united nations industrial development ......industrial development (isid). isid addresses all three...

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

Project of the Regional European Union initiative for Environment (EU4Environment) for the

European Union’s Eastern Neighbourhood (EaP)

Project number: 170223

Project title: The European Union for Environment (EU4Environment) Action

Thematic area code EAE

Starting date: December 2018

Duration: 48 months

Project site: Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine (EaP Region)

Government Counterparts

Ministry of Economy (or Industry) and Ministry of Environment of the participating countries

Implementing partners: United Nations Economic Commission for Europe (UNECE) United Nations Environment Programme (UN Environment)

Project Inputs (EUR):

- Support costs (7%): EUR 259,322

- Co-funding (5%): EUR 198,195

- Grand Total: EUR 3,963,915

Brief description:

The European Union for Environment (EU4Environment) initiative aims to bring a higher level of

environmental well-being for citizens in the Eastern Neighbourhood while also enabling the six

partner countries to grasp opportunities of greener economic growth and preserve their natural capital. EU4Environment is a joint action for a regional program in the European Union’s Eastern Partnership

region (EaP) funded by the EU (through decision C(2017) 7963 final1 as of 27.11.2017). The

programme will be implemented jointly by the Organization for Economic Cooperation and Development (OECD), UN Economic Commission for Europe (UNECE), UN Environment

Programme (UN Environment), the World Bank Group (WBG) and UNIDO.

This document focuses on the activities to be carried out by UNIDO under Result 2 (Output 2.1 and

2.2) within the framework of the overall programme. The UNIDO activities will support the adoption

and promotion of Resource Efficient and Cleaner Production (RECP) in the six EU’s EaP countries; Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova, and Ukraine. The implementation of

the project will build upon the results and achievements of the regional RECP Demonstration

Component implemented as part of the EU-funded EaP GREEN Programme 2013-2018 (SAP ID 120143) completed in April 2018.

The project will apply proven preventive environmental approaches and productivity concepts of the RECP methodology as a cornerstone of a transition to a Green Economy in the region. As part of the

intervention, the project will demonstrate the business case for resource efficiency and cleaner

production in companies of the region; contribute to building capacity for RECP service delivery; and introduce advanced RECP approaches like best practices of eco-industrial parks (EIPs) and circular

economy (CE).

1 CRIS numbers: ENI/2017/040-280, ENI/2018/040-314, ENI/2019?040-315 financed under European Neighbourhood Instrument.

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Contents A. CONTEXT ...........................................................................................................................................3

B. REASONS FOR UNIDO ASSISTANCE .....................................................................................................3

C. THE PROJECT .....................................................................................................................................7

C.1. Objective and Outcomes of the project .......................................................................................7

C.2. The UNIDO approach ..................................................................................................................7

C.3 RBM code and thematic area code ...............................................................................................9

C.4. Outputs and activities .................................................................................................................9

Output 2.1: Resource Efficient and Cleaner Production among SMEs scaled up .................................9

Output 2.2: Concept and tools of the EU Single Market for Green Products (SMGP) initiative

introduced and promoted ...................................................................................................................9

C.5. Timeline of the activities .............................................................................................................9

C.6. Risks ......................................................................................................................................... 12

D. INPUTS ............................................................................................................................................... 12

Procurement modalities ................................................................................................................... 13

Gender Mainstreaming..................................................................................................................... 14

E. BUDGET ............................................................................................................................................... 14

F. MONITORING, REPORTING AND EVALUATION .................................................................................... 15

Communication and Visibility ......................................................................................................... 16

H. LEGAL CONTEXT ................................................................................................................................. 16

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A. CONTEXT

See Part 3 Background of Annex I. Description of the Action and paragraphs 19-21 for UNIDO-

specific outputs.

B. REASONS FOR UNIDO ASSISTANCE

The mission of UNIDO, as described in the Lima Declaration adopted at the fifteenth session of

the UNIDO General Conference in 2013, is to promote and accelerate inclusive and sustainable

industrial development (ISID). ISID addresses all three dimensions of sustainable development:

social equity, economic growth, and environmental protection. Since the early 1990s, UNIDO has

been implementing a number of programmes that promote cleaner technologies and/or preventive

environmental management in the industrial sector. These initiatives have now provided a solid

evidence base demonstrating the opportunities and benefits sustainable industrial development

can offer enterprises, as well as for the protection of the environment and local economic

development.

As the UN's specialized agency responsible for inclusive and sustainable industrial development,

UNIDO supports countries by working with the Government and the private sector to strengthen

economic development, while at the same time promoting an environmentally sustainable

industry. Through the Resource Efficient and Cleaner Production (RECP) programme, UNIDO

has demonstrated that industries can increase their productivity and become more competitive,

while improving their environmental performance. By working directly with the private sector,

UNIDO has the advantage of being able to provide experience-based information to policy

makers to help create an enabling environment which supports the transition towards a green and

circular economy. UNIDO and UN Environment have collaborated through the RECP programme

for over 20 years, including through the RECPnet, which worked in over 60 countries

demonstrating that the approach is applicable across a wide variety of sectors and economic

conditions.

Through the relevant programming cycles of the United Nations System and the resulting United

Nations Development Assistance Frameworks (UNDAF), UNIDO and other UN agencies have

been tasked to support EaP countries with the promotion of sustainable production practices and

techniques, as summarized in Table 1.

Table 1: UNDAF contexts for Sustainable Production in EaP Countries Country UNDAF Outcome

Armenia (2016-2020)

7: By 2020 Sustainable Development principles and good practices for

environmental sustainability resilience building, climate change adaptation and

mitigation, and green economy are introduced and applied.

