A project is being funded from Austrian Government, UNDP and Government of Albania to enable Albania to get access of the Carbon Finance. Among other aspects the project is aiming to strengthening the Designated National Authority’s capacity to deal with the Clean Development Mechanism (CDM) type of projects and as well to building in-country capacities for identification, implementation of and resource mobilization for the greenhouse gases reduction projects eligible for the CDM and other carbon market mechanisms. Albania is a non-Annex I party to UNFCCC and Kyoto Protocol and is eligible to host greenhouse gas (GHG) mitigation projects under the Clean Development Mechanism (CDM) of the Protocol. The Designated National Authority (DNA) has been established under the authority of the Ministry of Environment, Forestry and Water Administration and recently, Albania has taken decisive steps in establishing an institutional and legal framework for the promotion and approval of CDM projects activities in the country that can serve as a foundation for the participation in alternative carbon markets and offset schemes. To this aim, and within the frame of the Carbon Financing project, a draft National Strategy on Carbon Finance has been formulated with the main objective to competitively maximize the effective development of the potentials of Albania in the CDM and in carbon finance, while minimizing transaction costs and contributing to the sustainable development of the country. The current draft has gone to the stakeholders for their first round of comments. In the changed environment of having in place new staff for the DNA Committee and Technical Secretariat with defined duties and responsibilities; newly adopted legal framework aiming to regulate the review and approval of CDM projects; as well as having in mind that Albania is an EU potential candidate country, which will influence the implementation of CDM; and additionally the outcomes of the Climate Change Talks’ and anticipated post 2012 regime, there is an obvious need for: - Investigating on the Albanian opportunities to further develop the CDM projects under the Programmatic Approach as well as consideration of the effects of the post-2012 carbon mechanisms developments, including. possible move from CDM projects to a sectoral carbon market crediting mechanism and crediting of National Appropriate Mitigation Actions (NAMAs);
- Assessing the Albanian needs as an EU potential candidate country regarding the links of CDM to European Union Emissions Trading Scheme (EU ETS) and possible conversion to Joint Implementation (JI) mechanism;
- Development and conduction of a training programme for the Designated National Authority (DNA) staff to undertake the Clean Development Mechanism (CDM) projects review and get prepared in the anticipated new circumstances related to the post 2012 carbon markets;
- Support and advise the Governmental representatives to actively participate in the Climate Change Talks from the perspective of emissions trading mechanisms;
- Development and conduction of a training programme for the CDM market participants to familiarize them with the legal and contractual arrangements for the sales of CERs, Emission Reduction Purchase Agreement (ERPA) assessment, negotiations and pricing, CER delivery commitments and timeframes, expected improvement of CDM and designing of the sectoral crediting mechanism as an expected outcome of the Climate Change Talks, etc.
Objective of the assignment:
The objective of this assignment is to: i) develop capacity of the new DNA staff in the area of carbon finance; ii) increase capacity of the Ministry of Environment on the international climate change negotiations; and iii) increase knowledge of CDM project proponents in terms of existing and emerging carbon market mechanisms. |
The assignment includes accomplishment of the following tasks: Study existing background materials and available training modules developed under the framework of the “Building capacities to access carbon financing in Albania” project, this includes but is not limited to: - Get familiar with the project document on “Building capacity to access carbon finance in Albania”; including objectives, outcomes, outputs and activities;
- Get familiar with the draft National Strategy on Carbon Finance;
- Get familiar with the DNA institutional set-up and the national CDM projects’ review and approval procedures in Albania;
Based on the findings of the draft National Strategy on Carbon Finance, prepare a study paper on the existing and new CDM opportunities in Albania, which will focus on the following: - Albanian opportunities to develop CDM projects under the Programmatic Approach;
- Post-2012 carbon mechanisms developments, including possible move from CDM projects to a sectoral carbon market crediting mechanism and crediting of NAMAs;
- Albanian needs as a potential EU candidate country regarding the links of the CDM to the EU ETS and possible conversion to JI mechanism;
Design and deliver a training session for the DNA staff (DNA Committee and Technical Secretariat), national experts and governmental representatives in charge with climate change to: undertake the Clean Development Mechanism (CDM) projects review and approval; undertake outreach activities to promote CDM and other carbon mechanism in Albania; and increase their knowledge on forthcoming changes on emissions trading mechanisms after 2012. This includes the following: prepare training modules and the training agenda, prepare the power point presentations, suggest contents of participants’ folder, and write exercises for the training sessions. The training will be focused on the following items: - CDM and other related Kyoto Mechanisms;
- Updated information on new developments regarding the post-2012 regime;
- Step-by-step description and time-frame for each stage of national CDM projects design, review, approval, and implementation, with clearly assigned responsibilities and functions of all parties involved in this process, including the DNA;
- CDM Sustainable Development Evaluation Procedures, including the list of sustainable development criteria to be addressed during the CDM project evaluation, indicators and evaluation methodology;
- International experience and national procedures for the CDM projects review and approval;
- Undertaking the outreach activities for promotion of CDM projects;
- International Climate Change negotiations, etc.
