1. 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

2. 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

3. 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

4. Morocco Energy Strategy
Sectoral development plans, including 2009 energy strategy
National Strategy for Sustainable Development
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

5. Algeria Energy Strategy
National Investment Plan, including infrastructure axis
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

6. Tunisia Energy Strategy
Tunisia 2020 national strategic 5-year development plan, including green economy & sustainable development pillar
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

7. Palestine Energy Strategy
National Development Plan, including infrastructure sector
2020 energy sector strategy (draft)
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

8. Israel Energy Strategy
Israel 2020 integrated economic, social and environmental masterplan
policy for the integration of RES into the electricity sector
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

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

10. Jordan Energy Strategy Jordan 2025 National Vision and Strategy
Master Strategy for the Energy Sector in Jordan
National Energy Efficiency Action Plan
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

11. 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

12. 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

13. 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

14. SEAP Support Mechanisms
Proposed CoM Committee members
Central Government
Regional Administration
Fund
University / research institute
utility
training center
engineering association
forum / NGO
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15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. Best Approach to Obtaining Funds?
Discussion
Best Approach to Obtaining Funds? 
Cleaner Energy Saving Mediterranean Cities