Environmental Investments in Latvia and Best Practices 08 December 2015 Zanda Krūkle Senior expert of the Programme management division

Funding for Environmental Investments (I)  As a member state of the European Union (EU), Latvia has access to funds for developing & upgrading of environmental infrastructure in line with EU environmental quality standards  EU funds – primarily oriented towards the implementation of EU environmental acquis (requirements of EU Directives etc.)  Since 1990ies environmental investment projects have been implemented in Latvia in several sectors: Water services – billion EUR Waste sector – 170,3 million EUR Nature protection – 16.6 million EUR Rehabilitation of polluted sites – 41 million EUR Flood prevention – 15 million EUR Environmental monitoring – 10 million EUR

Funding for Environmental Investments (II)  Latvia has successfully used several sources of funding for implementing environmental investment projects: European Union (EU) Structural Funds and Cohesion Fund - pre- acession funds (until 2004), programming periods , , ; EEA & Norway Grants 2004 – 2009 and 2009 – 2014 – environmental protection, sustainable development, capacity building & cooperation, policy development. Latvian – Swiss Cooperation Programme – rehabilitation of historically polluted territory in Sarkandaugava area of Riga

Funding for Environmental Investments (III) (continued from the previous slide) European Territorial Cooperation Programmes – bilateral, trilateral and regional cooperation programmes addressing common regional issues such as sustainable development, marine protection, territorial/spatial planning etc. Climate Change Financing Instrument – national revenue from the international GHG emissions’ trade (Kyoto Protocol) for improving energy efficiency of buildings in public & business sectors, promoting technologies using renewable energy etc. LIFE+ programme – small-scale nature protection activities

EU Structural funds & Cohesion Fund (I)  Pre-accession funds (PHARE/Transition Facility, ISPA): since late 1990ies until 2004 for specific environmental issues, capacity- building, supplies, information activities  Programming period 2004 – 2006: 1 st phase of major rehabilitation & construction works of environmental infrastructure development works across Latvia - mainly water & waste infrastructure in the biggest residential areas  Programming period 2007 – 2013: Largest investment portfolio – 766 million EUR for the environment (additional funds for regional development & ICT); Water sector - rehabilitation & extension of WS & WW networks, water treatment plants (iron removal plants) & WW treatment plants Waste – new landfills, recultivation of illegal dumpsites, waste sorting Nature protection, flood protection, environmental monitoring etc. EU co-financed activities to be completed by 31 December 2015

Programming period 2007 – 2013  Activities: 13 activities  Projects: 681 projects signed  Total contracted amount: EUR 726 million  Untapped funding: EUR 43 million  Technical progress: 611 projects are finished  Financial progress in environmental sector: EUR 678 million;  EUR 43 million still be to paid until EU Structural funds & Cohesion Fund (II)

Financial allocation by priority axis EU Structural funds & Cohesion Fund (III)

Programming period 2014 – 2020  EU funds for environment : 234 million EUR Main environmental issues to be addressed in :  Wastewater network coverage – service accessibility  Low intensity of waste recycling, regeneration  Large proportion of biodegradable waste going to landfills  Climate change – floods & coastal erosion prevention  Environmental monitoring & control  Biodiversity –eco-friendly tourism infrastructure, restoration of habitats EU Structural funds & Cohesion Fund (IV)

EU funds : Environment, Regional Development, ICT 9 Specific objective EU co- financing, EUR Aid intensity Project call Main activities Flood risks %Restricted Reconstruction, construction of hydro technical structures to prevent flood risks and erosion Waste %Open Development of sorted waste collection, waste preparation for reuse, waste recycling and regeneration Wastewater & Water % maxRestricted Waste water systems and elements, WWTP (tertiary treatment) Biodiversity % Open / Restricted Infrastructure in Natura 2000 sites Environmental monitoring %Restricted Monitoring and control tools, society information campaigns, info centrs 256 M of 689 M