Design and deliver one training session for the representatives of the Ministry of Environment and other line ministries to increase their capacities in regard to the international climate change negotiations, focusing on emissions trading; Design and deliver training modules for the CDM market participants/CDM project owners to strengthen their capacities for identification, implementation of and resource mobilization for the greenhouse gases reduction projects eligible for the CDM (stand alone and programmatic approach) and other existing and new carbon market mechanisms. The training should mainly focus on the following items: - CDM and other related Kyoto Mechanisms;
- Updated information on new developments regarding the post-Kyoto regime;
- Legal and institutional frame for CDM projects review and approval in Albania;
- Legal and contractual arrangements for the sales of CERs, Emission Reduction Purchase Agreement (ERPA) assessment, negotiation and pricing, CER delivery commitments and timeframes, revenue flows;
- Economic and financial appraisal of the CDM projects/programme to help the CDM owners understand and assess the impact of carbon finance on the economic viability of their investment;
- Expected improved CDM and elements of the sectoral crediting mechanism as an expected outcome of the Climate Change talks etc.
Prepare and submit a final report highlighting the expert’s work, outputs, achievements, lessons learnt and the proceeding of the training sessions, including any recommendations for future similar interventions.
Compulsory preconditions - The training materials to be developed (hard copies and electronic versions) will be tailored to specific needs related to the target groups (DNA representatives and DNA market participants) and they should be understandable, relevant and comprehensive.
- The DNA Committee and DNA Secretariat’s representatives have been very recently nominated and as such their current level of knowledge related to the CDM projects is at the basics one.
- The DNA market participants and CDM projects’ owners need to get familiar with the current development with regards to new DNA structure and recently set rules and procedures for CDM projects review and approval. Besides they need to increase their capacities to undertake CDM projects.
Training venue - The training sessions will be delivered in Tirana, Albania. The number of participants will be approximately around 15 per each session and the duration of each and every session won’t be longer then one day.
Existing information which can help to accomplish the assignment - Three previous training sessions have been already delivered within the time course of the Carbon Financing Project, respectively to the:
- Representatives of the Ministry of Environment, Forestry and Water Administration and other national stakeholders on the DNA’s role and responsibility with regards to CDM projects;
- To the CDM project owners and other interested in the power sector regarding the Baseline Study on CDM projects-power sector;
- National stakeholders on the legal status of CERs.
- The expenses for the training venue, for the participants, for the multiplication of the training materials and for the translation (if needed) will be covered by the funds of the Project.
- The International Consultant will work in parallel with a national one to be hired (with notable knowledge on the national backgrounds related to the area of carbon financing in Albania), who will mainly provide the necessary information, provide the list of the participants, organize the training session, consult study papers and the prepared training modules, provide for their Albanian version, and assist with the delivery of the training sessions.
List of deliverables and time-line - Detailed inception work plan and working methodology (5 days after contract signature);
- Study paper on the Albania’s status and future needs in regard to emissions trading mechanisms (3 weeks after contract signature);
- Training modules, sample participants folders, and draft agendas for training of DNA’s staff and other national experts (4 weeks after the contract signature);
- Training modules; sample participants folders, and draft agendas for training of the CDM market participants/CDM projects owners (5 weeks after the contract signature);
- Delivery of training sessions (6 weeks after the contract signature);
- A final report highlighting the results of the training sessions (7 weeks after the contract signature).
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