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GEF/UNEP, Jamaica: LGGE Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica, 10-2012

GEF/UNEP, Jamaica: LGGE Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica, 10-2012

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Naokolshii,PhD

GLOBAL ENVIRONMENT FACILITY
INVESTING IN OUR PLANET

Chief Executive Officer and Chairperson

October 09, 2012

1818 HStreet, NW Washington, DC 20433 USA Tel: 202.473.3202 Fax: 202.522.3240/3245 E-mail: Nishii@TheGEF.ot·g

www.TheGEF.org

Dear Council Member, The UNEP as the Implementing Agency for the project entitled: Jamaica: LGGE Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica under the Global: LGGE Framework for Promoting Low Greenhouse Gas Emission Buildings, has submitted the attached proposed project document for CEO endorsement prior to final Agency approval of the project document in accordance with the UNEP procedures. The Secretariat has reviewed the project document. It is consistent with the project concept approved by the Council in June 2010 and the proposed project remains consistent with the Instrument and GEF policies and procedures. The attached explanation prepared by the UNEP satisfactorily details how Council's comments and those of the STAP have been addressed. We have today posted the proposed project document on the GEF website at www.TheGEF.org for your information. We would welcome any comments you may wish to provide by November 06, 2012 before I endorse the project. You may send your comments to gcoordination@TheGEF .org . If you do not have access to the Web, you may request the local field office ofUNDP or the World Bank to download the document for you. Alternatively, you may request a copy of the document from the Secretariat. If you make such a request, please confirm for us your current mailing address.
Sincerely,

I
l

Attachment: Copy to:

Project Document Country Operational Focal Point, GEF Agencies, STAP, Trustee

REQUEST FOR CEO ENDORSEMENT/APPROVAL
PROJECT TYPE: Full-sized Project THE GEF TRUST FUND Submission Date: PART I: PROJECT INFORMATION GEFSEC PROJECT ID: 4167 Duration: 48 months GEF AGENCY PROJECT ID: COUNTRY(IES): Jamaica PROJECT TITLE: Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica GEF AGENCY(IES): UNEP, OTHER EXECUTING PARTNER(S): University of the West 9/07/ 2012

Expected Calendar (mm/dd/yy) Milestones Dates

Indies (UWI) with technical and advisory support from the Ministry of Transport, Works, and Housing (MTWH); the Ministry of Water, Land, Environment, and Climate Change (MWLECC); Ministry of Science, Technology, Energy, and Mining (MSTEM); Bureau of Standards (BoS); the proposed Environmental Regulatory Authority (ERA); Jamaica Green Building Council (JGBC); Jamaica Institute of Architects (JIA); Incorporated Masterbuilders Association of Jamaica (IMAJ); Scientific Research Council (SRC); Office of Disaster Preparedness and Emergency Management (ODPEM); Institute for Sustainable Energy at University of Technology, Jamaica (UTECH); Caribbean Academy of Sciences, Jamaica (CASJ); Jamaica Institution of Engineers (JIE); Jamaica Public Service Company Ltd (JPSCo); Jamaica Hotel and Tourist Association (JHTA); and Inter-American Development Bank (IDB).
GEF FOCAL AREA(s): Climate Change GEF-4 STRATEGIC PROGRAM(s): CC-SP1 NAME OF PARENT PROGRAM/UMBRELLA PROJECT: CARIBBEAN EFFICIENT BUILDING INITATIVE A. PROJECT FRAMEWORK Project Objective: Increase energy efficiency (EE) and the use of renewable energy (RE) in the building sector in Jamaica thus reducing energy consumption and greenhouse gas (GHG) emissions.
Project Component s 1. Technical Design Indicate whether Expected Outcomes Investm ent, TA, or STA2 STA 1. Energy audit methodology to model consumption in existing building types and an integrated plan for construction of a prototype net-zero energy demonstration building to test and develop building practices, standards, and codes. Expected Outputs GEF Financing1 ($) a % 225,000 31 Co-Financing1 ($) b 500,000 % 69 725,000 Total ($) c=a+ b

Work Program (for FSPs only) Agency Approval date Implementation Start Mid-term Evaluation (if planned) Project Closing Date

12/15/2009

10/01/2012 11/01/2012 09/01/2014 10/31/2016

1.1 Climatically relevant designs and energy efficient technological building solutions, practices, standards, and codes developed by local and regional professsionals for testing. 1.2 Detailed assessment of energy demand patterns and associated opportunities for energy savings in buildings in tropical and sub-tropical regions. 1.3 General design of highly innovative core

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2. Retrofit Solutions

STA

building systems components and solutions. 1.4 Identification of possible building practices, standards and codes for achieving higher EE and increased use of RE in buildings at reasonable cost, specific to the conditions in tropical and sub-tropical countries. 2.1 Advanced retrofit 2.1 Assessment and solutions to demonstra- identification of most te to concerned agencies advanced retrofit soluand stakeholders the tions to increase EE and economic and environ- use of RE in existing mental benefits of retro- buildings while withfitting in terms of apply- standing anticipated ing energy efficiency impacts of climate (EE) and renewable change. (RE) technologies in existing buildings. 2.2 Demonstration to 2.2 Identification and policy makers, govern- retrofitting of a suitable ment officials, owners high-profile building for of buildings and houses, demonstrating the enviarchitects, and construc- ronmental and economic tion companies of the benefits of retrofitting technical feasibility and existing buildings. the environmental and economic benefits of retrofitting existing buildings. 2.3 Sustainable retrofitting operations including the availability of affordable financing. 2.3 Increased awareness among architects, planners, building engineers, and other relevant experts of the benefits of retrofitting and development of a financing mechanism to make retrofitting affordable.

200,000

50

200,000

50

400, 000

INV

400,000

24

1,300,000

76

1,700,000

TA

100,000

50

100,000

50

200,000

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3. Net-Zero Energy Demonstration Building1

INV

3.1 Net-zero energy de- 3.1 Detailed design and monstration building installation and conincluding assembled struction of integrated building components technological solutions /modules that shows to and associated building policy makers, govern- components to (i) test ment officials, home possible building pracowners and buyers, ar- tices, standards, and chitects, and construc- codes; and (ii) develop tion companies the fea- energy efficiency ratings sibility and environfor components and mental benefits of a net- integrated combinazero energy building. tions/solutions. 3.2 Efficient operation 3.2 Continuous assessand maintenance of the ment of the performannet-zero energy demon- ce of the building and stration building and subsystems and deveestablishment of perma- lopment of EE and nent learning process to resource-use benchdevelop more advanced marks and performance EE and RE applications levels. and increase EE and the use of RE in buildings in the future. 3.3 Increased investments in more energy efficient lighting, heating, and cooling solutions in new buildings and sustainable market transformation to netzero energy buildings. 3.3 Increased awareness among architects, planners, building engineers, and other relevant experts of the advanced building technologies to increase EE and the use of RE in buildings and development of suitable financing mechanisms. 4.1 National policy and 4.1 Review of existing plan for retrofitting of regulations and practiall suitable existing ces for retrofitting of buildings and compre- existing buildings and hensive policy and regu- identification of key latory framework for policy options to ensure development of net-zero retrofitting of all suitaenergy buildings inclu- ble buildings. ding amendments of the 4.2 Making policy-maexisting draft building kers fully aware of the

500,000

26

1,400,000

74

1,900,000

STA

200,000

31

450,000

69

650,000

TA

75,000

50

75,000

50

150,000

4. Policy and Regulatory Framework

TA

250,000

50

250,000

50

500,000

1

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The costs are in line with building costs in Jamaica. The specialist construction costs US $200/sq.ft, the building is 3,000/sq.ft, and the construction costs are $3000*$200/sq.ft which equals $600,000. Material procurement is estimated at $100,000; the land is valued at $600,000; infrastructure and security is estimated at $400,000; and the bio-digester, the 30 kVA PV system, and water management system are estimated at $200,000. The total investment costs under component 3 are therefore $1,900,000. 3
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STA

5. Dissemina- TA tion of Information

codes to mandate the potential for substantialnew standards required ly increasing EE and the across Jamaica. use of RE in buildings and the development of corresponding building codes and regulations. 4.3 Development of national quality supervision systems and strengthening of testing facilities. 4.2Designation of regi- 4.4 Assessment of exisonal or extra-regional ting testing facilities, testing facility to consultations, and prepromote enforcement of paration of framework EE standards for agreements. buildings in the region. 5. Environmental and 5.1 Preparation and imeconomic benefits of plementation of educathe Project are widely tion and training prounderstood in Jamaica grams and media camand other areas with paigns for Jamaica and similar climatic the Caribbean region. conditions. 5.2 Establishment of the demonstration retrofit building and the net-zero energy building to serve as information dissemination points. 5.3 Development of procedures for sharing information with Caribbean nations and other (sub)tropical regions. 5.4 Preparation and dissemination of cost/ benefits analysis methodologies and financial and economic evaluation models.

