Towards Carbon Neutral Tourism in Montenegro

Report Cover Image
Evaluation Plan:
2017-2021, Montenegro
Evaluation Type:
Final Project
Planned End Date:
02/2020
Completion Date:
09/2020
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
20,000

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Title Towards Carbon Neutral Tourism in Montenegro
Atlas Project Number: 79785
Evaluation Plan: 2017-2021, Montenegro
Evaluation Type: Final Project
Status: Completed
Completion Date: 09/2020
Planned End Date: 02/2020
Management Response: Yes
UNDP Signature Solution:
  • 1. Poverty
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.4.1 Solutions scaled up for sustainable management of natural resources, including sustainable commodities and green and inclusive value chains
  • 2. Output 2.1.1 Low emission and climate resilient objectives addressed in national, sub-national and sectoral development plans and policies to promote economic diversification and green growth
SDG Goal
  • Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable
  • Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
SDG Target
  • 11.4 Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
  • 11.b By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels
  • 8.9 By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products
Evaluation Budget(US $): 20,000
Source of Funding: GEF
Evaluation Expenditure(US $): 25,000
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Eugenia Katsigris Mrs eugenia.katsigris@gmail.com
Nikoleta Tomovic Djukanovic Mrs nikoleta.tomovic@udg.edu.me
GEF Evaluation: Yes
GEF Project Title: Towards Carbon Neutral Tourism in Montenegro
Evaluation Type: Terminal Evaluation
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-5
GEF Project ID: 5098
PIMS Number: 5149
Key Stakeholders: Ministry of sustainable development and tourism, Ministry of Economy, Chamber of commerce, Municipalities
Countries: MONTENEGRO
Lessons
Findings
Recommendations
1

Leverage low carbon tourism theme with adjustments to maximize climate benefits: Continue to build on the excellent awareness and pilot work associated with TCNTM’s “low carbon tourism theme,” but recognize the low share of domestic “pure” tourism in Montenegro’s total GHG emissions (≈3.9%42). Thus, focus on using this theme to promote broader/ cross-sector efforts, such as in transportation and street lighting, to ensure GHG ERs are maximized. In this way, promote Montenegro as a low carbon tourist destination and the ecological country that, by its constitution, it is declared to be. (This strategy, a key lesson of TCNTM, may be incorporated into Eco-Fund plans for low-carbon tourism and MSDT plans to promote Montenegro more generally.)
This share is based on 2014 estimates of total GHG emissions for the country and tourism sector emissions domestically. While official 2018 estimates of total GHG emissions for the country are not yet available, project work suggest tourism sector emissions have been growing at just half the rate of tourism sector revenues. Thus, it’s possible that despite the tourism sector’s faster growth than the economy as a whole, the share of domestic tourism sector emissions in the nation’s total has not risen.

2

Apply enhanced strategy to future sets of pilot projects and Eco-Fund work to maximize main environmental/ energy impacts targeted and co-financing stimulated: In future sets of pilot projects (such as included in future UNDP projects) or in fund-based efforts (such as Eco-Fund’s), ensure that the main criteria (whether it be GHG ERs, waste management, area of forest sustainably managed, etc.) is strategically and quantitatively incorporated into project selection and project development approaches.Sub-recommendations include:
(a) Select types of projects that deliver a relatively high level of the main criteria per unit funding (e.g. GHG ER per Euro), based on clear quantitative analysis. Project concepts may be adjusted to ensure such benefits are maximized. For GHG ERs, for example, an electric vehicle driven 200 km per day will deliver much higher benefit than the same vehicle driven 30 km per day. (UNDP may incorporate this strategy into future GEF projects where a pilot project approach is adopted. The Eco-Fund should incorporate this quantitative approach into its guidelines for project selection or development in each of its key areas, including climate change/transport, waste management, etc.).
(b) For types of projects that are expected to have very good economic returns and strong contributions to the main aim (e.g. GHG ERs), consider providing funds for feasibility studies and detailed technical designs to stimulate other investment to implement projects. (UNDP can consider this approach for future projects. Eco-Fund should be sure to include project development support for economically attractive projects among its priorities for funding.)
(c) Consider measures to ensure cooperation between cities to facilitate larger, higher impact projects. This, in turn, may require TA support for developing regional institutions and policies. (UNDP may look for opportunities to provide needed TA support to facilitate regional cooperation and the establishment of regional institutions. Eco-Fund may consider the support of inter-city projects, through which Montenegro will gain experience in regional cooperation.)
(d) When possible, provide support for sourcing and identifying quality products for the best price, ensuring that attractive suppliers bid on opportunities. Such support may be especially worthwhile when more than one project of the same type (e.g. LED street lighting, EV tourist trams, PV or SWH systems for accommodations) is supported.

