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Table of Contents Table of Contents Table of Contents 3 List of Acronyms 5 List of Annexes 6 1 Situation analysis 6 1.1 Context and global significance: Environmental, policy and institutional 6 1.2 Threats, root causes 8 1.3 Long-term solution 11 1.4 Barriers to achieving the solution 13 1.4.1 Organisational and Policy barriers 13 1.4.2 Capacity barriers for implementation of EE measures 14 1.4.3 Project-level barriers 15 1.4.4 Barriers for national and local decision-making 16 1.5 Stakeholder and baseline analysis – Institutional and legal framework 18 1.5.1 Legal framework 18 1.5.2 Institutional framework 25 1.5.3 Programmes related to EE in buildings 27 2 Strategy 32 2.1 Project rationale and policy conformity 32 2.1.1 Project rationale 32 2.1.2 Project conformity with the UNDP Romania Country Programme: 35 2.1.3 Project conformity with Romanian priorities 35 2.2 Country ownership: Country eligibility and country drivenness 37 2.3 Design principles and strategic considerations 37 2.4 Project objective, outcomes and outputs/activities 39 2.4.1 Project objective 39 2.4.2 Description of Project Outcomes and Outputs/Activities 39 2.5 Key indicators, risks and assumptions 67 2.6 Financial modality 68 2.7 Cost-effectiveness 68 2.8 Sustainability 68 2.9 Replicability 69 3 Project Results Framework: 70 Total budget and work plan 77 4 Management Arrangements 82 4.1 The roles and responsibilities of the parties involved in managing the project 82 4.2 Results of capacity assessment of implementing partner 87 4.3 UNDP Support Services (if any) 93 4.4 Collaborative arrangements with related projects (if any) 93 4.5 Prior obligations and prerequisites 93 4.5.1 A brief description/summary of the inputs to be provided by all partners 93 4.6 Audit arrangements (required) 98 4.7 Agreement on intellectual property rights and use of logo on the project‟s deliverables 98 5 Monitoring Framework and Evaluation 98 6 Legal Context 105 7 Annexes 106 7.1 Annex I: Risk Analysis. 106 7.2 Annex II: Agreements 107 7.3 Annex III: Terms of Reference 107 7.3.1 Project Implementation Unit (Employees of the MDRT): 107 7.3.2 Technical Assistance Contracts 110 7.4 Annex IV: Capacity Assessment 119 7.5 Annex V: Special Clauses 120 3 7.6 Annex VI: Criteria for choosing counties and buildings 120 7.7 Annex VII: Characteristics of the building sector in Romania 126 7.7.1 Basic information on the building stock in Romania 126 7.7.2 Costs of building and refurbishing 128 7.7.3 Energy use in buildings 129 7.8 Annex VIII: Information on building materials in Romania 134 7.9 Annex IX: Description of stakeholders in the buildings sector in Romania 137 7.9.1 Governmental Authorities 137 7.9.2 Private individuals and associations 140 7.9.3 Private sector organizations 141 7.9.4 Non-governmental organizations 142 7.9.5 International organizations 144 7.10 Annex X: Energy Efficiency Standards in the Romanian Building Sector 146 7.11 Annex XI: Detail on the emissions reductions resulting from the project and value- added of GEF involvement in the project 149 7.12 Annex XII: References 160 Signature Page Error! Bookmark not defined. 4 List of Acronyms AAEC - The Association of Energy Auditors for Buildings AAU – Assigned Amount Unit ANRE – Romanian Energy Regulatory Authority ANRSC - National Authority for Regulating Public Communal Administration Services BEEN – Baltic Energy Efficiency Network for the Building Stock CHP – Combined Heat and Power DH – District Heating DHW – Domestic Hot Water DIY – Do-It-Yourself EE – Energy Efficiency EJ – Exajoule EPBD – EU Energy Performance in Buildings Directive ESCO – Energy Service Company GCal – Gigacalorie GD – Government Directive GHG – Greenhouse gas GO – Government Ordinance HFHI – Habitat for Humanity International kWh – Kilowatt-hour LPA – Local Public Authorities MDRT – Romania Ministry of Regional Development and Tourism Mt – Megatonne MWh – Megawatt hour TWh – Terawatt hour USD – United States Dollar 5 List of Annexes Annex I: Risk Analysis Annex II: Agreements Annex III: Terms of Reference Annex IV: Capacity Assessment Annex V: Special Clauses Annex VI: Criteria for choosing counties and buildings Annex VII: Characteristics of the building sector in Romania Annex VIII: Information on building materials in Romania Annex IX: Description of stakeholders in the buildings sector in Romania Annex X: Energy Efficiency Standards in the Romanian Building Sector Annex XI: Detail on the emissions reductions resulting from the project and value- added of GEF involvement in the project Annex XII: References 1 Situation analysis 1.1 Context and global significance: Environmental, policy and institutional The buildings sector is a major consumer of energy and a major contributor of net greenhouse gas (GHG) emissions world-wide. The Intergovernmental Panel on Climate Change (IPCC) estimates that the buildings sector will be responsible for between 11.1 and 14.3 billion tonnes of CO2eq in 2030 – out of a projected total of 40.4 billion tonnes. The IPCC also estimates that 29% of these emissions can be reduced cost-effectively.1 Within the transition economies of Europe, significant improvements are needed in the existing building stock to ensure the comfort and well-being of inhabitants and the sustainability of energy systems. Buildings account for 40% of total energy consumption in the EU.2 There are significant developments within the EU to address energy use in new buildings, but additional work must be done to address existing buildings and the needs of their occupants. Within this context, this project approach will: Improve capacity at the national level to implement energy efficiency measures in existing buildings to address fuel poverty3; 1 Levine et al 2007. 