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University of Siena Environmental Legal Team (ELT) Legal Assistance in the Republic of Albania

MEFWA: The ELT provides the Albanian Ministry for the Environment, Forest and Water Administration with the legal assistance for the implementation of the UNFCCC and the Kyoto Protocol legislative framework. The objective of this assistance is to create the DNA for Albania and provide it with the relevant tools for CDM projects assessment. To this end it firstly supported the Country in the identification of the most suitable model of DNA and in drafting the legislative acts necessary for its establishment. Secondly, a set of rules of procedures for CDM projects evaluation by the DNA was identified and introduced in the Albanian legislative system coupled with the identification of the sustainable development criteria to be met by CDM projects and with tailor made studies on the carbon market. The assistance for the start up of the DNA has been integrated by a capacity building programme.
More in detail the following Reports and activities have been delivered for the establishment of the DNA and for CDM assessment in Albania:
  1. Report on Recommendations for strengthening the Designated National Authority (DNA) in Albania (June 2006):
The Report provided a first background for the establishment of the DNA in Albania by means of an analysis of the following legal and technical issues:
  • Introduction to the CDM and the DNA;
  • Assessment of the national institutional structure and legislation regulating the establishment of the DNA;
  • The Albanian DNA model;
  • Identification of the institutional structure for the establishment of the DNA;
  • Identification of the legal basis for the establishment of the DNA;
  • Definition of the rules of procedure of the DNA;
  • Identification of the national interim approval criteria for CDM projects;
  • Definition of the model for the Letter of Approval;
  • DNA financial sustainability;
  • Establishment of the CDM national registry;
  • Establishment of the DNA web site.
  1. A Training course on Kyoto Protocol and Clean Development Mechanism was held in Tirana in April 2006.
The Agenda of the course focused on the following topics:
  • The Kyoto Protocol as opportunity of cooperation between Albania and Italy;
  • Introduction to the Kyoto Protocol;
  • The Kyoto Protocol Flexible Mechanisms;
  • Status of the implementation of the Kyoto Protocol in Albania;
  • The Clean Development Mechanism as opportunity for Non Annex I countries;
  • The Carbon Market and the Italian Carbon Fund;
  • Linking CDM to the EU Emissions Trading Scheme.
  1. Report on Guidelines for the Creation of the Suitable Framework to host CDM in Republic of Albania (May 2007):
The Report follows up with the Report on Recommendations for strengthening the Designated National Authority (DNA) in Albania and provides the guidelines for the creation of the suitable framework to host Clean Development Mechanism Projects in the Republic of Albania. More in detail, the Report is divided into two parts. Part one focuses on the following main aspects: CDM features and eligibility requirements in the Republic of Albania; advantages and disadvantages of developing CDM projects from the Non Annex I Country perspective; requirements the CDM projects and parties must fulfil in order to be consistent with the Kyoto Protocol; parties likely to be involved in CDM; CDM Participants in the Republic of Albania; sectors eligible for CDM Projects development; areas for CDM Projects Development in the Republic of Albania; the CDM project cycle; steps needed to host CDM projects. The Report refers to the implementation of these issues in the Republic of Albanian. The second part of the Report is focused on the Designated National Authority establishment as a fundamental activity for preparing the Country to hosting CDM projects. General remarks on the possible structures of DNA are given, followed by an overview of DNA national experiences developed worldwide. Reference is made to the Albanian DNA model as of the time of release of the Report. A list of steps to be fulfilled in creating and starting up the DNA is provided. Finally, the Report concludes with specific proposals and recommendation for the establishment of the model of DNA suitable for the republic of Albania. Moreover, consistently with the proposed structure and functions of the Albanian DNA, the following list of forms are enclosed in the Annexes to the Report: 1) List of required information to be inserted in the PIN; 2) Checklist for compliance of the PIN and PDD with the Sustainable Development Criteria; 3)Letter of no objection; 4) Letter of endorsement; 5) Checklist for compliance of the PIN and PDD with national legislation; 6) Letter of Approval; 7) Statement of confirmation of the legal certainty of emission reductions.
  1. Report on Guidelines for the Selection of Sustainable Development Criteria in the Republic of Albania (July 2007):
This Report aims at providing the guidelines to select the Sustainable Development criteria for CDM projects assessment in the Republic of Albania. The Report takes into account the concept of sustainable development as recognized in the international context and its applications to the Kyoto Protocol CDM framework. It also focuses on the European Union approach towards sustainable development listing the single EU sustainable development indicators and describing their features and value into the EU policy context as well as analysing the main sustainable development criteria assessment methodologies developed so far. A section providing an overview of SD national experiences developed worldwide follows. Finally the Report analyses the Republic of Albania case, focusing on the Country current situation and on the future perspective in the sustainable development field. The Report concludes by suggesting the most suitable solutions for identifying a comprehensive and effective set of national SD indicators to assess CDM projects.

