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Table of Contents (Indexed)

Subject Page 1. Situation Analysis 2. Strategy 3. Project Results Framework 4. Total Budget and Workplan 5. Management Arrangements 6. Monitoring and Evaluation Framework 7. Legal Context Appendix A: Technical components of the project proposal Appendix B: Project visibility and outreach Appendix C: Terms of Reference Appendix D: Endorsement letter from the Ministry of Environment Appendix E: Brief report on the stocktaking and stakeholder consultation Appendix F: Overview of the Different Climate Change Projects in Lebanon Appendix G: Description of UNDP Country Office Support Services

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Acronyms BUR Biennial Update Reports CAS Central Administration of Statistics CCCU Climate Change Coordinating Unit CDM Clean Development Mechanism CDR Council for Development and Reconstruction COP 15 15th Conference of the Parties DNA Designated National Authority EE Energy Efficiency EDL Electricité Du Liban GEF Global Environment Facility GHG Greenhouse Gases GSC Global Support Component GSU Global Support Unit INC Initial National Communication LCEC Lebanese Center for Energy Conservation LCPC Lebanese Cleaner Production Center LECB Low Emission Capacity Building LED Low Emission Development LEDC Low-Emission Development Concept LEDS Low-Emissions Development Strategy MOE Ministry of Environment MOF Ministry of Finance MOEW Ministry of Energy and Water MOI Ministry of Industry MOIM Ministry of Interior and Municipalities MOPW&T Ministry of Public Works and Transport MRV Measurement, Reporting and Verification NAMAs Nationally Appropriate Mitigation Actions NCs National Communications NCE National Council for the Environment NEEAP National Energy Efficiency Action Plan for Lebanon NEEREA National Energy Efficiency and Renewable Energy Action NGO Non-Government Organizations QA/QC Quality Assurance / Quality Control RE Renewable Energy SNC Second National Communication SPASI Strengthening the Permitting and Auditing System for Industries SWOT Strength, Weaknesses, Opportunities and Threats TNA Technology Needs Assessment TNC Third National Communication UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change UNIDO United Nations Industrial Development Organization

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1. SITUATION ANALYSIS Global economic development has dramatically increased demand for the energy-intensive sectors driving this global growth, which has resulted in substantial increases in greenhouse gases (GHGs). It is recognized that a transformation is required in production and consumption processes to achieve green low-emission, climate-resilient development in what will become an increasingly carbon-constrained world. Lebanon ratified the United Framework Convention on Climate Change (UNFCCC) on 15 December 1994 and submitted its Initial National Communication in November 1999 and its Second National Communication (SNC) in March 2011. Lebanon’s total GHG emissions for the base year 2000 were 18.5 MtCO2e, an increase of 2.77% per annum from the 1994 baseline. The country’s GHG inventory breakdown in the year 2000 in the SNC revealed that energy production is the main source of GHG emissions, accounting for 53.45% of the total national emissions. This is followed by the transport sector (21.41%), industrial processes (9.62%) and waste (9.4%). Agriculture and land use change and forestry contributed only 6.12% of the total national emissions. The SNC also provided an analysis of the measures that ought to be taken to reduce GHG emissions and enhance carbon sinks and outlined the constraints, gaps and related financial, technical and capacity needs. UNDP’s support for the execution of the Third National Communication (TNC), which was launched in September 2012 will help the Ministry of Environment (MOE) acquire more thorough understanding of the GHG emission variables that will be needed as an input for the design of mitigation policies. The TNC will build on the results of the first two National Communications and be closely linked to ongoing mitigation projects supported by UNDP and others, including this Low Emission Capacity Building (LECB) project. Policy context In December 2009 during the 15th session of the Conference of the Parties (COP 15) to the UNFCCC, Lebanon made a non-binding commitment to increase its renewable energy consumption to 12% by 2020; a commitment that that the Lebanese government has introduced to support the development of the renewable energy industry from a technical, capacity building and financial perspective. The Policy Paper for the Electricity Sector, which was developed by the Ministry of Energy and Water (MOEW) in June 2010, establishes the framework for the electricity sector in Lebanon, which includes ten initiatives to cover the sector’s infrastructure, supply, demand and legal aspects. On the supply side, the policy calls to for additional installed capacity that will include both conventional energy from primarily natural gas, and renewable energy from wind, solar and waste to energy. Lebanon also has 19 comprehensive policies, activities, projects and programmes that have either been implemented or are ongoing and are designed to support the energy efficiency, renewable energy and emission reduction sectors. There are currently eight new planned projects that are designed to support and build on these previous initiatives and programmes, the most relevant of which are briefly mentioned below. Several of the implemented and ongoing initiatives were supported and/or funded by the United Nations Development Programme (UNDP).

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The National Energy Efficiency Action Plan for Lebanon (NEEAP) further describes 14 energy efficiency and renewable energy initiatives for the period 2011-2015, and fulfills the requirement of Strategic Initiative 6 of the Policy Paper for the Electricity Sector. The NEEAP initiatives are designed to promote, support and raise awareness on renewable energy and energy efficiency applications in Lebanon. The National Energy Efficiency and Renewable Energy Action (NEEREA) was established to support the financing of energy efficiency and renewable energy projects in Lebanon, through Lebanese commercial banks. Funding of initiatives falling under the NEEREA initiative is through subsidized loans targeting Small and Medium Enterprises (SMEs) in Lebanon. Institutional context The Ministry of Environment (MOE) was established after the 1992 Rio Earth Summit (Law 216/1993) and its mandate and organizational structure were amended after the 2002 Johannesburg Summit (by Law 690/2005 and Decree 2275/2009 respectively) to also include coordination of sustainable development issues. It is the main governmental body concerned with environmental issues in the country. The Ministry of Environment is the national entity responsible for the national environmental policy and as the National Focal Point to the United Nations Framework Convention on Climate Change. The Lebanese Institutional and Policy Framework specifies, in Law 690/2005, the inclusion of climate change into the principal mandate of the MOE and also empowers the Ministry to preserve the environment. The Clean Development Mechanism (CDM) committee was established in 2006 pursuant to the accession to the Kyoto Protocol as per law 738 on the 15th of May 2006. In 2007, the Presidency of Council of Ministers granted approval to MOE to establish the Designated National Authority (DNA) that currently has 13 projects in the country’s CDM portfolio, including two which were developed as Programmatic CDM. The MOE is the focal point for the UNFCCC, the CDM DNA, and the National Communication (including the mitigation analysis and vulnerability & adaptation assessments). The MOEW is another key institutional player as it develops plan and strategies that are relevant to the water and energy sectors and implements energy efficiency and renewable energy related projects. On March 28, 2012, the Council of Ministers issued a Decree (# 8157/2012) establishing the National Council for the Environment (NCE). The NCE is made of 14 members representing 7 ministries, headed by the Ministry of Environment. The ministerial members include the ministries of Finance, Interior and Municipalities, Agriculture, Public Works and Transport, Energy and Water, and Industry. The remaining 7 members are non-public entities and include Order of Physicians, Order of Engineers and Architects, The Bar Association, Association of Banks, Association of Insurance Companies, representative of NGOs, representative of the academic sector. The NCE will be used as a platform through which environmental issues, including climate change, will be coordinated at the national level. The NCE will also be supported by another climate initiative designed and funded by UNDP through a grant from the Government of Spain which specifically aims at climate change coordination among national stakeholders. The project will also identify national and international climate financing and will seek to raise awareness and capacity on the topic.

