1. Joint Implementation in Romania
Mr. Vlad Trusca
Head of Climate Change Unit
Ministry of Environment and Water Management
“UNFCCC JI Technical Workshop”
Bonn, 13 February 2007

2. Overview Legal Framework Institutional Framework
JI Projects and Priority Areas
JI Track I vs. Track II
JI Approval Procedure
Case study JI: “Sawdust 2000” project
Future Activities/Challenges

3. Legal Framework UNFCCC – signed in 1992 and ratified in 1994
Kyoto Protocol – signed in 1999 and ratified in 2001
Romania – first Annex I country ratifying the Kyoto Protocol
Target – 8% reduction of GHG emissions from 1989 levels
European Union Member State – from 1st January 2007
G.D. no. 658/2006 reorganization of the National Commission on Climate Change (inter-ministerial)
G.D. no. 645/2005 – National Strategy on Climate Change
G.D. no. 1877/2005 – National Action Plan on Climate Change
Ministerial Order no. 1188/2006 – JI projects approval process
Various G.Ds and Ministerial Orders on climate change issues

4. Institutional Framework
Ministry of Environment and Water Management - National Focal Point, coordinating the climate change activities, EU ETS
National Agency for Environmental Protection - implementing the PaMs, GHG inventories, National Communications, EU ETS
National Environmental Fund Administration - GHG emissions reduction projects database, GIS funds administrator
National Commission on Climate Change - advising the Minister of Environment on policy decisions, actions and measures for applying the UNFCCC and KP provisions
Local EPAs, research institutes, universities, NGOs, companies

6. Memoranda of Understanding (JI)
Switzerland (1999)
Netherlands (2000)
Norway (2001)
Austria (2002)
Denmark (2003)
Sweden (2003)
Host Country Agreement with the WB’s Prototype Carbon Fund (2003)
France (2004)
Italy (2006)
Finland (2006)

7. Joint Implementation Projects1.
Rehabilitation of District Heating System in Fagaras
Norway 2.
Modernization of 3 Hydro Units in Portile de Fier I Hydro-station
ERUPT 2-Netherlands 3.
Refurbishing of 2 Holcim Cement Factories 4.
Modernization of 4 Hydro Units in Portile de Fier II Hydro-station
ERUPT 3-Netherlands 5.
‘Sawdust 2000’ - Fuel Switching from Coal to Biomass
Denmark 6.
Geothermal Energy Use in Oradea-area 2 and Beius DH Systems 7.
Afforestation of ~7000 ha Degraded Agricultural Soils
PCF – World Bank 8.
Municipal Cogeneration at CET Targoviste
ERUPT 4-Netherlands 9.
Landfill Gas Recovery at Municipal Landfills in 4 Major Cities
10.
Landfill Gas Recovery at Municipal Landfills Focsani and Tg. Mures
11.
Rehabilitation of CET Timisoara Sud
Sweden
12.
Rehabilitation of DH System and Energy Efficiency in Dr.Tr.Severin
13.
Wood Waste to Energy in Neamt County
14.
Energy Efficiency at Holboca CET II Iasi
15.
Rehabilitation of CET Timisoara Centru
EBRD - Netherlands

8. Priority Areas for JI Projects
Increase of energy efficiency in main economic sectors
Rehabilitation of district heating systems
Construction (or rehabilitation) of co-generation installations
Recovery of methane generated by urban waste landfills
Fuel-switching in energy productive installations
Construction (or rehabilitation) of energy production installations creating clean energy (especially hydro-electric, geothermal, wind, solar, biogas or biomass)
Reducing GHG emissions in the agriculture sector
Reducing GHG emissions in the transports sector
Afforestation and/or reforestation

9. JI Track I vs. Track II Marrakech Accords requirements for JI Track I:
Kyoto Protocol ratified – ok
Assigned Amount calculated – Feb. 2007
National system for assessing GHG emissions – Feb. 2007
National Registry in operation – Mar. 2007
Annual submission of the National GHG Inventory – ok
Precise accounting of Assigned Amount and submission of supplementary information – Feb. 2007
Track I national procedure for determination (PDD, ERUs) to be approved by March-April 2007 – technical assistance project
Track II (JISC) national procedure for approving JI projects – Sep (national focal point – Ministry of Environment)

10. Approval Procedure for JI Projects
(3)
(1) PIN + Letter of interest
Project Participants
MEWM + NEPA
NCCC
Letter of Endorsement
Rejected
(2) PDD + Pre-determination Report
Emission Reduction Purchase Agreement (ERPA)
Letter of Approval
Project partners participate in NCCC meetings for presenting projects
LoAs are based on MoUs with Parties

11. “Sawdust 2000” - Introduction
“Sawdust 2000” project was launched by the Danish Environmental Protection Agency (DEPA) and the Romanian Ministry of Environment and Water Management in 2001
The pilot project was implemented in a small town (Tasca) in a remote area of Romania in the period 1999 – 2000
Fuel switching project implementing technology for using the sawdust (wood dust) as an energy source replacing fossil fuels in the district heating systems

12. “Sawdust 2000” - Existing Situation
Assessment in cooperation with the Romanian Agency for Energy Conservation proved that 5 medium-size towns fulfilled all the requirements established for the project implementation:
Existing district heating systems in operation
Identifying wood waste resource as sufficient
Allocating 10% of the investment from local budget
Developing the “Sawdust 2000” as a JI project
Strong commitment at the local and regional level

13. “Sawdust 2000” - Financial Scheme
Total budget of the project ~ 14 million EURO, from which:
22% Joint Implementation mechanism – Denmark;
48% EU Phare 2001 Programme – “Regional Tourism Development” – EU Delegation in Romania accepted to participate in this project (funds managed by Romanian Ministry of Development);
20% Special Fund for the Energy System Development managed by the Ministry of Economy and Trade;
10% local budget.
Project implemented in the period
GHG emissions reduction ~ 700,000 ERUs and AAUs in the period ( )

14. “Sawdust 2000” - Success Story
Pilot project implemented in a small town
MoU with Denmark - Jan 2003
Project Agreement “Sawdust 2000” - March 2003
All 5 district heating systems commissioned in 2004
Monitoring of emission reductions started
Renewable, CO2 neutral, local energy project
State and municipality subsidy for heat consumer energy prices reduced, and removed in time
Improvement of the social standard

15. Future Activities/Challenges
Implementing the National Strategy and Action Plan
Meeting all the eligibility criteria for KP’s flexible mechanisms
Strengthening the National System for estimating the GHG emissions and implementing the National Registry
Elaborating and adopting the JI Track I procedure
Establishing a Green Investment Scheme (draft Governmental Decision) and cooperation with potential buyers
Finalizing database with possible GHG emissions reduction projects (JI & GIS) - great potential also outside EU ETS
Clarifying the double counting procedural rules (EU ETS – JI)
Approving JI projects with environmental and social benefits
Increasing the institutional capacity and training new experts

16. Thank you For further information contact: Vlad Trusca, UNFCCC & JI National Focal Point Website