3

Ensure continued TA support for Eco-Fund and emphasize approaches to ensure Eco-Fund’s success and impact. Sub-recommendations (some overlapping with aspects of the two recommendations above) include:
(a) UNDP CO should find a means to continue TA support for Eco-Fund (e.g. through a new project) to ensure that the new institutional structure is developed, capitalization is realized, procedures developed, high impact projects developed/ pursued, and visibility achieved, such as through initial low budget-projects and promotion during period when capitalization is still low.
Priorities for potential high-impact areas noted through experience and learnings of TCNTM that future TA for Eco-Fund may support include: public transport (within Podgorica, between different cities, and between the urban and rural areas of municipalities); possible SWH and PV program for accommodations or buildings more broadly; support for feasibility and/or detailed designs for relevant municipal projects; regional waste management projects (requiring cooperation among municipalities); and further exploration of the development and implementation of circular economy principles in tourism sector, in particular when it comes to the food waste, via cooperation with Chamber of Economy and other relevant stakeholders.
Already, TCNTM has initiated cooperation with the Croatian Eco-Fund and the Slovenian Eco-Fund, with a study tour initially planned for end of March 2020. Due to the COVID-19 pandemic, this study tour has been rescheduled for autumn 2020.
(b) Eco-Fund and UNDP CO may wish to ensure that there is cooperation between Montenegrin Eco-Fund and Croatian Eco-Fund, Slovenian Eco-Fund, and other eco-funds in the region and EU.44 In particular, Croatian Eco-Fund has funds from emissions trading system (ETS) that are to be used in 3rd countries on CCM projects. While the amount of funding may not be that large, such projects in Montenegro could be a chance for the two funds to cooperate and for Montenegro’s fund to “learn the ropes” from Croatia’s.
(c) Eco-Fund should consider the following going forward:
i. Please see Recommendation 2 (B1)’s (a), (b), (c), and (d).
ii. Put strong emphasis on full compliance with procurement procedures (as defined in guidebook provided by TCNTM’s documentation for establishment of the Eco Fund) with zero tolerance for deviation to ensure transparency and good reputation that will attract donor funds as well. (For donors to be attracted to have their funds managed by Eco-Fund, there should be good value-add for the management fees charged. Governance that surpasses other options in quality will be an important consideration.)
iii. For Eco-Funds low-carbon tourism portfolio, as in Recommendation 1 (A1), consider cross-sector projects that both substantially enhance tourism and maximize GHG ERs per Euro.
iv. Consider starting deployment of funds as soon as possible to generate visibility and get the Eco-Fund known. If funding is low, a start with small projects, such as promotion of e-vehicles via partial purchase subsidies for EVs or promotion of PV systems and SWHs for accommodations via such subsidies, could be pursued.

4

Consider, for transport project and/ or transport initiatives going forward, opportunities and learnings from TCNTM: Consider rolling the several transport-related opportunities identified and lessons learned in TCNTM (as below) into in-progress design of major low-carbon transport project for Montenegro. For initiatives that can’t be rolled into this major project, consider other potential opportunities to pursue them.
(a) Consider including, for investment initiatives, the following: (i) priority (as already under discussion) - Podgorica low carbon bus system, low carbon inter-city transport and/or urban-rural transport, and more low carbon boat public transport; (ii) for discussion - low carbon cable car, marina in which docked boats are powered by RE45, low carbon airport, and low carbon cargo port.
Initial feedback indicates this has not been achieved elsewhere in world; and space limitations at marinas in Montenegro make it especially challenging.
(b) Design of investment initiatives may include “definite” priorities with public funding or public-private partnership (as in (a)(i)) and “aims” that either have mainly private sector funding or are otherwise especially challenging and that project will work towards but cannot guarantee (as in (a)(ii)). Inclusion of private sector will enable higher level of leverage of grant funds, which could make project more attractive to donors.
(c) Include private sector via public-private partnership in investment initiatives if funder requires funds be disbursed to public entity only. For low-carbon boat public transport, this may include public sector development of stations or provision of subsidies to local riders of boats. For cable car project, this may include direct investment via joint venture or investment in featured nearby grid-scale PV station. For marina powering, it may include state investment in RE system. If municipal buses or inter-city buses are to remain privately operated, it may include a scheme of public investment and leasing of buses to private sector. An alternative might be a joint venture between the public and private sectors for bus operations.
(d) Regarding the low-carbon boat public transport efforts by Bella Boka in Boka Bay, seriously consider every kind of GOM and relevant institutional support possible for implementation and scaling up. Address the challenge of lack of clear institutional and administrative responsibilities vis-à-vis this initiative and the serious burden and pressure thereby placed on the investor. Given that the service provided is year-round public transport (and not just tourist seasonal transport), it is especially important for GOM to seriously consider what it can do to make the public transport effort successful for the long-run.
(e) Ensure implementation, via investment initiatives, of more of the measures of polycentric SUMP developed by TCNTM. This may involve adoption of the SUMP as action plan by the involved cities and also incorporation at the national level into the relevant action plan.
(f) Include TA initiatives to build on work of TCNTM including: (i) TA support of Eco-Fund (to get it capitalized and operating). (ii) Development of the National E-Mobility Strategy that will focus on:
nation-wide EV charging infrastructure deployment, grid adjustment, e-mobility tariff system and incentive programs for transition to EVs in private (citizens and businesses) and public sector. (ii) Policies to support low carbon transport, such as VAT reduction or elimination for EVs. (iv) Initiatives to reduce CO2 emissions associated with international travel to Montenegro (thus addressing 86% of GHG emissions for Montenegro tourism). This may include work to ensure the lowest emissions possible of airlines flying to Montenegro (which might alternatively be a part of the Airport Project) and/or promotion/ assistance to alternative modes of international transport to Montenegro, such trains (instead of cars and planes), etc.
(g) Include cost and sourcing analysis, to ensure best deals for quality equipment are obtained for investment initiatives. As part of this work, reach out to quality best price bidders to ensure they participate in RFPs.

