Content of presentation

1. National Communication exercise_a tool for mainstreaming climate change into national policy and planing Albania case Ermira Fida, MBA National Manager; Climate Change Unit Bonn, 12 May 2005

2. Content of presentation • Country context • Albania and UNFCCC • Highlights from INC • Inventory, abatement, V&A • Efforts to mainstreaming • National energy strategy • Energy efficiency, RES, GHG reduction • The way forward

3. Country context • Surface Area 28,748 km² • Population of 3,3 million (1999). • Since 1998 the country has seen steady progress. • As of 2003 GDP growth average 7% per year, • Inflation at 2-4%, with stable currency • However: • 46.6% of the population is below the poverty line of $2 per day • 53% of the population lives off the land. • High levels of migration (15% is abroad) and unemployment. • NSSED / PRSP • In line with MDGs • Aims at poverty reduction • Address environment protection

4. Albania and UNFCCC & KP • Joined the UNFCCC in January 1995 • Non-Annex I Party to the UNFCCC • Joined Kyoto Protocol • December 2004: Law on ratification of KP from RoA”” • 1 April 2005: Instruments of ratification • 30 June 2005: Albania becomes a Party to KP • INC submitted and launched at COP8, India. (10/CP2) • GHG inventory • GHG mitigation analysis • Vulnerability & Adaptation • National Climate Change Action Plan – part of NEAP • Technology Needs Assessment completed • Mitigation technologies • Adaptation technologies • SNC started on April 2005 (17/CP8)

5. INC- highlights from GHG inventory • [7061.45 Gg] CO2 eqv emissions total for 1994 • CO2 -themain GHG – 65% • Energysector –the main source category-44%

6. GHG inventory: main indicators CO2/Capita CO2/GDP

7. Electricity generation (GWh)

8. Household Industry 4500 4250 Service Agriculture 4000 Others 3750 3500 3250 3000 2750 2500 2250 2000 1750 1500 1250 1000 750 500 250 0 Electricity consumption (ktoe)

9. Greece-90 2.500 2.375 Greece-95 2.250 Greece-00 2.125 Croatia-00 2.000 1.875 Croatia-95 1.750 Croatia-90 1.625 1.500 1.375 1.250 1.125 1.000 0.875 0.750 0.625 Albania-90 0.500 0.375 Albania-95 0.250 Albania-00 0.125 energy intensity (toe/1000 USD GDP) 0.000 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 Energy intensity High intensity & Low consumption / capita • Albania industry - very energy intensive • Low energy prices • Low energy consumption per capita • Low levels of economic activity

10. Industry LUCF 4% 13% Energy & transport 83% INC- highlights from GHG abatement Gg Baseline scenario CO2 eqv., emissions total 2020: 37,653 Gg Baseline scenario: CO2 emissions in 2020: 22, 562 Gg

11. INC- highlights from GHG abatement CO2 from fuel combustion • Industry (35%) • manufacturing • construction • Transport (27%) • Road • Energy Industries (20%) • Oil (87%) • Coal (11%)

12. INC- GHG abatement measures • End-use energy efficiency improvement • Supply-use energy efficiency improvement • Renewable energy • Fuel switching • Agriculture • Industrial processes • Solvent and other product use • Waste management • Sinks (aforestation and reforestation)

13. INC- highlights from GHG abatement GHG reduction potential abatement (million tons of CO2 eqv) - Energy and Transport

14. INC- highlights from GHG abatement

15. INC- highlights from GHG abatement Marginal cost of proposed measures

16. INC-Adaptation Impact to water resources electricity generation – alternative scenario

17. Efforts in mainstreaming… • National Communication to UNFCCC not ONLY a reporting exercise but a tool for mainstreaming and programming as well: • Major findings from INC/TNA have been addressed to the National Energy Strategy that complements NSSED/PRSP • Mobilizing resources to funding of priority technologies • Energy efficiency (buildings) • Solar panels –HWS • Adaptation project (Drini River Delta) • Raise awareness among policy makers on climate change • Kyoto Protocol ratification

18. National Strategy of Energy (NSE) Objectives: • Establish of an efficient energy sector from the financial & technical point of view • Increase of the security and reliability of the energy supply in general and electricity in particular, in national and regional levels • Establish of an effective institutional and regulatory framework • Optimization of the supply system with energy sources based on the least cost planning principle and minimal environmental pollution

19. NES- Energy saving scenario 850 3600 Ktoe 800 3400 Energy Savings in Agriculture 3200 23% 750 EnergySavings in Transport Energy Savings in Industry 3000 700 Energy Savings in Service 2800 650 Energy Savings in Households 2600 600 2400 550 2200 500 2000 450 1800 400 1600 350 Energy Savings 1400 300 Pasive Scenario 1200 250 Active Scenario 1000 200 800 150 600 100 400 50 200 0 0

20. NES- Renewable energy supply

21. NES-GHG reduction 10500 10000 Reduction of CO2 equivalent 9500 Passive 9000 4 million CO2 eqv 8500 Active 8000 7500 7000 6500 6000 5500 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0

22. NES-investments needed

23. Energy Efficiency Law • The aim of this law is to create the legal framework required for the promotion and improvement of the efficient utilization of energy in Albania with a minimal impact to the environment • Law addresses: • National Energy Efficiency Policy • Objectives of Energy Efficiency Promotion • Local Energy Offices • Labeling of Electric Appliances • Energy Audits Responsibilities of the energy auditor and of persons subject of the audit • Licensing of Energy Auditing • Energy Efficiency Fund (sources and administration of fund) • Activities funded by the Energy Efficiency Fund

24. The way forward…. • Continue with GHG abatement • More focus on adaptation issues • Coastal zone • Water resources and their impact to hydro electricity generation • Public awareness • Engage public sector and civil society • Resource mobilization • Energy efficiency • Renewable energy • CDM

25. Thank you!