Latvia

1
Latvias Participation in International Emissions
Trading

• The World Bank Assistance
• in
• Options Study and Advisory Service
• Kyoichi Shimazaki
• The World Bank
• Moscow, April 28, 2008

2
Latvia is on the fast track to IET

• In April 2006, Cabinet of Ministers adopted a
  concept of IET participation and earmarked 40
  million AAUs for potential sale.
• In November, 2007, The law on Latvias
  participation to IET ratified by parliament.
• Latvia intends to sell up to 10 million AAUs as
  pilot transactions.
• Necessary secondary legislations and
  implementation arrangement will be in place by
  mid 2008

3
The World Bank Assistance

• IET Options Study
• Completed in April 2007
• Published as ECSSD sustainable development
  working paper No. 47
• http//web.worldbank.org/WBSITE/EXTERNAL/COUNTRIE
  S/ECAEXT/EXTECAREGTOPENVIRONMENT/0,,contentMDK213
  35829pagePK34004173piPK34003707theSitePK5114
  33,00.html
• Advisory Service on the Design of Implementation
  Arrangement for IET Trading
• Launched in September 2007 and ongoing

4
Latvias Advantages as AAU Seller

• Low risk of non-delivery
• High credibility of greening implementation
• Variety of greening activities to meet AAU
  buyers preferences
• Solid legal framework to support GIS
• Strong political commitment
• Lower sovereign risk compared with other AAU
  seller countries

5
AAU Transaction with Latvia
6
Latvias Greening Programs

• 18 types of greening activities have been
  identified including
• - efficient use of biomass and geothermal
  energy,
• - biomass combined heat an power,
• - small hydro and wind power, solar energy,
• - promotion of biofuels, biogas utilization,
• - energy efficiency in generation and buildings,
  
• - DH rehabilitation,
• - capacity building for GIS, monitoring and
  verification
• - reduction of local pollutant,
• - climate change adaptation,
• - RD for low carbon technology, etc.

7
Project Eligibility Criteria

• Satisfy buyers needs for legitimate greening
• Meet legal requirement
• Confirm economic justification
• Financial feasibility
• Implementation readiness
• Verifiable benefits
• Support wider sustainable devlopment objectives

8
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9
World Bank Advisory Service

• Assist Ministry of Environment in developing and
  preparing
• government work plan for AAU transaction and
  Climate Change Financing Instrument (CCFI)
• TORs for discreet activities to support GIS
  implementation
• design options for CCFI financial management
• escrow arrangement
• verification and monitoring procedures
• Idea of AAU pricing , etc.

10
Contact in Latvia

• Mr. Valdis Bisters
• Director of Climate and Renewable Energy
  Department
• Ministry of Environment
• Peldu iela 25, LV-1494 Riga, Latvia
• Phone [phone]
• E-mail valdis.bisters_at_vidm.gov.lv
• Website www.vidm.gov.lv