Third Interim Narrative Report to the European Commission for the Period May 2016 – April 2017

Implementation the “Greening Economies in the Eastern Neighbourhood” (EaP GREEN) Project in the period 1 January 2014 – 30 April 2017 Third Interim Narrative Report to the European Commission for the period May 2016 – April 2017

Submitted to the European Commission on 28 August 2017

The report presents progress made under the “Greening Economies in the Eastern Neighbourhood” (EaP GREEN) Project. It covers the period from 1 January 2014 to 30 April 2017 showing achievements and activities in four reporting periods: i) January-December 2014, ii) January – December 2015, iii) January - April 2016 and iv) May 2016 – April 2017. It follows the first “Interim Narrative Report on progress in implementing the Project in 2013” submitted to the European Commission in April 2014 and the second “Interim Narrative Report on progress in implementing the Project in January 2014 - April 2016” submitted on 5 August 2016.

The narrative report is based on contributions from the four Implementing Partners: UNECE, UNEP, UNIDO and OECD. Its structure was discussed and agreed among the Partners, and with the EC DG NEAR Programme Manager at the Management Group video conference on 6 March 2015.

This report is accompanied by a financial report on expenditures incurred by OECD, UNIDO and UNECE under the Project during the period January 2013 – April 2017.Relevant supporting documents are available via Internet hyperlinks in the text and from the EaP GREEN site (http://www.green-economies- eap.org/).

Action: Greening Economies in the Eastern Neighbourhood

Project acronym: EaP GREEN

Donor name: European Union

Period covered: 01/01/2014 – 30/04/2017

Grant number (OECD): DI120601

CRIS contract number: ENPI/2012/305-729

Start date of activities: 01/01/2013

End date of activities: 31/12/2016 (extended to 31/12/2017)

CRIS contract description: Specific objectives are: 1. to mainstream sustainable consumption and production into national development plans, legislation and regulatory framework with a view to provide a sound legal basis for future policy development; 2. to achieve a shift to green economy through the adaptation and adoption of sustainable consumption and production practices and techniques in selected economic sectors; 3. to promote the use of the SEA and EIA as planning tools for environmentally sustainable development

Target countries: Six Eastern Partnership countries

Partners: UNECE, UNEP, UNIDO, OECD

Contact person: Ms. Kumi Kitamori Head of Division Green Growth and Global Relations Division Environment Directorate OECD tel: +33 1 45 24 92 02 fax: + 33 1 44 30 61 83 e-mail: [email protected]

TABLE OF CONTENTS

TABLE OF CONTENTS ...... 3 HIGHLIGHTS OF PROGRESS IN THE PERIOD MAY 2016-APRIL 2017 ...... 4 1. Introduction ...... 4 2. Project overview ...... 4 3. Progress in implementation ...... 5 4. Follow up to the EU Result Oriented Monitoring (ROM) ...... 6 5. Coordination and communication ...... 7 6. Budget disbursement ...... 8 7. Planning for the remaining period of implementation ...... 8 8. Implementation risks ...... 8 9. Longer-term outlook and policy recommendations ...... 9 PART 1: INTRODUCTION ...... 10 1. Political framework for the Project ...... 10 2. Objectives ...... 10 3. Structure ...... 11 4. Management and division of responsibilities between EaP GREEN Partners...... 12 PART 2: OVERVIEW OF ACHIEVEMENTS AND CHALLENGES IN THE REPORTING PERIOD .. 12 1. Overall progress in 2014 ...... 13 2. Overall progress in 2015 ...... 16 3. Overall progress in the period January – April 2016 ...... 20 4. Overall progress in the period May 2016 – April 2017 ...... 22 5. Work plan for the Project remaining period ...... 26 6. Implementation risks ...... 27 7. Areas where reinforced support from the European Commission will be needed ...... 27 ...... 27 PART 3: PROGRESS ON COMPONENT ACTIVITIES ...... 28 Component 1: “Governance and finance tools” ...... 28 Component 2 “SEA and EIA promotion” ...... 62 Component 3 “Demonstration Projects” ...... 95 PART 4: MANAGEMENT AND COMMUNICATION ...... 130 Project Management ...... 130 Implementation of the Communication Strategy ...... 134 ANNEX 1. LIST OF NATIONAL FOCAL POINTS ...... 139

HIGHLIGHTS OF PROGRESS IN THE PERIOD MAY 2016-APRIL 2017

1. Introduction

1. This Narrative Report consists of five parts:

 The Highlights present progress in the Project implementation during the last reporting period: May 2016-April 2017;

 Part 1 presents the overall context of the Project the key objectives, Project structure and its management frameworks;

 Part 2 describes the overall progress in implementing the Project during four review periods: i) 2014, ii) 2015, iii) January-April 2016 and iv) May – April 2017. The main elements presented are: the key achievements, web links, challenges and the plans for the Project remaining period;

 Part 3 gives a detailed account of the Project activities carried out under each of the Project Components during four review periods;

 Part 4 offers details of the activities carried out to ensure smooth implementation and coordination of the Project and explains progress in implementing the Project communication activities during the four review periods.

2. Parts 2 to 4 are supported by tables with a detailed account of activities implemented at the regional and regional level and the results achieved.

2. Project overview

3. The EaP GREEN helps six countries of the European Union’s Eastern Partnership (EaP): Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine in moving towards a green economy. The Project aims to mainstream sustainable consumption and production (SCP) into national development plans, legislation and regulatory frameworks, promote shift to green economy in selected economic sectors and promote the use of Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA). The reforms are in line with the regional and international agreements and processes and consistent with the existing EU acquis in the relevant policy areas.

4. The Project brings together government authorities, principally the Environment and Economic Ministries and also those in charge of finance, industry, agriculture and statistics, as well as the enterprise sector in the EaP countries. The International Financial Institutions (IFIs) and the domestic banking sector are important partners. The Project activities are implemented in close consultation with the NGO community and coordinated with other relevant projects in the six EaP countries funded by the EU and other donors.

3. Progress in implementation

5. After substantial efforts put in place in 2013 to engage the EaP countries in the programme implementation, to develop the governance structure and to establish coordination routines among the implementing partners, the beneficiary countries and the EC, the emphasis was placed on launching and implementing country-based projects in all EaP countries in 2014 and advancing and consolidating the results of in-country activities in 2015 and 2016.

6. During the most recent reporting period (May 2016 – April 2017) all activities envisaged under the Work Plans adopted by the 5th meeting of the EaP GREEN Steering Group (10-11 February 2016, Brussels) were further implemented with many of the outputs being completed or at the last stages of finalisation. Evidence presented below show that several activities triggered the actual policy and regulatory reform, (esp. in the areas of developing green economy policies and reforming SEA/EIA), change of practices (green growth indicators and sustainable public procurement) and built capacities in individual countries (e.g. RECP and SEA/EIA). Some of the pilot and demonstration projects implemented under the Project brought about tangible and measurable monetary and environmental benefits, especially in relation to RECP and greening SMEs, sustainable public procurement, organic agriculture, SEA and environmentally harmful subsidies.

7. More specifically, during the review period the following progress in individual countries and at the regional level towards reaching the Project outputs planned in the original Description of the Action:

 Under Component 1 efforts allowed the completion of the National Green Economy Road Map in Moldova and the adoption of the National Green Economy Action Plan (2016-2020) in Belarus. Progress was also made in carrying out underlying analysis for developing green economy strategies in Georgia and Ukraine and further strengthening inter-ministerial coordination and dialogue on green economy related activities among key ministries. Regionally, the Project significantly contributed to the development and endorsement of the pan-European Strategic Framework on Greening Economies and the launch of the Batumi Initiative on Green Economy (BIG-E) at the Environment for Europe Ministerial Conference, 8-10 June, 2016, Batumi, Georgia. It also generated the submission of concrete individual commitments on greening the economies by most of the EaP countries.

Further progress was also made on completing indicator-based reports on greening the economies in Armenia, Azerbaijan, Georgia and Ukraine and setting up institutional structures for green measurement framework in those countries. In the area of environmental harmful subsidies the reviews were completed and validated for all countries. In the area of sustainable public procurement the institutional framework was strengthened, as well as the market capacity assessed for the supply of prioritized sustainable product groups in Belarus.

 Under Component 2 following earlier in-depth reviews of the legislative and institutional frameworks for the application of SEA and EIA four important pieces of legislation were adopted: a new Law on State Ecological Expertise, SEA and EIA in Belarus, a new Environmental Assessment Code in Georgia, a new Law on SEA in Moldova and a Law on SEA and the Law on EIA in Ukraine.1 All these developments provided much improved legal framework and brought it

1 The new laws subsequently vetoed by the President of Ukraine in October 2016. Following a request from the Ministry of Ecology and Natural Resources, the legal opinions on both laws were prepared and communicated to the Ministry by the official letters in February 2017. The revised drafts were re-submitted to the Parliament in March 2017. The revised Law on EIA was adopted on 23 May 2017 while the revised Law on SEA passed the first reading the same day. After the amendments both law are expected to be approved by the President.

into compliance with the UNECE Espoo Convention and its Protocols. With regard to pilot projects a report summarizing the findings and conclusions of the pilot SEA of the National Strategy of Azerbaijan on the Use of Alternative and Renewable Energy Sources 2015-2020 was completed and work advanced on the pilot SEAs in Armenia and Moldova. Further training was provided on the practical application of SEA and several national level guidance documents were drafted. At the regional level, the ”Good Practice Recommendations on the Application of the Convention to Nuclear Energy-related Activities” were finalized and revised by the Working Group on EIA and the Bureau to the Espoo Convention, respectively.

 Under Component 3 substantial progress was made in implementing quick RECP solutions/options identified through the RECP assessments and engaging new companies in all six countries. It was combined with extensive training and coaching programmes for national experts in all EaP countries to equip them with the necessary knowledge and skills for conducting RECP assessments in SMEs. In parallel acquisition of RECP support monitoring equipment was completed in Armenia, Belarus and Georgia and hands-on trainings provided on its use in the dairy, chemicals and construction materials sectors.

Second round of RECP clubs was completed in each country culminating with award of certificates upon submission of RECP plans. Final National RECP Conferences, that brought together more than 500 participants from governmental sector, businesses, NGOs, private sector associations, academia and civil society in all EaP countries, showed significant economic and environmental savings resulting from the RECP assessment. To maintain the sustainability of the Project results, service units were selected in each country on the basis of open tenders to take over human, intellectual and technical capacities accumulated during the four years of project implementation to widen their own portfolio of services. Upon demand from the national teams in Armenia and Ukraine training for RECP Clubs Facilitator and a specialized RECP Learning courses were developed for universities.

In the area of sustainable public procurement practical trainings were provided to public procurers and economic operators affected by the newly introduced sustainability criteria for public tenders to ensure and advance the application of SPP in EaP countries and prepare the launch of pilot tenders. Moldova and Ukraine further advanced the development of Sustainable Public Procurement communication tools, such as practical guidelines, websites, handbooks and presentations.

In the area of organic farming the last deliverables of this component were completed including a compilation of success stories of organic exporters in Moldova, Ukraine, and Armenia that analyse enabling factors for exports of organic products to international markets. In 2016, 11 Ukrainian companies participated as exhibitors at BioFach 2016 in Nuremberg (Germany), which led to contracts with a total value of over USD 10 million. In the same year, four Moldovan and five Armenian exhibitors participated in the Natural and Organic Products Expo Europe in London, where they met with 15-20 companies on average, helping them to better understand market demands and build up a business network. One Moldovan producer reported 2% of his sales resulted from contracts following his participation in the trade show.

4. Follow up to the EU Result Oriented Monitoring (ROM)

8. Following the EU Result Oriented Monitoring (ROM) of the EaP GREEN carried out in 2015- 2016 and the adoption of a 15 point action plan to implement the nine ROM’s recommendations in April

2016 several actions have been taken.2 The implementation of the Action Plan was monitored in close contact with DG NEAR which to date resulted in:

 under Recommendations 1, 8 and 9: i) discussing with Partners and finalising the restructured work plans for 2016 with the identification of activities under the possible extension to 2017, ii) providing evidence for the need for a cost neutral extension, requesting and obtaining a cost neutral extension), and iii) providing additional support to designated National Focal Points (see Management and Communication Section);  under Recommendation 2: ensuring expeditious implementation of the remaining activities and ensuring closer linkages between activities under the Project (as for example on greening SMEs and green finance, green economy strategies and green growth indicators, or green economy and green finance)  under Recommendations 3 and 9: enhancing communication activities with a particular emphasis on high level meetings as presented under Management and Communication Section;  under Recommendations 5, 7 and 9: i) organisation of national conferences to disseminate RECP results (see Component 3), ii) ensuring mentoring trained trainer (see Components 2 and 3) and ensuring cooperation with the EU SME Flagship Initiative and improvement of communication with EBRD and EIB (see Components 1 and 3);  under Recommendation 9: arranging regular calls and meetings of the Management Group to review progress and make plans for the upcoming activities (see Management and Communication Section).

5. Coordination and communication

9. During the period May 2016 – April 2017 the Project implementation was subject to extensive co-ordination through its Management Group (EU/DG NEAR and the EaP GREEN Partners) and the Action Implementation and Coordination Committee (AICC - EaP GREEN Partners). The Management Group met four times while the AICC maintained frequent and regular exchanges via phone and in person at the occasion of join activities. Both bodies discussed technical issues related to the work plans and budget implementation, ROM’s follow up, preparations of the EaP GREEN inputs to the high level meetings, as well as the communication and co-ordination with other programmes and projects.

10. Co-ordination also involved the implementation of the EaP GREEN Steering Committee decision on the budget neutral extension of the EaP GREEN Project from the original end date of 31 December 2016 to 31 December 2017. Following a positive decision of the European Commission in August 2016 the procedures included the amendments of contract between the EC and the OECD and between the OECD and the Partners, the amendments to the Description of the Action, budgets and payment schedules. The amendment procedure for all contracts extension was completed by end of 2016.

11. Important steps were taken to implement the Project Communication Strategy that had been adopted in September 2013. A number of actions previously launched have been reinforced, which included: maintenance of a dedicated EaP GREEN Project web site in English and Russian; dissemination of information about the Project activities, its outputs and impacts through press releases, articles and video

2 The ROM was a routine monitoring exercise carried out at the end of 2015 with the objective of providing an external review of the Project implementation in order to support project management by the EC Headquarter services. The overall “monitoring scores” of the ROM were moderately positive: relevance, effectiveness and sustainability were marked as “green” while efficiency as “yellow”. Out of 32 specific monitoring points, 20 were assessed as “very good/good” and 12 as “experiencing some problems”. None was marked as having serious deficiencies.

clips and news; preparation and dissemination of the Project comprehensive brochure, informative leaflets and country updates that presented work in individual EaP countries.

12. Particular emphasis was made to prepare and disseminate information about the Project at two high level events: the EU EaP Ministerial meeting on Environment and Climate Change (18 October, 2016 in Luxembourg) and the “Environment for Europe” Ministerial Conference (8-10 June 2016, Batumi, Georgia)

 inputs to the EaP Ministerial included a presentation of the Project results at the Ministerial dinner and the meeting itself as well as the presentation of an EaP GREEN brochure that summarised the main results. The Project was singled out as an example to follow in the EaP Declaration on Environment and Climate Change that was adopted by the Minsters;

 during the Ministerial Conference in Batumi, the Project organised a high level side event that involved the Ministers from the EaP countries and high level officials from the EU, OECD, UNECE, UN Environment and UNIDO.3 A publication and communication stand that was set up in Batumi provided an opportunity to disseminate information about the Project to more than 2 000 participants of the conference. The Project also helped the EaP countries to formulate and officially announce specific green economy commitments as part of the Batumi Initiative on Green Economy (BIG-E).

13. The Project provided also important contributions to the EU EaP Panel on Environment and Climate Change meeting (3 March 2017, Brussels). This inputs comprised a comprehensive brochure with detailed activities and their results, a presentation of the Project results (supported by interventions from the EaP countries) and inputs to the Action Plan for the implementation of the EaP Declaration on Environment and Climate Change.

6. Budget disbursement

14. See separate consolidated Financial Report for the period 1 January 2013 – April 2017.

7. Planning for the remaining period of implementation

15. Detailed work plans of activities adopted following the discussion at the 5th meeting of the Steering Committee in February 2016 and a revised Description of the Action prepared at the time of the Project extension remain a basis for the completion of the Project by the end of December 2017. They take account of the conclusions and recommendation of the ROM, discussions of the country priorities and communications, and a budget neutral extension of the Project. In the final stage of the Project efforts will focus on consolidating and documenting the results, their dissemination and organising meetings to discuss the lessons learned, remaining challenges and recommendations for the future work.

8. Implementation risks

16. All risks identified in the Description of Action, including frequent administrative reforms, unstable political situation in some of the countries, limited resources and low priority attached to green issues, remain valid though they are less profound now than in the past. To mitigate the risks the Project already established strong links with top decision-makers to generate commitments, ownership and sustainability of activities. The EaP Ministerial and the “Environment for Europe” Conferences were used

3 The meeting was attended by around 70 participants of the Batumi Conference.

to generate these links. These efforts will be supplemented by the development of key messages to policy- makers supported by evidence based analysis. Maintaining the links to the Association Agreements process will continue to be an effective tool to mobilise the political support to reform.

17. The Project will also consolidate the results and disseminate them to the in-country and international audiences, including at the final EaP GREEN Conference and the EaP Panel on Environment and Climate Change. The final months of the Project will be used reinforce in-country commitment and capacities to green their economies on a continuous and more self-sustained basis.

9. Longer-term outlook and policy recommendations

18. At its meeting in February 2016 the EaP GREEN Steering Committee members acknowledged that the EaP GREEN project became an important platform for co-operation to promote green growth and that it showed a much more mature co-operative spirit between the EaP countries, the European Union and the Implementing Partners which is built on a growing number of concrete project results.

19. The Ministerial meetings in Luxembourg and Batumi reinforced these views and called for a continuation of support to the greening of the economies in the region. In all the discussions the EaP countries underlined that the experience and national coordination capacities accumulated within the EaP GREEN, including networks and instruments developed so far, should be maintained after the Project ends with the emphasis on the key pioneering features of the Project that include:

 Bringing together environment and economic policy development in the region within the concept of greening the economy;

 Engaging Ministries of Economy, of Environment and national stakeholders simultaneously to identify and develop the specific policies and instruments to green economies;

 Developing methodological and conceptual material based on international good practice adapted to the country conditions and needs;

 Quantifying where feasible the outcomes and impacts in order to show benefits of the activities or costs of non-action;

 Providing independent, objective and evidence-based analyses based on sound and robust economic and financial principles and implemented in-country pilot projects to demonstrate how policies and tools can be applied in practice;

 Developing strong partnerships among international organisations to co-ordinate their work and strengthen co-ordination among donors and established links with non-EU members and International Finance Institutions (IFIs) to better target development co-operation efforts and mobilise additional financing;

 Linking the expertise of the EU, UN and OECD member countries from the established networks, including expertise from other transition economies; and

 Bringing about tangible outcomes in the form of regulatory, methodological and practice changes in the EaP countries and linking them to wider national economic development and international processes.

PART 1: INTRODUCTION

1. Political framework for the Project

20. The green economic growth aims at increased well-being while preserving natural capital and ensuring environmental sustainability. Internationally, commitments to green economy were spelled out in a number of policy documents adopted around the “Rio+20” Earth Summit in 2012. The European Union committed to implementing green growth in 2010 by adopting the “Europe 2020: A European Strategy for Smart, Sustainable and Inclusive Growth”. The strategy called for building a resource efficient, sustainable and competitive economy, exploiting Europe's leadership in the race to develop new processes and technologies, including green technologies, accelerating the roll out of smart grids using ICTs, exploiting EU-scale networks, and reinforcing the competitive advantages of our businesses, particularly in manufacturing and within our SMEs, as well through assisting consumers to value resource efficiency. The project is also a building block of the implementation of the 2030 Agenda for Sustainable Development aiming at ensuring the achievement of the Sustainable Development Goals adopted nu Heads of States and Governments in 2015.

21. Members of the Eastern Partnership4 (EaP) of the European Union (EU) also committed themselves to the goal of a transition towards green economy. At the national level green economy and sustainable development have been recognised as “guiding principles” in a number of national development strategies in EaP countries (e.g. “Azerbaijan 2020” and “Moldova 2020”). Not only their titles, but also some of their priorities are aligned with the “Europe 2020”.

22. In a regional perspective, the important commitments within the EaP were made in the Declaration of the 2011 Warsaw “Eastern Partnership” Summit and in 2013 at the Vilnius Summit of the EaP. The commitment to greening the economy was also an important part of the Association Agreements signed between the EU and Georgia, Moldova and Ukraine in June 2014. The agreements called for enhanced environment protection to bring benefits to citizens and businesses, including through improved public health, preserved natural resources, increased economic and environmental efficiency, as well as use of modern, cleaner technologies contributing to more sustainable production patterns.

2. Objectives

23. The “Greening Economies in the Eastern Neighbourhood” (EaP GREEN) Project targets six countries of the European Union’s Eastern Partnership (EaP): Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine. The project overall objective is for the EaP countries to move towards a green economy by decoupling economic growth from environmental degradation and resource depletion. More specifically, the Project aims to:

 Mainstream sustainable consumption and production (SCP) into national development plans, legislation and regulatory frameworks with a view to provide a sound legal basis for future policy development, in line with the regional and international agreements and processes and consistently with the existing EU acquis in the relevant policy areas;

4 The Prague Summit in May 2009 launched the Eastern Partnership as a specific dimension of the European Neighbourhood Policy, to further support Eastern European countries’ reform processes and thus accelerate their political association and economic integration with the European Union. Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine are members of the Eastern Partnership.

 Promote the use of Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA) as essential planning tools for an environmentally sustainable economic development;

 Achieve a sector-level shift to green economy through the adaptation and adoption of sustainable consumption and production practices and techniques in selected economic sectors (manufacturing, agriculture, food production and processing, construction).

24. The EaP GREEN is a means for EaP countries to progress faster on their path to green economy. The project aims to improve both public policies and management approaches applied by the private sector actors. Such improvements should result in higher productivity thus competitiveness on global markets, better management of natural capital, enhanced environmental quality of life, more resilient ecosystems and economies alike, and new business and export opportunities.

3. Structure

25. The Project is structured around three components (Figure 1): (1) governance and financing tools; (2) Strategic Environmental Assessment (SEA) and Environmental Impact Assessment (EIA) accompanying policy development; and (3) demonstration projects. Although the project is regional, many of its activities are implemented nationally and the results are shared in various regional forums. The Project is also responding to strengthening and diversification of the relations between the EaP countries and the EU following the signature of the Association Agreements and Deep and Comprehensive Free Trade Area between the EU and the three countries (Georgia, Moldova and Ukraine) in June 2014.

Figure 1. Architecture of the EaP GREEN project

1.1: Strategic policy setting 2.1: Revision of the existing 3.1: Development of capacity for 1.2: Green growth indicators national regulatory and RECP (Resource Efficient and legislative frameworks Cleaner Production) 1.3: Identifying environmentally harmful subsidies and launching 2.2: Capacity building on SEA/EIA 3.2: RECP implementation,

subsidy reform procedures, following good dissemination and replication SEA and EIA and SEA practices including those in use 3.3: RECP technology support

1.4: Creating market incentives in the EU

COMPONENT COMPONENT 2: COMPONENT 3: COMPONENT COMPONENT 1: for greener products 3.4: Sustainable public 2.3: Strengthening the procurement 1.5: Improving investment administrative capacities of the

policies and access to finance authorities in charge of the 3.5: Promoting organic Demonstration projects Demonstration Governance andfinance Governance 1.6: Greening of SMEs environmental assessments agriculture 1.7: Promoting green procurement practices

26. The project is targeted primarily at government authorities and the enterprise sector in the EaP countries. Various government ministries and institutions are involved in its activities, most importantly ministries of environment, ministries of economy, ministries of finance, national statistical offices and sectoral ministries. The International Financial Institutions (IFIs) and the domestic banking sector representatives are important partners as well. The project is implemented in close consultation with the NGO community. Its activities are coordinated with other relevant projects in the six EaP countries from the EU as well as otherwise funded.

27. The project is supported by the European Commission and other donors, including the four implementing partners. The total EaP GREEN budget for an implementation period of 48 months (January 2013 – December 2016) is 12.5 million Euros.

4. Management and division of responsibilities between EaP GREEN Partners

28. The implementation of the Project is overseen by the Steering Committee composed of representatives of the beneficiary countries, the four implementing organisations (OECD, UNECE, UNIDO and UNEP) and the European Commission. The Action Steering Committee meets annually to discuss progress with the delivery of the Project substantive products and its impact, including issues that impede the Project implementation and ways how they might be alleviated; policy recommendations provided to countries, and information on the Eastern Partnership country efforts to reform their policies in line with policy recommendations provided within the Project.

29. The Project smooth implementation is ensured by

 Management Group that regularly brings together representatives from relevant EC services (including DG NEAR, DG ENV, the EEAS) and the OECD, UNECE, UNIDO and UNEP to discuss the main challenges and difficulties encountered in the Project implementation and to advise on the way forward and

 Action Implementation and Coordination Committee that comprise representatives of the OECD and each UN Partner that ensures day-to-day Project implementation and co-ordination.

30. Four partner organisations are responsible for different elements of the project:

 OECD (Organisation for Economic Co-operation and Development) serves as coordinator of the project, and support the implementation of market-based approaches to promote green growth and the reform of environmentally-harmful subsidies, the greening of banks and small- and medium- sized enterprises, and the adoption of green growth indicators;

 UNECE (United Nations Economic Commission for Europe) supports the implementation of strategic environmental assessments and environmental impact assessments of national development activities;

 UNEP (United Nations Environmental Programme) helps mainstream sustainable production and consumption in national policies through strategic policy setting, as well as help countries implement sustainable public procurement and organic agriculture policies and practices;

 UNIDO (United Nations Industrial Development Organization) assists private sector actors adopt resource efficient and cleaner production practices and techniques.

31. This implementation arrangement offers the benefit of using, in a highly synergetic way, the comparative advantages and experience of working in the region and expert networks of these four important players in the area of green economy.

PART 2: OVERVIEW OF ACHIEVEMENTS AND CHALLENGES IN THE REPORTING PERIOD

1. Overall progress in 2014

32. The year 2014 was the second year of the EaP GREEN project implementation. After substantial efforts put in place in 2013 to engage the EaP countries in the project implementation, to establish work and coordination routines among the implementing partners, the beneficiary countries and the EC, and to develop the governance structure, the emphasis in 2014 was placed on launching and implementing country-based projects in all EaP countries. These activities followed the 2014 work plan which was approved at the Second Steering Committee Meeting in September 2013. Emphasis was also placed on developing a communication strategy and additional means for disseminating information about the EaP GREEN, individual activities and progress in their implementation.

33. Overall, substantial progress has been made on all Project elements resulting in important achievements in individual countries and at the regional level (Table 1). The implementation of the EaP GREEN was on track on all three components:

 Under Component 1 substantial progress was made on: i) launching quantitative sectoral analyses to demonstrate environmental, economic and social benefits of a transition to a green economy in Belarus, Moldova and Ukraine, as a base for the subsequent development of strategic policy frameworks/action plans; ii) developing and building consensus on policy paths for greening SMEs and greening public procurement as well as launching country specific analysis of progress on greening SMEs in Armenia and Moldova and on greening public procurement in Moldova and Ukraine. Important advances were also made with developing a framework for assessing access to green financing and to create market incentives for greener products. Work on green growth indicators focused on analysing green growth measurement in Moldova and Ukraine.

 Under Component 2 in-depth reviews of the legislative and institutional frameworks for the application of SEA and EIA were carried out in Armenia, Azerbaijan, Belarus, Georgia and Moldova. The results of the reviews led to launching comprehensive reforms of the legislation in individual countries which will make the existing procedures for various assessment processes more coherent and aligned with the provisions of the UNECE Espoo Convention and the SEA Protocol as well as the EU SEA and EIA Directives. Post Project analysis procedures in a transboundary EIA was tested by Belarus and Ukraine and a pilot SEA was initiated in Moldova.

 Under Component 3 progress was made in establishing core projects teams to foster adaptation an adoption of resource efficient and cleaner production (RECP) in all six EaP countries, in carrying out detailed RECP assessments for selected companies and in providing training to complete qualifications for RECP expert awards. In addition, support was provided to Armenia, Moldova and Ukraine to enhance their knowledge of market opportunities and barriers and build capacities for production and trade of organic products.

Table 1. Examples of national-level achievements under the EaP GREEN in 2014

Country Examples of achievements  In-depth analysis of current practices on greening SMEs completed and an agreement on the incorporation of elements on SME greening into both the national SME Support Strategy and the Concept of a Green Economy;  Review of the legislative and institutional frameworks for the application of SEA and EIA completed; Armenia  Detailed RECP assessments of 11 enterprises launched out by national experts in cooperation with enterprise representatives and under guidance of international experts;  Awareness raised on opportunities linked to organic agriculture in the framework of a green economy through knowledge exchange among lighthouse farms, companies and international experts;  Review of the legislative and institutional frameworks for the application of SEA and EIA completed and followed by the development of draft changes to the legal framework; Azerbaijan  Detailed RECP assessments of 8 enterprises launched out by national experts in cooperation with enterprise representatives and under guidance of international experts;  Capacity strengthened on the approaches and potential of green economy and tools for green economy assessments of key government stakeholders, research institutes and NGOs;  Pilot testing of the post-project analysis procedure of a transboundary EIA in Belarus and Belarus Ukraine completed;  Detailed RECP assessments of 6 enterprises launched by national experts in cooperation with enterprise representatives and under guidance of international experts;  Capacity strengthened on the joint application of sustainable public procurement and eco- labelling;  Analytical documents for developing a draft Law on EIA and SEA completed and the development of draft legal framework initiated; Georgia  Detailed RECP assessments of 10 enterprises launched by national experts in cooperation with enterprise representatives and under guidance of international experts;  Quantitative green economy modelling analysis for three priority sectors carried out and approved by the government;  Inter-ministerial Working Group on Green Economy established;  Capacity strengthened on the approach and potential of green economy and tools for green economy assessments of key government stakeholders, research institutes and NGOs;  Reforms of two major environmentally-related subsidies (reduced VAT rates for the consumption of natural gas and of electricity in the residential sector) modelled, analysed and agreed upon;  In-depth analysis of current practices on greening SMEs completed;  Draft law on SEA submitted to the Parliament;  15 national experts are trained in practical application of SEA; Moldova  Local organic producers supported to exhibit their products at a local market in Chisinau;  Pilot study mapping producers of organic agriculture products and the perspective of partnerships between organic producers and educational institutions completed;  Detailed RECP assessments of 5 enterprises by national experts in cooperation with enterprise representatives and under guidance of international experts completed;  Review of sustainable public procurement legal framework completed, and draft National Sustainable Public Procurement Policy and Action Plan developed;  Capacity strengthened on the joint application of sustainable public procurement and eco- labelling;  4 priority products and services for Sustainable Public Procurement demonstration activities were identified (energy efficient doors and windows, organic fruits and vegetables);  Capacity strengthened on the approach and potential of green economy and tools for green economy assessments of key government stakeholders, research institutes and NGOs;  Review of sustainable public procurement legal framework completed and draft National Ukraine Sustainable Public Procurement Policy and Action Plan developed;  Pilot testing of the post-project analysis procedure of a transboundary EIA in Belarus and Ukraine completed;  Detailed RECP assessments of 5 enterprises by national experts in cooperation with

enterprise representatives and under guidance of international experts;  Capacity strengthened on the joint application of sustainable public procurement and eco- labelling;  Three priority products and services for Sustainable Public Procurement demonstration activities were identified (heat insulation materials, paintwork materials, washing and cleaning products).  Regional report on “Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus” prepared;  Regional report on Resource Efficiency Economic Outlook launched in Russian;  Regional consensus on a report “Creating Market Incentives for Greener Products”;  Regional consensus on the methodology for reviewing greening credit lines by the commercial banks;  Regional study tour on the “Application of Strategic Environmental Assessment at the national level in the field of urban planning, waste management, agriculture and energy sector’ conducted in the Czech Republic; EaP-wide  Regional conference on Post Project Analysis under the procedure of the Environmental Impact Assessment in a transboundary context and Regional Conference on how to identify strategic documents for SEA pilot projects;  Feasibility study on the value and introduction of a sub-regional organic standard carried out;  Market assessment report analyzing the organic sector in Armenia, Moldova and Ukraine prepared;  Regional capacity built and awareness raised on green economy, sustainable consumption and production, Strategic Environmental Assessment and sustainable public procurement;

34. Progress notwithstanding, the implementation of the Project was affected by a number of challenges in 2014. Most profound stemmed from the unstable political situation in all six countries:

 The situation in Ukraine was particularly difficult due to the revolutionary changes of the political regime that started in February 2014, the subsequent annexation of Crimea by the Russian Federation, the military conflict in the eastern part of the country throughout the year and the presidential and parliamentary elections, in May and October 2014 respectively.  In Azerbaijan, Armenia and Georgia the personal changes in public administration continued in 2014 following parliamentary elections in 2013.  In Moldova the parliamentary elections were held in the second half of 2014 and they impacted the operations of public administration for most of the year.  Some personal changes in the Ministry of Environment also affected co-operation with Belarus. 35. The Project implementation was also affected by delays in country responses to information requests and to the requests for expression of interest for launching individual projects. These delays were mostly linked to the political instabilities mentioned above but there were other influencing factors, such as:

 conflicts in attribution of competencies between ministries;  lack of overall strategies or leadership in implementation at national level;  limited absorption capacity in the administration (especially in Armenia, Georgia, Moldova or Ukraine);  low priority attached to green economy issues in the current political and economic situation. (especially Ukraine); or

 low priority for the implementation of EaP GREEN Project (Azerbaijan).  limited, or unco-ordinated delivery of information about country specific activities.

36. In Belarus, complicated and strict registration requirements and procedures, and a delay in the registration of EaP GREEN Project by the Government, made it difficult for the Project to advance its activities.

37. Although efforts were made to achieve a reasonable balance of activities among beneficiary countries, taking account of the interests they had expressed in particular during the start-up period in 2013, relatively more activities were undertaken in Georgia, Moldova and Ukraine. This may be related to the strengthening and diversification of the relations between the EaP countries and the EU following the signature of the Association Agreements and Deep and Comprehensive Free Trade Area between the EU and the three countries in June 2014. However, not all those activities were translated into concrete outcomes, except for Moldova where a number of important policy, regulatory and administrative reform was carried out.

2. Overall progress in 2015

38. The EaP GREEN work plan for 2015 was developed in September 2014 [ENV/EPOC/EAP(2014)3] and approved at the third Steering Committee Meeting on 8 October 2014 in Minsk, Belarus. The plan provided a detailed account of activities that would enable to advance reaching the Project objectives. To accelerate the review of progress and adjust planned activities it was agreed that the fourth Steering Committee meeting be held in June 2015 in Chisinau, Moldova.

39. The meeting in Chisinau allowed to adjust activities for 2015 and approved plans for 2016 until the end of the Project in December 2016 [ENV/EPOC/EAP(2015)9].

40. During 2015, further efforts were made to advance and consolidate the results of in-country activities and, more importantly, to trigger the regulatory reform as a result of analysis and capacity building efforts.

 Under Component 1 important progress was made, which resulted in particular in: i) launching specific policy and regulatory reform to green SMEs and to adopt national sustainable public procurement, ii) finalising quantitative sectoral analyses to demonstrate environmental, economic and social benefits of a transition to a green economy and initiating development of Green Economy Roadmaps; iii) widening and deepening the analysis of environmental harmful subsidies and access to finance for green investment, iv) finalising analysis of market incentives for greener products, and v) developing green growth measurement frameworks at the national and regional levels.

 Under Component 2 comprehensive legislative and institutional reforms of the SEA and EIA accelerated in individual countries to make the existing procedures for various assessment processes more coherent and aligned with the provisions of the UNECE Espoo Convention and the SEA Protocol as well as the EU SEA and EIA Directives. The reform process was supported by i) awareness raising activities among high level officials to show benefits of reform and to facilitate the adoption of the proposed changes in the legislation and ii) training for key stakeholders, in particular sectoral authorities, to clarify their roles and responsibilities in SEA and to provide them with an opportunity to gain knowledge about practical application of SEA for national strategic documents and workshops. To test the regulatory changes in practice five pilot projects on SEA were launched during the reporting period.

 Under Component 3 substantial progress was made in implementing quick RECP solutions/options identified through the RECP assessments and engaging new companies that will be assessed in the course of 2016. In parallel progress was made on rolling out combined training and coaching programme for national experts to equip them with the necessary knowledge and skills for conducting basic RECP assessments in SMEs. This contributed to increasing a number of experts trained and coached in application of basic RECP methods and techniques. In the area of sustainable public procurement support was provided for the establishment of institutions. Technical assistance was also provided to advance the application of SPP. In the area of organic farming several activities helped to create opportunities for importers and exporters of organic products to establish business contacts and to enhance their knowledge about crop-specific organic practices, national agricultural policies, organic certification procedures, as well as the marketing aspects of organic production. A wide range of awareness raising activities for the general public on organic production was also conducted.

41. A number of examples are presented in Table 2 that shows important achievements in individual countries and at the regional level resulting from the Project activities.

