URUGUAY

Proposed projects for financing

_________________________

Ministry of Housing, Land Planning and Environment- MVOTMA

National Environment Directorate- DINAMA

Climate Change Unit – UCC

March 2011

Antigua y Barbuda

1- National Circumstances and status of National Communications

2- Institutional Arrangements.

3- National GHG emissions

5- Projects identified from the SNC

6- Third National Communication and National Plan on Climate Change: Development of Uruguay’s Portfolio of Adaptation and Mitigation Projects for Financing

7- Key Remarks and lessons learned

OUTLINE OF THE PRESENTATION

MAIN FEATURES

•Continental territory: 176.215 km2

• Territorial sea: 140.000 km2.

•Population: 3.241.003

•Climate: located in the temperate zone, with

temperatures of 17.5°C, humidity of 75% and

annual accumulated rainfalls of 1,300 mm. •Most adverse climate phenomena: hydrometeorological events such as droughts, floods, frosts, heat waves. •In the last ten years, the country has experienced extreme floods and droughts, increasing both in intensity and frequency as compared to historical records.

URUGUAY I NATIONAL CIRCUMSTANCES

URUGUAY I NATIONAL CIRCUMSTANCES

•The agriculture sector is very important in the economy of the country. Livestock, crops and forestry are the main sources for exports.

•The tourism is also important, mainly in the coastal zone.

•Primary energy supply depends on hydropower and oil. Energy from wind and biomass waste sources were introduced to the power grid in 2007 as part of the implementation of the national energy policy 2005-2030.

URUGUAY I INSTITUTIONAL ARRANGEMENTS

•UNFCCC Ratification:1994. Kyoto Protocol Ratification: 2000.

•Ministry of Housing, Land Planning and Environment (MVOTMA): created in 1990 and designated as National

Authority on Climate Change in 1990.

•COTAMA: Technical Advisory Committee on Environment, formed by gov. agencies and Ministries, private sector,

NGOs.

•May 2009: National System to Respond to Climate Change and Variability (SNRCC) was created.

•February 2010: National Plan on Climate Change (PNRCC) was presented

URUGUAY - NATIONAL COMMUNICATIONS

• 1997. Initial National Communication

• 2004. Second National Communication.

• 2010. Third National Communication.

NATIONAL EMISSIONS OF GREENHOUSE GASES

• Total of national emissions: 36.280 kton CO2 equiv.

• Total of national removals: -10.348 kton CO2 equiv.

• Agriculture sector accounted for 80 % of the 2004 national emissions expressed in equivalent CO2. CH4 46%N2O 34%

• Energy sector accounted for 12% of the 2004 national emissions expressed in CO2 eq.

• Waste sector accounted for 3%

Uruguay projects identified from the measures inclduded in the SNC

Second National Communication identified a number of measures of mitigation and adaptation and its associated costs of implementation

Mitigation: priority to renewable energies in the context of the National Energy Policy 2005-2030

PROJECTS PROPOSED FOR FINANCING:

1. Energy Efficiency Project2. Wind Energy Programme3. Electricity Production from Biomass

Adaptation: priority to coastal zones and agriculture

PROJECTS IDENTIFIED FOR FINANCING1. Implementation of adaptation measures in the

coastal zone2. Adaptation in the agriculture sector

Energy Efficiency ProjectSubmitted to GEF and approved. (2005)Objective: to increase efficiency in the use of energy, reduce

dependence of Uruguay’s economy on electricity and fossil fuels and to reduce emissions from the energy sector

USD 6.875.000 (GEF) and USD 6.700.000 (Uruguay Government)Reduction of 559.000 ton CO2

Wind Energy ProgrammeSubmitted to GEF and approved. Objective: to contribute to the removal of barriers for the development of commercially viable wind energy investments in the country , the establishment of a 5 MW showcase as a basis for replication and to the reduction of GHG emissions,GEF: USD 950.000UNDP (TRAC): USD 35.000Government USD 5.975.000

Uruguay projects identified from the measures inclduded in the SNC

Electricity Production from Biomass in Uruguay

Submitted to GEF and approved. (2010)Objective: To promote the integration of biomass-based power generators into the national

electricity grid by the development and implementation of scenarios for the sustainable, large-scale exploitation of domestic forestry and agro industry biomass resources, including the installation of one biomass-based electricity generator (5 MW)

320,000 tons CO2 over a 20-year lifetime period (direct) and 1,900,000 tons of CO2 (indirect) USD 950.000 (GEF) USD 775.000 (Uruguay Government)USD 25.000 UNDP CO (TRAC)USD 6.750.000 (Private sector)

Implementation of pilot adaptation measures in Uruguay coastal areas

Submitted to GEF (SPA) and approved (2007)Objective: to contribute to the establishment of policies and practices on land planning

and coastal management that increase coastal ecosystems resilience to climate change.GEF: USD 975,000Uruguay Gov. USD 1,730,000 Spain Gov. USD 24,000UNDP BCPR USD 170,000Local Gov. (Canelones)USD 1, 000,000

Adaptation in the agriculture sector in Uruguay

First version prepared for submission to SCCF in 2006, never submitted (waiting for replenishment of the SCCF)

Concept note on a new version of the project was submitted to the AF through our National Implementing Entity under the AF, approved March 2011

THIRD NATIONAL COMMUNICATION

NATIONAL PLAN ON CLIMATE CHANGE

It ‘s recognized by the Gov. of Uruguay as the tool to integrate climate change in the country’s long term development strategy.

It contains the national strategic lines of action on climate change, and the measures for mitigation, adaptation and cross-cutting issues. Although national resources have been committed to its implementation, they are not enough, and external financial assistance is needed.

During 2011, a project portfolio based on these measures is being developed, to help the country to get the support needed (probably to be reported in the 4th Nat Com.)

Key remarks and Lessons Learned

• Include plans/policies/measures under implementation as well as envisaged ones in NC.

• Including projects ideas as well as envisaged plans/programmes in the NC is not a guarantee for getting the financial resources needed, but it could help to get support.

• Including those project ideas/plans/programmes is just the first strategic step for the process of getting support. The projects will not get the financing just for being reported in the NC, further steps will be needed, but we think that it facilitates the future submissions of these projects to financing entities.

• The current process of developing the project portfolio is based on the prioritization of the measures from the National Plan, that was done through a stakeholder consultation to define the short term priorities. This prioritization was reported in the TCN as a first approximation to the project portfolio for financing.

THANK YOU

March 2010

Climate Change UnitDINAMA –MVOTMAURUGUAYwww.cambioclimatico.gub.uy