Climate change mitigation and adaptation at project level

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Climate change mitigation and adaptation at project level - 5 years' experience EWRC 2019

Climate change mitigation and adaptation at project level - 5 years' experience EWRC 2019 – 9 th of October Presenation by Ms. Camelia Mihaela Kovács and Mr. Witold Willak Unit F. 1 Closure and Major Projects Directorate General for Regional and Urban Policy Regional Policy

Major projects in cohesion policy – a snapshot • Thousands of major projects in

Major projects in cohesion policy – a snapshot • Thousands of major projects in XX century, 1121 CF and 258 ERDF adopted major projects in 2000 -2006 2007 -2013 AND 2014 -2020 MAP other ENER R+D TRAN ENV • 970 adopted major projects in 2007 -2013 • 265 adopted major projects in 2014 -2020 • Another 250 major projects will be still submitted in 2014 -2020 • First funds to introduce climate change requirements into legislation for their funded operations Interactive map is available: http: //ec. europa. eu/regional_policy/mapapps/major_projects/mpall. html Regional Policy

What investments need to reconcile: economic development and Nature’s protection Regional Policy

What investments need to reconcile: economic development and Nature’s protection Regional Policy

Water use Source: EC, DG MARE. E. 2 Regional Policy 4

Water use Source: EC, DG MARE. E. 2 Regional Policy 4

Land use Regional Policy

Land use Regional Policy

Air use Regional Policy

Air use Regional Policy

What we did to make it manageable Legislation Mapping of the situation Guidance Cooperation

What we did to make it manageable Legislation Mapping of the situation Guidance Cooperation agreements Trainings 7 Regional Policy

Major Project – needed and requested information • • General type of info Authority

Major Project – needed and requested information • • General type of info Authority responsible for project application Body responsible for project implementation (beneficiary) Project description Project objectives Total costs and total eligible costs Total planned financial resources from EU funds and all other sources of financing Project timetable and output indicators Particular info • Feasibility studies carried out, including option analysis and the results • Cost-Benefit Analysis, including a financial and economic analysis, and risk assessment (and sensitivity analysis) • The environmental and climate change profile of the project Regional Policy

 • How the project contributes to climate change targets? • How climate change

• How the project contributes to climate change targets? • How climate change related risks, adaptation and mitigation considerations, and disaster resilience have been taken into account? • What measures have been adopted to ensure resilience to current climate variability and future climate change? • Cost of measures taken to mitigate and/or compensate negative environmental impacts? Regional Policy Funding request Start implementation Step 1 Check the National Strategic documents Step 5 Put your project documents together Project’s climate profile Step 4 Perform CBA (Full or Simplified) Step 2 Check EIA Directive Step 3 Perform Options Analysis + Feasibility Study

Climate change related additional questions • Climate mitigation – project’s impact on the climate

Climate change related additional questions • Climate mitigation – project’s impact on the climate • • • Was a less carbon intense or based on renewable sources alternative considered? How did the analysis of ranking of relevant options take into account climate issues? Did climate change influence the location of the project? How were the volume of greenhouse gas externality and external costs of carbon assessed? Will the project in combination with climate change have any positive and/or negative impacts on the surroundings? Climate adaptation – climate’s impact on the project • • Regional Policy How was climate change taken into consideration when designing the project and its components for example with regards to external forces • wind load, • snow load, • temperature differences and impacts e. g. • heat waves, • drainage, • risk of flooding, • prolonged dry periods affecting soil characteristics?

The choices are not easy but not impossible either Case #1 Case #2 Case

The choices are not easy but not impossible either Case #1 Case #2 Case #3 • Project financially profitable • Substantial environmental and climate damage • Society is overall worse with the project than without it • Project financially profitable • No substantial environmental and climate damage • Society is better off with the project than without it • Project not financially profitable but feasible • No substantial environmental and climate damage • Society is better off or worse with the project? Regional Policy

What is CBA according to literature? Cost-Benefit Analysis (CBA) is an analytical tool used