Table 2. Examples of national-level achievements under the EaP GREEN in 2015

Country Examples of achievements  Commitment by the Ministry of Economy to incorporating elements on SME greening into the national SME development Strategies;  Launching a pilot application of the SEA procedure of the “Strategic Development Plan, Road Map and Long Term Investment Plan for the Solid Waste Management Sector in Armenia”;  Establishment of a National Steering Committee to guide and monitor RECP Armenia Demonstration Projects;  Completion of 11 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Participation of the Armenian organic agriculture producers participated in one of the world’s largest organic trade fairs, Biofach;  Launching the application of SEA for the State Strategy on Alternative and Renewable Energy Resources Use in Azerbaijan for 2015-20 and training of 10 experts in the practical application of SEA;  Establishment of a National Steering Committee to guide and monitor RECP Azerbaijan Demonstration Projects;  Completion of 8 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Establishment of a Steering Committee for Sustainable Public Procurement (SPP);  Approval of the SPP Activity Implementation Plan;  Development of a new law on environmental expertise, SEA and EIA;  Awareness raised among sectoral and environmental authorities about the provisions of the Espoo Convention, the Protocol on SEA and the relevant EU Directives; Belarus  Draft bilateral agreement on transboundary EIA between Belarus and Poland was improved based on the recommendations of the pilot project on the post project analysis procedure;  Completion of 6 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Submission of a draft Environmental Assessment Code (EIA and SEA legislation) to the Parliament; Georgia  Training of 10 national experts on SEA procedures;  Launching a SEA pilot project on “National Waste Management Strategy and Action Plan of Georgia”;

 Establishment of a National Steering Committee to guide and monitor RECP Demonstration Projects;  Completion of 10 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Launching the development of a Green Economy Roadmap;  Establishment of the inter-ministerial working group on green economy and sustainable development;  Commitment by the Ministry of Economy to incorporating elements on SME greening into the national SME development Strategies;  Adoption of the National Sustainable Procurement Plan (SPP);  Establishment of the SPP Implementation Unit in charge of implementing the core activities of the SPP Action Plan;  Endorsement of the pilot projects’ policy recommendations to adjust the existing taxes on environmentally harmful products and developing sound extended producer responsibility schemes;  Completion of mapping between existing indicators and a set of green growth indicators;  Completion of the SEA for the Master Plan of Orhei Town;  Awareness raised among the high level officials from the sectoral authorities on SEA benefits, SEA procedure and the introduction of the national SEA system by adoption of Moldova the draft law on SEA;  Launching the pilot application of the draft law on SEA for the Green Economy Road Map;  Establishment of the National Steering Committee to guide and monitor RECP Demonstration Projects;  Completion of 5 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Completion of review of existing ecolabels, sustainability criteria and verification schemes as well as procurement guidelines for two prioritized product groups (energy-efficient doors and windows; and organic fruits and vegetables);  Awareness raised among children, teachers, farmers and the public at large on organic consumption and production through a broad communication campaign;  Training of 34 farmers and producers cultivating an agriculture area of more than 1100 ha on the principles and conversion to organic agriculture practices;  Initiation of the process of conversion from conventional to organic agriculture by 18 farmers;  Endorsement of the pilot projects’ policy recommendations to adjust the existing taxes on environmentally harmful products and developing sound extended producer responsibility schemes;  Completion of mapping between existing indicators and a set of green growth indicators and the development of a preliminary set of green growth indicators;  Decision reached to establish an inter-ministerial working group on green growth measurement;  Adoption of the National Sustainable Public Procurement Action Plan;  Awareness raised among sectoral and environmental authorities (including high level officials) on SEA benefits, SEA procedure and the new draft law on SEA;  Establishment of the National Steering Committee to guide and monitor RECP Ukraine Demonstration Projects;  Completion of 5 detailed RECP assessments of individual enterprises by the national experts in cooperation with enterprise representatives and under guidance of international experts;  Establishment of the SPP Implementation Unit in charge of implementing the core activities of the SPP Action Plan;  Completion of review of existing ecolabels and sustainability criteria for three prioritized product groups (heat insulation materials, paintwork materials and washing & cleaning products);  Conclusion of contracts by the Ukrainian organic agriculture producers with a volume of around EUR 6.1 million during, and in follow up of Biofach, one of the world’s largest organic trade fairs;

 Launch of the regional report “Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus;  Development of draft estimates of the major subsidy schemes in the EaP countries;  Launching a regional dialogue on green growth measurement and establishment of close links between the Project work on green growth indicators and EEA/UNECE work on the Shared Environmental Information System (a project funded by the EU’s DG NEAR);  Incorporation of the analysis and resulting policy recommendations for greening SMEs in EaP countries into the OECD SME Policy Index study (a project co-funded by the EU’s DG GROW); EaP-wide  Regional sharing of experience on existing legislative reforms on SEA;  Training of at least 5 experts as trainers on SEA for workshops and awareness raising events;  Launching a video on SEA procedure and benefits;  Completion and dissemination of the sub-regional overview of SEA and EIA systems;  Organisation of a regional conference on organic agriculture (April 2015, Ukraine) with over 200 participants;  Organisation of an exchange of experience during a Special Session on Organic Agriculture during the 4th Steering Committee Meeting in Moldova on 18 June 2015;

42. In 2015 additional emphasis was placed to build synergies between individual Project activities at national, thematic, sector and regional levels and to enhance mutual reinforcement of successful Project implementation. Most progress was made in establishing closer links between activities that supported greening SMEs and leveraging green lending (both implemented by OECD) and those that promoted resource efficient and cleaner production (implemented by UNIDO), between activities on organic farming and public procurement (implemented by UNEP) as well as between activities to develop national strategic documents on greening national economies (implemented by UNEP) and to support establishment of national SEA systems (implemented by UNECE). Other focus was directed at establishing close links between work on green growth indicators and the development of the Shared Environmental Information System (SEIS) and between green financing and climate change which are other priority projects supported by the EU. For example, UNEP and UNIDO provided substantive comments on OECD’s report on greening SMEs, UNEP delivered a session during the OECD’s workshop on green finance, OECD, UNECE and UNEP discussed how the green economy strategies link with OECD’s green growth indicators work. A pilot transboundary EIA post project analysis in Belarus and Ukraine was carried out jointly by UNECE and UNEP.

43. Additional efforts were made to intensify and improve communication with Partner Countries through more regular and detailed information on country specific activities and their results and to disseminate information to broader in-country audiences, including by working with journalists and the media. These included the development of country specific Project descriptions, creation and maintenance of a dedicated EaP GREEN web site (http://www.green-economies-eap.org/) and the production of regular Country Updates.

44. Progress notwithstanding, the Project implementation was affected by similar factors as in 2014, but most importantly by:

 institutional uncertainty related to the overall political situation and low priority attached to green economy issues in the current political and economic situation (especially in Armenia, Azerbaijan, Georgia and Ukraine);  conflicts in attribution of competencies between ministries and related lack of overall strategies or leadership in implementation at the national level;

 continuous limited absorption capacity in the public administration of Partner countries, especially in Armenia, Georgia, Moldova or Ukraine;  in Belarus delays were linked to the lack of progress in the registration of the EaP GREEN Project by the administration.

45. The implementation of the Project in 2015 also witnessed a number of changes in its management. Following a change of the Project Co-ordinator in September 20145, further staff changes occurred at OECD throughout 2015 and there was a change of the Project Manager at UNIDO in the second half of 2015.

46. The Project also experienced an important change related to the transfer of the Project supervision from DG DEVCO to DG NEAR at the start of 2015. This and other changes required an extensive adjustment period in the relations and communication channels within the Partners offices and between the Partners and the EC. To limit the impacts of these major changes several measures were applied to clarify the relations in the new management context, which included additional meetings of the Management Group and the Action Implementation and Coordination Committee as well as an earlier than planned meeting of the EaP GREEN Steering Committee meeting organised in June 2015.

3. Overall progress in the period January – April 2016

47. The implementation of the EaP GREEN work plan in the period January – April 2016 was marked by the organisation of the 5th meeting of the EaP GREEN Steering Committee that was held on 10- 11 February in Brussels and its follow. The main objectives of the meeting were to review progress since the previous Steering Committee held in June 2015 and progress towards reaching the objectives of the EaP GREEN. The meeting also agreed on specific activities to be carried out under the three Components of the EaP GREEN until the end of the Project and identified its key outputs, including country and regional activities, and the means for their dissemination. During the meeting the results of the ROM of the EaP GREEN carried out by an independent consultant was also discussed.

48. After the meeting the Work Plans for individual countries as well as regional activities were prepared and adopted through the written procedure. The Work Plans took into account the new time frame for the Project implementation following the decision of the Steering Committee of asking the Project Partners to request a budget neutral extension until September 2017 to allow for the implementation of the ROM recommendations and wider dissemination of the results.

49. Other activities implemented during the January-April 2016 period included:

 Under Component 1: i) the development of a national green economy road map in Moldova with a timeline and budget allocation and re-launching discussions with Belarus and Georgia on the development of the green economy action plans/strategies; ii) country specific events on awareness raising on green economy and sustainable consumption and production, iii) finalisation of a regional guide on green growth measurement, iv) completion of draft country analyses on environmentally-harmful subsidies in five countries (Armenia, Azerbaijan, Belarus, Georgia and Ukraine) and organisation of country stakeholder meetings in Armenia, Belarus and Ukraine, v) organisation of a regional meeting on SME greening;

5 Between September 2014 and September 2015 the position of the EaP GREEN Project Manager at the OECD was not performed at the full time basis as it was shared with the co-ordination of another EU- funded project “Support to the Implementation of the EUWI in Eastern Europe, Caucasus and Central Asia”.

 Under Component 2: the legal drafting processes in Armenia and Belarus as well as the preparations for a side event at the 8th Ministerial Environment for Europe Conference “The role of Strategic Environmental Assessment in Greening Economies”;

 Under Component 3: regional trainings on RECP financing and key RECP technologies in food, chemicals and construction materials sectors and the presentation of RECP Demonstration Component and organizing experience exchange at the Global RECPnet meeting on the occasion of Word Resources Forum.

50. A number of examples are presented in Table 3 that shows important achievements in individual countries and at the regional level resulting from the Project activities.

Table 3. Examples of national-level achievements under the EaP GREEN in January - April 2016

Country Examples of achievements  Launch of a project to support the development of a system for green growth measurement, funded by the OSCE;  Consensus on the recommendations of the draft analysis of environmental harmful subsidies;  Agreement on the changes to be made to the existing framework Law on EIA and Expertise to address conceptual differences between the EIA and SEA schemes Armenia under the law and the EIA/SEA schemes enshrined in the Protocol and the Convention;  Training workshop on practical application of SEA;  Acceptance of Armenia as an observer member of the RECPnet;  Participation of five Armenian organic agriculture producers in the Natural and Organic Products fair in London on 17-18 April 2016 where they were matched with interested companies; Azerbaijan  Request for support to the development of a system for green growth measurement;  Finalization of the economic modeling analysis and a decision on the development of a Green Economy Action Plan by end 2016;  Consensus on the recommendations of the draft analysis of environmental harmful subsidies;  Gap analysis of the existing draft law ecological expertise, SEA and EIA; Belarus  Request for support to the development of the Green Economy Action Plan;  Selection of four prioritized products by the Sustainable Public Procurement (SPP) Steering Committee for the inclusion in pilot tenders (boiler equipment on local fuels, personal computers, street lamps, and printers);  Decision on the development of a draft organic agriculture law;  Acceptance of Georgia as an observer member in the RECPnet; Georgia  Request for support for the development of the green economy Strategy;  Identification of priorities for the national Green Economy Road map;  Introduction of the new priority policy direction "Green Economy for SMEs" in the Action Plan on the implementation of the SME Sector Development Strategy for 2012-2020;  Training workshop on practical application of SEA;  Completion of the intergovernmental consultations on the draft law on SEA and the Governmental endorsement of the draft Law, and the submission of the draft to the Parliament; Moldova  Development of communication strategy on SPP and ecolabels;  Launch of a national TV spot on sustainable consumption and on the web (more than 21 000 views in the first 24h and an outreach of over 100 000 people);  Participation of four Moldovan organic producers in the Natural and Organic Products fair in London where they were matched with interested companies.  Conclusion of new business contracts with foreign buyers in the follow up of the fairs (including new export contracts of two tons of organic walnut kernel to the UK within the first two months after the fair);

 Consensus on the recommendations of the draft analysis of environmental harmful subsidies during a meeting at the Verkhovna Rada;  Development of communication strategy on SPP and ecolables; Ukraine  Participation of 11 Ukrainian companies at Biofach, the world’s biggest organic trade fair;  Conclusions of contracts with a total value of about USD 10 million;  Positive assessment of the Project by the Result Oriented Monitoring (ROM) carried out by an independent consultants to the EU;  Adoption of the revised Country and Regional Work Plans at the 5th Steering Committee meeting;  Exchange of experience at the regional workshop on greening SMEs;  Regional trainings on RECP financing and key RECP technologies in food, EaP-wide chemicals and construction materials sectors;  Presentation of the RECP Demonstration component and organizing experience exchange at the Global RECPnet meeting at the occasion of Word Resources Forum;  Production and release of TV spots on sustainable consumption through the web;  The Gold Award for the Project communication material at the Deauville Green Awards Festival 2016 in the category sustainable consumption and eco-labelling;

4. Overall progress in the period May 2016 – April 2017

51. During this period all activities envisaged under the Work Plans adopted by the 5th meeting of the EaP GREEN Steering Group (10-11 February 2016, Brussels) were further implemented with many of the outputs being completed or at the last stages of finalisation.

52. Evidence presented below show that several activities triggered the actual policy and regulatory reform, (esp. in the areas of developing green economy policies and reforming SEA/EIA), change of practices (green growth indicators and sustainable public procurement) and built capacities in individual countries (e.g. RECP and SEA/EIA). Some of the pilot and demonstration projects implemented under the Project brought about tangible and measurable monetary and environmental benefits, especially in relation to RECP and greening SMEs, sustainable public procurement, organic agriculture, SEA and environmentally harmful subsidies.

53. More specifically, during the review period the following progress was made in individual countries and at the regional level towards reaching the Project outputs planned in the Description of the Action:

Regionally, the Project significantly contributed to the development and endorsement of the EaP Declaration on Environment and Climate Change at the EaP Ministerial meeting and an Action Plan to implement it. The Project contributed also to the development of the pan-European Strategic Framework on Greening Economies and the launch of the Batumi Initiative on Green Economy (BIG-E) at the Environment for Europe Ministerial Conference. It generated the submission of concrete individual commitments on greening their economies by most of the EaP countries.

Further progress was made on completing indicator-based reports on greening the economies in Armenia, Azerbaijan and Moldova and setting up institutional structures for green measurement framework in those countries. In the area of environmentally harmful subsidies the reviews were completed and validated by all countries. In the area of sustainable public procurement the institutional framework was strengthened, as well as the market capacity assessed for the supply of prioritized sustainable product groups in Belarus.

 Under Component 2 following earlier in-depth reviews of the legislative and institutional frameworks for the application of SEA and EIA four important pieces of legislation were adopted: a new Law on State Ecological Expertise, SEA and EIA in Belarus, a new Environmental Assessment Code in Georgia, a new Law on SEA in Moldova and a Law on SEA and the Law on EIA in Ukraine.6 All these developments provided much improved legal framework and brought it into compliance with the UNECE Espoo Convention and its Protocols.

With regard to pilot projects a report summarizing the findings and conclusions of the pilot SEA of the National Strategy of Azerbaijan on the Use of Alternative and Renewable Energy Sources 2015-2020 was completed and work advanced on the pilot SEAs in Armenia and Moldova. Further training was provided on the practical application of SEA and several national level guidance documents were drafted. At the regional level, the ”Good Practice Recommendations on the Application of the Convention to Nuclear Energy-related Activities” were finalized and revised by the Working Group on EIA and the Bureau to the Espoo Convention, respectively.

6 The new laws subsequently vetoed by the President of Ukraine in October 2016. Following a request from the Ministry of Ecology and Natural Resources, the legal opinions on both laws were prepared and communicated to the Ministry by the official letters in February 2017. The revised drafts were re-submitted to the Parliament in March 2017. The revised Law on EIA was adopted on 23 May 2017 while the revised Law on SEA passed the first reading the same day. After the amendments both law are expected to be approved by the President.

tenders. Moldova and Ukraine further advanced the development of Sustainable Public Procurement communication tools, such as practical guidelines, websites, handbooks and presentations.

54. In parallel two types of overarching efforts were undertaken during the review period:

 preparation and presentation of the consolidated Project results at two high level events: the EU EaP Ministerial meeting on Environment and Climate Change (18 October, 2016 in Luxembourg) and the “Environment for Europe” Ministerial Conference (8-10 June 2016, Batumi, Georgia). The inputs to the EaP Ministerial included a presentation of the Project results at the Ministerial dinner and the meeting itself as well as the presentation of an EaP GREEN brochure that summarised the main results. The Project was singled out as an example to follow in the EaP Declaration on Environment and Climate Change that was adopted by the Minsters. During the Ministerial Conference in Batumi, the Project organised a high level side event that involved the Ministers from the EaP countries and high level officials from the EU, OECD, UNECE, UN Environment and UNIDO.7 A publication and communication stand that was set up in Batumi provided an opportunity to disseminate information about the Project to more than 2 000 participants of the conference. The Project also helped the EaP countries to formulate and officially announce specific green economy commitments as part of the Batumi Initiative on Green Economy (BIG-E). The Project provided also important contributions to the EU EaP Panel on Environment and Climate Change meeting (3 March 2017, Brussels) which comprised a comprehensive brochure with detailed activities and their results, a presentation of the Project results which was supported by interventions from the EaP countries and inputs to the Action Plan for the implementation of the EaP Declaration on Environment and Climate Change.

 arrangement of an extension of the EaP GREEN Project from the original end date of December 2016 to December 2017 as agreed at the 2016 Steering Group meeting in Brussels. The extensive procedures undertaken included contract amendments between the EC and the OECD and between the OECD and the Partners. These were associated with the amendments to the Description of the Action, budgets and payment schedules. The amendment procedure for all contracts extension was completed by end of 2016.

55. A number of examples are presented in Table 4 that shows important achievements in individual countries and at the regional level resulting from the Project activities.

7 The meeting was attended by around 70 participants of the Batumi Conference.

Table 4. Examples of national-level achievements under the EaP GREEN in May 2016 - April 2017

Country Examples of achievements  Development of the amended legislative framework on SEA and EIA for the presentation to the Parliament  Completion and an approval of an indicators based government report on greening the economy Armenia  Completion of five advanced RECP assessments with feasibility studies, including business plans for investment proposals and rapid RECP assessments of enterprises-members of RECP clubs.  Purchase and acquisition of RECP monitoring equipment and 2-days hands-on training on its use  Completion of a pilot SEA of the National Strategy of Azerbaijan on the Use of Alternative and Renewable Energy Sources 2015-2020  Establishment of an Inter-Ministerial Group on Green Growth Measurement Azerbaijan  Completion of a draft law on EIA and the submission for an inter-ministerial discussion  Establishment of RECP Clubs in four regions of the country  Development and adoption of the National Green Economy Action Plan (2016-2020)  Five green economy commitments submitted as part of the BIG-E to the Batumi Ministerial Conference  Draft Market Study assessing the integration of selected product categories in the procurement system and the market capacity to supply these products.  Adoption of a new law on state ecological expertise, SEA and EIA and related secondary legislation  Launch of the self-training modules for RECP experts  Acquisition of two sets of RECP monitoring equipment and relevant hands-on Belarus training  Completion of RECP assessments and advanced assessments of industrial enterprises.  Establishment of the RECP Center under the Institute of Management of Technology and Business of the Belarus State University  Formal commitment of the Government to continue RECP implementation.  Inclusion of the RECP activities in the Green Economy Action Plan of the Government till 2020  Chemical companies and chemical service providers trained on safer production and eco-innovation  Agreement on the modality of support for the Green Growth Strategy for Georgia  Four green economy commitments submitted as part of the BIG-E at the Batumi Ministerial Conference  Preparation of the Guidelines on Practical Application of SEA in Georgia  Adoption of a new Environmental Assessment Code by the Government and the submission to the Parliament for approval8  Purchase and acquisition of a set of RECP monitoring equipment and consequent Georgia hands on training  Completion of analysis and recommendations for RECO financing  Five RECP feasibility studies completed for RECP financing at specific enterprises, with two companies receiving support in credit application process closely monitored by the RECP financing expert.  Formal commitment of the Government to continue RECP implementation  Chemical companies and chemical service providers trained on safer production and eco-innovation  Adoption of a draft National Green Economy Action Plan (Road Map) by Inter- Ministerial Working Group Moldova  Completion and an approval of an indicators based government report on greening the economy

8 The Code successfully passed the first reading in April 2017.

 Five green economy commitments submitted as part of BIG-E at the Batumi Ministerial Conference  Adaptation of procurement guidelines integrating sustainability criteria for selected product categories for pilot tenders (organic fruits and vegetables, energy-efficient windows and doors).  Completion of roadmaps for the launch of pilot tenders of organic fruits and vegetables  Adoption of the Procurement Guidelines and the inclusion of the sustainability criteria for two product categories targeted by pilot tenders (organic fruits and vegetables, energy-efficient windows and doors).  Training of trainers and public procurers, as well as capacity building for economic operators on the new requirements (sustainability criteria) for public tenders for 57 representatives  Adoption of the Law on SEA by the Parliament  Launching the second pilot SEA of the National Road Map for the Green Economy of the Republic of Moldova  Completion of the initial RECP assessments in 12 enterprises and advanced RECP assessments in 3 enterprises  Approval of the economic modeling results for the agriculture and energy sector  Development of the sustainability criteria for selected products for pilot tenders (thermal insulation material, paintwork material, and washing and cleaning products)  Adaptation of the SPP Guidelines on the benefits of SPP, and details on the newly defined requirements for selected product categories Ukraine  Training of trainers and public procurers, as well as capacity building for economic operators on the new requirements (sustainability criteria) for public tenders for 70 representatives  Finalisation of initial and advanced RECP assessments accompanied by investment feasibility studies  Launch of educational programmes on RECP for university students  Over 30 journalists trained regionally on green economy and environmental story- telling, back-to-back with the 8th Environment for Europe Conference  Regional EaP collaboration and exchanges on green economy have positively influenced and contributed to the development and endorsement of the pan- European Green Economy Strategic Framework and the launch of the BIG-E initiative  Regional experience sharing on the progress of implementing green economy actions organized by UNECE, UN Environment and GGKP in the frame of the ECE EaP-wide Committee on Environmental Policy.  Success stories of organic exporters in Moldova, Ukraine, and Armenia analysing enabling factors for exports of organic products to international markets.  High visibility of the EaP GREEN at the Batumi Ministerial Conference  Contribution by the National Coordinators to the annual meeting of RECPnet European Chapter organized at the Batumi Conference  Regional Round Table on RECP Financing organized (26 April, Tbilisi)  High visibility of the EaP GREEN project at the EaP Ministerial Meeting in Luxemburg (October 2016)

5. Work plan for the Project remaining period

56. Detailed work plans of activities for 2016-2017 that were presented at the 5th meeting of the Steering Committee in February 2016 and subsequently approved provide a basis for the completion of all activities under the Project. They take account of the country priorities, the results of the ROM assessment and the extension of the Project duration to 31 December 2017. In the final stage of the Project efforts will focus on consolidating and documenting the results, their dissemination and organising meetings to discuss the lessons learned, remaining challenges and recommendations for the future work.

6. Implementation risks

57. All risks identified in the Description of Action, including frequent administrative reforms, unstable political situation in some of the countries, limited resources and low priority attached to green issues, remain valid though there are less profound now than in the past. To mitigate the risks the Project already established strong links with top decision-makers to generate commitments, ownership and sustainability of activities. The EaP Ministerial and the “Environment for Europe” Conferences were used to generate these links. These efforts will be supplemented by the development of key messages to policy- makers supported by evidence based analysis. Maintaining the links to the Association Agreements process will continue to be an effective tool to mobilise the political support to reform.

58. The Project will also consolidate the results and present them to the in-country and international audiences. The final months of the Project will be used to disseminate the overall results of the Project and reinforce in-country commitment and capacities to green their economies.

7. Areas where reinforced support from the European Commission will be needed

59. As the Project advances and policy recommendations are developed and the Project will enter in its final phase, a more active involvement of the European Commission will be necessary. There is a need for greater involvement of high-level officials from the EU Headquarters and the Delegations to present the results of the Project, promote the Project findings and achievements, disseminate lessons learned and resulting policy recommendations in events organised in individual EaP countries. This will enable a delivery of a unified message and the mobilisation of the political support to carry necessary policy, regulatory and institutional reform.

60. It is recommended that EU takes a more active role in disseminating the EaP GREEN policy recommendations among relevant directorates within the European Commission and other EU-funded projects and programmes to further ensure the links to political processes. Furthermore, it will be crucial that outputs and outcomes of the EaP GREEN activities are taken into account in the design of new EU- funded projects in the region. The support of the EC and the EU Delegations will be timely requested whenever potential risks are detected.

PART 3: PROGRESS ON COMPONENT ACTIVITIES

Component 1: “Governance and finance tools”

61. Seven “work streams” under Component 1 of the EaP GREEN Project address various facets of public policies to enable a more rapid shift towards green economy. First of all, EaP countries have been assisted to put in place comprehensive strategies of transition towards green economy and establish adequate progress measurement frameworks. Reforms of specific instruments have been promoted so that incentives are created for both public and private actors to adopt a greener model of development and invest in green projects. The current section describes the activities carried out in 2014 and 2015 and some of the initial findings and results. A list of detailed activities under Component 1 is presented in Table 5.

62. OECD and UNEP are responsible for implementing activities under Component 1.

Work stream 1.1: “Strategic policy setting”

63. Under this work stream UNEP supported the EaP countries in the development of national sustainable consumption and production (SCP) and Green Economy policies with the aim to (a) promote the integration of resource efficiency and SCP policies into national economic and development planning and implementation; (b) develop and implement national Green Economy/SCP programmes or action plans where these are requested; and (c) show the added value of SCP practices in transitioning to a Green Economy (GE).

Progress in 2014

64. The first year of implementation focussed on rolling out the activities at the national level in Belarus, Moldova and Ukraine, and launching regional policy dialogue, awareness-raising and capacity development. In 2014 the main emphasis was two-fold: establishing inter-ministerial working groups at the national level to ensure the implementation of Green Economy and SCP policies and commencing the work on quantitative sectoral analyses to demonstrate environmental, economic and social benefits of a transition to a green economy, as a base for the subsequent development of strategic policy frameworks.

Progress in 2015

65. In 2015 work focused on quantitative green economy sectoral analyses which was finalized and published in Moldova. Subsequently, the development of a draft green economy roadmap was launched. This development was linked with activities under Component 2 on SEA which contributed the development of this roadmap The work on quantitative green economy sectoral analyses was continued in other two other pilot countries focusing on: data collection and model design and the development of the model results for energy demand/supply and organic agriculture in Ukraine; and on energy demand and supply in Belarus.

66. A Green Economy Scoping Study in Moldova is now finalised in English and Romanian with a quantitative modelling analysis for two priority sectors of agriculture and energy. The report, which was launched at the 4th EaP GREEN Steering Committee Meeting in Chisinau, serves as a basis for the development of the green economy road map.

Weblinks:

 Green Economy Scoping Study in English  Green Economy Scoping Study in Romanian  News Story on GE Scoping Study for Moldova in UNEP in Europe Newsletter

67. The Inter-ministerial Working Group (WG) on green economy and sustainable development was formally established in June 2015 in Moldova. It comprises members of several ministries, the Chamber of Commerce, as well as NGOs. The preparation of WG meetings and meeting documents were guided and supported by the Project. Progress on discussions on green economy is regularly updated on the Website of the Ministry of Environment. Work has commenced on the development of a green economy road map. A list of relevant GE policy recommendations from assessments reports developed under the EaP GREEN has been compiled and a SWOT analysis will now be carried out. The process of developing the GE roadmap for Moldova is being complemented by the development of a Strategic Environmental Assessment (SEA), in collaboration with UNECE;

Weblink:

 Green Economy updates on Ministry website

68. Awareness on green economy and sustainable consumption and production has been raised among various stakeholders, including through a dedicated thematic week in educational institutions (see also Component 3.3.), university lectures, a dedicated video message for a national high-level GE conference, presentations at workshops and other fora, such as the national forum of NGOs on Green Economy in Moldova, as well as the distribution of information through different communication channels (press releases, newsletter articles, TV documentaries, website and Facebook articles, Twitter messages, etc.). The SCP Clearinghouse has been further updated with information and material of EaP GREEN;

Weblink examples:

 Global SCP Clearinghouse  Press Release Moldova Green Economy Scoping Study  TV report on organic agriculture by Deutsche Welle TV  TV report on organic agriculture for national channel

69. National and international data was collected and analyzed, and modelling assumptions were developed for green economy scoping studies in Belarus and Ukraine. Modelling results for the quantitative analysis for priority sectors were prepared and shared for review with national focal points in Ukraine (agriculture and energy supply and demand) and Belarus (energy supply and demand). A first draft of the Green Economy Scoping Study was developed for Belarus and a draft policy briefs on agriculture and energy were prepared for Ukraine;

70. The regional report on “Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus”, prepared under this Component, reviewed progress on SCP policies and initiatives in the EaP region. It was launched at the 4th EaP GREEN Steering Committee Meeting in Chisinau (June 2015) in English and Russian. The report shows benefits of reform and provides a basis for further in-country work on developing a strategic policy framework;

Weblinks:

 Report on Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus in English and in Russian  News Story on SCP Report in UNEP in Europe Newsletter

Progress in January – April 2016

71. The work on the development of a national green economy road map with a timeline and budget allocation has progressed in Moldova and a SWOT analysis has been carried out. The Project supported the organization and holding of two inter-ministerial working group meetings. During these meetings, the GE national road map was further discussed and members agreed on an outline and priorities of the road map. The meetings further explored synergies among EaP GREEN activities, and reviewed progress on the UNECE-led SEA carried out as contribution to the GE road map development.

72. Georgia and Belarus announced their plans to develop a green economy action plan / strategy and asked for UNEP’s support for their development at the 5th Steering Committee Meeting in February 2016. Work with Belarus on the development of the green economy action plan has already commenced and discussions with Georgia and Germany’s GIZ on the scope and timeline for the work have been held after the Steering Committee meeting. The commencement of the GE strategy for Georgia is pending the finalization of the green growth policy paper by GIZ.

73. Awareness on green economy and sustainable consumption and production has been further raised among various stakeholders (high level government officials, businesses, academia, NGOs, etc.), including through the holding of a high-level roundtable discussion with Ministers, businesses and civil society at the largest national exhibition in Moldova. The event “Green Economy: Made in Moldova” hosted over 100 participants and saw constructive discussions between government officials and various stakeholders, especially the private sector, on possible elements that will be considered for introduction into the national green economy road map.

Weblink:

 Green Economy @ Made in Moldova in UNEP in Europe Newsletter

Progress in May 2016 – April 2017

74. In Moldova, the National Green Economy Action Plan (Road Map) has been drafted and revised following several rounds of comments and inputs from the Inter-Ministerial Working Group and international organizations. The meeting of the Working Group in February 2017 approved the latest draft which included priority actions for the time bound green economy activities, designated responsible Ministries and identified budget allocations. The Working Group recommended the Road Map to be sent for public stakeholder consultations, and official ministerial approval before finalizing and submitting it for approval by the Government.

75. In Belarus, the development of the National Green Economy Action Plan (2016-2020), in collaboration with relevant Ministries, has been finalized. Based on the main provisions of the Programme of Social and Economic Development of the Republic of Belarus 2016-2020, the outline, structure, proposed actions and recommended indicators of the Plan were discussed and agreed upon at the Inter- Ministerial Working Group meetings in June and October 2016 based on which a draft of the Action Plan was prepared. For the first time in Belarus, the draft plan was subject to public consultations in accordance with the principles of the Aarhus Convention. The consultations generated more than 100 comments from

the civil society, academia and the public. A revised version was discussed during a stakeholders meeting in November 2016, attended by 20 NGO representatives and 13 observers, and was subsequently submitted for comments to all relevant ministries and government bodies (12 ministries, all oblasts, the Minsk City Executive Committee and the National Academy of Sciences of Belarus). The final draft of the Action Plan was approved by the Council of Ministers in December 2016. The objective of the National Green Economy Action Plan is to incorporate green economy principles in the national economy of the Republic of Belarus until 2020. It aims at integrating green economy principles into various sectors (agriculture, energy and transport, industry, construction, as well as the disposal and recycling of waste), with a view to foster capacity building, boost regional development and improve the overall state of the environment.

76. In Ukraine, multi-stakeholder consultations with representatives of relevant Ministries, academia and civil society were held in December 2016 on Ukraine’s green economy pathway. The meeting was held to finalise the green economy modelling analysis, prepare policy recommendations, and identify next steps to develop green economy policies in Ukraine. The meeting approved the presented modelling results for the energy and agriculture sectors and agreed to provide policy recommendations by the end of January for the finalization and launch of the policy briefs in 2017. The planned national high-level Conference on Green Economy and Climate Change, in collaboration with the EU funded ClimaEast Project planned for March 2017, had to be postponed due to conflicting schedules of high-level EU and Ukrainian government representatives.

77. In Georgia, following the request to the Project to provide support to the development of the National Green Growth/Economy Strategy, a consultation meeting was held on 28 April 2017 at the premises of the Ministry of Economy and Sustainable Development in Tbilisi, to discuss the scope, methodology, data availability, institutional arrangements and the way forward. The Meeting agreed that, as a starting point and bearing in mind the limited time frame until the closing of EaP GREEN, the Project would assist in the development of a macro-economic assessment underpinned by a simulation modeling analysis of selected priority sectors to demonstrate the potential economic, social and environmental benefits of “green” policy options vis-à-vis a business as usual scenario, and thereby inform and support the Green Growth/ Economy Strategy development. This analysis would build on the Green Growth Policy Paper developed by the GIZ in 2015-2016, and currently still pending government approval. Data collection to this end has commenced in March 2017 and will be finalized by the end of May 2017. Subsequently, the sectors and policy priorities for the economic analysis will be determined and agreed upon. The meeting further recommended that an inter-ministerial working group would be formally established by the government to oversee, guide and coordinate the overall green economy/sustainable development work in Georgia.

78. Regionally, continuous exchanges and cooperation among EaP countries on green economy have significantly contributed to the development and endorsement of the pan-European Strategic Framework on Greening Economies and the launch of the Batumi Initiative on Green Economy (BIG-E) at the 8th Environment for Europe Conference held on 8-10 June 2016 in Batumi, Georgia. National Focal points and experts from EaP countries were members of a dedicated expert working group on green economy which provided their expertise and experience together with international organizations and NGO representatives in developing the framework and BIG-E, serviced by UNECE and UN Environment. At a dedicated side event of the UNECE Committee on Environmental Policy (Geneva, 25 January 2017) organized by UNECE, UN Environment and GGKP representatives from Belarus, Georgia and Moldova presented challenges in, and key success factors of, implementing green economy activities under EaP GREEN that had been presented as actions under the Batumi Initiative on Green Economy (BIG-E).

79. Awareness on green economy and sustainable consumption and production has been further raised among various stakeholders (high level government officials, businesses, academia, NGOs, etc.), including through holding a regional journalist training on environmental and green economy

reporting and story-telling. The training of more than 30 journalists featured an interactive session with a renowned former BBC journalist and included a mock press conference that was put into practice when journalists interviewed national delegations at the Environment for Europe Conference for news stories to be published in print, online and via radio. Awareness was also raised through the holding of the second edition of the high-level roundtable discussion with Ministers, businesses and civil society at the national exhibition “Green Economy: Made in Moldova”.

Weblinks

 Journalist training UN Environment newsletter article  Green Economy pledges UN Environment newsletter article

Main achievements towards objectively verifiable indicators

 Launch of the regional report on “Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus"

 Conclusion of the Green Economy Scoping Study demonstrating social, environmental and economic benefits of shifting towards green economy policies for Moldova.

 Establishment of the inter-ministerial working group on green economy and sustainable development in Moldova and development of a draft Green Economy Action Plan (Roadmap) in Moldova approved by the Inter-Ministerial Working Group (February 2017)

 Development of a Green Economy Action Plan for Belarus (2016-2020), approved by the Government (December 2016)

 Agreement on the modalities of support for the Green Economy Strategy development in Georgia

 Awareness on green economy and sustainable consumption and production was raised among various stakeholders through various events and communication outreach, including high-level government officials, businesses, journalists, academia, school kids, civil society / public at large

 Preparation of 14 commitments for green economy actions under the BIG-E by Belarus, Georgia, Moldova.

 Establishment of links with the GGKP and the Global 10YFP-SCP Clearing House and strengthening the Project visibility though the EaP GREEN web site

Expected challenges in the Project remaining period

80. Under the current political circumstances, it is uncertain if the government of Ukraine will develop a Strategic Framework for Green Economy or establish an inter-ministerial working group. Discussions with Ukrainian authorities will continue in order to mobilise their commitment for the development of a strategic framework or green economy action plan.

Work stream 1.2: Progress measurement

81. Changing the development path requires analytical evidence that resonates both with environmental and non-environmental communities. To generate such evidence, governments need to revisit the set of indicators that they currently use. The OECD proposed a set of green growth indicators

(GGIs) on the basis of existing work in international organisations and in partner countries. The proposed set has been kept flexible enough so that countries can adapt it to different national contexts. It includes four groups of indicators: environmental and resource productivity, the management of natural assets, environmental quality of life, and economic opportunities arising from environmental policies. The objective of this work stream is to enable EaP countries to use GGIs in a way that best fits the needs for more evidence-based decisions on the environment-economy nexus.

Progress in 2014

82. In 2014 activities focused on launching the mapping the relations between economic, social and environmental indicators existing in two pilot countries (Moldova and Ukraine) and the OECD set of GGIs. Two analytical mapping reports have been launched with preliminary results discussed at the national workshops in Chisinau and Kiev. The preparation of a regional guide for developing GGIs was also launched. It aims to provide a practical tool to the identification and development of a set of relevant indicators with detailed typology, methodological guidelines and practical examples from around the world.

Progress in 2015 and January – April 2016

83. The work in 2015 focused on the establishing the relations between the activities on GGIs carried out under the Project and the work on indicators carried out under the EEA-led work on the Shared Environmental Information System and the UNECE work on environmental indicators. To this end a regional workshop “Shared Environmental Information System And Green Growth” was organised on 10- 11 March 2015 in Paris. It brought together around 80 representatives of the EaP countries and Central Asia, UNECE, UNEP, EEA and OECD. The workshop showcased synergies among the fields of environment, green growth/economy and sustainable development which could be exploited for developing effective national approaches towards measuring green growth in the EECCA region. It also facilitated the exchange of experience and good practice on developing and applying green growth measurement framework in the countries of the region.

84. Progress was also made on completing mapping of indicators in Moldova and Ukraine and establishing a formal inter-ministerial working group on GGIs in Ukraine. Discussions with country representatives were also held on launching projects in Armenia, Azerbaijan and Georgia. In particular the links were established with the OSCE Armenia which agreed to fund the development of GGIs in Armenia. It was also agreed to hold national workshops on GGIs in Erevan and Baku in May 2016 and the first months of 20016 were devoted to arranging thee meetings. The second heavily revised version of the regional GGIs Guide was also completed and consulted with the EaP country representatives. The final draft of the Guide will be presented at the meeting of the UNECE Joint Task Force on Environmental Indicators on 30 June - 1 July 2016.

Progress in May 2016 – April 2017

85. The activities in this period focused on providing direct assistance to individual countries to develop indicators based reports in greening the economic development.

86. In Azerbaijan three workshops on the development of green growth based reports were organised in Baku (May and December 2016 and April 2017) which resulted in the review and an agreement of the set of green growth indicators and the development of a draft report. The meetings were also instrumental in setting up an Inter-Ministerial Working Group on Green Growth Measurement which consisted of: Ministries of Economy, Ecology and Natural Resources, Agriculture, Energy, of State Agencies (Alternatives and Renewable Energy, “Azerbaijan Irrigation and Water Industry” JSC,

“Azerwater” JSC, “Azerejergy” JSC), and of the state-owned oil company SOCAR. The group has been chaired by the Ministry of Economy.

87. In Moldova one meeting of the Working Group on Green Growth Measurement was organised in November 2016 in Chisinau as part of the Interministerial Working Group on Sustainable Development and Green Economy that is currently developing a Green Economy Roadmap for Moldova. Following the meeting work advanced to elaborate a list of green growth indicators for which data is readily available and identify and record those indicators for which data gaps should be identified and traced for the future improvement in data collection and flows. At the end of the reporting period a draft report was completed and submitted for the production.

88. In Armenia the Project worked with the OSCE to support Armenian agencies in developing country-specific green growth indicators based on the OECD set. A meeting that was organised in May 2016 reviewed the possible indicators that could be used in the production of the report and launched the preparation of the report. The report was published by the OSCE in April 2017.

89. During this review period the work continued on linking the Project work with that of the EEA’s on the Shared Environmental Information System and the UNECE work on environmental indicators. The revised version of the regional GGIs Guide was presented at the meeting of the UNECE Joint Task Force on Environmental Indicators on 30 June - 1 July 2016 and the 1st Steering Committee meeting of the EU-funded ENI-SEIS II East Project held on 29-30 November 2016 in Brussels.

Web links

 All documents relevant to this stream of work is available on the dedicated web site: http://www.green-economies-eap.org/topics/greengrowthindicators/

Main achievements towards objectively verifiable indicators

 Support was provided to the development of an analytical report on green growth indicators and establishing an inter-ministerial working group on GGIs in Ukraine. The report, which was published at the end of 2015, provides a basis for a consensus building on a set of selected indicators. Support was also provided to the awareness raising work on green growth measurement carried out by NGOs.

 Draft reports with green growth indicators were completed in Azerbaijan and Moldova in April 2017. A green growth indicators based report was also published in Armenia in March 2017 funded by OSCE.

