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a result of an outdated and inefficient energy sector;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.
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.
June
2007