5

Pursue cooperation with large companies and stimulation of large investments: While both cooperation with large companies and stimulation of large investments are challenging to achieve, develop methods to create possibilities of success in these areas, while at the same time not putting “all the eggs” of project design into such initiatives. As for large companies, UNDP around the world has developed some successful partnerships that could be looked to as models. Large companies find the UNDP brand attractive and appreciate the environmental and social expertise. As for large investments, UNDP/ UNDP projects and their teams can play a facilitator/ deal maker role to stimulate the realization of large investments. Yet, it should be ensured that project M&E design does not measure success based on the achievement of specific “long-shot” targets, but instead includes indicators and targets that can be achieved by multiple paths, including sets of small or medium-sized initiatives.

6

Building on lessons learned, assess benefits of addressing GHG emissions/ EE of accommodations in Montenegro and consider developing new strategy to do so: Recognize that eco-certification is not the best vehicle for addressing GHG emissions/ EE of accommodations, both because GHG ERs/ EE may not be improved much by eco-certification and because it is difficult to impact a large proportion of accommodations through eco-certification. Recognize also that because of seasonality of many accommodations and their already fairly good EE levels, it is difficult to get good payback from many classic EE measures for them. Recognize that accommodations very significantly make up 33.4% (2018) of tourism sector GHG emissions domestically, though only perhaps around 1.3% of national GHG emissions.46 Assess benefit of supporting accommodations in reducing GHG emissions, with comparison to rest of building sector, and preferred methods of achieving GHG ERs (cost-benefit analysis, including consideration of prevalence of EE and RE equipment already installed in accommodations sector). Depending on results of cost-benefit analysis, consider follow up initiative to connect accommodations with funding sources (Eco-Fund, Investment and Development Fund, other donor projects) for low interest loans for SWHs and PV systems, which appear to be the highest potential GHG ER area for accommodations as a whole.

7

Continue spatial planning related efforts to preserve green areas and, potentially, to promote low carbon cities: While spatial planning continues to be a difficult area for a
donors to work in, it presents an urgent and important need due to conversion of green areas for hotel development. UNDP may wish to consider creating further opportunities to support the preservation of green areas in places like Budva in the face of this continued, rapid building development. Ideally, UNDP may find an opportunity in the future to support incorporation of low-carbon and green area friendly development into spatial planning policy to promote low carbon cities in Montenegro. In the meantime, incremental steps for green area preservation may be taken.

8

Build on lessons of TCNTM to address high potential policy areas: (a) Learning from the good example of TCNTM, make policy work of future projects responsive to GOM needs. As such, project design should be flexible, not requiring support of specific policies, and instead focus on achievement of policies related to certain aims (e.g. policies that result in GHG ERs). (b) For CCM projects, focus on policies that may have the most climate benefits, such as transport sector policies. (c) To facilitate development of large-scale/ regional projects and to support Eco-Fund efforts to do so, consider supporting development of regional institutions and regional environmental protection projects, perhaps via environmental governance project. (As in Recommendation 2, inter-municipal cooperation is something that should be considered for all future initiatives, including various Eco-Fund projects and various UNDP projects. Here, in Recommendation 8, we are further suggesting that a specific UNDP project may be developed to pursue both establishment of the needed regional institutions that don’t yet exist and regional environmental projects. The latter is an area in which inter-municipal cooperation is particularly important, because areas such as waste management are in great need of economies of scale that cannot be offered by single municipality projects.)