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Lebanon’s private sector is generally informed on the need to reduce its GHG footprint with the growth of the energy efficiency industry. Twelve companies have reported their Carbon Management Strategy to the public, with emissions totalling just over 8,000 tCO2e. However, Lebanon has significant challenges to overcome to address barriers that are hindering the government’s implementation of renewable energy and energy efficiency projects, as well as the upgrade of the country’s poor energy infrastructure. Bureaucracy and lack of awareness in some government institutions are, and will continue to, hinder the voluntary and later compliance monitoring and reporting of emissions from public and private sources. Related activities are being undertaken by the Lebanese Cleaner Production Center (LCPC), which was established in 2003 with the support of United Nations Industrial Development Organization (UNIDO), the Austrian government, the European Commission–LIFE Programme (EC-LIFE), and the Lebanese Ministry of Environment. The role of the LCPC is to strengthen environmental attributes ascribed to the products that Lebanese industrialists are exporting Challenges As noted above, Lebanon has a series of extensive programmes, policies, projects and initiatives that are designed to support the development of the GHG emission quantification and reporting as well as develop the energy efficiency and renewable energy sectors. Stakeholder consultations, which were conducted as part of the preparatory phase of project design, included meetings and interviews with representatives from several high GHG emitting sectors. A thorough desk review preceded the consultations. One key aspect of the consultations was to identify the weaknesses in the Lebanese institutional framework that will hinder the development of a national project. It was revealed that the weaknesses primarily lie in information sharing; technology realization and adaptation; and lack of resources, awareness and interaction that has resulted in the underutilization of these initiatives. (For further elaboration, see Appendix E.) Capacity building and resource allocation are required to develop a systematic GHG emissions reporting process, which will be much needed for both the private and public sectors to comply with the Environmental Compliance of Establishments Decree (8471/2012). The Decree was published in the official journal of the Lebanese Republic on the 19th of July 2012 and comprises of 11 articles that define the law and responsibilities of the private and public sectors in compliance to the national emission standards by conducting environmental audits and reporting them to MOE. One potential tool might be a GHG inventory training manual that was developed in 2002 as part of the Technology Needs Assessment (TNA). The TNA report also identified and assessed appropriate mitigation technologies for the Lebanese context. Similarly, Lebanon faces barriers in identifying Nationally Appropriate Mitigation Actions (NAMAs) and establishing Low Emission Development Strategies (LEDS), as well as designing the associated Measurement, Reporting and Verification (MRV) process. NAMA identification and development of LEDS will require the cooperation of the relevant ministries and the coordination of the programmes and initiatives provide by the government to reduce GHG emissions via the implementation of energy efficiency and renewable energy projects. The collaboration of the private sector, especially the high emitters such as the cement, chemical and paper industries, will also be required. A systematic MRV process will facilitate conformity with the Environmental Compliance of Establishments Decree, NAMA implementation and the submission of the Biennial Update Reports (BUR) required by the Durban climate change deal reached in December 2011.

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2. STRATEGY The Low Emission Capacity Building (LECB) project rationale is to build on and/or complement the existing and upcoming Lebanese government-led initiatives and develop the required capacities to achieve low-emission development. The project will to improve Lebanon’s relevant infrastructure, institutional capacities, information sharing and coordination processes through the development of a GHG emission national inventory system, identification and development of NAMAs, and the design of the associated MRV system to support the identified NAMAs. The project scope will encompass Lebanon’s large GHG emitters, but also takes into consideration the ease and realistic implementation of the NAMAs taking local Lebanese challenges into consideration. The sectors causing the majority of Lebanon’s GHG emissions are:

- Energy Production, which includes the use of heavy fuel oil for power generation, gasoline for transportation purposes, and diesel fuel used by the manufacturing and construction sectors for powering generators when EDL’s electricity supply is unavailable.

- Industrial Processes: this category includes process emissions without energy usage which is accounted for in the first category above. The focus will be on the cement industry, but the chemical and paper industries will also be considered, and;

- Waste, where the emissions are from solid waste disposal facilities / sites. Area 1: Public Sector Capacity Building on GHG Inventory systems, NAMAs, LEDS, and MRV Outcome 1: Robust national system for preparation of GHG emission inventories has been

established at a national level. Outcome 2: Up to 8 NAMAs identified, 5 NAMA concepts formulated and 2 detailed NAMAs

developed in the energy, waste and industrial sectors within the context of national development priorities.

Outcome 3: MRV systems have been designed to support implementation and evaluation of identified NAMAs.

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3. PROJECT RESULTS FRAMEWORK This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: Climate Change considerations mainstreamed in national priorities

Country Programme Outcome Indicators: Market transformation towards more sustainable energy use observed

Primary applicable Key Environment and Sustainable Development Key Result Area: Catalysing environmental finance

Indicator Baseline Targets

End of Project Source of verification

Project Objective is capacity building on GHG inventory, NAMAS, LEDS and MRV systems among the relevant stakeholders

National GHG emission inventory system documented;

Up to 5 NAMA concept notes

Up to 2 detailed NAMAs;

MRV system described.

Mitigation measures limited to general description under the initial and second national communication;

Environmental Compliance Decree;

Current low carbon and climate change related initiatives / projects.

Implementation of an awareness campaign and capacity building among the relevant stakeholders on GHG inventory, NAMAs, LEDS and MRV concepts / systems;

GHG emission inventory system;

At least 8 NAMAs identified

Up to 5 NAMA concepts formulated and 2 developed in detail;

Design an MRV system that complies with the NAMA types adopted;

Framework for a low emission development strategy

GHG National Inventory System manual of procedures

NAMA concepts and MRV plans produced;

Coordination processes established for NAMA identification and MRV system adoption.

Outcome 1 Robust national system for preparation of GHG emission inventories has been established at national level

Ministerial GHG inventory focal point nominations

Capacity assessments of the key stakeholders

National manual of procedures in place for information and data sharing among the relevant ministries and authorities.

Number of support tools for GHG emission information and data collection

Number of training workshops on the national GHG inventory systems,

Stakeholders identified as part of the TNC project activities

No capacity assessments have been conducted

Data collection is on ad hoc basis for NC reporting.

Government institutional collaboration is generally unstructured and based on informal processes.

No enforcement of laws for information and data sharing;

No unified data collection

Focal points nominated for all key stakeholders identified

Key stakeholders capacity assessment completed

Procedures for data sharing among government ministries and authorities are developed and validated;

Appointment of focal points in each of the relevant institutions / authorities;

Review/amendment of existing legislation to ensure

List of stakeholders codified and focal points nominated

Capacity building needs defined

Institutional arrangements described and codified (e.g., MOUs, etc)

Project documentation

National manual of procedures

Project documentations (procedure reports and modified forms)

Workshop literature and

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which includes training the trainers.

strategy in place.

Lack of utilization of existing tools

Limited – select few normally attend seminars held by MOE, MOEW and MOI

sustainability of inventory system

Consistent strategy / approach for GHG emission reduction data sharing is established with firm and set timeframes.

Existing forms modified to reflect the relevant data required

New forms are produced

Train the trainers

Training manual updated as manual of procedures and stakeholders familiarised

presentations

List of attendees and evaluation forms

Workshop report including finding and recommendations

Pre and post workshop questionnaires

Outcome 2 Up to 8 NAMAs identified, 5 NAMA concepts formulated and 2 detailed NAMAs developed in the energy, waste and industrial sectors within the context of national development priorities

Institutional arrangements and process planning created

NAMA scope and objectives and prioritization criteria described

Up to 5 NAMA concept notes prepared and endorsed by government

2 detailed NAMA proposals prepared

Financing plan developed

No institutional arrangements and process planning exists

Projects applying to benefit from the government’s energy efficiency and renewable energy initiatives

DNA’s CDM project portfolio.

Mitigation options identified as part of national communication

No NAMA concept notes have been developed

No NAMA proposals have been developed

Limited to existing financial initiatives

Set up of the NAMA institutional arrangement and process.

At least 8 NAMAs identified

Up to 5 concept notes prepared

At least 2 detailed NAMA proposals, including investment plans

Framework for a low emission development strategy

Documentation of NAMA institutional arrangement and process planning.

NAMA identification report and sectoral analysis

NAMA Concept notes

NAMA proposals

NAMA financial analysis

Framework strategy for low emission development drafted

Outcome 3 MRV systems have been created to support implementation and evaluation of identified NAMAs

MRV system description

MRV process and tools are communicated and introduced to stakeholders

MRV limited to CDM projects

Not available for NAMA standards

Limited – select few normally attend seminars held by MOE, MOEW and MOI

MRV process designed reflecting NAMA type

Train the trainers

Relevant stakeholders introduced and familiarized with the national MRV process and tools.

MRV process document

Workshop literature and presentations

List of attendees and evaluation forms

Workshop report including finding and recommendations

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4. TOTAL BUDGET AND WORK PLAN

Award ID: 00066012 Project ID: 00082292

Award Title: Low Emission Capacity Building Project

Business Unit: LBN10

Project Title: Lebanon’s Context-assessment and Proposal Support for the Low Emission Capacity Building Programme

PIMS no._______ 5068

Implementing Partner (Executing Agency) Ministry of Environment

Outcome/Atlas Activity[1]

Responsible Party/

Fund ID Donor Name

Atlas Budgetary Account Code

ATLAS Budget Description Amount Year 1 (USD)

Amount Year 2 (USD)

Amount Year 3 (USD)

Total (USD)

