Primary Contact Person, Title and Telephone Number

PROJECT TITLE: Feasibility for COMESA-wide approach and standards for climate resilient technologies

PRIMARY CONTACT PERSON, TITLE AND TELEPHONE NUMBER: Dr Mclay Kanyangarara, Climate Change Advisor, COMESA, Lusaka, Zambia E-mail: [email protected], Phone: +260 211 229725/32, Mobile: +260 963 674434

SECTION 1: Situation Analysis COMESA was set up as a Regional Economic Community (REC) with the aim to establish a common market within eastern and southern Africa, eventually scaling up to an African Economic Community. The COMESA Treaty was adopted in 1993. Presently, COMESA is one of eight recognised RECs in Africa. The vision of COMESA1 is “To have a fully integrated internationally competitive regional economic community with high standards of living for its entire people, ready to merge into the African Community”. The COMESA regional block currently comprises of 19 Member States namely; Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe.

COMESA’s population in 2014 was 482 million, GDP (at current prices) was US $666,556 million, total exports were US $104,857 million with total imports of US $202,050 million, intra- COMESA exports were US $10,140 million and intra-COMESA imports US $10,571 million. COMESA covers a geographic area of 11 million square kilometers. Intra-regional trade has increased from US $3.1 billion in 2000 to US $22.42 billion in 2014. The sectors with the highest trade potential are: textiles, wooden furniture, horticultural products, household items, hides and skins, footwear and leather products, Portland cement, coffee and tea concentrates, natural gum, precious metals, refined copper and copper alloys, essential oils, jewelry and white and red meat3. The increase of trade within the region has a direct adverse impact on the environment with the increase production of Green house gases emission throughout the production and consumption of value chain. The accumulation of Green House Gases in the atmosphere has a significant impact on the global climate. According to the Intergovernmental Panel on Climate Change Synthesis Report for policy makers (2014), warming of the Climate System is unequivocal. In the eastern and southern Africa region, climate change effects have included increased frequency of extreme weather events, flooding, storms and droughts.

1 COMESA Treaty, 1993 2 Including re-exports 3 Draft COMESA’s Medium Term Strategic Development Plan 2016-2020

The threats of climate change in the COMESA region affect rural and urban areas, exacerbating existing problems of food, water and energy insecurity and human health challenges. Trade in the COMESA region is also extremely vulnerable to climate change, as it is mostly based on agriculture which is mostly rain fed. Intra-COMESA trade dependant on road infrastructure which largely in poor condition and is not climate proofed. Under optimistic scenario of temperature rise of 2oC, climate change is forecast to reduce crop yields by between 10 and 20 percent. Increased incidence of droughts and floods will also lead to sharp increases in prices of some of the major food crops. The nature and extent of climate related challenges not only hinder human development and environmental conservation, but are a major threat to human security at the regional and national levels. Climate change may also cause conflicts between and within nations as resources become scarcer and disasters destroy lives and livelihoods. Climate change affects especially the most vulnerable communities that rely on ecological resources for their sustenance and are the least able to adapt.

Sub-Saharan Africa (SSA) has contributed the least to the global accumulation of greenhouse gas emissions: less than 4% of global CO2 emissions come from the African continent. However, globally the increase in energy demand in non-OECD countries is expected to account for 85% of the increase of world energy demand in the next 30 years. The COMESA region is expected to contribute significantly to this increase of energy demand due to the rapid urbanisation and the forecast of economic growth4.

COMESA Member States have recently clearly indicated to the UNFCCC Secretariat through their Intended Nationally Determined Contributions (INDCs) their ambition to mitigate their GHG emissions. This will require a new approach to unlock the huge potential for green industries through the development of green and more carbon efficient technologies for the common market, at the same time giving the ever bulging numbers of young people new prospects for jobs, business and commerce.

COMESA believes that rapid growth in international trade – including within COMESA - needs to be balanced with environmental and social safeguards, climate change resilience building and GHG mitigation. COMESA’s and Africa’s economic development through trade can only be achieved, if Governments fully embrace low carbon pathways, and empower the people to achieve internationally agreed Sustainable Development Goals. To penetrate lucrative international markets such as the EU, while maintaining competitiveness for traditional primary products from agriculture, mining and fisheries, new standards must be set for production. Investments and traded goods in the common market must meet the relevant standards in conformity with this new agenda.

The energy sector is very important to every country’s economy as it fuels economic growth and development. Moreover, as the region’s economy and trade continues to grow, energy will be a critical element to support and sustain the achieved growth. Energy efficiency and renewable energy are said to be the “twin pillars” of a sustainable energy policy. Both must be developed concurrently in order to stabilize and reduce GHG emissions.

4 Climate Change fund Update, Climate Finance Regional Brief: Sub Sahara Africa,2016

Despite the abundant energy resources that the COMESA region is endowed with, energy is still a scarce and expensive resource, because the region's energy resources are still underdeveloped and infrastructure such as electricity transmission and distribution networks, petroleum and gas pipelines are not adequate. COMESA region has also considerable potential of renewable energy such as such as bioenergy, solar, wind, geothermal, hydropower, etc. which are yet to be fully exploited.

At present, the total installed capacity of the COMESA region is around 52,000 megawatts of which 69 % is dependent of fossil fuels and 30 % is hydropower5.

