Identifying Funding Opportunities Cleaner Energy Saving Mediterranean Cities A project implemented by Human Dynamics Consortium This project is funded by the European Union Identifying Funding Opportunities Dr. Thyrsos Hadjicostas CES-MED International Financial Expert 21 February 2017 7th Steering Committee Meeting

Contents Sources of Funding National and international funding Strategy and funding per CES-MED country SEAP Support Mechanisms Current situation in CES-MED countries Proposed support and CoM Committee members Steps for municipalities to secure additional international funding for indicative projects Coordination with Donors and other Projects International and national coordination Next steps Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Sources of Funding National Sources of Funding National budget Other national institutions focusing on municipal energy projects International Sources of Funding Degree of focus on energy savings in municipalities varies per country, depending on national energy strategy Most active donors for municipal energy projects in CES-MED countries are the EU, EIB, UNDP, AFD, KfW, World Bank, bilateral donors and Arab / Islamic bank Twinned European municipalities, public private partnerships, etc. Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Morocco Energy Strategy Sectoral development plans, including 2009 energy strategy 2015-2020 National Strategy for Sustainable Development 2012-2020 Jiha-Tinou territorial decentralisation strategy National Sources of Funding State funds still account for almost 80% of municipality budgets Municipality Equipment Fund (FEC) International Sources of Funding EU, World Bank, AfDB, AFD, GIZ, Arab / Islamic banks Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Algeria Energy Strategy 2015-2019 National Investment Plan, including infrastructure axis 2011-2030 RE / EE Programme Still forbidden for municipalities to engage in international loan agreements National Sources of Funding National Fund for EE, RE & Cogeneration (FNMEERC) International Sources of Funding EU, AFD, GIZ, UNDP, Arab / Islamic banks Facilitated through municipality commercial subsidiary organisations (EPIC) Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Tunisia Energy Strategy Tunisia 2020 national strategic 5-year development plan, including green economy & sustainable development pillar 2016-2030 energy strategy Strong decentralisation shift in progress National Sources of Funding Municipality Alliance for Energy Transition (ACTE) programme / CPSCL Fund International Sources of Funding EU, EIB, UNDP, KfW, AFD, Arab / Islamic banks Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Palestine Energy Strategy 2014-2016 National Development Plan, including infrastructure sector 2020 energy sector strategy (draft) 2017-2022 strategy for local economic development (under preparation) National Sources of Funding Municipal Development and Lending Fund (MDLF) International Sources of Funding EU, AFD, KfW, DANIDA, JICA, World Bank, USAID, bilateral donors, Arab / Islamic banks One of the highest levels of international financial aid per capita in the world Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Israel Energy Strategy Israel 2020 integrated economic, social and environmental masterplan 2010-2020 policy for the integration of RES into the electricity sector 2010-2020 national energy efficiency programme Commercial exploitation of offshore gas resources National Sources of Funding Bank Dexia Israel (BDI) International Sources of Funding EU, EIB, UNIDO Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Lebanon Energy Strategy Lebanese National Development Plan 2013-2017 National Renewable Energy Action Plan 2016-2020 National Energy Efficiency Action Plan 2016-2020 National Sources of Funding Independent Municipal Fund (IMF) International Sources of Funding EU, USAID, AFD, UNDP, bilateral donors Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Jordan Energy Strategy Jordan 2025 National Vision and Strategy Master Strategy for the Energy Sector in Jordan 2007-2020 National Energy Efficiency Action Plan 2015-2017 National Sources of Funding Cities and Villages Development Bank (CVDB) International Sources of Funding EU, GIZ, JICA, UNDP, USAID, WB Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Covenant of Mayors (CoM) Committee for support & coordination Palestine: 5-party (does not meet regularly), including Government (2), Fund, University, utility Eligible CoM Committee actors Morocco: 4, including Government (3), Fund Algeria: 5 from central (4) and regional Government Tunisia: 7, including Government (4), Fund, utility, training center Israel: 10, including Government (2), utility, institutions (2), forums (5) Lebanon: 5, including Government (2), project institutions (2), NGO Jordan: 3, including central and regional Government, research center Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Proposed forms of support (1) Promote the benefits of sustainable energy actions in municipalities Design and coordinate the necessary training of municipalities Promote the practices of stakeholder communication and coordination in municipalities Identify and widely publicise good sustainable energy practices in municipalities Encourage the exchange of sustainable energy experience and skills between municipalities Convince municipalities of the benefits of joining the CoM Assist municipalities in preparing the CO2 emission inventory for their Sustainable Energy Action Plans (SEAP) Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Proposed forms of support (2) Support municipalities in formulating and implementing their SEAP actions, through amassing a library of relevant publications, data and other customised information Provide strategic and technical support to the CoM municipalities which do not have the capacity and resources to respond to their political commitment Inform municipalities on potential sources, types and focus areas of available national and international investment funding for their energy projects Promote the provision of financial assistance to municipalities that have undergone the necessary preparatory actions for developing a SEAP Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Proposed CoM Committee members Central Government Regional Administration Fund University / research institute utility training center engineering association forum / NGO Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Steps for municipalities to secure additional international funding (1) Identify IFIs placing emphasis on financing the action’s type or technology in the country Check the type of support provided by each of the identified IFIs, i.e. TA, grant, loan etc. Select the IFIs providing the required type of support for each action type Research the operations, active programme conditions and future programme plans of each selected IFI Prioritise the selected IFIs in terms of suitability for the specific action plan, level of support provided, total available budget for similar actions, strength of local contacts etc. Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Steps for municipalities to secure additional international funding (2) Develop a promotion plan to the most suitable IFI for each action Communicate the action funding request to the priority IFI Establish contact and regular follow up with the priority IFI Speedily respond to any clarification requests from the contacted IFI Allow time for completion of the IFI’s evaluation cycle Once concluded evaluation (positively or negatively) propose additional alternative actions for subsequent evaluation Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