Implementing Agent

OUTCOME 1: Robust national

system for preparation of GHG emission

inventories has been stablished

at a national level

UNDP/MoE

30079

EU

71200 International Consultants $10,000 $0 $0 $10,000

71300 Local Consultants $20,000 $10,000 $0 $30,000

72100 Contractual services - Companies $0 $20,000 $0 $20,000

71600 Travel 5000 $0 $0 $5,000

74200 Audio Visual & Print Prod Costs $0 $0 $10,000 $10,000

-- Programmable Total $35,000 $30,000 $10,000 $75,000

73500 ISS $700 $600 $200 $1500

75100 GMS (7%) $2,499 $2,142 $714 $5,355

Total Outcome 1 $38,199 $32,100 $10,700 $80,250

OUTCOME 2: Up to 8 NAMAs

identified, 5 NAMA concepts formulated and

2 detailed NAMAs

developed in the energy, waste and industrial

sectors in the context of national

development priorities

UNDP/MoE 30079

EU

71200 International Consultants $30,000 $30,000 $0 $60,000

71300 Local Consultants $30,000 $30,000 $30,000 $90,000

72100 Contractual services - Companies $0 $10,000 $0 $10,000

71600 Travel $5000 $5000 $0 $10,000

74200 Audio Visual & Print Prod Costs $0 $0 $10,000 $10,000

-- Programmable Total $ 65,000 $75,000 $40,000 $180,000

73500 ISS $1,300 $1,500 $800 $3,600

75100 GMS (7%) $4,641 $5,355 $2,856 $12,852

Total Outcome 2 $70,941 $81,855 $43,656 $196,452

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WORKPLAN Year 1 Year 2 Year 3

Outcomes/Activities Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

Implementation arrangements and project inception:

1. Review of the Management Arrangement segment of the Project Document

2. Identify and contract the Project Office Staff

4. Project Inception workshop

3. Prepare the tenders and contract the technical teams

5. Conclude implementation arrangements

Outcome 1: Robust national systems for preparation of GHG emission inventories have been established at a national level

Output 1.1: Key stakeholders identified

Output 1.2: Capacity of key stakeholders assessed

Output 1.3: GHG Inventory system documented and developed

Output 1.4: Training, communication and incentives undertaken

Outcome 2: Up to 8 NAMAs identified, 5 NAMA concepts formulated and 2 detailed NAMAs developed in the energy, waste and industrial sectors within the context of national development priorities.

Output 2.1: Institutional arrangements and process planning for NAMA and LEDS development agreed

Output 2.2: NAMA longlist in the energy, waste and industry sectors identified and prioritised (at least 8 potential NAMAs identified)

Output 2.3: NAMA concept notes prepared and endorsed for up to 5 NAMAs

Output 2.4: Detailed NAMA proposals prepared for 2 NAMAs, including sources of financing

Output 2.5: Framework for LEDS drafted

Output 3: MRV System designed to support implementation and evaluation of identified NAMAs

Output 3.1: MRV process developed

Output 3.2: MRV system communicated

Project Management, including M&E

1. Regular monitoring

2. Communicate project status with donors and UNDP QPR QPR QPR QPR QPR QPR QPR QPR QPR QPR QPR FR

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5. MANAGEMENT ARRANGEMENTS The Project will be executed under Support to NIM National Implementation Modality (NIM), whereby UNDP will act as the executing agency and the Ministry of the Environment acts as the implementing partner. A letter of agreement will be signed with the Ministry of the Environment and UNDP detailing the collaboration arrangements between the two partners and defining the exact roles and responsibilities of each agency. Figure 1 below illustrates the management arrangements for implementing the project.

The roles of the key parties are: Project Board or Project Steering Committee: consists of the Ministry of Environment, UNDP and the Council for Development and Reconstruction. The project board will be responsible for making management decisions for the project by consensus, when guidance is required by the Project Manager (or Technical Coordinator), including recommendations for UNDP/Implementing Partner approval of project plans and revisions. The Project Board decisions should be made in accordance to standards that shall ensure management for development results, best value money, fairness, integrity, transparency and effective international competition. In case a consensus cannot be reached within the Board, the final decision shall rest with the UNDP Programme Manager. The Project Board will meet at least once a year or more as needed by the project. The Project Board will also provide expertise and

Council for Development and

Reconstruction

Ministry of Environment (Project National Focal

Point)

UNDP

Technical Team 1

GHG Inventory system

Technical Team 2 NAMAs

Project Management

Technical Team 3 MRV

National Council for Environment

14 institutions including: - Ministry of Energy and Water - Ministry of Finance

- IDAL

- Ministry of Public Works and Transport

- Ministry of Industry

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ensure the various studies carried out and recommendations are in line with national priorities and are well coordinated with other on-going activities within the sector. The Ministry of Environment will serve as the National Implementing Agency for this project. The Ministry will provide full support to the project through the department of Air Quality and will facilitate coordination of project activities with other government institutions and decision makers. MoE will operate as the main interface at the country level with the government and private sector entities. Partnerships between key partners will be facilitated and new partnerships encouraged. The ministry will nominate a national focal point who will supervise and provide overall management support to the project. The LECB project will run in parallel and full coordination with Climate Change Coordination Unit (CCCU) and Third National Communication projects that are currently implemented by MOE. The three projects will make up the platform for a national climate change unit.

UNDP Country Office: UNDP will monitor the progress towards intended results, and will ensure high-quality managerial, technical and financial implementation of the project, and will be responsible for monitoring and ensuring proper use of administrated funds to the assigned activities, timely reporting of implementation progress as well as undertaking of mandatory and non-mandatory evaluations for each of their respective components. Furthermore, the procurement of goods and services and the recruitment of personnel shall be provided in accordance with UNDP guidelines, procedures and regulations. The UNDP country office will provide, at the request of the designated institution, the following support services, covered by ISS charges/additional charges, for the activities of the programme/project:

i. Payments, disbursements and other financial transactions ii. Recruitment of staff, project personnel, and consultants iii. Procurement of services and equipment, including disposal iv. Organization of training activities, conferences, and workshops, including

fellowships v. Travel including visa requests, ticketing, and travel arrangements vi. Shipment, custom clearance, vehicle registration, and accreditation vii. Security management service and Malicious Acts Insurance Policy viii. External access to ATLAS for project managers and other staff, Payroll

management services and Medical Clearance Services for all staff The UNDP country office will also provide the following general oversight and management services for the activities of the project which include the following:

i. General oversight and monitoring, including participation in project reviews ii. Briefing and de-briefing of project staff and consultants iii. Resource management and reporting iv. Thematic and technical backstopping

The UNDP Environment and Energy (E&E) Programme works closely with the Government of Lebanon to provide policy support for more effective environment and energy management. The programme also works with local communities and civil sector organizations to improve livelihoods through improved natural resource management. The aim is to move Lebanon towards achieving the Millennium Development Goals (MDGs), more specifically Goal 7

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on environmental sustainability. The programme is funded by several donors and also collaborates with the private sector. National Council for Environment: (14 entities) includes MOEW, MOF, MOIM, MOA, MOPW&T, MOI, the association of banks, bar association, insurance companies, order of physicians, order of engineers and architects, NGO representatives and academic sector, in addition to IDAL and CDR. The National Council for Environment will serve as a stakeholder consultation group for the project and will assist in the coordination of activities in this sector. Project Management: A Project Manager (PM) will be responsible for the overall coordination of the project including operational planning, technical supervision, administrative and financial management and the adaptive management of the project based on inputs from the project M&E plan. The Project Manager will be responsible for overseeing the day-to-day implementation of project activities sub-contracted to specialists and other institutions. The PM will be assisted by staff from other on-going climate change projects at the Ministry of Environment, particularly those from the TNC and CCCU. Linkages will be sought to other projects with complementary activities, such as the recently approved GEF V small-scale decentralized RE power generation which has an explicit NAMA output, and various EE and RE programmes. The PM will have the responsibility for, among others: (i) managing and executing the project; (ii) preparing TORs for the technical teams; (iii) supervising the work of the technical team; (iv) reviewing the work prepared by the technical and provide guidance; (v) coordinating the management of financial resources and procurement; (vi) reporting on the application of resources and results achieved; (vii) preparing management/progress reports to the Donor(s) and UNDP; (viii) promoting institutional linkages; and (ix) monitoring and evaluation, and disseminating project results. Technical Teams will be responsible for the actual implementation of the project that will deliver the activities illustrated in Figure 2 below. The training and education component is emphasized on throughout the project implementation phase. This is primarily to strengthen the weakness identified during the stakeholders’ consultations with respect to the lack of awareness on GHG inventories, EE and RE initiatives and available expertise. The NAMA and MRV technical teams will be primarily responsible for identifying and formulating the NAMA and MRV processes to be adopted.

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Figure 2: Project activities The various activities undertaken on the country level that includes the GEF 5 decentralized PV project, the various EE and RE programmes as part of the LCEC and CEDRO projects, EU StREG programme at the Ministry of Environment, the newly approved Climate Change Coordination Unit (CCCU) which will work closely with the NCE and provide a platform for the exchange of information from all these projects the TNC and this LECB project, will all comprise the major segments of the Low Emission Development Strategy. The structure and linkages between these different projects is presented in Appendix F.