 Close links have been established between the work on green growth indicators and the development of the Shared Environmental Information System at the regional level. This included the organisation of a regional OECD-EEA-UNECE-UNEP workshop in March 2015 and presentations of the Project results at the meetings of the UNECE Working Group on Environmental Information and Monitoring.

 An important input was provided to the newly launched project ENI-SEIS II East. This work shows the benefits of reform and utilising the synergies between relevant activities carried out at the international level.

 The revised version of the regional GGIs Guide (toolkit) was completed and consulted with the EaP country representatives.

Expected challenges for the remaining period

90. This part of the Project was launched relatively late but a very good progress has been made on reaching the Project targets of preparing green growth indicators based reports in at least three countries Efforts were made to establish the relations with parallel relevant activities carried out on other international fora. The main objectives for the remaining period will be to promote the country GGIs-based reports in Armenia, Azerbaijan, Moldova and Ukraine and to use the information collected in the preparation of the final report on the Project.

Work stream 1.3: Identifying environmentally-harmful subsidies

91. Reforming environmentally harmful subsidies (EHS) is a fundamental element of green growth strategies. Its benefits include, among others, reducing the use of resource intensive inputs (e.g. energy) and subsequent decrease in pollution levels, fixing market distortions by making resource prices reflect resource value, and polluters pay for their pollution; releasing and/or reallocating public funding to other areas, such as education, energy saving or reducing debt.

Progress in 2014

92. The reforms of two major schemes were modelled, analysed and agreed upon in Moldova. The schemes related to: reduced VAT rates for the consumption of natural gas and of electricity in the residential sector (8% and 0%, respectively, instead of the standard 20% VAT rate). This work raised awareness of key institutions and individuals within the government about the costs of subsidies and benefits that can be derived from reform.

93. Despite the fact that the OECD prepared detailed proposals on "Energy subsidies and climate change" in Azerbaijan and Georgia and after months-long discussions with the Ministries of Environment and Ministries of Economy in both countries, both Azerbaijan and Georgia chose not to participate in this work as individual case studies. The main argument was that there are no energy subsidies in the countries.

94. In order to engage EaP governments in a discussion on inefficient and costly energy subsidies and provide convincing arguments for their reform, the Project decided to first prepare an inventory of such subsidies and only then move to organising policy dialogues in five countries (all EaP GREEN except Moldova where analysis were completed earlier).

95. A detailed Terms of Reference for conducting an inventory of energy subsidies in the EaP countries was prepared and a tender was launched by the end of 2014. The study of this inventory is based entirely on publicly available information and data. The approach follows the methodology developed by the OECD which will make the analysis compatible with the studies carried out worldwide.

Progress in 2015

96. The proposals made by the companies who participated in the tender were evaluated by the OECD team and the justification for the choice of the Consultancy was submitted to OECD Procurement Office for further assessment and contracting at the end of January 2015. For procedural reasons, the contract with the selected Consultancy was signed at the end of July 2015.

97. At the end of September 2015, a consultation with the selected Consultancy, which included international and national experts, was held to discuss the methodology for identifying and measuring the size of inefficient energy subsidy schemes in the EaP countries as well as agree on the detailed

implementation plan for this activity. Draft scoping papers for each country were prepared and discussed during the meeting. The aim of the scoping papers was to make a preliminary identification of the major energy subsidy schemes that exist in the countries and that need to be further analysed.

98. Draft estimates of the major subsidy schemes in the EaP countries were presented at a side event organised during the UNFCCC COP21 on 8 December 2015 in Paris.

Progress January – April 2016

99. Detailed draft country analyses for Armenia, Belarus and Ukraine were prepared and translated into national languages. The analysis covers both government support to the production and consumption of fossil fuels as well as renewable energy sources and energy-efficiency improvements. As part of the analysis, energy pricing and taxation policies in the countries were also reviewed. Country stakeholder meetings were organised in each of these countries.

100. The meeting on subsidies in Armenia was held on 7 April 2016 and was hosted by the Ministry of Energy. The analysis showed that generally Armenia does not pursue a pro-subsidy policy and has achieved a significant progress in reforming its energy sector and related subsidy schemes.

101. The meeting in Ukraine was held on 24 April 2016 and was hosted by the Committee on Fuel and the Energy Complex, Nuclear Policy and Nuclear Safety of the Parliament of Ukraine. Among the EaP countries, Ukraine has the highest level of energy subsidies (in 2015, the estimates show that fossil-fuel subsidies totalled about USD 7 billion). Compared with 2014, support has decreased significantly and is expected to shrink even further. Ukraine has designed an active programme for reforming its fossil-fuel subsidies.

102. The meeting in Belarus was held on 28 April 2016 and was hosted by the Ministry of Economy. The analysis showed that all of the quantified fossil-fuel subsidies benefit residential consumers. The bulk of subsidies come in the form of regulated residential tariffs for heat, electricity and natural gas, funded through both cross-subsidisation (from industry to residential users) and transfers from local and national budgets.

103. Work on the updating of data and information and quantifying energy subsidies in Moldova started and the preparation of a country chapter is underway.

Progress in May 2016 – April 2017

104. Work during this period focused on the finalisation and presentation of the results of the draft studies on the subsidies in the energy sector in Georgia (26-27 May 2016 in Tbilisi), in Azerbaijan (20-21 October 2016 in Baku) and in Moldova (29 November 2016 in Chisinau). The meetings identified a number of energy subsidy schemes though some of them were difficult to be quantified due to the lack of data which normally should be available in the public domain. As part of the analysis, the studies reviewed also energy pricing and taxation policies. At all meeting the participants agreed with the findings of the analysis and provided constructive comments for the finalisation of the country chapters and the whole report which is expected in the fall of 2017.

105. The preliminary results of the analysis were included into the EaP GREEN documentation presented at the Environment for Europe Ministerial meeting in Batumi and provided to the DG NEAR Project Manager on as needed basis.

Main achievements towards objectively verifiable indicators:

 The reforms of two major schemes were modelled, analysed and agreed upon in Moldova in 2014- 15. This work raised awareness of key institutions and individuals within the government about the costs of subsidies and benefits that can be derived from reform.

 Draft estimates of the major subsidy schemes in the EaP countries were prepared. The COP21 was used as an opportunity to hold a discussion on reforming inefficient energy subsidies in the EaP countries in the broader debate on climate change. This side event was used to promote this work across EaP governments and lay the basis for further country-level discussions on this topic. Relevant government officials from all EaP countries participated and representatives of Armenia (Ministry of Energy and Natural Resources) and Ukraine (Advisor to the Head of the Agency on Energy Efficiency and Energy Saving of Ukraine) presented recent reforms of inefficient energy subsidy schemes undertaken by their governments.

 Despite the political and social sensitivities surrounding the debate on energy subsidies and the dynamic environment in which reforms are taking place, stakeholders during the meeting carried out in 2016 generally agreed with the presented analysis and supported the conclusions. The discussions helped clarify a number of misperceptions related to energy subsidies. The meetings brought together key representatives of the governments and much of the debate revolved around how best to compensate poorer people for the anticipated increases in energy prices, while not creating expectations that compensatory payments would last forever. The meeting in the Ukrainian Parliament was particularly timely as Ukraine is in the midst of implementing tough energy sector reforms and the debate on energy subsidies is at heart of the reform process. Given the complexity of the analysis involved in estimating government support to the energy sector in Azerbaijan, individual face-to-face meetings were particularly important as they provided the Project with the opportunity to explain and respond to the many questions on issues related, among others, to the subsidy estimation methodology, including the set of data used, the choice of benchmarks or how the analysis compares with consumer subsidy estimates published by the IEA on an annual basis.

Expected challenges in the Project remaining period

106. The regional overview study of energy subsidy schemes is the first of this type in the EaP countries. It has already and is further expected to help raise awareness across governments of the existence of inefficient energy subsidies, of their magnitude as well as of their social, economic, fiscal and environmental implications.

107. For various reasons governments do not always disclose data related to subsidies which makes the analysis more difficult and requires additional efforts to estimate such subsidies. In addition, the situation in the countries changes quickly and in order to properly reflect these policy changes (e.g. Ukraine), the analysis needs to be further and adequately adjusted.

108. The final report that will contain the regional overview and country chapters will be prepared in the second half of 2017 in both English and Russian and will be disseminated through the EaP GREEN and other channels.

Work stream 1.4: Creating market incentives for greener products

109. Promoting green growth requires policy instruments that are effective in achieving environmental objectives without imposing excessive burdens on the economy. There is growing recognition in OECD

countries that economic instruments such as environmentally related taxes can be effective in stimulating a shift to less-damaging forms of production and consumption while providing producers and consumers with flexibility in making these adjustments. In this context, the EaP GREEN Project aims to help EaP countries to design or reform economic instruments related to environmentally harmful products thus providing incentives for both reducing pollution and introducing greener products.

Progress in 2014

110. A Policy Manual “Creating Market Incentives for Greener Products” and a condensed “Roadmap for Policy Action” were produced in English and Russian and discussed and endorsed at a regional expert meeting in Paris in March 2014. Country-level pilot projects continued in Moldova and Ukraine, with national stakeholder workshops conducted in both countries. In Moldova, the main focus of the Project was on the reform of existing taxes on environmentally harmful products, in Ukraine – on the environmental differentiation of excise taxes on motor fuels and motor vehicles. Roll-out national workshops were conducted in Armenia and Belarus to present the Policy Manual and discuss its relevance in the context of country-specific challenges.

Progress in 2015

111. The pilot projects were completed in Moldova and Ukraine, with the policy recommendations on environmental product taxation and extended producer responsibility endorsed at the respective national stakeholder workshops. The pilot project reports were published in English and Russian and translated into the national languages of the respective countries. Roll-out workshops were conducted in Georgia and Azerbaijan.

112. A special session dedicated to the Project results was conducted in the framework of the annual EAP Task Force meeting in October 2015 in Tashkent, Uzbekistan at which the representatives of all the EaP countries were present.

Progress 2016-2017

113. No work has been carried out under this activity since all tasks envisaged by the Description of the Action have been completed.

Web links

 Activity web site: http://www.green-economies- eap.org/topics/creatingmarketincentivesforgreenerproducts/  Economic instruments for managing environmentally harmful products in Ukraine  Economic instruments for managing environmentally harmful products in Moldova

Main achievements towards objectively verifiable indicators

 Stakeholders across the six EaP countries endorsed the recommendations of the Policy Manual on product-related economic instruments, which was a step towards building consensus on needed policy reforms;

 Stakeholders in Moldova and Ukraine endorsed the pilot projects’ policy recommendations, which provide a basis for adjusting the existing taxes on environmentally harmful products and developing sound extended producer responsibility schemes.

Expected challenges in the remaining period

114. No further work will be carried out under this Activity as all tasks envisaged by the Description of the Action have been completed.

Work stream 1.5: Improving investment policies and access to finance

115. Access to finance is a serious challenge in the region. More attention needs to be paid to attracting private finance, which is at the core of the green transition. Recognising this, IFIs have established credit lines earmarked for environmental purposes in commercial banks. Such credit lines support immediate investment priorities and develop the capacity of local banks to conduct due diligence assessments and to demonstrate the viability of green financing as an attractive business model. Making the practice of green private financing sustainable requires that local banks see its benefits compared to other business opportunities, sufficient demand from borrowers, and a supportive public policy framework. This work stream aims to enable improved and sustainable disbursement of environmental credit lines in commercial banks of EaP countries.

Progress in 2014

116. The concept for this activity was prepared, discussed and agreed upon with relevant counterparts at the OECD, World Bank, EBRD and EIB.

117. A draft overview study was prepared of relevant environmental credit lines, supported by IFIs and disbursed by local commercial banks in the EaP region.

118. In June 2014, a regional meeting was organised in Paris to present the results of the study and to discuss and agree on the methodology for assessing environmental credit lines and identifying measures that governments need to take in order to stimulate more environmental lending in the countries. The meeting brought together representatives of the Ministries of Economy of the EaP countries, IFI officials, bankers from EaP commercial banks as well as academics and experts working on these issues in the region. Ukraine and Georgia expressed interest to work with OECD and serve as case studies for this activity.

119. In July 2014, a consultation was organised with representatives of the Export-Import Bank of Ukraine (Ukreximbank) and EBRD to discuss the scope of the analysis (e.g. choice of specific credit lines to be analysed, specific documents which could be made available to the review team) and the implementation plan.

120. A detailed Terms of Reference was prepared to launch a tender to identify a consultancy to carry analytical work.

Progress in 2015 and January – April 2016

121. Despite agreement reached on all issues with Ukreximbank in Ukraine this activity experienced some delays. These were due to late responses by the Ukraine counterpart but also due to delays with the OECD procedure to sign the contract with the Consultancy (finally signed in July 2015). After addressing the key challenges, the review team visited Kyiv and launched the review process at the end of July 2015.

During the review mission, the team met with representatives of various government and international offices as well as Ukreximbank.9

122. In parallel, discussions were held with representatives of Georgia and Moldova that expressed interest in participating in this activity.

123. In addition, short desk-top analyses of the performance of environmental credit lines supported by IFIs in selected commercial banks in Armenia, Azerbaijan and Belarus are being prepared.

Progress in May 2016 – April 2017

124. The main focus under this activity has been placed on preparing a large conference “Unlocking Private Finance for Energy Efficiency and Greener, Low-Carbon Growth in the Eastern Partnership and Central Asia Countries” which will be held on 29-30 June 2017 in Brussels. The Conference, which is co- organised by the EC and OECD will review progress, identify key challenges and ways forward to better aligning financial mechanisms with policy reforms to speed and scale up green investments in support of energy efficient and low-carbon growth, new business opportunities and green jobs in the Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine). In particular the conference will discuss:

 lessons learned from mobilising capital markets to finance the transition to a green economy;

 the role of public authorities in unlocking private finance for green investment;

 ways to make better use of international climate-related development finance and

 new avenues, including the role of banking and monetary policy, the use of green bonds and mobilising institutional investors, such as pension funds and sovereign wealth funds.

125. More than 100 participants are expected to attend from the governments, international and national financial institutions, and a number of organisations active in the area of green finance. In addition to the EaP countries the representatives of the Central Asian Republics are invited.

Web links

 International Conference: Unlocking Private Finance for Energy Efficiency and Greener, Low- Carbon Growth in the Eastern Partnership and Central Asia Countries

9 On the government side, the meetings were held with the Ministry of Ecology and Natural Resources, Ministry of Economic Development and Trade, Ministry of Regional Development, Construction and Housing, Ministry of Energy and Coal Mining, State Agency of Energy Efficiency and Energy Saving, the National Commission for State Energy and Public Utilities Regulation (responsible for setting gas, electricity, heat and feed-in tariffs for renewables), the Independent Association of Ukrainian Banks. The team met with IFIs which have extended environmental credit lines to Ukreximbank, namely: the World Bank, EBRD, EIB, KfW and IFC. The team also talked to selected borrowers which have taken energy efficiency loans from Ukreximbank, namely Almira, one of the biggest dairy-making producers in Ukraine and Ivano-Frankivsk Cement, a cement plant in the western town of Ivano-Frankivsk.

Main achievements towards objectively verifiable indicators

 Cooperation with International Financial Institutions, especially with the EBRD, was strengthened in the Project implementation to build a critical mass of support for reform;

 The credit lines review methodology was approved at the regional level which was a step towards building consensus on needed policy work;

 A regional project to evaluate access to private finance for green investments in the EaP countries was launched. This provides a basis for systematic analyses of the situation in the region and developing concrete country-specific recommendations. This is a step towards raising awareness of institutions and individuals within the government and the private sector about the government role in stimulating more green lending in the countries. The Conference on Unlocking Private Finance for Energy Efficiency and Greener, Low-Carbon Growth will provide a platform to discuss the findings of the analysis and identify the ways to improving investment policies and access to green finance.

Expected challenges in the remaining period

126. The draft Ukrainian report will be finalised and published in both English and Ukrainian by the end of 2017. The discussions are being held with the Ukrainian counterparts on possible dates to organise a stakeholder meeting to present and debate the findings and conclusions of the review and discuss their practical implementation.

127. Two more case studies, one in Georgia and one in Moldova, were planned to be prepared during the remaining time of the Project. The sensitivities around this analysis (e.g. the need to carefully approach sensitive, and sometimes confidential, commercial data and information held by the banks and IFIs) and the need to engage governments, IFIs and commercial banks and make them work together required extensive discussions which so far has not led to clear agreements about the mutual benefits and implementation modalities. Judging from the current progress it is highly unlikely that these will be completed in the time of the Project. For similar reasons the planned 3 roll-out meetings in Armenia, Azerbaijan and Belarus that aimed to present the results of the case studies may not be carried out. Instead the experience will be summarised examples of good practices for mobilising the green finance.

128. Additional work has been done in Georgia on streamlining the study in this country. Discussions held with the Ministry of Economy and Sustainable Development which requested that the study should focus specifically on improving lending policies for SMEs. To this end this stream of activities has provided an input to the other activity on financing RECP which resulted in a regional meeting on financing SMEs that was held on 26 April 2017 in Tbilisi. This work support Georgia SME Development Strategy and the Concept of Green Growth that the Georgian Ministry of Economy is currently preparing.

Work stream 1.6: Promoting Sustainable Public Procurement (SPP)

129. Under this activity, countries are supported in the development and implementation of sustainable procurement policies (SPP) by increasing awareness and building capacities of policy makers and procurement managers in the EaP region. In 2013, three pilot countries (Azerbaijan, Moldova and Ukraine) were identified based on consultations and expressed interest from national governments. Expression of interest was also received from Belarus, which was included as beneficiary for this activity, while Azerbaijan withdrew its interest. Governments were requested to designate focal points on SPP at the relevant Ministries. The Project activities in 2013 had been delayed due to changes in internal human

resource arrangements. However, the Project activities and related spending have intensified considerably throughout 2014.

Progress in 2014

130. Moldova and Ukraine made significant progress under the policy phase of the SPP activity. Through several national events awareness was raised and capacity strengthened on SPP approaches among a broad range of stakeholders. At the same time National SPP Action Plans were developed in both countries. Steering Committees for SPP-related activities were officially established and status assessments of public procurement were conducted in order to mark a baseline for the monitoring of progress. A review and analysis of the legal and regulatory frameworks for the implementation of the SPP undertaken in Moldova and Ukraine highlighted proposed recommendations for changes to the existing regulations. In addition, prioritization exercises were carried out to select the main categories of sustainable products for inclusion in pilot tenders and procurement in the demonstration phase, two (Moldova) and three (Ukraine) priority sustainable product groups were identified. Market analyses were carried out to focus on the products identified during the Prioritization exercise carried out in December 2014 and October 2015, respectively. The market study helped with the assessment of the existing capacity of the local market to respond to future SPP tenders. SPP Policy and National SPP Action Plans were drafted, discussed and finalized.

131. In Belarus activities were delayed compared to the other two countries due to difficulties encountered in light of the non-registration of the EaP-GREEN in the country, as well as multiple internal changes in human resources and organizational structure.

Weblinks:

 Moldova Legal Review report in English and in Russian; Market Study in English (Executive Summary); National SPP Action Plan in English.  Ukraine Legal Review report in English and in Russian; and Market Study in English and Russian.

Progress in 2015 and January – April 2016

132. Belarus advanced on the first activities of the Policy component of the Project. The Steering Committee was established and the Implementation Plan was adopted for 2015. Different studies have been produced (status assessment, legal review and prioritization exercise, using UNEP’s approach to Sustainable Public Procurement. This included an SPP assessment report, which highlighted the current status of public procurement and established a baseline to monitor the Project’s progress as well as analysis of the legal and regulatory framework for the implementation of the SPP which provided insights on the current legislation and the opportunities it offers to introduce sustainability through proposed recommendations for changes to the existing regulations.

133. A prioritization exercise was carried out in Belarus to select the main categories of sustainable products for inclusion in pilot tenders and procurement by selected public entities in the demonstration phase of the Project. A prioritization workshop was held to select four sustainable products: boiler equipment on local fuels, personal computers, street lamps, and printers.

Progress in May 2016 – April 2017

134. After the completion of policy work in 2013-2015, Moldova and Ukraine launched their demonstration activities focused on the development of Sustainable Public Procurement tools and

guidelines, capacity-building and communication activities, aiming to prepare for the launch of pilot tenders in 2016-2017 see under 3.2).

135. In Belarus a market study has been drafted and is currently being further complemented, analysing whether the selected product categories for pilot tenders can be integrated in the procurement system and whether the market has the capacity to supply these products. The market study will allow identifying as well which will be the main challenges to overcome.

Main achievements towards objectively verifiable indicators

 The National SPP Action Plans were approved and adopted by the Steering Committee in Moldova and Ukraine. Thereby the policy work on SPP has been finalized in these countries allowing for the commencement of the demonstration activities, as referred to under Component 3.2

 Good progress in advancing activities in Belarus, including the establishment of Steering Committee and the adoption of the Implementation Plan. Different studies have been produced (status assessment, legal review and prioritization exercise, using UNEP’s approach to Sustainable Public Procurement. A market study has been drafted and is being further complemented.

Expected challenges in the remaining period

136. The experience in Moldova and Ukraine showed that a more detailed methodology that clearly defines each step under the UNEP SPP Approach was needed. Consequently, the revision and updates of the UNEP SPP Guidelines Terms of Reference continued for each activity in the policy phase, i.e. for the status assessment, the legal review report, the prioritisation exercise, the market study and the SPP Action Plan. These updated Terms of Reference helped Moldova and Ukraine to better define their National SPP Action Plans and also allowed Belarus to produce quality outputs during the status assessment, legal review and prioritization exercise.

137. Organizational changes and political instability in Moldova and Ukraine delayed the activities in the 2016 work plan. A closer cooperation and follow-up with National Focal Points was established to implement the activities related to the Demonstration component in 2016.

138. Due to the non-registration of the EaP-GREEN in Belarus, and the resulting limited ownership of Project activities at national level, activities were delayed in the 2015 work plan. In addition, internal organizational changes in the implementing partner’s organization, caused further delays in the 2016 work plan. The 5th EaP GREEN Steering Committee meeting in February 2016 agreed that Belarus would only complete the policy component and not commence the demonstration activities in 2016.

139. The lack of relevant local expertise in Belarus has proven to be a challenge. A lack of timely delivery from the local partner in Belarus and delays in the provision of final outputs may hinder the full completion of the policy phase in that country.

Work stream 1.7: Promoting more sustainable production processes

140. While constituting a majority of businesses, small and medium-sized enterprises (SMEs) lack, to a large extent, the understanding that higher environmental performance can be a competitive advantage. Most importantly, they have limited capacity to interpret and respond to relevant policy incentives. Many EU and other OECD countries have addressed this challenge by implementing information-based tools and regulatory and financial incentives to encourage SMEs to improve their environmental performance, to comply with and go beyond regulatory requirements. However, EaP countries have given little

consideration to the greening of small businesses. This work stream seeks to help EaP countries to establish a policy framework for improving the environmental performance of SMEs and to promote government-to-business and business-to-business dialogue on SME greening in the EaP region.

Progress in 2014

141. Pilot projects were carried out in Armenia (launched in December 2013) and Moldova (launched in February 2014), with SME surveys conducted in both countries using the same questionnaire and several national stakeholder workshops organised. A draft regional SME Greening Toolkit was developed.

Progress in 2015 and January – April 2016

142. A regional expert meeting was conducted in Kiev, Ukraine in February 2015 to discuss the draft SME Greening Toolkit. A first edition of the Toolkit was published in May 2015 in English and Russian with a view to revising and complementing it upon completion of the country pilot projects.

143. Country-level pilot projects were completed in Armenia and Moldova. Their policy recommendations and in-depth guidance on simplified environmental management systems for SMEs (in Armenia) and a national information scheme on green business practices (in Moldova) were endorsed at national stakeholder workshops. An additional activity was carried out in Moldova to incorporate the pilot project’s recommendations into the national SME Development Strategy and Action Plan.

144. Roll-out national workshops were conducted in Azerbaijan and Belarus to present the SME Greening Toolkit and discuss its relevance in the context of country-specific challenges.10

145. A regional final conference on greening SMEs was organized on 22-23 March 2016 in Chisinau, Moldova. Its purposes were to discuss the role of the regulatory framework to green the enterprise sector, to review lessons learned from the projects and to identify steps that could be taken in other countries to replicate their positive results. The meeting brought together around 45 representatives of the ministries of environment and economy, business support organisations, business associations, representatives of the European Commission, OECD and UNIDO as well as experts from OECD/EU and countries of Eastern Europe and the Caucasus. The main conclusions from the discussion were that several SME greening instruments are already used in the region and SME greening concepts and objectives are better understood and identified, with economic incentives as key drivers of change. The participants agreed that further reform of regulations should focus on simplification and compliance promotion and that there is still a need for more capacity building and awareness raising, and building institutions and networks with industry associations.

Progress in May 2016 – April 2017

146. No activities have been carried out as all tasks envisaged by the Description of the Action have been completed.

Web links

 Regional final conference on greening SMEs (22-23 March 2016, Chisinau)  Policy Highlights - Greening SMEs in EU Eastern Partnership Countries

10 Pilot projects, including similar SME surveys, were carried out in Ukraine and Georgia with complementary funding from the German government. Roll-out events were not needed in these countries.

 SME Greening Toolkit (first edition)  SME Greening Toolkit (second edition)  Promoting better environmental performance of SMEs in Armenia  Promoting better environmental performance of SMEs in Moldova

Main achievements towards objectively verifiable indicators

 Over 800 SMEs in Armenia and Moldova were reached out to during the survey which identified main needs for government policy interventions and created a good basis for stakeholder dialogue;

 The Ministries of Economy of Armenia and Moldova committed to incorporating important elements on SME greening into the national SME development Strategies;

 The analysis and resulting policy recommendations for greening SMEs in EaP countries were incorporated into the OECD SME Policy Index study (a project co-funded by the European Union’s DG GROW), which allowed to convey the Project’s policy messages to a wider audience.

 Regional workshop on Greening SMEs was conducted on 21-23 March 2016 in Moldova at which the final version of the Toolkit was presented.

Expected challenges in the remaining period

147. No further work will be carried out under this Activity as all tasks envisaged by the Description of the Action have been completed.

Table 5. Progress on the activities under Component 1 “Governance and finance tools”

1.1: Supporting strategic policy setting Lead partner: UNEP Progress made: ON TRACK Context: Objectives: Outcomes (impact):  None of EaP countries has established a vertically and horizontally coherent  Support the development of  Resource efficiency and SCP policy planning framework related to sustainable consumption and national SCP policy policies are integrated into production (SCP) and green economy promotion. These goals need to be frameworks national economic and better reflected in in operational plans and programmes of the government  Demonstrate added value of development planning and and budgetary plans. SCP practices implementation processes;  National SCP programmes or action plans are developed and implemented, where requested. PROGRESS IN 2014 Regional-level activities National-level activities Results achieved  A Regional workshop held on In Belarus: In Belarus: Green Economy and Sustainable  A National training workshop on  Around 30 representatives from Ministries, Research Institutes and Consumption and Production in economic modelling held on 2 July NGOs trained on green economy simulation modelling; the Tbilisi, Georgia on 6 May 2014. 2014 methodology and next steps for the GE simulation modelling  A Regional SCP report developed  Two national consultation meetings on analysis defined and agreed upon involving two rounds of review from simulation modelling in Belarus held in  An agreement signed with the Economic Research Institute of the the EaP national focal points. December 2014 Ministry of Economy; two priority areas identified for the analysis, namely energy and transport

In Moldova: In Moldova:  A national consultation and kick off  34 representatives from Ministry of Economy, Ministry of meeting held on 6 June 2014 Environment, Ministry of Agriculture and Food Industry, Scientific  A national consultation and training Research institutes, NGOs and private consulting firms trained and workshop on economic modelling held their awareness raised on green economy simulation modelling from 12-13 June 2014  The approach and next steps for the roll-out of Project activities  A Working Meeting on the agreed upon and priority sectors for the modelling analysis Coordination Mechanism for the identified, namely energy and organic agriculture implementation of Sustainable  An agreement signed with the National Institute for Economic Development and Green Economy in Research to assist with the compilation of data and drafting of Moldova held on 22 July 2014 targeted policy recommendations for the modelling report  The GE simulation modelling  An inter-ministerial Working Group on Green Economy (under the conducted by a team of local and Cabinet) officially established international experts and its results  The data and preliminary results of the draft modelling analysis presented at a national workshop on reviewed and approved by stakeholders at the national workshop 25 November 2014  Draft GE modelling report agreed by Ministry of Environment and  The draft report for the economic Economy and other stakeholders modelling analysis prepared

In Ukraine: In Ukraine:  A national training workshop on  34 participants from government key agencies and scientific economic modelling held on 10-11 research institutes attended the national workshop on economic April 2014; modelling trained on green economy concepts, methodologies and  An expert group meeting held in tools December with a view to define the  An inter-ministerial Working Group on Green Economy established scope and priority areas for the  The expert group narrowed down the priority sectors for the modelling analysis modelling analysis to energy and organic agriculture.  An agreement signed with the Institute of Green Economics for the coordination and development of the GE simulation modelling analysis. At regional level: At regional level:  42 participants attended the regional workshop in Georgia including  The regional report on Resource representatives from the Ministry of Environment, Ministry of Efficiency Economic Outlook translated Economy, civil society, and business from five EaP countries into Russian (Azerbaijan, Belarus, Georgia, Moldova and Ukraine). The workshop raised awareness of decision makers on the economic benefits of environmental policies and return on investment from greener policy options.  The Russian version of the regional report on Resource Efficiency Economic Outlook launched and disseminated at the Regional workshop in Tbilisi.  Report on “Sustainable Consumption and Production Policies and Initiatives in Eastern Europe and the Caucasus” reviewing policies and initiatives in the EaP region drafted and finalized

PROGRESS IN 2015 Regional-level activities National-level activities Achieved results  Launch of the regional report on In Belarus: In Belarus “Sustainable Consumption and  A number of national consultation  Draft modelling analysis (energy supply and demand) Production Policies and Initiatives meetings held on the assumptions and  First draft GE Scoping Study / Modelling Report prepared in Eastern Europe and the base lines for the Green Economy Caucasus” reviewing the progress (GE) on SCP policies and initiatives in  First modelling results submitted for the EaP region at the 4th EaP review by national experts GREEN Steering Committee  The first draft of the GE modelling Meeting report prepared  Update of the Global SCP Clearinghouse with EaP GREEN material and information

In Moldova: In Moldova  Launching event for the GE modelling  Launch of the Green Economy modelling analysis report as a basis analysis report organised at the 4th for the GE Roadmap for Moldova Steering Committee Project and the  Formal establishment of the Working Group on Green Economy and inter-ministerial Working Group Sustainable Development  Work of the inter-ministerial Working  List of policy recommendations for Green Economy Roadmap Group supported, including preparation of meeting materials  A list of relevant policy recommendations for Moldova from EaP-GREEN assessments prepared; an outline for the Green Economy Road Map developed In Ukraine: In Ukraine:  Consultation meetings held on the  Draft modelling analysis (energy supply and demand, and assumptions for the GE policy briefs agriculture sector) including modelling analysis  draft Policy brief on opportunities and potential of agriculture sector  First results of modelling analysis on energy sector shared for review by experts; embedded in a policy brief (agriculture sector) submitted for review and comments by the national expert working group In Moldova and Ukraine: In Moldova and Ukraine:  Contribution to awareness raising and  Awareness raised among the broader public on SCP/GE information events on Green Economy and sustainable consumption and production in Ukraine and Moldova through participation in / organization of dedicated events on GE /SCP (also in combination with awareness raising campaign under component 3.3.), including inter-ministerial Working Group session with introduction to GE, special session on organic agriculture with NGOs/public, presentation/lecture to students, GE presentation at national NGO Forum, video message for high-level national GE conference; support to Deutsche Welle TV documentary and agroTV documentary, development and update of Ministry’s website section on GE in Moldova.

PROGRESS JANUARY – APRIL 2016 In Belarus: In Belarus:  Finalization of results of the draft GE  GE modelling results submitted for review to NFPs and national Scoping Study experts  Commencement of work on the draft In Moldova: green economy action plan  Awareness raised on GE Road Map at high political level as well as In Moldova: among businesses, civil society and other stakeholders.  High-level Round Table discussion and Recommendations received from stakeholders for the inclusion in awareness raising on the Green the national Green Economy Roadmap Economy Road Map following the  Meetings of the Inter-ministerial Working Group regularly supported opening of the exhibition “Made in to review progress on the Green Economy Roadmap and national Moldova”. level activities under EaP GREEN.  Continuation of the support to the inter- In Ukraine: ministerial Working Group on GE.  GE policy brief drafted with economic modelling analysis submitted  Priority setting and agreement on the for review by national experts / working group outline and timeline for the Green Economy Roadmap. In Ukraine:  Draft of GE policy brief on organic agriculture with economic modelling analysis

In Georgia:  Discussions commenced on the assistance for the development of a GE strategy with the NFP and GIZ PROGRESS MAY 2016 - APRIL 2017 Regional-level activities National-level activities Achieved results  Regional journalist training on In Belarus:  Increased awareness on the green economy principles and environmental and green  Inter-Ministerial Working Group approach among decision-makers, journalists, academia, economy reporting and story- Meetings were held for the GE Action NGOs, public at large. telling for more than 30 journalists Plan development (June, October  National Green Economy Action Plan in Belarus developed from all EaP countries (June 2016) and approved by the Government 2016)  Drafts of the Action Plan prepared  Draft National Green Economy Action Plan (Road Map) in  Input provide and an (September-October 2016) and Moldova developed and approved by the inter-ministerial endorsement of the pan- submitted for stakeholder consultations Working Group. European Strategic Framework (November 2016) and subsequent  Draft economic simulation modelling results for the on Greening the Economies and government approval (December agriculture and energy sectors approved in Ukraine the BIG-E (June 2016) 2016)  Institutional setting of inter-ministerial coordination further  Regional experience sharing on In Georgia: fostered and supported in Belarus, Moldova, Ukraine and green economy activities and  Consultation meeting outlining the Georgia progress at a UNECE/UN support to the green economy strategy  Increased awareness on green economy at regional level Environment/GGKP organized development (April 2017) through experience exchange and endorsement of the pan- side event, in the margins of the  Data collection initiated (March 2017) European Strategic Framework on Greening the Economies UNECE Committee on In Moldova: and launching of the BIG-E. Environmental Policy (January  Inter-Ministerial Working Group 2017) Meetings (April, July 2016, February 49

2017) held for the review and agreement on the national GE Action Plan (Road Map)  High-level roundtable discussions with Ministers, businesses and civil society at the national exhibition “Green Economy. Made in Moldova” (February 2017) In Ukraine:  Multi-stakeholder consultations with representatives of Ministries, academia and civil society held on Ukraine’s green economy pathway (December 2016) 1.2: Progress measurement: Green Growth Indicators (GGIs) Lead partner: OECD Progress made: ON TRACK Context: Objectives: Outcomes (impact):  Changing the development path requires analytical evidence that resonates  Consensus on good  Identification and use of both with environmental and non-environmental communities. To generate practices and raised national sets of GGIs. such evidence, governments may need to revisit the set of indicators that awareness about the value  Better integration of economic they currently use. Although the EaP countries have a long history of of GGIs. and environmental decision- collecting statistical data, the collected data are often patchy, insufficient in  Adaptation of GGIs in three making. terms of quality and poorly used in decision-making. The OECD proposed a EaP countries.  Evidence-based monitoring of set of Green Growth Indicators (GGI) on the basis of existing work in  Identification of 6-7 transition towards green international organisations, and in OECD and partner countries. headlines GGIs for regional economy. use. PROGRESS IN 2014 Regional-level activities National-level activities Achieved results  Preparation of a handbook on Moldova Regional level: The informal consultants with the EEA, UNECE and the use of GGIs launched.  Two experts meetings (April and UNEP carried out in December 2014 identified an urgent need for  Production of a policy brief on June 2014). closer co-operation between the work on green growth indicators, the GGIs launched.  Draft pilot study prepared by local Shared Environmental Information System (SEIS) and environmental consultants on measuring green indicators. The discussions resulted in an agreement to organise a growth (June 2014). regional meeting on GGIs and SEIS in March 2015 (see the meeting Ukraine summary http://www.oecd.org/environment/outreach/Summary-  Presentation of GGIs during the record-SEIS-greengrowth-March2015.pdf) national workshop on 16 June 2014, Moldova and Ukraine: Analytical basis created for further work on Kiev. refining sets of GGIs and their incorporation into administrative  A comparative analysis of GGIs procedures. All key stakeholders consulted during bilateral (June 2014) and support provided to interviews and two roundtables conducted as part of the Project the preparation and printing of a scoping. report on GGIs.

PROGRESS IN 2015 Regional-level activities National-level activities Achieved results  Regional OECD-UNECE-EEA-  A report with the analysis of the use  Better understanding of the relations between environmental and UNEP expert meeting on of GGIs in Ukraine completed green growth indicators and the underlying dataflows and Shared Environment Information (September 2015). identification of data gaps. systems and Green Growth in  Workshop on measuring progress Close links established between methodological work and Eastern Europe, Caucasus towards green growth organized in support programmes carried out by international partners and Central Asia (10-11 March Ukraine (4 December 2015, Kiev). (UNECE, UNEP, EEA, OECD) working on the Shared 2015, Paris).  Discussions held with country Environmental Information System (SEIS) for the pan- European region and green economy/growth indicators.  Report “Mapping environmental representatives on the follow up

and green growth indicators in work in Moldova and Ukraine and OECD and Eastern Europe, the development of ToRs for Caucasus and Central Asia launching projects in Armenia,

countries” presented at the Azerbaijan and Georgia.

workshop in Paris and the

meetings of the UNECE

Working Group on

Environmental Monitoring and

Assessment under discussion

item on the EU-funded Shared

Environmental Information

System (SEIS).

 Links established between methodological work and support programmes carried out by international partners (UNECE, UNEP, EEA, OECD) working on the SEIS.

PROGRESS JANUARY - APRIL 2016  Regional handbook and the  Consultation on further work to  Consensus built on a draft regional guide on GGIs Policy Brief on green growth measure progress towards green  Launching a new donor project on GGIs in Armenia indicators completed in May growth in Moldova (March 2016,  Identification of actions to use systematically GGIs in Azerbaijan. Chisinau).  Arrangement of a project on GGIs in Armenia to be funded by OSCE  Discussions with Azerbaijan on organizing a workshop on measuring progress towards green growth in Azerbaijan (May 2016, Baku).