The high cost of energy in most COMESA Member States is an impediment to COMESA regional economic growth and competitiveness in international trade.

In many COMESA countries, electrification rates are very low and the impediment to electrification is the cost of the transmission infrastructure from the point of electricity generation to remote villages. Renewable energy technologies are an opportunity to have small decentralised generation and off grid networks. This will, in turn facilitate the expansion of small businesses and lead to greater community benefits in addition to the environmental benefits related avoiding greenhouse gas emissions.

The region, being the least polluter in the world with its vast untapped renewable energy potential and urgent development needs, and a favourable outcome of the Paris Agreement has an excellent opportunity to immediately embark on the green economy process and at the same time maintain and consolidate its low carbon status.

Efficient energy use is essential to reduce the energy demand growth so that the rising clean energy supplies can make deep cuts in fossil fuel use. Clean energy supplies must come online rapidly to cope with rising demand and reduce the carbon content of energy sources. A sustainable low carbon economy thus requires major commitments to energy efficiency and investments in renewable energy sources. Improving energy efficiency reduces energy demand and in turn the need to build new power plants resulting in GHG emission reductions that can be achieved at low or negative costs, with short pay back periods. Scaling up investment in energy efficiency could therefore generate a net increase in economic output. Energy efficiency investments become even more compelling if other benefits are considered (in addition to reducing energy demand and GHG emissions) such as employment creation, improved health and well-being, increased industrial productivity, etc.

One of the most cost effective market interventions available for energy efficiency is a standard and labeling programme6. The purpose of an energy label is to provide guidance to consumers at the time of purchase on the likely energy consumption of the products of interest, and more importantly, provide a basis for comparing the energy consumption of products. This information can be used by consumers to make many assessments such as energy costs for ongoing operations (which are critical when determining total lifetime operating costs) and issues like environmental impact. The most commonly labeled appliances are refrigerators, freezers and air

5 COMESA Energy Programme,2012 6 Energy Standards and labeling throughout the world ,UNEP ,Copenhagen Centre on Energy Efficiency,2013

conditioners, although the range of products is as diverse as rice cookers, boilers, lighting and clothes washers etc. Labeling is not restricted to electric products, with some countries including gas, solar and other fuel types (such as oil) in their programmes.

In 2013, 81 countries around the world adopted energy standards and labeling for 55 products type.7 In Africa, South Africa, Ghana, Egypt, Kenya and Mauritius (Refer Annex 1) had such systems in place in 2013 - only three of these are COMESA member states.

The market for climate resilient technologies is just beginning to develop in the COMESA region and is constrained in many ways: expensive appliances, poor performance, poor quality, lack of options, lack of incentives, lack of consumers’ information, etc.

Successful scaling-up of climate smart technologies will require institutional, legal and regulatory frameworks including a portfolio of policies and measures such as minimum performance standards and performance labeling, tax and incentives frameworks.

2. Stakeholders

 COMESA Secretariat In the past 10 years, most of the environment agenda has been addressed under COMESA’s climate change programme, with climate change being recognised as a key cross-cutting issue affecting the common market. Today, with the 2030 Sustainable Development Agenda in place and a better understanding of the intricate interlinkages of the trade, environment, climate change and sustainable development domains, a targeted agenda for action emerges for COMESA to uplift key common interest and strategic issues to the regional level, to strengthen and scale up national interventions.

The COMESA Secretariat has an on-going Energy Programme whose main thrust is to promote regional cooperation in energy development, trade and capacity building. The programme has contributed to the harmonization of energy policy and regulatory frameworks through preparation of model policy and regulatory guidelines for the energy sector; and has supported the establishment of a Regional Association of Energy Regulators for Eastern and Southern Africa. The programme has facilitated trade in energy services through development of harmonized standards. Moreover, the programme is in the process of developing regional energy infrastructure through a medium to long-term energy master plan. The main areas in power are in generation and transmission to facilitate electric power trade and cross-border trade in electricity to narrow down the high discrepancies in the prices of electricity in various countries in the region.

 COMESA Standards Unit

7 Energy Standards and labeling throughout the world ,UNEP ,Copenhagen Centre on Energy Efficiency,2013

The COMESA Standards Unit has lead the process of the harmonization of 385 standards to facilitate trade in all sectors within the region and is now looking at broader TripartiteEAC/SADC/COMESA region. The COMESA Standards Unit is currently working on developing standards for the energy sector as indicated in the table below.

Sector Standards being developed Energy 1. Production, distribution and utilization of power i. Standards for rotating machines of less than 10MVA (MW) as they were widely used in mini and micro hydropower plants which are quite common in the region ii. Standards on the Grid Code iii. Standards that cover the design and construction of the towers above ground iv. Standards for glass insulators v. Standards for dry type transformers vi. Standards for consumer end low voltage (LV) cables 2. Solar power 3. Rural electrification 4. Petroleum products i. 7 standards for liquefied petroleum gas ii. 22 standards for unleaded and leaded gasoline iii. 23 standards for aviation gasoline iv. 9 standards for kerosene 5. vehicles used to transport the products

 COMESA Climate Change Unit (CCU) The work of the Unit is guided by the COMESA Climate Change (CC) Framework, and between 2009 and 2016, projects have concentrated on using the COMESA convening role to establishing a region-wide approach to the UNFCCC climate negotiations, the support of the development of national CC policies and strategies and Agriculture Investment Frameworks (AIFs), and the Intended Nationally Determined Contributions (INDCs now post COP 21- NDCs). A special focus of the Unit’s work has been on developing Climate Smart Agriculture (CSA) and Conservation Agriculture (CA) as climate resilience approaches for food production and trade within the common market. The resilience thinking of the CCU is continuously developing, and a more inclusive and integrated approach on region-wide climate resilience building is emerging, with priority programme areas such as Leadership & Strategy, Food Security, Health and Well-being, Economics & Society and Environment & Infrastructure, which are currently being further positioned.

