Overview of the Clima East Package Mr Zsolt Lengyel, Team Leader & Key Expert 1 .

1. Overview of the Clima East Package Mr Zsolt Lengyel, Team Leader & Key Expert 1. 8 April 2014, Moscow

2. Content of presentation • Context for mitigation & adaptation • Project background • Implementing consortium • Key Experts and Offices • Approach • Objectives • Result areas • Activities in Russia • Timeline • Contacts

3. 1) The context – mitigation & adaptation (1) • A highlydynamiccontext • A strategic vision and capacityis essential, to maximise the benefits and to minimise the costs • Planning and sequencing of strategic actions is essential • Global warmingisaccelerating, CO2 concentrationintheatmospherereached 400 ppmin May 2013 • Strongbilateral, regional and international co-operationneeded

4. 1) The context – mitigation & adaptation (2) To adapt or to mitigate: is that really a valid question? Mitigation and adaptation are both necessary and complementary. We need to increase mitigation efforts. If the 2°C target is missed, adaptation increasingly costly. We need to adapt.

5. 1) The context – mitigation & adaptation (3) Adaptation is inevitable (delayed impact of emissions). Adaptation is cheaper 1€ invested in flood protection saves 6€ damage costs. Postponed adaptation and maladaptation will lead to higher damage costs. ≥ 100 bn/year by 2020; 250 bn/year by 2050 for the EU

6. 1) The context – mitigation & adaptation (2)

7. ArkhipIvanovichKuindzhi /Архи́п Ива́нович Куи́нджи; (January 27, 1842(?) – July 24, 1910)

8. 2) BACKGROUND INFORMATION Beneficiary countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Russian Federation and Ukraine (partner countries – PCs) Project time frame: October 2012 – October 2016 Project budget: approx. EUR 7 million* Funding authority: The European Commission (EC), DEVCO * Part of a larger 'Clima East project' package, containing pilot projects on ecosystems based approaches to climate change (EUR 11 million) implemented by UNDP

9. Pilot projects on ecosystems based approaches to climate change implemented by UNDP (11 million EUR) - The aim: To show through pilot projects the feasibility of ecosystem-based approaches to climate change, meaning that intact ecosystems such as peatlands, permafrost landscapes, boreal forests and pasture land can have a strong and cost-efficient positive effect both on climate change mitigation and adaptation Component 1: Conservation & SM of peatlands in Russia, Ukraine, and Belarus to minimize carbon emissions and help ecosystems to adapt to CC, while contributing to the overall mitigation and adaptation effort Component 2:Protection & restoration of forest and peatland permafrost carbon pools in Komi Republic and Nenetsky Autonomous Okrug Component 3: SM of pastures in the Caucasus (Armenia, Azerbaijan, Georgia) to demonstrate CC mitigation and adaptation benefits and dividends for local communities Component 4: SM of pastures & community forests in Moldova’s first National Park Orhei to demonstrate climate change mitigation and adaptation benefits and dividends for local communities Global coordination , management and knowledge sharing component

10. 3) THE CONSORTIUM HTSPE • Project management & technical assistance • Sectors include Natural Resources, Governance and Environment • Strong regional experience Ecorys • Energy, Climate Change, Low Carbon IIASA • Land Use, Applied Research Milieu • Policy and Legal Ricardo-AEA • Climate Change, Energy, Government

11. 4) EXPERTS AND OFFICES • 4 Key Experts - Team Leader, Expert on Emissions Trading and 2 Regional Coordinators • Non-key experts (500 mandays) • Expert Facility (EF) (1 million EUR) • Project Office in Brussels • Two satellite offices: • Moscow (for Belarus, Russian Federation , Ukraine and Moldova) • Tbilisi (for Armenia, Azerbaijan, and Georgia)

12. 4) Key Experts • Team Leader and Key Expert 1: Zsolt LengyelBased in Brussels (zsolt.lengyel@climaeast.eu) • Key Expert 2: Marzena Chodor (marzena.chodor@climaeast.eu) Based in Brussels • Key Expert 3: Mikhail Kozeltsev (mikhail.kozeltsev@climaeast.eu) Based in Moscow • Key Expert 4: Medea Inashvili • (medea.inashvili@climaeast.eu) Based in Tbilisi • Help desk and general inquiries: Marina Zolotcov (marina.zolotcov@climaeast.eu) Based in Brussels info@climaeast.eu

13. 5) APPROACH (1) • Practical outputs and observable benefits for the national partners and stakeholders • Added value from the regional scope of Clima East • Learning from Partner Countries and the European Union, contributing to coordinated efforts to tackle climate change challenges, where possible

14. 5) APPROACH (2) Demand driven structure– built-in flexibility • Responsive to beneficiary countries’ requirements • Focus on gaps and additionality of activities, synergy with other donors • Following the emerging needs from the internationalnegotiations on theimplementation of DohaClimateGateway and 2015 agreement • Expert Facility