Stakeholder Consultations This section outlines the sectors and stakeholders that were consulted and the validation process adopted, illustrated in table 1 below. Please see Appendix E for more information on the process. A methodical approach was adopted to identify the stakeholders to be contacted and consulted. The rationale was to tackle both the private and the public sectors especially those with the greatest impact on Lebanon’s GHG footprint. Other related outcomes and activities were thoroughly considered in the identification of the stakeholders, which are primarily related to:

i) Previous implementation of energy efficiency / environmental related projects or

mechanisms;

ii) Assessment of ease or bureaucracy in the decision making;

iii) Practicality in implementing an MRV system and the identified stakeholder importance

on the overall MRV system to be developed and;

iv) The impact of the identified stakeholder from a Sustainable development perspective.

Education, Train & Support Program

Low Emission Development

Strategy

Nationally Appropriate

Mitigation Actions

Monitoring, Reporting & Verification

National GHG Inventory System

Communicate & Elaborate

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Stakeholders consulted Reasons for inclusion Role in the context-assessment process

Ministry of Energy & Water

Significant amount of GHG emissions are emitted from the Electricite Du Liban’s (EDL) power generation activities as well as the importing of fuels and the operations of the independent power producers (diesel generators). MOEW is leading the development and operation of a number of initiatives and projects that are designed to reduce the country’s GHG emissions and promote the restructuring of the energy sector, which includes further development to the Energy Efficiency and Renewable Energy sectors.

Consultation & baseline data provider. Source for energy national plans, policies and initiatives.

Ministry of Industry Regulatory role with the Lebanese industrialists; a sector that has contributed to just under 25% to Lebanon’s GHG emissions. Leading the capacity building for industrialists in preparation for the carbon footprint ISO standard as well as complying with the Environmental Compliance of Establishments Decree.

Consultation & baseline data provider. Source for industrial plans, policies and initiatives.

Central Administration of Statistics (CAS)

Principle administration that collects, processes, provides and disseminates social and economic statistics at the national level. Government units and private sector institutions are obliged to report their respective data and respond to survey’s conducted by CAS.

Consultation & provider of statistical data

Lebanese Custom Collecting, reporting and ensuring that all imported and in-country goods are in compliance with Lebanese laws and regulations. Almost all of Lebanon’s machinery and equipment that utilizes fossil fuel for energy generation is imported and is checked, cleared, recorded and reported by the Lebanese Customs.

Consultation & data provider.

Industrial Sector: Manufacturing Companies (2)

The cooperation of the industrial sector is important for NAMA identification, MRV implementation and complying with the Environmental Compliance of Establishments Decree. The industrial sector in Lebanon contributed to approximately 25% of the country’s GHG emissions.

Consultation & data provider

Tourism Sector: Hotels & Resorts

The tourism sector is one of the leading economic drivers of the Lebanese economy. Engaging the sector in NAMA identification and MRV implementation will have solid outcomes to the country’s financial, employment, environmental, GHG emission reduction and sustainable development.

Consultation & data provider

Retail Sector: Significant dependence on power usage and Consultation & data provider

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Stakeholders consulted Reasons for inclusion Role in the context-assessment process

Shopping Malls generation to compensate EDL’s shortfalls. Substantial beneficiary of MOEW and MOE’s initiatives for the implementation of energy efficiency projects.

Financial Audit: Auditing Firms

The lead role in conveying and supporting with financial reporting to comply with new and existing laws and policies. Important to the implementation of an MRV process.

Consultation & data provider

Table 1: Stakeholder consultations validation 6. MONITORING AND EVALUATION FRAMEWORK The project will be monitored through the following monitoring & evaluation (M&E) activities. Project inception: A Project Inception Workshop will be held within the first 2 months of project start-up with those with assigned roles in the project organization structure, the UNDP Energy & Environment team and, where appropriate/feasible, regional technical policy and programme advisors, as well as other stakeholders. The Inception Workshop is crucial for building ownership regarding the project results and to prepare the Year 1 annual work plan. The Inception Workshop will address a number of key issues including:

a) Assist all partners to fully understand and take ownership of the project. Discuss the roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. The Terms of Reference for project staff can be discussed again as needed.

b) Based on the Project Results Framework (Section 3), finalize the Year 1 annual work plan. Review and agree on the indicators, targets and their means of verification, and recheck assumptions and risks.

c) Provide a detailed overview of reporting, monitoring and evaluation requirements. The M&E work plan and budget should be agreed and scheduled.

d) Discuss financial reporting procedures and obligations. The inception workshop also provides an excellent opportunity to introduce and discuss key cross-cutting issues that will considered within the LECB programme. An Inception Workshop Report is a key reference document and will be prepared and shared with participants to formalize various agreements and plans decided during the meeting. It will be a key deliverable of the project.

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Quarterly: Progress shall be monitored in the UNDP Enhanced Results Based Management Platform. Based on the information recorded in Atlas, a Project Progress Report (PPR) can be generated in the Executive Snapshot. Other ATLAS logs can be used to monitor issues, lessons learned, etc. Periodic Monitoring: A detailed schedule of project reviews meetings will be developed by the project management team, in consultation with project implementation partners and stakeholder representatives and incorporated in the Inception Workshop Report. Such a schedule will include: (i) tentative time frames for Steering Committee Meetings, (or relevant advisory and/or coordination mechanisms) and (ii) project-related M&E activities. Day to day monitoring of implementation progress will be the responsibility of the Project Manager based on the project's Annual Workplan and its indicators. The Project Manager will inform the UNDP Energy & Environment of any delays or difficulties faced during implementation so that the appropriate support or corrective measures can be adopted in a timely and remedial fashion. Periodic monitoring of implementation progress will be undertaken by the UNDP Energy & Environment team through quarterly meetings with the project proponents, or more frequently as deemed necessary. This will allow parties to take stock and to troubleshoot any problems pertaining to the project in a timely fashion to ensure smooth implementation of project activities. End of Project: During the last three months, the project team will prepare a brief terminal report. The terminal report will summarize the results achieved (objectives, outcomes, outputs), lessons learned, problems met and areas where results may not have been achieved. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the project’s results. Learning and knowledge sharing: Results from the project will be disseminated within and beyond the project intervention zone through existing information sharing networks and forums at the sub-national, national, regional, and global levels. The national management unit will work closely with the Programme’s Global Support Component in this context. The project team will also identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons learned. In particular, regular interactions will be sought with the technical teams of the CCCU and TNC, to ensure that information, best practices, and lessons learned are shared in a mutually beneficial manner. Equally, the three LECB working groups on GHG inventories, NAMAs and MRV will meet on a regular basis to share knowledge.

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The project will identify, analyze, and share lessons learned that might be beneficial in the design and implementation of similar future projects. There will be a two-way flow of information between this project and other projects of a similar focus, supported by the Programme’s Global Support Unit. Specific agreed activities for ensuring visibility of the project, and uptake of lessons learned and best practices are detailed in Appendix B. M&E Workplan

Type of M&E activity Responsible Parties Time frame

Inception Workshop and Report

Project Manager UNDP Energy & Environment,

UNDP EEG

Within first two months of project start up

Quarterly report (Atlas and ERBM)

UNDP Energy & Environment Quarterly

Periodic status/ progress reports

Project Manager and team Every six months

Project Terminal Report Project Manager and team UNDP Energy & Environment

At least three months before the end of the project

Audit UNDP Energy & Environment Project Manager and team

End of project

Audit The audit of NIM projects is made through the regular external (UN Board of Auditors) or internal audits (audits managed by UNDP’s Office of Audit and Performance Review). Visibility UNDP will ensure that the Ministry of Environment and respective donors to the project will receive the maximum visibility possible. UNDP will be responsible for determining when its name and logo are to be displayed and prior written authorisation must be granted by the UNDP Resident Representative on a case by case basis. 7. LEGAL CONTEXT This document together with the CPAP signed by the Government and UNDP which is incorporated by reference constitute together a Project Document as referred to in the SBAA and all CPAP provisions apply to this document. Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the implementing partner and its personnel and property, and of UNDP’s property in the implementing partner’s custody, rests with the implementing partner. The implementing partner shall:

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a) put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried;

b) assume all risks and liabilities related to the implementing partner’s security, and the full implementation of the security plan.

UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. The implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document. This project forms part of an overall programmatic framework under which several separate associated country level activities will be implemented. When assistance and support services are provided from this Project to the associated country level activities, this document shall be the “Project Document” instrument referred to in the respective signed SBAAs for the specific countries. This project will be implemented by the agency (name of agency) (“Implementing Partner”) in accordance with its financial regulations, rules, practices and procedures only to the extent that they do not contravene the principles of the Financial Regulations and Rules of UNDP. Where the financial governance of an Implementing Partner does not provide the required guidance to ensure best value for money, fairness, integrity, transparency, and effective international competition, the financial governance of UNDP shall apply. The responsibility for the safety and security of the Implementing Partner and its personnel and property, and of UNDP’s property in the Implementing Partner’s custody, rests with the Implementing Partner. The Implementing Partner shall: (a) put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried; (b) assume all risks and liabilities related to the Implementing Partner’s security, and the full implementation of the security plan. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. The Implementing Partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.