Azerbaijan (2016-

2020) 3.1: By 2020, sustainable development policies and legislation are in place,

better implemented and coordinated in compliance with multilateral

environmental agreements, recognize social and health linkages, and address

issues of environment and natural resource management, energy efficiency and

renewable energy, climate change and resilience to hazards and disasters

Belarus (2016-2020)

3.1.1.: By 2020, policies will have been improved and measures will have been

effectively implemented to increase energy efficiency and the production of

renewable energy, to protect landscape and biological diversity, and to reduce

the anthropogenic burden on the environment Georgia (2016-

2020 framework document)

4 – Underlying disaster risk factors are reduced, focusing on sustainable

environmental and natural resource management.

Republic of

Moldova (2018-

2022)

3: The people of Moldova, in particular the most vulnerable, benefit from

enhanced environmental governance, energy security, sustainable management

of natural resources, and climate and disaster resilient development

4

Country UNDAF Outcome

Ukraine

Partnership

Framework

(2018-2022)

1.2. By 2022, national institutions, private business and communities implement

gender-responsive policies and practices to achieve sustainable management of

natural resources, preservation of ecosystems, mitigation, adaptation to climate

change and generation of green jobs

Greening the Economy through Resource Efficient and Cleaner Production (RECP)

Cleaner production (CP) is a preventive environmental strategy that can be applied to processes,

products and services to prevent the generation of waste and emissions, and thereby reduce risks

to humans and environment and improve the efficiency of resource use (‘eco-efficiency’)2. The

Cleaner Production Programme launched by UNIDO and UN Environment in 1994 had an

objective of increasing the competitiveness and productive capacity of industry, specifically

Small and Medium Enterprises (SMEs), through implementation of CP and application,

adaptation and diffusion of ESTs3. The main modus of programme implementation was through

the creation of National Cleaner Production Centres (NCPCs) and in some countries through

National Cleaner Production Programmes (NCPPs). The NCPCs/NCPPs were initially established

as project management units administered by UNIDO and/or UN Environment. However, over

time these became increasingly independent, both administratively as well as financially, through

the establishment of a national institutional and governance arrangement, either in one centralized

agency or by coordinating the different inputs from various agencies. The Programme supported

activities in about 70 countries in Africa, Asia, Latin America and Eastern European countries. In

2017 around 2/3rds of these operated without core-funding from UNIDO and/or UN Environment,

generating income from different sources (fee for services, project implementing partners or

national government allocations, under e.g. environment or innovation policies). Of special

relevance for the present project are the experiences in the Eastern European and Central Asian

Region, including from Romania, Bulgaria, Ukraine, Czech Republic, Slovakia, Hungary,

Croatia, Russian Federation, Albania, Macedonia, Serbia and Uzbekistan (see box 1, for the

specific status in EaP countries).

Box 1: National Cleaner Production Programme Status in EaP countries (2018)

Ukraine

The Cleaner Production Programme in Ukraine was established in 2007 at the “Kyiv Polytechnic Institute”. The

activities were targeting three regions: Kiev, Vinnitsa, Zaporozhe. From 2007 to 2010, more than 30 national experts

were trained on Cleaner Production, 17 technical assessments were carried out, which identified total savings of 1.1

million euro for an investment of approximately 0.9 million euro. Key sectors were chemical industry, metal

processing, food processing, and construction materials.

Following the encouraging results obtained during 2007-2010 a 5 year project for establishing the Cleaner Production

Centre-Ukraine was developed and approved by UNIDO, the Ukrainian Government, and the Austrian and Swiss

donors in 2011.

Another project (2012-2018) built on the results of the former project and focused its activities on building capacity

of national experts with regard to RECP, implementing assessments and supporting RECP technology projects in

companies from the selected priority sectors (chemicals, agro-processing, metallurgical and metal processing

industries) and regions (Kiev Region, Krym (Crimea)/Kherson, Luhansk, Lviv, Vinnytsia and Zaporizhia). A number

of specific training and pilot projects on Chemical Leasing were carried out in Ukraine and in countries from the

Black Sea area to foster regional cooperation.

EaP GREEN Programme’s Demonstration component served as a complimentary support to the already built

capacity and implementation of RECP principles in the country. Specifically new regions and new initiatives were

covered, including introduction of RECP Clubs and related trainings, RECP assessments in construction materials

sector, development of study programs on RECP for universities, awareness raising about RECP and its contribution

to circular economy and eco-innovation in the country.

2 E.g.: UNEP, Government Strategies for Cleaner Production, United Nations Environment Programme, Paris, 1994; WBCSD, Eco-Efficiency, World Business Council for Sustainable Development, Geneva, 2000, and Van Berkel, R., Cleaner Production and Eco-

Efficiency in Marinova, D et al (eds), International Handbook on Environmental Technology Management, Edgar Elgar Publishers,

Sheffield, UK, 2007 3 See also: Taking Stock and Moving Forward: the National Cleaner Production Centres, UNIDO/UNEP, May 2010,

www.unido.org/cp.

http://www.unido.org/cp

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Republic of Moldova

The preparatory stage for the National Cleaner Production Programme in the Republic of Moldova was undertaken during 2009 - 2010, with funding support from Government of Czech Republic. A first group of national experts

were trained and conducted RECP assessments in five enterprises from the food and construction materials sectors,

whilst in additional awareness and consultation workshops were held. From 2011-2015, the Government of Austria,

under the joint auspices of the Ministries of Economy and Environment, funded a project to establish a National

Cleaner Production Programme. The project targeted agro-food processing, construction materials and municipal

services’ provision. RECP assessments were undertaken in demonstration companies, and results and experiences

were scaled up through regional replication programmes, RECP Clubs. Moreover, support to the development of a

national RECP strategy was provided contributing to the national policy framework on Green Economy and to a

Green Economy Roadmap (2015).

The EaP GREEN Demonstration component further contributed to RECP expansion; it supported through support to

RECP clubs and building national capacity on RECP. Furthermore, the National Cleaner Production Center was

established in Moldova in 2017.