 The Eastern Africa Power Pool (EAPP)

The Eastern Africa Power Pool (EAPP) was established in 2005. The members’ countries are Burundi, Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Libya Rwanda, Sudan and Tanzania. The Council of Ministers of COMESA officially adopted the Eastern African Power Pool as a COMESA specialized institution in 2010. The EAPP is a vehicle for the enhancement of energy interconnectivity in the region and the rest of Africa.

The main objectives of the EAPP are power trading through common planning and implementation of regional power generation and interconnection projects. It was identified as one important strategy for tackling the challenges associated with power supply shortages, low access, high cost and poor supply reliability. With support of the EU, the following activities were completed: the strategic road map to 2025, and the regional market design. A regional power master plan and grid code were also developed. Moreover, an Independent Regulatory Body was established. Model bilateral electricity trading agreements and the interconnection code and power transmission standards were developed.

 The Regional Association of Energy Regulators for Eastern and Southern Africa (RAERESA) The Regional Association of Energy Regulators for Eastern and Southern Africa (RAERESA) was officially launched in 2009. The main objectives of RAERESA are:  capacity building and information sharing: to facilitate energy regulatory capacity building among Members at both national and regional levels through information sharing and skills training;  facilitation of energy supply policy, legislation and regulations: to enhance the increasing integration of energy systems and energy trade in the COMESA region and beyond through the facilitation of harmonized energy policy, legislation and regulation for cross- border trading;  Inter regional cooperation: to develop programmes that facilitate inter regional cooperation; and  regional energy regulatory co-operation: to deliberate and make recommendations on issues affecting the economic efficiency of energy interconnections and energy trade among Members on issues that fall outside national jurisdiction.

The functions of RAERESA to achieve these objectives include the following:  monitor and evaluate energy regulatory practices among Members to determine regional needs;  develop, conduct and manage information and capacity building projects for national energy regulators;  promote and support the development of independent energy regulators in the COMESA countries where there are none;  prepare position papers;  facilitate the co-ordination of energy trade and systems operations in conjunction with the power pools and national control centres;  promote the establishment of norms and standards; and  establish working relationships with other agencies that promote development and coordination of energy related matters.

RAERESA has recently prepared a concept note stating the need and urgency of well- coordinated region wide energy efficiency standards and labelling programme for COMESA countries.

It is proposed to prepare a strategy document which should include: 1. identification and prioritization of equipments and appliances to be labeled in the regional programme; 2. identification of appliance and equipment supplies to the region; 3. proposal of a process mechanism and network to develop test standards to be used in the region as an accepted test protocol to be used for the selected equipments and appliances, 4. propose and / or customize a region wide labeling logo; 5. identify testing lab capabilities in the COMESA region; 6. facilitate the designation of testing laboratories in the region; 7. develop energy efficiency standards and Labelling (EES&L) program for few selected appliances and equipments; 8. prepare a focused programme to the national standards institutes, to the wider target population and to equipment and appliances suppliers to promote energy standards and labeling programme ; and 9. establish a system of Monitoring and Verification and a mechanism to involve national relevant institutes in the program monitoring and verification process;

This concept note is currently being reviewed by the Council of Ministers of COMESA and indicating a strong political commitment by Member States for such issue.

 Member states Member States are fully engaged into climate change issues and the 19 Member States of COMESA region acceded to the United Nations Framework Convention on Climate Change (UNFCCC) and signed the Kyoto Protocol ending in 2020. To date, Member States have submitted National Communications to the UNFCCC, National Adaptation Plans of Actions (NAPAs), Nationally Appropriate Mitigation Actions (NAMAS) and more recently the countries agreed to publicly outline what post-2020 climate actions they intend to take under a new international climate change agreement known now as their Intended Nationally Determined .Contributions I(NDCs) as indicated in the table below. The INDCs will largely determine whether the world achieves an ambitious agreement and is put on a path toward a low-carbon, climate-resilient future. 15 COMESA Member States namely Burundi, Comoros, D.R Congo, Djibouti, Ethiopia, Eritrea, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Swaziland, Zambia and Zimbabwe, had made their INDCs submissions8. Member States have a key role in shaping a regional vision for towards a low carbon climate resilience future complementary to national approaches.

