PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: FULL-SIZED PROJECT
THE GEF TRUST FUND
Submission Date: 11 September 2008
Re-submission Date: 24 April 2009
PART I: PROJECT IDENTIFICATION
GEFSEC PROJECT ID1: 3881
PROJECT DURATION: 36 month
GEF AGENCY PROJECT ID: 4003
COUNTRY(IES): Ghana
PROJECT TITLE: Promoting of Appliance Energy Efficiency and
Transformation of the Refrigerating Appliances Market in Ghana.
GEF AGENCY(IES): UNDP
OTHER EXECUTING PARTNER(S): Energy Commission, Ghana
GEF FOCAL AREA (S): Climate Change
GEF-4 STRATEGIC PROGRAM(S): CC-SP1
NAME OF PARENT PROGRAM/UMBRELLA PROJECT: GEF Energy
programme for West Africa
INDICATIVE CALENDAR
Milestones
Expected Dates
mm/dd/yy
Work Program (for FSP)
CEO Endorsement/Approval
Agency Approval Date
Implementation Start
Mid-term Review (if planned)
Project Closing Date
06/24/2009
02/01/2010
03/01/2010
04/01/2010
11/01/2011
03/31/2013
A. PROJECT FRAMEWORK
Project Objective: To improve the energy efficiency of appliances manufactured, marketed and used in Ghana
through the introduction of a combination of regulatory tool such as Minimum Energy Performance Standards and
Information Labels (S&L), and innovative economic tools. Domestic refrigeration appliances will be the first enduse to be tackled, with a specific focus to address ozone depleting substances contained in the current stock of
equipment.
Project
Components
1
Invest
mt,
TA, or
STA**
Expected
Outcomes
1. Strengthening of
regulatory and
institutional
framework
TA
An enabling
regulatory and
institutional
framework for
appliance
energy
efficiency
standards and
labels (S&L)
adopted
2. Design of
certification,
labeling and
enforcement
mechanisms
TA
National
testing,
certification,
labeling and
enforcement
mechanisms
Project ID number will be assigned initially by GEFSEC .
PIF -December 08
Expected Outputs
Indicative GEF
Financing*
($)
1.1 S&L implementation
regulations drafted,
stakeholder consultations
conducted and final
regulations ready for
approval by Parliament
1.2 Consulting and
advising provided to
enforcement authority
staff and government
ministries, departments
and agencies, involved in
S&L program
1.3 Monitoring and data
collection studies
performed for end-use
sales and appliance
energy use.
2.1 National testing and
certification procedures
defined
2.2 National labeling
content and format
designed and adopted
%
Indicative Cofinancing*
($)
Total ($)
%
50,000
17
%
250,00
0
83
%
300,000
100,000
29
%
250,00
0
71
%
350,000
1
adopted
3. Training and
public outreach
activities
TA
4. Establishment of
refrigerator test
facilities
Inv.
5. Development of
CFC and used
appliance
collection and
disposal facilities
Inv.
Training
provided to
appliance
professionals,
and national
outreach
campaign to
educate
consumer and
business buyers
Refrigerating
appliance test
facility
established
Used appliance
and CFC
collection and
disposal
facilities and
services
established
2.3 Pilot program
launched to test and
finalize efficiency labels
2.4 Verification and
enforcement procedures
developed and state
inspectors trained
3.1 S&L regulations
understood and adopted
by importers and
distributors
3.2 Benefits of appliance
efficiency and labeling
understood by consumer
and business buyers
4.1 Refrigerating
appliance test facility
designed and budgeted
42. Refrigeration
appliance test facility
built and commissioned
5.1 CFC incinerator
designed with cost
estimates.
