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Terminal evaluation of Growing Green Business project
Commissioning Unit: Montenegro
Evaluation Plan: 2017-2022
Evaluation Type: Project
Completion Date: 11/2021
Unit Responsible for providing Management Response: Montenegro
Documents Related to overall Management Response:  
1. Recommendation:

Recommendation 1 (to the Government of Montenegro and UNDP): Include as a part of awareness raising activities, additional presentations on the studies “Policy and incentive options for green businesses in Montenegro in agricultural, tourism and energy sectors” and ”Improvement of legislative and regulatory framework for the concept of ‘prosumers’ in Montenegro”.

Management Response: [Added: 2021/12/15]

Fully accepted.

These Studies were very important to the removal of policy and legislative barriers to green business in Montenegro, containing information relevant of the process of preparing future low carbon strategies. Thus, presentations should be aimed at awareness raising to a wider audience of decision makers.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The study “Policy and incentive options for green businesses in Montenegro in agricultural, tourism and energy sectors” will be an input for the preparation of the National Adaptation plan for identification of companies and sectors to be targeted by capacity assessment in the context of the adaptation and as guiding framework for development of the financial and resource mobilization strategy for National Adaptation Plan.
[Added: 2021/12/15] [Last Updated: 2022/05/30]
UNDP CO, NAP Project Team 2022/04 Completed The document used as an input for the cap assessment of the business community for the design of the climate adaptation policies development and implementation of measures The document currently in use for setting up of climate adaptation goals in tourism and agriculture sector. History
The study ”Improvement of legislative and regulatory framework for the concept of ‘prosumers’ in Montenegro” will be an input for creating recommendations for revision of the Law on building and spatial planning that has been initiated by the Government. In addition, the study recommendations will be the basis for the next phase of work in the context of prosumer concept development, e.g. assessing legal framework for enabling energy cooperatives, relaying on detailed analysis provided in the study
[Added: 2021/12/15] [Last Updated: 2022/10/18]
UNDP CO – NAP Project Team, Ministry of Ecology, Urbanism and Spatial Planning 2022/10 Completed The study “Policy and incentive options for green businesses in Montenegro in agricultural, tourism and energy sectors” recommendations and overall conclusions are used in presentations organised by National adaptation team during the implementation relevant for the 3rd component of the project and focused on the engagement with business sector. In addition the Study was shared and used in preparation of two project (projects value exceeding 20M USD), namely EU4 Green project and Adaptation to Climate Change and resilience in the Montenegrin mountain areas. History
2. Recommendation:

Recommendation 2 (to the Government of Montenegro and UNDP): Monitor post-project GHG emission reductions from projects supported by the Solar 3000+ project, IDF funds, Eco-Fund and other financing initiatives.

Management Response: [Added: 2021/12/15]

Fully accepted.

IDF and the Eco-Fund have their own internal GHG emission reduction monitoring systems resulting from their Public Calls for solar PV installations and electric cars. The GHG emission reduction monitoring systems for the Solar 3000+ project and other financing schemes has not yet been defined. The UNDP CO and the Government of Montenegro should work closely with the IDF, Eco-Fund, the Solar 3000+ and other financing schemes to ensure the GHG emission reduction monitoring systems to adhere to best practices and comply with standards for accuracy.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The Standard Letter of Agreement (SLoA) signed between Eco Fund and UNDP prescribes the obligation to report on GHG emissions reductions of all programme beneficiaries. The contract signed between the Eco Fund and beneficiaries stipulates the obligation of the Eco Fund to provide guidelines and templates for monitoring and reporting on GHG emissions reductions in the course of five years.
[Added: 2021/12/15]
UNDP CO – GGB Project Team Eco Fund 2021/12 Completed
The Project is providing technical assistance and targeted training to IDF and Eco Fund’s personnel focusing on technical aspects of green projects, energy and financial savings and CO2 emission avoidance calculation, monitoring and reporting
[Added: 2021/12/15]
UNDP CO – GGB Project Team 2021/11 Completed
The consultant is being hired to develop technical specification for the Eco Fund’s IT system that will allow for digitalization / automatization of GHG emissions reduction monitoring and reporting mechanisms. Once the tools are developed, they will be used for monitoring of the CO2 emission avoidance in the scope of the Solar 300+ and 500+ project, as Eco Fund is one of leading partners.
[Added: 2021/12/15] [Last Updated: 2022/05/31]
UNDP CO – GGB Project Team Eco Fund 2022/03 Completed Document uploaded , shared with all relevant stakeholders History
3. Recommendation:

Recommendation 3 (to UNDP and the Government of Montenegro): Green initiatives and climate actions must be continued with a special focus on improving their competitiveness within the business sector.

Management Response: [Added: 2021/12/15]

Fully accepted.