75,000

50

75,000

50

150,000

100,000

29

250,000

71

350,000

6. Project management Total Project Costs
B. C.
1 2

236,000 2,361,000

32

500,000 5,100,000

68

736,000 7,461,000

List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total for the component. TA = Technical Assistance; INV = Investment; STA = Scientific & Technical Analysis

B. SOURCES OF CONFIRMED CO-FINANCING FOR THE PROJECT (expand the table line items as necessary)
Name of Co-financier (source) Jamaican Institutions** University of Technology of Jamaica Classification Nat’l Gov’t Nat’l Gov’t Type In-kind In-kind Project ($) 900,000 750,000 %* 17.7 14.7 4

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Scientific Research Council University of the West Indies Caribbean Academy of Sciences, Jamaica UNEP Inter-American Development Bank Total Co-financing

Nat’l Gov’t Exec. Agency Multilat. Agency Multilat. Agency Multilat. Agency

In-kind In-kind In-kind In-kind Cash

500,000 2,000,000 500,000 50,000 400,000

9.8 39.2 9.8 1.0 7.8

5,100,000

100
Jamaican Institute of Architects

* Percentage of each co-financier’s contribution at CEO endorsement to total co-financing. ** Jamaica Public Service Company ($100,000); Office of Disaster Preparedness & Emergency Management ($100,000);
($250,000); and Jamaica Institute of Engineers ($450,000).

C. FINANCING PLAN SUMMARY FOR THE PROJECT ($)
Project Preparation a GEF financing Co-financing Total 30,000 50,000 80,000 Project b 2,361,000 5,100,000 7,461,000 Total c=a+b 2,391,000 5,150,000 7,541,000 For comparison: Agency Fee 236,100 236,100 GEF and Cofinancing at PIF 2,630,100 4,700,000 7,330,100

D. GEF RESOURCES REQUESTED BY AGENCY (IES), FOCAL AREA(S) AND COUNTRY (IES)1
GEF Agency Focal Area Country Name/ Global (in $) Project (a) Agency Fee ( b)2 Total c=a+b

Total GEF Resources
1 2

No need to provide information for this table if it is a single focal area, single country and single GEF Agency project. Relates to the project and any previous project preparation funding that have been provided and for which no Agency fee has been requested from Trustee.

E. CONSULTANTS WORKING FOR TECHNICAL ASSISTANCE COMPONENTS:
Component Local consultants International consultants Total * Details provided in Annex B. Estimated person- weeks 371 75 446 GEF amount ($) 343,600 215,000 558,600 Co-financing ($) 710,000 75,000 785,000 Project total ($) 1,053,600 290,000 1,343,600

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F. PROJECT MANAGEMENT BUDGET/COST

Cost Items Project Coordinators and Research Directors (2, part-time) Project Manager (1, full-time) Administrative Assistant/Bookkeeper Project Auditor (part-time) Office facilities and equipment Travel Technical publications Communications Periodic reporting Monitoring & Evaluation Total * Details provided in Annex B.

Total Estimated personmonths 48 48 48 8

GEF amount ($) 230,000 0 0 0 0 5,000 0 1,000 0 0 236,000

Co-financing ($)

Project total ($)

154,000 216,000 60,000 12,000 10,000 10,000 5,000 5,000 8,000 20,000 500,000

384,000 216,000 60,000 12,000 10,000 15,000 5,000 6,000 8,000 20,000 736,000

152

G. DOES THE PROJECT INCLUDE A “NON-GRANT” INSTRUMENT? yes no X (If non-grant instruments are used, provide in Annex E an indicative calendar of expected
reflows to your agency and to the GEF Trust Fund). H. DESCRIBE THE BUDGETED M&E PLAN: 1. This is discussed in detail in Section – of the Project Document and illustrated in its Appendix 8: Budgeted M&E plan. The M&E plan is consistent with GEF policy, including smart indicators as well as mid-term and end-ofproject targets. The M&E plan will be reviewed and revised as necessary at project inception and a project supervision plan will be developed at this stage. The main focus will be on technical outcome and performance monitoring (as indicated under Component 4, Monitoring and Evaluation, of the above Project Framework) but financial and implementation monitoring has also been incorporated. In addition to resources set aside for the midterm and final evaluations, funds are allocated to organize stakeholder meetings and workshops to discuss their views and assess the contribution of the Project in achieving a transformation of the markets for new buildings to a more energy efficient one. 2. The Project will also establish a monitoring system to provide accurate information about the performance and adoption of EE technologies and improvement programs for buildings in Jamaica. The Project comprises mid-term and terminal evaluations as the main assessment method. These evaluations will be done independently and will be carried out by a project evaluation specialist that will be recruited by UNEP’s Evaluation Office and will work in coordination with the Project Management Unit (PMU). A summary of M&E activities envisaged is provided below (a budgeted M&E plan is in Appendix 8 of the Project Document).

Type of M&E activity Progress and Financial Reports   
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Responsible Parties Execution: Project Manager Support: Project Management Unit (PMU) Approval: UNEP

Time frame  Two Reports for any given year (31 July and 31 January)  Last Progress and Financial Reports within 60 days of

GEF Budget US$ None

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Type of M&E activity

Responsible Parties

Time frame project closure  Within first two months of project start up

GEF Budget US$

Inception Workshop and Report

 

 Measurement of Means of Verification for Project Progress on output and implementation and Site Reports Annual Project Reports (APR)                           

Execution: PMU Support: Institute for Sustainable Development (ISD); Project Advisory Group (PAG); and UNEP Approval: Project Steering Committee (PSC) Execution: STA consultants Support: ISD Approval: PMU and PSC Execution: STA consultants and PMU Support: UNEP Approval: UNEP, PAG, and PSC Execution: PMU and/or STA consultants Support: ISD Approval: UNEP Execution PMU and ISD Support: PAG and UNEP Approval: PSC and Tripartite Meeting Execution: PMU and UNEP Support: ISD and PAG Approval: PSC and Tripartite Meeting Execution: External consultants Support: PMU, PAG, UNEP, and ISD Approval: PSC Execution: PMU Support: PMU, PAG, UNEP, and ISD Approval: PSC Execution: PMU and UNEP Support: ISD and PAG Approval: PSC and Tripartite Meeting Execution: External consultants Support: PMU, PAG, UNEP, and ISD Approval: PSC

None

Throughout the year and prior to ARR/PIR and to the definition of annual work plans Annually

Periodic Status and Progress Reports

Quarterly

Project Implementation Review

Annually

50,000 (GEF financing) 200,000 (co-financing) 50,000 (GEF financing) 125,000 (co-financing) 50,000 (GEF financing) 125,000 (co-financing) None

Tripartite Review

At least once every year upon receipt of the APR At the mid-point of project implementation.

