Climate change financial instrument for energy efficiency and renewable energy projects in Latvia Valdis Bisters Director Climate Policy and Technology Department Ministry of Environmental Protection and Regional Development

Climate change policy Climate change policy is on political agenda now and put forward challenge for: Scientists (to understand the problem and seek for solutions) Politicians (formulate of long, clear and binding post 2012 regime) Business (invest into low carbon technologies, mitigate fossil risks) Society (accept and create demand for services and change life styles) Climate change is not only environment but also economic prerogative

Climate change financial instrument Green inevestment scheme under Kyoto protocol article 17 – in Latvia Climate change financial instrument (CCFI) Established by law, implemented as state budgetary programme CCFI implementation launched CCFI guiding principles – transparency, accountability and efficiency Programmatic with scaling-up of technology deployment

CCFI programming principles (1) Additionality Legal (ETS, landfill directive, building code,etc) Financial (EU Structural funds, other instruments) Broad involvement of social partners 4

Eligible costs (additional environmental costs) I = (IRES - Ifos ) x P IRES – RES technology investment costs (Ls/kWth or Ls/kWel) according to different scales Ifos  – fossil energy production investment costs (Ls/kWth or Ls/kWel) according to the scale P – intalled capacity of RES technology (kW). 5

CCFI programming principles (2) GHG emissions Energy efficiency Renewables Efficient use of fossil 6

Sectoral GHG emission in Latvia (2006) 7 7

Energy intensity (2005) Source: IEA 8

Indicative Greening pipelines and Open Calls 2018.09.12. Indicative Greening pipelines and Open Calls Energy supply-side management Promotion of biomass use including CHP plants Biogas recovery and use, including transport Solar heat, geothermal, small hydro, wind, etc. Energy demand-side management Improved thermal energy efficiency Improved use of electricity Technological processes Integrated demand-side and supply-side projects 9 9

CCFI key measure of invesment efficiency 2018.09.12. CCFI key measure of invesment efficiency kgCO2 y / Ls CO2 emission factor – average 264 g/KWhth or 397g/KWhe replacing fossil sources or electricity in the grid Ls – CCFI funding requested 10 10 10

Emisijas faktors Fuel tCo2/MWh Coal 0,334 Peat (Wd=40%) 0,376 Petrol 2018.09.12. Emisijas faktors Fuel tCo2/MWh Coal 0,334 Peat (Wd=40%) 0,376 Petrol 0,249 Diesel 0,268 Heavy oils 0,278 Liquid gas 0,226 Other mineral oils 0,263 Natural gas 0,202 LVMĢC data 11 11 11

Open calls under implementation 2018.09.12. Open calls under implementation Energy efficiency in municipal buildings (LVL 26 193 405) Energy efficiency in university buildings (LVL 7 028 040) Complex measures for GHG reductions in municipal buildings (LVL 8 521 500) Complex measures for GHG reductions in state and municipality professional education buildings (LVL 10 225 798) Complex measures for GHG reductions in industrial buildings (LVL 9 839 256) Technology conversion from fossil to renewable energy sources (LVL 8 082 346) Development of GHG reduction technologies (LVL 1 757 010) Renewable energy use in transport sector (LVL 3 522 621) 12 12 12

Open calls to be announced 2018.09.12. Low energy housing (LVL 7 261 722) Use of renewable energy sources for reeducation of greenhouse gas emissions (LVL 27 716 876), Renewable energy use in household sector (microgeneration) (LVL 11 399 481) Efficient street lighting in municipalities (LVL 2 800 000 ) Development of GHG reduction technologies and pilot project demonstration (LVL 2 793 646) Public awareness raising on climate change issues (LVL 597 384) 13 13 13

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