Armenia

During 2007-2008 UNIDO supported preliminary activities for the establishment of a NCPP in Armenia in

partnership with the Ministry of Nature Protection. Several awareness raising workshops and stakeholder

consultations were undertaken as well as preliminary RECP assessments conducted in minerals processing and

chemical sectors, which demonstrated good potential.

The EaP GREEN Demonstration component implementation (2013-2017) developed national capacity, raised

awareness and expanded application of the RECP methodology beyond the capital region of the country. In 2017 the

Government announced its intention to establish a Green Economy Center to continue to build capacity and continue

RECP application to further transition towards a Green Economy in the country.

Azerbaijan

At the request of the Government of Azerbaijan, UNIDO undertook preparatory activities to assess interest and potential scope for a NCPP in 2008. Several awareness raising workshops and stakeholder consultations were held,

resulting in a proposal to launch a full scale RECP programme addressing non-oil sectors. Even though fund-raising

for implementation was unsuccessful, the Government of Azerbaijan has repeatedly renewed its request for UNIDO

assistance to develop and implement a full-fledged national RECP Programme in Azerbaijan. The EaP GREEN

Demonstration component on RECP, funded by the EU from 2014-2017, was a first opportunity for UNIDO to

introduce principles of RECP in the SMEs with a focus on food, chemicals and construction materials sectors.

Belarus

RECP was first introduced as a part of EU-funded EaP GREEN RECP Demonstration component 2013-2017. The

project conducted RECP assessments in companies to demonstrate the benefits of the RECP methodology for

industries in all regions of the country; it also carried out both regional and sectoral RECP Clubs, and training and

capacity building activities. Furthermore, in September 2016 the National RECP Center was established, hosted by

the Belarus State University.

Georgia

RECP was introduced in Georgia through the implementation of the EaP GREEN RECP Programme from 2013-

2017; the programme in Georgia benefited from EU funding as well as contribution of the Development Bank of

Austria. The RECP Demonstration component contributed to capacity building and the development of business

cases on resource efficiency in SMEs; it also expanded to several regions of the country through four RECP clubs and

stimulated dialogue on financing through the preparation of feasibility studies for investments in clean technologies

and RECP measures in demonstration companies. The Green Economy Center was established in 2017 to continue

offering RECP services in the country.

UNIDO Mandate

The integrated benefits of RECP are graphically depicted in Figure 1. RECP uses proven cleaner

production (CP) practices and techniques as a springboard for comprehensive improvements in

business operations, covering aspects such as mitigation of GHG and other emissions, reduction

of waste and effluents, conservation of energy, materials and water, resource productivity and

Environmental Management Systems (EMS).

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Figure 1: Scope and benefits of Resource Efficient and Cleaner Production

Resource Efficient

and Cleaner

Production (RECP)

Production EfficiencyEnvironmental

Management

Human Development

The global UNIDO-UN Environment RECP Programme aims to improve resource productivity

and environmental performance of businesses and other organizations and thereby contribute to

the promotion of sustainable industrial development and Circular Economy in participating

countries.

Result 2, Circular economy and new growth opportunities, of the regional EU4Environment

Program aims at further demonstrating the applicability and benefits of RECP in all EaP

countries, and creating capacities and change agents for scaling-up the application of RECP,

including through regional networking and peer learning among EaP countries. It is also opening

up new opportunities for introducing advanced RECP approaches such as the introduction of best

practices of eco-industrial parks (EIPs) into existing industrial parks/zones and introducing

concepts of circular economy. Additionally, work on life cycle analysis of selected export-

oriented products and ways to adjust those products to the EU Single Market for Green Products

(SMGP) will allow exploring the potential of some manufacturers in selected countries of the

region to access EU markets.

Relevant Activities and UNIDO Mandate

The experiences of past and ongoing projects under the RECP Programme have demonstrated that

RECP is relevant for businesses in the region, and provides benefits such as improved

productivity, better product quality and reduced environmental impacts. As the Region is

pursuing a regional integration agenda and closer ties with the EU, pressure to improve

environmental performance and energy and water prices will increase, leading to stronger

incentives for enterprises to consider and implement RECP. However, the ability of enterprises

and other organizations to respond in a proactive manner to such changes in the business

environment is critically dependent on having access to a supply of value-adding RECP services

that are appropriate and adapted to the present day realities experienced by enterprises in the

Region. It is therefore critical to further develop, professionalize and institutionalize the RECP

service delivery capacity in all countries in the EaP Region.

In the course of implementation, operational synergies will be sought with related ongoing

UNIDO projects in the region, in particular related to energy efficiency (introduction of Energy

Management System (EnMS) and systems optimization, currently underway in the Republic of

Moldova and Ukraine with funding from the Global Environment Facility (GEF)), and the

pipeline project for Georgia on energy management and POPs reduction in industries targeting

GEF funding.

Other relevant, on-going projects in the region with which synergies will be explored are:

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Regional

Regional Demonstration Project for Coordinated Management of ODS and POPs Disposal

in Ukraine, Belarus, Kazakhstan and Armenia

Armenia

“Implementation of BAT and BEP for reduction of UP-POPs releases from open burning

sources in Armenia”(GEF)

Minamata Convention Initial Assessment (MIA) in the Republic of Armenia:

ArmCTCN: Climate Technology Center and Network in Armenia

Georgia

Reducing Greenhouse Gas (GHG) Emissions through Improved Energy Efficiency in the

Industrial Sector in Georgia

PCB-free electricity distribution in Georgia

Moldova

Reducing Greenhouse Gas Emissions through Improved Energy Efficiency in the

Industrial Sector in Moldova. GEF financing; implementation till October 2018.

