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1 Market Analysis of Financial Intruments for Faciliation of Eco-Technologies This Study Was Developed by Fast Training Consulti Market analysis of financial intruments for faciliation 1 of eco-technologies This study was developed by Fast Training Consulting LTD in the framework of the GEF-UNDP project “Strengthening capacities to undertake the environ- mental fiscal reform to meet national and global priorities”, implemented by the United Nations Development Programme (UNDP) and the Ministry of En- vironment of the Republic of Moldova, and funded by the Global Environmen- tal Facility (GEF). Opinions expressed in this study are those of the authors and do not represent the official position of the financing organization. Contributors to the study: • Ec. Alina JIJIE - methodology coordinator • Fulga TURCU • Nicolae PEIU • Bogdan Ion POTLOGI • PhD. Andreea IANCU • Dr. Elena GRIGORAŞ • Ec. Cristina NĂSTASĂ • Cristina SÎRBU Printed at: Tipografia Centrală Circulation: 200 copies © UNDP/GEF 2014 2 Market analysis of financial intruments for faciliation of eco-technologies CONTENT INTRODUCTION .................................................................................................................................................... 6 I. NATIONAL CONTEXT ....................................................................................................................................... 7 I.1. Key environment indicators, research and development indicators ....................................... 7 I.1.1 Environment indicators ..................................................................................................................... 7 I.1.2 Indicators for research and development................................................................................. 10 I.2 Relevant strategies, plans and legislation for eco-technology .................................................12 I.2.1 Relevant strategies and plans .......................................................................................................12 I.2.2 Relevant legislation ..........................................................................................................................15 I.3. Institutions and stakeholders ..............................................................................................................19 I.4 ”In use” Eco-technologies .......................................................................................................................22 I.4.1 Eco-technologies solutions ”in use” .............................................................................................22 I.4.2 Availability of the eco-technologies on the Moldavian market .......................................26 I.4.3 The Potential and the interest for using eco-technologies ................................................26 II. FINANCIAL MECHANISMS .........................................................................................................................30 II.1 National funds ...........................................................................................................................................30 II. 2 Foreign Financial Support ....................................................................................................................33 II.3 Funds used for the purchase of eco-technologies ........................................................................43 III. GREEN PUBLIC PROCUREMENT .............................................................................................................46 IV. CHALLENGES AND BARRIERS IN THE IMPLEMENTATION OF ECO-TECHNOLOGY .........51 IV.1 Education and research barriers ........................................................................................................51 IV.2 Barriers in the implementation of eco-technology......................................................................52 IV.3 Strategic documents. Legislation. Institutional barriers ...........................................................54 IV.4 Economic and financial barriers ........................................................................................................56 IV.5 Information barriers ...............................................................................................................................57 V. GOOD PRACTICE EXAMPLES ....................................................................................................................58 V.1 European Strategies, leader states and similar states .................................................................58 V.2 European Strategies, leader states and similar states .................................................................64 V.3 Success projects. Platforms and networks .......................................................................................69 VI. CONCLUSIONS AND RECOMMENDATIONS ......................................................................................72 VI.1 Conclusions ...............................................................................................................................................72 VI.2 Recommendations ..................................................................................................................................78 VI.2.1 Education and research ................................................................................................................78 VI.2.2 Recommendations for increasing the availability of eco-technology solutions.......78 VI.2.3 Recommendations for development of eco-innovation market....................................79 VI.2.4 Incentives for using the eco-technology................................................................................ 79 VI.2.5 Environmental strategies and plans..........................................................................................81 VI.2.6 Recommendations for the improvement of the environmental legal framework ..82 VI.2.7 Recommendations for the improvement of financial mechanisms............................. 84 VI.2.8 Recommendations form the good practice exaes..............................................................86 VI.2.9 Recommendations for green public procurement.............................................................88 VI.2.10 Recommendations for promoting eco-technologies .....................................................88 BIBLIOGRAPHY .....................................................................................................................................................96 Market analysis of financial intruments for faciliation 3 of eco-technologies FIGURES Figure 1. Energy imports, net (% of energy use)........................................................................................................7 Figure 2. The structure of the final consumption of energy resources and fuel on the main activity sectors of the national economy ................................................................................................8 Figure 3. The Share of total primary energy supply in 2011 .........................................................................8 Figure 4. Alternative and nuclear energy (% of total energy use) in Moldova and in the EU .................8 Figure 5. CO2 emissions (kt) in the Republic of Moldova ..............................................................................9 Figure 6. Research and development expenditure in Moldova and EU (% of GDP)...............................10 Figure 7. Structure of expenditures in scientific domain..............................................................................10 Figure 8. a) Researchers in R&D (per million people) in Moldova...............................................................11 Figure 8. b) Researchers in R&D (per million people) in Moldova and EU................................................11 Figure 9. Structure of researchers on domain (%).........................................................................................11 Figure 10. Total biomass energy potential of the Republic of Moldova....................................................24 Figure 11. Irradiation and solar electricity potential/ Wind energy potential..........................................24 Figure 12. Use of eco-technology......................................................................................................................25 Figure 13. In use eco-technologies...................................................................................................................25 Figure 14. Degree of satisfaction of eco-technology implementation......................................................26 Figure 15. Opinion about the eco-technology market (%)..........................................................................27 Figure 16. Intention of eco-technology purchase – eco-technology users (%).................................29 Figure 17. Intention of eco-technology purchase in the next year – eco-technology non-users..29 Figure 18. Breakdown of contracted assistance by sectors in 2012, % of the total..........................42 Figure 19. Strategic priorities for external assistance in 2012 based on the 2011-2014 Government Activity Programme (GAP)...............................................................................42 Figure 20. Funds used for the purchase of eco-technologies...............................................................43 Figure 21. Sources of funding......................................................................................................................44
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