PROGRESS MAY 2106 - APRIL 2017  Presentation of the EaP Azerbaijan Armenia GREEN work and country  Three workshops on green growth  Report on green growth that uses green growth indicators progress at the UNECE Joint measurement (19 May, 2016, 12 Moldova Task Force on Environmental December 2016 and 20 April 2017,  Draft report on green growth that uses green growth indicators Indicators on 30 June - 1 July Baku) Azerbaijan 2016  Elaboration of the indicators based  Establishment of the Inter-ministerial Working Group on Green  Publication of the EaP GREEN report on green growth Growth Indicators Green Growth Measurement Moldova  Draft report on green growth that uses green growth indicators Guide  Meeting of the Working Group on  Project input to the 1st Steering Green Growth Measurement (4 Committee meeting of the EU- November 2016, Chisinau) funded ENI-SEIS II East Project  Development of the indicators (29-30 November 2016, based report on green growth Brussels) Armenia  Development of the indicators based report on green growth in cooperation with the OSCE Georgia  Discussion on green growth indicators in the context of the elaboration of the Green Economy Strategy (28 April 2017) 1.3: Identifying environmentally-harmful subsidies (EHS) and launching Lead partner: OECD Progress made: DELAYED subsidy reform Context: Objectives: Outcomes (impact):  The benefits of reforming environmentally harmful subsidies (EHS) include,  Implement Projects in 3  Number of subsidy schemes among others, reducing the use of resource intensive inputs and subsequent countries to develop action analysed and reforms decrease in pollution levels, fixing market distortions; releasing and/or plans to reform EHS proposed and agreed upon reallocating public funding to other areas, and saving or reducing debt. There schemes in selected within the respective is some evidence that EHS in the EaP countries may be significant. However, sectors. government. until now there has not been any consistent effort to analyse such subsidies  Develop capacity to identify  Existence of specific in these countries and study the effects of their reform on country’s fiscal and EHS and their potential regulatory documents and environmental conditions. This is the first such Project in the region. impacts. decisions related to the EHS  Build political support for reform in the country. EHS reforms. PROGRESS in 2014 Regional-level activities National-level activities Achieved results  Design of detailed Terms of Azerbaijan: A discussion launched in Azerbaijan and Georgia: Despite extensive discussions with the Reference for the preparation of November 2013 with the Ministry of Azeri and Georgian authorities it was not possible to generate an a regional overview study of Environment and the Ministry of official commitment on the practical follow up. energy subsidy schemes in the Economy was finalised in March 2014 Moldova: The reforms of two major schemes were modelled, EaP countries based on with the involvement of the EU analysed and agreed upon: the reduced VAT rates for the information and data available in Delegation in Baku. The Azeri consumption of natural gas and of electricity in the residential sector the public domain. government chose not to participate in (8% and 0%, respectively, instead of the standard 20% VAT rate). the Project. Regional: As a result of the discussions with EaP Partners and the consideration of the feasibility of country specific work it was agreed to 52

Georgia: A discussion launched in March launch in 2015 an overview survey of major energy subsidy schemes 2014. The Ministry of Environment in five EaP countries. supported this activity and provided comments on the scope suggested for Georgia. The Ministry of Economy never provided a final response.

Moldova:  The findings and conclusions of the analytical report were discussed and agreed upon at a stakeholder meeting.  Following comments from participants, the report was completed in English and data and information is being updated in order to include an updated chapter in the report from the regional review.

PROGRESS IN 2015 Regional-level activities National-level activities Expected results  Initial scoping report and a  Collection of information and data Five EaP countries: meeting with international and available in the public domain in  Identification of relevant energy subsidy schemes and preparing national consultants to kick-off Armenia, Azerbaijan, Belarus, detailed inventories in five EaP countries. this activity (September 2015, Georgia and Ukraine (July-October  Quantifying the size of major energy subsidies in the EaP Paris) 2015) countries.  Preparation of an overview  Preparation of draft country  Identification of costs and benefits of using and reforming energy survey of major energy subsidy analytical chapters (November – subsidies in the region. schemes in the EaP countries December 2015)  Dissemination of results from the country-level work at a side event at COP21 (December 2015)  Awareness raising materials presented at the COP21 (December 2015)

PROGRESS JANUARY – APRIL 2016  Finalising the preparation of draft  Draft country chapters prepared for five EaP countries analytical chapters for five EaP  Stakeholder meetings organised in three countries and attended countries (March 2016) by relevant experts who take active part in the discussions  Country-level stakeholder meeting  Three EaP governments verified and validated the analyses and in Armenia to present, discuss and reaching agreement on the need for reforms of inefficient energy agree upon the findings and subsidy schemes conclusions of the country analyses (7 April 2016)  Country-level stakeholder meeting in Ukraine to present, discuss and agree upon the findings and conclusions of the country analyses (24 April 2016)  Country-level stakeholder meeting in Belarus to present, discuss and agree upon the findings and conclusions of the country analyses (28 April 2016) PROGRESS MAY 2016 - APRIL 2017  The presentation of the results of  Country-level stakeholder meeting  Draft country report prepared for the sixth country (Moldova) the analysis in the EaP GREEN in Georgia to present, discuss and  Stakeholder meetings organised in three countries and attended documentation at the agree upon the findings and by relevant experts who take active part in the discussions Environment for Europe conclusions of the country analyses  Three EaP governments verified and validated the analyses and Ministerial meeting in Batumi (26 May 2016, Tbilisi) reaching agreement on the need for reforms of inefficient energy  Country-level consultations in subsidy schemes Azerbaijan to present, discuss and agree upon the findings and conclusions of the country analyses (20-21 October 2016, Baku)  Country-level consultations in Moldova to present, discuss and agree upon the findings and conclusions of the country analyses (29 November 2016, Chisinau)

1.4: Creating market incentives for greener products Lead partner: OECD Progress made: COMPLETED Context: Objectives: Outcomes (impact):  EaP countries struggle with a number of environmental challenges that can  Facilitate the reduction of Adoption of new or reformed be addressed through economic instruments (EIs), including the rapid growth environmental impacts of policies and economic instruments of the use of motor vehicles and associated emissions of carbon dioxide and priority, largely diffused for the management of local air pollutants, the lack of sound waste management solutions for end-of- manufactured products; environmentally harmful products. life vehicles and their parts; the exponential increase of municipal solid waste  Build capacity in EaP from packaging and electric and electronic equipment; the indiscriminate use countries for introduction of pesticides and fertilisers in agriculture, etc. All EaP countries are interested and/or reform of product- in expanding the use of product-related EIs. related EIs. PROGRESS in 2014 Regional-level activities National-level activities Achieved results  Regional expert meeting (6-7  National stakeholder workshop in Regional level: The regional meeting endorsed the regional March 2014, Paris) Moldova (13 June 2014) guidance document (several EaP country ministries were willing to  Policy Manual “Creating market  National stakeholder workshop in reference the guidance on their websites) and highlighted the incentives for greener products” Ukraine (18 June 2014) importance of the brief for policy-makers. Stakeholder endorsement finalised and published  Roll-out workshops on product- of preliminary policy recommendations in the pilot countries.  “Roadmap for policy action”, related economic instruments in presenting policy-makers with a Armenia (June 2014) and in Belarus strategy for using economic (October 2014) instruments for managing environmentally harmful products, prepared and published

PROGRESS IN 2015 Regional-level activities National-level activities Achieved results  Communication campaign and  National stakeholder workshop in All countries: dissemination of the Policy Ukraine (16 April 2015)  Wide dissemination of the Policy Manual and related Manual in all EaP countries.  Pilot project report on product- communication products among policy makers in EaP countries; related economic instruments in Moldova: Ukraine (June 2015)  Improvements designed to the system of environmental product  National stakeholder workshop in taxes. Moldova (17 March 2015)  A system of extended producer responsibility (EPR) to be  Pilot project report on product- introduced. related economic instruments in Ukraine: Moldova (July 2015)  Proposals on the environmental differentiation of excise taxes on  Roll-out workshops on product- motor fuels and motor vehicles; related economic instruments in  Reform proposals introduced to the existing laws and regulations Georgia (March 2015) and in on EPR for environmentally harmful products Azerbaijan (May 2015) Special session of the EAP Task Force on economic instruments for environmentally harmful products (October 2015) 55

PROGRESS JANUARY – APRIL 2016  All activities envisaged under the  All activities envisaged under the  All activities envisaged under the Description of the Action have Description of the Action have Description of the Action have been been completed. been completed completed PROGRESS MAY 2016 - APRIL 2017  All activities envisaged under the  All activities envisaged under the  All activities envisaged under the Description of the Action have Description of the Action have Description of the Action have been been completed. been completed completed 1.5: Improving investment policies and access to finance Lead partner: OECD Progress made: ON TRACK Context: Objectives: Outcomes (impact):  Moving onto a greener, low-carbon and resource-efficient path of economic  Reaching consensus on the  Agreement between the development requires significant investments. The public sector alone cannot conditions and reforms that government and the banking bear the costs of such investments. In order to promote private sector would enable commercial sector on needed regulatory finance, governments need to provide appropriate incentives. Commercial banks in the EaP countries reforms. banks have a potentially important role to play in providing lending for green to support investments in  Number of credit lines investments. However, under the current conditions in EaP countries the green projects. analysed and relevant policy involvement of these banks is rather limited.  Strengthening cooperation recommendations made and between governments and agreed upon. the private banking sector aiming to improve access to private finance. PROGRESS IN 2014 Regional-level activities National-level activities Achieved results  A regional expert meeting Ukraine: Regional level: organised (5-6 June 2014, Paris)  Launching a country level activity  Discussion and approval of the credit lines review methodology by to discuss and agree on a implemented jointly with the Ukraine meeting participants that included representatives of EaP methodology for the in-depth State Export-Import Bank Ministries of Economy, IFIs, EaP local banks, academics, review of environmentally-related (Ukreximbank) to review the Bank’s international experts. credit lines provided by IFIs and experience with the design and  Strengthened cooperation with IFIs and an agreement by the IFIs disbursed by local banks implementation of existing to take part in this activity.  Preparation of an analytical environmental credit lines and Ukraine: Agreement by Ukraine, through Ukreximbank with support by report which contains a review of discussion on the role of the the Ministry of Economy, to participate in the review of the Bank's the experience with the design government in creating the right experience with the design and implementation of existing and implementation of existing conditions that can lead to more environmental credit lines in Ukraine. environmental credit lines in the environmental lending in the country. EaP countries and a  Organisation of a small workshop methodology for in-depth (July 2014, Paris), with the analysis of such credit lines participation of representatives of Ukreximbank and EBRD, a major provider of long-term environmental funding to Ukreximbank, to discuss and agree on the activity scope and organisation of the country work.

PROGRESS IN 2015 Regional-level activities National-level activities Achieved results  Launching a tender to identify an  Mission to review the experience of  Ukraine: A policy-relevant report and reform recommendations international consultant to Ukreximbank in Ukraine with the prepared support this analysis design and implementation of IFI- supported environmental credit lines (July 2015).  Stakeholder meeting in Ukraine to present and discuss the major findings that have emerged from the analysis of the Ukreximbank experience with managing environmental credit lines (September 2015) Discussions with the governments of Georgia and Moldova to launch similar reviews of selected environmental credit lines. PROGRESS JANUARY – APRIL 2016  No activities at the regional level  Stakeholder meeting in Ukraine to  Draft policy-relevant report prepared and recommendations for present and discuss the major reform in Ukraine discussed and formally agreed at a stakeholder findings from the analysis of the meeting Ukreximbank experience with implementing environmental credit lines (February 2016) PROGRESS MAY 2016 - APRIL 2017  Preparation to a conference  No activities at the country level “Unlocking Private Finance for Energy Efficiency and Greener, Low-Carbon Growth in the Eastern Partnership and Central Asia Countries” (29-30 June 2017, Brussels)  Input provided to the regional meeting on financing SMEs (26 April 2017, Tbilisi)

Activity 1.6. Promoting public consumption changes through Sustainable Lead partner: UNEP Progress made: ON TRACK Public Procurement (SPP) practices Context: Objectives: Outcomes:  Governments in the Eastern Partnership countries are important consumers:  To assist countries in the  Awareness raised and their expenditure represents some 20% of the GDP, ranging from 11.3% in development and capacity strengthened on Azerbaijan to 27.3% in Moldova. With the exception of Georgia and Ukraine, implementation of SPP SPP approaches; where governments have already taken specific steps to make their policies by increasing  National SPP Action Plans procurement practices more sustainable, none of the ENPI partner countries awareness and building the are developed in three target have national green public procurement policies in place. Even where capacities of policy makers countries in coherence with relevant provisions for SPP have been enacted in legislation, the operational and procurement managers. existing SCP and sustainable policies are lacking. development policies. PROGRESS IN 2014 Regional-level activities National-level activities Results achieved  The regional awareness raising In Moldova In Moldova: and capacity building workshop  Agreements (Small Scale Funding  27 participants representing the major public procurement players on SPP organized on 7-8 May Agreements, SSFA) signed between of Moldova are informed of the benefits of SPP and the joint 2014, in Tbilisi, Georgia UNEP and the designated application of SPP and eco-labelling Agency/Ministry for SPP in Moldova,  The National Focal Organisation (NFO) and the National Focal and the Ministry of Environment in Point (NFP) formally designated, the Steering Committee for SPP Ukraine and Belarus in support of established; the Project implementation plan for 2014 adopted; the roll out of the UNEP Approach to and the Project administrative and financial management SPP in the three countries modalities and the Project scope agreed upon.  3 inception workshops organized in Moldova, Ukraine and Belarus to (1) In Ukraine: raise awareness on the benefits of  24 participants representing the major public procurement players SPP and the joint application of SPP of Ukraine informed and aware of the benefits of SPP and the and eco-labelling; and (2) launch the joint application of SPP and eco-labelling. country-level SPP activities in the  The National Focal Organization and Focal Point for SPP three countries activities (NFO and the NFP) formally designated by the Government, the Steering Committee established; the Project In Moldova and Ukraine: implementation plan adopted; and the Project administrative and  The status assessment financial management modalities and the Project scope agreed questionnaires completed by the upon. Public Procurement Agency in Moldova and the State Ecology In Moldova and Ukraine Academy (SEA) in Ukraine  Legal Review reports prepared confirming the existence of a  The Legal Review report produced in favourable legal environment in both countries to implement both countries to identify the sustainable public procurement, and highlighting the required possibilities to mainstream SPP regulatory changes within their legal and regulatory  Priority sustainable products which will be included in the pilot frameworks. tenders in 2016 selected: organic fruits and vegetables and  The “Prioritization Exercise” energy efficient doors and windows for Moldova; heat insulation successfully carried out to select and materials, paintwork materials and washing and cleaning products prioritize the main categories of for Ukraine. sustainable products which will be  The draft findings of the market studies confirm the local procured by public entities through productive capacities for the priority products and the potential the pilot tenders in 2015 responsiveness of the market to SPP tenders. 58

 A draft market study was undertaken  SPP Policy and Action Plan workshops provided relevant inputs by Public Procurement Agency and to finalise the SPP Action Plan of Moldova and Ukraine. State Ecology Agency (SEA) with a focus on the priority sustainable In Belarus: products identified earlier. The  39 participants from different organisations including the Ministry objective of the study was to assess of Natural Resources, Ministry of Economy, Ministry of the existing capacity of the local Commerce, Ministry of Agriculture and Food Industry, Ministry of market to respond to future SPP Energy, and the national Confederation of Entrepreneurship tenders. informed and aware of the benefits of SPP and the joint  A draft SPP Action Plan drafted by application of SPP and eco-labelling. the PPA and the SEA.  The Ministry of Natural Resources and Environmental Protection  An SPP Policy and Action Plan designated as the activity NFO. The official appointment of the workshop organized in Moldova and Project NFP took place after the workshop, in December 2014. Ukraine to discuss the draft SPP  The draft list of SC members discussed during the workshop and Action Plan. is pending approval by the Ministry of Natural Resources. The Project implementation plan tentatively adopted by the workshop participants and is pending official adoption by the Steering Committee.

At the regional level:  40 public procurers and representatives from the civil society and the business sector from Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine increased awareness of the benefits of SPP as well as strengthened capacities in SPP policy development and implementation. PROGRESS IN 2015 AND 2016 Regional-level activities National-level activities Results achieved  No regional activities planned In Moldova and Ukraine: In Moldova and Ukraine: under the Description of the  The National SPP Action Plans  National SPP Action Plans adopted Action approved and adopted by the Steering Committees.

In Belarus: In Belarus:  Steering Committee members  Establishment of Steering Committee; adopted Project officially designated; implementation plan for 2015; agreement on Project scope  The revised Implementation Plan for  Status Assessment Report the Project implementation in 2015  Legal Review highlighting the regulatory changes approved by the Steering  Selection of priority sustainable products for inclusion in pilot Committee; tenders in 2016; draft prioritization report  Status Assessment exercise  Selection of sustainable products for inclusion in pilot tenders in completed and the Status 2016 Assessment report produced highlighting the current status of public procurement and establishing a baseline to monitor the Project’s progress;  An analysis of the legal and 59

regulatory framework for the implementation of SPP in Belarus carried out. The Legal Review report produced and provided insights on the current legislation and the opportunities it offers to mainstream SPP within the existing legal and regulatory frameworks through proposed recommendations for changes to the existing regulations.  Prioritization exercise carried out to select the main categories of sustainable products for inclusion in pilot tenders and procurement by selected public entities in the Demonstration phase. Overall six product categories selected out of which three will be prioritized by the Steering Committee during the prioritization workshop in December 2015.

PROGRESS MAY 2016 - APRIL 2017  In Belarus: Draft of a market study  Policy component finalized in Ukraine and Moldova. to examine the readiness of the market to provide sustainable  In Belarus: A market study has been drafted and is being further alternatives for the selected product complemented, to analyse the readiness of the market with categories (boilers, personal respect to the supply of sustainable alternatives for the chosen computers, street lighting). product categories. 1.7: Promoting more sustainable production processes Lead partner: OECD Progress made: COMPLETED Context: Objectives: Outcomes (impact):  While constituting a majority of businesses, small and medium-sized  Establish a policy Policy and legislative changes in enterprises (SMEs) lack, to a large extent, the understanding that higher framework for improving the support to the SME greening. environmental performance can be a competitive advantage. Most environmental performance importantly, they have limited capacity to interpret and respond to relevant of SMEs. policy incentives. Many EU and other OECD countries have addressed this  Develop capacity in EaP challenge by implementing information-based tools and regulatory and countries to promote SME financial incentives to encourage SMEs to improve their environmental greening. performance, to comply with and go beyond regulatory requirements.  Promote government-to- However, EaP countries have given little consideration to the greening of business and business-to- small businesses. business dialogue on SME greening in the EaP region. PROGRESS IN 2014 Regional-level activities National-level activities Achieved results  First draft of the SME Greening  Armenia: an SME survey Armenia and Moldova: Toolkit developed conducted in February-May 2014;  The SME surveys identified main needs for government policy  Special session on SME greening stakeholder workshops (4 June and interventions to improve the environmental performance of SMEs 60

at the annual meeting of the EAP 7 November 2014). and created a good basis for stakeholder dialogue. Task Force in November 2014  Moldova: the Project kicked off  Over 800 SMEs in the two countries were reached out to during with a stakeholder workshop (13 the survey. February 2014); an SME survey conducted in May-August 2014; second workshop (15 October 2014). PROGRESS IN 2015 Regional-level activities National-level activities Achieved results  A regional expert meeting to  Armenia: Final stakeholder Armenia and Moldova discuss the draft SME Greening workshop (9 April 2015); pilot  Active participation of local stakeholders in in the Toolkit (12 February 2015, Kiev). project report (May 2015) development of policy recommendations and specific policy  Dissemination of the first edition of  Moldova: National stakeholder tools. the SME Greening Toolkit. workshops (16 March and 2 June  The Ministries of Economy of Armenia and Moldova  Preparation of a brief for policy- 2015); pilot project report (July committed to incorporating important elements on SME makers based on the Toolkit. 2015); follow-up work on greening into the national SME development Strategies. incorporating project Regional level: recommendations into the national  Wide communication campaign to disseminate the Policy SME Development Strategy Manual and related communication products among policy (September-December 2015) makers in EaP countries.  Roll-out workshops in Azerbaijan (May 2015) and Belarus (October 2015) PROGRESS JANUARY – APRIL 2016  Revision and finalisation and  All country specific activities  Dissemination of the regional guidance documents and pilot publication of the Toolkit and the envisaged under the Description of project results across EaP countries policy brief in English and the Action have been completed Russian and their dissemination  A regional meeting on SME Greening, 22-23 March 2016, Chisinau, Moldova PROGRESS MAY 2016 - APRIL 2017  All activities envisaged under the  All activities envisaged under the  All activities envisaged under the Description of the Action have Description of the Action have Description of the Action have been been completed. been completed completed

Component 2 “SEA and EIA promotion”

148. Component 2 aims to support the integration of environmental considerations into the preparation and adoption of laws, policies, plans, programmes and projects by ensuring that environmental assessments are carried out for initiatives that are likely to have a significant impact on the environment in accordance with the UNECE Convention on Environmental Impact Assessment (EIA) in a Transboundary Context (the Espoo Convention) and its Protocol on Strategic Environmental Assessment (SEA) as well as with the relevant EU legislation. A list of detailed activities under Component 2 is presented in Table 14.

Work stream 2.1: Revision of the existing national regulatory and legislative frameworks

149. The activities under this work stream aim to promote the integration of EIA and SEA systems into the national legal, regulatory, and administrative frameworks of the partner countries, and to improve acceptance of SEA and EIA systems among national stakeholders.

Progress in 2014 and 2015

150. Following the work launched in June 2013 the Ministries responsible for environment in Armenia, Azerbaijan, Belarus, Georgia and Moldova carried out in 2014 reviews of the existing legislative and institutional frameworks for the application of SEA and EIA. The findings of the reviews indicated that although the current legislation and regulations in all the participating countries contained some elements of EIA and SEA, the existing legislation should be enhanced to comply with the requirements of the Espoo Convention, its Protocol on SEA and the relevant EU Directives.

151. As a result the five participating countries (Armenia, Azerbaijan, Belarus, Georgia and Moldova)11 initiated reforms of the environmental assessment legislation.12 The reforms aimed to make the existing procedures for impact assessment processes (i.e. environmental impact assessment, strategic environmental assessment and state ecological expertize) more coherent and aligned with the international law.13 Table 6 provides a summary of the EaP GREEN actions to facilitate the reforms and presents anticipated follow up steps by the countries.

152. To raise awareness of SEA and its benefits among high level officials and to facilitate adoption of the proposed changes in the legislation, the EaP GREEN in 2015 organised targeted awareness raising campaigns in Georgia, Moldova and Ukraine. These included a high level and parliamentary round-tables, production of a video and a brochure on SEA process, its benefits and existing misconceptions that hinder adoption of the draft laws in the EaP GREEN countries.

11 Ukraine obtained support for drafting SEA and EIA legislation in accordance with the EIA and SEA Directives through the EU-funded project “Complementary Support to the Ministry of Ecology and Natural Resources of Ukraine for the Sector Budget Support Implementation” (SBS). SBS supported development of the SEA and EIA laws that were submitted to the parliament in autumn 2015. EaP GREEN Project supported an awareness raising activities to facilitate adoption of these laws. As a result of these activities the Protocol on SEA was adopted by Ukraine. 12 Initially such reforms were planned only in two countries. 13 I.e. the provision of the Espoo Convention and its Protocol on SEA and the EU SEA and EIA Directives.

Table 6. Overview of the legislation to be prepared or amended with the assistance of the Project

Country Legislative review Status of Reform process Status of implementation implementation Armenia Review vis-à-vis Completed, Amending the Law Ongoing (March 2015 – September 2016) the Protocol on October 2014 on EIA and Concept paper for the amendments was prepared in March 2015. However, Armenia SEA/SEA Directive environmental decided to proceed with the finalization of the amendments back to back with the pilot Review vis-à-vis Completed, June expertise application of SEA in a strategic document in the area of waste management the Convention/ 2014 (December 2015 – October 2016). EIA Directive The Espoo Convention Implementation Committee monitors the progress in preparation of the amendments. Azerbaijan Review vis-à-vis Completed, Amending the draft Ongoing. The drafting process was originally planned for Nov. 2014 – May 2015 and the Protocol on October 2014 Law on EIA and in August 2015 was extended to March 2016. The draft law was circulated in the SEA/SEA Directive development of Government in 2015, but not submitted to the Parliament. Review vis-à-vis Completed, June relevant bylaws The final draft (as of August 2015) provides an improved legal framework on EIA and the Convention/ 2014 SEA but, if adopted, amendments would be necessary to bring the law into full EIA Directive compliance with the Convention, the Protocol and the EU Directives. The Espoo Convention Implementation Committee monitors the progress in preparation of the draft law. Belarus Review vis-à-vis Completed, Developing a Ongoing (Mar – Dec 2015) the Protocol on October 2013 chapter on SEA A new law on ecological expertise, SEA and EIA was developed instead of SEA/SEA Directive procedures and developing amendments to the existing Law on the state environmental expertise amendments to The final draft (as of 29 October 2015) provides an improved legal framework on EIA improve the existing and SEA. The draft law is submitted to the Government and will be considered by the EIA system within Parliament in its 2016 spring session However, if the draft law is adopted, the Law on state amendments would be necessary to bring the law into full compliance with the environmental Convention, the Protocol and the EU Directives. expertise The gaps in the existing draft law were communicated to the Ministry. There will be a possibility to address some gaps between the first and the second reading of the draft law in the Parliament and some of them in the secondary legislation. Georgia Review vis-à-vis Completed, Preparing the new Drafting of the Code completed (Sept. 2014 – Sept. 2015) in line with the international the Convention/ January 2014 Law on EIA and law. EIA Directive Completed, SEA (Environmental High level event to facilitate the adoption of the Code organised (11 December 2015) Mapping exercise September 2014 Assessment Code) Draft Code to be submitted to the Parliament in the second half of December 2015 vis-à-vis the and relevant bylaws and considered at the 2016 spring session. Protocol on on detailed SEA

SEA/SEA and EIA procedures Directive14 and public participation guidelines Republic of Review vis-à-vis Completed, Drafting (a) the new Completed (Jan. - Dec. 2014) Moldova the Protocol on October 2014 Law on SEA; (b) the (a) The draft law on SEA was submitted to the Government in December 2014, but SEA/SEA Directive law on changes and did not reach the Parliament before the new Government was appointed in July 2015. amendments to the In August 2015, the draft law was re-circulated to the new Government with a pan to national legislation present the draft law to the Parliament in early 2016 and adopt it by the end of the to ensure year. implementation of (b) Draft law on changes and amendments to ensure implementation of the EIA law the EIA law which developed and will be circulated to the Government in December 2015. came into force in (c) Law on adoption of the first and the second amendments to the Espoo January 2015; (c) Convention are adopted. law on adoption of High level event to facilitate the adoption of the draft Law organised (17 June 2015) amendments of the first and the second amendments to the Espoo convention (adopted) December 2015.

14 The Mapping exercise is a simplified version of the review of the existing environmental assessment system. Compared to the review it does not justify the need for the amending the legislation, but rather aimed to prepare options for the legislative drafting. 64

153. Based on the results of the legislative reviews and experience gained during the legal drafting, a draft regional overview on legislative reforms and practical guidance for transposing the requirements of the Protocol on SEA and into the national legislation was developed and presented at the sub-regional conference “Developing legislative framework for the strategic environmental assessment in line with the Protocol on SEA” held in Georgia in November 2015. The overview will be completed by February 2016. The overview and recommendations will provide references to the EU Directives and aim to support further developments of the legal framework on SEA in the participating countries. They are also a useful source of information for other countries that plan to implement reforms of their national environmental assessment systems.

Progress January – April 2016

154. During this period the main activities were focused on the legal drafting processes in Armenia and Belarus as well as organisation of the side event at the 8th Ministerial Environment for Europe Conference ‘The role of Strategic Environmental Assessment in Greening Economies’.

155. In Armenia, contracts were signed with the international consultants and national implementing organisation to support amending the Law on EIA and Expertise in order to fully transpose provisions of the UNECE Protocol on SEA to the Convention on Environmental Impact Assessment in a Transboundary Context (Espoo Convention). A round table discussion with national stakeholders and an internal meeting of the drafting group organised on 11 March allowed to make an agreement between the Ministry of Environment and the Espoo Convention Secretariat on the overall approach to amending the Law and developed a timeline for the activities.15

156. The gaps in the existing draft law ecological expertise, SEA and EIA were communicated to the officials from the Ministry of Natural Resources and Environmental Protection of Belarus on several occasions, including written communication, the Bureau meeting of the Espoo Convention (19 - 20 January 2016, Geneva), the 35th session of the Implementation Committee of the Espoo Convention, (15 - 17 March 2016, Geneva), the 5th meeting of the Working Group on EIA and SEA (Espoo Convention), (11 - 15 April 2016 Geneva).

157. Moldova concluded the intergovernmental consultations on the draft law on SEA with the Governmental endorsement of the draft Law on 24 April 2016. The draft is now being prepared for submission to the Parliament16.

158. The programme for the regional side event at the 8th Ministerial Environment for Europe Conference (EfE Conference) ‘The role of Strategic Environmental Assessment in Greening

15 The Law assumes that the assessment is merely a technical exercise of evaluating the possible consequences of the implementation of planning documents/intended activities (see definitions of SEA and EIA respectively in art.4.13 and art.4.14 of the Law), which is done by the consultants (see art. 14.1 of the EIA Law) and finally reflected into the EIA or SEA Reports (see definition of “report” in art. 4.25). The approach employed by the Espoo Convention, SEA Protocol and the respective UE Directives assumes that the assessment is incorporated into the respective decision-making. The respective definitions of EIA and SEA are mostly of procedural nature. In this approach, a respective report (EIA or SEA report) serves as only one of the elements of the assessment and the results of the assessment are meant to be included into the final decision authorizing the activity subject to assessment (i.e. a decision permitting the Project or a decision to adopt a strategic document). 16 It is anticipated that the draft Law on SEA of Moldova will be consecrated in the autumn session of the Parliament.

Economies’ was developed in cooperation with the Netherlands Commission on Environmental Assessment.

Main achievements towards objectively verifiable indicators

159. Table 7 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 7. Main achievements towards objectively verifiable indicators by end April 2016

Output indicators Planned By end April 2016

1. Number of national legislative reviews of SEA and, as appropriate, EIA, including recommendations describing necessary legislative, process and institutional improvements 5 5 carried out

2. Number of amended or new pieces of legislation and 5 (4 drafted out of regulations drafted and submitted to governments' consideration which 3 submitted to 2 governments, 1 in the process of preparation) 3. Number of Action strategies to promote approval of such amendments elaborated and implemented not specified 3

4. Sub-regional overview of SEA and EIA systems prepared and disseminated. 1 1

Progress in May 2016 – April 2017

160. In Armenia, the international and national experts worked further on the update of the national legislative framework on SEA and EIA. The drafting process included the second roundtable on developing the national legislative framework on SEA and EIA in Armenia which was organized in February 2017. The meeting provided an opportunity to receive the feedback from the stakeholders on the draft legal documents and resulted in the amended text of the Law on EIA and Ecological Expertise and the draft Governmental Decision on SEA. Both documents were prepared in April 2017 and shall be a subject of further intergovernmental discussions as well as shall be further reviewed by the international legal experts to ensure its full compliance with the provisions of the Espoo Convention and its Protocol on SEA.

161. In Azerbaijan, intergovernmental consultations on a draft law on EIA were concluded in August 2016, resulting in substantive revisions of the draft. The expert review of the revised draft law was completed in February 2017 to provide advice on further steps to establish a legal framework on environmental assessment that is aligned with the Convention and the Protocol.

162. A new Law on state ecological expertise, SEA and EIA of Belarus was elaborated and adopted in July 2016, providing an improved legal framework. Certain gaps that still existed vis-à-vis the provisions of the Espoo Convention and its Protocol on SEA were partially addressed through secondary legislation (regulations on EIA, SEA and state ecological expertise), which was developed from September to December 2016 and adopted in January 2017. The Project consultant reviewed the draft regulations in October 2016, and the adopted document in February 2017, respectively. Further amendments would be needed to achieve full compliance with the Espoo Convention and the Protocol

on SEA. The findings and conclusions were communicated in writing to the Ministry of Natural Resources and Environmental Protection of Belarus, and to the Implementation Committee of the Espoo Convention (37th session, December 2016, Geneva,). In order to support legislative amendments and its further implementation, a training workshops and drafting sessions on developing legislative framework for the EIA and SEA in line with the Espoo Convention and its Protocol on SEA in Belarus were organized on 19 - 22 September 2016 in Minsk.

163. A new Environmental Assessment Code of Georgia was adopted by the Government and submitted to the Parliament for approval in February 2017. The draft successfully passed the first reading in April 2017.

164. The public consultation meeting on the draft Law on SEA was organized in Moldova to present the draft Law and to address possible further proposals on its amendments. The Law on SEA was adopted by the Parliament on 2 March 2017. The draft law on amendments to ensure implementation of the Law on EIA (drafted in December 2015), and the supplementary legislation to adjust the existing legal and normative base to the requirements of the new Law on SEA (drafted in December 2016), are planned to be jointly submitted to the Government after adoption of the Law on SEA.

165. The Law on SEA and the Law on EIA that were adopted by the Parliament of Ukraine in October 2016 were subsequently vetoed by the President of Ukraine. Based on the request of the Ministry of Ecology and Natural Resources, the legal opinion on both laws was prepared and communicated to the Ministry by the official letter of the Secretary to the Espoo Convention in February 2017. The revised drafts were re-submitted to the Parliament in March 2017. The revised Law on EIA was adopted on 23 May 2017 while the revised Law on SEA passed the first reading on the same day.

166. At the regional level, the ”Good Practice Recommendations on the Application of the Convention to Nuclear Energy-related Activities” were finalized and revised by the Working Group on EIA and the Bureau to the Espoo Convention, respectively. The document is expected to be agreed by the Meeting of the Parties to the Espoo Convention on its seventh meeting on 13 – 16 June 2017 in Minsk.

Main achievements towards objectively verifiable indicators

167. Table 8 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 8. Main achievements towards objectively verifiable indicators by end of April 2017

Output indicators Planned By end of April 2017

1. Number of national legislative reviews of SEA and, as appropriate, EIA, including recommendations describing necessary legislative, process and institutional improvements 5 5 carried out

2. Number of amended or new pieces of legislation and 10 (8 drafted out of regulations drafted and submitted to governments' which 5 submitted to consideration 2 relevant governmental bodies, 2 in the process of preparation)

3. Number of Action strategies to promote approval of such amendments elaborated and implemented not specified 3

4. Sub-regional overview of SEA and EIA systems prepared and disseminated. 1 1

Web links

 The second roundtable on developing the national legislative framework on SEA and EIA in Armenia (Yerevan, 16 February 2017) http://www.unece.org/index.php?id=45214#/  The training workshops and drafting sessions on developing legislative framework for the EIA and SEA in line with the Espoo Convention and its Protocol on SEA in Belarus (Minsk, 19 - 22 September 2016) http://www.unece.org/index.php?id=44484#/  Good Practice Recommendations on the Application of the Convention to Nuclear Energy- related Activities https://www.unece.org/fileadmin/DAM/env/documents/2017/EIA/MOP7/28_04_2017_ece_m p.eia_2017_10_e.pdf

Challenges in the remaining period

168. Unstable political situation in Armenia may hinder finalization of amended legislative framework on SEA and EIA.

169. Existing draft law on EIA in Azerbaijan is not yet fully compliant with the Espoo Convention and its Protocol on SEA. Obviously, the transposition of certain provisions (e.g. on transboundary consultations) of the Espoo Convention is a politically sensitive issue in the country, therefore its full integration in the national legal framework may be difficult to achieve. Considering general political state of affairs in the country, it is also uncertain to predict when the draft law can be submitted to the Parliament.

170. Although a new law on state ecological expertise, SEA and EIA of Belarus provides an improved legal framework; certain gaps vis-à-vis the provisions of the Espoo Convention and its Protocol on SEA remain, which were only partially addressed through secondary legislation. The training event planned for September – October 2017 will provide opportunity for further discussions with the relevant national authorities on this matter.

171. While the revised Law on EIA of Ukraine was adopted by the Parliament in May 2017, the revised Law on SEA only passed the first reading. Further development of SEA and EIA system in the country is strongly linked to adoption of the relevant legislation, therefore it may be significantly slowed down or even suspended if both laws are not adopted by the Parliament and signed by the president, respectively.

172. EaP GREEN received five (instead of two as it was planned) requests for drafting EIA/SEA legislation and additional requests for organising constituency building exercises. Thus, to accommodate these requests UNECE and the partner countries agreed to adjust some capacity- building activities as presented in the description of the work stream 2.2 below. Work stream 2.2: Capacity building on SEA/EIA procedures, following good practices including those in use in the EU Member States.

Work stream 2.2: Capacity building on SEA/EIA procedures, following good practices including those in use in the EU Member States

173. The planned activities under this work stream aim to contribute to the development of national SEA/EIA systems and practice; to raise awareness and understanding of the benefits of SEA/EIA at national and local level and in different sectors; to provide opportunities for public participation in decision-making; and to facilitate acceptance among decision-makers, sectoral authorities and the public of the effects of plans, programmes and projects implementing SCP policies.

Progress in 2014 - 2015

Workshops, including training, on the application of the Protocol 174. In 2014 - 2015 national level and local training workshops and awareness raising events on SEA and EIA were conducted in all the EaP GREEN countries in accordance with the national priorities set by the Espoo Convention National Focal Points (NFPs) and EaP GREEN NFPs. Since the EaP GREEN identified in 2013 that in absence of national legal framework, four day comprehensive training workshops that were originally foreseen in the EaP GREEN description of action are premature. Therefore, the 2014-15 events had more practical character and were carried out in conjunction with the SEA pilot projects in Azerbaijan, Armenia, Georgia and Republic of Moldova. In addition, the four and a half day training programme was divided into two parts to allow participants to apply obtained knowledge in practice via SEA pilots for a selected national strategic document. In Belarus and Ukraine workshops were built on the outcomes of legislative reforms and aimed at awareness raising, promoting changes in the existing legislation, presenting practical examples from EU countries and outlining roles of the sectoral, local, environmental and health authorities in the SEA process.

Pilot Projects 175. In 2013-2015 one pilot project in EIA in transboundary context and five pilot projects on SEA were identified and initiated17, two pilot of which were completed. Table 9 presents and overview of the pilot projects.

Table 9. SEA and EIA pilot projects and their implementation progress

Country Pilot Project focus Status of implementation

Pilot project on EIA in a transboundary context

Belarus & Testing the post project analysis procedure under the Completed (April 2013 – April 2014) Ukraine Espoo Convention Results disseminated at the regional conference in Minsk, 15 April, 2015 Pilot Projects on SEA

Armenia A pilot application of the SEA procedure (SEA pilot Initiated: December 2015 project)to Armenia’s “Strategic Development Plan, Expected competition date: Road Map and Long Term Investment Plan for the November 2016 Solid Waste Management Sector in Armenia”

17 To facilitate identification and implementation of pilot projects in the participating countries, UNECE developed criteria for selecting pilot projects and organized special training sessions at the sub- regional events in Minsk (April 2014) and Prague (December 2014).

Azerbaijan Application of SEA for the State Strategy on Alternative Initiated: March 2015 and Renewable Energy Resources Use in Azerbaijan Expected competition date: February for 2015-2020 2016

Georgia SEA Pilot project on National Waste Management Initiated: July 2015 Strategy and Action Plan in Georgia Expected competition date: February 2016

Moldova Application of SEA for the Master Plan of Orhei Town Completed (July 2014- June 2015) Results disseminated at the final high level event (17 June 2015)

Practical application of the Draft Law on SEA in Initiated: December 2015 Moldova for the Road Map on promoting green Expected competition date: October economy 2015

176. In January 2015, Ukraine indicated its interest in carrying out a pilot SEA at the national level for the waste management action plan. However, by October 2015 the Ministry indicated that it is still in the process of developing the waste management legislation and it is not yet ready to set up the process for updating the waste management action plan. In October 2015, the Canadian Government started a regional development project in Ukraine that foresees four pilot SEAs at the local level. EaP GREEN discussed synergies with the Project. As a result two national experts that will lead implementation of the four SEA pilots for local community development strategies were trained as trainers. Further discussions are ongoing to identify synergies related to the organisation of training events in 2016. ECE and the EU Delegation in Ukraine are in discussion regarding cooperation with the EU funded project “Support to Ukraine in approximation of the EU environmental acquis”.