5,000 (co-financing)

Mid-term Evaluation

25,000 (GEF financing)

Project Terminal Report

At least three months before the end of the project

None

Terminal Tripartite Review

Last month prior to project closure

5,000 (co-financing)

Final Evaluation

At least three months before the end of project implementation

25,000 (GEF financing)

Total M&E Budget

200,000 (GEF financing) 460,000 (co-financing)

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PART II: PROJECT JUSTIFICATION: A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE DELIVERED: 3. Buildings are responsible for more than one third of global energy use. This includes the energy required in the mining, manufacturing, transport and assembly of building materials, and the final demolition and recycling of structures, but the greatest demand is generated in the use and operation of the building. As a result, buildings are – in most countries – the largest single source of greenhouse gas emissions. Building-related emissions were estimated at 8.6 billion tons in 2004, and this is projected to double by 2030. The paradox is that currently available technologies could reduce energy consumption in buildings by about 30-50% without significantly increasing investment costs. This technology is still relatively little used, however, mainly because of the economic fragmentation and relatively short investment perspectives that currently dominate the sector. For example, the financial savings that result from greater efficiency and reduced operating costs accrue to the building occupant, not the construction firm, so there is little incentive for the construction company to build to the requisite standards unless the customers demand and are willing to pay for higher standards. The challenge therefore is to mainstream a life-cycle approach to building construction, design and refurbishment. 4. Part of this can be market-driven. Rising energy costs provide an economic incentive, although these usually have to be supplemented with education programs to overcome information gaps. This can make smart design, improved insulation, low energy appliances, high efficiency ventilation and heating/cooling systems important factors in determining customer choice, and thereby mainstreaming energy efficiency into the market. 5. It is clear, however, that this will still not be sufficient, as there will still be unresolved problems of economic fragmentation and market gaps. For example, it will still be impossible to make comparisons between building forms, types, technologies and solutions without independent, trusted ratings systems. There is also a clear need for a supportive policy environment. Government policies with regard to the level of taxation on fuel, consumption tax, tariffs on energy saving products, preferential mortgages or tax breaks for construction, for example, usually have a marked effect on investment decisions and consumer behavior. 6. A systemic transformation of the built environment is therefore unlikely to happen until governments establish a policy framework that ensures that life-cycle approaches to energy, water and resource efficiency in the built environment are encouraged, rather than penalized, and allows for the transfer of costs and benefits between successive owners, supported by accessible tools that allow the effects of energy-efficiency improvements and sustainable building standards to be measured and verified. 7. The greatest need for new and more cost-effective building solutions lies in tropical and sub-tropical countries, partly because levels of energy efficiency in buildings in tropical countries (like Jamaica) are currently very low while the threat of being affected by climatic events such as storms, floods and droughts is conversely relatively high, and also because of the greater technical challenges involved, as it is more difficult to keep the interior of a building cool and dry in a hot, humid climate than to keep it warm in a cold climate. This means, however, that the building sector in tropical and sub-tropical regions has a considerable potential for positive change, to become more efficient in terms of adaptation and resource use, less environmentally intensive, and less costly. 8. The objective of the Project is to demonstrate that far higher standards of energy efficiency, renewable energy and environmental sustainability are possible in building practices and policies in tropical and sub-tropical regions. This will require the construction of a prototype net zero energy, zero-carbon ‘smart’ building as a demonstration project in Jamaica, accompanied with active dissemination and training programs. The Project will develop some highly innovative and adaptive solutions, with both active control and passive design features, and an integrated design for maximum efficiency. Components will be pre-fabricated and the building will be ‘designed for
8

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disassembly’; an advanced manufacturing concept that gives outstanding Life-Cycle performance and will also allow the development of some modular solutions that could be retrofit to existing building types.

9. During workshops across the Caribbean region there will be a very strong emphasis on the involvement of architects, builders, and other stakeholders to ensure rapid uptake of the smart building concept. The overall
objective is to influence the market by demonstrating that advanced building solutions are (a) feasible, (b) affordable, and (c) highly desirable. The Ministry of Science, Technology, Energy, and Mining (MSTEM0 has estimated that the transfer and implementation of EE technologies, policies, and instruments to Jamaica would allow for cost-effective greenhouse gas (GHG) emission reductions of about 40% by 2056, in comparison with the current building codes and practices. The goals of this project are to increase EE, reduce CO2 emissions, increase resilience of buildings to the anticipated impacts of climate change, reduce dependency on imported oil, reduce financial outflows, and increase competitiveness as a result of improved building practices. The project will establish baselines and estimates of potential savings, which will establish the targets, and provide the necessary tools and roadmap for their achievement. The impact of the Project will be tracked and monitored; all project components will be fully documented. 10. This is a potential 'game-changer'; it will demonstrate that tropical and sub-tropical countries are not restricted to modest, incremental improvements which will do relatively little to solve the problem of climate change, but can move directly to far superior solutions that will transform energy efficiency and productivity in tropical and subtropical regions. This will result in improved building practices, which will have multiple benefits: increased energy efficiency, reduced CO2 emissions, increased resilience to the anticipated impacts of climate change, reduced dependency on imported oil, reduced financial outflows, and increased competitiveness in international markets.