Country Programming Framework for the Republic of Moldova

Ukraine

Promoting the adaptation and adoption of Resource Efficient and Cleaner Production

through the establishment and operation of a Cleaner Production Centre (CPC) in

Ukraine; 2012-2017. The project is extended till 2018.

Introduction of energy management system standard in Ukrainian industry (2014-

2019)

EnMS and ESO Awareness Activities; National Capacity for Implementation and

Certification of EnMS Standards in Industry

C. THE PROJECT

C.1. Objective and Outcomes of the project

The general objective of EU4Environment is to help the EaP countries preserve their natural

capital and increase people's environmental well-being by supporting environment-related action,

demonstrating and unlocking opportunities for greener growth, and setting mechanisms to better

manage environmental risks and impacts. The specific objective and outcome for Result 2 are:

Results Objective Outcome

2 Circular economy and new growth opportunities:

Scale-up public and private action on circular

economy and sustainable production and lifestyles

Incentives strengthened and capacity

raised for sustaining positive trends in

resource and energy efficiency

For more information of programme level objectives see section 1. Goals and Overall

Architecture of the Annex I. Description of the Action.

C.2. The UNIDO approach

While keeping with the overall goals and targets of the project UNIDO will tailor activities to the

needs and priorities of each country. Taking into consideration the national RECP project

currently under implementation in Ukraine with funding from the Governments of Switzerland, as

well as the different levels of RECP maturity achieved in the 6 countries during the

implementation of EaP GREEN, EU4Environment will focus mostly on further promotion of

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RECP in Armenia, Belarus and Georgia. Due to capacity difficulties experienced during EaP

GREEN special attention will be given to capacity building activities in Azerbaijan. Moldova and

Ukraine, who are at a more advanced stage, will have a larger focus on the introduction of RECP

advanced solutions and scaling up activities.

The following strategic directions will be undertaken to consolidate RECP and related Green

Economy initiatives in the EaP countries:

The scope of the Regional Programme is to build capacity in Resource Efficient and Cleaner

Production. It will fosters a business-oriented approach that aims to capture benefits with regards

to production efficiency, reduction of wastes and emissions and safer and responsible production

and bolsters companies’ social responsibility.

Priority sectors for the Regional RECP Programme will have good development potential

across the region, whilst contributing to improvements in living standards and regionalization of

economic growth and job creation. Further refinement and scoping to sub-sectors and target

enterprises will be undertaken in consultation with and upon endorsement of partner countries in

order to ensure synergies with national industrial development and environment priorities and to

maximize socio-economic and environmental benefits of the intervention.

Further development of networks of national RECP experts and advocates will be conducted

to create a platform for RECP implementation in SMEs. The national experts will be involved in

follow up of the assessment findings (i.e. implementation of feasible RECP opportunities) and

monitoring of actual benefits achieved (using the common indicator set of resource productivity

and pollution intensity indicators) in order to further demonstrate the business case of RECP

within the local context. These records of achieved benefits will be widely disseminated in order

to generate awareness, mobilize participants for the replication programmes and undertake

advocacy for policy change conducive to RECP implementation. Advanced training on specific

RECP technologies will be provided to enhance knowledge of experts and to provide enterprises

with the best available modern technologies and solutions available. Exchange of experience

between experts and enterprises will be stimulated through RECP Clubs of enterprises and

experts, where this knowledge will be made available at the national and regional level.

Complementary training will be provided to RECP experts and service providers to build

capacity in RECP financing skills, fundraising and business development plans to offer RECP

services on a commercial basis. The strengthening of entrepreneurial capacities of technical

experts and service providers will contribute to ensuring the long term sustainability of RECP in

the region by helping them learn how to approach potential clients and offer an integrated

packages of services to companies.

Further promotion of RECP Clubs will be performed. The RECP clubs will be linked with

business organizations (e.g. local chambers, industry clubs) and/or local/regional government or

development institutions to ensure their sustainability and replicability. Networking among club

companies will be stimulated to create a sustained interest in RECP application.

RECP capacity and application will be used to launch discussions on the application of

circular economy (CE) as a way forward to sustainable production. In pilot countries options for

application of specialized tools like EIPs and waste management maps will be explored together

with national governments.

The project will also consider application of the EU-driven Life Cycle Analysis (LCA)-based

methodology to stimulate export-oriented manufacturers to green their business processes, to fit

for the Single Market for Green Products (SMGP) program of the EU.

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C.3 RBM code and thematic area code4

RBM code: EC32 (RECP and Low Carbon Industrial Production)

Thematic area code: EAE

C.4. Outputs and activities

UNIDO is responsible for the following Outputs and activities under Result 2. on “Circular

economy and new growth opportunities”.

Output 2.1: Resource Efficient and Cleaner Production among SMEs scaled up

Activity 2.1.1: Eco-industrial parks feasibility

Activity 2.1.2: Supporting RECP Clubs

Activity 2.1.3: Promoting Circular Economy – Waste mapping in municipalities

Activity 2.1.4: Training national experts

Activity 2.1.5: RECP Assessments

Activity 2.1.6: Raising awareness and sharing knowledge

Activity 2.1.7: Further institutionalising RECP

Output 2.2: Concept and tools of the EU Single Market for Green Products (SMGP)

initiative introduced and promoted Activity 2.2.1: Mapping of existing practices and barriers for existing labelling schemes

Activity 2.2.2: Awareness and understanding of SMPG opportunities and benefits

Activity 2.2.3: Piloting product environmental footprint (PEF) in selected industries

For a detailed description of the Activities, including activities covered by implementing partners,

please see Annex 1 Description of the Action, Section 3, Targets and Activities.

C.5. Timeline of the activities

The implementation period of the project is 48 months; in addition there would be 6 months for

reporting, evaluation and closure activities in line with Art. 11 of the General Conditions.

