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Recent GIS Developments in Ukraine. Olha Semkiv Budapest April 25, 2008. Outline. AAU country ratings Eligibility status – Ukraine The National Environmental Investment Agency GIS procedures Selection criteria for GIS projects AAU price floor cancelled New DFP under JI mechanism.

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recent gis developments in ukraine

Recent GIS Developments in Ukraine

Olha Semkiv

BudapestApril 25, 2008

outline
Outline
  • AAU country ratings
  • Eligibility status – Ukraine
  • The National Environmental Investment Agency
    • GIS procedures
    • Selection criteria for GIS projects
    • AAU price floor cancelled
    • New DFP under JI mechanism
what is a green investment scheme
What is a Green Investment Scheme?
  • A spin-off of International Emissions Trading under Article 17
  • Trading of AAUs
  • Proceeds are invested by seller country into “greening”
    • Emission reductions
    • Pollution prevention
    • Environmental activities
  • No UNFCCC/ Kyoto rules apply
    • Other than AAU trading rules (Modalities for Article 17)
  • Sale of government property to another government or private entity
aau host country ratings april 2008
AAU host country ratings (April 2008)

JI rating (previous)

Country

AAU rating

JI rating

BBB+

1

Ukraine

BBB

(1)

BBB+

2

Hungary

BB

BB+

(4)

BB

3

Czech Rep

BB

(7)

BB

BB

4

Romania

BB-

(2)

BBB

BBB+

5

Poland

BB-

BB

(8)

BB

6

Russia

B

(3)

BB+

BB+

7

Estonia

CCC+

BB

(9)

BB-

8

(5)

BB

Bulgaria

CCC+

BB

9

Belarus

CCC-

(10)

CC+

CC+

10

New Zealand

-

(6)

BB

BB+

eligibility
Eligibility
  • Ukraine is to become eligible on 29 April 2008
  • Initial review report published in December 2007
  • Assigned Amount set at 4,604 Mt CO2e
  • Commitment period reserve is 2,059 MtCO2e
  • Review team confirmed that Ukraine complied with the requirements of the Kyoto Protocol and the CMP decisions
  • Recommendations:
    • Maintain the operational functions of its national system
    • Maintain and enhance the existing inter-institutional and inter-agency cooperation andresponsibilities for inventory submission
the national environmental investment agency neia
The National Environmental Investment Agency (NEIA)
  • Established by the Governmental order in May 2007 (right before the parliamentary crisis in Ukraine)
  • Deals with GIS development and implementation
    • Draft regulations have been developed on ERU transfer and GIS
    • Negotiations on ‘greening’ AAUs started
    • Testing of the national registry completed in October 2007
    • Change of Government - change of management
aau eru price floor
AAU/ERU price floor
  • Set by the Tymoshenko’s Government in January 2008
    • To prevent accusations of corruption in JI and GIS
    • To be reviewed on a quarterly basis
    • Draft methodology developed by the NEIA
    • Intentionally to be set at the low level
  • THE DECREE REVOKED

On 17 April 2008

gis procedures the government s decree no 221
GIS Procedures - the government’s decree No 221
  • The NEIA assigned as a focal point for GIS project consideration/approval/monitoring
  • Application with determination report to be submitted
    • The NEIA accredits independent entities
    • Preliminary selection by interdepartmental working group
  • The projects are approved according to the conditions of international agreements on AAU transfers
    • Buyer can choose the project types
  • The NEIA selects the project managers/independent entities etc.
to be approved to be improved
To be approved… To be improved…
  • Procedures for IEs accreditation
    • Criteria for selection
    • Timeframe
  • The Inter-Departmental working group
    • Composition and level of representatives
    • Timing for project consideration
  • Criteria for a GIS project selection (open for public comments)
  • Approach to financial incentives (soft loans, grants…)
  • Clear rules for tenders
process of target financing of gis projects in ukraine
Process of target financing of GIS projects in Ukraine*

The draft of the CMU’s Decree “On accreditation of independent companies for checking eligibility and monitoring of GIS projects” is under development by the NEIA. The draft is to be submitted to the Ministry of Environment for agreement.

Inclusion to the State Budget of Ukraine

Development of the budget program

Target environmental projects

Determination of projects eligibility

Enterprises of Ukraine

NEIA

Target financing of

projects

BUDGET OF UKRAINE

NEIA

Independent monitoring of projects

The graph is taken from the Mr. Bebeshko’s presentation to the Parliament of Ukraine, April 2008

gis project pipeline
GIS project pipeline
  • > 100 projects submitted to the NAIE
  • The pipeline to be reviewed for the potential JI projects
  • Priority for the year 2008 – ‘hard greening’
  • Sectors:
    • Housing and public utilities;
    • Reconstruction of district heating systems;
    • Forestry
  • In the 2009-12 period – ‘soft greening’ (up to 25 per cents from the AAU proceeds to the state budget)
  • The Govt submitted to the Parliament an amendment to the state budget law (2008)
    • UAH 50m (app USD 10 m) income form the AAU trading
    • Administrator – the NAIE
the neia ji and gis
The NEIA: JI and GIS
  • The Government’s decree from 17 April 2008 (No 392)
    • The NEIA assigned as a Designated Focal Point
    • The Ministry of Environment is to devolve the JI project data base, national registry, and national inventory to the Agency in two weeks
  • The NEIA coordinates both Kyoto mechanisms
    • Easy switch in between
    • Lack of institutional memory
    • Time for recruitment and development of institutional capacities
    • Improvements of existing and developing regulations
summary
Summary
  • The Agency now coordinates both JI and GIS
  • Ukraine is to become eligible on 29 April 2008
  • 1,200 million AAUs are offered under the green AAU trading
  • Govt aims for a pilot deal to be signed in May 2008
  • The legislation exists, but needs to be improved
  • The price floor cancelled
slide18

Thank you!

Olha Semkiv, Point Carbon Kiev

[email protected]

+380 50 132 0161

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