9

Learn from tourism sector inventory findings and adopt appropriate strategy to incorporate “low carbon tourism” into NDCs: Drop effort to get tourism sector GHG emissions included in national inventory annually. Yet, leverage work done in this area and TCNTM lessons to achieve effective inclusion of “low carbon tourism” theme in NDCs. Aim for inclusion in NDCs of projects that support low carbon tourism, but (per Recommendation 1 (A1) and Recommendation 2a (B1(a))) may be broader than tourism alone and thus bring the highest possible GHG ERs. In particular, consider including replication of LED street lighting projects and pursuit of transport projects (including improved public transport and EV uptake).

10

Learn from experience of TCNTM’s awareness work, including both the benefits of having an awareness officer and the challenges of designing awareness indicators and surveys: (1) For other projects that have a challenging message to convey and/or strong need for ongoing awareness work, consider full time awareness officer to both design and implement awareness strategy, instead of intermittent awareness consultancies. (2) Develop more effective indicator design for awareness outcomes in future projects. Indicators should measure the kind of impact the awareness is targeting. Typically, this may include reaching large numbers of people via various methods and ensuring that the campaign or other awareness effort has a real impact on peoples’ thinking and/ or results in real learning by them. (3) If surveys are to be conducted to measure awareness results, emphasis should be put at baseline on a good survey design that can truly detect impact of the project’s awareness work. The same survey questions should be asked at baseline and EOP. The group of persons surveyed should have similar compositions at baseline and EOP.

11

Learn from TCNTM’s strengths in implementation: (1) For future projects (around the world), consider having, as members of project team, a strong coordinator for each outcome. This coordinator will actually take part in implementation of many of the outcome’s activities, thus reducing the need for contracts with outside consultants and companies and providing greater continuity and connection between activities. (2) For studies and reports prepared, ensure these are living documents by involving key stakeholders in the launch of the assignment, in follow up with the draft and its finalization, and in actual use of the product to stimulate action on the ideas contained.

1. Recommendation:

Leverage low carbon tourism theme with adjustments to maximize climate benefits: Continue to build on the excellent awareness and pilot work associated with TCNTM’s “low carbon tourism theme,” but recognize the low share of domestic “pure” tourism in Montenegro’s total GHG emissions (≈3.9%42). Thus, focus on using this theme to promote broader/ cross-sector efforts, such as in transportation and street lighting, to ensure GHG ERs are maximized. In this way, promote Montenegro as a low carbon tourist destination and the ecological country that, by its constitution, it is declared to be. (This strategy, a key lesson of TCNTM, may be incorporated into Eco-Fund plans for low-carbon tourism and MSDT plans to promote Montenegro more generally.)
This share is based on 2014 estimates of total GHG emissions for the country and tourism sector emissions domestically. While official 2018 estimates of total GHG emissions for the country are not yet available, project work suggest tourism sector emissions have been growing at just half the rate of tourism sector revenues. Thus, it’s possible that despite the tourism sector’s faster growth than the economy as a whole, the share of domestic tourism sector emissions in the nation’s total has not risen.

Management Response: [Added: 2020/09/14] [Last Updated: 2020/09/14]

Facilitate further GHG emission reduction measures through design and implementation of Eco Fund’s incentive programs through initiating the signing of cooperation agreement with the Eco Fund in order to create the baseline for more focused promotion of the broader cross sector efforts

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Start the conversation with Eco-Fund and MSDT to promote Montenegro more generally by leveraging the low carbon toruism theme
[Added: 2020/09/14]
GOM, especially MSDT, Eco-Fund team, MTMA 2020/12 Initiated
2. Recommendation:

Apply enhanced strategy to future sets of pilot projects and Eco-Fund work to maximize main environmental/ energy impacts targeted and co-financing stimulated: In future sets of pilot projects (such as included in future UNDP projects) or in fund-based efforts (such as Eco-Fund’s), ensure that the main criteria (whether it be GHG ERs, waste management, area of forest sustainably managed, etc.) is strategically and quantitatively incorporated into project selection and project development approaches.Sub-recommendations include:
(a) Select types of projects that deliver a relatively high level of the main criteria per unit funding (e.g. GHG ER per Euro), based on clear quantitative analysis. Project concepts may be adjusted to ensure such benefits are maximized. For GHG ERs, for example, an electric vehicle driven 200 km per day will deliver much higher benefit than the same vehicle driven 30 km per day. (UNDP may incorporate this strategy into future GEF projects where a pilot project approach is adopted. The Eco-Fund should incorporate this quantitative approach into its guidelines for project selection or development in each of its key areas, including climate change/transport, waste management, etc.).
(b) For types of projects that are expected to have very good economic returns and strong contributions to the main aim (e.g. GHG ERs), consider providing funds for feasibility studies and detailed technical designs to stimulate other investment to implement projects. (UNDP can consider this approach for future projects. Eco-Fund should be sure to include project development support for economically attractive projects among its priorities for funding.)
(c) Consider measures to ensure cooperation between cities to facilitate larger, higher impact projects. This, in turn, may require TA support for developing regional institutions and policies. (UNDP may look for opportunities to provide needed TA support to facilitate regional cooperation and the establishment of regional institutions. Eco-Fund may consider the support of inter-city projects, through which Montenegro will gain experience in regional cooperation.)
(d) When possible, provide support for sourcing and identifying quality products for the best price, ensuring that attractive suppliers bid on opportunities. Such support may be especially worthwhile when more than one project of the same type (e.g. LED street lighting, EV tourist trams, PV or SWH systems for accommodations) is supported.