The following table shows an indicative timeline of activities for Outputs 1.1 and 1.2. Overall

indicative timeframe of activities to be implemented under the Action is provided in the Annex 1

Description of the Action, Section “Indicative timetable of the Action”.

Table 2.Timeline of UNIDO-led Activities Principal

Activities

Year 1 Year 2 Year 3 Year 4 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q

14

Q15 Q16

Output 2.1. Resource Efficient and Cleaner Production among SMEs scaled up

2.1.1. Eco-industrial parks feasibility (in selected countries)

Analysis of

existing industrial

parks

A set of

recommendations to “green”

existing parks

2.1.2. Supporting RECP Clubs

Recruiting

municipalities for

4 The theme codes are: EAE, PRP and TCB

10

Principal

Activities


14

Q15 Q16

RECP Clubs

Identifying and

recruiting

companies-members of

RECP clubs

Delivery of

replication

programmes

Evaluation of

replication

programme

Monitoring of

RECP measures

implementation

and companies’

support

2.1.3. Promoting Circular Economy (CE) (in selected countries)

Awareness events

on CE concepts

and approaches

Identification and

assessment of

waste sources

from production

activities

Identification of

recycling options

for identified

waste sources

Preparation of

waste maps in 3-5 municipalities of

selected pilot

countries

2.1.4 Training national experts on RECP methods and approaches

Trainee experts

identified and

recruited

Training program

conducted

Advanced RECP

training modules

identified and

implemented

2.1.5 RECP Assessments

Recruitment of

demonstration

companies

Assessment by

RECP trainees

RECP

implementation

support

Monitoring and

success stories

11

Principal

Activities


14

Q15 Q16

2.1.6. Raising awareness and sharing knowledge

National RECP websites

(re)launched and

regularly updated

National RECP

Conferences

Thematic

awareness events

Knowledge

sharing platform

development and

launched; regular

alumni meetings

Regional expert

meetings

2.1.7 Further institutionalising RECP

National steering

committees

established

National support

institutions

identified and

recruited

National capacity

and institutional

activities

regularly planned

Output 2.2: Concept and tools of the EU Single Market for Green Products (SMGP) initiative

introduced and promoted

2.2.1. Mapping existing practices and barriers for existing labelling schemes (for pilot

countries)

A study on eco-

labelling

Mapping of

barriers in pilot countries in view

of SMPG

application

2.2.2 Awareness and understanding of SMPG opportunities and benefits

Promotion of

PEF application

and identification

of export-oriented

industries for its

application

Identification and

recruitment of pilot enterprises

Analysis of pilot

enterprises

Training on

SMPG

2.2.3: Piloting product environmental footprint (PEF) in selected industries

12

Principal

Activities


14

Q15 Q16

Development of

pilot PEF

application for selected

enterprises

Test of PEF

methodology

C.6. Risks

See Section 10. Risks and Assumptions of the Annex I. Description of the Action.

D. INPUTS

See Section 4.Methodology, Subsection “Implementation Teams” under Action Implementation

Team at UNIDO of the Annex I. Description of the Action. Relevant governance and

implementation structure of the UNIDO component is presented below:

13

Schematic EU4Environment Governance Structure

Procurement modalities

On the basis of the agreement with the EC for the indirect management of Results 1 and 2,

UNIDO will arrange direct contracts with UNECE and UN Environment in the format of UN

Agency to UN Agency Contribution Agreement. Through these agreements UNIDO will apply

the same conditions to the implementing partners imposed on it by the donor through the Special

Conditions agreement and the General Conditions applicable to the EU contribution agreements

with international organizations. Reporting, both on progress of activities and financial

expenditures will be carried out in line with the General Conditions (Art. 2). UNECE and UN

Environment will be responsible for the implementation of Result 1 and Outputs 2.3-2.6 of Result

2; while UNIDO will be responsible for Outputs 2.1 and 2.2 of Result 2.

UNIDO will receive funding for the programme through yearly tranches from the donor, based on

reaching the established threshold of expenditures (Article 15 of the General Conditions). The

partners must collectively reach the threshold in order to request each instalment; however, if

there are delays by one of the partners UNIDO will only transfer their next instalment when the

corresponding threshold has been reached.

For the purposes of implementing its activities under the Outputs 2.1 and 2.2, UNIDO will,

contract national implementing partners (organizations) by means of competitive tendering.

National Implementation Partners (NIPs) will be contracted to carry out the implementation of

key activities such as trainings, RECP assessment, awareness raising, etc., under the guidance of

UNIDO. The project will use this implementation modality to build capacity among local RECP

service providers on the delivery of these services to businesses in the region. The local RECP

NIPs are the organizations (public or private institutions) which have substantial experience

and/or capacity and experts’ network to work with manufacturing SMEs assessing the use of

resources and providing advice on implementing the RECP solutions. A tentative list of NIPs has

already been collected based on the experience of the EaP GREEN project; the list will be further

developed during the inception phase. The activities and responsibilities of the contracted local

partners will be based on detailed ToR to be finalized during the inception phase of the project.

Close monitoring and supervision will be carried out throughout the project duration to ensure the

timely delivery of activities, cost-effectiveness and that targets are met.

UNIDO Project

Manager

National Implementation Committee

(NIC)

UNIDO International Coordinator

National Action Coordinators

(NACs)

Expert Pool (short and long term national and international)

National Implementation Partners and/or Technical Topic Managers

Supporting: publication, events, facilities and operational needs (including interpretation and communication)

Action Partners Coordination

Board (CB)

Countries’ Regional

Assembly (RA)

Regional Level

National Level

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Gender Mainstreaming

When it comes to employment and business opportunities, there is a considerable level of gender

inequality in the EECCA region. Women remain remarkably absent from the political structures

of power, be it in the executive or in the parliamentary branch, mainly due to discriminatory

practices. They represent in average 14% of ministers and 16% of parliamentarians. In the

economic field, despite the fact that women are generally have a higher level of education than

men, they represent 10% of members of the governing bodies of employers’ organisations and

15% trade unions’ members. Gender pay gap is generally important but with important

discrepancies among EaP countries (between 24% and 50%), while horizontal and vertical

segregation of the labour market is critical. Women thus tend to accept underpaid or even

unregistered jobs, in particular in rural areas, or they turn to entrepreneurship activities5. Women

actually represented a large part of entrepreneurs or business owners but they do face the same

barriers as in the EU, mainly due to prevailing gender stereotypes and male-dominated sectors.

