Nationally Appropriate Mitigation Actions (NAMAs) for low-carbon end-use sectors in Azerbaijan


General Information of the NAMA:

GENERAL INFORMATION
Country Azerbaijan
National implementing entity (NAMA owner) UNDP
Development stage Implementation
International partners GEF, UNDP
Total costs USD 37,57 million
Duration 18 months
SCOPE OF THE NAMA
Type of NAMA  Supported (with unilateral elements)
Type of action  Strategy or plan
Scope of action  National
Type of approach  Improve
Transport mode  Passenger and Freight

This project is placed within the existing national framework of Azerbaijan and provides a particular focus on a programmatic NAMA approach that reflects specific greenhouse gas mitigation measures to be implemented by SOCAR, the national oil company of Azerbaijan.

The specific objective of the project is to support SOCAR in the development and implementation of selected programmatic NAMAs in the low-carbon end-use sectors, where pilot investments will be directed into low energy and low carbon technologies that are so far missing on a large scale on the Azeri market. The concept of NAMAs represents a valuable opportunity for a large enterprise, such as SOCAR, to developing and implementing a large scale GHG mitigation program that is in line with the company’s long-term sustainable development strategy and simultaneously will target the country’s institutional & policy framework, address appropriate mechanisms and result in activities to realise significant GHG emission reduction achievements in the long term.

The proposed project is set within the country’s ambitions to reduce GHG emissions and energy intensity of major energy end-use sectors in Azerbaijan and simultaneously introduce innovative energy efficiency and renewable energy technologies in main energy end-use sectors such as buildings and transportation systems.

The project will address on the one hand the existing potential to improve the energy performance of main end-use sectors on the Azeri market, namely buildings (new and existing residential, service and public buildings) and transportation (passenger cars, trucks, buses, special purpose vehicles). On the other hand, the oil & gas production sector being one of the main sources for GHG emissions in Azerbaijan, will be addressed in terms of mitigation activities that will indirectly benefit the energy end-use in the country through capturing of associated gases evaporating from existing on-shore oil and gas fields and utilising the gas as a fuel source for nearby residential areas that are otherwise affected by large-scale deforestation activities.

The project has been organised around four outcomes and will be implemented over a period of five years.

  • Outcome 1: Assessment of GHG emission mitigation potentials and voluntary target setting;
  • Outcome 2: Design & establishment of NAMAs in oil & gas end-use sectors;
  • Outcome 3: Implementation of a set of (up to 3) project NAMAs in the oil & gas end-use sector;
  • Outcome 4: Monitoring, Reporting & Verification system and national registry for mitigation actions in the energy generation and end-use sectors to be set up.

Mitigation potential:

MITIGATION IMPACT
expected mitigation impact 15.8 Mt CO2 eq. in total

The total mitigation potential of 15.8 Mt CO2 eq. is made up by the direct effects of pilot projects and the indirect effects of policy instruments targetting energy sector emissions. Note that the transport sector is only one part of the implementation of these policies.

Financing:

COSTS
Total costs  USD 37,57 million
Funder GEF, SOCAR, EU, National Government

This NAMA is supported by a GEF fund of USD 3,570,000. USD 34 million is contributed by co-finance arrangements, in particular with the National Oil Company (SOCAR), which contributes USD 30 million.

Concept: 

The establishment of a GHG emissions inventory is an integral part of the NAMA.

Contact and resources:

Contact: 

Marina Olshanskaya

UNDP Istanbul Regional Hub

marina.olshanskaya@undp.org

Resources: 

http://www4.unfccc.int/sites/nama/_layouts/un/fccc/nama/NamaSeekingSupportForPreparation.aspx?ID=57&viewOnly=1