Nationally Appropriate Mitigation Actions

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Evaluation Plan:
2016-2020, Azerbaijan
Evaluation Type:
Mid Term Project
Planned End Date:
11/2017
Completion Date:
12/2017
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
20,000

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Title Nationally Appropriate Mitigation Actions
Atlas Project Number: 00081318
Evaluation Plan: 2016-2020, Azerbaijan
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 12/2017
Planned End Date: 11/2017
Management Response: Yes
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 2.5.1 Solutions developed, financed and applied at scale for energy efficiency and transformation to clean energy and zero-carbon development, for poverty eradication and structural transformation
Evaluation Budget(US $): 20,000
Source of Funding: State Oil Company of the Republic of Azerbaijan
Evaluation Expenditure(US $): 20,000
Joint Programme: No
Mandatory Evaluation: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Jirí Zeman Evalutor jirkazeman@seznam.cz CZECH REPUBLIC
GEF Evaluation: Yes
GEF Project Title: Nationally Appropriate Mitigation Actions
Evaluation Type: Mid-term Review
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-5
GEF Project ID: 5291
PIMS Number: 5138
Key Stakeholders: Project budget
Countries: AZERBAIJAN
Lessons
Findings
Recommendations
1

Evaluation Recommendation No. 1:   Focus on delivering results in Outcome 1 (Assessment of GHG emission mitigation potentials and target setting) and Outcome 2 (Specific Oil & Gas end-use sectors are endorsed by all stakeholders to begin detailed design and implementation of NAMA projects) without further delay.

1.1.    Rename Outcome 2 as “NAMAs (program/action plan) in oil & gas end-use sectors developed for SOCAR?”

1.2.    Hire an international consultant with demonstrated experience in developing GHG marginal abatement cost curves (MACC) and developing GHG emission reduction policies and action plans, to support delivery of Outcome 1 and 2.

1.3.    Carry out technical and cost analysis of potential GHG emission reduction opportunities in SOCAR to develop MACCs that illustrate potential and associated full costs of individual GHG emission reduction opportunities in a single diagram.

1.4.    Based on the technical, cost and barrier analysis, specify feasible time-bound targets and NAMA action program for approval and implementation. The NAMA action plan will combine both investment actions, as well as necessary policy/ actions.

1.5 Use the developed MACCs for awareness raising among decision and policy makers and other local stakeholders, to illustrate impact of prioritizing cost-effective actions first on total costs of achieving specific targets (versus prioritizing higher-costs solutions).

 

 

2

Evaluation Recommendation No 2:Develop a pilot project replication strategy

  1. Integrate experience and information gained from pilots and available locally, including from project/studies being implemented in the country with support of other international donors, in developing the NAMA action plan.
  2. Strengthen working relations with all local stakeholders (viz. ministries, agencies, AREA, etc.), and international development partners that are active in similar work.
  3. Disseminate knowledge about eco-driving through trainings to be imparted to drivers of other state/governmental agencies and private sector.
  4. Consider organizing eco-driving training for media representatives to apprise them about the national savings potential and organize an eco-driving contest, or rally for the public.
  5. Implementation of a specific motivation scheme of drivers in eco-driving by SOCAR’s management will ensure sustainable fuel and GHG emission savings.

 

3

Evaluation Recommendation No. 3: Support policy/regulatory dialogue on a national level to adopt necessary regulations to support NAMA action plan implementation on a country level

  1. Energy efficiency and renewable energy requires effective regulations in order to be accelerated and mainstreamed. These regulations are either not in place yet in Azerbaijan, or they are not sufficiently specific/effective. This includes primarily update of energy performance in buildings regulations (including envelope insulation), as well as other energy efficiency regulations, such as energy appliance labeling, minimal energy performance standards for energy appliances etc. Renewable energy represents a typical GHG emission mitigation measure that is more costly than actual (still rather low) energy prices in Azerbaijan. Sufficient financial support scheme is essential for motivation of private investors in investment in new renewable energy production.
  2. UNDP can utilize its experience from other CIS countries, where it implemented GEF supported projects to develop and implement energy efficiency and renewable energy policies and regulations. For example, most of CIS countries have their national energy efficiency in buildings regulations updated already, which leads to utilization of building envelope insulation.
  3. The project can organize regional/international workshop to present experience and lessons learned of other CIS countries to support adoption of effective energy efficiency and renewable energy regulations in Azerbaijan as well.
4

Evaluation Recommendation No. 4:Strengthen information and experience dissemination

  1. The long-term impact of GEF interventions on the project will depend on effective capacity building and enforcement of policies/regulations.
  2. Adopt innovative approaches while organizing trainings and workshops and deliver specific capacity building activities (including for example student contest on energy efficiency in buildings).
  3. The building energy-efficiency experience should be passed on to local expert community, including architects, building designers, construction engineers, developers, construction practitioners, university teachers, students, etc.

 

1. Recommendation:

Evaluation Recommendation No. 1:   Focus on delivering results in Outcome 1 (Assessment of GHG emission mitigation potentials and target setting) and Outcome 2 (Specific Oil & Gas end-use sectors are endorsed by all stakeholders to begin detailed design and implementation of NAMA projects) without further delay.