The objective of this project is to integrate application of RECP into manufacturing activities of

SMEs and sometimes even micro-enterprises of EaP countries. As this work was partially

implemented in Ukraine during the RECP centre establishment phase, experience from Ukraine

like introducing mandatory sensitization courses into RECP trainings to raise awareness regarding

gender issues as well as promoting enrolment of women in technical training will be shared with

other countries.

Full description of project activities related to gender mainstreaming is provided in the Section

11. Cross-cutting issues of the Annex I (DoA).

E. BUDGET

At the programme level, the total EU contribution to the action is EUR 19.5 million. It will be

complemented with EUR 1.05 million in co-financing leveraged by the implementing partners.

The contribution from the EU for Results 1 and 2 amounts to EUR 9.7 million. As a multi-donor

action the EU funding will be complemented by third party contributions in the amount of 5% co-

financing (EUR 510,000). Each partner organization (UNIDO, UNECE and UN Environment)

will contribute the corresponding 5% co-financing for their activities. The following table shows

the budget distribution per Results and per organization.

Table 3. UNIDO-led Results - Joint Budget for Results 1 and 2

Result 1 Result 2 TOTAL

UNECE UN Env UN Env UNIDO

Project activities 2,228,679 1,486,173 2,122,611 3,704,593 9,542,056

Project Support Costs,

7% 156,008 104,032 148,583 259,322 667,944

TOTAL Budget 2,384,687 1,590,205 2,271,194 3,963,915 10,210,526

TOTAL per Result 3,974,892 6,235,634 10,210,526

Co-financing 5% 119,234 79,510 113,560 198,222 510,526

EU contribution 2,265,453 1,510,690 2,157,634 3,766,223 9,700,000

Total EU contribution

per Result 3,776,143 5,923,857 9,700,000

5 EIGE report on gender equality and decision-making in the EaP countries, 2015

http://eige.europa.eu/sites/default/files/documents/gender_equality_and_decision_making_in_eap_countries_2015_-_report_and_annex_one_file.pdf



15

As per the above table, UNIDO’s budget for project implementation is EUR 3,964,440, with a co-

financing amount of EUR 198,222. Strategy of fundraising for co-financing includes negotiations

with donors of the previous regional program (EaP GREEN), including Slovenian Government

and the Development Bank of Austria (DBA). Both contributions are to be confirmed during the

inception phase of the project.

The budget for the Regional RECP Programme is summarised by budget line in Appendix 1. The

project budget includes an allocation for time spent by UNIDO core staff (project manager and

project assistant summed up over the project duration). Project support costs are based on 7% as

per the General Conditions for funding agreements by the European Commission.

F. MONITORING, REPORTING AND EVALUATION

UNIDO is responsible for the overall implementation and oversight of the EU4Environment

Results 1 and 2; however, it is important to note that each implementing partner is responsible for

the monitoring of activities developed under their corresponding Outputs. UNIDO will undergo

implementation agreements with UNECE and UN Environment for the implementation of the

whole Result 1 and Outputs 2.3-2.6 of Result 2; and will implement Outputs 2.1. and 2.2. of the

Result 2 directly.

UNIDO will collect the reports prepared by each partner and conduct a quality check for

subsequent submission to the donor. The progress and final reports will provide the donor

information on the implementation of the project activities. The reports will consist of a narrative

part and a financial part. It is important to note that all requirements for reporting that UNIDO

must comply with the European Commission will also apply between the implementing partners

and UNIDO so that UNIDO can inform the EC accordingly.

A progress report will accompany every request for pre-financing or interim payments; this is

estimated to be every 12 months but may vary slightly depending on the progress of activities.

The final report will cover the entire implementation period. It will summarize the information

provided through the progress reports, as well as details on the transfers of assets. In addition, it

shall provide a full summary of the Action’s income (if applicable), contributions received and

cost incurred.

Each partner will have their own local arrangements for the collection of information on the

progress of each sub/component. For UNIDO this will be accomplished, in general, through the

service providers and local partners in each country but specifics will vary depending on the exact

nature of the activity. Nevertheless, in the case of all subcomponents ultimate responsibility for

monitoring and reporting on the project activities rests with the executing partner.

The final evaluation of the project is going to be organized by the EC outside of the project scope

and budget of the current project.

The following table presents the Monitoring and Evaluation Plan, specifying the responsible

parties and an indicative budget:

Type of M&E activity Responsible Parties Budget

EUR Time frame

Design of M&E data system to

collect and record data (including baseline data), and define

objectively verifiable indicators

The UNIDO Project

Management Unit (PMU)

0a Start of project

16

Type of M&E activity Responsible Parties Budget

EUR Time frame

Regular monitoring of progress (implementation of activities,

expenditures, delivery of outputs,

resource use, risk management) and analysis of M&E

data/indicators

UNIDO/PMU + local

contractors, 0a

Regularly to feed into project management

and progress reports

Review of progress and

Objectively Verifiable Indicators (OVI – Logframe)

National project

coordination team under guidance of UNIDO

0a

Regularly to feed into

project management and progress reports

Progress Reports

PMU/UNIDO; UN

Environment; UNECE.

