The document discusses climate change policy and financing in Moldova. It summarizes Moldova's targets to reduce greenhouse gas emissions 64-67% unconditionally and up to 78% conditionally below 1990 levels by 2030 as outlined in its INDC. It also outlines Moldova's national climate adaptation strategy and LEDS currently being developed. Recent climate projects financed through international sources and national funds are mentioned. National funds supporting climate, energy efficiency and renewable energy include the Energy Efficiency Fund and National Ecological Fund. Discussions are also underway regarding support from the Green Climate Fund.

1. Financing climate actions
using international and
domestic sources
Veronica Lopotenco,
Ministry of Environment,
Republic of Moldova,
OECD, Paris, 2016

2. Climate change – policy documents
1. Association Agreement RM-EU/Chapter VII Climate Actions
2. Environmental Strategy 2014-2023,
3. Strategy on adaptation to climate change and its action plan till
2020,
4. INDC
5. Strategy on waste management 2013-2027,
6. Strategy on water supply and sanitation 2014-2028,
7. Energy Strategy of the Republic of Moldova till 2030,
8. National Programme for energy efficiency, 2011-2020
Under development – LEDS 2016-2030 – instrument for
transposing INDC

3. INDC provisions
The Republic of Moldova has submitted its INDC
on 25 September 2015 to the UNFCCC
Secretariat and presented associated information
to facilitate clarity, transparency and
understanding in relation to the stipulations of
Decisions 1/CP .19 and 1/CP .20
The Republic of Moldova intends to achieve an
economy-wide unconditional target of reducing
its net greenhouse gas emissions (GHGs) by 64-
67% below its 1990 level in 2030.

4. INDC – Mitigation
Reduction Level The Republic of Moldova is committed
to an unconditional target of a 64-67% reduction of
its greenhouse gas emissions by 2030 compared to
1990 levels. The 64% reduction corresponds to a self-
sufficiency power system development scenario, while
the 67% reduction allows for a 30% import of
electricity.
The reduction commitment could increase up to 78%
reduction below 1990 level conditional to a global
agreement addressing important topics, including
access to low-cost financial resources, technology
transfer and technical cooperation commensurate to
the challenge of global climate change.

5. INDC - Adaptation
Climate Change Adaptation Strategy by 2020
(approved in December 2014)
• O1 Create by 2018 the institutional framework in the field of
climate change that would ensure the efficient implementation of
adaptation measures at the national, sector and local levels.
• O2 Create by 2020 a mechanism to monitor the climate change
impacts, the related social and economic vulnerability and for the
management/dissemination of the information on risks and
climate disasters.
• O3 Ensure the development of climate resilience by reducing at
least by 50% the climate change risks and facilitate climate
change adaptation in six priority sectors by 2020.

6. LEDS – general view
LEDS, as an instrument for transposing INDC, has been drafted based on INDC
provisions and it is in process of national consultation with line ministries
(Ministry of Justice) and is planned to be approved by Government by the end
of July 2016.
General objective of the LEDS is the same as in the INDS (64-67%
unconditional/78% conditional)
Specific objectives has been established for the following sectors: energy (74%
unconditional and 82% conditional), transport (30% unconditional and 40%
conditional), buildings (77% unconditional and 80% conditional), industry
(45% unconditional and 56% conditional), agriculture (37% unconditional and
41% conditional), waste (38% unconditional and 47% conditional) , LULUCF
(62% unconditional increasing of CO2 sequestration and 76% conditional
increasing).
Relevant legislative acts for the INDC implementation are required and will be
considered for being approved by Parliament.