177. Links were also established with projects supported by Canada, Germany and the World Bank on SEA and EIA projects in Armenia, Georgia and Ukraine which contributes to the enhanced multistakeholder co-ordination and experience sharing events and awareness raising activities.18

Development of national guidelines 178. Concepts of the national guidelines on SEA procedures were discussed at the sub-regional EaP GREEN event on SEA. The Guidelines will be developed in 2016 based on the results of the legal drafting and the pilot projects in each individual country. Azerbaijan, Belarus, Georgia and the Republic of Moldova also proposed to prepare bylaws that should enshrine the SEA/EIA procedures into the national legal and administrative systems (see above).

18 Co-operation with the Word Bank in Georgia focused on a pilot SEA for electricity grids that was planned in co-operation with the EBRD. The Georgian government requested EaP GREEN to carry out the pilot SEA to timely test the draft law. Co-operation with GIZ in Georgia focused on a project on legislatives assistance to Georgia to ensure that cumulative effects of the hydropower plants are incorporated into the EIA reports. The EaP GREEN cooperated with GIZ to ensure that the recommendations on cumulative effects provided by GIZ have been properly reflected in the draft law. In Ukraine, the EaP GREEN will train national trainers that will guide national teams involved in the Canadian project to carry SEAs in four municipalities.

Sub-regional coordination and experience sharing events 179. From 2014 and 2015 several subregional events were organised according to the Project plan (Table 10). Coordination meetings for planning of the EaP GREEN were conducted during the Meeting of the Parties to the Espoo Convention (June 2014) and the Working Group on EIA and SEA (May 2015).

Progress January - April 2016

Workshops, including training, on the application of the Protocol 180. Training workshops on practical application of SEA were carried out in Armenia and Moldova in conjunction with the implementation of the pilot projects. In Armenia, the training was focused on SEA scoping and baseline analysis of the Waste management road map. In Moldova, the training aimed to help the participants to carry out the impact assessment of the National Green Economy Road Map.

181. A follow up training on the role of environmental and health authorities in scoping was organised in Georgia. An agreement was reached on further training activities with the EU funded project ‘Support to the Approximation in various fields as part of the environmental provisions under the EU-Georgia Association Agreement’. This agreement allows for synergies and ensures that activities of the two projects do not overlap.

182. In Ukraine, an agreement with the Ministry of Ecology and Natural Resources of Ukraine was reached for the focus of the 2016 training programme (assessment of the quality and relevance of SEA scoping reports and SEA reports as well as to develop recommendations to the Scoping Declaration and the SEA as required by the Art. 7, 8, 11 and 14 of the Draft Law on SEA) and schedule of the training events. The training will be carried out in close cooperation with the project “Partnership for Local Economic Development and Democratic Governance” (PLEDDG) funded by the Government of Canada, implemented by the Federation of Canadian Municipalities19. The activities will allow building synergies between various projects and interventions pertaining to SEA in Ukraine.

183. In addition, coordination is established with the legal experts of the EU-funded project “Support to Ukraine in approximation of the EU environmental acquis”. It is agreed that the legal experts will attend the training event where necessary to present the draft SEA legislation.

Pilot Projects 184. The SEA national teams in Armenia and Moldova have been successfully carrying out the SEA pilot project for the national level strategic documents. During this period, the SEA national teams produced initial drafts scoping report and provided initial SEA recommendations to the planning authorities.

185. In Azerbaijan the SEA report was finalised in March 2016.

19 The PLEDDG takes place in four Regions (Oblast) of Ukraine and aims at supporting the preparation of one regional development plan and several town/city spatial master plans in selected communities (including SEA application). However, the PLEDDG did not foresee any training budget for the planning and SEA experts. Thus, the PLEDDG experts lack knowledge on the practical application of SEA.

Development of national guidance documents 186. The year 2016 is marked by the development of the national guidance documents in five countries except of Belarus. The countries established national working groups (mostly on the basis of the SEA Pilot teams and the legal drafting teams) and developed initial concepts of the guidance. The concepts address the specific needs of the beneficiary countries. In some countries they aim to provide practical step-by-step guidance on how to implement SEA procedure by sectoral ministries, while in others they also focus on the roles of the environment and health authorities in scoping and quality control of SEA report.

Sub-regional coordination and experience sharing events 187. A coordination meeting of the Espoo Convention Focal point was held on the margins of the 5th meeting Working Group on EIA and SEA (Espoo Convention) (11 - 15 April 2016). The meeting was dedicated mostly to the administrative matters. The NFPs also reiterated their needs for further assistance in sustaining the legal and administrative reforms beyond the EaP GREEN programme.

Main achievements towards objectively verifiable indicators

188. Table 10 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 10. Main achievements towards objectively verifiable indicators by end April 2016

Output indicators Planned By end April 2016

1. Number of staff trained at At least 30 participants per country various levels: from awareness repeatedly raised its qualifications on among senior decision-makers to SEA during the EaP GREEN various a good practical understanding training events and awareness raising among planners; events.

At least 8 national experts in Armenia, Azerbaijan, Georgia and Moldova obtained practical experience on SEA application through the implementation Not indicated of the pilot projects

At least 4 national experts per country are trained as trainer on SEA

50 national experts from Belarus and Ukraine enhanced their understanding of the post project analysis procedure under the transboundary EIA procedure. 2. Number of produced training materials tailored to national and 6 6 local conditions;

3. Training methodology 1 elaborated, used at training 1 (training manual will be completed in events, and disseminated; autumn 2016)

4. Number of national guidance documents, based on the regional resource manual, 6 To be prepared by end of 2016 prepared and disseminated;

5. Number of multi-stakeholder sub-regional coordination and experience-sharing events held Up to 3 events 3

6. Number of pilot SEAs and EIAs carried out for plans, 6 programmes and projects (2 completed + 4 to be completed in Up to 6 implementing SCP related 2016) policies in the framework of the Action.

Progress in May 2016 – April 2017

Workshops, including training, on the application of the Protocol 189. Similar to the previous reporting period, the training workshops on practical application of SEA were organized in Armenia and Moldova as a part of the SEA pilot projects. The training in Armenia addressed mainly assessment of the likely impacts and formulation of the mitigation measures, while in Moldova the focus was given to the identification of needs and opportunities for enhancing green development of key economic sectors elaborated in the draft National Green Economy Road Map.

190. Following an agreement on coordination of the Project training in Georgia with activities of the EU funded project ‘Support to the Approximation in various fields as part of the environmental provisions under the EU-Georgia Association Agreement’, the training workshop on SEA for representatives of the planning authorities and consultants was carried out. Also, an expert support was provided to three training workshops organized under the above mentioned EU funded project (training on EIA for the Ministry of Environment and Natural Resources of Georgia, training on EIA for developers and consultants, and the training on SEA for the Ministry of Environment and Natural Resources of Georgia and the Ministry of Labour, Health and Social Affairs of Georgia). Additional one-day training on practical application of SEA was carried out in April 2017 to support practical application of the SEA procedure as stipulated by the Environmental Assessment Code of Georgia.

191. Two trainings on SEA were conducted in Ukraine in cooperation with the project “Partnership for Local Economic Development and Democratic Governance” (PLEDDG) funded by the Government of Canada, implemented by the Federation of Canadian Municipalities. The first workshop aimed at building capacities for implementing SEA procedure of the regional and local planning authorities in four regions that are part of the PLEDDG project, as well as of the environmental and health authorities from the regional administration of these four regions. The second workshop was targeted to the representatives of central and regional executive authorities.

Pilot Projects 192. The final draft of the SEA report summarizing the findings and conclusions of the pilot SEA of the National Strategy of Azerbaijan on the Use of Alternative and Renewable Energy Sources 2015-2020 was revised and a short summary was prepared in English and Russian languages. The results and outcomes of the SEA pilot were presented during the 7th International Forum on Energy for Sustainable Development (21 October 2016, Baku).

193. The work on pilot SEAs continued in Armenia and Moldova. The national SEA team in Armenia finalized the scoping report and drafted the SEA report in cooperation with international SEA experts. Both reports were consulted with relevant stakeholders. For the scoping report, a series of the regional public consultation meetings was organized providing opportunity for the public and other relevant stakeholders in five regions to provide comments regarding the key environmental and health issues related to the National Strategic Development Plan, Road Map and Long Term Investment Plan for the Solid Waste Management Sector in Armenia. The final consultation workshop to present and discuss the findings and conclusions summarized in the draft SEA report was carried out in Yerevan (March 2017). Inputs from the discussion were considered in the pre-final draft of SEA report.

194. Suggestions and recommendations formulated by during the scoping stage of the SEA pilot in Moldova were presented at the meeting of the Inter-ministerial Working Group on Green Economy. A working meeting with the international SEA expert enabled to the national SEA team in Moldova to outline the structure and the content of the SEA report and to discuss further steps in SEA process. The scoping report was finalised, and the draft SEA report prepared. An intensive communication with the team preparing the National Green Economy Road Map during entire SEA pilot resulted in integration of a number of SEA recommendations in the draft Road Map.

Development of national guidance documents 195. In Azerbaijan, initial concept on ‘Recommendations on implementation of the national SEA procedure’ was developed by the working group of the national experts in cooperation with international experts, which was established to elaborate the document. The work shall continue in summer and fall 2017.

196. The “Recommendations/Guidelines on Practical Application of Strategic Environmental Assessment (SEA) in Georgia” were finalised in December 2016. The document aims to complement provisions of the Environmental Assessment Code and will be used in practice after adoption of the Code20. It provides detailed ‘instructions’ on how to implement SEA procedure including forms to be used in various SEA steps, recommended consultations, or guiding questions to be considered when reviewing the quality of SEA report.

197. The drafting process was used as another means of capacity building. The working group consisted of the representatives of the Ministry of Environment and Natural Resource Protection, and the Ministry of Labour, Health and Social Affairs, as well as the national and international experts who played important roles in preparing the guidelines. An expert from the EU funded project ‘Support to the Approximation in various fields as part of the environmental provisions under the EU- Georgia Association Agreement’ was involved in the preparation of the guidelines to ensure synergies with the recent legislative development. Likewise, EaP GREEN national expert assisted in preparation of the EIA guidelines drafted within the above EU-funded project.

198. In Moldova, an expert meeting on the SEA guidelines was organized in October 2016 to agree on the general structure and content of the document and to outline the next steps of its preparation. Following conclusions from the meeting, the draft Guide on Implementation of the Law on SEA will be elaborated by the national team, and revised by the Ministry of Environment and the international consultant in May 2017.

20 It may, however, require certain updates of the guidelines to fully reflect the Code as adopted.

199. Preparation of the recommendations for practical application of SEA in Ukraine was initiated in April 2016. The SEA recommendations aim at providing practical guidance on how to apply the SEA procedure in practice. The draft versions were consulted with the Ministry of Ecology and Natural Resources of Ukraine as well as with experts from the EU-funded project “Support to Ukraine in approximation of the EU environmental acquis”.

Sub-regional coordination and experience sharing events 200. The EaP GREEN regional coordination meeting was carried out during the meeting of the Working Group on EIA and SEA (7 – 10 November 2016, Geneva).

Main achievements towards objectively verifiable indicators

201. Table 11 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 11. Main achievements towards objectively verifiable indicators by end April 2017

Output indicators Planned By end April 2017

1. Number of staff trained at At least 30 participants per country have various levels: from awareness raised their qualifications on SEA during the among senior decision-makers to EaP GREEN various training events and a good practical understanding awareness raising events. among planners; At least 10 representatives of the Ministry of Natural Resources of Georgia and the Ministry of Labour, Health and Social Affairs of Georgia enhanced their capacity to perform the role of environmental and health authorities in SEA scoping and quality control.

Not indicated At least 8 national experts in Armenia,

Azerbaijan, Georgia and Moldova obtained practical experience on SEA application through the implementation of the pilot projects

At least 4 national experts per country are trained as trainer on SEA

3. Training methodology 1 (one training manual was completed in elaborated, used at training December 2016, however its further revisions 1 rd events, and disseminated; are planned after the 3 subregional SEA/EIA

event in November 2017 to accommodate the feedback from the participants)

4. Number of national guidance documents, based on 2 completed, 2 drafted, 2 to be prepared in the regional resource manual, 6 2017 prepared and disseminated;

5. Number of multi-stakeholder sub-regional coordination and experience-sharing events held Up to 3 events 2

6. Number of pilot SEAs and EIAs carried out for plans, programmes and projects 6 Up to 6 implementing SCP related (4 completed + 2 to be completed in 2017) policies in the framework of the Action.

Web links

 Training workshop on practical application of SEA, Armenia (Yerevan, 23-24 June 2016), http://www.unece.org/index.php?id=44115#/  Working meeting on the SEA report, consultations on the draft Law on SEA, and expert meeting on the SEA guidelines, Moldova (Chisinau, 12 - 13 October 2016) http://www.unece.org/index.php?id=44127#/  Workshop on SEA for planning Authorities and consultants (Tbilisi, 30 November - 1 December 2016), http://www.unece.org/index.php?id=44572#/  Training workshop on practical application of SEA (Tbilisi, 27 April 2017), https://www.unece.org/environmental-policy/conventions/environmental- assessment/meetings-and-events/environmental-impact-assessment/workshops-espoo- convention/2017/training-workshop-on-practical-application-of-strategic-environmental- assessment-sea/doc.html#/  Training workshop on practical application of SEA for representatives of executive authorities and local self-government authorities (Kyiv, Ukraine, 25 - 26 October 2016), http://www.unece.org/index.php?id=44125#/  Training workshop on practical application of SEA for representatives of central and regional executive authorities in Ukraine (Kyiv, 15 - 16 March 2017), http://www.unece.org/index.php?id=45462#/  The role of Strategic Environmental Assessment in renewable energy planning: Sub-Session at the Seventh International Forum on Energy for Sustainable Development (Baku, Azerbaijan, 21 October 2016), http://www.unece.org/index.php?id=44045#/  A short summary of the SEA pilot in Azerbaijan in English http://www.unece.org/fileadmin/DAM/env/eia/documents/EaP_GREEN/Azerbaijan_SEA_Pil ot_Project/SEA_pilot_summary_Azerbaijan_ENG.pdf and Russian http://www.unece.org/fileadmin/DAM/env/eia/documents/EaP_GREEN/Azerbaijan_SEA_Pil ot_Project/SEA_pilot_summary_Azerbaijan_RUS.pdf language.  Information about the pilot SEA in Armenia http://www.unece.org/environmental- policy/conventions/environmental-assessment/about-us/protocol-on-sea/enveiaabouteap- green/environmental-policytreatiesenvironmental-impact-assessmentabout-usprotocol-on- seaenvseaeapgreensea-pilot-projects/armenia.html  Information about the 2nd pilot SEA in Moldova http://www.unece.org/environmental- policy/conventions/environmental-assessment/about-us/protocol-on-sea/enveiaabouteap- green/environmental-policytreatiesenvironmental-impact-assessmentabout-usprotocol-on-

seaenvseaeapgreensea-pilot-projects/moldova-application-of-sea-for-the-national-level- pilot.html

Challenges for the remaining period

202. SEA pilots in Armenia and Moldova have been delayed. In Armenia, the reasons included an extensive public consultation on SEA scoping at the regional level and an additional time needed to coordinate inputs from the national SEA experts. In Moldova, the delay has been linked to the pace of developing the National Green Economy Road Map. In result, both SEA pilots have been extended beyond original schedule and shall be finalized by September – October 2017.

203. During the Project advisory mission to Belarus (10-12 May 2016), Belarus requested a pilot application of SEA, that would help the environmental and sectoral planning authorities to get familiar with the SEA procedure. Due to the lack of funds and closure of the EaP GREEN in December 2017 UNECE will not able to positively address this request under the current Project.

204. Ukraine indicated a need for applying SEA for several important national strategic documents (e.g. the National Transport Strategy, National Energy Strategy to 2035, or the National hydro-energy programme) and mentioned during the mission of the EaP GREEN Project Manager to Ukraine in January 2017 certain difficulties in convincing the planning agencies to initiate SEA procedures. Although further SEA pilots cannot be accommodated in the remaining period of the EaP GREEN, support to practical application of SEA should be considered as one of the priority for any follow-up activities in the country.

205. Considering certain delays in updating the national legislative framework for SEA in Armenia, is has been agreed with the Ministry of Nature Protection to postpone preparation of the SEA guidelines after the amendments of the Law on EIA and the Governmental Decision on SEA are drafted (i.e. in summer 2017).

206. Although an initial concept on ‘Recommendations on implementation of the national SEA procedure’ in Azerbaijan was already developed, it has been agreed with the Ministry of Environment and Natural Resources to postpone it further elaboration to summary 2017 to reflect the latest status of the legislative framework.

207. Preparation of the SEA recommendations in Ukraine was slowed down due to delayed adoption process of the SEA legislative framework. After the presidential veto, the Ministry of Environment suggested to link the recommendations mainly to the international good practice (while the initial draft followed the provisions of the draft Law on SEA submitted to the parliament in 2016). As in the time of writing of this report (May 2017) the revised Law on SEA passed the first reading in the parliament and there is a chance it will be adopted in several months, there may be a need to partially update the draft SEA recommendations to closely follow revised legal provisions. This may require, however, allocation of additional time and funds to the national experts.

208. With a gradual introduction of SEA systems in several beneficiary countries a number of SEA cases will grow. This will lead to an increased demand for administrative capacities within planning governmental authorities to carry out SEA for developmental plans and programmes and within environmental and health authorities for performing their roles in SEA procedures initiated by the planning authorities and for quality control of the SEA documentation. Also, it will be important to ensure sufficient capacity and quality of SEA practitioners and experts to execute SEAs. Thus, further support will be needed to sustain the results of the EaP GREEN beyond 2017.

Work stream 2.3: Strengthening the administrative capacities

209. Strengthening the administrative capacities of the authorities in charge of the environmental assessment is needed in order to clarify responsibilities and roles of competent authorities for SEA and EIA procedures, improve inter-institutional cooperation and involve all the relevant actors in the legislative reviews, technical assistance, training on and pilot implementation of SEA/EIA (see work stream 2.1. and work stream 2.2 for more details).

Progress in 2014 - 2015

210. Roles and responsibilities of the sectoral and environmental authorities were clarified during the legislative reviews of EIA and SEA. They are now clearly communicated in the draft laws on EIA and SEA in Azerbaijan, Georgia and Moldova. Planned amendments for the law of Armenia on EIA, SEA and environmental expertise and the draft law of Belarus on EIA, SEA and environmental expertise will further address the required institutional reforms in these countries. The recommendations are documented in the draft ‘Practical Guidance on reforming legal and institutional structure with regard to application of SEA procedure in accordance with the UNECE Protocol on SEA’.

211. Representatives of ministries responsible for economic and industrial development, energy, transport, agriculture, tourism, mining, forestry, and health were invited and took an active part at all EaP GREEN meetings on SEA and EIA, including round-tables to discuss legislative reforms of environmental assessment systems, training workshops on practical application of SEA and awareness raising events for sectoral authorities on SEA. . In Azerbaijan, Georgia, and Moldova, some sectoral authorities were trained for and participated in the pilot application of the SEA.

212. Special events to promote benefits of SEA and discuss role of the sectoral authorities were organised in Georgia, Moldova and Ukraine for high-level official, parliamentarians and middle level managers.

213. Suggestions for new institutional structures under the proposed EIA and SEA systems were developed by Georgia and Belarus.

214. A short video clip on SEA procedure and benefits was prepared in both English and Russian versions and its pre-final version showed at the Training of Trainers Workshop and several other national events (e.g. the final SEA public consultation workshop in Azerbaijan). The feedback gained form auditorium indicates that the clip explains in a clear way what SEA is, what its main benefits and stages are, and what are the roles of a planning and an environmental authority.

215. The draft brochure for planning authorities on SEA benefits was prepared providing basic information about a good SEA practice, its main procedural and analytical steps, as well as explaining common ‘myths’ about SEA that hinder legal and institutional reforms in the participating countries.

Progress January - April 2016

 Finalisation and publishing of the brochure for planning authorities on SEA benefits in English, Russia and Georgian.

 Dissemination of a short video on SEA through the website of the Ministries of environment of the beneficiary countries, and the relevant Ministries of the European Union countries.

 Organisation of a follow up training on the role of environmental and health authorities in scoping in Georgia.

 Reflection of the roles and responsibilities of the various stakeholders in the concepts of the national guidance documents.

Main achievements towards objectively verifiable indicators

216. Table 12 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 12. Main achievements towards objectively verifiable indicators

Output indicators Planned By end April 2016

1. Relevant national authorities represented in the round tables and training events (ownership) Not indicated Preparation of statistics is in progress

2. Number of At least three recommendations on recommendations on institutional n/a institutional development per country improvements prepared and were prepared through the legislative discussed at round table events; reviews. 3. Number of training events with institutional building carried out; n/a 11

4. Number of national guidance documents clarifying roles and responsibilities for EIA and SEA procedures approved by 6 Ongoing - to be prepared by end 2016 governments;

5. Number of pilot EIAs and SEAs 6 carried out for plans, programmes (2 completed + 4 to be completed in Up to 6 and projects implementing SCP 2016) related policies, in the framework of the Action.

Progress in May 2016 – April 2017

217. The roles and responsibilities of environmental and health authorities and other main actors in SEA processes are addressed in all guiding documents on SEA prepared so far (i.e. Georgia, Moldova, Ukraine).

218. The second follow up training on the role of environmental and health authorities in SEA dedicated to the quality control was organised in Georgia. Also, the final national EaP GREEN event on SEA and EIA component was carry out to present the outcomes and results regarding SEA and EIA achieved within the EaP GREEN in the country and to discuss priorities and needs regarding further development of SEA and EIA system in Georgia. The outcomes of the discussions and the results of the questionnaire survey (carried out before the event) shall be integrated in the ‘Capacity building strategy on SEA and EIA in Georgia’, which aims to provide a background to the Ministry of

Environment and Natural Resources Protection and other relevant stakeholders for further coordination of the activities towards establishing the SEA and EIA system in the country.

219. A high-level round-table on benefits of introducing modern SEA system in Ukraine was organized in February 2017 to support adoption of the legislative framework for SEA. 178. A short video on SEA was prepared in Azerbaijani, Georgian, and Ukrainian versions and disseminated through the UNECE website and the social media.

Main achievements towards objectively verifiable indicators

220. Table 13 presents the achievements of this part of the Component 2 towards objectively verifiable indicators.

Table 13. Main achievements towards objectively verifiable indicators by end April 2017

Output indicators Planned By end April 2017

In reporting period (May 2016 – April 1. Relevant national authorities 2017), more than 70 participants from represented in the round tables altogether 35 various national Not indicated and training events (ownership) authorities participated at the training workshops and other events organized at the national level. 2. Number of At least three recommendations on recommendations on institutional n/a institutional development per country improvements prepared and were prepared through the legislative discussed at round table events; reviews. 3. Number of training events with institutional building carried out; n/a 13

4. Number of national guidance documents clarifying roles and responsibilities for EIA and SEA 2 completed, 2 drafted, 6 procedures approved by 2 to be prepared in 2017 governments;

5. Number of pilot EIAs and SEAs carried out for plans, 6 (4 completed + 2 to be completed in programmes and projects Up to 6 implementing SCP related 2017) policies, in the framework of the Action.

Web links

 Training workshop on SEA quality control in Georgia (Tbilisi, 28 November 2016), http://www.unece.org/index.php?id=44117#/  The final national EaP GREEN event on SEA and EIA component in Georgia (Tbilisi, 26 April 2017), https://www.unece.org/environmental-policy/conventions/environmental- assessment/meetings-and-events/environmental-impact-assessment/workshops-espoo- convention/2017/final-eap-green-event-on-sea-and-eia-component/doc.html#/  A high level round-table on benefits of introducing modern SEA system in Ukraine (Kyiv, 28 February 2017) http://www.unece.org/index.php?id=45276#/

 Video on SEA in Azerbaijani https://www.youtube.com/watch?v=9J7cKCNB2-E, Georgian https://www.youtube.com/watch?v=IkcW5ghQAgs, and Ukrainian https://www.youtube.com/watch?v=dLMN6eg9prA languages (all language versions can be found at https://www.unece.org/environmental-policy/greening-the-economy-in-the-pan- european-region/eap-green.html).

Challenges for the remaining period

221. EaP GREEN initiated legislative and institutional reforms of the environmental assessment systems in Armenia, Azerbaijan, Belarus, Georgia, and Moldova. The project has also raised awareness of the national planning and environmental authorities about SEA. Competing priorities for the limited governmental budget constitute a major obstacle that hinders adoption of the proposed legislation and approval of the suggested institutional reforms. Further awareness raising campaigns and pilot projects on practical application of SEA in various economic sectors are needed to better estimate the costs of SEA in a given national context and to evaluate its social value, including creation of additional work places.

222. Considering a high interest of the Ministry of Environment and Natural Resources Protection and the other relevant stakeholders in preparation of the capacity building strategy on SEA and EIA, it may be beneficial to develop similar document also for other the beneficiary countries to outline existing challenges and priorities for further development of the national SEA/EIA systems. However, this will require allocation of additional resources.

Table 14. Progress on the activities under Component 2 “SEA and EIA promotion”

2.1: Revision of national regulatory and legislative frameworks Lead partner: UNECE Progress made: ON TRACK Context: Objectives: Outcomes:  The existing environmental assessment legislation in many EaP countries,  Promote the integration of  Increased number of EaP provides for environmental impact assessment (EIA) procedures at the national EIA and SEA systems into the countries, Parties of the and transboundary context, and contains elements of strategic environmental national legal, regulatory, and Protocol on SEA and the assessment (SEA). However, there were indications that gaps in legislation and administrative frameworks of Espoo Convention practice prevented countries from conducting EIA and SEA procedures in line the partner countries.  Environmental assessment with the Convention on Environmental Impact Assessment in a Transboundary  Improve understanding for legislative frameworks Context (Espoo Convention) and its Protocol on SEA, as well as with the relevant and acceptance of the incorporate provisions for SEA EU legislation. A review of national legislative and other regulatory framework on necessary measures for and EIA in line with the EIA and/or SEA in these countries has been recently undertaken, which has efficient implementation of Convention, the Protocol and proven an efficient tool for identifying areas of concern and improvement. SEA and EIA among national relevant EU Legislation stakeholders. PROGRESS IN 2014 Regional-level activities National-level activities Results achieved  A four hour session on practical  Armenia: Review of national  Armenia and Azerbaijan: draft reports of the reviews of national considerations for developing legislative and institutional legislative and institutional framework of SEA and opinion papers on national legislative frameworks for framework of SEA completed, the draft EIA laws prepared (see column 2 for references). the application of SEA held at the round-table meeting to discuss the  Georgia: background documents for development of a draft Law on “Subregional conference, presenting results of the review organized (26 EIA and SEA in Georgia elaborated. Notably, Report on analysis of results on pilot project on post-project September 2014, Yerevan); Review the existing elements and gaps in the national legislation of Georgia analysis with Belarus and Ukraine of the national law on EIA and related to implementation of the Protocol on Strategic Environmental and capacity building on SEA” (15- environmental expertize on request Assessment to the Espoo Convention (2014) and Review of 16 April 2014, Minsk). of the Espoo Convention legislation on environmental impact assessment of Georgia vis-à-vis  Development of Practical guidance Implementation Committee (IC) provisions of the Espoo Convention (2013) (see column 2 for on reforming legal and institutional developed references). structure with regard to application of  Azerbaijan: Review of national  Moldova: new legislation on SEA drafted and discussed with the SEA procedure in accordance with legislative and institutional national stakeholders (available in Russian and the national the UNECE Protocol on SEA is framework of SEA developed in language). initiated. June-August 2014, the round-table  Regional level: numerous recommendations describing necessary meeting to discuss the results of the legislative, process and institutional improvements developed for review organized (28 August 2014, each country and incorporated into the draft guidance on developing Baku); review in mid-October 2014; national legislative framework (the guidance document will be ready Assessment of the draft law on by October 2015). environmental assessment prepared on request of the IC.  Georgia: Development of the draft law on EIA and SEA initiated during the start-up workshop (25 - 26 82

August 2014, Tbilisi). The draft law will be based on the result of the 2014 SEA mapping exercise and the 2013 Review of legislation on environmental impact assessment of Georgia via-a-vis the provisions of the Espoo Convention .  Moldova: Draft Law on SEA prepared and discussed at the National round-table meeting (29 July 2014, Chisinau). Support on drafting bylaws for the implementation of the EIA law provided. PROGRESS IN 2015  The sub-regional conference  Armenia: Assistance to the drafting  Armenia: Plan for preparing amendments to the law developed. ‘Developing legislative framework for amendments to the law on  Azerbaijan: Text proposals to improve draft law on EIA and the SEA in line with the UNECE environmental impact assessment environmental expertize developed. Protocol on SEA’ organized in and expertize initiated (Planning  Belarus: New law on EIA, SEA and Environmental Expertize Georgia (2 November 2015). meeting, Yerevan, 24 March 2015). developed21.  The draft overview of legislative and  Azerbaijan: Assistance to legal  Georgia: Draft Environmental Assessment Code developed; by laws on administrative reforms for drafting provided. Second draft law on detailed SEA and EIA procedures prepared (postponed to 2016); 15 implementing SEA in the participating EIA and SEA legislative framework national journalist are aware about the EIA and SEA as tools for countries prepared and discussed prepared and discussed at the greening the economy; at least 10 articles in the local media are with the participants of the above workshop on Implementing the Espoo published (canceled) mentioned conference. Convention and its Protocol on SEA  Moldova: Bylaws to enforce EIA law prepared. Drafting the bylaw to  Draft ‘Practical guidance on in national legislation in Azerbaijan support implementation of the law on SEA (postponed to 2016). reforming legal and institutional (Baku, 2 March 2015), third draft law  Draft regional overview of legal/institutional reforms and guidance for structure with regard to application of (as of August 2015) assessed by the drafting SEA and EIA legislation prepared SEA procedure in accordance with Espoo Convention Implementation  Sub-regional conference on legislative reforms of environmental the UNECE Protocol on SEA’ is Committee (8 December 2015). assessment systems organized prepared and discussed with the  Belarus: Assistance to the drafting  Awareness about the legal requirements of the Espoo Convention, participants of the above mentioned SEA provisions to the law on EIA the Protocol on SEA and EU SEA and EIA Directives raised among at conference. provided (March 2015 – December least 25 experts in each other participating countries.  Preparation of ‘Good practice 2015) including organization of the recommendations on the application ‘Round-table to discuss amendments of the Convention to nuclear energy- to the law of the Republic of Belarus

21 As indicated above this draft law introduces national SEA system. However, the draft still has gaps vis-à-vis the Protocol and the Convention. If the draft is adopted as it is amendments are required to align it further with the international standards. 83

related activities’ initiated. on Strategic Environmental Expertiza’ (Minsk, 29 - 30 April 2015).  Georgia: The assistance to preparation of the law on EIA and SEA completed. The draft discussed with the national authorities and the public at National round-table (Tbilisi, 19 May 2015), Public hearing (Tbilisi, 20 May 2015), Final meeting to support development of a new law on EIA and SEA in Georgia (Tbilisi, 23 - 24 September 2015), a meeting for the high level officials (11 December 2015)  Moldova: The bylaw to support enforcement of the law on EIA prepared (October 2014 – May 2015).  Ukraine: Draft law on SEA promoted at the High-level round table on benefits of the strategic environmental assessment and the role of sectoral authorities in SEA process (11 June 2015)

PROGRESS JANUARY – APRIL 2016  second draft regional overview of  Armenia: Further assistance to draft  Armenia: Text proposals on SEA developed to amend the existing legislative and administrative reforms amendments to the existing environmental assessment legislation. for implementing SEA in the environmental assessment legislation,  Azerbaijan: Draft bylaw to support implementation of the new EIA participating countries finalised in including incorporation of the results and SEA law prepared. English and Russian (February, of the pilot project ongoing (February 22  Georgia: SEA and EIA guidance documents prepared 2016 ). – December 2016), including the  ‘Practical guidance on reforming legal Roundtable on integration of the SEA  Belarus: Amended text of the draft law prepared; draft bylaw on SEA and institutional structure with regard procedure into the national legal developed. to application of SEA procedure in framework of Armenia (11 March  Moldova: The necessary bylaw to support implementation of the accordance with the UNECE 2016, Yerevan). draft Law on SEA developed Protocol on SEA’ finalised in English

22 As the legislative reforms are still ongoing, there is a need to regularly update the regional overview until the end of the Project. Two updates are planned: 1) in October 2016, before the 6th meeting of the UNECE WG on EIA and SEA, and 2) in March 2017, before the Meeting of the Parties of the Espoo Convention and its Protocol on SEA. 84

and Russian (March 2016).  Azerbaijan: Further assistance to  Ukraine: awareness about the SEA benefits raised among the high  Preparation of Good practice align the draft law on environmental level officials and parliamentarians recommendations on the application assessment with the Convention, the  Regional: of the Convention to nuclear energy- Protocol and the EU Directives related activities (ongoing).23 ongoing (January – December 2016).  First draft of good practice recommendations on the application of the Convention to nuclear energy-related activities prepared  Belarus: Further assistance in preparing legal framework on SEA  Regional overview and the practical guidance finalized. ongoing (March – December 2016), including support to drafting secondary legislation on SEA, advisory mission in May 2016 and the training workshop in August 2016; high level round table event to raise awareness of the high level officials about SEA (October 2016) (tbc).  Georgia: Drafting bylaws to implement the draft law on EIA and SEA (canceled as the draft law includes all the necessary elements) Instead the SEA and EIA24 guidance documents are being developed January 2016 – December, 2016). PROGRESS MAY 2016 - APRIL 2017  Good practice recommendations on  Armenia: Further assistance to  Armenia: Text of the draft amendments to the existing Law on EIA the application of the Convention to drafting amendments to the existing and Ecological Expertise and the draft Governmental Decision on nuclear energy-related activities Law on EIA and Ecological Expertise, SEA on SEA developed. finalized and published as one of the and developing the Governmental  Belarus: The Law on State Ecological Expertise, SEA and EIA and documents to be discussed at (and Decision on SEA, including the second the secondary legislation (regulations on EIA, SEA and state agreed by) the Meeting of the Parties roundtable on developing the national ecological expertise) adopted. to the Espoo Convention (Minsk, legislative framework on SEA and EIA  Georgia: A new Environmental Assessment Code of Georgia June 2017). in Armenia (February 2017) successfully passed the first reading in the Parliament.  Azerbaijan: Intergovernmental

23 The final version of the Guidelines will be approved at the 2017 Sessions of the Meetings of the Parties to the Convention in Environmental Impact Assessment in a Transboundary Context and the Protocol on Strategic Environmental Assessment (date to be conformed). 24 The EIA Guidance document is being developed in collaboration with the EU funded Project ‘Support to the Approximation in various fields as part of the environmental provisions under the EU-Georgia Association Agreement’ (SA Project). The SA Project hires the international expert, the EaP GREEN hires national expert, the Ministry provides organisational support and premises for the working group meetings. 85

consultations on a draft Law on EIA  Moldova: The Law on SEA adopted by the Parliament. concluded (August 2016), expert  Ukraine: Revised drafts of the Law on EIA and the Law on SEA were review of the revised draft Law carried re-submitted to the parliament in March 2017. The revised Law on out (February 2017) to provide advice EIA was adopted by the parliament on 23 May 2017, the revised Law on further steps to fully align the draft on SEA passed the first reading on the same day. Law with the Convention, the Protocol

and the EU Directives ongoing.  Belarus: The Law on state ecological expertise, SEA and EIA was adopted in July 2016, secondary legislation (regulations on EIA, SEA and state ecological expertise) was developed with the technical assistance provided by the EaP GREEN (September – December 2016) and adopted in January 2017. Assistance in preparing legal framework on SEA included the training workshops and drafting sessions on developing legislative framework for the EIA and SEA (September 2016).  Georgia: A new Environmental Assessment Code of Georgia was adopted by the Government and submitted to the Parliament for approval in February 2017, and successfully passed the first reading in April 2017.  Moldova: The public consultation meeting on the draft Law on SEA was organized to present the draft Law and to address possible further proposals on its amendments. The Law on SEA was adopted by the parliament on 2 March 2017.  Ukraine: The legal opinion regarding the Law on SEA and the Law on EIA (adopted by the Parliament and subsequently vetoed by the President) was prepared and communicated to 86

the Government by the official letter of the secretary to the Espoo Convention and its Protocol on SEA in February 2017. 2.2: Capacity building on SEA/EIA procedures Lead partner: UNECE Progress made: ON TRACK Context: Objectives: Outcomes:  In absence of a legislative framework which requires mandatory application of SEA,  Contribute to the development of  Practical experience and the EaP countries lack capacities and practical experience in the application of the national SEA/EIA systems and national capacities for SEA in line with the Protocol on SEA and relevant EU legislation. Most of the plans practice. application SEA/EIA at the and programme subject to SEA are sub-national or local land-use plan or other local  Increase awareness and national and local level are plans which impact people’s everyday life. The capacity building activities will thus understanding of the benefits of available in the EAP countries. target both national and local authorities, whose involvement is vital for the SEA/EIA and facilitating development of successful SEA/EIA systems. National authorities will be enabled to acceptance among decision- provide advice and training on SEA to the local authorities. For better efficiency, makers, sectoral authorities and training courses will be combined with carefully selected pilot SEA or EIA projects. the public.  Elaborate and support implementation of recommendations for further improving the effectiveness of SEA and EIA systems. PROGRESS IN 2014 Regional-level activities National-level activities Results achieved  EaP GREEN coordination meeting at  Armenia, Ukraine: The selection of  Azerbaijan: MOU for the implementation of the pilot project is signed. the meetings of the Parties of the an SEA pilot project initiated.  Georgia: based on the request of the national counterparts the pilot Espoo Convention and the Protocol  Azerbaijan: MOU for project will either be postponed until the country developed its on SEA organized (2-5 June, implementation of a pilot project on national legislation or cancelled in favour of drafting of necessary by- Geneva). application of SEA to Alternative laws to support development of national EIA and SEA legislative  Subregional conference, presenting Energy Strategy in Azerbaijan signed framework. results on pilot project on post-project between UNECE and Regional  Moldova: draft training materials are produced based on the national analysis with Belarus and Ukraine Environmental Center for Caucasus conditions; SEA pilot project is initiated; 15 national experts are and capacity building on SEA (Office in Azerbaijan). trained in practical application of SEA organised (15-16 April 2014, Minsk).  Moldova: National training workshop  Belarus and Ukraine: a pilot project on PPA of environmental impact  Study tour in the Czech Republic on SEA (part 1) carried out (part 1: in transboundary context in Belarus and Ukraine is completed, ‘Application of Strategic 30-31 July 2014, Chisinau/ part 2: 16 including a report by the bilateral working group for the environmental Environmental Assessment at the December 2014); A pilot project on Monitoring of Khotislavskoye quarry and an expert assessment of the national level in the field of urban the application of the Draft Law on pilot project and recommendations for improving transboundary EIA planning, waste management, and SEA to the Orhei town Master Plan procedure and post-project analysis. energy sector’ organized (1-5 development process initiated (July  Regional-level: awareness about European best practices in December, 2014). 2014 – March 2015) application of SEA is raised for 32 participants from EaP GREEN  Belarus and Ukraine: a pilot countries. 87

project on the post-project analysis (PPA) of environmental impact in transboundary context in Belarus and Ukraine completed, including a meeting of the Task Force for project evaluation (17 December 2013), one virtual (for Ukraine, May 2014) and one public participation event (21 February, 2014), and a regional conference for disseminating results held (15 April 2014, Minsk). PROGRESS IN 2015  EaP GREEN coordination meeting at  Armenia: The Seminar on the  At least 50 participants completed the training courses on the Working Group Meeting of the application of strategic environmental application of SEA. Espoo Convention and the Protocol assessment in Armenia organized  Training methodology documented at the Draft Manual for trainers on SEA (May, Geneva 2015). (Yerevan 23 - 24 March 2015) for on SEA and used at the training of trainer workshop and EaP  The ‘Training of Trainers Workshop sectoral authorities. SEA pilot GREEN events on SEA. The results of the pilots were used as a on Design and Delivery of training launched in December 2015. basis for exercise at the regional Training of Trainers Workshop. events on SEA’ was prepared and  Azerbaijan: The pilot SEA  Armenia: SEA pilot for waste management sector initiated in organized in Georgia (3 – 6 implemented in February – December 2015. November 2015). December 2015, including several  Moldova: Pilot SEA for the Master Development Plan of Orhei  Draft Manual for trainers on SEA was training workshops and public Municipality (Moldova) completed. Results shared at the national prepared and presented at the meetings: Initial training workshop on trainings and public meeting. Second pilot for Green economy Training of Trainers workshop. 'Practical application of the SEA' strategy initiated. (Baku, 3 - 4 March 2015), the second  Azerbaijan: Pilot SEAs or the National Strategy on use of alternative training workshop on impact and renewable energy sources in the Republic of Azerbaijan in 2015 assessment and scoping – 2020 launched (to be completed in February 2016 consultations (Baku, 11 - 12 May  Georgia: Pilot SEA for the National Waste Management Strategy 2015), SEA expert group meeting on initiated and almost competed. SEA report (Baku, 27 - 29 August  Ukraine: 20 participants from the sectoral ministries are aware of the 2015), and the final public consultation workshop (Baku, 9 SEA draft law, SEA procedure and benefits; 20 representatives of December 2015). The pre-final the environmental authorities are aware of their role in SEA version of the SEA Report prepared procedure. in December 2015.  Regional level:  Georgia: The SEA pilot on the  30 national experts from EaP GREEN countries (i.e. up to 5 experts National Waste Management from each country) trained as SEA trainers at the ‘Training of Strategy and Action Plan conducted Trainers Workshop on Design and Delivery of training events on (July – December 2015), including SEA’ (3-6 November, 2015). initial webinar to introduce SEA methodology (5 August, 2015), 88

Training workshop on practical application of SEA (Tbilisi, 21 - 22 September 2015), public scoping consultations meeting (Tbilisi, 22 September 2015), final public consultation workshop (30 October 2015). Draft SEA report prepared.  Moldova: SEA pilot for Orhei Master Plan completed in June 2015. Experience and lessons learnt disseminated at the final event Strategic Environmental Assessment as a tool for greening economy and the role of sectoral authorities (17 June 2015). Second pilot for the national Green Economy Action Plan initiated (2 December 2015).  Ukraine: Two workshops organized to discuss roles of environmental and planning authorities in SEA process: Practical application of strategic environmental assessment (SEA): Role of the environmental authorities in the SEA process (12 June 2015), Kiev, and Benefits of the strategic environmental assessment and the role of sectoral authorities in SEA process (11 June 2015), Kiev

PROGRESS JANUARY - APRIL 2016 EaР GREEN regional coordination  Armenia: Continuing  Azerbaijan, Georgia: Pilot SEAs completed and the results meeting on the margins of the Working implementation of SEA pilot disseminated. Group Meeting under the Espoo including the SEA workshop Part I  Georgia: The Working Group on SEA guidelines established Convention and the Protocol on SEA (9-10 March 2016) and the process initiated. (April, Geneva 2016).  Azerbaijan: Conducting final formal procedural steps of the SEA pilot

(January – March 2016)

 Georgia: Finalization of the SEA pilot, including the final SEA report 89

completed (January 2016) and a training to the Ministry of Environment and Natural Resources Protection on SEA scoping (19 April 2016) Work on the SEA guidelines initiated by the first meeting of the Working Group.