1.1.    Rename Outcome 2 as “NAMAs (program/action plan) in oil & gas end-use sectors developed for SOCAR?”

1.2.    Hire an international consultant with demonstrated experience in developing GHG marginal abatement cost curves (MACC) and developing GHG emission reduction policies and action plans, to support delivery of Outcome 1 and 2.

1.3.    Carry out technical and cost analysis of potential GHG emission reduction opportunities in SOCAR to develop MACCs that illustrate potential and associated full costs of individual GHG emission reduction opportunities in a single diagram.

1.4.    Based on the technical, cost and barrier analysis, specify feasible time-bound targets and NAMA action program for approval and implementation. The NAMA action plan will combine both investment actions, as well as necessary policy/ actions.

1.5 Use the developed MACCs for awareness raising among decision and policy makers and other local stakeholders, to illustrate impact of prioritizing cost-effective actions first on total costs of achieving specific targets (versus prioritizing higher-costs solutions).

 

 

Management Response: [Added: 2018/05/16] [Last Updated: 2018/07/11]

Agree

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The suggested name of Outcome 2 will be changed as proposed.
[Added: 2018/05/16] [Last Updated: 2018/11/26]
Project team, with support of SOCAR and MENR 2018/11 Completed This and other proposed changes in the Logframe will be reviewed separately and sent for GEF’s concurrence, if needed. NAMA action plan will be specific to SOCAR, not country. Update : for a better clarity the name of Component 2 in the “Nationally Appropriate Mitigation Adtions (NAMAs) for low-carbon end-use sectors in Azerbaian” Project has changed from initial: “Developmet of Mitigation Actions (NAMAs) and Instruments in oil & gas end-use sectors” to: “NAMAs (program/action plan) in oil & gas end-use sectors developed for SOCAR” History
The project team will finalize the TOR and procure the services of a Climate Change Mitigation Expert to carry out the implementation of actions for the achievement of Outcomes 1 & 2.
[Added: 2018/07/11]
Project team, with support of SOCAR and MENR 2018/05 Completed MENR and SOCAR agree with the MTR recommendation and will undertake necessary steps. Update: The international consultant in developing GHG marginal abatement cost curves (MACC) and developing GHG emission reduction policies and action plans has been hired on March 2018
MACC based recommendations to be developed will be the foundation of a NAMA action plan for GHG reduction measures
[Added: 2018/07/11] [Last Updated: 2018/09/17]
Project team, with input from MENR 2019/03 Initiated Active cooperation of SOCAR’s management will be sought to develop a broad program of GHG reduction actions. Update 17.09.2018: Initial report on MACC based recommendations has been developed and the final report is expected by March 2019. History
NAMA actions to be developed will include investment plan and necessary policy actions
[Added: 2018/07/11] [Last Updated: 2018/09/17]
SOCAR and Project team 2019/12 Not Initiated A commercial financing based program for building energy efficiency to be launched. History
Awareness raising workshop/seminar will be arranged in which results of pilot projects will be disseminated to decision and policy makers.
[Added: 2018/07/11]
SOCAR and Project team 2018/03 Completed All international and local experts are being invited to present their key findings. Update: Already held on 06 March 2018; Another one to be planned.
2. Recommendation:

Evaluation Recommendation No 2:Develop a pilot project replication strategy

  1. Integrate experience and information gained from pilots and available locally, including from project/studies being implemented in the country with support of other international donors, in developing the NAMA action plan.
  2. Strengthen working relations with all local stakeholders (viz. ministries, agencies, AREA, etc.), and international development partners that are active in similar work.
  3. Disseminate knowledge about eco-driving through trainings to be imparted to drivers of other state/governmental agencies and private sector.
  4. Consider organizing eco-driving training for media representatives to apprise them about the national savings potential and organize an eco-driving contest, or rally for the public.
  5. Implementation of a specific motivation scheme of drivers in eco-driving by SOCAR’s management will ensure sustainable fuel and GHG emission savings.

 

Management Response: [Added: 2018/05/16] [Last Updated: 2018/07/11]

Agree

Key Actions:

Key Action Responsible DueDate Status Comments Documents
A consultative workshop will be held in which the experiences of pilot activities will be shared. Other development partners doing similar work will be invited to gain from their experiences.
[Added: 2018/05/16] [Last Updated: 2018/07/11]
SOCAR, Project team 2018/03 Completed All international and local experts are being invited to present their key findings History
An already good working relationship with SOCAR, MENR will be further strengthened by holding formal meetings on more frequent basis.
[Added: 2018/07/11] [Last Updated: 2019/01/01]
Project team 2018/12 Completed Steering Committee will be expanded to include other agencies. The meetings are initiated by UNDP and organized with support of SOCAR officials. The workshop-training was organized for MENR specialist on GHG reduction and mitigation History
A wider participation will be ensured in any future training programs, if conducted, including by media. Other events may be arranged.
[Added: 2018/07/11] [Last Updated: 2019/01/01]
Project team 2018/12 Completed Other agencies, beside SOCAR, were invited to previous training workshops. The meetings and discussions with Ministry of Ecology and Natural Resources and Baku Transportation Agency on Energy Efficiency and CO2 reduction are organized. History
Work with SOCAR HR department to study ways to devise an incentive scheme for drivers’ acceptance of eco-driving practices.
[Added: 2018/07/11] [Last Updated: 2019/01/01]
SOCAR, Project team 2018/12 Completed The need for an incentive scheme has already been acknowledged by SOCAR at the Project Director level and it’s now planned to raise it to other appropriate levels. Update: SOCAR has already established the incentive mechanism. History
3. Recommendation:

