1 NAMAs in Central Asia: An Opportunity for Low Carbon Development Bishkek, February 2013 Fourth EU-Central Asia High Level Conference: Platform for Environment and Water Cooperation

Current carbon intensity of Central Asians economies 2

GHG emission reduction & growth is possible Model of PIK, ECF, Oxford etc. for Europe shows  30% GHG emission reduction by 2020  Increased growth rate by up to 0.6%/a  Create up to 6 million additional jobs Requirements: Increase of investment (EU 18% to 22% of GDP) Intervention, mobilisation, expectations, learning effects, timeframe, innovation and R&D are crucial. Cost reductions by new technologies Endogenous technology change - Carbon taxes to control emissions - Research subsidies or profit taxes to influence the direction of research Exogenous technology change - technology transfer (EE, RES etc.) - new concepts for waste management, urban planning, mobility Source: bruegelpolicybrief 2009/07

4 NAMA = Set of measures and activities undertaken by developing countries in order to reduce GHG emissions below business as usual  Introduction of the NAMA concept – Bali Action Plan (2007) – further developed in Cancun, Durban and Doha  All types of activities which in line with national development plans and result in GHG emissions reductions  Flexibility – activities which take into consideration the special conditions of countries (best applicable to countries) Challenge: development of respective policies, agreed long term approaches and rules  Financing provided by developed countries – supported NAMAs  International approval of activities MRV for internationally supported activities Registration For developing countries - NAMAs as an instrument to spur Low Carbon Development by exogenous technology change

5  For sectors where CDM was not successful like: Buildings Transport RES Waste ………  Allow for strategic, long-term transformational measures implementation of sectoral programs and policies  Combination with other financing mechanisms (impact on investment policy)  In contrast to CDM not linked with compliance in developed countries  Possibility to support indirect and preparatory measures – capacity building for NAMA development Advantages of NAMAs

Success stories of NAMAs NAMAs  Introduction of energy efficiency standards in public buildings in Mexico  Integrated solid municipal waste program in Bangladesh  Energy efficiency and labelling in Chile  Colombia – energy efficient cargo fleet  Chile – development of electro mobility  Sustainable peat land management in Indonesia  Transport demand management in Jakarta  …….. Overviews: 6

The NAMAs in Central Asia Uzbekistan Building sector – about 32% of energy emissions oIntegrated and gradual energy efficient refurbishment concept for standardised multi-storey residential buildings of soviet type and new single family houses in villages Kyrgyzstan Local Heating oModernisation of small boiler houses (1-10 MW) for local heat supply Tajikistan Afforestation oForest management and economy Turkmenistan Renewable energies in rural areas oSolar thermal and off-grid PV installations Important segments of the economy 7

NAMA energy efficient modernisation of small boiler houses  Mitigation for Kyrgyzstan is the question of avoiding future increases of carbon intensity while enhancing economic and social development Importance of the more than 1000 small boiler houses: combust 12% of all coal used in the country supply about 60% of all schools, kindergartens and hospitals and certain residential buildings in different cities and regions NAMA support goal of EE improvement and create demand for modernisation of boiler houses by providing financial incentives for replacement of existing outdated boilers by modern, highly efficient boilers including more efficient circulation pumps, adjustment of the new heat capacities to real demand and, in some cases, installation of the new boiler houses closer to the costumers, adjustment of heat generation and distribution capacities to real demand, improving management and accounting by installation of heat metering devices at boiler houses and replacement of existing heat pipelines by modern, pre-insulated pipelines where necessary. 8

Requirements NAMA Kyrgyzstan  Design – Package solution (due to concrete situation of institutional reform) First packages – boiler houses of: Osh, Bishkek, Chuy and Yssysk Kul administration  Application for participation in NAMA financing scheme stating: Readiness to support the project development regarding the small boiler houses, which would be jointly selected out of a respective registry, and to take part in the project implementation, Readiness to take over the responsibility to organise maintenance service for newly-installed equipment and capacity building of the personnel, Readiness to partially finance the project of modernisation of small boiler houses with administrative and human resources (the precise content will be defined during the negotiations with external investors). Providing list of boilers and respective data according scheme  Designation of implementing agency by government 9

Expected benefits from NAMA implementation  38% reduction of coal consumption and resp. reduced fuel costs  38% reduction of GHG emissions from coal fired boilers Not all measures will translate into GHG emissions reductions but for example lead to stabilized and improved heat comfort by reduction of heat losses  Avoiding severe social tensions which might arise from weakening heat supply  Improved service and maintenance of new technologies  Upgrade of qualification for service personal  Support of institutional reform in local heat sector Backing by inter-ministerial body (Coordinating Commission for Climate Change Issues) and government is crucial The NAMA development is part of a bigger project - “Integrated Approach for the Development of Climate-Friendly Economies in Central Asia” 10

11 Thank you for your attention ! Dr. Petra Opitz DIW econ GmbH Mohrenstraße Berlin Tel Project partners are: