy seminars focusing on policy reforms to promote financing of energy efficiency investments End-of-the-project global workshop to bring together officials from the regions along with major domestic and foreign investors to encourage greater investment flows into the EE projects

18. National Case Studies of Policy Reforms to Promote Energy Efficiency Investments Experience in practical implementation of policy reforms Thorough analysis of good practices and bottlenecks in the field of EE project financing and implementation Examples of direct social, environmental and financial benefits coming from a specific project or series of projects, which were a result of specific policy reforms Potential for promoting successful policies more widely on a national basis Recommendations for adoption of a similar approach in neighbouring countries

19. Third International Forum: Energy for Sustainable Development

20. Fourth International Forum: Energy for Sustainable Development 17-19 September 2013, Tbilisi, Georgia Co-organizers: Government of Georgia, UNECE, ESCAP, and UNDP High-Level Round Table Financing energy efficiency and cleaner energy Energy efficiency in buildings and in housing sector

21. Fourth International Forum - Workshops Parallel Workshops Workshop 1: Policies and Legislation to Promote Energy Efficiency and Clean Energy Technologies in the Caucasus region Workshop 2: Policy Reforms to Promote Financing Energy Efficiency Investments Workshop 3: Energy Efficiency in Buildings and Housing Sector Workshop 4: Sustainable Energy Challenges and Opportunities in Transition Countries

22. Thank you for your attention! Oleg Dzioubinski EE21 Programme Manager Economic Affairs Officer UNECE Sustainable Energy Division +41 22 917 2360 oleg.dzioubinski@unece.org http://www.unece.org/energyefficiency.html