7. LEDS implementation costs (billion $)
Objective Total for 2016-2030
With electricity import Without electricity import
Unconditional 3,741 4,627
Conditional 4,901 5,106
TOTAL
conditional
compared with
Base Line
Scenario
8,642 9,733

8. Recent climate related projects
Disaster and climate change risk management
The project is aimed at reducing the country's vulnerability to natural hazards.
Component A: Strengthening of forecasting severe weather conditions
(Ministry of Environment/State Hydrometeo Service);
Component B: Enhancing disaster preparedness and response to emergency
(Ministry of Internal Affairs/ Civil Protection and Emergency Situations Service)
Component C: Initiation of climate change adaptation in agriculture (Ministry
of Agriculture and Food Industry).
Period of implementation – 2010-2016
Projects cost - 10 m $
Financed by – World Bank
Status – finalized

9. Recent climate related projects
Moldova Climate adaptation & Forestry Project
Component 1: Resilient rural landscapes
(i) Rehabilitation of forests and common lands
(ii) Scaling up small‐holder on‐farm climate resilience measures
(iii) Promotion of larger‐scale irrigation and drainage
Component 2: Climate information and emergency preparedness
Planned investments – 24,5 m $ (18.6m $ IBRD, 1.4m $ (SDR
1m) IDA, 4.5m $ GEF)
Financed by World Bank
Status – planned (project proposal under development)

10. Recent climate related projects
The investment program in the waste management
sector
Aim of the project is to develop of an appropriate waste
management infrastructure based on the feasibility studies.
Planned investments – 200 m EUR, 100 m of which were
negotiated with European Investments Bank.
EIB is under negotiation with other financial structures
(E5P, NIF etc.) in order to attract loans to cover the total
program investment.
Expected stat of the implementation of the program - 2017

11. Recent climate related projects
Management and TA Support to Moldova Flood Protection Project
The main objective of the project is to contribute to the reduction of the
incidence of natural disaster caused by floods that affect the population and
goods of Moldova.
Period of implementation – 2013-2015
Within the project were devepoled:
- preliminary flood risk assessment,
- flood hazard maps and flood risk maps,
- flood risk management master-plan.
Financed by - European Investments Bank
Projects cost – 1,588,800 EUR
Status - finalized

12. Recent climate related projects
ESCO Moldova Project
The project objective is to create a functioning, sustainable and effective
ESCO market in Moldova, as the basis for scaling up mitigation efforts in the
whole municipal building sector in Chisinau and Moldova in line with the Green
Urban Development Plan.
Project components:
 Component 1: Green Urban Development Plan for Chisinau
 Component 2: Creation and Operation of ESCOs
 Component 3: ESCO Market Operation
 Component 4: ESCO Market Operation - Replication and Dissemination.
Project cost – 1,280,696 EUR
Financed by UNDP
Status – ongoing (2014-2018)

13. Recent climate related projects
CDM Projects:
1. Moldova Soil Conservation Project. Total amount of CO2 emissions reductions will constitute: 3,215,295 tonnes, and the
total reduction costs comparative with the baseline scenario – 13.3 millions USD. Project implementation timeframe will
constitute 21 years, since 2002.
2. Moldova Biomass Heating in Rural Communities Project No. 1. Total amount of CO2 emissions reductions will
constitute: 178,884 tonnes, and the total reduction costs comparative with the baseline scenario – 8.2 millions USD.
Project implementation timeframe - 10 years, since 2006.
3. Moldova: Biomass Heating in Rural Communities Project No. 2. Total amount of CO2 emissions reductions will
constitute: 178,884 tonnes, and the total reduction costs comparative with the baseline scenario – 8.2 millions USD.
Project implementation timeframe – 10 years, since 2008.
4. Moldova: Energy conservation and GHG emissions reduction. Total amount of CO2 emissions reductions will constitute:
114,469 tone, and the total reduction costs comparative with the baseline scenario – 6.8 millions USD. Project
implementation timeframe – 10 years, since 2006.
5. Landfill Gas Recovery and Energy Production at the Tintareni Landfill, Chisinau, Moldova. The emission reductions due
to the capture and destruction of methane over 10 years of the fixed crediting period are estimated to amount to 797,335
tones CO2 equivalent.
6. Construction of the cogeneration power plant of total installed capacity of 31 MW at the State Enterprise „Tirotex” from
Tiraspol, Republic of Moldova. The expected emission reduction within the 2009–2012 period: 204,800 tones CO2
equivalent.
7. Development of the communal forest sector in Moldova Project. Implemented by Moldsilva Agency
8. The construction of biofuel production plant or.Drochia Project.
9. Projects no. 1 and no. 2 "Reducing fugitive emissions from distribution networks and gas transmission“ is implemented
by the "Moldova-Gaz”.