Submission to Member States

8 UNFCCC , INDC portal ,2015

UNFCCC

National Burundi, Comoros, DR Congo, Djibouti, Eritrea, Ethiopia, Madagascar, Adaptation Malawi, Rwanda, Sudan Programme of Action(NAPAs)

Nationally Ethiopia, Eritrea, Madagascar Appropriate Mitigation Actions(NAMAs)

National Kenya, Rwanda Implementing Entities for Climate fund

Agriculture Burundi, DR Congo, Rwanda, Kenya, Uganda, Malawi, Sudan, Zambia

Gender Burundi, Kenya, Malawi, Sudan

National Burundi, Comoros, DR Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Communications Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Uganda, Zambia, Zimbabwe

Status and Reporting from member states to the UNFCCC on various area of concern as of December 20149

3. Regional programme in preparation

Cooperation between COMESA and EU on Energy

The European Union will assist Eastern Africa, Southern Africa and Indian Ocean (EA-SA-IO) region to enhance its sustainable regional energy market, through a programme on enhancement of a sustainable regional energy market in the Eastern and Southern Africa and Indian Ocean region, under the 11th EDF Regional Indicative Programme for the EA-SA-IO region.

The project will focus on:  the development of regulatory frameworks to nurture a regional energy market that is efficient, sustainable, harmonised and able to attract investments and ensure universal access;  strengthen RERA and RAERESA's capacity to proactively influence developments in the energy sector in the region; and

9 COMESA Annual Report, 2014

 Enhance the capacity of Member State Regulators, develop and enhance domestication of renewable energy and energy efficiency policies and regulatory guidelines to promote investment in clean energy.

The Regional Association of Energy Regulators for Eastern and Southern Africa (RAERESA) of COMESA had been identified to lead and to undertake the overall coordination of this project. The beneficiaries of the project will be East Africa-Southern Africa- Indian Ocean (EA-SA-IO) countries and RECs namely COMESA, EAC, IGAD, IOC and SADC. The establishment of standards and labeling for the COMESA region will contribute to the implementation of the energy efficient policies proposed under this EU funded initiative and will benefit from the strengthened capacity of RERA and RAERESA's.

4. Barriers A regional energy market that is efficient, sustainable, harmonized ensuring universal access is a primordial factor for the development of COMESA member states. However, it is essential to reduce as well the energy demand growth with energy efficiency policies and by adopting clean energies technologies that will reduce fossil fuel use and green house gases emissions to be in line with national and global targets for GHG emissions. Scaling up investment in energy efficient appliances will generate a net increase in economic output and support the integration objective of COMESA. However the following barriers have been identified for the adoption of resource efficient technologies within the region.

 Barrier 1: Lack of an enabling regional policy framework for resource efficient technologies: At present, the region does not yet have any policies and regulations on importation of climate smart technologies, including mandatory regional standards and performance labels (MEPS) for imported technologies. Moreover, there are no legal regional guidelines for public/private fiscal incentives to be deployed to spur uptake of more resource efficient applications among domestic and commercial consumers. A limited number of countries have adopted national policies and regulatory framework for climate Smart technologies but no mechanism are in place to insure consistency within the region.

 Barrier 2: Lack of local/COMESA-based technology development and production hubs: Additionally, the vast majority of climate resilient technologies are imported into the COMESA region, with limited local production. Technologies are often not adapted to local conditions and do not meet special needs and uses of the people.

 Barrier 3: Financial Barriers One of the main barriers to domestic and commercial entities uptake of climate Smart technologies is the higher initial capital investment required and the lack of targeted financial incentives. At the same time, domestic and commercial consumers face

financial and market constraints to adopting resource efficient technologies due to the unwillingness of banks and lenders to provide de-risking instruments for such products, which are still not very well known in the region and are more expensive compared to Business As Usual alternatives. Capacities within the region are also limited for promotion or selecting the most appropriate financial incentive platforms for domestic or commercial users.

 Barrier 4 : Information Barriers and Lack of Awareness Knowledge of resource efficient practices and technologies is still very low among the general population and the businesses communities within the region .Some education and awareness campaign have been initiated in limited number of countries with results difficult to quantify.

SECTION 2: Project rationale The project objective is to enable an improvement in the market for climate resilient technologies within the COMESA region by adopting common minimum performance standards, performance labelling and facilitating the adoption of these technologies, their usage and disposal.

COMESA as a regional entity has a leading role in facilitating such a process, which will build on lessons learnt and results of COMESA’s energy programme and COMESA’s climate change initiative 2009-2016. COMESA is uniquely positioned to identify best practises, support the sharing of knowledge, facilitate the exchange of experiences and peer learning processes amongst Member States. Regional initiatives for common or cross-boundary issues can optimise the use of limited resources, while COMESA plays a leading advocacy role. The Regional Association of Energy Regulators for Eastern and Southern Africa and the Eastern Africa Power Pool will be the vehicles to implement policies decisions taken by COMESA members states in terms of energy performance standards and energy labelling.

In this context, the COMESA region seeks to develop a common vision for green technologies, including minimum performance standards, performance and CO2 efficiency labeling for climate resilient technologies. This will contribute to improving the competiveness of the COMESA region, facilitate trade, increase climate resilience by reducing energy security risks, and reduce GHG emissions and waste production. It will support the growth of a market for climate resilient technologies within the COMESA region and support member states in identifying the appropriate financing mechanism for the adoption of climate resilient technologies.

