Building Capacity to Access Carbon Finance in Albania (June 2007 - December 2009)

The project will help the Government of Albania to develop its public and private sector capacities to access carbon finance in Albania by (i) creating a legal and institutional framework for carbon finance and (ii) building in-country capacities for identification, implementation of and resource mobilization for the greenhouse gas reduction projects eligible for Clean Development Mechanism and other carbon market mechanisms.

To date there has been only limited engagement in Clean Development Mechanism (CDM) activities in this country. However, Albania has much potential for the cost-effective reduction of greenhouse gas (GHG) emissions which are generated as a result of an outdated and inefficient energy sector; abundant, but relatively unexploited sources of renewable energy (solar and hydro); and the presence of several GHG-rich industries (e.g. aluminum). Also, the country’s proximity to the European Union, electricity interconnectedness with European grids and prospects for the EU integration could create market advantages if Albania increases capacity to deliver on CDM projects.In Albania, the Designated National Authority (DNA) is the Ministry of Environment, Forests and Water Administration (MoEFWA) which is the National Body responsible for national environmental management and policy. The MoEFWA nominated the UNDP Climate Change Umbrella Unit to support the MoEFWA due to the Unit’s experience in serving as a National Focal Point to the UNFCCC and Kyoto Protocol treaties and the assistance the Unit provided to the MoEWFA in implementation of the UNFCCC and Kyoto Protocol. In addition, the Government will ensure effective cooperation with other relevant Ministries. The project has been developed in response to the request of the Government of Albania for technical assistance in accessing CDM financing. It forms an integral part of UNDP’s program on Kyoto Protocol capacity building in Eastern Europe and CIS and is based on the capacity development needs and CDM access barriers which were identified in consultation with key regional public and private sector stakeholders. The project also reflects upon the lessons learned as reported in the recent UNDP Global CDM Assessment Report. The project builds on UNDP’s previous and on-going experience and technical assistance provided to the Government of Albania on formulation and implementation of a wide range of projects in the area of rural livelihoods, environmental conservation and climate change.

Output 1: Creating a national legal and institutional framework for carbon finance. Activity 1.1: Strengthening the DNA’s capacity; Activity 1.2: Legalization of carbon transaction in domestic context; Output 2: Building in-country capacities for identification and implementation of projects eligible for CDM and other carbon market mechanisms. Activity 2.1: Assessment of the CDM potential in key sectors; Activity 2.2: Building capacities for legal and economic appraisal of CDM projects; Activity 2.3: Technical assistance for CDM pipeline development; Output 3: Raising stakeholder awareness of the CDM mechanism and its benefits and disseminating the relevant information. Activity 3.1: Develop outreach materials to support DNA outreach activities; Activity 3.2: Create a CDM web page; Activity 3.3: Dissemination of useful information to stakeholders on CDM related issues

Government of Albania (Ministry of Environment, Forestry and Water Administration)

UNDP Bratislava Regional Centre, UNDP Energy Environment Group (EEG) and MDG Carbon Facility (New York), Sectoral ministries, NGOs, private sector, etc.

National Execution by the Ministry of Environment, Forestry and Water Administration through the Climate Change Umbrella Program

Mirela Kamberi
Project Manager
Tel/Fax: (+355) 4 2271941
Mobile: (+355) 682072314
E-mail: mkamberi@icc-al.org / mirela.kamberi@undp.org