Management Response: [Added: 2020/09/14]

Initiate the discussion with the Eco Fund on the technical support planned to be provided to the Eco Fund. TA will enable design and implementation of incentive programs for private and public sector based on clear and transparent criteria, where one mandatory will be reduction oh GHG emissions. The financial support will be provided on the basis of performance-based contracts thus enabling effective and efficient use of allocated funds. In this regard, the procedures will be defined in a way to stimulate inter-municipal cooperation, cost-benefit and other relevant analyses as well as development of various types of supporting documentation.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support the Eco fund with the TA from other related programming interventions in the CO to maximise main environmental/energy impacts though future calls for project selection
[Added: 2020/09/14]
UNDP CO (for future projects), GOM, especially Eco-Fund 2020/12 Initiated History
3. Recommendation:

Ensure continued TA support for Eco-Fund and emphasize approaches to ensure Eco-Fund’s success and impact. Sub-recommendations (some overlapping with aspects of the two recommendations above) include:
(a) UNDP CO should find a means to continue TA support for Eco-Fund (e.g. through a new project) to ensure that the new institutional structure is developed, capitalization is realized, procedures developed, high impact projects developed/ pursued, and visibility achieved, such as through initial low budget-projects and promotion during period when capitalization is still low.
Priorities for potential high-impact areas noted through experience and learnings of TCNTM that future TA for Eco-Fund may support include: public transport (within Podgorica, between different cities, and between the urban and rural areas of municipalities); possible SWH and PV program for accommodations or buildings more broadly; support for feasibility and/or detailed designs for relevant municipal projects; regional waste management projects (requiring cooperation among municipalities); and further exploration of the development and implementation of circular economy principles in tourism sector, in particular when it comes to the food waste, via cooperation with Chamber of Economy and other relevant stakeholders.
Already, TCNTM has initiated cooperation with the Croatian Eco-Fund and the Slovenian Eco-Fund, with a study tour initially planned for end of March 2020. Due to the COVID-19 pandemic, this study tour has been rescheduled for autumn 2020.
(b) Eco-Fund and UNDP CO may wish to ensure that there is cooperation between Montenegrin Eco-Fund and Croatian Eco-Fund, Slovenian Eco-Fund, and other eco-funds in the region and EU.44 In particular, Croatian Eco-Fund has funds from emissions trading system (ETS) that are to be used in 3rd countries on CCM projects. While the amount of funding may not be that large, such projects in Montenegro could be a chance for the two funds to cooperate and for Montenegro’s fund to “learn the ropes” from Croatia’s.
(c) Eco-Fund should consider the following going forward:
i. Please see Recommendation 2 (B1)’s (a), (b), (c), and (d).
ii. Put strong emphasis on full compliance with procurement procedures (as defined in guidebook provided by TCNTM’s documentation for establishment of the Eco Fund) with zero tolerance for deviation to ensure transparency and good reputation that will attract donor funds as well. (For donors to be attracted to have their funds managed by Eco-Fund, there should be good value-add for the management fees charged. Governance that surpasses other options in quality will be an important consideration.)
iii. For Eco-Funds low-carbon tourism portfolio, as in Recommendation 1 (A1), consider cross-sector projects that both substantially enhance tourism and maximize GHG ERs per Euro.
iv. Consider starting deployment of funds as soon as possible to generate visibility and get the Eco-Fund known. If funding is low, a start with small projects, such as promotion of e-vehicles via partial purchase subsidies for EVs or promotion of PV systems and SWHs for accommodations via such subsidies, could be pursued.