B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL AND/OR REGIONAL PRIORITIES/PLANS: 11. The Project will address the National Development Plan and Medium Term Socio-Economic Policy Framework 2009-2012 (MTF), Section B of the National Priorities/Plans section of the Vision 2030. Specifically, the Project will address the protection of Jamaica’s environment, which is one of the four overarching policy goals. It will also address Outcome 14: Hazard Risk Reduction and Adaptation to Climate Change, Goal 3 of the MTF, which is to ensure Jamaica’s prosperity, and one key national outcome, which is energy security and efficiency. It will also address the goals under the Jamaica Energy Policy Green Paper 2006–2020, which identified energy conservation and efficiency as strategic objectives to ensure the country's energy security and cost effective use of energy sources. 12. The Project will take into account the national energy conservation and efficiency policy for 2008-2022, which was released by the Ministry of Energy in 2008. This policy focuses on public and private sectors (households, industrial, commercial, tourism) transport, codes and standards, renewable energy technology, the institutional framework and human resource development. Section 3.15, titled ‘Establishing the building code and energy efficiency codes as mandatory standards’ is particularly pertinent, as this notes that it is much more cost-effective to insert ECE features at the design stage of a system or a facility than to try to retroactively upgrade energy performance after construction. The Project will also support the Government’s policy goal of making the new national building and energy efficiency codes mandatory standards for new construction, as well as for the upgrading of existing buildings. This is based on the energy efficiency building code that was developed by the Jamaica Bureau of Standards in 1990, but was not promulgated or made mandatory. However, this energy code has now been reviewed and updated by the Jamaica Institution of Engineers (JIE) and the Jamaica Bureau of Standards; it is now ready for promulgation and incorporation as a mandatory building code. At the time of the submission of this application, the gazette notices for a number of proposed revisions to Jamaica’s building codes have been submitted by the Bureau of Standards Jamaica (BOSJ); these include the Jamaica Application Document for the International Energy Conservation Code (IECC). The New Building Act, which is currently expected to be promulgated in 2012, will make compliance with these codes mandatory. It is estimated that the codes will give a 40% improvement in energy efficiency compared to current levels, which are relatively modest. The Project will establish the extent to which standards can be raised further in future.
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13. The fledgling Jamaica Green Building Council (JGBC) is being established in accordance with the standards of the World Green Building Council (WGBC) to bring together high calibre, influential and impartial built environment leaders and professionals to establish, monitor and guide government regulation as it relates to development standards in Jamaica. The JGBC will promote the adaption and integration of current standards such as the 2012 International Green Construction Code (IgCC) of the International Code Council (ICC). The IgCC is the first model code that includes sustainability measures for the entire construction project and its site — from design through construction, certificate of occupancy and beyond. The new code is expected to make buildings more efficient, reduce waste, and have a positive impact on health, safety and community welfare. This project will greatly support and demonstrate the potential and actual benefits of sustainable construction to both practitioners and government authorities. 14.The Government Green Paper 02/2012 Establishing An Environmental Regulatory Authority outlines key reforms that are intended to remove the underlying cause of long-running development failures by giving Jamaica a modern, fully integrated planning and regulatory system. This is intended to deliver multiple goals; robust protection for sensitive or vulnerable sites, rapid approval for developments in non-sensitive sites, a more transparent and risk-free environment for developers, and a more focused and efficient use of government resources. One of the key steps recommended is to establish an Environmental Regulatory Authority (ERA), and to transfer NEPA’s responsibility for environmental monitoring and enforcement to this new agency. The Project is therefore fully consistent and in support of national priorities and objectives. The Minister for Housing has agreed to serve on the Project Advisory Committee (PAC), which reflects its national importance. 15.At the Twenty-Third Inter-Sessional Meeting of the Conference of Head’s of Government of the Caribbean Community (CARICOM), 8 – 9 March, 2012, in Paramaribo, Suriname, the Heads approved the “Implementation Plan for the Regional Framework for Achieving Development Resilient to Climate Change” which defines the Region’s strategic approach for coping with climate change for the period 2011 – 2021. This project will provide valuable research as well as testing through retrofit solutions and the demonstration building that will assist in establishing development standards across the Caribbean Region. C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS: 16. The development of innovative solutions, including the construction of an advanced prototype net zero energy building, and all other lessons learned from this Project will be linked to similar projects through the the Institute for Sustainable Development (ISD) of the University of the West Indies (UWI); UNEP; and the GEF as well as through the network of stakeholders. Specifically, the Project will be linked with the GEF-financed global initiative on BBEET that is implemented by the World Bank and the ongoing GEF-financed Global Market Transformation for Efficient Lighting project, that is implemented by UNEP, as well as with relevant networks of partners in the Caribbean and beyond. Activities will also be fully coordinated with regional and national initiatives in the Caribbean that promote energy efficiency and the use of renewable energy. D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH THE GEF RESOURCES. 17. GEF assistance will be used to help Jamaica reducing its consumption of fossil fuels for the production of energy that is used in buildings. In particular, GEF assistance will be used for (i) funding the incremental costs related to the design, demonstration, and use of innovative building concepts and modules that will sharply increase energy efficiency; and (ii) supporting capacity building of key actors; including relevant Ministries and professional organizations. The GEF financing of $2.36 million will allow the leveraging of $5.1 million as co-financing, i.e., US$1 from the GEF allocation will be matched by about US$2.16 from national and multilateral sources and the private sector. GEF grant financing will also allow Jamaica, which has limited access to alternative sources of financing, to undertake this type of innovative research and development of advanced energy efficiency concepts, which otherwise would not be possible. GEF assistance will thus catalyze a market transformation with regard to energy efficient buildings, with significant flows of capital for construction being redirected for construction of such buildings. This will give the GEF contribution a still higher multiplier effect, as it will ‘crowd in’ other flows of capital.
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E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES: 18. The Project will also link up with UNEP’s Sustainable Buildings and Construction Initiative (SBCI). This is a UN partnership established to promote more sustainable buildings, which includes increasing their energy efficiency. Through SBCI, the Project will be linked with other SBCI projects, including the Marrakech Task Force on Sustainable Buildings and Construction (MTF); the Energy Efficiency in Buildings project of the World Business Council for Sustainable Development (WBCSD); and the World Green Building Council (WGBC). The Project will also establish links with the UNDP/World Bank (WB)/ Inter-American Development Bank (IDB)-GEF portfolio of building-related projects. Since their completed and ongoing past projects have mainly focused on mandatory codes, district heating systems, and the establishment of ESCOs in the building sector, the Project will add significant value. Finally, the Project will also establish ties with UNEP/GEF-supported National Cleaner Production Centres since their activities include energy audits and establishment of ESCOs for buildings and the Project will therefore be of mutual relevance. F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL REASONING : 19. The interrelated problem of climate change and energy security cannot be expected to be resolved without significant improvement in the energy performance of buildings. The most pressing need for new and more costeffective technological solutions concerns tropical and sub-tropical countries, as it is more technically difficult to keep the interior of a building cool and dry in a hot, humid climate than to keep it warm in a cold climate. Although the rest of the world has become increasingly energy-efficient over the last three decades, Jamaica has actually become less energy-efficient; Jamaica’s energy intensity index (EII) has increased steadily over the last two decades. Despite high oil prices (which peaked at US$147/barrel in July 2008) Jamaica’s energy consumption has consistently grown faster than the economy. As a result, Jamaica now requires 21,152 BTU to produce US$1 of domestic output, compared to a global average of 4,600 BTU. In 2009, Jamaica consumed about 60,000 barrels of oil/day, and imported a total of 22.1 million barrels, which meant that 87% of Jamaica’s entire foreign exchange income had to be used to buy imported oil. In 2010, Jamaica consumed about 56,000 barrels of oil/day, and imported a total of 20.5 million barrels, but this decline was the result of the economic recession, rather than efficiency gains. This apparent lack of price sensitivity reflects, in part, the lack of awareness of alternatives. 20. Since this suggests that levels of energy efficiency in buildings in countries like Jamaica are very low, it also implies that the building sector has a considerable potential for positive change and become far more efficient in terms of use of energy resources, more environmentally sustainable, and less costly. However, there are still a range of technological, economic, and marketing barriers to widespread uptake of more energy efficient technologies in buildings. The Project will help to resolve those barriers. For example, the Project will provide a cost-benefit analysis of each energy efficiency option, and explain the pay-back period, so that consumers can make better decisions. 21. Integrated solutions offer greater energy efficiency gains, while the integration of building and appliance design will allow costs to be factored in to selling prices, thus de-fragmenting the market place and removing the main financial disincentive to the adoption of more energy efficient technologies in buildings. The Project is therefore a key mitigating opportunity for reducing greenhouse gas (GHG) emissions. The lessons learned under the Project will be disseminated across Jamaica, the Caribbean and beyond, to other tropical and subtropical regions, thus achieving a wide impact and a significant multiplier for the investment of GEF and UNEP resources. G. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM BEING ACHIEVED AND OUTLINE RISK MANAGEMENT MEASURES: 22. The main challenges in the planning and development phase will be technological, i.e., finding, evaluating, developing, and implementing cost-effective solutions to increase energy efficiency in buildings. The main challenges in the dissemination phase are that this will require persuading and convincing the relevant stakeholders, including the construction industry, of the benefits of increasing energy efficiency in buildings. The building/construction industry usually sells buildings on the basis of cost, location, and perceived quality and not on
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the basis of their energy efficiency. The first priority is therefore to demonstrate the feasibility and desirability of using more energy efficient technologies in buildings. Further uptake of such technologies may require further amendments to the building codes or other forms of market suasion, such as ratings standards and incentives for efficient designs. This will be achieved through the activities under component 3, in particular, by working closely with the relevant Ministries throughout the entire Project and making the new national building and energy efficiency codes mandatory standards for new construction, as well as for the upgrading of existing buildings. H. EXPLAIN HOW COST-EFFECTIVENESS IS REFLECTED IN THE PROJECT DESIGN: 23. The goal is to demonstrate the attractiveness of highly cost-effective building energy efficiency technologies and solutions, so that they can be implemented in developing economies without the need for subsidies or further financial support. A prototype demonstration building that will incorporate such technologies and solutions will be located in Jamaica while the regional dissemination program will ensure that the effects are multiplied across the Caribbean, and into other tropical and sub-tropical regions. 24. The Ministry of Science, Technology, Energy, and Mining (MSTEM) has estimated that the enforcement of improved building codes for new-build units would give a 40% improvement in energy efficiency compared to current levels (which are very low), and that this would give a total of avoided CO2 emissions of some 23,780 tons by 2014 (taking 2009 as the baseline year), assuming compliance (which is known to pose a challenge). However, it is expected that enforcement of the new building codes will become more widely accepted after the Project has demonstrated the feasibility and benefits of using more energy efficient technologies and solutions in buildings. 25. The potential contribution of the Project is to demonstrate that the use of far more energy and resource-efficient building solutions and technologies is possible in tropical and sub-tropical regions, to raise awareness and stimulate market demand for better solutions. A transition to zero net energy buildings would dramatically reduce net carbon emissions from the built environment. The direct impacts of the Project include those savings in energy and reduced GHG emissions that can be directly attributed to the investment made during the project’s implementation period (i.e. four years), including both the demonstration project itself and the investments leveraged during the project’s implementation period, including those houses that will be retrofitted to operate to higher EE standards in that time. However, the largest part of the impact of the project will be indirect and post-project, for three reasons. The first is that the demonstration building will continue to influence the market to increase demand for retrofit solutions. The second is that the relevant Ministries, government agencies and professional organizations will then alter the building standards once proof of concept is established, so that zero net energy/energy plus become the norm for new-build housing developments. The third is that the Project itself will only take four years, but the effects and the benefits can be quantified over the subsequent decades. 26. On average, about 1,639 new buildings are constructed in Jamaica each year. If this rate of construction remains constant over the 20 year period from 2016 to 2035, then some 32,800 new buildings will have been constructed by the end of 2035. The average electricity consumption per domestic housing unit is currently about 2,000kWh/year/house, on average, mostly for cooling and lighting. So if 10% of the new buildings (i.e. 164 houses) are built to zero net energy/zero emissions standards in an arithmetic progression starting from 2016, then by 2025 all new built houses would be zero energy buildings. This would eliminate, on average, consumption of 2,000kWh/year/house. This would reduce total national power demand by 7.22 x 107 kWh of electricity by the end of 2025 and by 33.08 x 107 kWh by the end of 2035.The exact number of houses in Jamaica is not known with certainty, as over 20% of the population of Jamaica live in informal settlements. However, the baseline estimate of the total housing stock is 600,000, as this is the number of houses that were connected to Jamaica's national power grid in 2009. Assuming the same constant rate of construction, and adding the new houses built during the period 2009-2016, then there will be about 609,840 houses connected to the grid by 2015. It is estimated that the existing houses could achieve 40% net energy savings (i.e. a saving of 800 kWh per year each) if they are retrofitted with the energy saving solutions tested in the advanced prototype. It is assumed that ‘left-over’ newly built houses and 1% of existing houses (in an arithmetic progression) will be retrofitted from 2016. If this target is met, all existing houses will be retrofitted by the year 2029. The accumulated reduction of CO2 emissions will then be 3,954,501
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tons by 2035. A detailed calculation is provided in paragraphs 68-77 and in Table 1 of the attached UNEP Project Document. PART III: INSTITUTIONAL COORDINATION AND SUPPORT A. INSTITUTIONAL ARRANGEMENT: 27. UWI’s Mona campus will provide the institutional basis for the development of the Project through ISD the implementation arrangement is described as follows: - Project Advisory Committee (PAC). The PAC will be chaired by the ISD, and will oversee the general orientation of the Project and ensure that the objectives are attained. The PAC will include the key stakeholders in the private and public sectors. The PAC will also promote operational coordination among the different government agencies, professional bodies, donors and other interests working in the same sector. The PAC will also lead dissemination and institutionalization of all lessons learned during the Project. - Project Management Unit (PMU). At the operational level, the Project will be executed by ISD, which will establish a Project Management Unit (PMU). The PMU will be responsible for delivering and monitoring the dayto-day activities, to provide full technical and management support for the execution of the Project. - UNEP’s Division of Technology, Industry, and Economics (DTIE). It will act as Implementing Agency (IA) for the Project and will monitor the implementation of the project activities and ensure their consistency with the project design and UNEP and GEF rules. The implementation modalities of activities eventually co-financed by other donors will be jointly defined, on a consensus basis, by the donors. UNEP will ensure that the Project is implemented in compliance with procedures established the GEF and the UNEP. B. PROJECT IMPLEMENTATION ARRANGEMENT: 28. UWI’s Mona campus will provide the institutional basis for the development of the Project through the ISD. The implementation arrangement is described as follows: - Project Advisory Committee (PAC). The PAC will be chaired by the ISD, and will consist of a core group of key stakeholders and project partners. The PAC will oversee the Project, and track progress towards the objectives. The PAC will ensure operational coordination among the different government agencies, professional bodies, donors and other interests working in the same sector. The PAC will lead the dissemination and institutionalization of the lessons learned under the Project. The PAC will be comprised as follows:  Ministry for Water, Land, Environment and Climate Change (MWLECC)2  Ministry of Science, Technology, Energy, and Mining (MSTEM)  Ministry of Transport, Works, and Housing (MTWH)  Caribbean Academy of Sciences, Jamaica (CASJ)  Jamaica Institution of Engineers (JIE)  Jamaica Public Service Company Ltd (JPSCo)  Office of Disaster Preparedness and Emergency Management (ODPEM)  Jamaica Institution of Architects (JIA)  The Institute of Sustainable Energy, University of Technology, Jamaica (UTech)  The Scientific Research Council (SRC)  Jamaica Hotel and Tourist Association (JHTA)  GEF Focal Point - The Ministry of Water, Land, Environment and Climate Change (MWLECC)  Inter-American Development Bank (IDB)  Incorporated Masterbuilders Association of Jamaica (IMAJ)
2

