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University of Siena Environmental Legal Team (ELT) Legal Assistance in the Former Yugoslav Republic of Macedonia

The ELT provides legal assistance to the Macedonian Ministry for the Environment and Physical Planning for the drafting of the environmental legislation implementing the acquis communautaire and supports Macedonia in the creation of the legislative framework for CDM approval, providing a permanent legal support for the UNFCCC and Kyoto Protocol implementation. More in detail, the activities aiming at supporting the process of harmonization of the national legislation with the EU acquis focus on the analysis of the EU legislation on IPPC and Emission Trading, with the view to provide Macedonia with the assistance for drafting the necessary amendments to its Law on the Environment, a framework Law regulating all the relevant aspects and issues in the environmental sector.
With regard to the implementation of the UNFCCC and the Kyoto Protocol, the following Reports have been delivered:
  1. Report on the Establishment of the DNA and Rules of Implementation in the Republic of Macedonia (May 2006):
The Report provided a preliminary analysis of the legal and technical issues to be developed for the establishment of the DNA and for the identification of the rules for the implementation of the UNFCCC and the Kyoto Protocol. It provided a background introduction to the CDM structure and functions and to the DNA role as well as a checklist for the establishment of the DNA and for the implementation of the CDM legislative framework in Macedonia.
  1. Summary of the Macedonian Legislation relevant for UNFCCC and Kyoto Protocol implementation (February 2007):
This document identifies the Macedonian legislation whose application is relevant for the implementation of UNFCCC and Kyoto Protocol. Therefore it provides a useful overview on the Macedonian environmental legislation related to climate change as in force at the time of delivery of the Summary (namely the Law on Environment, the Law on waters, the Law on Ambient air quality and the Law on waste management) with the aim to analyse its gaps and needs of harmonization with the EU acquis.
  1. Guidelines for the Creation of the Suitable Framework to host CDM in the Republic of Macedonia (May 2007):
This Report provides some useful guidelines for the creation of the suitable legislative and Institutional framework to develop CDM projects in Macedonia. It analyses and describes the legal framework related to the structure and functions of CDM projects and the requirements for hosting CDM projects. Furthermore it deeply analyses the legal issues related to the establishment of the DNA and the conditions that Macedonia is required to satisfy to create its DNA. Optimal models of legislative models and governance are suggested at the end of the Report. Finally, according to the proposed structure and functions of the Macedonian DNA, the following forms are enclosed as Annexes: 1) Request for issuance of a Letter of Endorsement; 2) Letter of Endorsement; 3) Checklist for compliance of the PIN and PDD with the Sustainable Development Criteria; 4) Checklist for compliance of the PIN and PDD with the National Legislation; 5) List of documents that should be submitted to the DNA; 6) Request for issuance of a Letter of Approval; 7) Letter of Approval; 8) Sample Statement of the fulfilment of the Environmental Impact Assessment (EIA) by the CDM project; 9) Sample Statement of confirmation of the legal certainty of emission reductions; 10) Draft Rules for the modalities, the form and the conditions for the verification of the compliance, the submission and the approval of the CDM projects.
  1. A Workshop on Legal and Technical Issues related to CERs and Carbon Market Transactions was held in Skopje on November 28th 2007, to present, analyse and discus the following issues:
  • The International and EU climate change regime;
  • The principles, institutional aspects and requirements of the CDM;
  • The International and EU Carbon market;
  • The carbon contracts for CERs transactions.
  1. Report on Guideline framework of relevant legislation and procedures to develop CDM projects sector by sector in Republic of Macedonia (January 2008):
This Report provides the guidelines related to the specific and technical rules not provided by the UNFCCC and the Kyoto Protocol applicable within host country domestic legal systems to implement CDM projects. In particular, it addresses the Macedonian administrative and legislative requirements that CDM Project developers shall refer to in order to concretely develop a CDM projects (namely: Macedonian property law, Macedonian Law on concession procedure, Macedonian Law on foreign direct investments as well as the legislation regulating the Environmental Impact Assessment and the public participation in the environmental decision making).
After analyzing these issues, other relevant legislation that needs to be followed when implementing CDM projects is considered in the Report. Bearing in mind the main division of the CDM activities by scope, the analysis of Macedonian legislation carried out mainly focuses on the three major sectors that are recognized within the National Strategy for CDM in Republic of Macedonia adopted by the Government of Republic of Macedonia in February 2007: energy sector, waste sector and forestry sector.
  1. Report on the Legislative barriers for the implementation of CDM projects in the Republic of Macedonia (April 2008):
This report follows up with the Guideline framework of relevant legislation and procedures to develop CDM projects sector by sector in Republic of Macedonia, by identifying the Macedonian legislation applicable in the energy, waste and forestry sectors that is relevant for the implementation of CDM projects types falling into these three areas. The analysis carried out focuses not only on the relevant applicable legislation but also on the identification of the main legislative barriers and gaps to the implementation of CDM projects in Macedonia and on the possible suggestions for improvements of the legislative system in the energy, waste and forestry sectors. The ultimate aim is to achieve a legislative environment suitable for hosting CDM projects in Macedonia.
  1. Report on Contracts related to CDM Projects, including Agreements between Site owners and Investors (June 2008):
The Report concerns the legal analysis of the main types of contracts related to the development of CDM projects. In particular it focuses on carbon contracts used for CERs transactions and on contracts between projects’ hosts and investors. More in detail, the Report firstly introduces the main elements, features and types of carbon contracts, as well as their function in the carbon market and the role played by the contractual parties. The sequent Section of the Report focuses on the most relevant and frequently used contractual type, the Emission Reduction Purchase Agreement (ERPA). Here its recommended content is considered and an analysis of the main clauses is provided.
The final Section of the Report describes the main features of a specific category of contracts, the ones between projects’ hosts and investors and the relevant applicable legislation in Republic of Macedonia related to the following issues:.
  • Ownership of the location.
  • Concession contracts.
  • Land lease contracts.
  • Foreign direct investment framework.
  • Joint ventures.
  • Additional issues to be resolved.
Finally, the Report highlights some outstanding issues which should be taken into account when drafting and concluding such contracts.
  1. Report on Guidelines for the Formulation of Sustainable Development Criteria for CDM Projects Assessment in the Republic of Macedonia (October 2008):
The Report analyses the following issues under a Law and Policy perspective, with the view to provide the Macedonian DNA with the necessary and effective tools for CDM assessment, namely a set of sustainable development indicators and a matrix tool to evaluate the contribution of CDM to the national sustainable development :
  1.  Sustainable Development and the CDM
  2. Sustainable Development in the Republic of Macedonia
  • Some general principles and institutional aspects arising from a first assessment of the Draft National Strategy for Sustainable Development
  1. Methodologies for the Assessment of Sustainable Development Criteria
  2. Guidelines for Formulation of Sustainable Development Criteria
  • Sustainable Development Criteria and Indicators Matrix.
  1. Report on the approximation of the Emission Trading Schemes in the Republic of Macedonia (October 2009):
This Report focuses on the status of Non Annex I Country currently held by the Republic of Macedonia and on the legislative and regulatory consequences this status entails under the UNFCCC and the Kyoto Protocol. It analyses these issues in the perspective of EU accession with particular regard to the opportunities for the Country to harmonise its legislation with the EU ETS. To this end, the Report analyses the duties and the obligations that Macedonia may assume in respect of the evolving international and European normative scenarios, with a particular focus on normative provisions relating to GHG emission trading. The Report concludes with some useful recommendations for the implementation of certain climate change mitigation measures in the republic of Macedonia.