5.2 Ghana refrigeration
appliance industry
understands
environmentally friendly
technologies and
procedures for the
collection and disposal of
appliances and CFCs
5.3 Bid documents
formulated for CFC and
used refrigerator
collection and disposal
5.4 Contract signed for
used refrigeration
appliance and CFC
collection and disposal
services for project
150,000
23
%
500,00
0
77
%
650,000
300,000
55
%
250,00
0
45
%
550,000
300,000
24
%
1,250,0
00
81
%
1,550,0
00
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PIF -December 08
6. Development of
efficiency program
evaluation and
monitoring
capacity
TA
National
private and
public
institutions
demonstrate
rigorous
program
monitoring and
impact
evaluation
capacity
6.1 Professionals trained
in energy efficiency
program monitoring and
evaluation study design,
methods, technologies
and procedures.
6.2 Review and field test
of promising monitoring
technologies and metering
equipment.
6.3 Pilot rebate and turnin program evaluation and
monitoring services bid
and contracted to
qualified local
professionals
150,000
43
%
200,00
0
57
%
350,000
7. Pilot test for an
accelerated market
transformation
through innovative
economic
incentives
TA
Pilot rebate,
innovative
economic
incentive and
turn-in
programs for
efficient
refrigeration
appliances are
demonstrated
for several
program
designs and
several
consumer
groups
400,000
40
%
600,00
0
60
%
1,000,0
00
8. Financial design
of follow-up
national market
transformation
programs
TA
Several
financing
schemes and
business plans
are available
for program
follow-up and
replication
7.1 Several design
variants of a refrigeration
appliance rebate and turn
in program are
documented and
available.
7.2 The organizational
and logistical feasibility
of several appliance
rebate and turn-in
programs is demonstrated.
7.3 Rigorous estimates of
the impact of several
rebate and turn in
programs is welldocumented and widely
known
8.1 Business plans are
available for several
program follow-up
scenarios.
8.2 Carbon finance
options for program
follow-up are accurately
estimated and well known
8.3 Explore designs for
loan guarantee and capital
financing programs that
can facilitate follow-up
implementation are
known and available.
8.4 Dissemination of
results
110,000
35
%
200,00
0
65
%
310,000
162,727
31%
400,000
69
%
562,727
9. Project
management
Total project costs
32 3,900,000
68
5,622,
%
B
%
A
727
* List the $ by project components. The percentage is the share of GEF and Co-financing respectively to the total amount for the component.
** TA = Technical Assistance; STA = Scientific & technical analysis.
1,722,727
B. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE and BY NAME (in parenthesis) if available, ($)
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PIF -December 08
Sources of Co-financing
Type of Co-financing
Project Government Contribution
(Ministry of Energy, Ministry of Environment
GEF Agency (UNDP Multilateral Fund)
Amount
Grant
In -Kind
Grant
Grant
GEF Agency (UNDP Ghana)
2,200,000
800,000
700,000
200,000
3,900,000
Total co-financing
C. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($)
Previous Project
Preparation Amount (a)
GEF
Co-financing
-
Total
Project (b)
A 1,722,727
B 3,900,000
5,622,727
Total
c=a+b
1,722,727
Agency Fee
172,273
3,900,000
5,622,727
172,273
D. GEF RESOURCES REQUESTED BY FOCAL AREA(S), AGENCY (IES) SHARE AND COUNTRY(IES)*
GEF
Agency
Focal Area
(in $)
Country Name/
Global
Project
Preparation
Project
Agency
Fee
Total
(select)
(select)
(select)
(select)
Total GEF Resources
* No need to provide information for this table if it is a single focal area, single country and single GEF Agency project.
PART II: PROJECT JUSTIFICATION
A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL
BENEFITS TO BE DELIVERED:
Refrigerating appliances consume an average of nearly 1200 kWh/year in Ghana, or approximately three times more
energy than the maximum allowed in countries with robust standards and labeling programs. Such inefficient appliances
result in $50 to $100 per year of potentially unnecessary electricity expenses for a typical owner which he/she can ill
afford. The wasteful consumption of electricity results in more than 0.7 tons per year of CO2 emissions per appliance, and
uncontrolled release of CFCs from used appliances can result in the equivalent of another 2 tons of CO2 every time an
inefficient, used appliance is improperly disposed or replaced. With more than 2 million inefficient refrigeration
appliances in use throughout Ghana the economic cost of such inefficiency is many hundreds of millions of dollars to the
national economy, while the avoidable greenhouse gas emissions is many millions of tons of CO2 over the long term.