Legal Assistance to the Albanian DNA with regard to the carbon market:

Understanding the structure and functioning of the Carbon Market is of utmost importance to enhance the Country’s capability of attracting CDM projects and foreign investments as well as to enable the Country to actively benefit from the opportunities offered by the implementation of CDM projects. To this end, specific studies on the carbon market and the carbon contracts have been developed as part of the legal assistance to the DNA and to MEFWA.
The following Reports have been delivered in this sector:
  1. REPORT I on the International Carbon Market analysis (May 2008):
The Report analyses the state, functioning and trends of the International Carbon Market where Certified Emission Reductions (CERs) produced by Clean Development Mechanism (CDM) projects are traded. After some background remarks on the purpose and functioning of the Carbon Market as well as on the reasons of its establishment in the perspective of the International Climate Change policy implementation, the Report focuses on the different segments and types of the Carbon Market, briefly touching the main features of the EU Emission Trading Scheme market and of the other domestic markets. A more detailed analysis of the CDM market where Non Annex I Countries, such as the Republic of Albania, are likely to play the crucial role of sellers of CERs, is the core part of the Report. The final part of the Report points out some outstanding issues related to the future trends of the Carbon Market and the predictions on its post 2012 scenario.
  1. REPORT II on carbon contracts and related issues (May 2008):
It follows up Report I on the carbon market analysis by presenting the nature and the functions of the contracts used to realize the transactions characterising this market. Furthermore the Report concerns the legal analysis of the main types of carbon contracts used for CERs transactions and of the relevant related legal issues as well as the role played by the contractual parties. The Report also focuses on the recommended content of the carbon contracts and on the analysis of their main clauses. The final part draws up some conclusions building on the expected future role of the carbon contracts in the carbon market and in the entire Kyoto Protocol legal framework
  1. Report on carbon market for Albania (November 2008):
The outcomes of the analysis conducted in Report I on the International Carbon Market analysis and in REPORT II on carbon contracts and related issues conveyed into a third Report providing tailor made suggestions and recommendations for the optimization of the Republic of Albania participation to the Carbon Market. It recalls the reasoning of the two Reports above furthering their content and tailoring it to the Republic of Albania current legislative, economic and social status, with particular regard to the Country’s position according to the UNFCCC and the Kyoto Protocol legal framework.
More in detail, the Country’s Green House Gas reduction potential is analysed with the view to suggest actions for the CDM projects development in Albania, taking into consideration its host Country role, with the aim to improve its opportunities to participate to the carbon market. Finally, the Report identifies the Republic of Albania shortfalls still representing barriers for CERs selling in the carbon market, suggesting actions to overcome these barriers.
  1. The outcomes of the broader activities of cooperation (legal and technical assistance) provided by IMELS to MEFWA from 2006 to 2008 were discussed and presented in the WORKSHOP ON LEGAL AND TECHNICAL ASPECTS OF CERTIFIED EMISSION REDUCTIONS (CERS) AND CARBON MARKET TRANSACTIONS held in Tirana on February 26th 2008. The workshop Agenda focused on the following topics:
  • The cooperation between the Ministry for the Environment Land and Sea of the Republic of Italy and the Republic of Albania;
  • The International and European Climate Change Regime and the Clean Development Mechanism (CDM): Principles, Institutional Aspects, Requirements;
  • The CDM Project Cycle;
  • Albanian Designated National Authority’s (DNA) experience;
  • Recommended structure of the DNA in Albania;
  • CDM Case studies;
  • Legal Issues of generating and trading Certified Emissions Reductions (CERs);
  • From the issuance (ERPA) to the transfer of CERs;
  • Types of carbon contracts for CDM Projects: the CERS Transactions.
In late 2008 the legal assistance for the creation of the DNA culminated in the development and drafting of the proposal of legal act for the establishment of this Authority. More in detail, the following legal act draft proposal was delivered:
  1. Draft Decision of the Council of Minister on the ESTABLISHMENT OF DESIGNATE NATIONAL AUTHORITY FOR CLEAN DEVELOPMENT MECHANISM IN THE FRAMEWORK OF KYOTO PROTOCOL COMMITMENTS:

The draft text of this proposal of Council of Ministers Decision has been developed on the basis of the Reports delivered in years 2007 and 2008 and pursuant to the relevant applicable international and national legislative framework (namely: Article 100 of the Republic of Albania Constitution; Article 1 of Albanian Law No. 9334, dated 16.12.2004, On Adherence of Republic of Albania to Kyoto Protocol; of Article 12 of the Kyoto Protocol; of Article 5 of the Albanian Law No.9791, dated 23.7.2007, On Some Changes and Additions to Law No.9385, dated 4.5.2005 On Forests and Forestry Services; of Article 1, paragraphs 44 and 45 of the Albanian Law No. 9890, dated 20.03.2008, On Some Changes and Additions to Law No. 8934, dated 5.09.2002, On Environmental Protection). It has been structured as follows:

  • CHAPTER I-GENERAL PROVISIONS: Article 1 (Definitions);
  • CHAPTER II-DESIGNATE NATIONAL AUTHORITY: Article 2 (Establishment of Designate National Authority (DNA)); Article 3 (Organization of Designate National Authority (DNA)); Article 4 (Structure of DNA Committee/Technical Secretariat); Article 5 (Responsibilities of DNA Committee); Article 6 (Responsibilities of DNA Technical Secretariat);
  • CHAPTER III-SUBMISSION AND EXAMINATION OF PROJECT IDEA: Article 7 (Project Idea Examination by DNA); Article 8 (Procedures of approval); Article 9 (Necessary supplementary documents); Article 10 (Examination by DNA Technical Secretariat); Article 11(DNA Committee Opinions); Article 12 (Letter of Acceptance);
  • CHAPTER IV-FINAL PROJECT APPROVAL: Article 13 (Submission of Complete Project Document (PDD)); Article 14 (Requirements for Complete Project Document (PDD)); Article 15 (Examination of Complete Project Document (PDD) by Technical Secretariat); Article 16 (Examination and approval of Complete Project Document (PDD) by DNA Committee); Article 17 (Project letter of refusal);
  • CHAPTER V: SELECTION OF DESIGNATE NATIONAL AUTHORITY EXPERTS: Article 18 (Selection criteria for DNA experts); Article 19 (Financial issues); CHAPTER VI-FINAL PROVISIONS: Article 20 (Entry into force).
The draft Decision proposal has been presented with an:
  1. Explanatory note to the Legal Act on the establishment of the DNA in the Republic of Albania, having the purpose to briefly clarify the CDM projects aim and the importance of the DNA’s formal legalisation procedure, at the same time suggesting the most suitable solution for such legalisation in the Republic of Albania. After a brief introduction on the topics raised above, the explanatory note presents and describes the proposal of Legal Act for the formal establishment of the Designated National Authority (DNA) in the Republic of Albania that has been submitted to the Republic of Albania Ministry of Environment, Forestry and Water Administration.
The legal act has been slightly integrated and modified by:
  1. DECISION ON APPOINTMENT OF THE DESIGNATE NATIONAL AUTHORITY OF CLEAN DEVELOPMENT MECHANISM IN THE FRAMEWORK OF THE KYOTO PROTOCOL COMMITMENTS (March 2009);
In parallel with the activities for the establishment and appointment of the DNA, the legal assistance for the development of draft proposal of Rules of Procedures for CDM assessment has been provided. The outcomes of such activity conveyed in the:
  1. Regulation no. 1 dated 25.03.2009 On the Rules and Procedures for Assessment and Adoption of CDM projects.
  2. Q &A for the Republic of Albania DNA (march 2009):

The document provides an operative set of questions and answers useful for the DNA and for the Officials involved in the implementation of the UNFCCC and the Kyoto Protocol in Albania.

