Programmatic Framework for Energy Efficiency in India GEF National Dialogue Workshop

1. Programmatic Framework for Energy Efficiency in India GEF National Dialogue Workshop Bhubaneshwar, 31st October 2007 Report of the Working Group On Climate Change

2. Sustainable Urban Transport • The objective of the project would be to take such initiatives that would have a significant impact on the emission of GHG from the transport sector in urban areas, without adversely affecting the mobility and accessibility needs of the urban population. At the same time the initiatives would: • Reduce the existing levels of congestion • Reduce the impact of motor vehicles on urban air quality • Improve road safety, and • Foster the use of sustainable technologies that minimise the energy consumption in urban transport • GEF Resources: $25 million • Total Project Cost: $350 million

3. Resource Allocation under EE Programmatic Approach Strategy Component IA GEF Cofinancing Resources • Building Energy WB $7m $95mEfficiency UNDP $6m $12m • Designated WB $12m $30mConsumers & SMEs UNDP $6m $30m UNIDO $8m $26m • Institutional WB $1m $2m TOTAL $40m $195m

4. Chiller Energy Efficiency Project- World Bank • CO2 equivalent emission reduction from both energy efficiency and reduction in losses of refrigerant gas. • Number of Chiller conversions • Quantity of CFC demand permanently eliminated • Chiller owners aware of the life cycle approach to decision making; • Decision makers include lifecycle approach in developing regulatory and policy frameworks • Co-financing tied up with commercial banks by WB

5. Energy Efficiency Improvements in Commercial Buildings- UNDP • Capacities of Building Departments at centre, state, and municipal levels enhanced • Compliance procedures formulated • Specific training courses for, architects/design professionals, building material suppliers, builders/contractors/developers • Courses incorporated at vocational training institutes like SPA, NID • Information disseminated and awareness on life cycle cost-benefit and return on investments for ECBC compliance • Development of model buildings under public-private partnership in 5 climatic zones • Availability of energy-efficient materials and equipment • Administration and enforcement structure of building codes • Monitoring and evaluation • Rebate/ tariff discount schemes with utilities • Financing schemes designed with commercial banks for investors to comply with ECBC • Compile and disseminate information on EE financing schemes • Co-financing from BEE and other stakeholders

6. Improving Energy Efficiency in the Indian Railways system- UNDP • Training of Railway technical staff and testing house staff for measurement and calibration of the equipments • Support the Center of Excellence • Information on technology status and best operating practices compiled for Lighting, EE Pump, Power Devices, Green Building, HVAC, DG Set, Sensors and Automatic Metering of Energy • Implementation of energy audit procedures for each railway operation • Evolving internal incentives scheme for implementing EE • Piloting and Demonstrating tech./ measures in EE Rolling Stock, Static installation, Workshop and Production Facilities • Identify international best practice from Japan, Germany France and others • Facilitate dissemination of knowledge between the Center of Excellence and similar institutes abroad • Co-financing from the budget of Ministry of Railways

7. Energy Efficiency Improvements in Small and Medium Enterprise (SME) Clusters- UNIDO • Situation Analysis for clusters. • Preparation of manuals for all clusters detailing technology trends, consumption, BoPs. • Energy use and technology audits conducted in identified pilot clusters/units • Cost benefit analysis carried out • Bankable DPRs developed • Institutionalization of capacity building • Reduction in GHG emissions attributable to improvements in SME energy efficiency • SME specific training developed and conducted for experts • Through Experts’ workshop, Dissemination workshops • Co-financing from MSME and BEE

8. Financing EE in SMEs- World Bank • Increased project appraisal capability for lending institutions/banks. • Implementation of innovative financing schemes (i.e. partial risk guarantee coverage) facilitated • Financing EE technology replications • Programme knowledge sharing on results • Reduction in GHG emissions attributable to improvements in SME energy efficiency • Co-financing from commercial banks and BEE (for capacity building element)

9. Institutional - World Bank • Review of project and design and implementation processes at initiation and on an annual basis • Monitoring of deliverables in specific projects • Mid term evaluation • Redesign and reprioritization based on evaluation • Assessment of direct and indirect impact on carbon emissions • Compilation and dissemination of best practices • Co-financing from BEE

10. New Project Ideas • Adaptation projects for climate change may not be available under GEF Trust, but may be accessed from the Special Climate Change Fund controlled by GEF -(taking off from the 1st NDI) • Proposal by the Government of Gujarat to support experiments for impact assessment of climate change on the yield of foodgrains (wheat/ rice) and the possibility of sustaining production – estimated amount of $ 10 million • Need to take up projects to control methane emissions in agricultural operations/ cattle - technologies are available • GEF projects for agriculture and allied sectors need to be developed such as energy efficiency improvements in agricultural pumpsets

11. New Project Ideas (contd.) • Proposal for growing of Jetropha in clusters of 5-10 villages alongwith oil extraction for bio-diesel project - Govt. of Gujarat- would need to follow evolving GEF strategy on bio-fuels • Proposal for a renewable energy distributed power generation project in a rural area that could increase wealth and empower the community – WII would need to conform to GEF strategy (priorities 3 and 4) • Underground coal gasification should be developed as a medium term project • R&D projects on solar energy not implemented after sanction- not recommended

12. Recommendations • Strong endorsement of the programmatic approach developed for EE and Sustainable Transport • GEF resources would be co-financing major government programmes (and not vice-versa) • In cases like alternative transport proposals for major cities, the GEF grant being a small proportion of the overall project cost ($25 m out of $350 m) approval of GEF may be accelerated once the overall project is approved • Projects worth $100 million in total may be taken up for development to ensure that any slippage on the projects can be made up • Agricultural sector projects may be taken up on a priority basis because of the benefits that would accrue to the majority of population.