1. Key issues for the Grant Scheme on Green Investments / Requirements for an effective and transparent Grants scheme management Lucian FLOREA 30 April 2009 Bucuresti

2. Our reserve of CO 2 might finance a GIS Source: National Inventory Report 2002, Ministry of Environment &National Research Development Institute for Environmental Protection, submitted on 2004 under the CRF –Common reporting format.

3. Grant scheme and the two convergent targets 1. To reduce GHG emissions by supporting technological investments with greatest impact. 2. To support institutional development through: 2.1.Awareness campaigns to promote the gas emission reduction actions ; 2.2.Organizations to embrace the environmental attitude [E.q.: EMS, ISO 14000, energy savings campaigns]

4. Framework for a Green Investment Scheme 1  Establish the Application requirements for the Investment Component [IC];  Establish the application requirements for Institution Development Component [ID];  Establish grant scheme type, among:  Concept paper based Call for proposal;  Open Call for proposal with all requirements submitted

5. Example for Concept paper based GIS An Application should require at least:  Resume of the application stating impact results [ measurement procedure and results]  Pre-feasibility Study for investment / Component 1 [with General estimate ]  General Estimate for Component 2[ 2.1& 2.2]  Estimated overall budget

6. Example of Open Call based GIS An Application should require at least:  Full Application containing The budget, Resume and Impact results [ e.g.: The measurement procedure and The results] all backed up with:  Feasibility Study for Component 1[IC].  General Estimate for Component 2 [ID]

7. Pro and Cons between the two GIS forms -1 Concept paper will last longer for the GIS Management Body as it must be run the Concept Paper Call for proposals ; Then select the best ones Concepts ; Then must launch the Full Proposal Open Call and selected the best applications for contracting within the allotted budget;

8. Pro and Cons between the two GIS forms -2 Concept paper Call might not need the pre- contracting phase which can be useful for non-specialists managing the GIS; GIS with Concept paper can be fully conducted by non specialists but with services subcontracted for :  Evaluation of Concept Paper & Full Proposal  Monitoring the project implementation

9. Timing for GIS Usual time span is 540 days [1,5 years] for any Open Call encompassing:  45 days for Promotion phase;  60 days for the Selection phase;  15-30 days for the Contracting phase  365 days for the Monitoring the Implementation phase  30 days for the Reporting results;

10. Main difference between the two Calls for Proposals Calls based on the Concept note might last with 90 days more, i.e. 630 days, therefore 2 years. The risk in financing failure_projects in Concept paper based Calls is reduced comparing with the risk of the Open Calls for Full applications; The effort of the applicants GIS management is higher but better spread in time.

11. Framework for a Green Investment Scheme 2  Establish eligible actions in each measures supported /financed;  Establish the eligible applicants  Establish the co-financing and financing schedule;  Establish the evaluation, contracting and monitoring key issues

12. Establish the different measures in detail The IC should:  Encourage investments in direct/indirect [?] gas reduction  Encourage the innovative ideas. The ID should:  Trainings + consulting for interanl policy development [e.g.EMS creation;  Awareness campaign

13. Establish the eligible actions per measure [I]; Measure I /The IC  Investment in equipment that reduce GHG;  Support training activities relevant to investment that reduces GHG;  Support start-up / operation cost of investment that reduces GHG;

14. Establish the eligible actions per measure [II]; Measure II/The ID  Training need analysis;  Training on institutional development subjects[ EMS; ISO 14000; ISO 22 000 HS]  Awareness activities that conduct to reduction of GHG, [ex:by energy savings];

15. Establish the eligible applicants Economic agents [producers; distributors]; Public authorities; NGOs. Verify the National Register [for actors]; Decide on the first Call for proposals eligibility of applicants by regionally launching the Guidelines for applicants.

16. Establish the co-financing and financing schedule It is acceptable to require an applicant’s co- financing for 10% [at least]. It is acceptable to use in-king contribution of least 50 % of the co-financing; Pre-financing offered when co-financing is proven but not more then 50% of the grant. It is acceptable to have two installments.

17. Evaluation, contracting and monitoring issues.[I] Indicative Evaluation Key Issues: Administrative issues: Only National Actors. Only those that did not received another State aid for actions within the proposal. No loss making actors. Tehnical evaluation: Higher marking for lower cost of 1 tone of CO2 saved; Marking higher the innovative idea; Create a reserve list of proposal [see pre-contracting]

18. Evaluation, contracting and monitoring issues.[I] Evalaution grid indicative Key issues;  Relevance criteria max.10. Threshold 5.  Efficiency criteria.Max 10. Threshold 5.  Innovation criteria.max 10.  Maturity and quality of the proposal. Max20 Total 50 points. Final selection threshold can be: 25 points.

19. Evaluation, contracting and monitoring issues.[II] Indicative Contracting Key Issues:  Undertake Pre-contracting phase for : an administrative verification and a technical verification for each proposal. Re-check the PIs [Performance Indicators,e.g. Tones/month for 0.1Meur]  Allow for reserve list and pull-out next proposals if failures on pre-contracting’  Contract should be simple and clear focusing on recommendation given by evaluators and the measurement of the results/reduction [independent when possible].

20. Evaluation, contracting and monitoring issues.[III] Monitoring Key Issues  Monitoring actions schedule agreed by parties;  Monitoring actions should be simple focusing on recommendation given by evaluators minutes of pre-contracting and quantitative results of measurement of gas reduction specified in the proposal;  Last payment done after last monitoring visit;

21. Evaluation, contracting and monitoring issues.[III] Lesson learned from other on-going calls are:  Accept money / asset transfer from “failure projects” to “performer_projects” when both contracting parties agree [World Bank] ;  Allow for inter-project exchange or study visit, when both contracting parties agree, but using as much as possible the co-financing.

22. Thank you for attention! Questions please….. Lucian FLOREA