page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84
page 85
page 86
page 87
page 88
page 89
page 90
page 91
page 92
page 93
page 94
page 95
page 96
page 97
page 98
page 99
page 100
page 101
page 102
page 103
page 104
page 105
page 106
page 107
page 108
page 109
page 110
page 111
page 112
page 113
page 114
page 115
page 116
page 117
page 118
page 119
page 120
page 121
page 122
page 123
page 124
page 125
page 126
page 127
page 128
page 129
page 130
page 131
page 132

the most unecological means of transport. The amountof energy in the primary fuel necessary to get it goingis higher than with a diesel-fuelled car. However, thesame car fuelled, for example, directly by a wind powergenerator would be much more energy efficient. Emissions reduction which can be proven andcalculated can be traded in a similar manner to all-coloured energy certificates. The volume of thisreduction depends on many factors, including the typeof the energy carrier, the manner of limitation, theplace where the project is implemented and manyother. One interesting Polish initiative is the System ofGreen Investment, through which, based on concretemethods, the level of emissions reduction can becalculated for the purpose of efficient energy use, forexample in public utility buildings. There is one obstacle, however. To reduce emissions inan installation covered by the European TradingSystem, an Emissions Reduction Unit may beobtained only when the country in question has anappropriate reserve of allowances or when theallowances can be recovered solidarly from all theinstallations linked to the network. The reason behindit is to avoid the so-called "double calculation". Theprinciple is honest and just, but who would undertakethe political decision of exposing themselves to theenergy lobby? This very situation creates in Polandsome exceptional conditions for synergy to be takenadvantage of during the implementation of the 3x20by 2020 package. nABOUT THE AUTHORSKatarzyna Wojciechowska has been a commoditymarket analyst at Consus Since 2007. She focuseson the energy markets and issues related to theoptimisation of electricity purchase and energyefficiency. She is a graduate of the NicolausCopernicus University (major in FinanceManagement) and of the postgraduate studies at theWSB Schools of Banking in Poland (major inNegotiation and Mediation).Wojciech Piskorski has many years of professionalexperience in the field of international emissionsallowance trading mechanisms and risk management,with particular emphasis on verification andvalidation. He specialises in the analysis ofemissions reduction potential of related projects andprogrammes as well as their carbon footprint. Since2003 Wojciech Piskorski has been responsible forDet Norske Veritas' services in Poland in relation toclimate change. He is also Co-Founder of Carbon RiskManagement Partners, where he has preparedmethodology for calculating emission reduction forGreen Investment Scheme in Poland, and CEO ofCarbon Engineering Sp. z o.o. Mr Piskorski conductedthe first in Poland course for auditors in 2004.REGIONAL PERSPECTIVES045The end user consumes energy supplied with the helpof the network that has defined losses and operatesplants with energy efficiency lower than 100 per cent.Therefore, to use, for example, 1MWh of energy inorder to operate a machine, the power generating plantmust supply to the network a higher amount of energyto also cover all energy losses. As the volume ofemissions falling to 1 MWh of energy used correspondsto the amount of fuel burnt to produce it, we deal withthe so-called index of outlay of unrenewable primaryenergy, which expresses all losses related to thegeneration and transmission of energy. This indexobviously depends on the condition of the network, thetype of equipment used etc and so on. This index isalways larger than one and may even amount to three.Therefore, in Poland, a saving of 1 MWh of energy atthe receiver's end is more effective from the emissionsreduction point of view than a reduction in the value ofproduction by the above mentioned 1 MWh in thepower generation plant. Due to this state of affairs, anelectric car fuelled by the energy from the network is

ransition economies of Central andEastern Europe (CEE) produced 7.4 percent of the world GDP and emitted 11.5per cent of energy-related global CO2emissions in 2007. The EBRD, whose mandate is topromote the transition of the region to a modern marketeconomy, considers climate change mitigation animportant element of this process.A number of the most energy intensive economies inthe world are located in the CEE region, includingAzerbaijan, Kazakhstan, Ukraine and Uzbekistan. Dueto heavy reliance on fossil fuels, and obsoletetransformation and delivery technologies, carbonintensity is also high in the region, with Ukraine carbonemissions per unit of GDP being almost three timesthat of Germany. Driven by the sharp economic restructuring involving theclosure or downsizing of large energy intensive industriesbetween 1990 and 2000, emissions in the regiondecreased by 33 per cent. This reduction was a majordeterminant in keeping global emissions from growingeven faster than they did over that period. However,since 2000, this pattern has been reversed as economicgrowth and emissions from the region have been risingagain. While the high energy intensity of the region stemsnot only from wasteful practices or economic structurebut from its climate and geography, the continued highlevels of energy and carbon intensity mean that theRight:The most energy-intensive economies ofthe world are in the transition region -including Azerbaijan,Kazakhstan, Ukraine and UzbekistanSCALING-UP CLIMATE FINANCING IN THE TRANSITION REGIONREGIONAL 046PERSPECTIVESTTHOMAS MIROW, PRESIDENT, EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)?