Successful scaling-up of climate smart technologies will require institutional, legal and regulatory frameworks. In addition, successful implementation will require a portfolio of policies and measures including electrical and water appliances minimum performance standards and

labeling programme, energy certification programme, energy performance standards, incentives and tax breaks. Green technologies, Minimum energy performance standards and energy labeling are cost effective market interventions that form part of COMESA wide climate change framework.

SECTION 3: Project Design The overall objective of the project is to enable an improvement in the market for climate resilient technologies within the COMESA region by adopting common minimum performance standards, performance labeling and facilitating the adoption of these technologies, their usage and disposal. Implementation of the project will done jointly COMESA Climate Change Unit, African Power Pool and RAERESA.

The project will have four outcomes as indicated below:

Outcome 1: Improved regional policy, institutional, legal/regulatory and financial framework for climate resilient technologies.

Outcome 2: Increased knowledge of stakeholders at regional and national levels on climate resilient technologies issues.

Outcome 3: Improved awareness and education of targeted audiences on climate resilient technologies.

Outcome 4: Identify appropriate financing mechanisms to support adoption of climate smart resilient technologies by the communities and businesses.

Outcome 1: Improved regional policy, institutional, legal/regulatory and financial framework for climate resilient technologies This outcome will build regional capacity and provide relevant regional information, paving the way for the development of a regional legal /regulatory framework for climate resilient technologies standards and labeling. Four outputs are expected under outcome 1:

Output 1.1 Baseline and mapping of existing national policy, institutional, regulatory and financial frameworks for climate resilient technologies This output will focus on establishing a baseline on existing policies and measures put in place by Member States in terms minimum performance standards and performance labeling, as well as financial frameworks for climate smart technologies. Additionally, it will look at origin, type and price of climate smart technologies available within the COMESA region and existing and projected market demands.

Output 1.2 Identify best practises and develop guidelines to ensure consistency of minimum performance standards and energy performance labelling within the region. Minimum Performance Standards (MPS) are procedures and regulations that prescribe the minimum performance of manufactured products; MPS can be set to ensure that obsolete and inefficient technologies do not continue to dominate the market, with much greater impact than is possible by the actions of individual end-users.

Labels indicating the performance of products are meant to help the market recognize efficiency and act on it. Without the information provided by labels, consumers and other end users are often unable to make an informed decision about the true cost of a product, and manufacturers lack the incentive to improve the performance of it as there is no way for the market to recognize and value this aspect.

This output will focus on documented best practises in terms of minimum performance standards in place at national level, performance labelling and financial mechanism conductive to the up scaling of climate smart technologies. This review of best practices will lead to the preparation of guidelines by COMESA secretariat in terms of minimum performance standards, performance labelling and financial mechanisms to ensure consistency between member states. Output 1.3 Develop and implement pilot projects on minimum performance standards and performance labeling on selected climate resilient technologies in selected countries This output will focus on implementing pilot projects in countries selected based on criteria agreed by stakeholders to develop and implement the appropriate framework in terms of minimum performance standards and performance labeling for prioritised climate smart technologies and build capacity of stakeholders to enforce and monitor implementation. National entities will have to be identified to design test standards and carry out test in laboratory. National performance labelling systems need to be designed. Output 1.4 Develop a road map leading to the establishment a regional legal/regulatory and financial framework for climate resilient technologies standards and labeling This output will focus on developing a road map through a consultative process, leading to the adoption of a regional legal/regulatory and financial framework for climate resilient technologies minimum performance standards and performance labeling based on best practises and results of pilot projects within the region. It will include the identification and prioritisation of climate resilient technology to be labelled and with minimum performance standards.

Outcome 2: Increased knowledge of stakeholders at regional and national levels on climate resilient technologies issues. This outcome will strengthen national capacities on climate resilient technologies issues based on exchange of information; sharing of knowledge and through peer learning approach. Three outputs are expected under outcome 2:

Output 2.1 Capacities of stakeholders at regional and national levels on climate resilient technologies are strengthened (understanding of labeling and standards for manufacturers, importers, customs, maintenance and installation contractors) It is important to build the capacity of manufacturers, importers, customs officers and contractors of climate resilient technologies on minimum performance standards and performance labeling system to ensure that they are fully on board and supportive of the regional policy framework. The technical capacity building programme will be done through existing technical educational institutions and lead to the certification of accredited contractors. Output 2.2 Capacities of stakeholders at regional and national levels on climate resilient technologies are strengthened on financial mechanisms to support the uptake of climate smart technologies by the public and businesses based on peer learning and exchange of experiences This output will focus on building the capacity of financial experts within the ministry responsible for finance and local banks to be in a better position to grasp business opportunities existing in green technologies sector by designing and proposing adapted financial solutions to the communities and businesses to upscale their investment into climate smart technologies. Output 2.3 Capacities of COMESA secretariat on climate resilient technologies issues and financial mechanisms are strengthened The capacity of the climate change, standards and energy units on climate resilient technologies need to be improved to enable them to coordinate ,implement and monitor future programme on this thematic.

Outcome 3: Increased awareness and knowledge on climate resilient technologies of the general public and businesses This outcome will raise the level of education and awareness on climate resilient technologies through a targeted and innovative campaign aiming at up scaling investments by communities and businesses into climate resilient technologies. Information on climate smart technologies will be disseminated to Member States to support the development of local green businesses.