What is CBA according to literature? Cost-Benefit Analysis (CBA) is an analytical tool used to assesses whether a project or a policy is desirable from the point of view of the society as a whole and it is worth implementing. Desirability is achieved when total social benefits of an intervention exceed the total costs of that intervention. Benefits are defined as increases in wellbeing and costs are defined as reductions in wellbeing. Regional Policy

COST BENEFIT ANALYSIS IN CONTEXT OF COHESION POLICY • PROJECT CONCEPT AND FEASIBILITY –

COST BENEFIT ANALYSIS IN CONTEXT OF COHESION POLICY • PROJECT CONCEPT AND FEASIBILITY – what is my project and is it feasible? • FINANCIAL ANALYSIS – does the project need EU financing and will it be sustainable? • ECONOMIC ANALYSIS – is the society better off with the project? • RISK ASSESSMENT – how to deal with uncertainties and make sure the project goes ahead as planned? Regional Policy

Reinforced elements in CBA 2014 -2020 v RISK ANALYSIS v Usually costs are underestimated,

Reinforced elements in CBA 2014 -2020 v RISK ANALYSIS v Usually costs are underestimated, and benefits overestimated – sensitivity analysis is essential v More qualitative risk analysis v Risk matrix with risks, probabilities, mitigation, residual risks v List of most common risks to be addressed including climate change related ones v National risk matrices as basis for beneficiaries Regional Policy

Climate change related Risk matrix - example 15 Source: JASPERS and DG CLIMA Regional

Climate change related Risk matrix - example 15 Source: JASPERS and DG CLIMA Regional Policy

Core info sources: Secondary legislation related to major projects for 2014 -2020 • v

Core info sources: Secondary legislation related to major projects for 2014 -2020 • v THE METHODOLOGY TO UNDERTAKE IQR / THE REVENUE-GENERATING PROJECTS - the Commission Delegated Act no 480/2014 (OJ 2014 L 138 13. 05. 2014); v "NOTIFICATION FORM" AND IQR REPORT TEMPLATE the Commission Implementing Regulation (EU) No 1011/2014 of 22 September 2014 (OJ L 286, 30. 9. 2014, p. 1); v COST-BENEFIT ANALYSIS (CBA) and "APPLICATION FORM" – the Commission Implementing Regulation 207/2015 (OJ L 38 of 20 January 2015); Non-Legislative guidance: v CBA GUIDE – published on 19 December 2014 v http: //ec. europa. eu/regional_policy/index. cfm/en/in formation/publications/guides/2014/guide-to-costbenefit-analysis-of-investment-projects-for-cohesionpolicy-2014 -2020 Regional Policy 16

Core Info sources: Other o Major Projects: http: //ec. europa. eu/regional_policy/en/projects/major/ o 2018 Study

Core Info sources: Other o Major Projects: http: //ec. europa. eu/regional_policy/en/projects/major/ o 2018 Study on "Climate change adaptation of major infrastructure projects": https: //ec. europa. eu/regional_policy/en/information/publications/studies/ 2018/climate-change-adaptation-of-major-infrastructure-projects (at the bottom of the webpage there are links to the annexes including e. g. the country reports) o Major Projects on ESIF Open Data Platform: https: //ec. europa. eu/regional_policy/en/newsroom/news/2017/10/10 -022017 -esif-open-data-platform-expands-to-major-projects EIB: o Carbon Footprint Methodology: http: //www. eib. org/en/about/documents/footprint-methodologies. htm JASPERS: o Requirements for major projects: http: //www. jaspersnetwork. org/plugins/servlet/document. Repository/displ ay. Document. Details? document. Id=421 Regional Policy

“BE THE CHANGE YOU WANT TO SEE IN THE WORLD” Mahatma Gandhi Regional Policy

“BE THE CHANGE YOU WANT TO SEE IN THE WORLD” Mahatma Gandhi Regional Policy

Thank you for your attention! UNIT F 1 – CLOSURE AND MAJOR PROJECTS DIRECTORATE

Thank you for your attention! UNIT F 1 – CLOSURE AND MAJOR PROJECTS DIRECTORATE GENERAL FOR REGIONAL AND URBAN POLICY CONTACT POINT: REGIO-MAJOR-PROJECTS@EC. EUROPA. EU Regional Policy