PMU UNIDO to validate and finalize for submission

to EC

0a Every 6 months

Annual Project Report, including

technical & financial report

PMU/UNIDO; UN

Environment; UNECE. PMU UNIDO to validate

and finalize for submission

to EC

0a Annually

Steering Committee Meeting (annual)

OECD (led), and implementing partners

20,000 Annually

Lessons learned

Led by Communication

Result 5 of the project

(OECD), with contributions from UNIDO, UN

Environment and UNECE

0b

By the end of project

implementation;

annual as part of periodical events and

regular reporting

Monitoring visits to countries

(Outputs 2.1. and 2.2. of the

Result 2)

UNIDO/PMU 78,000c

Periodic based on

workplan, at least once per year per country

(on a need-be basis)

TOTAL indicative cost a The costs are covered under Project Management Costs b The costs are covered by partners through the component or sub-component’s execution funds c UNIDO Travel costs only, the personnel costs are included in the Project’s Management Costs and or in partners budgets

98,000

For more information on M&E at programme level see Section 5. Reporting, Monitoring and

Evaluation of the Annex I. Description of the Action.

Communication and Visibility

See Section 6.6 of the Annex I. Description of the Action.

H. LEGAL CONTEXT It is expected that each set of activities to be implemented in the target countries will be governed by

the provisions of the Standard Basic Cooperation Agreement concluded between the Government of

the recipient country concerned and UNIDO, or – in the absence of such an agreement – by the

following: (i) the Standard Basic Assistance Agreement concluded between the recipient country and

UNDP; (ii) the Technical Assistance Agreement concluded between the recipient country and the

United Nations specialized agencies, or (iii) the Basic Terms and Conditions Governing UNIDO

Projects. Also included as a footnote 29 on p.51 of the Annex I (DoA).

17

Appendix 1 – Joint Yearly Budget for the Project’s Results 1 and 2 per Output. RESULT 1 - Greener decision-making Year 1 Year 2 Year 3 Year 4 Total

SEA/EIA further operationalized

Staff, Personnel & Consultant Costs * 380,265 491,110 397,341 242,017 1,510,733

Travel 9,082 12,659 4,610 18,112 44,463

Contractual Services and Events 100,706 308,903 169,562 85,712 664,883

Supplies, commodities, vehicles, equipment, operation 2,150 2,150 2,150 2,150 8,600

Subtotal Direct Costs 492,203 814,822 573,663 347,991 2,228,679

Indirect Costs, 7% 34,454 57,038 40,156 24,359 156,008

Subtotal 526,657 871,860 613,819 372,350 2,384,687

Strengthening Green Economy Policies

Staff, Personnel & Consultant Costs* 334,957 314,783 247,826 197,826 1,095,391

Travel 10,435 24,348 17,391 3,478 55,652

Contractual Services and Events** 179,477 110,435 29,565 - 319,477



Indirect Costs, 7% 37,015 31,743 20,909 14,365 104,032

Subtotal 565,796 485,222 319,604 219,583 1,590,205

TOTAL RESULT 1 1,092,454 1,357,081 933,424 591,933 3,974,892

RESULT 2 - Circular economy and new growth opportunities

Resource Efficient Manufacturing and Products


Travel 16,000 8,000 8,000 16,000 48,000

Contractual Services and Events 585,000 576,400 435,000 434,100 2,030,500


Subtotal Direct Costs 957,852 1,039,361 861,900 845,480 3,704,593

Indirect Costs, 7% 67,050 72,755 60,333 59,184 259,322

Subtotal 1,024,902 1,112,116 922,233 904,664 3,963,915

Implementation of Green Economy approaches


Travel 8,696 19,130 26,087 8,696 62,609

Contractual Services and Events 165,217 278,261 188,696 98,698 730,872



Indirect Costs, 7% 26,935 45,865 42,457 33,326 148,583

Subtotal 411,717 701,083 648,978 509,416 2,271,194

TOTAL RESULT 2 1,436,619 1,813,199 1,571,211 1,414,079 6,235,109

GRAND TOTAL 2,529,073 3,170,280 2,504,635 2,006,012 10,210,000

18

Appendix 2. UNIDO Yearly Budget per Budget Line, EUR

Budget Line Category Y1 Y2 Y3 Y4 TOTAL, EUR

1100 Staff & Intern Consultants

163,762 270,271

259,147

227,690

920,870

1101 Staff Time

36,000 36,000

36,000

36,000

144,000

1500 Local travel

54,000 34,600

28,800

34,600

152,000

1600 Staff Travel

16,000 8,000

8,000

16,000

48,000

1700 Nat.Consult./Staff

87,090 87,090

87,953

87,090

349,223

1701 Admin. staff

36,000 36,000

36,000

36,000

144,000

2100 Contractual Services

522,600 528,400

387,000

386,100

1,824,100

3000 Train/Fellowship/Study

12,000 12,000

12,000

12,000

48,000

3500 International Meetings

14,400 14,400

4500 Equipment

10,000 20,000

30,000

5100 Other Direct Costs

6,000 7,000

7,000

10,000

30,000

Sub total

957,852

1,039,361

861,900

845,480

3,704,593

Service cost 7%

67,050

72,755

60,333

59,184

259,322

TOTAL

1,024,902

1,112,116

922,233

904,664

3,963,915

UNIDO Yearly Budget - BL per Output

BL Description Year 1 Year 2 Year 3 Year 4 Total

Output 2.1:

1101 PM 24,443 28,770 18,625 18,625 90,463

11 International experts 121,456 212,198 186,083 148,555 668,292

15 Project travel 38,716 28,012 21,408 16,625 104,760

16 Staff travel 7,288 2,505 2,505 7,288 19,586

1701 Admin Assistant HQ 23,093 23,093 23,093 23,093 92,371

17 National experts & admin staff 41,437 41,437 42,420 41,437 166,732

21 Subcontracts 636,078 593,832 433,276 432,251 2,095,437

30 In-service training, conferences, workshops 13,664 13,664 13,664 13,664 54,658

35 International Meetings 16,397 - - - 16,397

45 Equipment 7,971 22,774 - - 30,745

51 Miscellaneous 4,555 7,971 5,694 7,971 26,190

Sub-Total Output 2.1 935,098 974,257 746,767 709,508 3,365,630

Output 2.2:

1101 PM 4,656 4,656 4,656 4,656 18,625


15 Project travel 3,416 - 2,277 3,416 9,110

16 Staff travel 1,822 2,050 2,050 1,822 7,743


21 Subcontracts - 48,850 48,395 48,395 145,640

Sub-Total Output 2.2 25,745 76,155 83,238 85,857 270,995

Output 3.1: Project Management, Monitoring and Self-evaluation

1101 PM 23,281 23,281 23,281 23,281 93,123


15 Project travel 19,358 9,110 9,110 19,358 56,935

16 Staff travel 9,110 4,555 4,555 9,110 27,329


45 Equipment 3,416 - - - 3,416

51 Miscellaneous 2,277 - 2,277 3,416 7,971

TOTAL for Project Management 129,863 133,108 151,441 167,383 581,796

Total Direct Costs 1,090,706 1,183,520 981,447 962,748 4,218,421

Programme Support Cost (7%) 76,349 82,846 68,701 67,392 295,289

GRAND TOTAL 1,167,055.5 1,266,366.8 1,050,147.8 1,030,140.4 4,513,710.5

Appendix 3: Logical Framework of EU4Environment project’s Result 2 to be implemented by UNIDO

Results Indicators Baseline (2017 of earliest year available)

Target (2023) Source of Verification Assumptions

Impact: Circular Economy promoted in six Eastern Partnership Countries of the European Union

Number of MSMEs applying Sustainable consumption and production practices with EU support

357

557

Progress reports; company factsheets

UNIDO Outcome: Sustainability performance of manufacturing SMEs improved

Amount of resources saving generated by demonstration companies involved in the project (% saved from baseline in terms of water, energy and raw materials)

Energy and resources productivity of the industrial sector improved

0

To be defined

At least

Water -15%

Energy -20%

Raw materials -5%

To be defined

Report on RECP assessments of companies

Economic situation in the country is stable; Businesses are willing to invest time and resources in improving production processes;

SMEs are willing to continuously improve production processes;

Output 1. Capacity of SMEs for applying RECP is strengthened and scaled up

Number of companies applying RECP methodology in production processes

Number of people trained on application of RECP methodology

357

132

417

192

Success stories leaflets

Web pages of national partners; training reports

Continuous commitment of SMEs to use RECP methodology in production practices; Local governments are continuously promoting RECP application; Experts are available to be trained

Output 2.

Concept and tools of the EU Single Market for Green Products (SMGP) initiative introduced and promoted

Number of stakeholders trained in selected countries of the EaP region by 2022

Number of industries applying PEF methodology by 2023

0

0

60

10

Web pages of national partners; training reports

Success stories leaflets

Continuous interest of stakeholders in EU markets; Export-oriented SMEs available and willing to cooperate.

Activity 1.1 Eco-industrial parks feasibility introduced in the region

Number of industrial parks assessed for potential/interest to adopt best practices of EIPs by 2022

0 2 Newsletters of the project; websites of national partners

Existing industrial parks are willing to upgrade

Activity 1.2 Supporting RECP Clubs are to further spread in the region

Number of new RECP Clubs of enterprises established by 2020

20 32 Web site of municipalities/partners

Municipalities are willing to cooperate and promote RECP among SMEs; SMEs are interested in continuously dedicating resources to RECP learning and application

Activity 1.3 Promoting Circular Economy among relevant stakeholders - “Waste mapping” in municipalities

Number of “WMs” introduced in the selected municipalities of the region by 2022

0 2-3 Newsletters of the project; websites of national partners

Municipalities are available and interested in improving industrial waste management

Activity 1.4: Training national experts

Number of experts trained by 2021 132 162 Newsletters of the project, websites of national partners

Experts are available and interested in applying RECP methodology

Activity 1.5 Additional RECP Assessments of manufacturing SMEs are conducted

Number of SMEs assessed by 2021 in all six countries of the region

357 417 RECP Assessments reports; success stories leaflets

SMEs are willing to participate in the project/improve resource efficiency using the recommendations from the assessments

Activity 1.6. Raising awareness and sharing knowledge about RECP

Number of stakeholder representatives taking part in thematic events

4832 5432 Newsletters of the project, websites of national partners

National stakeholders are continuously promoting RECP methodology and project results

Activity 1.7. Further institutionalizing RECP in EaP

Number of RECP knowledge sharing platforms and centers established by 2023

4 6 Newsletters of the project, websites of national partners

Government supports RECP promotion in the countries; Growing demand for RECP

Results Indicators Baseline (2017 of earliest year available)

Target (2023) Source of Verification Assumptions

countries services

Activity 2.1. Mapping of existing practices and barriers for existing labelling schemes in EaP countries

Studies and recommendations of available eco-labelling practices in selected EaP countries/at the regional level by 2022

0 1 Web pages of national partners; newsletters of national partners

Continued interest in labelling options by SMEs

Activity 2.2. Awareness and understanding of SMPG opportunities and benefits is built in EaP Countries

Number of stakeholders trained in selected countries of the EaP region by 2022

0 60 Web pages of national partners; training reports

Continuous interest of stakeholders in EU markets; export-oriented manufacturing SMEs using the SMGP concept and tools

Activity 2.3. Piloting product environmental footprint (PEF) in selected industries of the EaP region

Number of industries applying PEF methodology by 2023

0 10 Websites of national partners; success stories leaflets

Export-oriented SMEs available and willing to apply PEF to business.

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