Wastewater Investment priority No. 1: Extension & Rehabilitation of WW networks – PE>2000 Other investment needs (depending on availability of funding): 1.Tertiary WW treatment – PE> Household connections to WW networks - PE>2 000 (socially vulnerable groups); good intention/ practically hard implementation 3.WWTPs near water bodies at risk (if the “risk” status is due to WW discharges) 4.Drinking water system - only in agglomerations with inferior water quality (Directive 98/83/EC; minor investments). Results to be achieved: 97% WW network coverage in each group of agglomerations (average ratio) 92% actual WW network connections

Waste Preparation of waste for reuse, recycling or recovery (mainly household & municipal waste) 2.Increasing waste recycling or recovery capacity (mainly through development of waste recycling or recovery infrastructure) (primar focus on biodegradable waste) Results to be achieved: Houshold waste going to recycling & recovery in 2022 – 59% (basline 2010 – 24%) Additional waste recycling capacity (in 2023) – t/annually

Other environmental priorities (II)  Environmental monitoring & control systems + habitat mapping (22.2 MEUR)  Biodiversity – development of eco-friendly tourism infrastructure (watchtowers, footpathes etc.), restoration of habitats (15 MEUR)

Other environmental priorities (I)  Climate change – floods & coastal erosion prevention measures in densly populatedd areas  EU funding MEUR  Example – coastal erosion near Liepāja WWTP + Flood risk management under MoA NEW!

Where we are now with ? Steps to be taken before projects can be approved:  Ex ante criteria – national policy documents  Initial evaluations for each Specific Objective  Project selection criteria & methodology  Cabinet Regulations on the implementation of each Specific Objective  Project selection (open/restricted (short-list)) As a result, for most Specific Objectives project implementation will begin in 2016.

Where we are now with ? (II) Steps to be taken before projects can be approved:  Ex ante criteria – national policy documents  Initial evaluations for each Specific Objective  Project selection criteria & methodology  Cabinet Regulations on the implementation of each Specific Objective  Project selection (open/restricted (short-list)) As a result, for most Specific Objectives project implementation will begin in 2016.

Factors impacting effective implementation process 16 Strengthened involvement of social partners Reduction of amount of planning and legislative documents One OP Sistemic – step by step approach to investments Centralized process – one agency, unified principles OP Assessement + investment mapping Project evaluation criterions Legislation

Institutional framework of the EU funds management in Latvia

Planned institutional framework of the EU funds management in Latvia

Factors impacting effective implementation process New e-system – project proposal applications + project data Supplements to OP – only informative OP amendments– only in 2018 Less HP – less reports Investment mapping Repayable assistance mechanisms Guidelines & seminars Funding + indicators  Decree of the Cabinet of ministers or separate documentation

Horizontal Principles 1.Sustainable development* 2.Equality and non-discrimination 3.Equality between men and women 1.Sustainable development* 2.Territory balanced development* 3.Competitiveness of Riga city* 4.Equal opportunities 5.Macroeconomic stability * Responsibility of the Ministry of Environmental Protection and Regional Development

Factors impacting effective implementation process New e-system – project proposal applications + project data Supplements to OP – only informative OP changes – only in 2018 Less HP – less reports Investment mapping Repayable assistance mechanisms Guidelines & seminars & Info sheets Funding + indicators  Decree of the Cabinet of ministers or separate documentation Project evaluation criterions: impact on indicators; EU funding not more than calculated for one unit

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Factors impacting effective implementation process Green procurement (HP) Involvement of the responsible authority (ministry) in the on-the-site checks and project proposal amendments New methodology in water sector Pre - evaluation criterions

Reduction of administrative burden?

Administrative burden and extended time frame due to implementation model Combining and merging - “reduction of administrative burden” Social partners:  inconsequence,  lack of understanding of nature values and “sustainability concept”,  lack of understanding of “new concepts” due to reduced total funding;  rejecting agreements as a tool to have one’s will, Weak overall process management, incl., prevalence of social partner’s views EU presidency – insufficient human recourses 26 Factors impacting effective implementation process – lessons learnt

Thank you!