Management Response: [Added: 2020/09/14]

Through the technical assistance to Eco Fund, envisage following:
- creation of transparent procedures and capacity building for support programs for citizens, businesses and institutions;
- establishing and strengthening strategic partnerships with similar funds in the region, Europe and globally;
- establishing and strengthening strategic partnerships with financial institutions with the aim of securing financing under favorable conditions;
- creating the necessary infrastructure for performing business processes;
- creating the visual identity of the institution and presenting it to different audience.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Continue with the TA from other CO related interventions in regard to: - supporting regional dimension of cooperation involving Eco Fund - strengthening strategic partnerships with financial institutions with the aim of securing financing under favourable conditions - supporting the necessary infrastructure of Eco FUnd for performing business processes
[Added: 2020/09/14]
UNDP CO, UNDP RTA, GOM especially Eco-Fund and Eco-Fund Board 2020/12 Not Initiated
4. Recommendation:

Consider, for transport project and/ or transport initiatives going forward, opportunities and learnings from TCNTM: Consider rolling the several transport-related opportunities identified and lessons learned in TCNTM (as below) into in-progress design of major low-carbon transport project for Montenegro. For initiatives that can’t be rolled into this major project, consider other potential opportunities to pursue them.
(a) Consider including, for investment initiatives, the following: (i) priority (as already under discussion) - Podgorica low carbon bus system, low carbon inter-city transport and/or urban-rural transport, and more low carbon boat public transport; (ii) for discussion - low carbon cable car, marina in which docked boats are powered by RE45, low carbon airport, and low carbon cargo port.
Initial feedback indicates this has not been achieved elsewhere in world; and space limitations at marinas in Montenegro make it especially challenging.
(b) Design of investment initiatives may include “definite” priorities with public funding or public-private partnership (as in (a)(i)) and “aims” that either have mainly private sector funding or are otherwise especially challenging and that project will work towards but cannot guarantee (as in (a)(ii)). Inclusion of private sector will enable higher level of leverage of grant funds, which could make project more attractive to donors.
(c) Include private sector via public-private partnership in investment initiatives if funder requires funds be disbursed to public entity only. For low-carbon boat public transport, this may include public sector development of stations or provision of subsidies to local riders of boats. For cable car project, this may include direct investment via joint venture or investment in featured nearby grid-scale PV station. For marina powering, it may include state investment in RE system. If municipal buses or inter-city buses are to remain privately operated, it may include a scheme of public investment and leasing of buses to private sector. An alternative might be a joint venture between the public and private sectors for bus operations.
(d) Regarding the low-carbon boat public transport efforts by Bella Boka in Boka Bay, seriously consider every kind of GOM and relevant institutional support possible for implementation and scaling up. Address the challenge of lack of clear institutional and administrative responsibilities vis-à-vis this initiative and the serious burden and pressure thereby placed on the investor. Given that the service provided is year-round public transport (and not just tourist seasonal transport), it is especially important for GOM to seriously consider what it can do to make the public transport effort successful for the long-run.
(e) Ensure implementation, via investment initiatives, of more of the measures of polycentric SUMP developed by TCNTM. This may involve adoption of the SUMP as action plan by the involved cities and also incorporation at the national level into the relevant action plan.
(f) Include TA initiatives to build on work of TCNTM including: (i) TA support of Eco-Fund (to get it capitalized and operating). (ii) Development of the National E-Mobility Strategy that will focus on:
nation-wide EV charging infrastructure deployment, grid adjustment, e-mobility tariff system and incentive programs for transition to EVs in private (citizens and businesses) and public sector. (ii) Policies to support low carbon transport, such as VAT reduction or elimination for EVs. (iv) Initiatives to reduce CO2 emissions associated with international travel to Montenegro (thus addressing 86% of GHG emissions for Montenegro tourism). This may include work to ensure the lowest emissions possible of airlines flying to Montenegro (which might alternatively be a part of the Airport Project) and/or promotion/ assistance to alternative modes of international transport to Montenegro, such trains (instead of cars and planes), etc.
(g) Include cost and sourcing analysis, to ensure best deals for quality equipment are obtained for investment initiatives. As part of this work, reach out to quality best price bidders to ensure they participate in RFPs.

Management Response: [Added: 2020/09/14]

(1)The clear recommendations and guidelines deriving from this TE Report will be presented to the GCF design team with the aim to be integrated and reflect the actual needs for restructuring the concept and future project proposal.

(2) Thhorugh the ongoing work with the Eco Fund, CO will continue facilitating discussion among all relevant stakeholders in relation to creating favourable conditions for further support to development of sustainable transport solutions - MTMA, City of Podgorica, Cities of Cetinje, Kotor, Tivat, and HN, other cities, Bella Boka, Public Enterprise for Coastal Zone Management, Port of Bar, airport authorities, electricity generation and distribution company, Eco-fund, taxation authority, rail authority), marina operators, investors in large RE systems, potential investors in cable car, bus companies and other concerned private sector representatives.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Through the revision of GCF sustainable transport project include above recommendations, as relevant
[Added: 2020/09/14]
GCF design team, UNDP CO, UNDP RTA, GOM partners for transport project and transport initiatives 2020/12 Initiated History
5. Recommendation:

Pursue cooperation with large companies and stimulation of large investments: While both cooperation with large companies and stimulation of large investments are challenging to achieve, develop methods to create possibilities of success in these areas, while at the same time not putting “all the eggs” of project design into such initiatives. As for large companies, UNDP around the world has developed some successful partnerships that could be looked to as models. Large companies find the UNDP brand attractive and appreciate the environmental and social expertise. As for large investments, UNDP/ UNDP projects and their teams can play a facilitator/ deal maker role to stimulate the realization of large investments. Yet, it should be ensured that project M&E design does not measure success based on the achievement of specific “long-shot” targets, but instead includes indicators and targets that can be achieved by multiple paths, including sets of small or medium-sized initiatives.