Previously named Ministry of Water and Housing (MWH).
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 Bureau of Standards (BoS)

- Project Management Unit (PMU) At the operational level, the project will be executed by the PMU under ISD. The PMU will be managed by two Coordinators/Directors of Research, a full time Project Manager/Site Supervisor (PM), with a Financial Officer and an Administrative Assistant (AA). The PMU will be based at the project site at UWI’s Mona campus, Kingston, Jamaica. The PMU will be responsible for preparing, monitoring, and updating project work plans, scheduling project activities, recruitment and supervision of consultants, technical supervision of project activities, financial planning of expenditures and disbursements of GEF funds, management of the contributions of co-financiers and their use, coordination of project activities, liaison with stakeholders, organization of workshops and other meetings, preparation of training programs in cooperation with consultants, and financial and progress reporting. The PMU will report to ISD and UNEP/DTIE. UNEP/DTIE will provide advice and guidance as may be required. 29. All relevant stakeholders will be involved in the Project. Further details are provided in the UNEP Project Document, Sections 4 and 5, and in Appendix 10. A project execution chart is shown below.
Project Steering Committee UWI, PAC, GEF Focal Point, UNEP/DTIE

PAC

CERE, JPSCo, OPDEM, UTech, SRC, JHTA, MWLECC, IDB, IMAJ, JGBC, MTWH, MSTEM

PMU under ISD Coordinators/Directors of Research, Project Manager/Site Supervisor, Financial Officer, Admin Assistant

UNEP/DTIE Building Codes Group BoS, JGBC, JIA, JIE, ERA

Component 1 Subcontractors Subcontractors/ Consultants RESEARCH & Technical DEVELOPME Design NT

Component 2 Subcontractors/ Consultants Retrofit Solutions

Component 3 Subcontractors/ Consultants Net-Zero Energy Demonstration Building

Component 4 Subcontractors/ Consultants Policy and Regulatory Framework

Component 5 Subcontractors/ Consultants Dissemination of Information

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PART IV: EXPLAIN THE ALIGNMENT OF PROJECT DESIGN WITH THE ORIGINAL PIF:

30. The project design is fully aligned with the original PIF. The findings of the PPG-funded development phase were uniformly positive. The site for the advanced prototype has been identified, co-financing has been negotiated, and the key stakeholders have all committed to the Project. The Minister of MWLECC has made a personal commitment to serve on the Project Advisory Committee. There weren’t any findings that would adversely affect the project design, or raise any serious concerns about project implementation. However, at this stage, the involvement of two of the original Executing Partners, the Centre of Excellence in Renewable Energy (CERE) a division of the Petroleum Corporation of Jamaica (PCJ) and the Ministry of Science, Technology, Energy and Mining (MSTEM), could not be confirmed. This is due to the recent resignation of the former Minister of Science, Technology, Energy and Mining, which triggered the replacement of the Board of the Petroleum Corporation, as they are all appointed by the Minister. The new Minister of Science Technology, Energy and Mining has now been appointed, but is yet to officially agree to the involvement of both organizations in the Project. It is expected that both organizations will re-join the PAC in due course. Further, in comparison with the original PIF the following Executing Partners were added:     The Caribbean Academy of Sciences, Jamaica (CASJ) The Jamaica Institution of Engineers (JIE) The Jamaica Public Service Company Ltd (JPSCo) The Jamaica Hotel and Tourist Association (JHTA) The Inter-American Development Bank (IDB) Bureau of Standards (BoS) Environment Regulatory Authority (ERA) Ministry of Transport, Works, and Housing (MTWH)

     Ministry of Science, Technology, Energy, and Mining (STEM)