  1. The activities for the establishment of the DNA pursued the objective of providing such Authority with the necessary legislative, operative and expertise tools for CDM assessment and attraction. Therefore from April to May 2009 a Capacity Building Programme for the Albanian DNA was held in Tirana. The Capacity Building Programme has been developed through some specific training sessions, focusing on the following topics:
PART I : LEGAL AND INSTITUTIONAL ISSUES
  • Session I: Introductory session: defining the legal, economical and environmental framework:
  1. The international strategy against Climate Change;
  2. Host Country Benefits and Obligations under Kyoto;
  3. Introduction to the CDM;
  • Session II: The Clean Development Mechanism:
  1. The CDM Project Cycle step-by-step;
  2. Key entities involved in the CDM project cycle and their role in the development and evaluation of a CDM project activity;
  3. The Role of the DNA in the evaluation and assessment of PDD;
  4. Follow-up: the DOE and the EB;
  5. Domestic legal issues with an impact on the development of a CDM project activity;
  • Session III: Developing a CDM project and the role of the DNA:
  1. Key Concepts in a CDM project activity;
  2. Developing a PDD;
  3. Special Cases of CDM Project Activities;
  • Session IV: Special Types of PDD:
  1. Special Types of PDD;
PART II: THE REPUBLIC OF ALBANIA AND THE KYOTO PROTOCOL
  1. Status and obligations of the Republic of Albania under the Kyoto Protocol;
  2. The Republic of Albania and the CDM: establishing the suitable framework to host CDM projects.
METE: From 2008 the ELT provides the Albanian Ministry for Economy, Trade and Energy with the legal assistance for the harmonization of the Albanian legislative framework in the energy field with the acquis communautaire with focus on the establishment of the legislative framework for the promotion of Renewable Energy .
To this respect, the ELT assisted METE for the development of the primary and secondary legislation in Energy field and operated in the following sectors:
  • Gap analysis of the Albanian Power Sector Law and drafting of the necessary amendments in line with the EU applicable legislation
  • Drafting of the Regulation on the procedures for granting the authorisation for new energy installations
  • Drafting of the new Renewable Energy Framework Law.
More in detail, the following Reports have been delivered in the framework of the IMELS-METE bilateral cooperation:
  1. Report on the Comparative analysis of the Albanian renewable energy primary legislation with the EU acquis communautaire and relevant Italian legislation on renewable energy sources (July 2008):

The analysis of the Report aims at providing the legal support for the modification and approximation of the Albanian primary legislation on renewable energies with the EU (Directive EC/2001/77 and EC/2003/54) and Italian ( Legislative Decree 387/2003, Legislative Decree 79/1999 and Law 239/2004) models through a comparative analysis of the Albanian renewable energy primary legislation with the EU acquis communautaire and relevant Italian legislation on renewable energy source. The first chapter of the Report focuses on the EU framework legislation and policy on renewable energy, particularly analysing the principles and guidelines expressed in the EC directives 2001/77 and 2003/54 and in the EU Commission Renewable Energy Road Map. Chapter two presents the Italian legislation in the sector of renewables, designed on the basis of the EU one. Finally, chapter three is dedicated to the Republic of Albania power sector law, no. 9072 of 2003, as in force at the time of release of the Report, providing a comparative analysis with the two models mentioned above, with the purpose of clarifying its features, shortcomings and need of modification with the ultimate aim to eventually facilitate the adoption of a new Renewable Energy Law, regulating separately the entire renewable energy sector. The report concludes with some final remarks and incisive Recommendations on how to improve the Republic of Albania energy legislation. These final recommendations were suggested with the intent to provide a basis for the new Albanian Renewable Energy Law and to approximate it to the EU and Italian models, by exhaustively regulating the renewable energy sector, its promotion and development, in the light of the outcomes of the analysis developed in the first three chapters.

  1. Report on the Criteria for the Grant of the Authorisations for the Construction of Generating Capacity in the Republic of Albania (June 2008):
This Report concerns the criteria to be followed in the procedure for granting the authorisation for the construction of new capacities in the Republic of Albania. More in detail, it is divided into two parts: the first one, analysing the EC relevant legislative framework, represented by article 6 of EC directive 2003/54; the second one focusing and analysing the Italian relevant legislative framework, represented by article 12 Legislative Decree 387/2003, article 8 Legislative Decree 79/1999, articles 3 and 4 Law 239/2004 and some relevant Regional Plans and Programmes, called Piani di Indirizzo Energetico e Ambientale Regionali (PIEAR), regional plans and actions for energy and environmental programmation. The final part of this Report draws some useful conclusions based on the contents of the two Sections of the Report. The outcomes of this Report provide legal support for the drafting of the Republic of Albania secondary legislation on the procedure for granting the authorisation to energy capacities, including RES-E, when not already granted a concession.
  1. Taking into consideration the analysis of Report on the Criteria for the Grant of the Authorisations for the Construction of Generating Capacity in the Republic of Albania a draft proposal of Regulation on Procedures for Granting of Authorizations for Construction of Power Plants not Subject of Concession was submitted to METE.