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Appendix A: Technical components of the project proposal 1. Description of project outcomes and key activities The global Low Emission Capacity Building Programme is supporting 25 developing countries to build capacities in the Public Sector and Industry on Low-Emission Development Strategies (LEDS), Measurement, Reporting, and Verification (MRV), Nationally Appropriate Mitigation Actions (NAMAs), and national GHG inventory systems. Lebanon is one of the beneficiaries of this programme, under Area 1 (public sector), where technical, financial and institutional capacities / support will be provided to achieve the following outcomes: Outcome 1: Robust national system for preparation of GHG emission inventories has been

established at the national level;

Outcome 2: Up to 8 NAMAs identified, 5 NAMA concepts formulated and 2 detailed NAMAs developed in the energy, waste and industrial sectors within the context of national development priorities, and;

Outcome 3: MRV systems have been designed to support implementation and evaluation of

identified NAMAs. The national LECB project will engage stakeholders from the Lebanese private and public sectors, assisted by the programme’s Global Support Unit (GSU). Outcome 1: Robust national system for preparation of GHG emission inventories has been

established at a national level. The development of GHG emission inventories contributes to Lebanon’s existing information and data collection processes and platforms, and is a Convention obligation. A GHG national inventory system will support the development of more periodic GHG inventories and the MRV system to be designed for Lebanon’s NAMAs. The technical and institutional capacity support that the LECB Project will provide under this Outcome will result in the development of systematic and sustainable GHG emission inventory processes as well as build the capacities required for this Project, which will also benefit the country’s National Communication process. The Ministry of Environment is responsible for the National Communication process, including compilation of the GHG inventory. In this context, it works closely with the Central Administration of Statistics (CAS), which has an existing, well established communication mode with some ministries and government authorities and is empowered by Article 5 of law 1793/1079 that states “All government units have to provide CAS with all data requested. Private sector as well, has an obligation to respond to surveys conducted by CAS”. The implementation of the law is hindered due to:

Lack of resources in some ministries to appoint a focal point that will be responsible for sharing the data with CAS;

Lack of tools in some ministries and government authorities to collect the required data;

CAS is viewed, by some ministries, as duplicating the work that they are performing with respect to data collection and reporting and are therefore reserving the right to sharing the data with CAS and;

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No proper enforcement of the law. Much of the public sector in Lebanon lacks the resources and knowledge to support the GHG emission inventory process. MOE, MOEW and CAS are the most advanced, but would need additional resource allocations to take a broader role in implementing a GHG emission inventory processes and platforms. Several ministries and authorities that were consulted as part of the stakeholder consultations had a functional data collection system that is being shared with CAS, but the data collected needs to be amended by MOE for the purposes of the GHG inventory. Existing tools should be communicated and provided to stakeholders to avoid duplication; a GHG inventory training manual that was developed in 2002, for example, as part of the TNA, could be adapted under the LECB project to serve as a national manual of procedures. In the absence of in-house expertise, companies and government institutions turn to their auditors and consultants for guidance and support. Climate change expertise, specifically with respect to conducting GHG inventories, is not widely available in Lebanon. The stakeholder consultation conducted with an accounting and auditing firm shed the light on the serious lack of expertise / resources that the government and private companies have access to in the country. The NAMA sectors that this Project is focusing on are energy production, waste, and industrial activities. The data and information relevant to these sectors lies primarily with MOI, MOEW, CAS and the Council for Development and Reconstruction (CDR). However, the informal and unsystematic processes adopted to collect and share data is a major hindrance. Communicating the goals of the Project to the relevant ministries will help defining a common goal to data collection and sharing. Incentive schemes to be developed, such as green certificates to the focal points / persons, to motivate people work hard and smart to achieve proper GHG emission inventory system. To achieve a robust national GHG emission inventory system, the following milestones / tasks will have to be completed:

i) Training and awareness on the importance of GHG inventories, as well as training the trainers; ii) Defining an inventory improvement strategy and communicating it to achieve common goals; iii) Documenting and archiving the data sources, methods used, and assumptions; iv) Defining and communicating the relevant data and information sought; v) Make use of existing tools and procedures (e.g., adapted for a manual of procedures); vi) Defining new tools required for sharing data among stakeholders; vii) Defining Quality Assurance / Quality Control (QA/QC) plan; viii) Defining the capacity building requirements; ix) Defining an incentive plan; x) Defining a process for systematic reporting that includes focal points and deadlines and; xi) Promoting the concept of low carbon economies and the benefits it has on the local economy

from a financial, environmental and sustainable development perspective. The LECB project will work in parallel with the TNC project to deliver this GHG inventory system. Output 1.1: Key stakeholders identified and focal points assigned

Activity 1.1: Identify the relevant stakeholders and assign focal points; Activity 1.2: Make aware and communicate with the stakeholders on the GHG emission

inventory process and timeline Activity 1.3: Define and communicate the common goal of the Project to the stakeholders.

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Output 1.2: Capacity of the key stakeholders assessed

Activity 1.4: Define capacity building requirements; Activity 1.5: Assess existing tools and processes and need for modification; Activity 1.6: Define requirements for new tools and;

Output 1.3: GHG national inventory system designed and documented

Activity 1.7: Identify processes framework that ensures periodic data collection and reporting; Activity 1.8: Review of existing GHG inventory practices under the TNC; Activity 1.9: Development of a GHG inventory system manual and; Activity 1.10: Put in place institutional and legal framework for the implementation of the GHG

emissions inventory system. Output 1.4: Training, communication and incentives undertaken

Activity 1.11: Communicate the GHG emission inventory system; Activity 1.12: Train the stakeholders and; Activity 1.13: Incentivize stakeholders for systematic follow up.

Linkages to Other Relevant Initiatives National GHG inventories constitute a major component of the National Communications of non-Annex I Parties and are a fundamental source of information for mitigation estimates and projections. It is thus expected that Outcome 1 will support the TNC process and future National Communications and Biennial Update Reports that Lebanon prepares. In particular, while the LECB project delivers the outputs above, the enhancement of GHG emission data collection documentation and archiving, and the design of QA/QC strategy will be undertaken as part of the TNC. Outcome 2: Up to 8 NAMAs identified, 5 NAMA concepts formulated and 2 detailed NAMAs

developed in the energy, waste and industrial sectors within the context of national development priorities.

Three sectors have been selected for NAMA prioritization and identification given their significant contribution to Lebanon’s GHG emissions. The Energy Production Sector in Lebanon accounted for 53.45% of Lebanon’s total GHG emissions in 2000 as reported in the country’s SNC. The existing power generation infrastructure is poor and heavily dependent on inefficient decentralized diesel powered generation to offset the shortfalls of the country’s utility, EDL. MOEW has plans to upgrade the country’s power generation infrastructure, which includes installation of new conventional, mainly gas, and renewable energy installed capacities. Municipalities are seen to be regulating the, what currently is chaotic and unregulated private power generation sector, via centralizing power generation that is owned and operated by the municipalities instead. The Solid Waste Sector accounted for 9.4% of Lebanon’s total GHG emissions in 2000, which is primarily emitted from the solid waste disposal facilities and sites in the country. None of the existing landfills in Lebanon are generating electricity from the vented or flared biogas generated from the anaerobic digestion or fermentation of organic waste.

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The Industrial Sector accounted for 9.62% of the country’s GHG emissions in 2000, which excludes the use of energy. In other words, the emissions are strictly produced from the industrial processes / activities, particularly cement (92% of industrial sector emissions and 8.9% of total national emissions). The industrial sector is keen on implementing energy efficiency projects since it positively impacts their operation from a financial, environmental and marketing perspective. Although the transport sector is responsible for around 21% of the country’s emission, it is a sector that is rather complicated to implement a NAMA with successful MRV system. The development/formulation of NAMAs will eventually contribute to the design and preparation of a LEDS in Lebanon. The LED strategy(s) will profile the country’s overall emissions trajectory, as well as take into consideration issues related to Lebanon’s social, environmental, economic and sustainable development. Output 2.1: Institutional arrangements and process planning for NAMA and LEDS development agreed

Activity 2.1: Conceptualization and development of the institutional arrangements and process for NAMA and LEDS identification, prioritization, and development (e.g., MOU, Cabinet memo, etc)

Output 2.2: NAMA longlist in the energy, waste and industrial sectors identified and prioritised

Activity 2.2: Review the projected GHG emissions of the sectors by describing the reference scenario (in coordination with the TNC project);

