Establishing NAMAs as robust instrument for pre and post 2020 climate actions June 2015 Bonn, Germany

NAMA DESCRIPTION NATIONAL POLICY CONTEXT FINANCIAL ASPECTS Vision, Goals and Objectives Intended outputs/outcomes Institutional arrangement and time frames National development strategy/plans National policy framework Financial flow into low-carbon investments A full cost of implementation Financial investment plan Financial risks and barrier analysis

NAMA VISION To support a coordinated approach to the development of low-carbon building sector which includes planning and refurbishment within the city with active stakeholder participation focusing on energy efficiency and energy savings related to building standards meeting and GHG mitigation.

Contribution in the Covenant of Mayors and LEDS implementation processes The development and transformation of the national market Improve the Energy Efficiency Improve finance accessibility for low carbon building construction Develop options for building-integrated and small scale renewables NAMA GOAL NAMA OBJECTIVES To develop low emission public-building sector through the piloting of new market mechanism such as ESCO, with upscaling incentive to the residential sector.

The CoM commitments are met and LEDS action plan is under implementation ESCO market model has launched 1.1 *10 6 m 2 has been renovated The finance accessibility for low carbon building construction has improved The preparatory work for upscaling has been conducted NAMA OUTCOME NAMA OUTPUTS 25 per cent emissions reduction from public-building sector through the refurbishment of state-owned buildings are achieved during the first phase.

CoM NAMA on Low-Carbon Building LEDS Coordination between LEDS building sector committee and NAMA developers Implementation of BAU deviation scenario Support in SEAP implementation Municipal buildings refurbishment Enhancement of local level capacity

Retraining constructions of the building and its orientation as well as equipment and devices for heating, air conditioning, lighting, ventilation and thermal insulation shall be maximally energy-efficient. Energy-efficiency standards for buildings are determined by the decree of the Government of Georgia on Energy-efficiency of Buildings. Laws regulating the energy-efficiency issues shall take into consideration European and international best practice. Directive 2010/31/EU on the energy performance of buildings Directive 2006/32/EC on energy end-use efficiency and energy services Directive 2010/30/EU on the indication by labelling and standard product information Georgia’s building sector NAMA aims to support this process and to break down the existing barriers towards achieving low carbon buildings. Thereby linking directly to national policy priorities. EU Association Agreement June 2014 June Accession to the Energy Community Treaty A timeline to the Association Council National Legal Arrangement

CoM Ministry of EnvironmentMinistry of EconomyMinistry of EnergyMinistry of Finance City Hall 1 Public buildings ESCO City Hall 2 City Hall 3 Residential buildings Legislation on EE in buildings EU AA on EE in buildings Constructions market labeling EBRD Project Implementer Provision of funds from central budget National loans acceptor NEEAP developer The CoM coordinator MRV system coordinator The CoM coordinator lack of building standards for low carbon refurbishment Lack of legal status for cooperation in multi-occupancy buildings Access to finance for municipalities Additional cost of low carbon refurbishment

FINANCIAL ASPECTS OF NAMA The option of “Community ESCOs” which do not aim for profits, but reinvest in local economy or energy systems could be a promising option for Georgia as well; currently found in UK and Hungary, as well as on a city level (e. g. Berlin) The option of “Community ESCOs” which do not aim for profits, but reinvest in local economy or energy systems could be a promising option for Georgia as well; currently found in UK and Hungary, as well as on a city level (e. g. Berlin) These type of ESCOs are more suitable to support the achievement of sustainable development as well as climate goals. These type of ESCOs are more suitable to support the achievement of sustainable development as well as climate goals. Within the EU ESCO market also Third-party financing (TPF) is common, where a finance institution provides project financing instead of the customer or the ESCO doing this Within the EU ESCO market also Third-party financing (TPF) is common, where a finance institution provides project financing instead of the customer or the ESCO doing this This is especially interesting for Georgia, as in the beginning phase external/international funding support would be needed to kick start the market This is especially interesting for Georgia, as in the beginning phase external/international funding support would be needed to kick start the market Another way donor funding can support ESCO projects is by providing guarantees as a next step to initial grant type funding Another way donor funding can support ESCO projects is by providing guarantees as a next step to initial grant type funding

NAMA PROPOSAL NATIONAL LEGISLATION EBRD PROJECT EU AA Energy Community Treaty PHASE I ESCO model for public buildings in the covenant cities PHASE II Extend to the residential sector in urban areas NEEAP IMPLEMENTATION

Co-Benefits Economic Energy Security Social & Health Environment The cost savings against a business as usual scenario New job opportunities The increase in asset values Reducing of the Energy dependence Reducing of the energy intensity Decline the events of cardio-vascular and respiratory diseases Decrease the events of more minor illnesses A positive impact on mental well-being Reduction of Natural Gas usage Reduction of demand on firewood

Thank you! NAMA on Low-Carbon Building in Georgia