This would include:
• as most green investments are expensive, future support by donors and financing institutions is one of the key preconditions in the process of transition to green economy. This would include a focus on sustainable support for grants for the mentoring programme, concessional finance from donors and financial institutions, and grants for the Subsidy Programme of the Eco-Fund of green investments;
• future green projects should encompass credit lines and subsidies aimed at citizens, especially in the area of energy efficiency, which requires changes in the current framework;
• future subsidy programs for co-financing green projects should support more than 40% of the investment. While the Eco Fund suggests that the support to green investments be at least 50%, preferably 60%, the Government should consider this spike in subsidy levels to be only promotional. In other words, the Government should use this spike in subsidy levels to catalyse interest in a particular intervention such as solar PV installations or conversion of private vehicles to hybrid or electric vehicles (see Para 124), then reduce the subsidy rate when there is sufficient interest;
• future green projects should encompass introducing the emissions trading system for reduction of CO2 as well as technical assistance for operator’s capacity building;
• incorporate lessons learned from the Call for Proposals for the improvement of similar future programs to the current Eco-Fund and IDF programmes. For example, there needs to be simplified procedures in the legal and institutional framework that have created business barriers in the implementation of these green investments.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project is currently hiring a local expert, a representative of the industry directly involved in all the phases of the development of a ‘Prosumer’ with the aim to prepare a ‘Lessons learned’ paper (before the end of the project) to identify all the bottlenecks in all the phases of the process: administrative, institutional, infrastructural, etc. The document will produce recommendations and initiatives for changing the legal and institutional framework to remove identified barriers.
[Added: 2021/12/15] [Last Updated: 2022/01/13]
UNDP CO – GGB Project Team 2021/12 Completed The Report is finalized by the Consultant History
A consultant is being hired to develop technical specification for the Eco Fund’s IT system that will allow for exchange of data with relevant national and local public authorities, that would simplify the administrative procedure
[Added: 2021/12/15] [Last Updated: 2022/05/31]
UNDP CO – GGB Project Team, Eco Fund 2022/03 Completed Document uploaded , shared with all relevant stakeholders History
4. Recommendation:

Recommendation 4 (to UNDP and the Government of Montenegro): In E-vehicle program operated by the Eco-Fund, there should be more focus on vehicle owners who frequently use their vehicles.

Management Response: [Added: 2021/12/15]

Fully accepted.

The E-vehicle program operated by the Eco-Fund aims to convert existing individual and company petrol and diesel vehicles to electric or hybrid vehicles as mentioned in Para 114. The problem with this program is a focus on privately-owned vehicle owners who generally will be difficult to convert mainly due to problems of affordability. Focus should be on:
• corporate vehicle owners who frequently use their vehicles such as delivery companies and service vehicles. This would increase the success rate of vehicles conversions in the short-term while privately-owned vehicle owners decide to convert in larger numbers;
• vehicle owners who frequently use their vehicles (annual millage over 13,000 km) and would therefore be more willing to convert. Due to still low affordability by this class, increased subsidies (greater than 40%) should be considered for a year or 2 to catalyse and improve incentives to convert;
• potential owners of EV charging stations who should be offered subsidies.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The EV related specific recommendation have been shared with the Eco Fund, and will be shared with the Project Steering Committee, and other relevant institutions in Montenegro.
[Added: 2021/12/15] [Last Updated: 2022/01/13]
UNDP CO – GGB Project Team 2021/12 Completed Recommendations shared with Eco Fund, SC and other intuitions. History
Eco Fund is summarizing the lessons learned from the outcomes of the first E-vehicles support program with the aim to enable adequate redesign and better targeting of future clients. The findings will also be shared with relevant institutions.
[Added: 2021/12/15] [Last Updated: 2022/05/31]
Eco Fund UNDP CO GGB Project Team 2022/05 Completed Based on lessons learned, the Eco Fund revised the second Call for the support of development of prosumers https://www.eko-fond.me/me/javni-konkursi/javni-pozivi/ History
The EV related recommendations will be presented to the CO team working on the development of the concept note for the Low Carbon Transport Project to be funded by the Green Climate Fund (GCF) with the aim to be integrated in the concept and future project proposal
[Added: 2021/12/15]
UNDP CO GGB Project Team UNDP CO – GCF team 2021/12 Completed
5. Recommendation:

Recommendation 5 (to the Government of Montenegro and UNDP): Continually update the framework for energy efficiency and renewable energy sources.

Management Response: [Added: 2021/12/15]

Fully accepted.

This would be to eliminate outdated technologies, reduce infrastructural barriers for installations, and have stronger involvement of line ministries.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project is hiring a local expert, a representative of the industry directly involved in all the phases of the development of a Prosumer who will prepare a ‘Lessons learned’ paper before the end of the project with the aim to identify all the bottlenecks in all the phases of the process: administrative, institutional, infrastructural, etc. The document will provide recommendations for changing the legal and institutional framework and will be shared with the Ministry of Capital Investments responsible for the legal framework regulating the use of RES and energy efficiency
[Added: 2021/12/15] [Last Updated: 2022/01/13]
UNDP CO – GGB Project Team 2021/12 Completed The Report is finalized by the Consultant History
The project has already supported drafting of two Rulebooks deriving from the Law on Efficient use of Energy, regulating the labelling, import and use of refrigerating equipment in line with the highest EU standards, and has engaged a consultant to draft two additional rulebooks (that will replace current five rulebooks) that are regulating energy labelling of light sources and separate control gears, with the aim to eliminate inefficient technology from the market of Montenegro.
[Added: 2021/12/15] [Last Updated: 2022/01/13]
UNDP CO GGB Project Team 2021/12 Completed The Rulebooks drafted and ready for public consultations History

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