15. 5) APPROACH (3) National focus – seeking regional synergies and mutual benefits • Pooling experience and sharing ideas and approaches • Transfer of best practice from EU but also within region Accessibility – both to documentation and to expertise • Brussels base as bridge to EU expertise • High quality website, visibility and events to maintain momentum • Help desk

16. 6) OVERALL OBJECTIVE The overall objective of Clima East is to support PCs so that they are better equipped for greenhouse-gas emission reductions and better prepared to deal with climate change impacts

17. 7) ACTIVITY STRUCTURING – RESULT AREAS • Increased understanding of the EU climate and energy acquis and the 20/20/20 agenda • Responsible public institutions will competently address the Kyoto and post-Kyoto regime under the UNFCCC, and (for Annex I) be strengthened to comply with regulations • State-of-the-art national climate change mitigation and adaptation policies developed, fine-tuned and implemented • Increased capacity for climate change vulnerability and impact assessments and increased capacity for adaptation planning • National and/or regional Emissions Trading Schemes prepared and started • Progress made in elaboration of low carbon development strategies (expected primarily in Armenia, Azerbaijan, Georgia, and Moldova)

18. Shared interest core (C) Cross-cutting (X) Potential Expert Facility activity (EF) Clima East Activity Matrix – 2014 Regional RA 3,5 C4-MRV-Large Industrial Sectors and Emitters BY, UA, RUS Mitigation RA = Result Area number RA 3,5 C5 -GHG Reduction Economic Instruments BY, UA, RUS EF1-LULUCF Inventory Review and Improvement AZ,UA EF3-Climate policy elements UA RA 2,3,6 C1- Intended national contributions & 2020/2050 targets AM, AZ, BY, GE, MD EF4- Economic GHG regulation / efficency of GHG measures RUS EF2-Accreditation of PMU for CC finance disbursement AM RA 1-6 C3 Climate Action Mainstreaming -Supporting National Bodies AM, AZ, GE, EF7-EU Dialogue ( ETS, Fuel quality) MD EF6-VulnerabilityModelling and Software AZ, BY, GE, MD RA 1-6 C2-COP Negotiator Consultations & Workshops AM, AZ, BY, GE, MD, UA EF5National Adaptation Planning for agriculture sector BY, Workplan Expert Facility Other Expert Facility Applications submitted and approved AM, AZ, BY, GE, MD, UA , RUS X1-Programme Development & Planning X2-3 Website & Helpdesk X9-Clima East Review Conferences (2015-16 only) X11-Donor Co-ordination & signposting Adaptation X4-Expert Facility Management X5-Partner Country Beneficiary & Stakeholder Engagement X6-Lessons learned & Results Dissemination X7-Monitoring & Evaluation X8-Reporting to EC & Steering Committee AM – Armenia MD – Moldova AZ – Azerbaijan UA – Ukraine BY – Belarus RUS – Russia GE – Georgia

19. 8) Activities (1) – Russia • Addressing interactions between energy and environment policies and measures in the light of climate challenge given that the energy sector provides the majority of GHG emissions. • Assistance in the realization of the Plan of Activities aimed on implementation of the Decree of the President of the RF # 752 by advising sector specific economic instruments for GHG emissions reduction; helping in sectoral target setting and introducing the MRV aspect.

20. 8) Activities (2) – Russia • One set of actions will concentrate on making the most relevant documentation on EU climate and energy policy and legislation available on the Clima East website, along with suitable commentary and updates from the Team. • The second is to implement a Climate Policy Roadshow, visiting each of the Partner Countries • In later years, the Project will aim to deepen awareness and exchange of approaches between the EU and Russia on specific issues

21. 8) Activities (3) – Russia • The Project will support the domestic ETS approach on sectoral and regional levels and will undertake a feasibility and capacity gap assessment for ETS. • From Year 1, it will provide ETS and MRV training and capacity building, and comparison of different schemes (e.g. EU and Australian models, and work on-going to link them). It also aims to provide guidance in future years on fostering private sector engagement through pilot schemes, in particular regions and/or sectors, as a preparatory activity for a potential ETS.

22. 9) Timeline: Where are we now? • Mobilisation of keyexperts • Consultations with stakeholders • Seven national work programmes • Mobilisation plan for non-key experts • ExpertFacility operational • Visibility plan

23. 10) Timeline: Where are we going? • Implementation phase- until October 2016 • We will continue to listen • Annual workplans to be completed and approved

24. 11) How to contact us The project team can be contacted atpersonal e-mail addresses and : info@climaeast.eu Clima East Office c/o Milieu Ltd Rue Blanche n 15 1050 Brussels, Belgium The full project website is available in English and Russian: www.climaeast.eu