Activity 2.3: Review the potential policies and initiatives impacting GHG emissions in the sectors; Activity 2.4: Develop mitigation scenarios for the sectors; Activity 2.5: Develop fact sheets for each sector; Activity 2.7: Assess the emission reduction potential and co-benefits of the identified NAMAs (at

least eight); Activity 2.8: Develop a score methodology to prioritise NAMAs Activity 2.9: Validate analysis with key stakeholders and select 5 NAMAs for further

development and validate process with key stakeholders (using the NAMA procedures established through Output 2.1)

Output 2.3: NAMA concept notes prepared and endorsed for up to 5 NAMAs

Activity 2.10: At minimum, the information required by the UNFCCC NAMA registry documented for up to 5 NAMA concepts;

Activity 2.11: Comparison assessment for NAMA selection Activity 2.12: Up to 5 NAMA concepts endorsed by the government Activity 2.13: At least 2 NAMAs selected for further development

Output 2.4: Detailed NAMA proposals prepared for 2 NAMAs, including sources of financing

Activity 2.14: Assess the technical, institutional, and financial support available for identified NAMAs, as well as barriers to implementation;

Activity 2.15: Draft an implementation plan, including the institutional framework and MRV plans;

Activity 2.16: Assess the viability of the different financing models on the identified NAMAs and elaborate the financing plan;

Activity 2.17: Finalise NAMA proposals Activity 2.18: Identify source of funding for identified NAMAS

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Output 2.5: Framework for LEDS drafted Activity 2.19: NAMA outputs incorporated into LEDS framework (alongside outputs of other

relevant climate change projects) Linkages to Other Relevant Initiatives Lebanon has implemented a number of initiatives to support the development and growth of the renewable energy, energy efficiency and GHG emission reduction sectors. The country has 19 ongoing and 8 planned / upcoming initiatives, decrees and projects that will be instrumental to the development and implementation of the LECB Project. Together, the various EE and RE programmes as part of the LCEC and CEDRO projects, EU StREG programme, CCCU, LECB and TNC, will comprise the major segments of the Low Emission Development Strategy. In addition, there are several initiatives being undertaken at the country level that have specific NAMA outputs, including the GEF 5 decentralized PV project and support from Ecofys to the Ministry of Energy & Water. Linking these government-led initiatives in a manner where information and processes are centrally communicated through CCCU, operational as of Q2 2012, will achieve:

i) Reaching out to the stakeholders that could benefit from these initiatives. The findings from the stakeholder consultations were that none of the consulted entities were aware of the initiatives that could help them with energy efficiency or integrating renewable energy systems and;

ii) Linking these initiatives whereby stakeholders can benefit from multiple initiatives as opposed to only one.

The following graph illustrates how a typical Lebanese industrial company can gain from linking some of the existing initiatives.

Figure 3: Linkage of ongoing initiatives

Implementing a NEEAP initiative

Benefits from a NEEREA Funding

Take Advantage of LCPC’s awareness

and capacity building

Learn from the GHG Inventory Manual

Complying with Environmental Compliance Decree 8471/2012

CENTRAL UNIT Information, Processes, Linkage

and Coordination

Industrial Group

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Outcome 3: MRV systems have been designed to support implementation and evaluation of identified NAMAs

An MRV system will give transparency and confidence in the implementation of NAMAs as well as international credibility. It will also support Lebanon to comply with its Biennial Update Report obligation, which is required by the Durban climate change deal. In the absence of specific guidance on MRV systems to be implemented for NAMAs, the Project will have to work with the available UNFCCC decisions to develop a credible and functional MRV system. The following table illustrates the type of NAMA that Lebanon can adopt and the relevant MRV guidelines that should adopted. Supported and Credited NAMA MRV systems are potentially more comprehensive since they will have to meet the guidelines of COP, the UNFCCC, Annex I country or extracted from CDM approved methodologies.

NAMA MRV

Unilateral Domestic MRV to be submitted once every 2 years

Supported International or bilateral MRV procedures will have to be implemented on annual basis that are in accordance with the guidelines to be adopted by COP, the UNFCCC or the partnering country

Credited

Not currently formally in discussion in the negotiations. International guidelines that have not yet been developed. These guidelines might be extracted from CDM approved MRV methodologies.

There are no MRV systems in Lebanon that have been developed and/or implemented previously; therefore several issues ought to be taken in to consideration as an MRV system is developed:

i) Availability of data to MRV the identified NAMA (this task is linked with the GHG emission inventory system under outcome 1), including co-benefits;

ii) The private / public sector interaction for industrial sector NAMAs; iii) The gradual versus one-time introduction of MRV systems, given the lack of knowledge,

resources and experience in GHG reporting. It will be interesting to learn from the implementation of the Carbon Disclosure Project in Turkey for example;

iv) The development of capabilities (human resource, technical, policies, etc.); v) Training the consultants and auditors, given the reliance of the private and public sectors on

them in the absence of in-house capabilities and; vi) Communicate and feedback so stakeholders are kept involved.

Output 3.1: MRV process developed Activity 3.1: Review of existing MRV systems and their applicability in Lebanon, including

linkages with the GHG inventory system; Activity 3.2: Identify required MRV tools and institutional processes; Activity 3.3: MRV process to support NAMA type to be adopted in the country;

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Output 3.2: MRV system communicated Activity 3.4: Tools and processes are communicated to relevant stakeholders; Activity 3.5: Train the trainers as well as stakeholders on the MRV process.

Linkages to Other Relevant Initiatives It is thus expected that Outcome 3 will support the National Communications and Biennial Update Reports that Lebanon prepares.

2. Strategy to link process and outcomes of the project to relevant planning and decision making

processes To design and implement the set outcomes of the LECB Project will require development of policies, measures and cooperation. The LECB Programme Global Support Component will provide guidance to the national project team on:

Tools and training for GHG inventory systems, NAMAs, LEDS and MRV; Technical assistance during the implementation of the Project activities; Identification of policy and financing options to facilitate private and public partnership on low

emission development and; Raising awareness and engaging stakeholders via communicating the knowledge and lessoned

learned. The three outcomes of the LECB Project will have to be developed in close coordination, given how interrelated the activities and milestones are. Policies and processes introduced for one outcome will have direct impact on how the other outcomes will be designed and implemented. Communication and dialogue practices for the sake of cooperation and engagement will have to be setup to benefit the Project. A number of Lebanon’s ongoing and planned initiatives that are briefly discussed in the Situation Analysis section of this document, will need to be closely aligned with this Project since they impact the three planned outcomes. Setting up the proposed National NAMA Office (similar to the DNA) that will provide information, coordination, and guidance to the ongoing initiatives will also streamline communication with the Project. (See Appendix F for an illustration of the linkages between various key climate change projects.) The success of this Project will open the door for additional NAMA identification and implementation in sectors that are contributing to the country’s GHG emission. Through continuous engagement and dialogue, the LECB outcomes should be continuously amended and improved to address national issues, but preserving the integrity, transparency and credibility of the systems. The stakeholder consultations that were held identified the weaknesses of the current ongoing initiatives where the most important of which is the lack of awareness and engagement.

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APPENDIX B: VISIBILITY & OUTREACH UNDER THE LECB PROJECT

Context The Low Emission Capacity Building Programme is considered by its donors as an innovative pathfinder project – allowing national governments to build capacities to plan their own low-emission development pathways within the context of national circumstances and national development goals. National teams are in the best position to identify on-the-ground experiences that can be collated and disseminated. As such, national LECB project teams are encouraged to program approximately 5% of their budget for learning, knowledge sharing, communication and outreach activities and materials2. Visibility is a major criterion from donors for measuring success and national teams are encouraged to develop an outreach strategy the beginning of the project that is regularly monitored. At times, national teams may be called upon to provide updates on their project progress for featuring in donor publications. Required Visibility Products

National Fact Sheet/Case Study Each national team is expected to prepare a National Factsheet/Case study that can be used at the national and global levels (via the LECB Programme’s global website, newsletter, and other outreach tools) to promote national project results and activities. Lesson Learned/Best Practices Documents Each national team is expected to produce a lessons learned/best practices document at the completion of each project component to showcase their results and impacts. The Global Support Unit will provide guidance on how to develop these best-practice documents, which will also be used as guidance for other developing countries embarking on a LEDS/NAMA process. Contributions to LECB Programme newsletter The Global Support Unit will prepare a quarterly newsletter. National teams are required to contribute with at least one newsletter article during the life of the project. Recommended Visibility Products National web page National teams are requested to develop a web page or, at minimum, post relevant project activities on the most appropriate institutional website. The Global Support Unit will link to the national page from the global programme site, www.lowemissiondevelopment.org, and encourages similar linkages to the global site wherever programme promotion is featured. National media reports National teams are requested to liaise with the communications focal point in the UNDP Country Office regarding any media produced by or about the project, and to share media reports with the Global Support Unit for global promotional efforts, including featuring on the programme website, www.lowemissiondevelopment.org.