PART V: AGENCY(IES) CERTIFICATION This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for CEO Endorsement.
Agency Coordinator, Agency name Maryam NiamirFuller, Director GEF Coordination Office, UNEP Date (Month, day, year) Project Contact Person Edu Hassing Task Manager Climate Change UNEP/Division of Technology, Industry, and Economics

Signature

Telephone +33 1 44 37 14 72

Email Address edu.hassing@unep.org

09/10/2012

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ANNEX A: RESPONSES TO PROJECT REVIEWS (from GEF Secretariat and GEF Agencies, and Responses to Comments from Council at work program inclusion and the Convention Secretariat and STAP at PIF) The GEF CEO Document and UNEP Project Document take into account comments made at the Project Review stage. In particular, the following comments have been taken into account as indicated below I. Comments from GEF Secretariat A. Review of 22 May 2012 Please address the following specific comments: (i) The cost of the Project seems high given that the rationale of the Project is mainly based on demonstration (prototype) and conviction of the actors. We also fear a very theoretical project and a weak buy-in from the government. Response:  These points have been addressed. The cost of the prototype is relatively high, partly because it is a prototype, and partly because it is not just a Net Zero Energy building. It will also be designed to be a multi-purpose, multi-access building, with water harvesting, purification and recycling, and will also serve as a hurricane shelter.  The costs are in line with building costs in Jamaica. The specialist construction costs US $200/sq.ft, the building area is 3,000/sq.ft, and the construction costs are $3000*$200/sq.ft which equals $600,000. Material procurement is estimated at $100,000, the land is valued at $600,000, infrastructure and security is estimated at $400,000, and the bio digester and water management system is estimated at $200,000. The total cost for Component 3 will therefore be $1,900,000.  The focus of the project will not be theoretical, but on building innovations that can be readily disseminated into the marketplace. The Jamaican Institute of Architects (JIA), the Incorporated Masterbuilders Association of Jamaica (IMAJ) and the Jamaica Institution of Engineers (JIE) have all been recruited to the PAC to ensure that there is both strong dissemination and better integration of the building chain.  Buy-in from the Government is now extremely strong, with the full participation of not just the relevant Ministries and government agencies, but also the personal participation of the key Minister. Component 2; who will co-finance the campaign? Given that the co-financing is in kind, how will 800 k USD be used for such a component? What is the sense of doing an awareness campaign towards the public on this issue if the “products” are not available on the market? Response: Both points have now been addressed. First, there is now a significant cash commitment in addition to the in-kind commitments. The IDB has now contributed US$400,000 in cash, in matching funding, and the Government of Jamaica has committed US$98,000 to the cost of the changes in the planning and regulatory framework. Second, the products can be imported, or in some cases manufactured locally, so the key is to simultaneously stimulate market demand and raise the building standards and requirements. Component 3; the cost of this component needs to be justified. This component is only STA and we need explanations on the use of 475 k USD cash and 1 M USD in-kind. Response: This component is a key part of the entire project. It is incorrect to think of it as ‘only STA’; this is the phase where key technologies will actually be tested, modified and proven. JIA, IMAJ, and JIE will be fully involved in this phase, hence the large in-kind commitment of their time and testing facilities. Component 4; see above, comment on the cost still stands. Response: The answer to (iii) above is relevant here too. As above, this is the phase where the performance-inuse of key technologies will be measured, tested and proven. Also as stated above, JIA, IMAJ, and JIE will be fully involved in this phase.

(ii)

(iii)

(iv)

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(v)

Component 5; the cost of this component seems high and needs to be justified. Please explain in details which activities will be done under this component: does it focus only on the prototype as suggested in the title of the component, or does it address very generally the issue off EE lighting and cooling in Jamaica? It is suggested to merge this component with component 9 and component 10. How would it be possible to address the issues targeted in these components 5, 9 and 10 without a strong involvement of the government, which does not seem to be the case given its part of the co-financing? Response: The object of the Project is not merely to build a prototype, it is to disseminate the results and change the balance of expectations, cost and performance in the marketplace. The goal is to mainstream the idea that far higher standards of energy efficiency are both feasible and affordable. Most of the Caribbean island nations are currently almost entirely dependent on imported oil, and are price-takers and technology-adopters, which reduces their competitiveness and thereby undermines their economic performance. Our goal is to demonstrate that upgrades of the building stock could significantly reduce oil imports, and thereby reduce vulnerability to future energy price rises. This will require a sustained commitment to education, training, workshops and other dissemination mechanisms to ensure that these ideas are mainstreamed. With regard to the latter point; buy-in from the Government is now extremely strong, with the full participation of not just the relevant Ministries and government agencies, but also the personal participation of the key Minister. Component 6 and component 8 are similar and you have to remove the duplication. Given the title of the component, we would expect a concrete and precise plan to monitor the energy performance of the building stock in Jamaica rather than knowledge management and reports. Response: This has been addressed in the revisions to the CEO document. The Ministry of Mining and Energy has committed to give access to the most up-to-date national statistics and analyses of energy demand and performance by sector. This will allow national performance to be tracked over time.

(vi)

(vii) Component 7 includes some duplication with the regional project that has just been recommended (last output). There is duplication with component 4 (recommendation of building materials). In this component, you refer twice to financial instruments, bank lending, incentives: what will be done exactly? Which financial mechanism will be developed? In Table B you include in the co-financing from the private sector “retrofit demonstration”; what does this mean exactly? Response: This has been addressed in the revisions to the CEO document; any unnecessary duplication has been removed. With regard to financial instruments, bank lending and incentives; this includes working with both the Government and the main sources of mortgage lending to incentivize property developers and purchasers to (a) install and (b) demand higher standards of energy performance. With regard to the financial mechanism, this is to address two related issues. The first is that reduced operating costs must be offset against an increased initial capital outlay. This may require a preferential loan facility which can be paid back from energy savings. The second is that increased costs accrue to the developer, while reduced operating costs accrue to the user, so there must be an agreed framework for transferring these costs when the building ownership is transferred. Normally, this would simply be reflected in the slightly increased cost of the building, but the energy performance of a building is only one factor that may influence the market price, so it might be necessary to introduce a separate benchmark (such as a star rating system) to ensure that the energy efficiency of a building remains a salient point. With regard to the co-financing from the private sector for retrofit demonstration, this reflects the involvement of the JIA, IMAJ and JIE, whose central role on the PAC will ensure that there is strong dissemination of findings into practice. (viii) The whole co-financing is in kind. We are really concerned about the reality of such an agreement, especially because some components include investments (see comments above). Plus, we are concerned about the weak involvement of the government. It is suggested to secure “real” money (cash) in the co-financing. Response: Both points have now been addressed. First, there is now a significant cash commitment in addition to the in-kind commitments. The IDB has now contributed US$400,000 in cash, in matching funding, and the Government of Jamaica has committed US$98,000 to the cost of the changes in the planning and regulatory framework. With regard to the latter point; buy-in from the Government is now extremely strong, with the full participation of not just the relevant Ministries and government agencies, but also the personal participation of the key Minister.
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(ix)

The technologies listed in the footnote 2 are quite innovative. What is the local capacity of the installer and maintainers with regard to these technologies? Response: One of the key objectives of the project is to assess and, where necessary, develop or upgrade the relevant capacities. JIA, IMAJ, and JIE are all members of the PAC to ensure that these technologies can and will be used. B. Review of 6 August 2012 Please address the following specific comments in Boxes 9(e); 9(f); 9(g); 17; 20; 22; and 23of GEF’s review

