This project is funded by the European Union Contract No. ENPI 2012/309-311/EuropAid/132630/C/SER/MULTI Lebanon Report Donors and other Funding Initiatives in the Areas of Sustainable Development at the Local Level
Authors: Ricardo Khoury (ELARD) Scientific Coordinators: Naguib Amin (Team Leader CES-MED), Serge Yazigi (Key Expert CES-MED, Mashreq region) Principal Reviewer Cover and layout design : H.E. Judge Omar Hamze, General Director of Local Administrations & Councils at the Ministry of Interior & Municipalities (National Focal Point CES-MED) and Eng. Majid Hachem, General Directorate of Local Administrations & Councils at the Ministry of Interior & Municipalities With special thanks for review and contributions from: Alexandra Papadopoulou
EuropeAid/132630/C/SER/Multi CLEANER ENERGY SAVING MEDITERRANEAN CITIES Contract No ENPI 2012/309-311 REPORT Donors and Funding Initiatives in the Areas of Sustainable development at the Local Level Ricardo Khoury October, 2014 Disclaimer. The content of this report does not reflect the official opinion of the European Union. Responsibility for the information and views expressed lies entirely with the author(s). This project is funded by The European Union Implemented by a Consortium led by Hulla & Co. Human Dynamics KG
HULLA & CO HUMAN DYNAMICS KG in consortium with PESCARES Italy, HCL Group Centre for European Policy Studies (CEPS) Associated Consulting Engineers (ACE) Institute of Communications and Computer Systems of the National Technical University of Athens The Assembly of European Regions (AER) The EuroMed Cities Network Page 2
Table of Contents LIST OF ACRONYMS... 4 1. INTRODUCTION... 5 2. METHODOLOGY... 6 3. POTENTIAL SOURCES OF FINANCIAL AND TECHNICAL SUPPORT... 7 4. SUMMARY AND RECOMMENDATIONS... 12 ANNE I PROJECT TWINNING... 14 ANNE II UPFI PROJECTS IN LEBANON... 15 ANNE III DONORS MATRI... 16 Page 3
LIST OF ACRONYMS AFESD CEPF CES-MED CIM CoM CTI- PFAN EIB ELARD ENPI EU FFEM GEEREF GEF GFDRR GTZ ICF IDRC MDG-F MIF NEFCO NGO NORAD OFID PPIAF SCCF SEAP SIDA UK-ICF UNDP UNEP UNESCO UN-ESCWA UNIDO USAID USEPA WB The Arab Fund for Economic and Social Development Critical Ecosystem Partnership Fund Cleaner Energy Saving Mediterranean Cities Project Center for International Migration and Development Covenant of Mayors Climate Technology Initiative-Private Financing Advisory Network European Investment Bank Earth Link and Advanced Resources Development European Neighborhood and Partnership Instrument European Union Fonds Francais pour l'environnement Mondial Global Energy Efficiency and Renewable Energy Fund Global Environmental Facility Global Facility for Disaster Reduction and Recovery German Technical Cooperation International Climate Fund International Development Research Center MDG Achievement Fund Mediterranean Investment Facility Nordic Environment Finance Corporation Non-Governmental Organization Norwegian Agency for Development Cooperation OPEC Fund for International Development Public Private Infrastructure Advisory Facility Special Climate Change Fund Sustainable Energy Action Plan Swedish International Development Cooperation Agency International Climate Fund United Nations Development Programme United Nations Environment Programme United Nations Educational, Scientific and Cultural Organization United Nations Economic and Social Commission for Western Asia United Nations Industrial Development Organization United States Agency for International Development Global Methane Initiative World Bank Page 4
1. INTRODUCTION Cleaner Energy Saving Mediterranean Cities Project (CES-MED) a project funded by the European Union (EU) to support the efforts of local authorities in the European Neighborhood and Partnership Instrument (ENPI) South Mediterranean Partner Countries: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, occupied Palestinian Territory and Tunisia to respond more actively to sustainable policy challenges. The project aims at: Developing the local authorities capacities to formulate and implement sustainable local policies. Expanding the use of sustainable policies, such as solutions to renewable energy, measures to reduce CO2 emissions, efficient water and waste management, and environment-friendly public transport. Increasing the awareness and responsiveness of national authorities to the need for and benefits of a strong involvement of cities in local sustainable policy issues. Moreover, CES-MED aims at promoting the adherence of cities and municipalities from these countries to the Covenant of Mayors (CoM 1 ) and will directly support the adhesion of two to three cities/municipalities per partner country. This report provides a description of the methodology adopted to identify potential sources of financing needed for the preparation of detailed studies and the implementation of Sustainable Energy Action Plans (SEAPs) by local authorities in Lebanon. The results are summarized in a matrix that lists the funding opportunities that could be used by the government, NGOs, cities and municipalities in Lebanon. 1 The Covenant of Mayors is the mainstream European movement involving local and regional authorities, voluntarily committing to increasing energy efficiency and use of renewable energy sources on their territories. By their commitment, Covenant signatories aim to meet and exceed the European Union 20% CO 2 reduction objective by 2020. Page 5