 Moldova: Continuing to implement the second SEA pilot, including organizing one SEA training workshop (21-22 April 2016) and the public consultation meeting.

PROGRESS MAY 2016 - APRIL 2017  EaP GREEN regional coordination Armenia:  Armenia: The scoping report finalized; the draft SEA report meeting within the meeting of the  Continuation of the implementation of prepared and consulted with relevant stakeholders. Working Group on EIA and SEA the SEA pilot project including the (Geneva, 7 – 10 November 2016). training workshop on SEA Part II (24-  Azerbaijan: The outcomes and results of SEA pilot presented to 24 June 2016) and the final the international energy community. consultation workshop to present and  Initial concept of the SEA guidelines developed. discuss the findings and conclusions summarized in the draft SEA report (March 2017).  Georgia: The Guidelines on SEA finalized. Azerbaijan:  Presenting the outcomes and results  Moldova: The scoping report finalized, the draft SEA report of SEA pilot to the international prepared, recommendations formulated by SEA integrated in the energy community at the 7th draft National Green Economy Strategy. International Forum on Energy for  The draft SEA guidelines developed. Sustainable Development (Baku, 21

October 2016).  Initiation of preparation of the SEA  Ukraine: The draft SEA guidelines prepared. guidelines – the national working group established and an initial concept on ‘Recommendations on implementation of the national SEA procedure’ was developed. Georgia:  Two trainings on SEA organized for planning authorities and consultants

(November 2016, http://www.unece.org/index.php?id=4 4572#/, and April 2017 https://www.unece.org/environmental -policy/conventions/environmental- assessment/meetings-and- events/environmental-impact- assessment/workshops-espoo- convention/2017/training-workshop- on-practical-application-of-strategic- environmental-assessment- sea/doc.html#/April 2017  Support provided to the SEA and EIA trainings organized under the EU funded project ‘Support to the Approximation in various fields as part of the environmental provisions under the EU-Georgia Association Agreement’.  The Guidelines on Practical Application of SEA prepared by the Working Group, expert support provided to preparation of the EIA Guidelines. Moldova:  Continuing to implement the second SEA pilot including finalization of the scoping report and drafting SEA report. Preparation of the SEA guidelines initiated and the draft document developed (the process included the meeting of the working group, October 2016). Ukraine:  Two trainings on SEA organized in cooperation with the PLEDG project (October 2016 and March 2017). Preparation of the recommendations for practical application of SEA initiated, the draft versions prepared.

2.3: Strengthening the administrative capacities of the authorities in charge of Lead partner: UNECE Progress made: ON TRACK the environmental assessment Context: Objectives: Outcomes:  A clear definition of both the competent authorities in decision-making and the  To define and clarify  Enhanced capacities of the responsibilities for arranging public participation are needed for efficient EIA and responsibilities and roles of administrative authorities in SEA. In particular, in the case of SEA commitment and clear division of roles competent authorities for SEA change of the environmental among other relevant authorities (planning, health, etc.) is required to achieve its and EIA procedures, assessment for conducting targets of impacting strategic decision-making. For sectorial plans and  To improve inter-institutional SEA and EIA. programmes, joint capacity-development activities can help to strengthen cooperation and involve all the coordination between government departments. This activity will provide for relevant actors in the legislative involvement of various authorities and include clarification of responsibilities for reviews, technical assistance, SEA and EIA procedures. It will be implemented through the activities 2.1 and 2.2. training on and pilot implementation of SEA/EIA. PROGRESS IN 2014 Regional-level activities National-level activities Results achieved  Subregional conference, presenting  A review of roles and responsibilities of Numerous recommendations on institutional improvements prepared and results on pilot project on post-project various stakeholders in the SEA discussed at the round table events dedicated to the results of the analysis with Belarus and Ukraine and process conducted in conjunction with legislative and institutional reviews on SEA in Azerbaijan, Georgia and capacity building on SEA organized the activity 2.1: Revision of the existing the Republic of Moldova. Sections on roles and responsibilities of (15-16 April 2014, Minsk). national regulatory and legislative national authorities in SEA incorporated at the agenda of the national  Study tour in the Czech Republic framework (Georgia/ EIA, 9 training events on SEA in Armenia, Moldova, Ukraine and three local ‘Application of Strategic Environmental September – 15 October 2013; training events in Belarus supported institutional building. As a result of a Assessment at the national level in the Armenia/SEA, 16 June – October pilot project on PPA of environmental impact in transboundary context in field of urban planning, waste 2014; Azerbaijan/EIA, 05 June – 31 Belarus and Ukraine recommendation for roles of the national management, agriculture and energy September 2014) and mapping authorities in the PPA developed. sector’ organized (1-5 December, exercise in Georgia/SEA (1 July – 31 Regional-level: awareness about European best practices in application 2014). September 2014); of SEA is raised for 32 participants from EaP GREEN countries.  Relevant stakeholders were identified and took part in the national and regional training workshops initiated in connection with the activity 2.2: Capacity building on SEA/EIA procedures, following good practices including those in use in the EU (See the right side of the table).

PROGRESS IN 2015 See implemented activities under the See planned activities under the Activity Regional level: Relevant authorities were represented at the round- Activity 2.1 Revision of the existing 2.1 Revision of the existing national tables, training events and regional conferences. national regulatory and legislative regulatory and legislative framework and framework and 2.2. Capacity building. 2.2. Capacity building. Armenia, Azerbaijan, Belarus, Georgia, and Moldova: Preparation of the brochure on SEA  Numerous recommendations on institutional improvements prepared benefits continued in June 2015 – March and discussed at round table events dedicated to draft law on EIA 2016 (where relevant) and SEA.  Sections on roles and responsibilities of national authorities in SEA Preparation of a video on SEA procedure are incorporated at the agenda of the planned national and local and benefits continued in June – training events on SEA. December 2015. A video in English, Russian and Georgian prepared to explain the roles of various stakeholders in SEA procedure. The video will be used in further awareness raising events. PROGRESS JANUARY – APRIL 2016 See planned activities under the Activity See planned activities under the Activity  For all countries: Relevant authorities were represented at the 2.1 Revision of the existing national 2.1 Revision of the existing national round-tables, training events and regional conferences. regulatory and legislative framework and regulatory and legislative framework and 2.2. Capacity building. 2.2. Capacity building.  Brochure on SEA benefits and myth is prepared.

 Sections on roles and responsibilities of national authorities in EIA are incorporated to the national Guidelines on application of EIA. PROGRESS MAY 2016 - APRIL 2017 N/A The issue of roles and responsibilities of  Azerbaijan: Azerbaijani version of a video on SEA prepared and environmental and health authorities and disseminated. other main actors in SEA process were addressed in all national guiding  Georgia: Outcomes of the EaP GREEN activities on SEA and EIA in documents drafted so far (i.e. Georgia, Georgia presented to a wide range of stakeholders, and the future Moldova, Ukraine). needs and priorities discussed.  Georgian version of a video on SEA prepared and disseminated. Azerbaijan: Azerbaijani version of a video on SEA prepared and disseminated  Ukraine: A high-level round-table to support adoption of revised SEA through the UNECE website and the and EIA Laws organized. Ukrainian version of a video on SEA social media at the national level. prepared and disseminated.

Georgia: The second follow up training on the role of environmental and health authorities in SEA dedicated to the quality control (November 2017) and the final national EaP GREEN event on SEA 93

and EIA component were organized. Georgian version of a video on SEA prepared and disseminated through the UNECE website and the social media at the national level.

Ukraine: A high-level round-table on benefits of introducing modern SEA system in Ukraine was organized (February 2017). Ukrainian version of a video on SEA prepared and disseminated through the UNECE website and the social media at the national level.

Component 3 “Demonstration Projects”

Workstream 3.1: Demonstration Projects in support to Resource Efficient and Cleaner Production (RECP) in manufacturing

223. The RECP demonstration component aims to support improving the productive use of natural resources (materials, water and energy) and reducing the pollution intensity (air emissions, effluents and waste) of industries in particular from the food processing, chemical and construction materials’ sectors. The RECP demonstration component is aligned with the global UNIDO-UNEP RECP programme which currently supports over 55 developing and emerging economies, including EECCA countries, with building human and institutional capacity for adapting, adopting, mainstreaming and scaling up RECP methods, practices and technologies in enterprises in manufacturing and related sectors (see www.unido.org/cp and www.recpnet.org).

224. Prior to the start of the EaP GREEN, UNIDO already actively supported the demonstration and promotion of RECP methods, techniques and policies in Ukraine, through the Ukraine Resource Efficient and Cleaner Production Centre, since 2007, and in Moldova, through the National Cleaner Production Programme, since 2009. In 2013, UNIDO inventoried past experience with RECP and related approaches in each EaP country and assessed the service delivery capacity, as the start for identifying potential national implementing partners. A competitive call for proposals for cooperating institutions and experts was undertaken during the final quarter of 2013, and during January 2014, UNIDO confirmed as its national implementing partners:

 Regional Environment Centre – Caucasus – Yerevan Branch (RECC Armenia);

 Regional Environment Centre – Caucasus - Baku Branch (RECC Azerbaijan)25;

 Energy Efficiency Centre (EEC, Georgia);

 Ukraine Resource Efficient and Cleaner Production Centre (URECPC)

225. The following new partners were identified through open tender procedure held in the summer of 2015:

 The Chamber of Commerce of Moldova (Moldova); and

 School of Business and Management of Technology of Belarus State University

226. National coordinators were also appointed in 2014.

227. A list of activities carried out under Component 3 is presented in Table 18.

25 Service contract of REC-Caucasus Baku Branch was not extended in 2016 due to understaffing issues and subsequent performance issues of the organization. Open tender for a substitute organization was opened by UNIDO in February 2016, but none of applicants were deemed qualified. Further implementation of the Project in Azerbaijan was organized through national experts and directly from the UNIDO HQ.

Activity 3.1.1: RECP human and institutional capacity development

228. The activity is aimed at establishing (in Armenia, Azerbaijan, Belarus and Georgia) and strengthening (in case of Moldova and Ukraine) the national capacity for RECP service delivery, including for assessment, training, implementation support and monitoring, to SMEs and government, both at professional (RECP experts) as well as institutional levels (organization of the service delivery, knowledge management, promotion and advocacy).

Progress in 2014

229. In 2014 UNIDO launched the first series of trainings for national experts in all six countries. Following the UNIDO methodology, the training programme was comprised of three modules organized with two month break: basic, advanced and review trainings on RECP. In addition to in- class training, in the course of six month, experts to conducted RECP assessments at two selected enterprises from food, chemicals and construction materials sectors and submitted executive summaries of reports, as well as business cases demonstrating results of assessments to UNIDO. Experts who successfully completed the trainings and in-company assignments received UNIDO RECP Expert certificates at the national conferences held in each country from March-May 2015.

Progress in 2015

230. In the summer of 2015 the second round of RECP trainings was launched and in all six countries the first module on basic training was delivered in the course of June – September for about 70 experts. The practical part of the training for the trainee-experts was conducted in a new batch of about 50 companies. This second module on advanced training will be completed by the end of 2015, and the review module will be organized in spring of 2016.

Key achievements towards objectively verifiable indicators

231. Combined training and coaching programme rolled out for national experts in all EaP countries to equip them with the necessary knowledge and skills for conducting basic RECP assessments in SMEs. This contributes to an increasing a number of experts trained and coached in application of basic RECP methods and techniques (Table 15).

Table 15. Number of experts trained and coached in application of basic RECP methods and techniques

Country First Module Second Module Final Presentation First Module 2015 Date Trainees Date Trainees Date Trainees Exp Date Trainee ert s awar ds Armenia 14-16/4/ 26 7-9/9/2014 12 27/1/ 12 12 20-24/07 15 2014 2015 Azerbaijan 21-23/4/ 14 1-3/9/2014 11 20/2/ 11 8 10-14/08 19 2014 2015 Belarus 5-8/5/ 16 14-15/7/ 12 5/05/ 7 7 18-20/08 1726 2014 2014 2015 Georgia 14-16/4/ 13 11-12/8/ 10 26/2/ 10 10 29-30/06- 10 2014 2014 2015 1/07

26 In Belarus, additional training was conducted by the National Coordinator to fulfil the demand for training and increased number of companies willing to participate in the RECP assessments.

Moldova 8/11/2014 527 3-4/3/2015 5 1/05/ 5 5 7-11/09 15 2015 Ukraine 14-16/7 11 22-23/12/ 8 13/2/ 8 8 30/06-3/07 11 2014 2014 2015 Total 58 53 50 87

232. Awareness, outreach and communication activities were launched in each EaP GREEN country in 2014 in the format of national consultations conducted in the capital cities and selected regions, particularly targeting the manufacturing sector, businesses and government at large. This contributes to an increased awareness on RECP among SMEs that have started implementing RECP opportunities. National Steering committees were established in five out of six countries28 to guide and monitor RECP Demonstration component from the Governments’ level, through EaP GREEN Project national focal points, in consultation with high-level representatives of business, civil society and academic communities.

233. The EaP GREEN regional RECP demonstration programme serves as a pilot to operationalize the mainstreaming and scaling framework, through four complementary approaches29:

 LOCALIZE: giving local meaning to RECP reflecting national socio-economic, business, political and environmental priorities, so that RECP resonates with business, government and civil society, and ultimately businesses will aspire and be motivated to do RECP (rather than ‘being told to do RECP’);

 SCALE: developing and trialling a scale-able model for transformative roll out of RECP to groups of enterprises, adopting a coaching and guidance approach;

 REWARD: supporting change in government policy and strategy, across multiple sectors (including environment, SME, technology, fiscal, etc.) including implementation, monitoring and enforcement, to enable enterprises that adopt RECP to achieve greater rewards (or those reluctant to consider RECP incur greater penalties); and

 EMBED: ensuring that RECP expertise, experiences and insights are captured and sustained and readily accessible to enterprises, governments, professional and educational institutions and society at large, and indeed RECP becomes engrained in the aims and objectives of organizations and businesses and the hearts and minds of their employees.

234. The pilot phase of “localization” of RECP in all six countries was carried out through a series of Consultative Dialogues organized in each country from April-June 2015 during or after the

27 Refresher provided only as initial training had already been delivered in 2013. 28 Only a “friends of RECP Demonstration Component” group was possible to establish in Belarus due to the issue of the EaP GREEN Project registration in the country. 29 The joint global UNIDO-UNEP activities aim towards mainstreaming and scaling-up the application of RECP methods and techniques. In the RECP Demonstration component scaling up is seen as a way to significantly reduce the level of efforts required per company to implement RECP, whereas mainstreaming is understood as embedding drivers and incentives for RECP implementation. Conceptually, mainstreaming and up-scaling are complementary approaches to achieve the policy goal of transformative increases in the numbers of enterprises committing to RECP and in the scale of economic and environmental benefits they gain through implementation of RECP methods and techniques.

national conferences on RECP. Whereas national conferences served as a platform to inform stakeholders and a wider public about the results of the Project achieved so far, including presentations from demonstration companies and award of certificates of achievement in RECP to trainee experts; consultative dialogues were organized at a smaller scale to collect input from participating stakeholders on the ‘local’ context of RECP and contribute to the development of national language, and possibly symbols, for the international RECP concept, its approaches, drivers etc., taking into consideration national elements, such as business culture and organization, socio-political factors, industrialization level and environmental priorities.

235. The consultative dialogues resulted in the preparation of a ‘RECP Primer’, a localized version of RECP that will serve as a tool to put the concepts and practices of RECP on the agenda of national businesses and government. The Primer consists of a brief document that explains in plain language key elements/messages of RECP and illustrates their relevance for the country, as well as highlights relevant national experiences. Each national team was extended by a national expert on advocacy and outreach recruited by UNIDO to prepare the first edition of the national “RECP primer”. First drafts were completed in Armenia, Belarus, Georgia and Ukraine in September 2015, and are being finalized in Azerbaijan and Moldova. Exchange of experiences from primer drafting process was organized at the Project coordination meeting organized in Davos, Switzerland, on the occasion of the RECPnet 20th year anniversary in October 2015.

Progress January – April 2016

236. The trained experts were continuing assessment activities at enterprises and submitted their reports to the national teams. Further work is required according to the advocacy methodology to conduct, over a period of about 10 months, a series of open thematic dialogues among stakeholders (“RECP Forums”), focused on successive key themes of RECP. Upon completion of first dialogues cycle the insights gained and ‘stories’ uncovered will be further consolidated and communicated in a second edition of the RECP primer to be completed in summer 2016. A number of six forums were scheduled in each country to be conducted on a bi-monthly basis from October 2015 to June 2016 to bring together different stakeholders to discuss RECP topics, including energy, water, waste water and materials use in manufacturing. About 30 to 50 experts are invited to each forum. In each country at least three forums were conducted by the end of reporting period.

Progress in May 2016 – April 2017

237. Second round of combined training and coaching programme continued for national experts in all EaP countries to equip them with the necessary knowledge and skills for conducting basic RECP assessments in SMEs. Detailed overview is provided in the Table 16.

Table 16. Number of experts trained and coached in application of basic RECP methods and techniques: 2st round (2015-16)

Country First Module Second Module Final Presentation Date Trainees Date Trainees Date Trainees Expert awards Armenia 20-24/07/15 15 8-10/12/2015 12 13-14/05/ 12 12 2016

Azerbaijan 10-14/08/15 19 12-13/01/16 10 22- 8 030 23/08/2016 Belarus 18-20/08/15 17 9-10/12/2015 16 n/a 27 27 17-18/05/2016 1131 28-30/09/2016

11 Georgia 29-30/06- 10 11-14/12/2015 10 25-26/04/ 8 8 1/07/15 2016

Moldova 7-11/09/15 15 12/11/2015 12 22/06/2016 12 12

Ukraine 30/06-3/07/15 11 16-17/11/2015 11 18/04/2016 10 10

Total 87 70 69

238. Apart from RECP methodology training and coaching program, acquisition of monitoring equipment in Armenia, Belarus and Georgia took place as a result of tender procedure conducted in the fall of 2016. This resulted in delivery of specialized monitoring equipment to three countries of the region (in Belarus – two sets were requested due to high demand from medium and larger companies in having critical resources assessments done more carefully with gas analyser). Upon delivery of equipment in January-February 2017, hands-on trainings on the use of monitoring equipment were conducted in Georgia (March 2017) and Armenia (April 2017) in combination with an additional training on RECP technologies available in dairy, chemicals and construction materials sectors. Regional technology pocket guides on dairy production and construction materials subsectors developed by international experts in 2016 were used at those trainings as a background material available for reference in national languages on-line (publishing is planned to be completed by the end of June 2017).The RECP Training Programme in each country was finalized by May 2016, with 69 trainees being awarded RECP Experts certificates of UNIDO. The number of companies assessed during the training decreased to 55 companies due to difficult economic situation in the region and vulnerability of SMEs which are the focus of this component. A set of business cases was published in each country resulting from the RECP assessments conducted by the trainee experts.

239. In Ukraine training options were further developed upon demand from the national team, including training for RECP Clubs Facilitator and a Specialized RECP Learning course for higher education students. The latter was also developed in Armenia by the member of national team in their capacity as visiting university lectures in four of Kiev and Yerevan universities. RECP course was successfully introduced to students in April 2017 and it is planned to be included into the degree programs of specialized universities.

240. The first half of RECP forums was finalized in spring 2016 and the second version of the RECP primers was prepared based on the results allowing further localization of language used to become a useful resource for SMEs on RECP in their countries. There was a delay with schedule of events in Azerbaijan due to national team changes although all the meetings were finalized by the end of November 2016.

241. In all six countries series of 6 RECP forums launched in 2015 were finalized during the reporting period to allow better understanding among stakeholders on what RECP is and how it could

30 Due to difficult economic situation, SMEs drop outs and team changes in Azerbaijan, experts were not able to complete RECP assessments and, thus, to receive awards from UNIDO confirming completion of full training. 31 In Belarus, additional (third) training was conducted by the National Coordinator to fulfil the demand for training and increase the number of companies and experts willing to participate in the RECP assessments.

be further implemented and mainstreamed in the country – both at the policy level with ministries and other governmental bodies, as well as at the company and individual citizens’ level. In order to cover the latter group, business associations, NGOs and civil society organizations were invited to the forums dedicated to specific topics of resource efficiency. Specialized agencies and think tanks were used to go deeper in discussion on each issue further reflected in the second edition of RECP Primer published and launched at the final National RECP Conferences held in Kiev, Ukraine (14 December 2016); Chisinau, Moldova (2 February 2017); Tbilisi, Georgia (27 April 2017); Yerevan, Armenia (18 May 2017) and Baku, Azerbaijan (25 May 2017). 196. In the course of preparing national conferences, a number of 10 analytical articles were published in national specialized media informing public about RECP implementation and results of EaP GREEN RECP Demonstration project in general, also announcing the final conferences. Full list of articles is available upon request and fully referenced at RECP national web pages. Key publications for each country were also finalized, copy- edited and printed prior to the final conferences. In Moldova, Belarus, Armenia and Azerbaijan the most comprehensive publication, RECP national Primer, received approval from the EU Delegations in the format of a foreword addressing readers on behalf of the EUD Ambassadors in those countries. Regardless the fact that forewords were cleared by the EaP GREEN Project Manager, response of EU Delegations confirming that foreword could be added to the primer is still pending in Ukraine and Georgia, thus, RECP primers in those countries were printed with “pre-print” mark allowing further printing upon approval of the foreword.

242. Other key publications in each country prepared for the conference in national languages included: RECP Business cases; Regional Technology Pocket guides (dairy and construction materials production); RECP Clubs Facilitator Manuals; RECP Clubs Workbooks;

243. In total National Conferences brought together more than 500 participants from governmental sector, businesses, NGOs, private sector associations, academia and civil society. Press releases before and after conference comprised of the key facts about the project and discussion, were published both in national media and through EU, EaP GREEN and UNIDO channels.32 All conferences were announced at capacity4development.org page well in advance (Box 1).

Box 1. National Conferences on RECP

Azerbaijan: The Conference gathered over 120 representatives of central and local governments, enterprises, professional organizations, experts, representatives of academic sector and general public. The EU Delegation and some international organizations also took part in the Conference. Some of the 38 SMEs which took part in RECP demonstration in construction materials, chemicals and food production sectors in Azerbaijan presented results of their participation in the project. Also representatives of RECP clubs from the Yevlakh, Sumgait, Khachmaz and Gandja regions as well as national experts trained in the duration of the project presented their experience in RECP measures application with view to continue implementing best practices of resource efficiency further on. EU Delegation representative confirmed success of the RECP demonstration in Azerbaijan and emphasized that EU will further support green economy initiatives of the Government of Azerbaijan. Video film about the RECP implementation in Azerbaijan was prepared and displayed at the conference.

Armenia: About 60 participants of the conference reviewed the Demonstration Project which has actively worked with 55 SMEs in the regions promoting the use of RECP. The project has resulted in feasible and low-cost RECP measures which helped to achieve annual reduction of energy consumption by 696 MWh, water consumption by 490 m3, and materials consumption by 210 tonnes (waste reduction). The environmental results

32 See ttp://www.unido.org/news/press/unido-and-armenian-p.html for Armenia; http://www.unido.org/news/press/unido-supports-azerb.html for Azerbaijan; https://www.unido.org/news/press/georgias-small-an-1.html for Georgia;

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of these measures are also impressive and include reduction of air emissions by 200 tons of CO2 eq. per year. Representatives of government, Ministry of Nature Protection, Ministry of Economic Development & Investment, Ministry of Territorial Development, as well as other partner agencies have underscored the intention to continue replication of RECP. Deputy Minister of Nature Protection, Mr. Khachik Hakobyan, confirmed that the Demonstration project created a foundation for RECP as a green economy, best practice in the country. To sustain those results the Government has included establishing the Green Economy Center into the Action Plan 2017-2022 to ensure support in providing RECP services to Armenian companies. Mr. Georgy Tsouris, Deputy Head of Cooperation Section of the European Union Delegation to Armenia, stated that, supported by the Government, resource efficiency is a key notion contributing to a long-term sustainable development strategy and green growth. He confirmed that RECP Demonstration component also showed important results through success in engaging interest of business communities in green economy. The participants also acknowledged that RECP Clubs in Ararat, Dilijan, Vanadzor and Hrazdan cities, actively supported by the Mayor’s Offices, can share their lessons learned with other cities and communities which have chosen a green economic path.

Belarus: More than 100 participants of the conference were informed that the RECP Demonstration component involved 23 enterprises from food, chemicals and construction materials industries. In the course of assessments of production activities at the enterprises conducted by a group of experts trained on RECP application, a number of measures to improve resource efficiency were identified and partially implemented. The resulting savings for each enterprise is estimated in the range of EUR 2000 to 20 000 per annum. Open seminars and forums on RECP attracted more than 300 participants from enterprises and expert community. RECP Clubs established in four cities: Minsk, Maladziečna, Viliejka, Sluck brought together more than 60 enterprises to be able to apply RECP methodology and to discuss solutions on production improvement in general. The conference brought together participants from the Ministry of Natural Resources and Environmental Protection and the Ministry of Economy, EU Delegation as well as representatives from Municipalities which hosted RECP forums in 2016 - Regional Committees of Natural Resources of Brest, Homieĺ, Hrodna, Minsk, Mahiliŭ and Viciebsk. Expert community, enterprises-participants of the Project as well as other interested parties also contributed to the RECP Conference

Georgia: About 80 participants reviewed feasible and low-cost RECP measures identified in 50 small and medium sized enterprises showed savings of over 1 million EUR per year. The RECP demonstration activities also showed important environmental effects which included the annual reductions of: energy consumption by 25 000 MWh, water consumption by 136 000 m3, materials consumption by 2 000 tonnes, air emissions by 1 000 tonnes of CO2eq, reduction of waste waters by 5 680 m3, and solid waste by 7 tonnes. The Minister of Environment Protection and Natural Resources, Mr. Gigla Agulashvili, said: “The EU funded EaP GREEN project showed concrete results in enhancing the competitiveness of Georgian enterprises, and its contribution to improve cooperation between the government and private sector in identifying joint solutions to reduce the negative impact of production on the environment”. The Deputy Minister of Economy and Sustainable Development, Ms. Irma Kavtaradze confirmed that capacity built through the project significantly contributed to awareness about the importance of implementing green economy principles in Georgia, which are high in the government’s agenda. This was echoed by Mr. Elgudja Meladze, President of the Georgian Employers Association who stated that thanks to the project, the RECP methodology is welcomed by businesses as it translates the implementation of state policy on environment protection into clear economic and marketing benefits for enterprises, allowing them to be more efficient and technologically advanced in the application of EU standards. Representatives of central and local governments, RECP Clubs member companies and other enterprises, business associations, non-governmental sector and experts who were among the participants, Error! Hyperlink reference not valid.agreed that the results achieved so far are the very first steps and more efforts are needed to build on successful initiatives, such as RECP replication through the establishment of RECP Center, which will continue providing services to Georgian companies. The participants also acknowledged that RECP Clubs in Rustavi and Kaspi, actively supported by the Mayor’s Offices, can now share their lessons learnt and thus the interest in RECP Clubs as an approach to bring resource saving practices to a larger number of enterprises is growing. To meet this demand, a tested and adopted to local needs RECP resource package was offered to the Conference participants for consultation, use and further dissemination.

Moldova: More than 100 participants that gathered at the EaP GREEN National Conference on Resource Efficient and Cleaner Production (RECP) in the Republic of Moldova on 2 February, 2017 in Chisinau agreed that the progress in promoting the RECP in the Moldovan enterprises has been impressive. The first set of feasible and low cost RECP measures, supported by UNIDO as part of the EaP GREEN project funded by the European Union, helped the enterprises from food processing, chemicals and construction materials sectors to save EUR 1.45 million per year. The RECP demonstration activities showed also important environmental effects which included the annual reductions of energy consumption by 22000 MWh, water consumption by 1 000 000 m3, materials consumption by 7 000 tonnes, air emissions by 9000 tonnes of CO2eq, reduction of waste waters by

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900 000 m3, and solid waste by 7000 tonnes. Mr. Alexandre Darras from the EU Delegation to the Republic of Moldova underlined the importance of RECP as a tool for increasing competitiveness and environmental performance of Moldavian enterprises simultaneously. Mr. Jacek Cukrowski, Chief of Regional Division for Europe and Central Asia of UNIDO highlighted that that RECP uptake in the Republic of Moldova demonstrates a good example of successful inclusive and sustainable industrial development. The Conference participants concluded that the results achieved so far are the very first steps to bringing much bigger benefits , while also noting that further efforts are needed to build on successful initiatives, such as the RECP replication through the regional RECP Clubs in Orhei, and Balti; areas where the Mayor’s Offices have actively promoted and supported the RECP activities. . As such, Orhei and Balti can now share the lessons learnt and possibilities to further spread this practice to other regions of Moldova. The representatives of the Ministries of Environment and of Economy highlighted the Government commitment to the green economic policies and offered further support to the RECP in the national agenda.

Ukraine: The conference discussed RECP assessments undertaken in 13 companies in different regions of the country which identified opportunities to achieve annual reduction of energy consumption by 25 000 MWh, water consumption by 100 000 m3, and materials consumption by 15 000 tonnes. The environmental results of these measures are also impressive and include reduction of air emissions by 13 000 tonnes of CO2eq per year. This helps the companies to save more than 1 million EUR per year after implementing only a first set of feasible and low cost RECP measures. The average payback period of investments needed to achieve these results is less than 2 years. Furthermore, RECP Clubs, that engaged 35 small and medium size companies are active in the Chernihiv and Kharkiv region contributing to mutual understanding and cooperation between businesses, municipal, and central governments. Among more than hundred participants were the representatives of Ministry of Economic Development and Trade of Ukraine, Ministry of Ecology and Natural Resources of Ukraine, Swiss Cooperation Office, United Nations Industrial Development Organization (UNIDO), Resource Efficient and Cleaner Production Centre in Ukraine, regional state administrations and Kyiv district administrations, business associations, NGOs, international environmental projects and programs, and also the representatives of more than 30 enterprises from different regions of Ukraine.

244. At each conference a special session was dedicated to awarding UNIDO certificates to experts and demonstration companies, including members of RECP clubs, for their participation in RECP project of the EaP GREEN programme.

Institutionalisation

245. To maintain the sustainability of the Project results, service units were selected in each country on the basis of open tenders (except for Ukraine where function of a service unit was hosted by the RECP Center already established with support of several UNIDO technical assistance projects running since 2007). The units are expected to take over human and intellectual capacities, including monitoring equipment, and knowledge accumulated during the four years of project implementation to widen their own portfolio of services.

246. As a result of the Demonstration Project support, RECP demonstration components in Armenia and Georgia have registered the RECPnet33 network of UNIDO/UN Environment already in 2015, National Cleaner Production Programme of Moldova established partner relations with Chamber of Commerce and Industry as a host organization and in Belarus an RECP Center was established in September 2016 under auspices of the current project service unit – (Institute) School of Business and Management of Technology (SBMT) of Belarus State University. SBMT RECP Center has already applied for membership to RECPnet in March 2017. All national coordinators and key experts were invited to annual meetings of RECPnet and/or its European Chapter to benefit from the network experience and create own network of RECP experts around the world.

33 See www.recpnet.org for reference.

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Web links

247. All activities and events of the project in each country are closely monitored and reported at the national RECP web pages34 regularly updated by dedicated team members from support units contracted by UNIDO in each country.

 RECP Business cases in Armenia  RECP Primer in Belarus (1st edition in English) and 2nd Edition (in Russian)  RECP Primer in Georgia (2nd edition in Georgian)  EaP GREEN RECP Booklet in Moldova  RECP Business cases in Ukraine 2014  RECP Business cases in Ukraine 2015-16  RECP Primer for Ukraine (2nd edition)

254. UN Environment carried out two Safer Production Training Workshops in Minsk (July 2016) in collaboration with UNIDO, and in Tbilisi (April 2017) in collaboration with the Ministry of Environment and Natural Resources Protection. The Safer Production workshops convened around 100 small and medium sized companies handling, using or storing chemical substances, as well as chemical experts from academia and the government to improve and achieve sound chemicals management in the two countries. Participants were informed of existing approaches and tools developed by UN Environment, which aim to support companies in improving the identification of chemical hazards and the reduction and mitigation of risks and environmental, social and economic impacts. Participants were equipped with appropriate tools to make their production processes safer and more responsible, and contribute to their enhanced competitiveness through more sustainable performance. Real life examples and case studies enriched the interactive and dynamic discussions.

Challenges in the remaining period

248. Whereas completing and reporting on clubs and forums activities was part of the work schedule by the end of 2016, communication and dissemination of projects results obtained since 2014 was set as a priority for the extension of the EaP GREEN and its RECP Demonstration component till December 2017. It is especially important to keep attention to RECP issues in all countries and emphasize need to sustain the achieved results beyond the project duration in those countries, where RECP Demonstration component was a pioneering exercise. Even in more experienced countries like Moldova and Ukraine RECP still requires further communication and awareness activities, supported by demonstration of what could be done and how to go beyond recommendations to actual implementation of not only low cost RECP solutions, but introduce it as the best practice of doing business at the enterprises on the continuous basis. In this respect work on RECP financing was introduced as a side activity of the project, including development of online financing survey conducted in all countries in March-April to identify key priorities and challenges companies are struggling with when introducing RECP measures. National results of this survey were reported at the regional round table on RECP financing in Tbilisi on 26 April and they will be contributing to RECP Financing report to be finalized to be presented at the OECD Green Financing Conference on 30 June.

249. At the regional coordination meeting held on 25 April 2017, issues of results dissemination and further awareness were discussed with national coordinators from each country. In this respect,

34 For information, please, visit: Armenia www.recp.am; Azerbaijan www.recp.az; Belarus www.recp.by; Georgia www.recp.ge; Moldova www.ncpp.md; Ukraine http://recpc.kpi.ua/en/projects-en/eap-green

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RECP films developed in each country together with Primers, promotional leaflets and Business cases were mentioned among the key promotion instruments for RECP. Still, it was mentioned that companies require more attention and support to actually implement RECP solutions and to be aware of possible further improvements especially in the regions. Strong need in continuation of RECP projects in all countries was spelled out with a number of additional elements identified as priority in several countries, including: RECP labelling; Clubs expansion; database of technologies; pilot grants for RECP implementation; chemicals management; waste management and waste-to-resource approach of the circular economy; RECP financing; expertise from the EU countries and study tours to successful enterprises; institutionalisation and others.

Activity 3.1.2: RECP Implementation, Dissemination and Replication

250. The activity covers the practical support to enterprises, in particular SMEs, from the prioritized food processing, chemicals and construction materials sectors, to enable them to adopt RECP methods and techniques and thereby improve their business, reduce environmental impact and contribute to a green economy.35

Progress in 2014

251. In 2014 about 80 SMEs from food, chemicals and construction materials sectors were identified as potentially interested in participating in RECP assessments conducted as a part of RECP training component of UNIDO. Only about 55 of those have signed agreements to participate in the Project. Challenging national conditions prevented all companies from finalizing the six months training programme; as a result only 45 companies were assessed.

Progress in 2015

252. Throughout 2015 forty-five SMEs implemented quick RECP solutions/options identified through the RECP assessments. Most companies in Armenia, Azerbaijan, Belarus and Georgia represented the food processing sector; focus of assessments in Moldova and Ukraine was only on the chemicals and construction materials sectors. Country specific business case publications were prepared and disseminated at the national conferences conducted in spring 2015 in Armenia, Azerbaijan, Belarus and Georgia and in September 2015 in Moldova. Further work was done on the identification and engagement of about 70 new companies to be assessed in the course of the 2015-16 training programme. By the reporting date agreements with companies were confirmed and assessments well advanced to ensure smooth implementation of training and assessment activities.

253. At the regional coordination and planning meeting for the RECP regional programme on 27- 28 March 2015 in Tbilisi it was agreed to pilot in all countries a four pronged framework for scaling up and mainstreaming RECP, where Scale stream is dedicated to developing and piloting scale-able model for RECP uptake in small businesses.