Three outputs are expected under outcome 3:

Output 3.1 An innovative, targeted regional awareness campaign for all stakeholders on energy efficiency, water efficiency and climate smart technologies issues is developed and implemented This output will focus on increasing the level of awareness of the households on the importance of energy and water efficiency and on the difference of efficiency of appliances available on the market. It will target the business community focusing on potential savings that climate smart technologies can make on operational costs and on business opportunities that climate smart technologies present .At least one TV documentary will be produced and broadcast on national channels. Press releases will be regularly produced, translated and communicated to national media.. National workshop will be organised for targeted audiences

with involvement of local counterparts. Information leaflets will be produced and distributed. Output 3.2 Establish a regional platform on climate resilient technologies to disseminate information Technologies are evolving rapidly and it is important for member states to be kept informed on innovations and best practises in the region through exchange of experiences, knowledge and peer learning approach. Output 3.3 Set up an online database on minimum standards and labeling on climate resilient technologies in the COMESA region. A data base will be made available to stakeholders on adopted standards and performance labeling system for climate resilient technologies for the region.

Outcome 4: Financing mechanisms to support adoption of climate smart resilient technologies by vulnerable communities In the absence of carbon pricing in most countries, many low carbon technologies and climate smart technologies available are more expensive than the business as usual alternatives. It may require upfront funding to purchase the technology and build technical capacity. Therefore, grants, loans or concessionary finance are needed to support the adoption of climate smart technologies. Three outputs are expected in outcome 4: Output 4.1 Assessment and sharing of existing best practises within the COMESA conducted Through desk reviews and field missions, financial mechanisms best practices for climate smart technology will be identified and documented. the detailed processes, procedures and the institutional arrangements that led to the establishment of the best financial mechanisms identified will be presented and shared amongst stakeholders.

Output 4.2 Guidelines on financing mechanisms to support the adoption of climate smart technologies by the communities and businesses are developed. Based on the results of the review of best practises, a series of guidelines will be produced for different financial mechanisms. These guidelines will ensure consistency between the different financial mechanisms in place with the region Output 4.3 Feasibility study for regional or national selected financial mechanisms are conducted Selected countries will be supported to carry out the feasibility of a potential financial mechanisms including Identification of key partnerships( private ,public and overseas Development Partners) and appropriate platforms, institutional arrangements, costs etc.

SECTION 4: Expected Results

Four key results are expected from this project

Result 1: COMESA wide consistency of a minimum performance standards and performance labeling systems for climate resilient technologies It is foreseen that in the short term, Member States will adopt minimum performance standards and performance labeling system for climate resilient technologies in line with guidelines produced by COMESA. 5 Pilot projects will be implemented in selected countries for prioritized climate resilient technologies to adopt minimum standards and performance labeling system, which will include a testing protocol to be carried out by a national designated authority. A road map for the region will be adopted leading the way in the medium term for the adoption of common minimum performance standards and performance labeling system for climate resilient technologies for the region.

Result 2: Capacity of stakeholders at regional and national levels on climate resilient technologies are strengthened Technical capacity of importers, manufacturers, customs officers and contractors will be strengthened to insure that the quality and the performance of climate resilient technologies improve within the region. Performance labeling will allow consumers, with the assistance of importers and manufacturers, to make informed decisions on the selection of technologies. Customs and Bureau of standards officers will be able to enforce minimum standards regulations at entry points and within the COMESA region.

Capacities of stakeholders from the finance sector (Ministry of Finance, Banking, Investment bureau, leasing and insurance companies, etc.) will be strengthened in terms of financing mechanisms for Climate Smart technologies for the domestic and business sector.

Result 3: Raised awareness and capacity of professional and the general public on climate resilient technologies and related issues The education and awareness of the general public and businesses will be strengthened in the short term on issues related to energy efficiency, renewable energy, water efficiency, waste management and recycling activities creating a conductive environment for up scaling the investment into climate resilient technologies, creating new business opportunities and making the region more competitive. TV documentary and radio show will be produced and broadcast on national channels within the region. Press releases and information leaflets will be produced. Information related to innovative technologies, standards and labeling will be disseminated to member states though a platform of exchange.

Result 4: Financing mechanisms selected established at national or regional levels coherent to support the uptake of climate resilient technologies Regional guidelines on financial mechanisms for climate smart technologies will be developed to support Member States to develop adapted financial mechanisms to up scale the adoption of climate resilient technologies within the region by the public and businesses.

Five comprehensive feasibility studies of potential financial mechanism for climate smart technologies will be carried out paving the way for their establishment at national or regional level.