Management Response: [Added: 2020/09/14]

Explore the possibility to recognize the incentives for green investments though the ongoing work on Roadmap for green incentives in key economic sectors.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Recognise the incentives for green investments though the ongoing work on Road-map for green incentives in key economic sectors
[Added: 2020/09/14]
UNDP CO 2020/09 Completed
6. Recommendation:

Building on lessons learned, assess benefits of addressing GHG emissions/ EE of accommodations in Montenegro and consider developing new strategy to do so: Recognize that eco-certification is not the best vehicle for addressing GHG emissions/ EE of accommodations, both because GHG ERs/ EE may not be improved much by eco-certification and because it is difficult to impact a large proportion of accommodations through eco-certification. Recognize also that because of seasonality of many accommodations and their already fairly good EE levels, it is difficult to get good payback from many classic EE measures for them. Recognize that accommodations very significantly make up 33.4% (2018) of tourism sector GHG emissions domestically, though only perhaps around 1.3% of national GHG emissions.46 Assess benefit of supporting accommodations in reducing GHG emissions, with comparison to rest of building sector, and preferred methods of achieving GHG ERs (cost-benefit analysis, including consideration of prevalence of EE and RE equipment already installed in accommodations sector). Depending on results of cost-benefit analysis, consider follow up initiative to connect accommodations with funding sources (Eco-Fund, Investment and Development Fund, other donor projects) for low interest loans for SWHs and PV systems, which appear to be the highest potential GHG ER area for accommodations as a whole.

Management Response: [Added: 2020/09/14]

In order to facilitate further GHG emission reduction measures, when creating annual incentive program of Eco Fund, the options to develop incentive specific incentives to support accommodations in purchase/ installation of PV systems and/or SWH systems will be discussed in details with the Eco Fund and the Ministry of Economy, as this is already seen as a high priority of both institutions.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Continue discussions with Eco fund and Ministry of Economy to develop incentive specific incentives to support accommodations in purchase/ installation of PV systems and/or SWH systems
[Added: 2020/09/14]
GOM – Eco-Fund, Ministry of Economy EE Directorate 2021/04 Initiated History
7. Recommendation:

Continue spatial planning related efforts to preserve green areas and, potentially, to promote low carbon cities: While spatial planning continues to be a difficult area for a
donors to work in, it presents an urgent and important need due to conversion of green areas for hotel development. UNDP may wish to consider creating further opportunities to support the preservation of green areas in places like Budva in the face of this continued, rapid building development. Ideally, UNDP may find an opportunity in the future to support incorporation of low-carbon and green area friendly development into spatial planning policy to promote low carbon cities in Montenegro. In the meantime, incremental steps for green area preservation may be taken.

Management Response: [Added: 2020/09/14]

In the design of GEF & project related to Mainstreaming the biodiversity in key sectors in Montenegro, tap into the area of mainstreaming the spatial planning. Namely, one of the objectives of the initiative - PIF “Biodiversity Mainstreaming into Sectoral Policies and Practices and Strengthened Protection of Biodiversity Hot-Spots in in Montenegro” is to provide inputs to the new Spatial Plan of Montenegro and provide it with a BD mainstreaming dimension. Through spatial planning instruments, the project should promote concrete solutions for valuable and threatened biodiversity conservation outside protected areas and further assist respective stakeholders with the elaboration and testing of management options for biodiversity conservation outside protected areas.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
In the design of GEF & project related to Mainstreaming the biodiversity in key sectors in Montenegro, tap into the area of mainstreaming the spatial planning
[Added: 2020/09/14]
UNDP CO, Budva and other municipalities, MSDT, urban planners, the general public 2020/11 Initiated
8. Recommendation:

Build on lessons of TCNTM to address high potential policy areas: (a) Learning from the good example of TCNTM, make policy work of future projects responsive to GOM needs. As such, project design should be flexible, not requiring support of specific policies, and instead focus on achievement of policies related to certain aims (e.g. policies that result in GHG ERs). (b) For CCM projects, focus on policies that may have the most climate benefits, such as transport sector policies. (c) To facilitate development of large-scale/ regional projects and to support Eco-Fund efforts to do so, consider supporting development of regional institutions and regional environmental protection projects, perhaps via environmental governance project. (As in Recommendation 2, inter-municipal cooperation is something that should be considered for all future initiatives, including various Eco-Fund projects and various UNDP projects. Here, in Recommendation 8, we are further suggesting that a specific UNDP project may be developed to pursue both establishment of the needed regional institutions that don’t yet exist and regional environmental projects. The latter is an area in which inter-municipal cooperation is particularly important, because areas such as waste management are in great need of economies of scale that cannot be offered by single municipality projects.)