9(e) The costs for the prototype building are more clearly justified on page 3 in the footnote and page 16 of the endorsement request. The building type is designated as a university building on page 139 of the project document. Part of the reason the stated costs are so high is that land-value of $600,000 and security of $400,000 is included in the co-financing. Based on this, we conclude the GEF funding is high, but acceptable. There is one inconsistency, however. The co-financing letter from the University of the West Indies (UWI) places an in- kind value of the land at $1,500,000 on page 63 of the appendices. Please explain the inconsistency. Response: The total in-kind contribution of UWI of $1,500,000.00 includes contributions for both the Net-Zero Energy Building ($1,400,000) and the Retrofit Building ($100,000. This has now been reflected under budget lines 4301 and 4302 of Appendix 2 (Reconciliation between GEF Budget and Co-finance Budget) of the UNEP Project document. 9(f) The response on page 16 of the (previous) endorsement request indicates only a bio-digester is included in the financing. However, page 45 of the project document indicates that a 30 kVA PV system will be installed. Please clarify if the requested GEF funding will cover both solar and bio-digester technologies. Response: GEF funding together with the co-financing will finance all expenses associated with the net-zero energy building including the bio-digester and the 30 kVA PV system (see revised footnote 1 on page 3 of the CEO document). 9(g) The prototyping and demonstration of technologies has been separated into specific components, while the policy and regulatory related activities are in a reorganized and separate component. However, the description of the new component 4 - Policy and Regulatory Framework on pages 50-51 of the project document is vague. Please clarify that one of the expected outcomes/outputs is "amendments of the existing draft building codes to mandate the new standards required across Jamaica." Response: Yes one of the expected outcomes of component 4 is "amendments of the existing draft building codes to mandate the new standards required across Jamaica." Please see outcome 4.1 of the project framework on page 3 of the CEO document and point 4(a) on page 50 of the UNEP Project document (and its relevant appendixes 3, 4, and 7). (17) Please note, the agency fee presented in Table C on page 5 of the endorsement request is $239,100 but should only be $236,100. The agency fee for the PPG has been recorded elsewhere. Response: Amendment made. Please see Table C on page 5 of the CEO document. (20) We are still awaiting a response to our comment of May 22, 2012. There is a concern that international consultants will consume $300,000 for 100 person-weeks of time. Please explain and justify why the equivalent of one-person stationed in Jamaica for two years is needed for this project, especially when there is such a strong team of local experts? Will this consultant be traveling to Jamaica? Response: There is a need for specialized, highly qualified, international consultants to advise on (i) latest developments such as with regard to new building materials and new types of photovoltaic systems and (ii) required policies, as well as to conduct evaluations. However, the number of person-weeks for the consultants has been reduced from 100 to 75 and corresponding GEF financing from $300,000 to $215,000 . Please see Table E on page 5 of the CEO document and Annex B.
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22)

The re-organized project components show better how financing and co-financing are use to support project implementation. We could not find the UNEP co-financing letter. Please indicate where the document is located or re-submit. Response: UNEP co-financing letter has been inserted in Appendix 11of the UNEP Project document (page 166). The tracking tool has been submitted in PDF format. The contents look acceptable, but please re-submit in Excel format. Response: Will be done.

23)

II. (i)

Comments from Council (Canada) Canada shares STAP concerns that the project proposal appears to focus too much on research and development, and piloting a zero net energy model building. It is not clear that a few training seminars and some publicity, as suggested by the project, will be able to catalyze this experience into mainstream Jamaican building. Response: The issue of mainstreaming has now been comprehensively addressed under component 5. Education, training programs, and media campaigns for Jamaica and the Caribbean will be designed. Dissemination and sharing of information with Caribbean nations, e.g. via the CARICOM administration in Guyana and the Caribbean Climate Change Centre (CCCC) in Belize; and dissemination and sharing of information with other tropical and sub-tropical regions. Exchange of information and programs with other regions (see also: UNEP Project Document: Section 3.3 Project Components and Expected Results, Section 3.10 Public Awareness, Communications and Mainstreaming Strategy). All key agencies in the public and private sector are now involved in the management of the project (see the revised documents). They include the Minister of Housing, in person, key state government agencies, including the Office of the Prime Minister, the Ministry of Mining and Energy (who are responsible for national energy policy) the Petroleum Corporation of Jamaica (who are responsible for implementing national energy policy) and the National Housing Trust (who are responsible for affordable housing finance), as well as IMAJ, the Construction Industry Council (CIC), JIA and the Institute for Sustainable Energy at the University of Technology, amongst others. It is important to understand that this represents top-level commitment from the Government of Jamaica and the private sector in Jamaica. Canada noted that there are at least 17 other GEF projects that address LGGE and building energy efficiency around the world at various levels of execution. What key lessons learned have been generated through these projects and how will these be taken into account in the design of the Jamaica LGGE project? How will UNEP and Jamaica systematize and share key lessons learned once this project is completed? Response: Many of the lessons learned elsewhere are reflected in the design of the Project. In particular, the Project addresses the need for policy relevance and mainstreaming (see above), which is where a number of projects elsewhere have been weak. The need for systematization, sharing of lessons learned and international dissemination are now fully reflected in the revised project documents. (UNEP Project document: Section 2.1 Background and Context, Section 2.1 Global Significance and Section 2.7 Linkages with other GEF and nonGEF interventions). Additional clarity would be useful on how this project builds upon and learns from the World Bank project “Demand Side Management Demonstration”. This project strengthened the Jamaica Public Service Company (JPSCo) to implement an integrated approach to energy conservation. However, the LGGE project proposal does not mention JPSCo or the Project. Response: The World Bank/GEF/JPSCo Demand Side Management Demonstration (DSMD) project [19941999] had three lessons that are relevant for this project. a. The first is that EE projects remain limited unless they are promoted and mainstreamed via official government agencies, standards, regulations and legislation. Ultimately, government has the greatest influence on the development of energy efficiency policy. Privatized utilities cannot be expected to implement DSM programs unless there are regulatory and fiscal incentives. JPSCo, as a private company, was not able to achieve the kind of extensive impact that only Government support can
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(ii)

(iii)

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b.

c.

guarantee. This is why our project has been designed to ensure top-level support from the relevant Ministries and Agencies. The second point relates to the retrofit component. Although most consumers are able to invest in lowcost, short payback, measures (such as compact fluorescent lamps [CFLs], most of them (whether residential, commercial, or industrial) need additional assistance in the form of both advice and affordable solutions for larger investments, and also some level of reassurance as to quality control. This is why the Ministry of Housing, Environment, and Water (MHEW); JIA; IMAJ; and JIE have all been recruited to the PAC to ensure that the solutions identified are robust, reliable and affordable, and that there is both strong dissemination and better integration of the building chain. The third point is that the DSMD project came to the preliminary conclusion that not all EE technologies are relevant or applicable to the local context. This will therefore be the focus of the research component of our project, as well as expert advice and testing from the IMAJ.

Finally, it should also be noted that it is important to align program objectives with organizational ones. In this case, the objectives of JPSCo diverged from those of the program, and the capacity was lost. (iv) Given the potential for large economic savings for private building owners, one would expect enhanced support from the private sector. Response: This has been addressed. There is strong support from the CIC, IDB, JHTA, JIA, and JIE, which comprise all the architects and building professionals in Jamaica. There is now also interest from local energy savings companies and from the hotel sector. What consideration has been given to the cost of this model building compared with costs of typical local buildings of similar purpose and size? If these model buildings are far more expensive, then despite training and public awareness businesses would likely still choose the most cost-effective option, particularly in the absence of subsidies or other external incentives? Response: The building is indeed more expensive than typical current construction in terms of initial capital outlay, but cost benefit analysis indicates that the pay-back period can be easily accommodated, given the high cost of energy in Jamaica and the strong possibility (given the current uncertainty in the Middle East) that energy prices will rise further in the near future. IMAJ has suggested that costs may be further reduced and technology improved by utilizing local technical expertise and best practices. The Project will also have regard to the options for retrofitting, which will make individual components more available and affordable to the general public (UNEP Project document: Section 3.3 Project Components and Expected Results).

(v)

III.

Comments from STAP STAP has classified the Project as requiring a minor revision. Below are STAP’s specific comments and the EA’s responses.