35 A three pronged approach is followed. Firstly, to demonstrate with the support of detailed RECP assessments conducted by national and international expert team the potential and benefits of RECP (foreseen for some 90 SMEs within the EaP region). Secondly, to widely disseminate the results and experiences from RECP application, including through publication of business cases (or success stories), conferences and alike. Thirdly to replicate and scale-up the application of RECP at the local level through “clubs” of SMEs working together to implement RECP in their own operations (targeting up to some 200 SMEs within the EaP Region). In doing so, international best practice assessment methods and RECP techniques are being transferred into each of the EaP countries.

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254. The Scale approach is piloted through “RECP Clubs” for small businesses in all six countries. The principal idea of a RECP Club is to bring together up to a dozen small businesses from the same region and take them jointly through an intensive training and coaching programme over a period of about 4 months, leading to a customized RECP action plan for each participating companies. The RECP Club workstream under EaP GREEN is aimed at developing and piloting a lean support model for enterprises, in particular smaller businesses. The model should be scale-able and replicable, in that after initial trials in two regions it can be made available on a continuous basis to more regions and ultimately throughout the country.

255. The RECP Clubs approach developed would require fewer resources from the Project side and significantly scale up the dissemination and replication activities. This methodology was developed and initially introduced in four regions of Moldova in the course of 2014-1536. Success of RECP clubs initiative was translated into RECP clubs concept and resource package was developed by an international expert. The fourth coordination meeting held in Kiev in July 2015 was specifically dedicated to launching the RECP clubs introduction in all other countries. National teams were extended by an RECP clubs facilitator selected from the pool of trained experts. The successful experience of Moldova was used as guidance for coaching facilitators. Based on analyses provided by the national teams two regions per country were selected to host RECP clubs of 10-12 enterprises from selected sectors. The first clubs were scheduled in each of five countries already in September immediately increasing the number of companies exposed to RECP concept application to a hundred new companies in the following regions: Ararat and Dilijan (Armenia); Khachmaz and Yevlakh (Azerbaijan); Molodechno and Minsk (Belarus); Rustavi and Telavi (Georgia); Kharkov and Chernigov (Ukraine). RECP clubs in Moldova (Balti and Orhei) were already implemented since January 2015.

Progress January - April 2016

256. All club members from the first round of RECP clubs in each country were awarded certificate of participation upon submission of RECP plans resulted from their contribution to the six thematic workshops organized from October 2015 till March 2016. New cycle of RECP clubs was launched in March in following municipalities: Vanadzor and Hrzdan (Armenia); Sumgait and Gyanja (Azerbaijan); Molodechno and Slutsk (Belarus); Kaspi and Kutaisi (Georgia); Balti and Orhei (Moldova) and Kharkov and Chernigov (Ukraine).

Progress in May 2016 – April 2017

257. Second round of RECP clubs was launched and completed in each country culminating with award of certificates of participation upon submission of RECP plans resulted from their contribution to the six thematic workshops. Award ceremony for club members in Azerbaijan was organized on the occasion of the final conference on 25 May 2017.

258. Table 17 presents numbers of completed detailed RECP assessments in all EaP countries by national experts in cooperation with enterprise representatives and under guidance of international experts. These are accompanied by numbers of enterprises participating in the RECP clubs in the regions. Members of RECP clubs are developing their own assessments together with the national

36 According to UNIDO methodology, each RECP Club hosts 10-12 SMEs from selected sectors coming together for a 3-4 hours meeting every 2-4 weeks to participate in a structured dialogue prepared by the RECP facilitator on one of the following subjects: Workshop 1: Business environmental profile; Workshop 2: Energy; Workshop 3: Water & Waste Water; Workshop 4: Materials & Waste; Workshop 5: Chemicals, Hazards and Emissions; Workshop 6: Action Planning.

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RECP clubs facilitator and in consultation with clubs’ members at each session. After completing the round of six clubs workshops in each region, RECP clubs facilitator reports about so called rapid RECP assessments at the enterprises conducted jointly with the staff.

259. RECP Clubs Workbook comprised of materials developed for the RECP Clubs resource package were finalized in national languages in March-April in all six countries to help members of the clubs to have easy reference to all materials of the clubs methodology. RECP Clubs Facilitator Manual was prepared in national languages in five out of six countries to allow guidance of RECP experts on how to organize RECP clubs in the regions. Both Workbook and Manual are based on RECP Clubs work package developed by an international expert in 2015 and adapted to the conditions of each country by national experts in line with the experience they have received during implementation of RECP Clubs. Updated versions of those publications were printed for the respective national conferences in 2016-17.

260. Due to high interest to RECP Clubs activities and demand from the enterprises, two clubs in Ukraine (in Kharkiv and Chernihiv) were extended by two additional modules focused on how to obtain financing for RECP. Both conventional and non-conventional financing sources were discussed at those meetings among companies and representatives of banks and other financing organizations, including representatives of crowdfunding movement in Ukraine.

261. In Armenia RECP rapid assessments conducted in clubs’ members by national experts resulted in a compendium of data from clubs, stimulating enterprises to implement identified RECP solutions and report those to the project. RECP Clubs business cases publication will be finalized by the end of June 2017.

Table 17. Completion of detailed RECP assessments in all EaP countries

Country Number of Demonstration Enterprises in Number of Demonstration TOTAL 2014- 2014-15 Enterprises in 2015-16 2016* (RECP assessments by trainee experts) (expected) Food Chemical Construction Total RECP Clubs Processing and Materials’ assessments participants Sector Allied Sector by trainee 2015 2016 Sector experts Armenia 7 2 2 11 12 26 21 70 Azerbaijan 5 1 2 8 10 20 16 54 Belarus 4 2 0 6 15 20 40 81 Georgia 4 3 3 10 10 16 16 52 Moldova 0 5 0 5 6 20 20 51 Ukraine 0 0 5 5 8 18 19 50 EaP Total 20 13 12 45 67 120 134 358

Web links

 RECP Clubs in Armenia  RECP Clubs in Belarus in 2016 and Clubs Brochure  Resource package and video introduction for RECP Clubs in Ukraine  News about RECP Clubs meetings in Moldova’s Balti and Orhei Municipalities in 2016

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Challenges for the remaining period

262. RECP Clubs initiative was welcomed and highly appreciated by the national and local governments, municipalities and companies. Still, work with companies required to finalize RECP self-assessments and, in general, to further support club meetings, involving new enterprises from the identified and other regions. In Ukraine a specialized training program for RECP Clubs facilitators was developed and launched in May 2017 to extend number of experts capable of introducing RECP Clubs as well as municipalities willing to host such initiatives in their regions.

263. The RECP assessments of about 60 companies were finalized in the course of the second training program. The second initiative of RECP clubs implementation in five countries was finalized by July 2016 for about 130 companies. Due to national team deficiencies and delays, in Azerbaijan clubs modules were finalized by November with final modules for Gandja and Sumghait members finalized on 24 May 2017 before the national conference.

Activity 3.1.3: RECP Technology Support

264. The activity aims at fostering implementation of advance technology and higher investment RECP opportunities in SMEs in the region in particular in the prioritised food processing, construction materials and chemical sectors. The activity follows on from the demonstration activities (under 3.1.2) and was therefore only being started up towards the end of the reporting period in parallel with the completion of RECP assessments in the first batch of demonstration enterprises.

Progress in 2015 and January – April 2016

265. On 25-26 March 2015 in Tbilisi, Georgia regional technology trainings were organized for key representatives of national teams of all six countries. International experts delivered specific trainings on technologies available in food, chemicals and construction materials sectors to a number of 25 experts. That was the first introduction of national experts on concrete technological RECP solutions. National experts have organized national briefings to experts in their respective countries as a follow up activity.

Progress in May 2016 – April 2017

266. Twenty five experts from all six countries were trained on RECP technologies in food, chemicals and construction materials sectors. Further briefing on knowledge and technical data obtained was made in each country. Analysis of the priority subsectors represented by enterprises participating in the Project as demonstration companies will contribute to identification of the need of further national level trainings to be conducted through available low-cost internet based technologies.

267. A number of three to five enterprises per country were identified from the first batch of companies assessed in 2014-15 and advanced assessments at these companies were conducted by certified national experts trained in the first round of the training programme. Results of these assessments, including proposals for investment into advanced technological solutions were finalized in 2016. In Georgia, additional 5 advanced assessments were initiated at the end of 2016 to be finalized in May to have more feasibility studies prepared with support of national financing expert to allow guidance of the most advanced companies in application to the banks to obtain loans for implementation of identified RECP solutions. Two out of 7 companies agreed to undergo this process and now finalizing their negotiations with banks.

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268. After a round of consultations with national teams of experts and a selection process, in March 2016 UNIDO initiated international contracts for development of three regional RECP technologies pocket guide on selected subsectors, including dairy production, road construction materials (asphalt) and dissolvent use at the enterprises. Contribution was also made from the data gathered in Ukraine in the concrete products industry to the OECD policy pocket guide launched at the Greening SMEs conference in Chisinau, Moldova on 23-24 March 2016.

269. In the reporting period three international experts were identified and contracted to develop regional Technology Pocket Guides using best available technologies (BATs) and regulations in specific subsectors and illustrating those reports by examples from RECP assessments in EaP countries. The selected subsectors include dairy production, asphalt and tiles production and responsible use of chemicals at the enterprises. Draft of Dairy Pocket Guide was presented at the OECD meeting for SMEs Greening in Chisinau in March 2017. Two out of three pocket guides were finalized by the end of 2016 and submitted to national teams for review, adaptation and translation into national languages. Due to time constrains and need to adjust vocabulary and technical terms, both documents were translated first into Russian to allow exchange of views among non-English speaking experts in Belarus and Ukraine and further adapted versions were translated into Ukrainian, Georgian, Azerbaijani and Armenian for dissemination in the countries.

Weblinks

 Regional RECP Pocket Guide for Construction Materials Sector (in Ukrainian)  Regional RECP Pocket Guide for Dairy Production (in Ukrainian)  Resource efficient household methods in concrete manufacturing in Ukraine

270. Trainings on RECP Technologies in those subsectors were organized in March and April in Tbilisi and Yerevan respectively in conjunction with RECP monitoring equipment trainings. They were attended by participants from universities, company’s representatives and other stakeholders to allow higher awareness about available technologies. Further training in on-line format are planned to be conducted in June-July supported by modern communication technology allowing simultaneous training in different countries. Technical details and dates are now under discussion coordinated by UNIDO.

271. In 2015 a set of monitoring equipment was identified for purchase in Armenia, Azerbaijan, Belarus and Georgia to equip national team with professional tools to conduct advanced RECP assessments. Reference for the list of equipment was made to the equipment already purchased in Moldova and Ukraine. Equipment set of six items was purchased in Belarus in December 2015 through local suppliers available and delivered to the team by the end of reporting period.

272. Sets of monitoring equipment received in spring 2017 by Belarus (2nd batch), Armenia and Georgia allow more careful assessments at the enterprises and professional visualisation of heat losses, light needs, gas and water volumes used at different production lines. Use of equipment allows to revisit companies to conduct better assessments and illustrate those in the assessment reports.

Challenges in the remaining period

273. Following the completion of RECP assessments in each country, selection of experts and most promising enterprises was made to extend the assessments. The first round of RECP solutions implemented in the course of 2014 - beginning of 2015 already demonstrated savings, which were reflected in the business cases reported by the trainees. The extended assessments at 3-4 companies per country were focusing on identification of more advanced technological solutions, options for their

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technical implementation, as well as analysis of investment necessary for such solutions in the national context. In total 17 companies were assisted in identification and implementation of more advanced RECP solutions, relevant business plans were developed to help companies to get resources to support implementation of these solutions. Practical data obtained during all the types of RECP assessments will be used to provide region-specific examples the pocket guides on RECP solutions and technologies available in the priority subsectors.

Work stream 3.2: Demonstration Projects in support to sustainable public procurement:

274. Demonstration projects in the field of SPP are expected to be implemented after 2015 as defined in the Description of Action. However, upon the request from the EC, UNEP initiated national/local level pilot demonstration and awareness raising activities in 2-3 countries in cooperation with national counterparts starting from mid-2015.

Progress in 2015

275. In 2015, Moldova and Ukraine continued advancing towards the objectives set in the second, Demonstration, component of the Project, and namely, to effectively implement sustainable public procurement policy, to raise awareness of public authorities, producers and consumers about the potential of eco-labels, including through the dissemination of best practices for practical implementation of eco-label related EU directives to the industry and general public and to build the capacity of policy-makers and suppliers in applying eco-labelling.

276. New funding agreements (Small Scale Funding Agreements, SSFAs) covering the activities related to the Demonstration component of the Project between UNEP and the designated Agency for Public Procurement under the Ministry of Finance in Moldova, and the Ministry of Environment in Ukraine were amended to extend the duration of the agreements to the end of 2016..

277. Significant restructuring of UNEP’s internal financial and administrative system delayed payments to the implementing partners and undermined the advancement of some activities and leading to the delays in Project implementation. In addition, political instability in Moldova and Ukraine and financial crisis in Moldova (with multiple banks closing in the country, including the one serving the Ministry of Finance), further delayed Project implementation. In Moldova, senior management of the partner organization changed, which also delayed some activities. Nevertheless, the implementation of activities continued: the institutional structure was established through the creation of an SPP Implementation Unit in charge of implementing the core activities of the SPP Action Plan and the Task Force in Moldova and Ukraine. First activities related to the development of both sustainable public procurement tools and an information campaign were launched in both countries.

Progress in January – April 2016

278. Development of the draft roadmaps for pilot tenders covering the prioritized sustainable products in Moldova and Ukraine.

279. Development of the national SPP Training Toolkit inclusive of the updated procurement guidelines and customized tender documents for the three products prioritized for SPP, as well as of the relevant sections from the UNEP training toolkit. The training toolkit will be used during the (1) training for trainers and public procurers on the insertion of sustainability criteria and the reference to relevant ecolabels (if applicable) in line with the European Union directive on public procurement

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throughout the procurement process, and during the (2) training for suppliers on SPP criteria and product sustainability certification to be held in the Q4 of 2016.

Progress in May 2016 – April 2017

280. In Moldova: Two capacity-building workshops on SPP and Eco-labelling were delivered to contracting authorities (21-22 March 2017), and the private sector (23 March 2017) in Chisinau, in collaboration with Moldova’s Public Procurement Agency. Around 57 participants attended the trainings. The main objective of this training was to inform participants about the benefits of Sustainable Public procurement and to ensure that public procurement practitioners would have the capacity to launch tenders targeting sustainable products. The training further aimed at sharing with the private sector the new requirements for the launch of pilot tenders for the purchase of sustainable product categories (organic fruits and vegetables, and energy-efficient windows and doors). Customised training material was prepared and presented by a UN Environment expert, completed by Public Procurement Agency representatives with additional material relevant to the national context.

281. In Ukraine, two capacity-building workshops on SPP and Eco-labelling were delivered to contracting authorities and the private sector (25-27 April 2017), in Kiev, in collaboration with the State Environmental Academy (Ministry of Ecology and Natural Resources of Ukraine). Around 70 participants attended the trainings. The main objective of this training was to inform participants about the benefits of Sustainable Public procurement and to ensure that public procurement practitioners would have the capacity to launch tenders targeting sustainable products. The training further aimed at sharing with the private sector the new requirements for the launch of pilot tenders for the purchase of sustainable product categories (detergents and cleaning products, insulation material, and paints & varnishes). Customised training material was prepared and presented by a UN Environment expert, which also included presentations from local experts and State Environmental Agency representatives.

282. A Russian language mailing list with relevant contacts of stakeholders and experts from the region has been established to disseminate useful information and relevant resources on SPP, inter alia developed under the 10 YFP SPP Programme.

Key achievements towards objectively verifiable indicators:

 An SPP Implementation Unit in charge of implementing the core activities of the SPP Action Plan has been formally established in Moldova and Ukraine.

 Entities involved in the Task Force (former Steering Committee for the SPP related activities) have been officially designated in Moldova and Ukraine. The Task Force will also be in charge of implementing part of the activities foreseen in the SPP Action Plan.

 The review of existing ecolabels for the two prioritized product groups in Moldova (energy- efficient doors and windows; and organic fruits and vegetables), and for the three prioritized product groups in Ukraine (heat insulation materials, paintwork materials and washing & cleaning products) was undertaken at the national and European levels, aiming to assess their relevance and comprehensiveness;

 Sustainability criteria and verification schemes were developed for the priority sustainable product groups in Moldova and Ukraine. They will be inserted in the procurement guidelines in line with existing ecolabels;

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 Procurement guidelines were developed and tender documents were updated in Moldova for the two products prioritized for SPP implementation inclusive of the selected product sustainability criteria.

 2 trainings for trainers and public procurers on the insertion of sustainability criteria and ecolabels were held in both Moldova and Ukraine, in March and April 2017, respectively.

 2 Workshops for the private sector and suppliers were also held back-to-back with those trainings to foster dialogue and share the newly-defined criteria regarding selected product categories. The trainings helped around 120 participants gain a better understanding of the broader national objectives and stakes of the SPP policy.

 A Russian language mailing list with relevant contacts of stakeholders and experts from the region to disseminate information and tools on SPP.

Challenges in the remaining period

283. The delays faced in Moldova, Ukraine and Belarus confirmed the importance to establish regular communication lines with the Project National Focal Points responsible for ensuring the effective engagement of public institutions in the Project.

284. A lack of local expertise in Ukraine and levels of intermediaries have proven to be a challenge in the implementation of the demonstration phase. The choice of implementing organisation/ministry has also proven quite decisive in the implementation of this activity in both Moldova and Ukraine. As such, the Public Procurement Agency or similar entity, rather than the Ministry of Environment, would seem to be the most appropriate partner for future similar project implementation.

285. The production of original documents in the local languages (Romanian, Ukrainian) has slowed down the review process, due to delays incurred by subsequent translations to Russian or English, complicating further corrections. Close follow-up is provided to ensure the completion of remaining activities in 2017.

Works stream 3.3: Promoting organic agriculture

Progress in 2015

286. The Armenian, Moldovan and Ukrainian producers took part in the Biofach organic trade fair in February 2015, during which they exhibited their organic products and got in contact with potential buyers from the European Union. Biofach is the world biggest organic trade fair with over 44,000 visitors from 136 countries and 2,141 exhibitors. 37 During the Biofach Ukrainian producers

37 In the case of Ukraine, UNEP cooperated with the Swiss Research Institute of Organic Agriculture (Fibl) to provide a joint Ukrainian Pavilion in which 9 producers were able to exhibit their products. 3 Armenian and 6 Moldovan producers shared a joint exhibition booth, with was co-financed by the Dutch-Moldovan Business council in the case of Moldova. During Biofach, a side event on “Sourcing organic products from Ukraine, Moldova and Armenia” took place, which included a presentation of the results of the organic market assessment study. In addition, a panel of experts discussed opportunities, threats and solutions to ensure reliable long-term trading relationships with new suppliers. The session ended with an opportunity for importers and exporters to get in direct contact and exchange business cards. In addition to the side event, producers were matched with buyers in

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made 462 business contacts and, according to the information of 6 producers, contracts with a volume of around EUR 6.1 million were concluded during or in the follow up to the trade fair.

Weblink:

 Biofach article in UNEP in Europe Newsletter

287. The EaP GREEN was one of the main sponsors of the 5th International Conference on the Organic Sector Development in Central/Eastern European and Central Asian countries. The conference was attended by over 200 participants from 35 countries representing policy makers, scientists, traders, researchers, the private sector and academia. The conference emerged as one of the largest knowledge platforms to share best practices, lessons learned and inspiring stories about promoting production, processing, and trade of organic agriculture in the region. Countries shared a wide range of experiences that inspire them to advance organic production and trade. These include accessing international markets, increasing employment opportunities especially in rural areas, climate change adaptation and mitigation, conserving biodiversity, improving food safety and health, creating growth under increasing natural resource scarcities and enhancing value addition in supply chains.38

288. The conference included a specific break-out session on Organic Agriculture and Green Economy, which made specific reference to this Project. Speakers from Ukraine, Armenia, Moldova, Georgia, Azerbaijan and Belarus contributed to the regional focus of the session. Topics discussed in this session ranged from strategies of organic market development, to organic agriculture as a tool for greening the economy, to organic legislation development in the region.

289. The results of the conference were documented in an eleven-page article in the 2015 issue of the organic magazine “Organic UA”, published by the Organic Federation of Ukraine.

Weblinks:

 Conference website  Conference programme  News story on conference on UNEP’s Green Economy website  News story on conference in UNEP in Europe Newsletter

290. A Special Session on Organic Agriculture under the lead of UNEP was held during the Steering Committee Meeting in Moldova on 18 June 2015. This session included a roundtable discussion with organic agriculture experts / NGO representatives from Georgia, Moldova, Ukraine, Armenia, Azerbaijan, and Belarus. It was found that the organic sector provides significant opportunities to stimulate a green economy transition in the region due to the low levels of pesticide and fertilizer use, the significant share of small farms and fallow land, the availability of agricultural

pre-arranged meetings, which allowed them to make targeted contacts with buyers interested in their products. 38 In addition to experiences from outside the region, participants from Poland, Moldova, Ukraine, Belarus, Armenia, Kazakhstan, Romania, Kyrgyzstan, Azerbaijan, Georgia, Bulgaria, Tajikistan, Turkey, and Russia shared their experiences with organic agriculture regulations, quality assurance of organic products, and export opportunities and challenges. They discussed how organic agriculture could be integrated into Free Trade Agreements, and Economic Partnerships Agreements and spoke about the role of civil society and media in promoting organic agriculture to create local markets. Certification, labelling and marketing of OA products were also topics discussed throughout the conference.

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labour and the export potential to the growing EU market. However, common challenges remain the overall low awareness of the benefits of organic agriculture and the underdevelopment of the domestic organic markets, the barriers and cost for certification and labeling of organic products, the lack of financing for the development of the sector, the limitations of small-scale farms to expand organic activities, as well as the low attention and support from policy-makers to the development of the sector.

Weblink:

 News story on Special Session in UNEP in Europe Newsletter

291. Two training sessions on the Principles of and Conversion to Organic Agriculture were held in Chisinau with the participation of 34 producers cultivating an agricultural area of over 1100 ha. The two training workshops have been instrumental in informing local farmers about crop-specific organic practices, national agricultural policies, organic certification procedures, as well as the marketing aspects of organic production. Several participants encouraged further capacity building 18 farmers initiated the process of conversion from conventional to organic agriculture and 10 producers were supported in the preparation of a tailored Business Plan for the conversion from conventional to organic agriculture practices on their cultivated land or livestock.

292. Support including through guidance on packaging, labelling and marketing organic produce, was provided to six organic producers from different regions for their participation in three fairs, namely “Bostaniada 2015” (2 days); the 18th International specialized exhibition-fair of agricultural products, equipment, technologies and crafts “Farmer 2015” (4 days with16.370 visitors); and “IarmarEco 201- Ecological and Social Entrepreneurship Opportunities Fair” (1 day with 380 visitors).

293. The production of a TV commercial aiming at broad awareness raising and stimulation of the domestic organic market has been initiated. A TV documentary on the benefits of sustainable agriculture practices by Deutsche Welle TV was also supported and shared through social networks (website, Facebook, twitter). In the frame of a broad awareness raising campaign in Moldova, information materials and an information toolkit on the benefits of organic consumption and production were developed and distributed to teachers and students in 9 educational institutions; a seminar on organic agriculture and the benefits of organic products was held in Chisinau with the participation of 10 teachers, which was broadcast on national TV. A 30-minute program on organic agriculture was developed for the national TV channel AgroTV with the aim of informing on actions undertaken by the Ministry of Agriculture to encourage organic production and sharing experiences from producers on their motivation and challenges to convert to organic agriculture. A thematic organic agriculture week in 9 educational institutions (with guests from 9 additional educational institutions), reaching over 240 students and 55 teachers/parents was organized to raise awareness on the benefits of organic consumption and production. Students made drawings, poems and presentations and conducted interviews in the villages and held small performances on organic agriculture and its benefits, contributing to increased awareness of sustainable consumption and production at local level and stimulating the domestic organic market.

Weblinks:

 TV broadcast on organic agriculture seminar for teachers

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 30-minute TV documentary on organic agriculture for national TV  School children interviews in Moldovan village on organic agriculture  News Story on organic agriculture promotion in UNEP in Europe Newsletter

Progress in January – April 2016

294. Romanian and English versions of three TV spots on sustainable consumption (see links below) were launched both on national TV in Moldova, as well as through the web. The videos were viewed over 21 000 times and had an outreach of over 100 000 people within the first 24 hours of their release through Facebook and twitter. The videos also won the Gold Award at the Deauville Green Awards Festival 2016 in the category sustainable consumption and eco-labelling.

295. 11 Ukrainian companies participated as exhibitors at BioFach 2016 in Nuremberg (Germany) from 10 - 13 February 2016, offering a wide range of organic products typically grown and produced in Ukraine, including cereals, oil crops, pulses, sunflower seeds and oil, groats/flakes, and wild and cultivated berries and berry paste. BioFach is the biggest trade fair for organic products worldwide, with more than 2,500 exhibitors from almost 90 countries. The Ukrainian Pavilion at BioFach was a crucial platform for producers not only to better understand market tendencies and harness business opportunities, but also to present Ukraine as an important producer of organic raw material and a legitimate business partner of high quality processed products. The 11 exhibitors at the Ukrainian Pavillion were able to record a total number of 517 business meetings with interested buyers. This led to contracts with a total value of over USD 10 million, which were concluded both during and after the trade fair.

296. Four Moldovan and five Armenian exhibitors participated in the Natural and Organic Products Expo Europe in London on 17-18 April 2016. The UK market for organic food is one of the largest in Europe with retail sales amounting £1.95 billion. Before the fair, the producers were contacted by a matchmaker and asked to complete company profiles, on the basis of which the matchmaker contacted UK companies, of which ten expressed interest to visit the Armenian and Moldovan stand. On average, the exhibitors met with 15-20 companies during the two days at the show. The contact between these companies and the Armenian and Moldovan businesses led to new contracts, such as the export of 2 tons of walnut kernel to the UK within the first 2 months after the fair. Additional relationship management and follow-up activities from the exhibiting companies will be done in the months after the trade fair. A news report about the EaP Green initiative (see links below) was published on the trade fair’s website following the show, profiling the Project, UNEP’s involvement and the products available from Armenia and Moldova.

Weblinks:

 Launched TV spots / videos on sustainable consumption:  Romanian versions: Badger, Doe, Rabbit  English versions: Badger, Doe, Rabbit  News story on the launch of TV spots / videos on sustainable consumption in UNEP in Europe Newsletter  News story on Ukrainian participation in organic trade fair Biofach in UNEP in Europe Newsletter  Natural & Organic Products News, article published in May 2016 on Armenian and Moldovan trade fair participation  News story on Armenian and Moldovan trade fair participation in UNEP in Europe Newsletter  News story on Armenian and Moldovan trade fair participation on Green Economy web page

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Progress in May 2016 – April 2017

297. The period from May 2016 to April 2017 was marked by completing the last deliverables of this component. Success stories of organic exporters in Moldova, Ukraine, and Armenia, that analyse enabling factors for exports of organic products to international markets, have been compiled. A final national workshop on the conversion to organic agriculture, its market opportunities and access is currently being prepared and will take place in September 2017 in Armenia, as a joint event by UN Environment and the Organic Agriculture Support Initiative (OASI). OASI is implemented by the Austrian Development Agency and financed by the EU. At this workshop, exporters from Moldova and Ukraine will further share their experiences with accessing international export markets

Key achievements towards objectively verifiable indicators

 The Armenian, Moldovan and Ukrainian producers participated in one of the world’s largest organic trade fairs, Biofach, in February 2015. During the organic trade fair, Ukrainian producers made 462 business contacts and concluded contracts with a volume of around EUR 6.1 million during and in follow up of the event.

 In 2016, 11 Ukrainian companies participated as exhibitors at BioFach 2016 in Nuremberg (Germany), which led to contracts with a total value of over USD 10 million. In the same year, four Moldovan and five Armenian exhibitors participated in the Natural and Organic Products Expo Europe in London, where each of them met with met with 15-20 companies on average, helping them to better understand market demands and build up a business network. One Moldovan producer reported 2% of his sales resulted from contracts following his participation in the trade show.

 A regional conference on organic agriculture took place on April 16 and 17, 2015 in Ukraine with over 200 participants from 35 countries.

 A Special Session on Organic Agriculture under the lead of UNEP was held during the 4th Steering Committee Meeting in Moldova on 18 June 2015, which included speakers from Georgia, Moldova, Ukraine, Armenia, Azerbaijan, and Belarus.

 Awareness on organic agriculture was raised with the help of country fact sheets and media and online coverage of the Ukrainian organic conference.

 34 farmers and producers cultivating an agriculture area of more than 1100 ha were trained on the principles and conversion to organic agriculture practices

 18 farmers initiated the process of conversion from conventional to organic agriculture and 10 producers were supported in the preparation of a tailored Business Plan for their conversion.

 Through a broad communication campaign in Moldova, awareness on organic consumption and production was raised among children, teachers, farmers and the public at large.

Challenges for the remaining period

298. Challenges for the remaining period will be to maintain momentum after this project comes to an end. In Armenia, UN Environment has joined forces with the Austrian Development Agency (ADA) that is implementing an organic agriculture project financed by the European Union, and which will take the organic agriculture work forward. In Ukraine, UN Environment has been

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cooperating with the Swiss Research Institute of Organic Agriculture (FiBL) to bring exporters to the organic trade fair Biofach. FiBL has been present in Ukraine with their own office since several years.

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Table 18. Progress on the activities under Component 3 “Demonstration Projects”

3.1.1. RECP Human and Institutional Capacity Development Lead partner: UNIDO Progress made: ON TRACK Context: Objectives: Outcomes:  SMEs in EaP countries, in particular from the targeted food processing,  To establish or strengthen a  Total of 60 national experts construction materials’ and chemicals sectors, lack access to quality, appropriate nationally appropriate trained and coached in and affordable RECP advisory services, causing them to miss out on potentially mechanism for delivering application of basic RECP costs saving opportunities for conservation of materials, water and energy and for value adding RECP services methods and techniques reduction of emissions, effluents and wastes. to enterprises and other  A total of 15 short term trainings organizations in each EaP organized on advanced RECP country. topics.  Three regional meetings of key national RECP experts. PROGRESS IN 2014 Regional level activities National level activities Results achieved  Kick-off meeting of the national  National RECP coordinators  Core Project teams in all countries operational and supported to teams took place in Vienna on 10-11 operational in all countries and foster adaption and adoption of RECP in their home country. February 2014 and further supported by relevant institution.  58 experts trained in first round are on track to complete qualification coordination and planning meeting in  Efforts initiated towards for RECP expert award. Portoroz, Slovenia on 15 October institutionalization under guidance of  Web pages and information leaflets developed in all countries. 2014. nationally appropriate steering/  First steering committees’ meetings took place in Azerbaijan and  National Coordinators from Armenia, governance committee. Georgia, and steering function for Moldova and Ukraine absorbed by Azerbaijan and Georgia presented  First round of integrated training and other existing RECP governance mechanisms. RECP approach and achievements coaching programme on RECP at the REC Caucasus Regional methods and techniques delivered in Cleaner Production meeting on 26 all countries with initial participation June 2014 in Tbilisi. of 85 national experts.  National Coordinators from all 6  10 EaP GREEN hosted awareness countries took part in the regional raising seminars took place covering chapter meeting of RECP network 5 countries. and the 17th European Roundtable  RECP websites operational in all on Sustainable Consumption and countries. Production (in Portoroz, Slovenia 13- 16 October) PROGRESS IN 2015 Regional level activities National level activities Results achieved  Regional coordination and planning  First round training and expert  Forty national experts trained in 2014 were qualified for UNIDO meetings (Georgia in March; Ukraine coaching completed for national RECP expert award to contributing to adaptation and adoption of in July and Davos in October 2015). experts in each EaP country till RECP in their home country.  Presentation of EaP GREEN at September 2015  Some further 80 national experts are undergoing training and working 117

Global RECP networking conference  Second round of training and towards qualification as RECP expert in 2016. and World Resources Forum (in coaching programme organized in all  RECP results and experiences presented at national scale to key Switzerland in October 2015), to six countries, 11 sessions held from government decision makers and business representatives in each further train experts and provide June - December. country at the national conference in Georgia (26 March); Armenia networking opportunities with other  Consultative dialogues on RECP and Azerbaijan (28 and 21 April), Belarus (25 May) and Moldova (30 National Cleaner Production Centres localization and institutionalization September). organized in all countries from April-  Nationally appropriate taxonomies and primers for RECP in SMEs June 2015 with about 75 participants developed and released in each country in the fall of 2015 to be in total. discussed by over 200 participants in specialized RECP forums.  Awareness and promotion activities  Completed stakeholders mapping for RECP mainstreaming and for RECP in each EaP Country. scaling up in each country RECP steering function strengthened in  Development of reports on possible each country with engagement of government, business and civil RECP mechanisms to be established society. in Armenia, Azerbaijan, Belarus and Georgia by the end of 2015.  List of monitoring equipment for each national team finalized, relevant suppliers identified.  Training on the use of monitoring equipment delivered in Ukraine. PROGRESS JANUARY - APRIL 2016  Regional coordination and planning  Meetings of RECP steering  Minimum 60 national experts trained in 2015 qualified for UNIDO meeting (Chisinau, 27 March 2016) committees in each EaP country RECP expert award and are contributing to adaptation and adoption organized in Georgia in 2016. of RECP in their home country  List of monitoring equipment for each  Completed stakeholders mapping for the 2nd round of RECP national team finalized, relevant mainstreaming and scaling up (RECP Clubs) in each country suppliers identified. established in 8 new municipalities and reinforced in 4 previously  Awareness and promotion activities engaged regions on-going for RECP in each EaP  Minimum 40 national experts are trained in Safer and Responsible Country. production approach in Belarus.  Monitoring equipment supplied to the  national team in Belarus to enhance assessment capacities and further monitoring techniques; training on the use of monitoring equipment is provided.

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PROGRESS MAY 2016 - APRIL 2017  Participation in RECPnet European  Second round of RECP coaching and  77 experts trained in all 6 countries and 69 of them awarded UNIDO Chapter meeting on the occasion of training programme finalized in all six certificates. the Batumi Ministerial Conference, countries  More than 1500 experts reached through 36 forums conducted in June 2017  Six RECP Forums completed in each each country contributed to completion of the 2nd edition of national  Presentation of RECP in Belarus country. RECP primers published in national languages in all countries and video and Kommunarka  Awareness and promotion activities launched at the Final National Conferences in 2017. confectionnary chocolate at the EaP for RECP on-going in each EaP  Establishment of RECP Center in Belarus (September 2016) GREEN Side event on 9 June Country.  Government commitment to establish Green Economy Center in   Development of concepts of possible Armenia in parliament hearings (March 2017) confirmed at the RECP mechanisms in Armenia, national conference by the Deputy Minister of Environment Belarus and Georgia  Hands on trainings on RECP monitoring equipment conducted in  Monitoring equipment for Belarus (2 Belarus (18 May 2016), Armenia (19-20 April 2017) and Georgia (29- batches), Armenia and Georgia 30 March 2017) in conjunction with trainings on Technology Pocket purchased guides   Minimum 40 national experts are trained in Safer and Responsible production approach in Belarus (July 2017)  RECP Mainstreaming and scaling up (RECP Clubs) completed in 12 municipalities of the region.

 UN Environment Safer Production  Around 80 government representatives, chemical service providers Training and Eco-Innovation and companies handling/using/storing chemicals, as well as Workshop held in Georgia and academia and NGOs trained on sound chemicals managements and Belarus the eco-innovation approach. 3.1.2. RECP implementation, dissemination and replication Lead partner: UNIDO Progress made: ON TRACK Context: Objectives: Outcomes:  SMEs remain sceptical towards adopting RECP methods and techniques, due to  To allow enterprises and other  Detailed RECP assessments lack of properly documented company examples with proven resource organizations in the EaP completed for at least 90 conservation, environment and economic benefits. Moreover, practical countries to implement RECP demonstration companies mechanisms for enterprise cooperation and joint learning at sector or regional concepts, methods, practices  Minimum of 50 enterprise level are lacking and techniques and to monitor success stories compiled and verify their environment,  Some 25 replication resource use and economic programmes planned and benefits delivered  Some 200 SMEs have completed a replication activity and 75% thereof have started implementation of RECP opportunities

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PROGRESS IN 2014 Regional level activities National level activities Results achieved  Covered under 3.1.1  In depth RECP assessments under  45 SMEs participating in RECP demonstrations have started to implementation to identify and improve their resource efficiency and environmental performance. evaluate RECP opportunities for 45 SMEs covering all three target sectors and all six EaP countries, for completion in Q1, 2015.  Communication materials developed and disseminated at events to promote RECP demonstration results.

PROGRESS IN 2015 Regional level activities National level activities Results Achieved  Covered under 3.1.1  Continuation of advice and  RECP assessments completed for first batch of 45 SMEs (started in monitoring of enterprise benefits in 2014) and advice and monitoring support provided for implementation first batch of 45 demonstration of resulting RECP options in about 12 enterprises. enterprises.  Additional 67 SMEs involved as demonstration enterprises for which  Second round of RECP assessments RECP assessments are being completed. in 67 SMEs covering all sectors and  Increased awareness and understanding among government and countries. business community of the benefits of RECP achieved by national  Publication of business cases in each enterprises. country and national dissemination  Some 15 municipalities around EaP region actively engaged in conferences took place in March- fostering RECP in local SMEs, with engagement of some 150 SMEs June 2015 bringing together more across the region. than 250 participants.  Launch of RECP Clubs in two municipalities/regions in each country; consists of twelve regions hosting RECP clubs meetings of about 140 companies in total scheduled from September 2015 to January 2016. Activity was supported through the development of a resource package to be used by each national team.