2 It is noted that these funds may be embedded in other activities, such as producing a Lessons Learned document at the

end of a project component, or developing a joint webpage with the government ministry implementing the project and need not appear as a separate budget line or activity.

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Appendix C: Terms of Reference Terms of Reference for National Project Manager The Project Manager (PM) is responsible for day-to-day management, guidance, co-ordination and resource mobilisation and the implementation of the above project in coordination with the Ministry of Environment and the UNDP E&E unit. Specifically, her/his responsibilities include, but are not limited to: Tasks

Ensuring the timely implementation of the project relevant activities as scheduled in the working plan;

Preparing a detailed work plan for the project and draft terms of reference for the subcontracts (as per MoE and UNDP guidance);

Ensuring adequate management of the material and financial resources provided for the project such as equipment, budget, balance sheets, etc.

Developing the scope of the work and TORs and other procurement documentation required to identify and facilitate recruitment of experts and consultants;

Hiring/subcontracting the national experts and institutions (as per MoE and UNDP rules and regulations);

Coordinating the scope and content of the outputs in consultation with the experts;

Ensuring timely reporting as per UNDP/GEF reporting requirements, in addition to regular reporting to MoE;

Summarising and synthesizing the results of the project;

Working according to UNDP management procedures while being in-line with and understanding the directives of the Ministry of Environment;

Ensuring that the LECB process is in line with guidance provided by the COP of the UNFCCC and contributes to the improvement of the UNFCCC reporting process.

Coordinating with the relevant public administration, national and international research institutes, NGOs, and other relevant institutions in order to involve their staff in project activities, and to gather and disseminate information relevant to the project;

Collaborating with all relevant stakeholders and other partners to ensure their involvement in the LECB;

Ensuring synergy of the LECB with other relevant ongoing / new projects and MoE and Government policy;

Understanding the UNFCCC and its protocol and their relationship with national policies and legislation, while closely follow-up on negotiation outcomes;

Identifying and pursuing follow-up and parallel activities, including preparation of proposals and other resource mobilisation activities as required;

Qualifications

A Master’s degree in environmental sciences or engineering, or other closely related disciplines with 8 years of working experience;

Excellent communication (Written and Oral) skills;

Familiarity with international negotiations and processes under the UNFCCC is preferable;

Familiarity with computers and Microsoft Office;

Excellent analytical skills, and drafting skills in English and Arabic;

Lebanese National

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Experience

Good understanding of Lebanon’s environment and development issues as well as the main components under investigation;

Involvement in the preparation of the national climate change policy related activities with excellent understanding of the national context in a plus; and

Knowledge of NAMAs and MRV systems in a plus

Demonstrated experience in project management;

Expertise in putting together results-oriented action plans and resource mobilisation;

Demonstrated experience in working with public administration, development partners and the United Nations system;

Appropriate experience working with public administration structures at local levels, and the private sector (NGOs, academia, companies);

Substantial experience in public administration and in inter-departmental procedures is preferable.

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Appendix D: Endorsement letter

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Appendix E: Brief report on the stocktaking and stakeholder consultation Methodology Employed for the Stakeholder Consultation The consultant, in collaboration with the UNDP, opted to conduct one-to-one stakeholder consultations as opposed to public or focused workshops for reasons that are based on the understanding of the mentality and extensive experience working in Lebanon. The main reasons are:

The goal was to meet with owners, senior managers and/or decision makers of the targeted

stakeholders; a goal that was achieved by the direct one-to-one meetings. The reluctance to

holding general or focused workshops is that middle managers or non-decision makers will be

attending and therefore not being able to obtain the honest, relevant concerns and precise

feedback;

The private sector stakeholders that were consulted are large companies with significant GHG

emissions in their respective industries. None of these stakeholders attend the regular seminars

and workshops that are held in Lebanon, and that was clear from their unawareness of the

government-led initiatives and programmes that are available for them to benefit from (such as

the NEEREA). The consultant wanted to specifically approach them for the purpose of engaging

them as well as get their feedback and perspective. The primary reason for not being engaged is

mainly due to the fact that they were not made aware of these seminars and workshops;

The one-to-one interviews and meetings that were held with the public institutions were

deliberate; the rational was that more candid discussion and feedback will be provided on the

topic of data and information sharing, or the lack of it, as well as their perspective on the subject

of GHG inventory reporting;

Duration of meetings was another factor that was taken into consideration by the consultant.

The average meeting with the private sector stakeholders was 2 hours and an average of 1 hour

with the public stakeholders. The consultations were focused and interactive. This level of

concentrated communication would have not been achieved in a workshop setting;

Time constraint to organize workshops in different parts of the country was also a factor that

prompted the consultant to opt for direct one-to-one meetings. Organizing workshops in Beirut,

the north, the south and the Bekaa would have been difficult to achieve especially since the

month of August had 2 major holidays.

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Stakeholders and Institutions consulted The identified stakeholders’ included companies, authorities and ministries from both the private and the public divisions of the economy. The following table outlines the sectors that were consulted.

Private Industrial – Manufacturing Tourism – Hotel / Resort Retail – Shopping Mall Accounting – Auditor & Management Consultant

Public Energy Customs Industry Statistics

Results and Findings of the Stocktaking Exercise There are 19 comprehensive policies, activities, projects and programmes that were implemented and/or ongoing in Lebanon that are designed to primarily support the energy efficiency, renewable energy and emission reduction sectors in the country. Some of these schemes are standalone where others are an outcome or are complements to other schemes. The thorough review of these implemented and ongoing activities revealed that the energy efficiency, renewable energy and emission reduction sectors are serviced from a financial, policy, awareness, demonstration, market development, legal and awareness perspectives. Several areas were identified that ought to be considered in the project implementation phase that are designed to centralize, make accessible, classify and provide training and capacity building. Getting access to the information and terms of these miscellaneous schemes could be challenging since they are managed by different teams under separate structures. Compiling and centralizing the information required by stakeholders will not only provide ease of access, but also promote ongoing and upcoming initiatives where stakeholders can attain all the required information from one location and therefore improving efficiency of the stakeholders as well as the initiatives. A Centralized Body will also serve easy access and guide for stakeholders wanting to learn more on which initiative best serves their needs. Stakeholders will have enough information to identify or combine initiatives and then be directed to the right teams, by the Centralized Body, for detailed terms and execution. The finding of the stakeholders’ consultations illustrated the weaknesses of the current initiatives and how they are promoted. The private sector stakeholders’ for example were not aware of almost all of the initiatives or laws that they could utilize or that could impact their business-as-usual scenarios. Government entities, on the other hand, were unaware of decrees that they had to comply with in respect to data and information sharing. Previous and ongoing initiatives are excellent for Lebanon’s energy efficiency, clean energy and emission reduction sectors; they are managed by professionals, supported by credible entities and funded by

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international government organizations. Demonstrating how these initiatives complement each other will significantly increase the visibility and attractiveness of these initiatives. For illustration purposes, an organization that:

i) Wants to implement one of NEEAP’s energy efficiency or renewable energy initiative can;

ii) Benefit from NEEREA funding and;

iii) Take advantage of LCPC’s awareness, training and capacity building services and;

iv) Learn from the GHG inventory manual developed as part of the TNA;

v) This will Result in having the organization acquire the knowhow on how to comply with the

Environmental Compliance Decree (8471/2012).

The Centralized Body will require the cooperation and input of the various entities managing these initiatives (Managing Entities); the implementation of the CCCU will, in principle, pave the way for coherence as well as open channels for these Managing Entities to cooperate. This will also lead to these Managing Entities to understand each other’s processes and therefore improving the synergies among the different services and facilities they provide. Results and Findings of the Stakeholder Consultations Summary of Private Sector Consultation The stakeholders’ consultation with the private sector could be categorized as interactive, candid and beneficiary. The responses and perspectives of the stakeholders on a GHG reporting scheme, whether voluntary or compliance, were similar in content and approach. The following table summarizes the main points of the consultations.