Such economic and environmental damage needs to be mitigated by replacing inefficient, used refrigeration appliances in
Ghana with more efficient and environmentally friendly versions of the same appliance.
The objective of the proposed project is therefore to reduce energy waste and environmental damage by transforming the
Ghanaian market toward efficient refrigerating technologies through the effective implementation of mandatory standards
and an accelerated phase out of inefficient, obsolete and inappropriate refrigerating appliances. These inefficient
appliances currently being dumped on the Ghanaian market are cheap, low quality, used imports. The proposed project
promotes the use of more efficient appliances through the introduction and enforcement of minimum energy performance
standards and labels for refrigerating appliances and pushes the market beyond the moderate and gradual impact of
mandatory standards with a rebate scheme for higher efficient appliances combined with old refrigerator turn-ins for
scrapping.
The project will work in partnership with the private sector, mainly the appliance industry and scrap dealers and will build
upon existing legislation and similar activities involving lighting and air conditioning. The project will serve as a further 4
PIF -December 08
step towards the achievement of market transformation and appliance manufacture in Ghana and the development of
further market transformation activities for other energy consuming electrical appliances and equipment.
Many countries have introduced energy efficiency programs. The different policy and program tools available include
labeling programs2 minimum energy performance standards (MEPS),3 and consumer rebate and incentive programs for
the purchase of more efficient appliances. Each of these tools have proven to be highly effective approaches when
targeting household demand. Many barriers, however, prevent the implementation of labeling, minimum energy
performance standards, and consumer education and incetive programs and the penetration of higher efficiency appliances
in Ghana including the following:
 Lack of knowledge in the ministries and institutions in charge of enforcing labeling regulations on how to
specifically proceed to implement and enforce regulations and how to develop support programs for S&L in order
to speed up the market transformation process.
 Little information is available at the government level on the potential impact and cost effectiveness of S&L
programs.
 No framework currently exists for regulations to introduce Standard and Labeling.
 Customers lack information about the availability of energy efficient equipments and the cost effectiveness of
investing in efficient appliances.
 Many consumers lack access to credit or capital, so that even a relatively small increase in first cost can be a
severe barrier to purchasing a more efficient appliance. Thus the need for a rebate program.
 Lack of sustainable financing mechanisms and systems for maintaining energy efficiency incentive, rebate and
education programs.
 Salesmen do not know how to market such efficient appliances. This and the former point leads retailers not to
offer a sufficient range of efficient equipment because of the low demand for this type of appliance.
 Local medium size manufacturers lack capacity to develop and market more efficient appliance and are
uncertainty about the market demand of high efficiency models.
 Little national experience and installations for testing household appliances according to international standards.
The project has been designed to erase some of the most significant barriers above and allow a faster transformation
process for the market. Each outcome has been selected to address one particular category of barriers. The project is to
establish an energy labeling system, setting and implementing a Minimum Energy Performance Standards (MEPS) and
pushing efficiency levels beyond the mandatory standard through a consumer rebate, turn-in and incentive program.
The project has eight components:
Component 1
Strengthening of regulatory and institutional framework
For this component technical assistance and capacity building has been provided to the government so it can
proceed with S&L implementation. The component also includes support for the design of the legal framework
and the writing of the first set of regulations. Support has also target the information on the types of support and
enforcement programs that can be introduced in parallel to the legislation. The objective of this component is and
has been to facilitate the development and adoption of the first set of regulations for the adoption of EE standards
and labels for the refrigeration appliances targeted under this program and create sufficient expertise within the
government, so they can undertake the introduction of regulations and support programs for refrigeration
appliances and equipment.