2. METHODOLOGY Lebanese municipalities are unable to fulfill their duties due to legal constraints and financial dependency. The two major financial resources for municipalities -the Independent Municipal Fund (IMF) and the local taxation- are not sufficient to promote community development and sustainability initiatives. In order for municipalities to keep up with the increasing local demands and provide sustainable development, the IMF and taxation system ought to be complemented with external financial resources. However, municipalities lack the needed technical guidance and capacity to apply to external loans and grants provided by bilateral and multilateral agencies. In order to support local authorities in identifying mechanisms for technical assistance and financial support, a Donor Matrix was prepared. The matrix was prepared through: Internet search of all sustainable energy programs and projects available on websites of the donor community, international organizations, and governments; Referring to previously prepared donor matrices in the framework of other initiatives and projects (for Tunisia, Jordan and Lebanon); Secondary data collection for information available on donors websites needed to fill the Matrix; Information obtained from the climate change unit in Lebanon which had also prepared sources of funding for climate-related initiatives. The matrix includes the following information: The name of the funding organization and contact details; A brief history of the organization s activities in Lebanon; General developmental objectives of the organization in Lebanon; Type of assistance provided (grants, loans, technical assistance, co-financing) and the possible beneficiaries (eligible applicants) (public sector, private sector, NGOs, individuals, municipalities); Priority areas of intervention and identifying the thematic areas related to sustainable energy; and Conditions and requirements to access funding, the eligible beneficiaries, and the application process. Page 6
3. POTENTIAL SOURCES OF FINANCIAL AND TECHNICAL SUPPORT The matrix prepared included around 60 potential sources of financial and/or technical support of both bilateral and multilateral nature or from private funds and organizations. Table 1 lists the opportunities presented in the Matrix. Table 1 Donors, Funds and Foundations Multilateral Donors Bilateral Donors Funds and Foundations The Arab Fund for Economic and Japan Citibank/Citigroup Foundation Social Development (AFESD) Kuwait Critical Ecosystem Partnership Adaptation Fund (AF) United States Agency for Fund (CEPF) European Investment Bank (EIB) International Development (USAID) Heinrich Boell Foundation Global Environmental Facility Japan International Cooperation Aga Khan Development (GEF) Agency (JICA) Foundation World Bank (WB) Swedish International Development Mosanto Fund United Nations Environment Cooperation Agency (SIDA) The Hatoyama Initiative Programme (UNEP) Norwegian Agency for Development Europe Aid EC Cooperation (Norad) United Nations Educational, Belgian Development Agency Scientific and Cultural Federal Ministry for Economic Organization (UNESCO) Cooperation and Development United Nations Industrial (BMZ) Development Organization Austrian NAMA Initiative (UNIDO) Development Bank of Austria United Nations Development Global Methane Initiative (USEPA) Programme (UNDP) International Development United Nations Economic and Research Center CANADA (IDRC) Social Commission for Western Fonds Francais pour l'environement Asia (UN-ESCWA) Mondial (FFEM) Nordic Environment Finance International Climate Initiative of Corporation (NEFCO) - Carbon the Federal Ministry for the Fund Environment, Nature Conservation Clean Technology Fund - World and Nuclear Safety Bank Group Belgian Investment Company for OPIC Fund for International Developing Countries Development (OFID) Center for International Migration Global Energy Efficiency and and Development Renewable Energy Fund PROPARCO (GEEREF) Special Climate Change Fund (SCCF) of GEF Carbon Finance Unit (World Bank) Climate Technology Initiative (CTI) Private Financing Advisory Network (PFAN) Page 7
Multilateral Donors Bilateral Donors Funds and Foundations MDG Achievement Fund (MDG- F) MDG Carbon Facility (UNDP) Catastrophic Risk Management (World Bank) International Finance Corporation Climate Finance Innovation Facility Global Facility for Disaster Reduction and Recovery (GFDRR) Mediterranean Investment Facility (MIF) Small Grants Programme (UNDP) Climate and Development Knowledge Network International Climate Fund (UK- ICF) Climate Change Technical Assistance Facility Public Private Infrastructure Advisory Facility (PPIAF) The above listed agencies and funds provide loans, grants, co-finance, or technical assistance for environmental projects in the Mediterranean, Middle East or Lebanon in specific, focusing mainly on governments, governmental agencies, private sector, public sector or NGOs. Table 02 further identifies the main eligible areas of intervention of these funding opportunities including environment, energy efficiency and renewable energy, climate mitigation and climate adaptation. The Donor Matrix is included in Annex III.. Page 8
Table 02 Donors Distributed According to Thematic Area of Work Donor Environment Energy and Renewable Energy Climate Change Mitigation Climate Change Adaptation Adaptation Fund AFESD Aga Khan Development Foundation Australian Aid Austrian Development Cooperation Austrian NAMA Initiative Belgian Development Agency Belgian Investment Company for Developing Countries Carbon Finance Unit Catastrophic Risk Management CEPF CIM Citibank/Citigroup Foundation Clean Technology Fund Climate and Development Knowledge Network Climate Change Technical Assistance Facility Climate Finance Innovation Facility CTI- PFAN Development Bank of Austria EIB Europe Aid EC Europe Union Page 9