SEAP Support Mechanisms Indicative municipal energy projects (fiches) in need of additional funding Palestine: street lighting efficiency improvement at Nablus municipality Morocco: energy recovery from biogas at Agadir municipality Algeria: pilot implementation of energy efficiency actions in 2 schools at Batna municipality Tunisia: energy audit of public buildings at Kairouan municipality Israel: 10% CO2 reduction voluntary commitment campaign at Ramla municipality Lebanon: development of SEAP Unit at Beirut municipality Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Coordination International UfM: Union for the Mediterranean (Euro-Mediterranean region) RCReEE: regional (Arab) center for renewable energy and energy efficiency EU MED-ENEC: energy efficiency in the construction sector in the Mediterranean EU MARIE: Mediterranean building rethinking for energy efficiency improvement EU ClimaSouth: low carbon development for climate resilient (South Mediterranean) societies EIB AFD KfW Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Coordination National Palestine: MDLF, Office of EU Representative, Royal Danish Representative Office, AFD, USAID, WB Morocco: AFD, GIZ, EIB, WB Algeria: UNDP Tunisia: UNDP, EIB, KfW Israel: EIB Lebanon: EU, AFD, Kuwait Fund Jordan: EU, AFD, GIZ Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Coordination Next steps Palestine: promote municipal energy projects at forthcoming donors conference, follow-up USAID Morocco: promote municipal energy projects to WB, AfDB, AFD, GIZ, EIB, AfDB Algeria: promote municipal energy projects to GIZ, KFW, AFD, WB, IFC, UNDP, AfDB Tunisia: promote municipal energy projects to AFD, KfW, WB, UNDP, EIB, Swiss Cooperation Israel: promote municipal energy projects to EC, EIB, UNIDO, Heinrich Boell Foundation Lebanon: participation in donors conference on 7th March 2017 Jordan: mission in week 5th – 9th March 2017 Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Conclusion Municipality situation Lack of financial resources and incentives, limited experience and human resources; need technical guidance and capacity to develop bankable projects and apply for external loans and grants Planning For municipalities which place strong priority in their energy sectors, the inclusion of SEAP preparation in their strategic development plans is a very important first step for funding The consultancy support cost for preparing a SEAP is only a small portion of the development plan Funding It is important for municipalities to focus on their priority investments to develop in more detail, rather than embark on developing a large number of less well prepared investment proposals Cleaner Energy Saving Mediterranean Cities www.ces-med.eu

Best Approach to Obtaining Funds? Discussion Best Approach to Obtaining Funds?  Cleaner Energy Saving Mediterranean Cities www.ces-med.eu