Component 2
Design of certification, labeling and enforcement systems
This component will provide the government agencies and at least one selected laboratory with support for the
design of enforcement procedures and for the testing of appliances. The enforcement procedures will cover the
2
Energy Efficiency Standards and Labels (S&L) are complementary policy tools, which are instrumental in promoting a sustainable
energy path. S&L programs compare favorably to other governmental energy policies because of their low cost of implementation and
ability to transform the market of appliances in the long term.
3
MEPS are regulations that prescribe a minimum energy performance for equipment or appliances. Energy efficiency labels are
informative labels affixed to manufactured products indicating their energy performance and aiming at changing the perception and
purchasing habits of customers. Energy Efficiency Standards and Labels (S&L) are complementary
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PIF -December 08
manufacturers, importers and retailers and will insure that all market actors are informed and are following the
new regulation. This also includes the development of a market follow-up tool that will be required to provide the
higher level of government with hard facts about the efficiency of the regulation, the evolution of the market and
the impact of the programs introduced. Such monitoring will be useful both for the evaluation of impact of this
MSP project and to support the future government policy in the S&L domain.
Component 3
Training and public outreach
This component will support the information and awareness activities that are needed to change the perception of
the customers about the importance of purchasing higher efficiency appliances and the cost effectiveness of doing
so. This will be achieved through the preparation of a marketing plan and the implementation of marketing
activities by local and international retailers. The customers, through better information, will react and begin to
pay attention to the label and to the category of efficiency of the appliance they purchase.
Component 4
Establishment of refrigerating appliance test facility
This component first provides the design and cost estimates for a refrigeration appliance test facility.
Subsequently, the refrigeration appliance test facility will be built and commissioned. Linkages will be sought
with ongoing TPMP and upcoming HPMP programmes funded by the MLF which also address the refrigeration
sector from an ODS (Ozone Depleting Substances) perspective.
Component 5
CFC and used appliance collection and disposal facilities
This component a CFC incinerator designed with cost estimates as the first step in establishing scrapping and
CFC disposal facilities in support of programs to replace inefficient used refrigeration appliances. Training and
capacity-building activities are conducted for the Ghana refrigeration appliance industry so that it understands
environmentally friendly technologies and procedures for the collection and disposal of appliances and CFCs.
The project then formulates bid documents for CFC and used refrigerator collection and disposal services for the
pilot programs included in this proposal. After bid, a contract is signed for used refrigeration appliance and CFC
collection and disposal services for project. The GEF-efforts will be complemented by a demonstration project in ODSwaste destruction funded by the MLF. This MLF contribution will be added to the list of co-financing sources to the GEF
programme. The ODS-waste that would result from the programme would either be destroyed locally or exported to a facility
that can handle the destruction of such waste. This will have to be determined during the PPG-stage of the GEF EE
programme.
Component 6
Efficiency program evaluation and monitoring capacity development
In this component, national professionals are trained in energy efficiency program monitoring and evaluation
study design, methods, technologies and procedures. There is also a review monitoring technologies and
metering equipment with is followed by subsequent field testing of the most promising monitoring and metering
technologies. This component concludes with the bid and contracting of the rigorous evaluation and monitoring
services needed for impact evaluation of the pilot rebate and turn-in programs described in the next component.
Component 7
Pilot test of a variety of rebate program designs
For this component, first several design variants of a refrigeration appliance rebate and turn in program are
developed. Then several appliance rebate and turn-in programs are implemented around Ghana, thus
demonstrating the performance of different program variants as a function of program parameters and incentives.
Rigorous program impact evaluation studies provide estimates of the impact of the several rebate and turn in
programs and results are disseminated so that this information becomes well-documented and widely known
Component 8
Financial design of follow-up national market transformation programs
This component formulates business plans and finance models for several program follow-up and scale-up
scenarios. Amongst the program follow-up financing options, carbon finance potentials for program follow-up
will be accurately estimated and publicized. In addition, designs for loan guarantee and capital financing
programs that can facilitate follow-up implementation will be formulated and publicized.