SECTION 5: Logical framework

Objectives Budget needs Measurable indicators Means of verification Important assumptions USD (Over 4 years) OBJECTIVE: To enable an improvement in the market for climate resilient technologies within the COMESA region by adopting common minimum performance standards, performance labeling and facilitating the adoption of these technologies, their usage and disposal. OUTCOME 1: Improved regional policy, institutional, legal/regulatory and financial framework for climate resilient technologies

Output 1.1 One baseline report Member states are fully Baseline and mapping of existing Total :95,000 Compiling of information Regional Validation l engaged in the process market , national policy, institutional, Consultancy ;40,000 from 19 member states Report produced regulatory and financial frameworks for Regional validation climate resilient technologies workshop:50,000 Travel:5,000 Output 1.2 Number of guidelines and Regional Validation Guidelines endorsed by Best practices and regional guidelines to Total :105,000 documented best practices workshop report council of ministers ensure consistency of minimum Consultancy:50,000 produced performance standards , and energy Regional workshop : performance labeling ,within the region 50,000 developed Travel:5,000 Output 1.3 Total 500,000 Number of pilot project s Monitoring and evaluation Key stakeholders are 5 pilot projects on minimum 100,000 per project implemented reports committed are committed performance standards and performance to the process labeling on selected climate resilient technologies in selected countries Output 1.4 Total 105,000 Road map is developed by COMESA council of Road map endorsed by

Objectives Budget needs Measurable indicators Means of verification Important assumptions USD (Over 4 years) Road map leading to the establishment Consultancy: 100,000 COMESA Secretariat minister resolution on the council of ministers a regional legal/regulatory and financial Regional workshop:50,000 road map framework for climate resilient Travel:5,000 technologies standards and labeling developed OUTCOME 2 Increased knowledge of stakeholders at regional and national levels on climate resilient technologies issues Output 2.1 Total 330,000 Training reports Institution and individuals Capacities of stakeholders at regional Consultancy trainer for Number of training interested in the thematic and national levels on climate resilient manufactures and workshops carried out with technologies are strengthened importers(2 regional targeted audience (understanding of labeling and training) 10,000 Number of participants in standards for manufacturers, importers, Consultancy trainer for the workshop customs, maintenance and installation customs officers(2 regional contractors training 10,000 Consultancy trainers for contractors(2 regional training)10, 000 Regional training workshop 300,000 Output 2.2 Total 350,000 Number of national Training report s Interest of financial Capacities of stakeholders at regional Consultancy trainer for financial mechanisms in institution to participate in and national levels on financial public sector in potential place for climate smart Training manual produced the process mechanisms to support the uptake of financial mechanism(3 technologies climate smart technologies by the public regional training on Number of beneficiaries of and businesses based on peer learning specific topic) 50,000 financial schemes and exchange of experiences are Consultancy trainer for Production of one training strengthened banking sector on manual mainstreaming Energy

Objectives Budget needs Measurable indicators Means of verification Important assumptions USD (Over 4 years) efficiency into banking sector( 2 regional training on identified topics) 50,000 Regional training workshops 5: 250,000 Output 2.3 Total 20,000 Number of training Training report s Endorsement by COMESA Capacities of COMESA secretariat on Consultancy for trainers on workshop carried out council of ministers climate resilient technologies issues climate change Number of participant in and financial mechanisms are technologies issues the training workshop strengthened 10,000 Consultancy for trainer on financial mechanism 10,000 OUTCOME 3: Increased awareness and knowledge on climate resilient technologies issues of the general public and businesses

Output 3.1 An innovative, targeted Total 465,000 Number of article in the Newspaper Interest from targeted regional education and awareness Consultancy to develop national press National TV programme audience in the thematic campaign for all stakeholders on innovative regional National workshop reports Support of national energy efficiency, water efficiency and campaign:20,000 At least one TV Sample of information stakeholders for climate smart technologies issues is developed and implemented Travel :5,000 documentary produced leaflets implementation Production of TV and broadcasted on documentary: 50,000 national channels Write up press releases: 5,000 Information leaflets Production of information produced in several leaflets :100,000 languages National workshops 15,000 per countries: Number of national 285,000 workshops organised and

Objectives Budget needs Measurable indicators Means of verification Important assumptions USD (Over 4 years) number of participants Output 3.2 Total 65,000 Monitoring report of the Support from COMESA Establish a regional platform on climate Consultancy to design and Number of article ,links website, IT section resilient technologies to disseminate host the web site :25,000 disseminated uploaded feedback from users Internet access is working information and results of the research Number of visitors on the conditions Consultancy to update website information on the website 10,000/year :40,000 Output 3.3 Total 10,000 Monitoring report of the Support from COMESA IT Set up an online database on minimum Consultancy to design Number of users website section standards and labeling on climate and create data base: Feedback from users resilient technologies in the COMESA 10,000 region OUTCOME 4: Identify appropriate financing mechanisms to support adoption of climate smart resilient technologies by vulnerable communities

Output 4.1 Total 75,000 Report produced Regional sharing Existing on-going best Assessment and sharing of existing Consultancy:20,000 Number of participant at experience workshop practices best practises within the COMESA Travel 5,000 regional workshop Report conducted 1 regional workshop:50,000 Output 4.2 Total 80,000 One guidelines document Validation workshop report Endorsement by council of Guidelines on financing mechanisms to Consultancy: 25,000 produced ministers of COMESA support the adoption of climate smart Travel;5,000 technologies by the communities and Validation businesses are developed workshop:50,000 Output 4.3 Total :155,000 5 feasibility studies Validation workshop Support from ministry At least 5 feasibility studies for regional Consultancy:20, 000 produced Reports responsible for finance in or national selected financial /financial scheme :100,000 selected countries mechanisms are conducted 5 national validation

Objectives Budget needs Measurable indicators Means of verification Important assumptions USD (Over 4 years) workshops:50,000 Travel :5,000