The Council of Ministers has adopted a regulation on the procedures for granting authorization for construction of new power generation capacity, which defines the requirements and time schedule of getting a generation authorization, based on the draft proposal mentioned above.

  1. Comments to the Republic of Albania draft Law on Renewable Energy (February 2009):

The Document represents a background primary step to identify the gaps and needs of revision of the Albanian Legislative framework related to RES in order to harmonise it with the EU targets and model.

  1. Report on Proposal of amendment to the Republic of Albania Renewable Energy draft Law with particular regard to the RES-E support schemes (June 2009):
This Report supports the Republic of Albania activities on renewable energy promotion. It represents the background for the drafting of a comprehensive and effective primary and secondary legislative framework for the promotion of Renewable Energy Sources Electricity (RES-E), as a fundamental step for harmonization to the EU relevant acquis, as well as for the establishment of an effective National Policy ensuring environmental protection, sustainable development achievement, climate change mitigation, security of energy supply and market competitiveness. It follows up and integrates the findings and final recommendations of the Report on the Comparative analysis of the Albanian renewable energy primary legislation with the EU acquis communautaire and relevant Italian legislation on renewable energy sources delivered to (METE) in April 2008 and of the Report on the Criteria for the Grant of the Authorisations for the Construction of Generating Capacity in the Republic of Albania delivered in June 2008 as well as the Comments to the Republic of Albania draft Law on Renewable Energy delivered in February 2009. More in detail, taking into utmost consideration the content and the outcomes of the two Reports mentioned above as well as the legislative novelties entered into force in 2009 (firstly EC Directive 2009/28) this Report focuses on the opportunity for the Republic of Albania to establish an appropriate support scheme for the promotion of RES-E, based on the EU and the Italian experiences. This Report is composed of five Parts: Part I briefly identifies the general structure and features of the main support schemes; Part II focuses on the Green Certificates System; Part III presents the relevant EU legislative framework for RES-E promotion with particular regard to the Green Certificates; Part IV presents the relevant Italian legislative framework for RES-E promotion with particular regard to the Green Certificates and the Feed-in Tariff incentive schemes; Part V sets some concrete proposals of amendment of the current draft Law for RES promotion of the Republic of Albania, taking into consideration the results of the analysis of Parts I to IV.
  1. Proposal of draft LAW ON RENEWABLE ENERGY SOURCES (October 2009-March 2010):
The outcomes of the Reports delivered to METE conveyed in the drafting and development of the text of a proposal of draft Law on Renewable Energy Sources, based on EC Directive 2009/28 and aiming at establishing the legislative framework for RES-E promotion. The draft proposal is structured as follows:
  • CHAPTER I- GENERAL PROVISIONS: Article 1 (Purpose); Article 2 (Object); Article 3 (Definitions);
  • CHAPTER II-NATIONAL TARGETS AND MEASURES FOR USE OF ENERGY FROM RENEWABLE SOURCES: Article 4 (National targets of renewable energy sources); Article 4/1(Quota obligation of electricity produced from renewable); Article 5 (National Renewable Energy Action Plan); Article 6 (Calculation of the share of energy from renewable sources); Article 7 (Measures for the use of energy from renewable sources); Article 8 (Information and training); Article 9 (Renewable energy fund); Article 10 (Management of renewable energy fund);
  • CHAPTER III- PROMOTION OF ELECTRICITY PRODUCTION FROM RENEWABLE SOURCES: Article 11 (Support for streamlining licensing and permitting procedures); Article 12 (Connection to grid); Article 13 (Grid connection costs); Article 14 (Obligation to purchase the electricity produced from renewable energy sources); Article 15 (Feed-in tariffs); Article 16 (Regular evaluation); Article 17 (Specific provisions for hybrid plants);
  • CHAPTER I-GUARANTEES OF ORIGIN OF ELECTRICITY PRODUCED FROM RENEWABLE ENERGY SOURCES AND GREEN CERTIFICATES: Article 18 (The guarantees of origin); Article 19 (Assurance mechanism); Article 20 (Green Certificates); Article 21(Green Certificates and quota obligation); Article 22 (Development and regulation of green certificates market); Article 23 (International cooperation on Guarantees of Origin and Green Certificate system);
  • CHAPTER V-SPECIFIC PROVISIONS FOR SOLAR WATER HEATERS: Article 24 (Promotion of SWH);
  • CHAPTER VI-FINAL PROVISIONS: Article 25 (Administrative sanctions); Article 26 (Secondary legislation); Article 27 (Entry into force).