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PIF -December 08
At the global level, the project will limit the growth in energy demand from the household sector, and will ensure
measurable and sustainable global benefits in slowing the growth rate of GHG emissions resulting from the combustion of
carbon based fuels and the consumption of electric power, which in-turn will contribute to the mitigation of climate
change. An estimation of the GHG reduction is provided in part C below.
B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS:
In its initial communication to UNFCCC, Ghana recognizes the importance of regulations, energy efficiency and customer
awareness in achieving the goal of reducing greenhouse gas emissions. Ghana is currently developing its mitigation
strategy which includes the use of regulations and awareness raising to reduce green house gas emissions.
C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
The proposed project is expected to contribute to meeting the Climate Change focal area strategy and the GEF Strategic
Program 1 (CC-SP1) “Promoting Energy Efficiency in residential and commercial buildings”.
By increasing the market penetration of energy efficient refrigeration appliances, the growth in energy demand from the
household sector will be limited, which in turn will slow the growth rate of GHG emissions resulting from the required
generation to meet the demand. The proposed project will support the adoption and enforcement of verified energy
efficiency standards for the refrigeration appliance industry. It is expected that the avoided electricity generation resulting
from the project would lead to 500 kt of reduced CO2–equivalent emissions in the medium term (direct project impact).
An additional 4000 kt of CO2–equivalent by 2019 and 12000 kt by 2029 will be achieved due to the follow-up market
transformations resulting from the project.
GEF funding for this project will be critical to secure the said global benefits. Moreover, it will gain from and also
contribute further to the international experiences and lessons learnt in promoting EE standards and labels in other
countries.
D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH GEF RESOURCES
Most of the GEF financial supports will be directed towards Technical Assistance, Training and Capacity Buildings of
appliance stakeholders. International expertise will be brought to Ghana to bring world’s best practice in appliance energy
efficiency and market transformation programme. A portion of GEF support will be instrumental to allow concrete
investments in testing facilities as well as in collection and disposal facilities in appliances and CFC
E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
The targeted end-uses (domestic refrigerators and freezers) evolve in a regional market that are partially locally produced
and imported for the majority of them.. Energy efficiency Standards and Labels will therefore be designed as much as
possible on a regional. This requires coordination and harmonization between several GEF market transformation projects
in the region (Benin, Togo, Nigeria, Ivory Coast, Senegal, Mauritania…). The ECOWAS (Economic Commission of West
African State) is by far the most suited regional institution to organize the coordination between the various GEF projects.
Through ECOWAS, the S&L provision will progressively be expanded to all countries in the region. The present project
will therefore liaise with the specific regional S&L activities under the umbrella of the GEF Programmatic Energy project
for West Africa coordinated by UNIDO. Provisions to undertake this coordination will be part of the coordination
mechanism of the programme as envisaged in the PFD. UNDP will provide the technical and policy assistance based
from its experience in S&L implementation around the world. The Government of Ghana has shown interest for a
participation in any such regional activities.
F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL
REASONING :
As mentioned in part A, Ghana is faced with an ever growing demand for electricity from the household sector. Attempts
to limit this demand growth are faced with many hurdles. Without GEF support, these hurdles will remain and will result
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PIF -December 08
in unabated growth of electricity produced and the resulting GHG emissions. Barriers to be addressed by the GEF
supported project are:
Lack of Policy, Legal and Regulatory Framework
In Ghana, a general policy for energy efficiency has been proposed recently to the government. However, the adaptation
of this policy into the legal and regulatory framework require tremendous efforts. There is currently a lack of information
and know-how about how to proceed efficiently with these important steps. Without support, it is likely that the full
implementation will take more time than if the Ghanaian Government can benefit from the experience gathered in other
countries. The present project addresses this barrier with a comprehensive component on the policy, legal and regulatory
system development. GEF involvement will provide the necessary resources for capacity building and this will be main
catalyst to increase the efficiency of the in-kind effort that will be provided by the government and stakeholders.