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PROGRESS JANUARY - APRIL 2016  Covered under 3.1.1  Continuation of advice and  RECP assessments completed for first batch of 45 SMEs (started in monitoring of enterprise benefits in 2014) and advice and monitoring support provided for implementation first batch of 45 demonstration of resulting RECP options in about 12 enterprises. enterprises.  Additional 67 SMEs involved as demonstration enterprises for which  Second round of RECP assessments RECP assessments are being finalized. in 67 SMEs covering all sectors and  Increased awareness and understanding among government and countries. business community of the benefits of RECP achieved by national  Launch of RECP Clubs in two new enterprises. municipalities/regions in each  Some new 12 municipalities around EaP region actively engaged in country; consists of twelve regions fostering RECP in local SMEs, with engagement of some 150 SMEs hosting RECP clubs meetings of across the region. about 140 companies in total as of March 2016. Activity was supported through the development of a Workbook on main RECP topics to be used by each national team.  Monitoring equipment sets and relevant suppliers identified in three countries of the region (Armenia, Azerbaijan and Belarus) PROGRESS MAY 2016 - APRIL 2017  N/A  Continuation of advice and  RECP assessments completed for the second batch of 55 SMEs monitoring of enterprise benefits in (started in 2015) and advice and monitoring support provided for first batch of 45 demonstration implementation of resulting RECP options upon demand from enterprises. enterprises from the 1st assessment round (2014-15).  Second round of RECP assessments  New enterprises’ success stories were published for the second in 55 SMEs covering all sectors and assessment round’s enterprises in each country with clearly countries finalized. monitored and verified environment, resource use and economic  Completion of RECP Clubs’ second benefits. round in each country supported with  Advanced assessments of 23 enterprises completed by national a complete set of RECP Clubs experts, including feasibility studies for implementation and financing activities (resource packages) in of identified RECP options. national languages with Workbooks  Increased awareness and understanding among government and for enterprises and manuals for business community of the benefits of RECP achieved by national Facilitators published in 2017. enterprises.  Monitoring equipment sets purchased  Some new 8 municipalities in EaP region actively engaged in in three countries of the region fostering RECP in local SMEs, with engagement of some additional (Armenia, Azerbaijan and Belarus) 70 SMEs across the region with total number of RECP clubs members’ and/or associates increased to up to 200 SMEs in 20

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regions of EaP countries in the years 2015-17.  RECP measures of different level started to be implemented at demonstration enterprises, including low and medium costs measures, are documented in each country. 3.1.3. RECP Technology Support Lead partner: UNIDO Progress made: DELAYED Context: Objectives: Outcomes:  RECP implementation in industries is contingent on having appropriate RECP  To identify and promote the  Three sector based RECP enabling technologies and equipment available to SMEs in local markets transfer and widespread technology needs and deployment of appropriate and opportunity assessment affordable RECP techniques reports published and technologies for the target  Five RECP technology pilots industry sectors prepared and promoted for implementation for each target sector PROGRESS IN 2014 Regional level activities National level activities Results achieved  Input to financing workstream, led by  Cooperation agreed with  UNIDO insights on RECP financing challenges incorporated in OECD, including participation in Development Bank of Austria to fast regional work on scaling up financing for Green Economy. expert group meeting. track RECP options for green lending schemes in Georgia.  No specific activities had been planned for other countries. PROGRESS IN 2015 Regional level activities National level activities Results achieved  Advanced RECP technical and  Training provided in Georgia on  Specific investment proposals discussed to be developed and Project financing training for key options for green lending (23-24 promoted for some 2-4 demonstration enterprises in each country. experts from each country (combined March 2015) with support from DBA with regional coordination and at the regional Green financing planning meeting in Georgia (see training and a national round table on 3.1.1) green financing in Georgia  Initiated follow up support to most promising demonstration companies for techno-economic evaluation and Project planning for higher technology and investment options in all 6 countries. PROGRESS JANUARY – APRIL 2016  Regional subsector pocket guides on  Green financing further explored in  Specific investment proposals identified, further developed and RECP for SMEs developed for Georgia (options report available) to promoted for some 2-4 demonstration enterprises in each country. common focus subsectors: dairy, serve as an example for replication in 122

dissolvent and asphalt production other countries industries. Related regional trainings  Initiated follow up support to most (webinars) are planned. promising demonstration companies for techno-economic evaluation and Project planning for higher technology and investment options in all 6 countries. PROGRESS MAY 2016 - APRIL 2017  Regional subsector pocket guides on  Green financing report finalised on  More than 200 enterprises’ representatives from the region took part RECP for SMEs finalized for the situation in Georgia to serve as in online RECP Financing survey contributing to the analysis report common focus subsectors: dairy, an example for replication in other on RECP financing to be finalized by the end of June and reported at dissolvent/chemicals use and bricks countries the OECD Green Financing conference. and paving production industries in  Results of RECP Financing on-line  More than 20 advanced assessments completed with higher-cost English. Two of them adapted and questionnaire rolled out in all RECP technologies identified and relevant feasibility studies translated into four national countries reported by each country at promoting implementation by the SMEs, a few of which are already languages and Russian. Related the Regional Round Table on RECP implemented by enterprises on their own. regional online trainings (webinars) Financing held in Tbilisi on 26 April  Two enterprises in Georgia confirmed bank loans application for are planned. 2017 RECP measures implementation.  RECP Financing “how to” brochure  Documented techno-economic to be developed based on EaP evaluation and project planning for region options. higher technology and investment options in all 6 countries finalized in advanced assessment reports. 3.2. Stimulating innovation and more sustainable goods and services through Lead partner: UNEP Progress made: ON TRACK sustainable public procurement Context: Objectives: Outcomes:  In order to move towards more sustainable consumption and production  To effectively implement  Increased public procurement patterns, emphasis needs to be placed on the change of consumption sustainable public procurement of sustainable goods and behaviours both from institutional and individual consumers. Product information in targeted countries; services tools, such as eco-labelling, provide consumers with information about the  To raise awareness of public  Awareness and capacity of product’s impacts and give market incentives to producers to produce authorities, producers and policy makers and private environmentally and socially beneficial products. consumers about the potential sector strengthened to  There is considerable lack of operational policies, even where GPP relevant of eco-labels, including through enhance synergies between provisions have been. Following the development of SPP National Action plans the dissemination of best eco-labelling and SPP in the target countries under Component 1 the demonstration component will practices for practical focus on supporting the implementation of SPP. implementation of eco-label related EU directives to the industry and public;  To increase understanding and skills of policy-makers in applying eco-labelling. 123

PROGRESS IN 2014 Regional-level activities National-level activities Results achieved No activities in 2014 as the work was scheduled to start in 2015. N/A PROGRESS IN 2015 Regional level activities National level activities Results achieved  In Moldova and Ukraine: In Moldova and Ukraine:  An SPP Implementation Unit in  Establishment of SPP Implementation Unit and SPP Task Force charge of implementing the core  List of existing ecolabels for three prioritized SPP products activities of the SPP Action Plan has  List of corresponding sustainability criteria and/or verification been formally established in Moldova schemes for insertion in procurement guidelines in line with existing and Ukraine. ecolabels  Entities involved in the Task Force  Procurement guidelines for prioritized products updated (former Steering Committee for the  Updated tender documents inclusive of appropriate technical SPP related activities) have been specifications, sustainability and award criteria and/or direct officially designated (the Task Force reference to ecolabels will also be in charge of implementing  Draft communication strategy inclusive of the list of communication some activities foreseen in the SPP materials to be developed for the information campaign in 2016, Action Plan).  Sustainable public procurement tools were developed by incorporating sustainability criteria in public procurement tools in line with existing ecolabels, or by referring to these ecolabels:  Existing ecolabels for the prioritized product groups were reviewed in Moldova (energy-efficient doors and windows; and organic fruits and vegetables), and in Ukraine (heat insulation materials, paintwork materials and washing & cleaning products) at national and European level, with the aim to assess their relevance and comprehensiveness;  Sustainability criteria and verification schemes were developed for the priority sustainable product groups in Moldova and Ukraine. They will be inserted in the procurement guidelines in line with existing ecolabels; 124

 Procurement guidelines were developed in Moldova for the two products prioritized for SPP implementation inclusive of the selected product sustainability criteria;  Tender documents were updated with appropriate technical specifications, sustainability and award criteria and/or direct reference to ecolabels in Moldova for the two products prioritized for SPP implementation  a communication strategy on SPP and ecolabels with a particular focus on the SPP Policy and Action Plan was developed, inclusive of the list of communication materials for the information campaign, during 2016 in both countries.

PROGRESS JANUARY – APRIL 2016 Regional level activities National level activities Expected results In Moldova and Ukraine: In Moldova and Ukraine:  Draft roadmaps for 3 pilot tenders covering the prioritized sustainable  Roadmaps for each pilot tender products (in progress)  National SPP Training Toolkit (inclusive of the updated procurement  National SPP Training Toolkit guidelines and customized tender documents for the three products developed inclusive of the updated prioritized for SPP, as well as of the relevant sections from the UNEP procurement guidelines and training toolkit) customized tender documents for the products prioritized for SPP, as well as of the relevant sections from the UNEP training toolkit.

PROGRESS MAY 2016 - APRIL 2017  A Russian language mailing list In Moldova and Ukraine:  Contracting authorities are familiar with the benefits of SPP, and the with relevant contacts of  Capacity building based on the newly details of the approach and are aware of the new requirements and stakeholders and experts from the developed SPP Training toolkit was tools. Economic operators are informed of the changes that will have region has been established to provided in Moldova and Ukraine to an impact on their operations and what will be expected of them. disseminate useful information and contracting authorities (30 and 55  Communication tools were disseminated to participants at training 125

relevant resources on SPP, inter participants) and relevant economic workshops. alia developed under the 10 YFP operators/suppliers (24 and 13 (Further results expected include the development of more roadmaps SPP Programme. participants) and launch of new/additional pilot tenders, the update of procurement  Communication tools have been further guidelines inclusive of lessons learned from pilot tenders, as well as developed in both countries, as part of reports on the amendments to be incorporated into the legislation, the communication campaign (brochure, and on the reporting and monitoring system for SPP.) leaflet and SPP guidelines in Moldova; dedicated website and presentations, and SPP Handbook in Ukraine).

Activity 3.3: Promoting Organic Agriculture Lead partner: UNEP Progress made: ON TRACK Context: Objectives: Outcomes:  Application of green agricultural practices and technologies helps to  Increase production and trade This Project aims to provide support simultaneously address issues of environmental degradation and social poverty. of OA products by building to countries to enhance their Organic agriculture (OA) offers opportunities to countries in the EaP region to the capacity of the private knowledge of market opportunities access international and especially, European markets, create new and more sector to access growing and barriers and build capacities for rewarding jobs, develop new businesses, address climate change and build international and European production and trade of organic natural capital on which prospects for sustainable economic growth and wealth markets for organic products; products. The ultimate aim of the creation depend. According to the UNEP study (2011) significant opportunities  To demonstrate the value and Project is to increase the number of exist for further promoting organic farming in Armenia, Moldova and Ukraine. feasibility of a sub-regional companies and farmers that Following up on this study, this Project component focuses on enhancing country organic standard. harness the trade opportunities of capacities to expand the organic agriculture sector. organic agriculture.

PROGRESS IN 2014 Regional level activities National level activities Results achieved  A concise paper, discussing the value  Two rounds of national workshops  6 national workshops were organized and held in Moldova, and feasibility of a sub-regional successfully took place in Moldova, Armenia, and Ukraine, reaching on average 30 key private and organic standard, has been prepared Armenia, and Ukraine. They public sector actors or NGO stakeholders;  Guidance documents on marketing, brought together main stakeholders,  A concise paper on the value and feasibility of a sub-regional packaging, and branding of organic presented the Project, discussed organic standard has been finalized; products are prepared capacity building needs of the  Market assessments for the main export products have been and  A market assessment report, organic sector, presented the will be disseminated; analysing the organic sector in findings of the market assessment  9 local organic producers were supported in exhibiting and offering a Armenia, Moldova and Ukraine, and study and prepared selected large range of organic products at a local market in Chisinau. The identifying priority export products, companies for their participation in fair raised public awareness on the benefits of local and organic has been finalized. Country fact the organic trade fair Biofach; agriculture products and was broadly publicized in the local news sheets, summarizing the main  A market assessment report, and newspapers. findings of the report, are being analysing the organic sector in  A pilot scoping study in Moldova mapping producers of organic finalized. Armenia, Moldova and Ukraine, and agriculture products and partnerships between organic producers identifying priority export products, and educational institutions was carried out has been finalized.  Organic producers/farmers were matched with public and private 126

 A local market for organic products educational institutions and discussed the feasibility and next steps was organised and held on 11 for the procurement of organic products for school lunches October in Chisinau, Moldova  A pilot scoping study was conducted  The regional conference in Ukraine, aimed at presenting first results on mapping producers of organic of the Project and creating a momentum in the region, had to be agriculture products and partnerships postponed and will take place in April 2015. between organic producers and educational institutions; the study was presented at a national workshop in Chisinau on 18 November 2014. PROGRESS IN 2015 Regional level activities National level activities Results achieved  The EaP-Green was one of the  3 country fact sheets on Armenia, main sponsors of the 5th Moldova and Ukraine were prepared  Armenian, Moldovan and Ukrainian producers participated one International Conference on the and distributed at Biofach. They of the world’s largest organic trade fairs, Biofach, in February Organic Sector Development in contained the key messages of a 2015. During Biofach, Ukrainian producers made 462 business Central/Eastern European and comprehensive study assessing the contacts and, according to the information of 6 producers, Central Asian countries. The organic market and related contracts with a volume of around EUR 6.1m had been conference was attended by over opportunities for the three countries. concluded during or in the follow up to the trade fair. 200 participants from 35 countries  A regional conference on organic agriculture took place on April representing policy makers, In Moldova: 16 and 17, 2015 in Ukraine with over 200 participants from 35 scientists, traders, researchers, the  Two training sessions on the countries allowing for regional knowledge exchange and private sector and academia. Principles of and Conversion to networking among experts.  A Special Session on Organic Organic Agriculture were held in  A Special Session on Organic Agriculture under the lead of Agriculture under the lead of UNEP Chisinau; UNEP was held during the Steering Committee Meeting in was held during the Steering  Support was provided to farmers in Moldova on 18 June 2015, with speakers from all EaP countries Committee Meeting in Moldova on developing a tailored business plan exchanging knowledge and identifying common challenges. 18 June 2015. This session for the conversion from conventional  Awareness on organic agriculture was raised with the help of included a roundtable discussion to organic agriculture practices; country fact sheets as well as media and online coverage of the with organic agriculture experts  Farmers were supported to Ukrainian organic conference. from Georgia, Moldova, Ukraine, participate in three national/local Armenia, Azerbaijan, and Belarus exhibitions for organic products and In Moldova: and allowed for an exchange of were assisted in the packaging,  34 farmers (cultivating an agriculture area of more than 1100 ha) common challenges and labelling and marketing of their and producers were trained on the principles and conversion to experiences among experts. organic produce; organic agriculture practices  A toolkit on marketing, packaging  A broad awareness raising campaign  18 farmers initiated the process of conversion from conventional and branding has been prepared on organic consumption and to organic agriculture and 10 producers were supported in the and will be disseminated among production was launched: preparation of a tailored Business Plan for their conversion. producers participating in Biofach - information materials and toolkits  Farmers participated in local organic fairs and were supported in and the Natural and Organic for teachers were developed and selling their produce Products trade show. distributed; 127

- a seminar on organic consumption  Awareness was raised on organic consumption and production and agriculture for teachers from among teachers, school children and the public at large (i.e. educational institutions was held; through the distribution of a 30-minute documentary on organic - a thematic week dedicated to agriculture on national TV) organic agriculture and consumption was held in educational institutions; - TV broadcasts/documentaries were supported with partner institutions - the production of a TV commercial on stimulating organic consumption was initiated PROGRESS JANUARY – APRIL 2016 Regional level activities National level activities Expected results  Collection and publication of  Ukrainian producers participated in  Ukrainian companies participated in Biofach for the second time with success stories of Eastern the world’s largest organic trade fair the support of UNEP. Companies with more experience with Biofach European producers that managed Biofach on February 10-13, 2016. took on ownership and responsibility in the preparation process and to successfully enter export Like last year, UNEP corporated with contributed an increased share of the financing for their participation markets, based on experiences at the Swiss Research Institute of to ensure their ownership in the activity. During Biofach, the 11 Biofach and Natural and Organic Organic Agriculture (Fibl) organized Ukrainian producers were able to have 517 business meetings with Products trade show has a joint Pavilion for Ukrainian interested buyers, which led to contracts with a total value of around commenced and is planned to be producers. Armenian and Moldovan USD 10 mn both during and after the trade fair. finalized in the second half of 2016. producers participated in the Natural  Armenian and Moldovan producers participated in the Natural and  Launch of TV commercial on and Organic Products trade show in Organic Products Europe trade show in London. In order to sustainable consumption on London on April 17 and 18, 2016. participate, they undertook additional fundraising efforts with other national TV in Moldova, and This trade fair was attended by agencies, such as the Austrian Development Cooperation, to provide globally through the web buyers that look for smaller for co-financing. On average, Armenian and Moldovan exhibitors had quantities of organic products and 15-20 business contacts with potential buyers. was therefore a good match for  UNEP’s Project webpage and the EaP-Green website contain all producers from Moldova and knowledge products developed in the course of the Project. Armenia. In addition, the trade show allowed the producers to explore the  The launch of the TV commercial on national TV in Moldova and the dynamic UK market. dissemination through the web achieved 21.000 views and an  Preparations for the capacity building outreach of over 100.000 people within 24 hours through likes and and training for farmers and shares on Facebook and YouTube. The videos won the Gold Award producers on OA practices and in the category sustainable consumption and eco-labeling at the certification in Armenia have started Deauville Green Awards Festival 2016. including securing co-finance.  Discussions with the Ministry of Agriculture and NFPs on the development of a draft law on

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organic production in Belarus have started

 NB. The implementation of further activities had to be postponed due to the non-receipt of due Project funds. PROGRESS MAY 2016 - APRIL 2017  Success stories of organic  A final workshop on the conversion  Success stories on organic agriculture are compiled and are being exporters in Moldova, Ukraine, and to organic agriculture, its market edited for online publication and presentation at a final organic Armenia that analyse enabling opportunities and access is currently agriculture workshop in Armenia. factors for exports of organic being prepared and will take place in  Workshop in Armenia, taking place in September 2017, under products to international markets September 2017 in Armenia, as a preparation. have been compiled and will be joint event by UN Environment and presented at an upcoming organic the Organic Agriculture Support agriculture workshop in Armenia. Initiative (OASI). At this workshop, exporters from Moldova and Ukraine will share their experiences with accessing international export markets, which will add a regional element to this national-level workshop.

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PART 4: MANAGEMENT AND COMMUNICATION

Project Management

299. The implementation of the Project is overseen by the Steering Committee composed of representatives of the beneficiary countries, the four implementing organisations (OECD, UNECE, UNIDO and UNEP) and the European Commission. The Action Steering Committee meets annually to discuss progress with the delivery of the Project substantive products and its impact, including issues that impede the Project implementation and ways how they might be alleviated; policy recommendations provided to countries, and information on the Eastern Partnership country efforts to reform their policies in line with policy recommendations provided within the Project.

300. The Project smooth implementation is ensured by

 Action Implementation and Coordination Committee that comprise representatives of the OECD and each UN Partner that ensures day-to-day Project implementation and co-ordination.

The EaP GREEN Steering Committee meetings

Progress in 2014

301. The third meeting of the EaP GREEN Steering Committee, that was held on 8 October 2014 in Minsk, Belarus, was the key event that reviewed progress in the implementation of activities carried out under the EaP GREEN regionally and nationally in the period September 2013 - September 2014 and discussed the work plan for the remainder of 2014 and for 201539. Participants included the National Focal Points from all six EaP countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), representatives of the European Commission, and the four implementing organisations: OECD, UNECE, UNEP and UNIDO.

302. The meeting endorsed the draft Report on Progress in the Implementation of the EaP GREEN Project [ENV/EPOC/EAP(2014)2] and adopted the Plan of Work for 2014-2015 [ENV/EPOC/EAP(2014)3]. The participants agreed that the meeting was an important mid-term milestone in implementing the 4-year EaP GREEN Project of Work [ENV/EPOC/EAP(2013)1]. It showed that all elements of the Project were up and running with some of them already showing early results. The participants called for further efforts to develop synergies between related activities

39 According to a decision of the Committee that each meeting features a thematic discussion, the first part of the meeting was devoted to the topics of Strategic Environmental Assessment and Environmental Impact Assessment as tools for mainstreaming environment into economic development at a national and local level. The session was co-ordinated by UNECE.

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carried out by the implementing organisations, for example for closer co-operation between activities that support greening SMEs (implemented by OECD) and those that promote resource efficient and cleaner production (implemented by UNIDO).

303. All documents presented at the meeting are available from the EaP GREEN web site: http://www.green-economies-eap.org/about/stakeholdersandgovernance/.

Progress in 2015

304. The end of 2014 and the beginning of 2015 were associated with important changes in the management of the Project. To ensure proper co-ordination of activities the fourth meeting of the EaP GREEN Steering Committee was held on 18 June 2015 in Chisinau, Moldova. It reviewed progress in the implementation of activities carried out under the EaP GREEN regionally and nationally in the period October 2014 – June 2015 and discussed the work plan for the remainder of 2015 and for 201640. Participants included the National Focal Points from all six EaP countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), representatives of the European Commission, and the four implementing organisations: OECD, UNECE, UNEP and UNIDO.

305. The meeting endorsed the draft Report on Progress in the Implementation of the EaP GREEN Project [ENV/EPOC/EAP(2015)10] and adopted the Plan of Work for 2015-2016 [ENV/EPOC/EAP(2015)9]. The participants welcomed progress in implementing agreed activities in, and by, the EaP countries in co-operation with the Partner organisations. In particular, the delegates appreciated support provided for greening Small and Medium Sized Enterprises, for developing national systems of Strategic Environmental Assessment, including legislation on Environmental Impacts Assessment and Strategic Environmental Assessment, and for the promotion of the organic farming. The delegates from Belarus and Moldova underlined the importance of this work for the development and implementation of national strategies for greening the economies, sustainable development as well as sectoral plans and programmes.

306. The delegates also identified some of the most frequent challenges encountered during the implementation of the work plan, including: co-ordination between national and international teams that implement country specific activities, selection of consultants, setting up effective inter- ministerial arrangements, ensuring equal representation of all countries in the Project activities, disseminating information on in-country Project activities among the Project stakeholders, and creating synergies between Project components.

307. Finally, the delegates called for reinforced efforts to produce concrete results of specific activities, including regulatory, procedural and institutional reform in areas covered by the EaP GREEN work plan and agreed on the need to support more actively in-country inter-ministerial coordination mechanisms that would facilitate the policy dialogue and consensus building on the necessary reform recommended by the Project activities. Following the discussion during the meeting and subsequent comments the revised Work Plan for 2016 was developed and disseminated to all participants.

308. All documents presented at the meeting are available from the EaP GREEN web site: http://www.green-economies-eap.org/about/stakeholdersandgovernance/.

40 A part of the meeting was devoted to the selected topic of promoting agriculture in the EaP countries. The session was co-ordinated by UNEP.

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Progress in January – April 2016

309. The fifth meeting of the Steering Committee of the EaP GREEN was held on 10 and 11 February 2016 in Brussels, Belgium. Participants included the National Focal Points (NFPs) from the Ministries of the Environment and of the Economy of six Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine), representatives of the European Commission (DG NEAR and DG Environment) and four Project Implementing Organisations (OECD, UNECE, UNEP and UNIDO). The meeting was also attended by a consultant to the European Commission who prepared the Result-Oriented Monitoring (ROM) report of the EaP GREEN. The main objectives of the meeting were to: i) discuss the results of the ROM of the EaP GREEN carried out by an independent consultant, ii) review progress since the previous Steering Committee held in June 2015 and progress towards reaching the objectives of the EaP GREEN, iii) discuss and agree on specific activities to be carried out under the three Components of the EaP GREEN until the end of the Project and iv) identify key outputs of the Project, including country and regional activities, and the means for their dissemination.

310. All documents presented at the meeting, including the Summary record are available from the EaP GREEN web site: http://www.green-economies-eap.org/about/stakeholdersandgovernance/. The key decisions of the meeting included an agreement on the request a budget neutral extension of the Project until September 2017 to allow for the implementation of the ROM recommendations and wider dissemination of the Project’s results and a request for the Work Plans to be adjusted accordingly to the new time frame and restructured to identify regional activities and those in individual EaP countries.

Progress in May 2016 – April 2017

311. Although no Steering Committee meeting was organised during this period the Project provided an important input to three key events: the EU-EaP Ministerial Conference held on 18 October in Luxembourg. The Project representatives presented the key outcomes at the Ministerial dinner and during the Ministerial session. The Project also featured in the EaP Ministerial Declaration adopted by the Ministers.

312. During this period the Project took also an active part in the two meetings of the EU EaP Panel on Environment and Climate held on 26-27 May 2016 and 2-3 March 2017 in Brussels. The results of the Project that were presented at the meetings were highly appreciated by the Panel members and provided an important contribution to the EaP Declaration and the Action Plan that has been developed following its adoption.

Project coordination

Progress in January 2014-April 2016

313. As mentioned earlier the end of 2014 and the beginning of 2015 were associated with important changes in the management of the Project. To strengthen the coordination between Implementing Partners Project routines and tools such as the list of events, lists of contacts, or country-level Project matrix were reviewed in early 2015. At the same time, a password protected EaP GREEN management site was established and has been maintained by the OECD secretariat (https://community.oecd.org/community/eapgreen). The site contains general and technical information about the Project, an updated list of missions and meetings to ensure better co-ordination in activity planning, lists of contacts and communication tools. Summaries of the main issues that were discussed were disseminated to all participants.

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314. In 2014-April 2016 three meetings of the Action Implementation and Coordination Committee were held: on 8 September 2014, 2 October 2015 and 11 February 2016. The first meeting, which brought together Implementing Partners via video links, discussed the new arrangements following the change of the Project Manager at the OECD as of 1 September 2014. The meeting also discussed the preparations for the EaP GREEN Steering Committee meeting in Chisinau. The second and third meeting discussed technical issues related to the work plan and budget implementation and the preparations for and the follow of the Steering Committee meeting in 2016. These also discussed the communication activities.

315. Three meetings of the Management Group were held: on 14 November 2014 in Brussels, 6 March 2015 via video link and on 11 February 2016 in Brussels at the occasion of the fifth EaP GREEN Steering Committee meeting. The meetings, which involved the EC and the Implementing Partners, discussed: i) the follow up to the Project Steering Committee meeting held in Minsk; ii) the changes at the EU in relation to the co-ordination with the EaP GREEN following the establishment of the DG NEAR, iii) the main activities in 2015 and 2016; and iv) future cooperation between the EU and the EaP-GREEN beneficiary countries, especially in light of the political developments in the region. Summaries of the main issues that were discussed were disseminated to all participants.

316. In terms of financial management, the following actions were carried out by the OECD secretariat in co-operation with Implementing Partners:

 Processing payments to the UN Partners;  Preparation of financial reporting format and questionnaire;  Provision of answers to the Partners’ questions on financial and contractual issues;  Coordination of the reporting process;  Consolidation /review of inputs (including interim ones) for the financial reporting.

Progress in May 2016 – April 2017

317. Four meetings of the EaP GREEN Management Group were held: on 26 May 2016 in Brussels at the occasion of the EU EaP Panel on Environment and Climate, on 14 October 2016 (via phone), on 23 November 2016 in Brussels and on 3 March 2017 in Brussels at the occasion of the EaP Panel on Environment and Climate.

318. The meetings, which involved the EC and the Implementing Partners, discussed: i) administrative issues related to the EaP GREEN; ii) activities planned for the remaining period, including major outputs and events, iii) communications; and iv) outcomes of the EU-EaP Ministerial and prospects for the future work after the end of the EaP GREEN. Summaries of the main issues discussed were disseminated to all participants. The meeting on 23 November involved the presentations of relevant EU programme and activities. These included the Technical Assistance and Information Exchange (TAIEX), Neighbourhood Investment Facility (NIF), DEVCO and the EU’s New Consensus on Development” and DG NEAR Communication work. The exchange allowed to gains insides into the co-operation opportunities and procedures that could facilitate the EaP GREEN implementation.

319. In addition, the EaP GREEN Action Implementation and Coordination Committee, that brings four EaP GREEN Partners, held regular exchanges in person and via conference calls. In the second half of 2016 an intensive communication focused on the arrangement of the extension of the

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contract for 2017 as agreed at the 2016 Steering Group meeting in Brussels. The procedures followed regarding contract amendments for an extended duration between the EC and the OECD and between the OECD and the Partners. These were associated with the discussions of the amendments to budgets and payment schedules. The amendment procedure for the contract extension was completed by end of 2016.41

Implementation of the Communication Strategy

Progress in January 2014-April 2016

320. Following the adoption of the Project’s Communication Strategy in September 2013 a number of steps were taken to implement it. These included:

 Dissemination of information about the Project activities, its outputs and impacts through dedicated web sites established by the Implementing Partners in 2013 in English and Russian (e.g. through Facebook of the Espoo Convention, UNECE tweeter, we also through press releases and several articles and video news);

 Creation of the first version of a dedicated EaP GREEN Project web site in English and Russian (http://www.green-economies-eap.org/);  Preparation and dissemination of the Project brochure (http://www.oecd.org/environment/outreach/EaPGREEN-Brochure-English-2014.pdf);  Development of a distinct logo of the EaP GREEN Project and the visual identity package including templates for the presentations, banners and agendas.

 Preparation of the leaflets presenting work in individual EaP countries (available from http://www.green-economies-eap.org/;  Conducting a survey of major stakeholders in order to understand better their information needs, preferred products, channels of information and languages to be used;  On-going communication with target groups, including timely response to ad hoc questions sent to the generic account [email protected].

321. The Communication Strategy, and its implementation, was presented and discussed at the third and the fourth EaP GREEN Steering Committee meetings in October 2014 and June 2015. In the discussion the delegates agreed that further efforts were needed to provide regular and detailed information on country specific activities to National Focal Points and the EU Delegations and requested wider dissemination of communication material and information about the results to broader in-country audiences, including to the local level, by working with journalists and the media. The delegates also requested support to the development and regular updating of dedicated EaP GREEN pages on the web sites of the EaP Ministries of Economy and the Environment.

322. The discussion among the Partners held in October 2015 agreed on the following steps necessary to reinforce communication activities in 2016:

 revisiting the EaP GREEN web site and the EaP GREEN Clearspace;

41 Following a limited extension of the contract between the OECD and UNECE for the first three months of 2017 an additional extension till the end of 2017 was completed by end of March 2017.

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 preparing a schedule of producing the Country Updates;

 elaborating further ideas on the use of electronic communication tools (Facebook, Twitter, and similar);

 providing regular inputs to Capacity 4 Development web site;

 elaborating ideas concerning inputs to the Batumi Conference.

Progress in May 2016 – April 2017

323. The activities in this period focused on the preparation of consolidated Project results as inputs to the high level events: the “Environment for Europe” Ministerial Conference, 8-10 June 2016, Batumi, Georgia, the EU EaP Ministerial meeting on 18 October, 2016 in Luxembourg and the EU EaP Panel on Environment and Climate Change meeting (3 March 2017, Brussels). The inputs included the EaP GREEN leaflet that summarised the main areas of work and progress and an extended brochure that presented detailed activities and their results. During the Ministerial meeting in Batumi a high level side event was organised on 9 June that involved the Ministers from the EaP countries and high level officials from the EU, OECD, UNECE, UN Environment and UNIDO. During the conference a publication and communication stand was arranged which provided an opportunity to disseminate information about the project to around 2 000 participants of the Conference. During the EU EaP Ministerial meeting a presentation of the results was made at the Ministerial dinner and a leaflet with the EaP GREEN results was disseminated.

324. During this period efforts were reinforced to widely disseminate the results and outputs from the Project via Internet which included a regular updates of the EaP GREEN web site, preparation of the press releases on specific events and putouts and videos with the results of various Components.

325. Following the discussion at the 2016 Steering Group meeting work has been launched to prepare a consolidated report that will bring together various streams of activities, present the specific results of the Project and the overall progress in greening the EaP GREEN economies. The report will present lessons learned and outstanding challenges in the EaP countries. The preparation of the report is combined with the organisation of a regional final event (currently scheduled for 25-26 September 2017 in Paris) and in-country dissemination meetings.

326. The detailed implementation activities to achieve these objectives are presented in Table 19.

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Table 19. Progress on implementing the EaP GREEN communication strategy

Implementation of the Communications Strategy Lead partner: OECD Progress made: ON TRACK Context: Objectives: Outcomes:  A Communication Strategy for the  To establish EaP GREEN as a brand and The communication strategy primarily aims to deliver: programme was developed in consultation achieve visibility for the programme’s  A distinct and well-known visual identity for EaP GREEN. with the programme’s implementing achievements.  A range of supportive documents and advocacy materials made partners.  To promote the impact of the work conducted available for partners and NFPs – such as brochures, flyers, country  Communications activities also aim to under the three components of the notes, website and social media. respond to the EU’s requirements on programme.  A continuous information flow and updates on ongoing activities and visibility as laid out in our framework  To raise awareness and generate support for achievements through as many channels as possible. agreement. the required policy measures and decisions  Work with the local and international media (as applicable). on greening economies in the region.  Fundraising. PROGRESS IN 2014 Regional level activities National level activities Results achieved  National focal points consulted on the  Country notes developed to summarise work  Distinct visual identity for EaP GREEN in English and Russian available EaP GREEN communications strategy at done by each of the Project partners. incl. style guide. an early stage of the planning.  Moldova: the deployment of an information  PPT presentation templates are developed for use by partners and  A communications questionnaire mapped webpage on the EaP GREEN under the NFPs in the context of any presentation to be held on EaP GREEN. the availability of tools and technology website structure of its Ministry of Economy.  The EaP GREEN Project brochure available in English and Russian, alongside the use and nature of and is being disseminated to partners, NFPs and country / delegation information requirements in the region. contacts. The online survey collected 89 responses  Webpages for the EaP GREEN Project introduced under the corporate from over 20 countries. The majority of website of partners (e.g. UNECE distributes information about the EaP respondents are a direct target audience GREEN on the Facebook page of the Espoo Convention and UNECE of EaP GREEN from the region. twitter);  A presentation on progress to date and  Domain names for the distinct EaP GREEN website reserved; the future plans for communications will be development of the site in progress. held at the meeting of the Steering  Social media analytical note and business plan finalised and agreed by Committee in Minsk, Belarus with regional partners. delegates. We will be exploring outreach  A closed community platform operational for Project partners to interact possibilities to the media in the context of in the form of sharing documents, progress information and launch the meeting (if newsworthy information internal discussions. can be identified in due course).  Country notes for 3 priority countries – Ukraine, Moldova and Belarus - available, with the rest of the notes envisaged to be ready by the end of 2014.  Feeding EaP GREEN materials into other relevant platforms such as the OECD’s (and partners’) newsletters, social media and the GGKP.

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PROGRESS IN 2015 Regional level activities National level activities Expected results  Project brochure sent to countries and  A set of updates for all countries prepared  A distinct visual identity for the EaP GREEN. EU Delegations after the Belarus with country-specific news and events.  Consistency of the visual identity with the EU requirements. meeting (on request, 2370 copies).  A set of one-pager country notes for all  Provision of an informative EaP GREEN webpage (number of visitors to  The logo and branding amended to countries released. the webpage reaches 150 per month). respond to the EU requirements.  The EaP GREEN webpage designed in a  Creation of a distribution network for dissemination of information about  The EaP GREEN branding consistently way that country-related work is available the EaP GREEN. applied in all communications materials directly from the homepage.  Wide dissemination of information about the Project activities and released by Project Partners.  The standard publishing template created outputs.  Assistance and advice provided upon for the country reports. request on the application of the EaP GREEN branding tools.  A dedicated web platform for EaP GREEN released (April 2015, www.green-economies-eap.org).  An EaP GREEN account on Flickr created, followed by an audio-visual update.  Events and news from partners fed into the capacity4dev.eu website. PROGRESS JANUARY – APRIL 2016  Maintenance of the EaP GREEN web  Liaising with the National Focal Points and  Reinforced brand recognition and visibility for EaP GREEN. content and creation of the new content rolling-out information pages about the EaP  Consolidation of the results of the Project items in English and Russian GREEN under the corporate website of each  Presentation of the Project results at the regional and national level to  Feeding the EaP GREEN resource library participating countries’ Ministries of Economy high level stakeholders. with publications and other outputs and/or Environment (similar to action taken  Availability of a range of professionally developed, up-to-date set of produced under Project Components recently by Moldova) communications and advocacy materials.  Continuation of feeding the Flickr platform  Updating and releasing regular National  Wide dissemination of information about the Project activities and – including the production of the audio- Focal Point updates outputs. visual newsletter  Updating one-page country information  Seeking new avenues for disseminating sheets; ensuring dissemination to target work on social media audiences  Assisting Project Partners in the application of the EaP GREEN brand and visual identity PROGRESS MAY 2016 - APRIL 2017  Maintenance of the EaP GREEN web  Several video messages prepared on  Reinforced brand recognition and visibility for EaP GREEN, including at content and creation of new content items various components of the Project the Ministerial level in English and Russian  Press releases prepared after the major  Consolidated presentations of the Project results 137

 Feeding the EaP GREEN resource library meetings and conferences  Availability of a range of professionally developed, up-to-date set of with publications and other outputs  Liaising with the National Focal Points and communications and advocacy materials produced under Project Components rolling-out information pages about the EaP  Wide dissemination of information about the Project activities and  Development of the EaP GREEN GREEN under the corporate website of each outputs brochures for the EU EaP Ministerial in participating countries’ Ministries of October 2016 and the EaP Panel on Economy and/or Environment Environment and Climate Change in  Updating and releasing regular updates on March 2017 major events and outputs  Organisation of a high level side event at the “Environment for Europe” Ministerial meeting, 9 June 2017, Batumi  Organisation of a presentation of the Project results at the EU EaP Ministerial dinner 17 October 2017, Luxembourg  Dissemination of work through the EU channels (EU4Development and the EU Neighbourhood web pages)  Assisting Project Partners in the application of the EaP GREEN brand and visual identity

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ANNEX 1. LIST OF NATIONAL FOCAL POINTS

Name Position Address Tel/Fax/E-mail ARMENIA Mr. Khachik HAKOBYAN Vice-Minister 3 Government Bld, +374 11 818 560 Republic Sq, [email protected]; Ministry of Nature Yerevan, 0010, [email protected] Protection Armenia

Ms. Aneta BABAYAN Head of Economic Policy 5 M. Mkrtchyan street +374 10 597 121 and Programs Division of Yerevan, Armenia [email protected] Economic Development Policy Department

Ministry of Economy

AZERBAIJAN Mr Elchin MAMMADOV Acting advisor of 100-A B.Aghayev +994 12 539 11 11 Environmental policy st.Az1073 Baku, [email protected] division Azerbaijan

Ministry of Ecology and Natural Resources

Mr Murad ABDULLAYEV 40, U. Hajibeyov str. +99412 493-88-67 Ministry of Economy and Government House, [email protected] Industry AZ1000 Baku Azerbaijan Ms Pervin KHASIYEVA 40, U. Hajibeyov str. +99412 493-88-67 Ministry of Economy and Government House, [email protected] Industry AZ1000 Baku Azerbaijan BELARUS Ms. Natallia ZHARKINA Head, Department for 10 Kollectornaya +375 17 200 68 33 Analytical Work, State street, [email protected] Policy and Regulation in 220048 Minsk, Belarus the Field of Environmental Protection

Ministry of Natural Resources and Environmental Protection

Mr. Yury ZYUZENKOV Head , Department 14 Bersona street, +375 17 200 76 86 of economic analysis 220020 Minks, Belarus [email protected] ; [email protected] Ministry of Economy

GEORGIA Ms. Nino TKHILAVA Head of Environmental 6 G. Gulua str., 0114 +995 322 727 250; Policy and International Tbilisi, Georgia [email protected] ; Relations Department [email protected]

Ministry of Environment cc: Tamar ALADASHVILI Protection [email protected]

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Name Position Address Tel/Fax/E-mail Ms. Nino LAZASHVILI Acting Head, 12, Chanturia str., +995 32 299 10 79 Sustainable Development 0108 Tbilisi, Georgia +995 599 69 97 57(mobile) Division [email protected]

Ministry of Economy and Sustainable Development MOLDOVA Ms. Maria NAGORNII Head of Analysis, 9, Cosmonauţilor str., +373 22 204 520 Monitoring and Policy MD-2005, Chisinau, [email protected] , Evaluation Department Moldova [email protected] Ministry of Environment

Mr. Silviu NEGHINA 1, Piata Marii Adunari Ministry of Economy Nationale, MD-2033 Chisinau, Moldova

UKRAINE Ms. Nataliia Head, Department for 35 Uritskogo, Kiev, +38 044 206 31 13 TROFYMENKO Ecological Policy and Ukraine +38 067 525 61 61 (mobile) Scientific Activity [email protected] Ministry of Ecology and Natural Resources

Ms. Liudmyla MUSINA Member of Public Council 12/2 Grushevskogo +38 044 256 71 37; at the Ministry of Str., Kiev, 01008 +38 044 577 17 22 Economic Development Ukraine +38 050 351 08 84 (mobile) and Trade of Ukraine [email protected]

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