Management Response: [Added: 2020/09/14]

Present the experiences and lessons learnt of LCT during the Green Days talks 2020, and through the panel on Low carbon tourism, with other regionally present organisations, start the discussions on the potential of scaling up the low carbon development initiatives in the priority sectors of the countries of the WB.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Present the experiences and lessons learnt of LCT during the Green Days talks 2020, and through the panel on Low carbon tourism, with other regionally present organisations, start the discussions on the potential of scaling up the low carbon development initiatives in the priority sectors of the countries of the WB
[Added: 2020/09/14]
UNDP CO 2020/07 Completed
9. Recommendation:

Learn from tourism sector inventory findings and adopt appropriate strategy to incorporate “low carbon tourism” into NDCs: Drop effort to get tourism sector GHG emissions included in national inventory annually. Yet, leverage work done in this area and TCNTM lessons to achieve effective inclusion of “low carbon tourism” theme in NDCs. Aim for inclusion in NDCs of projects that support low carbon tourism, but (per Recommendation 1 (A1) and Recommendation 2a (B1(a))) may be broader than tourism alone and thus bring the highest possible GHG ERs. In particular, consider including replication of LED street lighting projects and pursuit of transport projects (including improved public transport and EV uptake).

Management Response: [Added: 2020/09/14]

Provide the inputs in the final draft of the Third National Communication report which entails referring to and using recent data from the Tourism GHG Inventories.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Provide the inputs in the final draft of the Third National Communication report which entails referring to and using recent data from the Tourism GHG Inventories
[Added: 2020/09/14]
UNDP CO 2020/10 Completed
10. Recommendation:

Learn from experience of TCNTM’s awareness work, including both the benefits of having an awareness officer and the challenges of designing awareness indicators and surveys: (1) For other projects that have a challenging message to convey and/or strong need for ongoing awareness work, consider full time awareness officer to both design and implement awareness strategy, instead of intermittent awareness consultancies. (2) Develop more effective indicator design for awareness outcomes in future projects. Indicators should measure the kind of impact the awareness is targeting. Typically, this may include reaching large numbers of people via various methods and ensuring that the campaign or other awareness effort has a real impact on peoples’ thinking and/ or results in real learning by them. (3) If surveys are to be conducted to measure awareness results, emphasis should be put at baseline on a good survey design that can truly detect impact of the project’s awareness work. The same survey questions should be asked at baseline and EOP. The group of persons surveyed should have similar compositions at baseline and EOP.

Management Response: [Added: 2020/09/14]

(1) Present the key achievements of the Towards Carbon Neutral Tourism Project during the Green Days 2020 in an innovative manner though conveying a MESSAGE FOR LOW CARBON DEVELOPMENT FUTURE OF MONTENEGRO. It will serve as a headline for future awareness activities of CO Projects in the environment, energy, climate change portfolio.

(2) (3) In the future design of projects, where appropriate, envisage the survey at the beginning and at the end of project, in order to capture the progress over the project life time

Key Actions:

Key Action Responsible DueDate Status Comments Documents
(1) Present the key achievements of the Towards Carbon Neutral Tourism Project during the Green Days 2020 in an innovative manner though conveying a MESSAGE FOR LOW CARBON DEVELOPMENT FUTURE OF MONTENEGRO.
[Added: 2020/09/14]
UNDP CO 2020/12 Initiated
11. Recommendation:

Learn from TCNTM’s strengths in implementation: (1) For future projects (around the world), consider having, as members of project team, a strong coordinator for each outcome. This coordinator will actually take part in implementation of many of the outcome’s activities, thus reducing the need for contracts with outside consultants and companies and providing greater continuity and connection between activities. (2) For studies and reports prepared, ensure these are living documents by involving key stakeholders in the launch of the assignment, in follow up with the draft and its finalization, and in actual use of the product to stimulate action on the ideas contained.

Management Response: [Added: 2020/09/14]

1) In design of the new projects, apply the HR strategies able to reflect the competencies / skills required to fulfil the expert related tasks.
(2) Continue involving the stakeholders, through the Projects steering committees, in preparation, launch and follow up of studies and reports

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Present the findings of the evaluation to HR department and reiterate to PMs the importance of involvement of project stakeholders in accordance with PPM and RBM procedures.
[Added: 2020/09/14]
UNDP evaluationa nd reporting manager, HR department 2020/09 Completed

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