Limited Institutional capability
In Ghana, the coordination between the various government ministries responsible for standard and labeling development,
then implementation and enforcement is difficult. There is currently no experience on how a structured enforcement
program should be implemented, and there is no laboratory that could perform energy efficiency test on household
appliances. Often, the laboratory equipment does not exist and when it exists, the human resources of the laboratory are
not trained to perform the required tests according to international standard. In order to have a measurable impact, this
project will undertake a multi-sectoral approach to ensure that the energy efficiency measures are incorporated in the
sectoral programs of the country. The GEF support is also here essential to bring the resources needed for capacty
building at the local laboratories and to train them and others stakeholders about internationally recognized ISO standards
for equipment testing and adequate procedures for enforcement.
Low Public Awareness and Retailers Interest
Some stakeholders’ perception is to the effect that the energy labeling system is not yet mature for the economic
environment of Ghana and in general is better suited for industrialized markets where the purchasing power is higher.
Awareness of the opportunities offered by the energy labeling system for household appliances and the associated energy
savings is low among the general public and the retailers. This lack of information and awareness implies that both the
demand and the supply for energy efficient appliances are minimal. As a consequence, the sales levels are very low for
energy efficient appliances. There is therefore a need for dissemination of information on Standards and Labels benefits
and opportunities to the general public and retailers in order to raise public awareness and generate activities in the sector.
Such a process is the key option to building public confidence and acceptance regarding the energy labeling system. GEF
involvement will allow the support of targeted awareness activities aimed at convincing the local retailers and the general
population of the benefit of introducing higher efficiency appliances in the market. These efforts from the GEF will be
complemented by local NGOs efforts.
Lack of Capability from Local Manufacturers
The small and medium size household appliances manufacturers currently lack the capacity and incentives to develop new
improved designs that could compete with the current international trend of energy efficient household equipments. The
manufacturers are generally unaware that a one or two class improvement (according to EU classification scheme) is often
possible for local manufacturers with a minimal investment, and sometimes with a reduction in production costs as some
manufacturers in Tunisia have realized during the implementation of their S&L program. Some larger manufacturers
would have the ability, owing to their size and their international contacts, to produce higher efficiency equipment, but
they do not see the possible market for this category of appliances yet. The GEF funding will be used to bring experienced
international experts that can run complex model of appliances and demonstrate the various ways, by which energy gains
can be achieved with minimal investment or with a reduction in production cost. Without GEF support, it is very unlikely
that local manufacturers will achieve this leap in technology in the near future.
Lack of Sustainable Financing for Accelerating Efficiency Improvements
Currently there is a lack of effective financing models and mechanisms for providing efficient and sustainable financing
for appliance energy efficiency improvement programs. GEF funding will enable both the pilot testing of efficient
appliance rebate and turn-in schemes that may eventually be financeable through carbon credits or government loan
guarantee schemes or a combination of the two. If project activities can remove these barriers to efficient programs then
the project has the potential to have a positive impact that is many times greater than the programs that are funded
directlyl.
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PIF -December 08
The barriers presented above slow down the penetration of higher efficiency appliances in Ghana. The project has been
designed to overcome some of these most significant barriers and allow a faster transformation process for the market.
The GEF support to the project will also catalyze the intervention of many local co-financing partners of government and
NGO origin. These partners would not provide their support to the initiative without GEF intervention.
G. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM
BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MEASURES THAT WILL BE TAKEN:
There are two areas of risks linked to the achievement of the outcome of this project; economic stability and stakeholder
commitments. The climate change risk is not likely to prevent the objectives to be met and more likely to render the need
for the project even more acute (increased use of air-conditioning).
The economic stability risk is linked to the broad stability of the region. Should the current rate of economic growth slow
down, the need for the project and its achievements would be less dramatic as the capacity of households to acquire new
or exchange their appliances would be constrained by the stress on their purchasing power. Such risk can not be mitigated
by the project, but is unlikely because the trend of the last few years was consistently towards higher growth rate not
lower.