Donor Environment Energy and Renewable Energy Climate Change Mitigation Climate Change Adaptation Federal Ministry for Economic Cooperation and Development (BMZ) FFEM GEEREF GEF GFDRR Global Methane Initiative (USEPA) GIZ Heinrich Boell Foundation IDRC-CANDA International Climate Initiative International Finance Corporation Japan Japan International Cooperation Agency Kuwait MDG MDG Carbon Facility MedPan MIF Proparco Monsanto Fund NAMA Facility NEFCO - Carbon Fund Norwegian Agency for Development Cooperation (Norad) OFID PPIAF Page 10
Donor Environment Energy and Renewable Energy Climate Change Mitigation Climate Change Adaptation SIDA Small Grants Programme Special Climate Change Fund TAIC The Hatoyama Initiative UK-ICF UNDP UNEP UNESCO UNIDO USAID WB Page 11
4. SUMMARY AND RECOMMENDATIONS Selected donors were contacted to further discuss opportunities to fund Municipalities projects in the area of sustainable development, including the EU, AFD and the Kuwait Fund. The Director of the Lebanese Center for Energy Conservation was also contacted to discuss the best approach to support municipalities. All interviewees confirmed that there are limited opportunities in Lebanon for direct support to municipalities. Interviewees also expressed concerned with respect to the capacity of local municipalities to manage complex and technical projects such as those related to SEAPs. Most support to municipalities is channeled through the central government such as through the Council for Development and Reconstruction (CDR) or the Higher Relief Commission (HRC) or through NGOs such as in the case of the Italian Cooperation. Interviewees support the idea of establishing a central mechanism to support municipalities in the area of sustainable development and energy planning that would provide technical assistance and act as a resource mobilization hub for the municipalities. The director of the LCEC confirmed the willingness and capacity of the center to play such role. Enabling the National Environmental Fund could also provide a sustainable mechanism to support municipalities. It is highly recommended that these options be seriously explored to upscale the preparation and implementation of SEAPs at the local level in Lebanon. The donor matrix prepared in the context of this assignment can be used as tool to mobilize resources towards a central mechanism to support the municipalities. Page 12
Appendices Page 13
Annex I Project Twinning Twinning is a European Commission initiative that was originally designed to help candidate countries acquire the necessary skills and experience to adopt, implement and enforce EU legislation. Since 2004, twinning is also available to some of the eastern and southern Neighbourhood partner countries. Twinning projects bring together public sector expertise from EU Member States and beneficiary countries with the aim of enhancing cooperative activities. They must yield concrete operational results for the beneficiary country under the terms of the Association Agreement between that country and the EU. To set up projects, the Commission relies on the co-operation and administrative experience of Member States. They are expected to mobilise experts from government and other public sector organisations. Twinning projects are built around the secondment of at least one full-time Member State expert the Resident Twinning Adviser (RTA) who goes to work in a beneficiary country administration. Projects mobilise a number of actions run by the MS public body (ies) partner(s) to the project, including workshops, training sessions, expert missions, study visits and counselling. This institution-building instrument helps partner countries acquire the necessary skills and experience to adopt, implement and enforce EU legislation. Twinning seeks to help transfer, adopt and/or adapt to EU legislation, standards and practices and to modernise partner countries administrations through reorganisation, drafting of laws and regulations and through capacity-building. It is based upon close cooperation between a public administration institution in a Neighbourhood country and the equivalent institution in an EU Member State (MS) in a specific field related to the acquis communautaireor any other relevant field of cooperation. As regards twinning in Lebanon, the Qualeb Twinning Programme to strengthen the quality infrastructure in the country has come to an end. Through this Twinning, three laboratories have been accredited, a National Metrology Council has been set up, and 9 metrology decrees have been drafted to support the Metrology Law. LIBNOR the Lebanese Standards Institution has made significant modernisation leaps, the Trade Information Centre has a new information system to help Lebanese exporters, and the Consumer Protection directorate has received extensive training on legal metrology and on how to handle consumer complaints and enforce the consumer law. Although projects twinning does not seem like the most suitable funding solution for the LAs planned SEAP projects, it can significantly contribute to the capacity building of the energy agencies, ministries or other related stakeholders to undertake the role of the Covenant Coordinator at the national level, in order to support the LAs with the SEAP and BEI development. Page 14
Annex II UPFI Projects in Lebanon New waterfront (Solidere) in Beirut Page 15
Annex III Donors Matrix Click the Paper-Clip Icon Below to Open the Donor's Matrix in Excel Page 16
The European Union is made up of 28 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders. Disclaimer The sole responsibility for the content of this report lies with the authors. It does not necessarily reflect the opinion of the European Union. The European Commission is not responsible for any use that may be made of the information contained therein. www.ces-med.eu