UNDP in Ukraine

PROJECT'S mission is to render support to the Government in efficient application of the sustainable development principles and practices at the regional level in order to improve socio-economic and ecological situation in one of the country's most vulnerable regions.

Address: 42, Kirova Street, Lugansk, Ukraine Tel.: +38 (0462) 33 15 89 Project Manager: Aleksandr Severin National Programme Director: Oleksandr Arapov UNDP Programme Manager: Sergei Volkov

Energy and Environment

Project status: closed

Duration: 2006- 31.12.2012

Project document: full text

WHAT IS THE SITUATION

Ukraine is one of the largest global coal producers - it is the tenth largest coal producer in the world and has substantial coal reserves. Coal mining industry is estimated to account for about 10% of all human-related methane emissions. Methane as a by-product of the coal production process is trapped in coalfields and released during and after mining. Methane explosions have caused disasters, both in terms of substantial loss of human lives and damage to physical infrastructure in underground coalmines all over the world.

Ukraine's First National Communication on Climate Change determines the total emission of methane from Ukrainian landfills in 1990 as 934,000 tones (18.7 million tones of CO2 equivalent). Landfills near urban settlements, especially large ones, have become a dangerous source of environmental pollution globally as well as locally. Emissions of methane and carbon dioxide generated during the anaerobic (without oxygen) decomposition of SDW contribute to changes in global climate. Thus, uncontrolled gas emissions in operating and closed landfills constitute a serious threat for environmental and human health. This issue can be partially solved by controlled capture and diversion of the landfill gas (LFG)

HOW ARE WE CARRYING OUT OUR MISSION?

PROJECT'S MISSION is to render support to the Government in efficient application of the sustainable development principles and practices at the regional level in order to improve socio-economic and ecological situation in one of the country's most vulnerable regions.

This complex process has been arranged through development and institutionalisation of the national mechanisms of public-private partnership, inclusive approach/community participation in decision making and use of international financing mechanisms for environmental protection and sustainable development.

PROJECT OBJECTIVES:

1. To achieve a large-scale increase in urban employment targeting economically and socially disadvantaged groups through labour intensive public works, vocational training and small and medium enterprises (SME) contracting.

2. To promote sustainable development practices at the local level.

3. To strengthen institutional capacities and capabilities of municipalities and civil society organizations through improved policies and practices related to environmental and energy services.

EXPECTED RESULTS:

1. Sustainable economic development through pro-poor policy reform.

2. Sustainable development policies and practices make the difference.

PROJECT'S ACTIVITIES:

Project activities consist of 3 components:

1. Support to development of transport infrastructure in Lugansk Region (oblast) including city and inter-city service.

Activity 1. Support to development of the Lugansk oblast transport infrastructure network Development Plan including city and inter-city service.

Activity 2. Attraction of investors to realisation of the Development Plan through Public-Private Partnership (PPP) mechanism.

Activity 3. Implementation of the Demonstration Project of transport infrastructure network development through PPP mechanisms

2. Removing barriers for coal bed methane utilization in Lugansk oblast through the Joint Implementation Mechanism (JI) of the Kyoto Protocol.

Activity 4. Selection of the project sites and development of the technical and technological solutions for the utilization of the coal mine methane in Lugansk oblast.

Activity 5. Development of the Project Idea Note (PIN) in accordance with the requirement for JI projects

Activity 6. Implementation of the preliminary financial analysis of the planned technical and environment protection activities.

Activity 7. Search for a potential investor for JI project and approval of the conditions of joint activities between JI project owner and potential investor.

Activity 8. Development of Project Development Document (PDD) for the key project.

Activity 9. Arrangement and development of the contractual documents to sign and Agreement on the conditions of the joint project activities between the project owner and investor. The contract shall obligatorily reflect the conditions for the sale of Emission Reduction Units (ERUs) derived by the Project and specify the recipient of these ERUs .

Activity 10. Support to implementation of the demonstration JI project on coal bed methane utilisation in Lugansk oblast.

3. Removing barriers for urban landfills recovery and landfill methane utilisation through the Joint Implementation Mechanism (JI) of the Kyoto Protocol.

Activity 11. Selection of the project sites and development of the strategy for urban landfills recovery and landfill methane utilisation including technical and technological solutions.

Activity 12. Development of the Project Idea Note (PIN) in accordance with the requirement for JI projects.

Activity 13. Implementation of the preliminary financial analysis of the planned technical and environment protection activities.

Activity 14. Search for a potential investor for JI project and approval of the conditions of joint activities between JI project owner and potential investor.

Activity 15. Development of Project Development Document (PDD) for the key project.

Activity 16. Arrangement and development of the contractual documents to sign and Agreement on the conditions of the joint project activities between the project owner and investor. The contract shall obligatorily reflect the conditions for the sale of Emission Reduction Units (ERUs) derived by the Project and specify the recipient of these ERUs.

Activity 17. Support to implementation of the demonstration JI project on landfill methane utilisation.

Activity 18. Effective project management and advisory support services.

OUR PARTNERS

Lugansk Regional State Administration, UNDP, European Bank of Reconstruction and Development, World Bank, International Financial Corporation, European Union.

Project delivery as of 31 December 2011:

USD 914 366,75

RESULTS AND ACHIEVEMENTS:

1.  Introduction of the FIRST Joint Implementation project on landfill methane utilization in Ukraine. Burning the methane which is released into the atmosphere is expected to reduce greenhouse gas emissions CO2e by approximately 18,000 tons per year. Project has been highly estimated by Government of Ukraine, local municipalities, national and international partners and donors.

2. Project site for coal bed methane utilisation has been selected; business plan and Project Idea Note have been developed; potential investor has been found.

Reports

Progress Report 2008-2011. Sustainable Development Programme of Lugansk Oblast

Video: Lugansk, Ukraine Carbon Project video

Photos: Lugansk, Ukraine Carbon Project photos.