The stakeholder commitment risk is more directly linked to the project. Many stakeholders are to be actively involved for
a successful implementation of the project, among which are government entities, manufacturers, retailers and testing
laboratories. Without their commitments, or should there be resistance on their part, the project will face difficulties in
delivering its outcomes.
-
On the government side, the availability of budget and staff time will be the key, together with maintaining the
political commitment to proceed promptly with the actual adoption of the required legal framework and new
regulations to support EE appliances and standards. Sufficient time should be allowed for participation in capacity
building and training activities, then in program preparation including time to develop the regulation and select
the label and energy classes. The enforcement authorities will also have to commit to undertake compliance
checking activities. The risk of non or delayed adoption of the new regulations is also to be mitigated by
identifying possible bottlenecks in the legal process in advance and taking them into acount in the final project
design and during implementation. In general, this risk is mitigated by the fact that the government has issued a
clear policy about supporting energy efficiency and the topic is rather high on the national priorities.
-
On the manufacturers’ side, involvement is often slowed by a complex mix of technical, commercial and
management barriers that make the adoption of new technologies, designs and manufacturing processes difficult.
They will need to commit staff time for appliance S&L training and to develop efficient products. They will need
financial resources to transform their production lines and to improve their products. Retailers will also need to
commit staff time for appliance S&L training and together with manufacturers they will need to insert S&L
information in their communication campaigns. This risk cannot be entirely mitigated, but experience in others
countries has shown that working with a small initial group of interested manufacturers and retailers can have a
carry-over effect on the whole market.
-
One laboratory has been identified to test refrigerators and freezers in this project. As this laboratory is private, its
commercial priorities and workload may influence its commitment to the project by the time it is ready to be
implemented. As a risk mitigation strategy, other laboratories (one national and several at regional level) have
been identified as potential replacement for equipment testing.
Support of all the stakeholders has been ensured through close co-operation established early in the design of the project
with the key private sector stakeholders, consumers associations, Government bodies and NGOs so as to identify and
promote the mutual benefits of the proposed labeling program. Their commitment was obtained to develop, introduce and
enforce regulations (government), enhance their capabilities for testing (laboratories), technology up grade
(manufacturers), public awareness programs (retailers, manufacturers and NGOs) for pushing the energy efficient
products in the market.
H. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT:
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PIF -December 08
With the estimated direct project impact of approximately 300,000 tons of CO2–equivalent emissions reduced (for 20092013 period, just for transformation of domestic refrigerators), the cost effectiveness of the GEF support can be estimated
at USD 13 per ton CO2 reduced. An additional 4000 kt of CO2 through 2019 and 12000 kt through 2029 can be achieved
due to further market transformation of domestic refrigerators. The project intends to follow international best practices in
setting energy efficiency standards and labels and in transforming the domestic market of refrigeration appliances. Energy
efficiency improvements will be set at levels that are technically feasible and economically justified. The expected savings
on each electricity bill will compensate the possible incremental cost of a more energy efficient appliance. Hence the
associated GHG reductions will be generated at negative cost to society, as widely analyzed and illustrated in numerous
international recent publications (Working Group 3 of the IPCC 2007, McKinsey’s costs of conserved carbon in 2009).
Elimination of CFC gases in retired equipment will generate further Greenhouse Gases reductions. Finally, the new
energy efficiency policy, other appliance markets will be transformed (air conditioners –on which immediate action is
expected-, commercial refrigeration appliances, electric motors, ventilators, lighting,…), generating greenhouse gas
reductions. By taking this into account and by applying a GEF causality factor of 50%, the cost effectiveness of the GEF
intervention can be further improved down to USD 0.33 per ton of CO2 reduced.
I. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY:
The compartive advantage of UNDP is justified by the nature of the project (being a “pure” capacity building / technical
assistance project) and taking into account UNDP’s past experience with similar projects.
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PIF -December 08
PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF
AGENCY(IES)
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S):
(Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).
NAME
POSITION
DATE (Month, day, year)
MINISTRY
B. GEF AGENCY(IES) CERTIFICATION
This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria
for project identification and preparation.