Evaluation Recommendation No. 3: Support policy/regulatory dialogue on a national level to adopt necessary regulations to support NAMA action plan implementation on a country level

  1. Energy efficiency and renewable energy requires effective regulations in order to be accelerated and mainstreamed. These regulations are either not in place yet in Azerbaijan, or they are not sufficiently specific/effective. This includes primarily update of energy performance in buildings regulations (including envelope insulation), as well as other energy efficiency regulations, such as energy appliance labeling, minimal energy performance standards for energy appliances etc. Renewable energy represents a typical GHG emission mitigation measure that is more costly than actual (still rather low) energy prices in Azerbaijan. Sufficient financial support scheme is essential for motivation of private investors in investment in new renewable energy production.
  2. UNDP can utilize its experience from other CIS countries, where it implemented GEF supported projects to develop and implement energy efficiency and renewable energy policies and regulations. For example, most of CIS countries have their national energy efficiency in buildings regulations updated already, which leads to utilization of building envelope insulation.
  3. The project can organize regional/international workshop to present experience and lessons learned of other CIS countries to support adoption of effective energy efficiency and renewable energy regulations in Azerbaijan as well.
Management Response: [Added: 2018/05/16]

Agree with 3.2 and 3.3. Item 3.1 cannot be fully implemented given the marginal impact that can be made to develop regulations given the limited time, scope and budget of project. However, for 3.1, a dialog will be started with the concerned Government quarters to sensitize them and lay the foundation for legislative work.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
A comparative paper on building efficiency legislation in a few of the CIS countries will be developed which will make recommendations for adoption in Azerbaijan
[Added: 2018/05/16] [Last Updated: 2019/01/02]
UNDP, Project Team 2019/03 Initiated The task will be added to the scope of the international building efficiency expert History
A special workshop on building energy efficiency is to be arranged in Baku to invite and learn from experiences of similar projects implemented in CIS countries and the roadmap for the adoption of efficiency standards.
[Added: 2018/07/11] [Last Updated: 2019/01/01]
UNDP, Project Team and SOCAR 2018/12 Completed Being a new idea, its modalities and arrangements will be discussed within and outside the UNDP. Update: UNDP (the project team), in collaboration with SOCAR, has organised a workshop on “Awareness raising and knowledge-sharing on effective policies and programs in implementation of Energy Efficiency measures in energy end-use sectors”. The main purpose of the workshop, held on 5-6 December 2018 in Baku at Hilton Hotel was to offer a platform for awareness raising and knowledge sharing on effective policies and programmes to enhance the understanding of energy efficiency as well as examining the potential for renewable energy in various energy end-use sectors in Azerbaijan drawing upon international best practices from the Europe and the CIS region. History
4. Recommendation:

Evaluation Recommendation No. 4:Strengthen information and experience dissemination

  1. The long-term impact of GEF interventions on the project will depend on effective capacity building and enforcement of policies/regulations.
  2. Adopt innovative approaches while organizing trainings and workshops and deliver specific capacity building activities (including for example student contest on energy efficiency in buildings).
  3. The building energy-efficiency experience should be passed on to local expert community, including architects, building designers, construction engineers, developers, construction practitioners, university teachers, students, etc.

 

Management Response: [Added: 2018/05/16] [Last Updated: 2018/07/11]

Agree

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Institutional strengthening will be pursued to main-stream energy-efficiency approach on all activities within SOCAR, especially in the buildings and transport sectors.
[Added: 2018/05/16] [Last Updated: 2019/01/02]
UNDP, project team, in partnership with SOCAR 2018/12 Completed SOCAR representatives are already performing as local experts alongside the international experts as part of capacity building effort. History
A Training & Outreach Expert will be engaged to assist in developing a program to (i) impart training across different segments; (ii) strengthen the institutional capacity within SOCAR to adopt energy-efficiency practices, and (iii) widely disseminate information about the GHG and other benefits achieved from pilot projects.
[Added: 2018/07/11] [Last Updated: 2019/01/02]
Project Team 2018/12 Completed A team of international and local experts will be mobilized to undertake this effort. Update: The preparation Initiated, expected date is 9th of October. Update: A team of international and local experts has conducted several trainings to strengthen the institutional capacity within SOCAR to adopt energy-efficiency practices and sharing the information on GHG reduction History

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