SECTION 7: Budget

Item Cost (4 years)USD 190,000 OUTCOME 1 : Improved Consultancies regional policy, institutional, Travel 15,000 legal/regulatory and financial Regional Workshops 150,000 framework for climate Pilot projects 500,000 resilient technologies Sub-total outcome 1: 855,000 OUTCOME 2: Increased Consultancies 150,000 knowledge of stakeholders at Regional workshops 550,000 regional and national levels on climate resilient 700,000 technologies issues Sub-total outcome 2: OUTCOME 3: Improved Consultancies 95,000 awareness and education of Travel 5,000 targeted audiences on Regional Workshops 285,000 climate resilient technologies Educational and awareness materials 155,000

Sub-total outcome 3: 540,000

OUTCOME 4: Establishment Consultancies 145,000 of financing mechanisms to Travel 15,000 support adoption of climate Regional Workshops 150,000 smart resilient technologies by the communities and Sub-total outcome 4: 310,000 businesses Total all outcome 2,405,000 Management fee COMESA 240,500 (10%) GRAND TOTAL 2,645,500

Annex 1 Exiting Labels and Energy Performance standards in COMESA region

Egypt10

The Egyptian Energy Strategy was implemented in 1979 with a range of aims, including the development of national energy efficiency codes and strategies. Due to political changes, it was a long period of time before Egypt first introduced mandatory standards and labels in 2002/03. Two key long standing stakeholders are the Organisation for Energy Planning (OEP) and the Egyptian Organisation for Standardisation (EOS). These organisations work with other standards and labeling stakeholders in Egypt, including appliance and equipment manufacturers.

1) Energy Performance Standards First implemented in 2003, Egypt now has mandatory Energy Performance Standards for a range of products as shown below:  Refrigerators 2003 2006  Room air conditioners 2003  Clothes washers 2006  Freezers 2006  Refrigerator/freezers 2006  Water heaters 2007  Small 3-phase electric motors 2008  Transformers 2008  2009 – CFLs (voluntary, under revision)  In consideration – lighting systems 2) Label First introduced in 2003, the label is based of the EU labeling scheme. This label was selected after taking into account Egyptian culture, education levels and lessons learnt from other countries, and involved a detailed consultation process.

Kenya11

In 2004, the Kenyan government made energy efficiency a priority as part of the National Energy Policy. The Government stated that it ‘recognised the need to remove barriers and constraints to the adoption of energy efficiency and conservation technologies, and will therefore put appropriate measures into place’. Through the Ministry of Energy, the Kenyan Government committed itself to supporting the Energy Efficiency and Conservation Centre, and published the Energy Act which was passed into law in 2006. Working with the UNDP and 4 other East African countries (Burundi, Rwanda, Tanzania and Uganda), Kenya worked to develop its national Standards and Labeling program, with a 5 year initiative designed to remove barriers to market transformation of energy efficient products and services. The key stakeholders in this process in Kenya include the Kenya Bureau of Standards, Kenya Revenue Authority, Ministry of Energy, Energy Regulatory Commission, Kenya Anti-Counterfeiting Agency, and the National Environment Management Authority. The Kenyan Ministry of Industrialisation is leading the UNDP-GEF funded standards and labeling program development. Three products are slated to be the first to be subject to mandatory comparative labeling – CFLs, 3- phase motors, refrigerators and room air conditioners. This scheme is currently under development but will based on the EU labeling scheme, and expected to start sometime in 2015. Kenya also looking at implementing mandatory Energy Performance Standards for a range of products 2013 including – ballasts, fluorescent lamps, 3-phase motors, refrigerators and room air conditioners. These have been developed and approved by the Kenyan Bureau of Standards, with the Kenyan Energy Commission drafting the relevant regulations. They are loosely based around the EU/Australian Energy Performance Standards. Energy Performance Standards are also planned for a number of products in 2015 (with draft Standards to be gazetted towards the end of 2014) – refrigerated cabinets (voluntary agreement, using Australian levels), fluorescent tube lamps, and hotel air conditioners (voluntary agreement).

The Republic of Mauritius12

The Mauritius Standards Bureau has recently introduced energy labeling standards for several electrical appliances to help consumers choose products which save energy. With the assistance of UNDP/GEF. The energy labels are essentially informative labels that will be affixed on each appliance at the point of sale, in order to provide consumers with the data necessary for making informed purchases. They indicate a product’s energy performance and rank products according to their energy efficiency consumption on an A to G scale, the A class (green) being the most energy efficient appliance and the G class (red) the least. Relevant standards have also been developed to measure the energy consumption and other information concerning the product, declared on the label. Improving the efficiency of energy-related products through informed consumer choice benefits the national economy overall. The Mauritian Standards for energy labeling are based on the EU energy labeling model, while those for energy performance have been based on relevant EN or ISO standards. Mauritian Standards have been developed for room air conditioner (RAC) and refrigerators and freezers. Standards are being developed for compact fluorescent lamps (CFLs) and household washing machines and are currently at draft stage for public comment. Other coming standards on energy labeling and energy performance will include the following appliances: 1. Microwave Ovens 2. Dishwashers 3. Clothes Dryers 4. Electric Water Heater (Instantaneous) 5. Electric Water Heater (Storage)

12 The Mauritius Standard Bureau