Agency
Coordinator,
Agency name
John Hough
Deputy Executive
Coordinator .
UNDP/GEF
Yannick
Glemarec
UNDP/GEF
Executive
Coordinator
Signature
Date
(Month, day, year)
11 September
2008
4/24/2009
Project Contact
Perso
Telephone
Email Address
Benoit Lebot
+221 33 869 06 76
Benoit.lebot@undp.org
+221 33 869 06
76
Benoit.lebot@undp.org
Benoit Lebot
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PIF -December 08
Annex A – Project outputs for each outcome
Outcome 1:
Outcome 2:
Outcome 3:
A supportive legal and
initial regulatory
framework for appliance
EE standards,
certification and labelling
adopted.
Output 1.1
Structured verification &
enforcement of appliance
EE labels and standards.
Increased consumer’s
and retailer’s awareness
and improved marketing
of appliance EE
standards and labels.
Output 2.1
Output 3.1
Enhanced awareness of the
political and policy
decision makers’ on
appliance EE options.
Enhanced knowledge of
state inspectors in
compliance checking of
shops and of appliance
energy efficiency
declarations.
Output 1.2
The required new
regulations drafted and
ready for Parliamentary
approval.
Output 1.3
The label and energy
classes selected for the
refrigeration appliances.
Output 2.2
Verification and
enforcement plan for
retailers developed, tested
in a pilot project, and
implemented.
Outcome 4:
Establishment of
refrigerating appliance
test facilities
Output 4.1
Enhanced consumers’
awareness of appliance
energy efficiency
characteristics, standards
and labels, and of costs
and benefits of more
efficient products.
Output 3.2
Refrigeration appliance
test facility designed and
budgeted
Enhanced awareness and
knowledge of retailers
management and retail
staff trained in appliance
energy efficiency issues
and sales rationales.
Refrigeration appliance
test facility built and
commissioned
Output 4.2
Output 2.3
Verification and
enforcement plan and
facilities for products
testing developed, and
implemented in a pilot
project.
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PIF -December 08
Outcome 5:
Establishment of used
appliance and CFC
collection and disposal
facilities.
Output 5.1
CFC incinerator designed
with cost estimates.
Output 5.2
Outcome 6:
Outcome 7:
Outcome 8:
Conduct of refrigeration
appliance rebate and
exchange programs of
various designs
throughout Ghana that
distribute at least 100,000
efficient appliances.
Output 7.1
Development of various
feasible finance models
for national scale followup of pilot rebate and
exchange program.
Professionals are trained in
energy efficiency program
monitoring and evaluation
study design, methods,
technologies and
procedures.
Several design variants of
a refrigeration appliance
rebate and turn in program
are documented and
available.
Business plans are
available for several
program follow-up
scenarios.
Output 6.2
Output 7.2
Development of
efficiency program
evaluation and
monitoring capacity.
Output 6.1
Ghana refrigeration
appliance industry
understands
environmentally friendly
technologies and
procedures for the
collection and disposal of
appliances and CFCs.
Output 5.3
Promising monitoring
technologies and metering
equipment are tested and
well-known in Ghana.
Bid documents formulated
for CFC and used
refrigerator collection and
disposal.
Pilot rebate and turn-in
program evaluation and
monitoring services are bid
and contracted to qualified
local professionals
Output 6.3
The organizational and
logistical feasibility of
several appliance rebate
and turn-in programs is
demonstrated.
Output 7.3
Rigorous estimates of the
impact of several rebate
and turn in programs is
well-documented and
widely known
Output 8.1
Output 8.2
Carbon finance options for
program follow-up are
accurately estimated and
well known.
Output 8.3
Designs for loan guarantee
and capital financing
programs that can facilitate
follow-up implementation
are known and available.
Output 5.4
Contract signed for used
refrigeration appliance and
CFC collection and
disposal services for
project development,
implementation and
monitoring strategies.
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PIF -December 08