Industrial

Tourism

Retail

Accounting

Environmentally Aware Yes Yes Yes Basic Environmental Strategy Yes – Centralized Yes – Centralized Yes – Decentralized Ad hoc

Will Conduct Voluntary GHG Reporting

Conditional Conditional Conditional Yes

Keen GHG Reporting if compliance

Only if managed by a credible private entity

Only if managed by a credible private entity

Only if managed by a credible private entity

Yes

Will Require Incentives Yes Yes Yes Yes GHG Reporting approach Gradual Gradual Gradual Gradual

Implementing a NEEAP initiative

Benefits from a NEEREA Funding

Take Advantage of LCPC’s awareness

and capacity building

Learn from the GHG Inventory Manual

Complying with Environmental Compliance Decree 8471/2012

36

All consulted stakeholders were environmentally aware, at least in their respective fields, and were taking proactive measures to improve efficiency and strengthen their environmental message. There was a common message with respect to the lack of credibility towards government initiatives and equally to any scheme that is managed by government entities. For a stocktaking exercise to succeed, initiatives ought to be provided, a credible entity will have to manage the process and as importantly a gradual approach will have to be adopted with frequent communication and feedback. There was also a common agreement on the need to provide sufficient capacity building via raising awareness, educate and train prior to moving into a reporting scheme, whether compliance or voluntary. The accounting and auditing firm had a different perspective on the situation since compliance reporting means additional business. They also stressed on the fact that, based on experience, voluntary schemes normally do not work in Lebanon. The auditing firm sees its role to be important in the GHG inventory scheme since their clients will highly likely ask for their support and opinion. Multinational accounting firms operating in Lebanon can easily transfer these skills from their foreign operation; the emphasis should be on training the local firms. Stakeholders had a common message regarding the conferences, workshops, programs and schemes that are being held and provided in Lebanon; the message is that all these activities are poorly communicated to them and are therefore not being well utilized / exploited.

Summary of Public Sector Consultation The stakeholders’ consultation with the public sector could be categorized as interactive and upfront. The responses and discussions we had with the public stakeholders differ in content, but all revealed the respective challenges that will impact the development and implementation of a GHG inventory project. The general message received is one of support and keenness to participate. The following table summarizes the main points of the consultations.

CAS

Customs MOEW

MOI

Relevance to stocktaking High High High High Processes in place Systematic but

informal with others

Systematic Informal Systematic

Liaison with stakeholders Mixed Well Mixed Well Bureaucracy level / ease of decision making

Moderate Moderate Moderate to difficult

Easy to moderate

Linkages with other government entities

Yes Viable Viable Adverse

Consulted stakeholders are collecting data and information on their respective operation where some of the processes were formal and systematic and others were informal and are based on personal relationship. Bureaucracy and interaction with stakeholders might be a challenge in some areas that ought to be overcome to ensure a proper and transparent GHG inventory system.

37

Priorities for the Project Proposal The outcome of the desktop review, the in-depth analysis and the stakeholders’ consultations led us to the following priorities for the project proposal: Education, awareness & support programs: The majority of Lebanon’s private and public sectors lack the knowledge, tools and policies to audit, report and monitor their GHG emissions. This conclusion was attained from the thorough understanding of the Lebanese economy; the results of the stakeholders’ consultations and from the series of workshops that were prepared and delivered by the consultant between 2008 & 2010 for Lebanese universities, privately owned institutions and the government sector. To successfully define and implement a Low Emission Development Strategy (LEDS), Lebanese stakeholders ought to be brought up to speed and trained on the latest topics and tools necessary for the identification and submission of NAMAs.

GHG Inventory System: Lebanon lacks a proper and efficient GHG inventory system, which is a key aspect to eventually ensuring robust technical elaboration of the Low Emission Development Strategy, as well as the Nationally Appropriate Mitigation Actions that will be developed. The informal and unsystematic processes in place for information and data sharing, coupled with the unenforceability of laws that mandate government institutions to report to CAS, are all issues that ought to be addressed. The inventory system is directly linked to the MRV system and will have to be carefully designed to reflect the capabilities of the private and public sectors, which will highly likely be addressed separately. Nationally Appropriate Mitigation Actions (NAMA): Due to Lebanon’s limited financial resources, a thorough analysis will have to be done to determine the type of NAMAs to adopt as well as understand

Education, Awareness & Support Programs

Low Emission Development Strategy

Nationally Appropriate Mitigation Action Plans

Monitoring, Reporting & Verification

Communicate & Elaborate

Inventory System

38

the respective financial, technical, capacity building and MRV implications. The latest GHG inventory was performed for the base year 2000, where just under 75% of the quantified emissions came from the Energy production and transport sectors as illustrated in Lebanon’s second national communication to the UNFCCC. In addition to the leading GHG emitting sectors, the Project Proposal will also consider NAMA(s) that will be implemented and are not hindered by bureaucracy and red tape. NAMAs that could be considered, for example, could be for the implementation of energy efficiency projects in government managed assets and large private institutions / sectors. Monitoring, Reporting & Verification (MRV): Lebanon’s decision on which NAMA scheme to adopt will have direct implication on the MRV system to utilize. The following table illustrates the MRV system that should be adopted depending on the NAMA scheme the Lebanese government choses to adopt

NAMA MRV

Unilateral Domestic MRV to be submitted once every 2 years Supported

International or bilateral MRV procedures will have to be implemented on annual basis that are in accordance with the guidelines to be adopted by COP, the UNFCCC or the partnering country

Credited

International guidelines that have not yet been developed. These guidelines might be extracted from CDM approved MRV methodologies.

The proposed MRV system will have to be gradually introduced with the aim of achieving the following:

• Promote the concept of emission-related MRV system; • Introduce and support with the implementation of a voluntary MRV system; • Commence with building a database of Lebanon’s emissions from the private sector’s activities

to complement the information/database pertaining to the activities under the public sector’s control and;

• Prepare Lebanese stakeholders to eventually be ready for complying with monitoring and reporting emission-related data.

Low Emission Development Strategy (LEDS): Lebanon has developed a number of projects, programmes, activities and action plans that could be the mainstay of a Low Emission Development Strategy; some of which are related to renewable energy, energy efficiency, awareness, training and policy introduction. To draw a National Strategic Development Plan, there ought to be synchronization among the entities implementing mitigation action plans and projects; resulting in avoiding duplication and having them complement each other. The end result is to harmonize the outcome and aggregate the emission reductions. Apart from the Ministry of Electricity and Water, there are no other entities that have plans related to emission reduction and mitigation; therefore, a “sectoral” approach in rolling out mitigation actions would assist in developing national LEDS. Communicate & Elaborate: In addition to the Education, Awareness and Support programs, a Communication and Elaboration campaign will have to be adopted to ensure that the relevant Lebanese stakeholders understand the results and their implications on the economy from a financial, sustainable development and environmental perspective.

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Appendix F: Overview of the Different Climate Change Projects in Lebanon

Low Emission Development

Strategy

National Energy Efficiency Action Plan /Sustainable Energy

For All

Ministries of Finance,

Transport & Industry; IoF;

IDAL MoTransport

Technology Needs

Assessment

Ministry of Environment/EU

STREG

Climate Change Coordination

Unit

Third National Communication

SPP

LCEC/MEW Projects

GEF PV FSP CEDRO

LCEC/GSWH Biennial Update

Report

National Council for the Environment

40

Appendix G: Description of UNDP Country Office Support Services

1. Reference is made to consultations between the Ministry of Environment, the institution designated

by the Government of Lebanon and officials of UNDP with respect to the provision of support services by the

UNDP country office for the nationally managed programme or project ID 00082292 “Low-Emission

Capacity Building Project – Lebanon”, “the Project”.

2. In accordance with the provisions of the letter of agreement signed on January 2013 and the

programme support document or project document, the UNDP country office shall provide support services

for the Project as described below.

3. Support services to be provided:

Support services

Schedule for the

provision of the support

services

Cost to UNDP of

providing such support

services

Method of reimbursement of

UNDP (Biannually)

1. Financial

Services

Project duration: January

2013 through December

2015

7 days GLJE

2. Human

Resources

Services

Project duration: January

2013 through December

2015

1.5 days GLJE

3. Procurement

services

Project duration: January

2013 through December

2015

4.5 days GLJE

4. Travel Services Project duration: January

2013 through December

2015

1 day GLJE

5. General

Administration

Services

Project duration: January

2013 through December

2015

1 day GLJE

6. Revenue

Management

Services

Project duration: January

2013 through December

2015

1.7 days GLJE

41

4. Description of functions and responsibilities of the parties involved:

Support services

Description

Financial Services - Payment process

- Issue check

- Vendor profile

Human Resources

Services

- Staff selection and recruitment process (advertising, short-listing,

interviewing)

- Staff HR & Benefits Administration & Management (at issuance of a

contract, and again at separation)

- Recurrent personnel management services: staff Payroll & Banking

Administration & Management (Payroll validation, disbursement,

performance evaluation, extension, promotion, entitlements, leave

monitoring)

- Interns Management

Procurement

services

- Consultant recruitment (advertising, short-listing and selection, contract

issuance)

- Procurement process involving local CAP and/or ITB, RFP requirements

(Identification & selection, contracting/issue purchase order, follow-up)

- Procurement not involving local CAP; low value procurement (Identification

& selection, issue purchase order, follow-up)

- Disposal of equipment

Travel Services - Travel authorization

- F10 settlement

General

Administration

Services

- Issue/Renew IDs (UN LP, UN ID, etc.)

- Shipment, customs clearance, vehicle registration

- Issuance of visas, telephone lines

Revenue

Management

Services

- AR Management Process (Create/apply receivable pending item, Issue/Apply

Deposit )