2 Council of the EU 2010 3 As a general definition, a household is said to be in fuel poverty if it is unable to afford to maintain an adequate level of warmth (See Househam 2010 for more detail). In contrast, energy poverty occurs when a household lacks physical access to sources of energy. In Romania, the problem is almost 6 Improve capacity at the local (municipal and county) level in at least two counties to implement energy efficiency measures in existing buildings to address fuel poverty;4 Within this approach, the project will have four Components, which are described in Table 1. Table 1: Project Components and Outcomes Components Outcomes Component 1: Improved Outcome 1: Romanian energy policy integrates fuel poverty issues policies to support energy and addresses EE needs in low-income communities efficiency in low-income communities Component 2: Improved Outcome 2: Supply of trained architects, building engineers, capacity at the local level to builders and auditors with EE experience expanded; municipalities reduce fuel consumption in low- in low-income regions have a better understanding of EE issues income communities and are able to support auditing and weatherization projects – including disseminating information for Do-It-Yourself projects Component 3: Direct reduction Outcome 3: Energy efficient buildings reconstructed (and of energy consumption through potentially new buildings constructed) with reduced fuel costs or community-based retrofits and using improved sustainable energy technologies in low-income market development communities Component 4: Information for Outcome 4: Data and information available for decision-makers for improved decision-making designing programmes to address fuel poverty The project directly contributes to the pursuit of achieving Millennium Goal Number 7: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources. The primary key Country Programme Outcome is related to “Capacity development for Romania to contribute to the promotion and protection of global and regional public goods”- the project will aid in addressing climate stability – which is included in point 3.11 of the Country Programme. The project also links directly with: Country Programme Outcome 2: Enhanced national capacity for promotion and protection of local, regional and global public goods such as biodiversity, climate stability, culture and practice of tolerance and peace, and development knowledge. And Country Programme Outcome 3: Capacity development for social inclusion, economic and political empowerment of vulnerable groups and for deepening democratic practice with special emphasis on initiatives with the potential to be adapted to the needs of Romanian official development assistance priority countries. The project will aid in reducing GHG emissions, addressing fuel poverty and developing economic activities related to locally-produced sustainable energy efficient building materials. entirely related to fuel poverty. Whilst there may be some issues related to access to energy, in Romania the issue is almost entirely related to the housing conditions (i.e. thermal efficiency and appropriate heating systems) and the ability to pay. 4 A full description of the system of governance related to the counties and cities can be found in Annex IX. In general, counties have a population of between 200,000 – 800,000 people, though the County of Bucharest has over 1.9 million inhabitants. 7 1.2 Threats, root causes Buildings in Romania are responsible for 36% of final energy consumption5 and approximately 56.1 million tonnes of national CO2eq emissions – out of a total of 152.3 million 6 tCO2eq emissions in 2007. The building sector in Romania is dominated by residential buildings – comprising 95.4% of all buildings. Existing residential buildings are generally old (over half of residential buildings were built before 1970). These buildings have poor thermal properties – with average annual heating requirements of between 137-220 kWh/m2.7 However, pilot projects throughout Romania have shown that it is very possible to reduce these heating needs by at least 40- 50% from these levels. This is consistent with results in other countries as well as with large blocks of flats.8 They are also mostly in need of significant repairs (See Annex VII for more information on the building stock).
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