14. Recent climate related projects
Energy and Biomass Project
Projects aims to contribute to the establishment of a reliable, competitive and sustainable
system to produce energy from renewable sources, especially out of agricultural waste biomass.
Projects components:
Component 1. Biomass heating of rural municipal buildings and establishment of local fuel supply
markets.
Component 2. Foundations laid for establishment of efficient household heating, industrial
cogeneration and biomass briquetting markets.
Component 3. Building capacity for growth of biomass markets at regional and local levels in
Moldova.
Component 4. Promoting the opportunities and benefits of renewable energy, especially of
biomass energy for Moldova.
I phase – 2011-2014,
Projects cost - €14.56 million, provided by the European Union (€14 million) and UNDP Moldova
(€0.56 million).
II phase 2015-2017,
Projects cost - € 9,41 million, provided by the European Union.

15. Strengthening the biomass market and
promoting the biomass use
 Promoting a legislative initiative on reducing VAT rate
from 20 % to 0 % for the raw material, solid biofuels and
heat produced based on biomass.
 Entering into force of the GD 1070/2013 on solid
biofuels, which ensures the quality of the solid biofuels via
introducing an accredited Laboratory on the market.
 Promoting the proposal for inclusion in the Government
Decision on measures for preparing the national
economy and social sphere for activity during the
autumn-winter the obligation of public institutions
managers to purchase and use fuels with the most optimal
quality-price ratio.

16. Strengthening the biomass market
and promoting the biomass use
 Promotion of the "soft loans„ tool as a financial product
to be offered for local producers of solid biofuels through
the Energy Efficiency Fund.
 Funding through Moldova Energy and Biomass Project and/
or EEF the installation of heat meters within already
existing boilers on biomass.
 Drafting the concept of the biomass (waste) traceability
(considering the introduction of certificate of origin
for solid biofuel).
 Drafting the concept of state reserves of solid biofuels.

17. Tool for biomass use support and
promotion
 Web portal –www.biomasa.md
 Biomass map potential available
 Map of installed biomass boilers
 b2b and b2c platform /under development/

18. Map of installed biomass boilers

19. National financing
institutions/funds in CC, EE, RES
Energy Efficiency Fund
The Fund was designed to identify, evaluate and
finance energy efficiency and renewable energy
resources projects that contribute to improving
energy consumption and reducing greenhouse
gas emissions.
The main objective of the Fund is to attract and
manage financial resources to finance and
implement energy efficiency and renewable
energy projects, in accordance with strategies
and programs developed by the Government

20. National financing
institutions/funds in CC, EE, RES
National Ecological Fund
The Fund was established with the aim of
financing environment protection related
projects.
The biggest part of the Fund is used for
water supply and sanitation, and waste
water treatment. Also, it is financing
forestry sector.

21. National financing
institutions/funds in CC, EE, RES
Moldovan Sustainable Energy Financing Facility (MoSEFF)
In September 2009 the first (MoSEFF) was launched in order to
support energy efficiency investments in Moldovan enterprises.
A credit line of 42 million Euro combined with a 5-20% grant
component was provided for on-lending to Moldovan companies
through EBRD’s partner banks. MoSEFF provides also technical
assistance to the projects through Fichtner - a leading German
engineering and consulting company.
MoSEFF loans are provided by local partner banks to Moldovan
companies applying for financing. MoSEFF loans start
from 10 thousand to a maximum of 2 million Euro.

22. National financing
institutions/funds in CC, EE, RES
Moldovan Residential Energy Efficiency
Financing Facility (MoREEFF)
The MoREEF Facility provides loans for energy
efficiency home improvements.
The borrowing households benefit from
investment incentives
The MoREEFF Facility funds are limited

23. Green Climate Fund
Discussions with UNEP on development of
a readiness support project for the
Republic of Moldova.

24. Thank you for your attention
VERONICA LOPOTENCO
Senior adviser
Analysis, Monitoring and Assessment of the
Policies Department
Ministry of Environment
lopotenco@mediu.gov.md