(i)

Research and development components: Components 1, 2 and 3 seem more like a research and development (R&D) project. Many of the expected outcomes and outputs make this more a research project than a GEF implementation project. R&D on advanced building technologies is not a feasible proposition for the project of four years duration. R&D and adaptation to hurricane conditions of Jamaica would not be feasible, unless technologies developed elsewhere, such as in Europe, could be adopted in Jamaica. However, this also may not happen since Jamaica has a tropical and sub- tropical climate. STAP advises to present a clear justification for selecting particular energy efficiency and renewable technologies that are readily available and which can be directly incorporated into the building design. Response: This is now clearly addressed in the project documents. The intention is for R&D to address RE, EE and sustainability of buildings and building components specifically with regard to implementation in Jamaica and the tropical and sub tropical regions of the world. This will include the review and adaptation of existing
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technologies, as applicable to the local context (UNEP Project Document: Section 3.3 Project Components and Expected Results). The project schedule includes detailed R&D of available technology, adoption and adaptation strategies and building plans (1 year), construction of the prototype building (2 years) and documentation of the process, lessons learned, dissemination and mainstreaming (1 year). Some of these activities will overlap, but the critical path is 4 years (UNEP Project Document: Appendix 5 – Workplan and Timetable). (ii) Scientific rationale for net zero energy and zero emission buildings: Such buildings may be technologically feasible, but due to multiple barriers are not yet ready for commercial application even in Europe or USA. Although, the promotion of net zero energy buildings in Jamaica is desirable, STAP recommends presenting a scientific and economic rationale for emphasizing this particular concept for Jamaica. Response: This comment is incorrect. Energy Plus buildings (EPB) are now commercially available in Freiburg, Germany, for example. With regard to Jamaica; the description of the baseline situation, cost benefit analysis and proposed environmental benefits in the project proposal fully addresses these concerns (UNEP Project document: Section 2.2 Global Significance, Section 2.6 Baseline Analysis and Gaps and Section 3.1 Project Rationale, Policy Conformity and Expected Global Environmental Benefits). Financial analysis of energy efficiency and renewable energy technologies: If all the proposed EE and RE are incorporated into a residential building, as of today the cost is likely to be so high that only demonstration buildings are feasible where cost is not a consideration. If the aim is market development for EE and RE buildings, the proposed technology package may not be feasible or acceptable to users at the current stage. Response: The building is indeed more expensive than typical current construction in terms of initial capital outlay, but cost benefit analysis indicates that the pay-back period can be easily accommodated, given the high cost of energy in Jamaica and the strong possibility (given the current uncertainty in the Middle East) that energy prices will rise further in the near future. In addition, IMAJ has suggested that costs may be further reduced and technology improved by utilizing local technical expertise and best practices. The Project will also have regard to the options for retrofitting, which will make individual components more available and affordable to the general public. Retrofitting versus new buildings: Retro-fitting cannot be ruled out since energy saved or CO2 emission avoided could be very high per unit of investment, compared to investment in new buildings. The project seems to focus largely on replacement of existing buildings with super efficient buildings and eliminates unjustifiably investments in retrofitting the existing building stock. STAP recommends considering this in the final project proposal. Response: Retrofitting has now been fully included in the project proposal (UNEP Project Document: Section 3.2 Project Goals and Objectives, Section 3.3 Project Components and Expected Results). Residential or commercial buildings: Will the project focus be more on residential buildings or commercial buildings? For residential buildings, what is the income segment of targeted households? Response: The Project refers to both residential and commercial buildings. The intention is to influence the design of all the main types of buildings. The targeted households are those that now live in brick houses, i.e., the lower middle income group and higher. Dissemination: How would the likely high additional investment for net zero carbon buildings be met by home owners? The outputs and activities mentioned for this component do not address the key likely barrier of high investment cost (possibly even high building maintenance costs) compared to the existing buildings. What incentives will be feasible and at what cost such incentives could be implemented on a large scale? Response: The issue of mainstreaming has now been comprehensively addressed (UNEP Project Document: Section 3.3 Project Components and Expected Results, Section 3.10 Public Awareness, Communications and Mainstreaming Strategy). All key agencies in the public and private sector are now involved in the management of the project (see the revised documents). This includes the Minister of Housing, in person, key state government agencies, including the Ministry of Housing, Environment, and Water (MHEW); the Scientific Research Council; the Office of Disaster Preparedness and Emergency Management; as well as IMAJ, CIC, JIA, and the Institute
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(iii)

(iv)

(v)

(vi)

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for Sustainable Energy at the University of Technology, amongst others. It is important to understand that this represents top-level commitment from the Government of Jamaica and the private sector in Jamaica. This is important, because EE projects remain limited unless they are promoted and mainstreamed via official government agencies, standards, regulations and legislation. Ultimately, government has the greatest influence on the development of energy efficiency policy. Privatized utilities cannot be expected to implement DSM programs unless there are regulatory and fiscal incentives. This is why our project has been designed to ensure top-level support from the relevant Ministries and Agencies. Most consumers are best reached via low cost financing or subsidies. Although most consumers are able to invest in low-cost, short payback, measures (such as compact fluorescent lamps [CFLs], most of them (whether residential, commercial, or industrial) need additional assistance in the form of both advice and affordable solutions for larger investments, and also some level of reassurance as to quality control. For this reason MHEW, JIA, IMAJ and JIE have all been recruited to the PAC to ensure that the solutions identified are robust, reliable and affordable, and that there is both strong dissemination and better integration of the building chain. The goal is to make these solutions and the associated technologies and components a part of standard construction at all levels of the market. (vii) Risks and mitigation measures: The proposal does recognize the real challenge of finding or development of technologies suitable to the country as well as the cost. Technical capacity barrier for any large-scale implementation of the technology or even the operation and maintenance of the systems is not addressed. The risk assessment is very limited and the major risk of high incremental investment cost is not addressed at all. Removing information barriers for stakeholders will not overcome the major cost as well as technical capacity barriers. Response: These risks and related mitigation measures have all now been addressed in the project documents (UNEP Project document: Section 3.5 Risk Analysis and Risk Management Measures). (viii) Development of baseline scenario: The project must aim to develop a baseline scenario estimating the current and projected energy use and GHG emissions under the baseline scenario. Response: This has now been addressed in the project documents (UNEP Project Document: Section 2.6 Baseline Analysis and Gaps and Section 3.1 Project Rationale, Policy Conformity and Expected Global Environmental Benefits). (ix) Impact of climate change risk: STAP compliments the project proponents for incorporating the likely increased risks due to climate change leading to more frequent and intensive hurricanes in the project design. This may further add to the investment cost, which must be recognized explicitly in the project document. Response: This has now been addressed in the project documents (UNEP Project document: Section 2.2 Global Significance, Section 2.6 Baseline Analysis and Gaps and Section 3.1 Project Rationale, Policy Conformity and Expected Global Environmental Benefits).

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ANNEX B: CONSULTANTS TO BE HIRED FOR THE PROJECT USING GEF RESOURCES $/ person week* Estimated person weeks**

Position Titles For Project Management None For Technical Assistance Local Research planning and design consultants/ Technical experts Building form factor design consultants/Technical experts Building technology components and subsystems consultants/Technical experts Policy consultants

Tasks to be performed

800

66

Component 1: Technical Design

800

121

Component 2: Retrofit Solutions

1,000

134

Component 3: Zero-Net Energy Demonstration Building

1,200

50

Component 4: Policy and Regulatory Framework

Total International STA consultants

343,600 3,000

371 50 Component 1, 2, 3, 4 and 5: Specialized advice for EE, RE and sustainability design and components, monitoring and dissemination Component 4: Policy and Regulatory Framework Mid-term and final evaluations

Policy consultants

3,000

5 20 75

2,500 Evaluation experts Total 215,000 Justification for Travel, if any: Training, Testing

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ANNEX C: STATUS OF IMPLEMENTATION OF PROJECT PREPARATION ACTIVITIES AND THE USE OF FUNDS A. EXPLAIN IF THE PPG OBJECTIVE HAS BEEN ACHIEVED THROUGH THE PPG ACTIVITIES UNDERTAKEN. The PPG objective and all component tasks have been achieved. The tasks included the assessment of the national building code, consultative meetings with key stakeholders in the housing sector, additional data collection , an assessment of the planning laws, regulations and building codes with regard to EE, a preliminary baseline study of the building and construction sector with regard to current EE technologies and climate change resilience, an identification of main actors in the sector and an analysis of their capacities, including their capacity to provide partial co-financing for the project, an identification of gaps and barriers in achieving best practices with regard to Caribbean climate conditions, an assessment of the local market and the capacity of the local construction industries in producing EE units, an identification of potential partners and a site for the proposed advanced prototype, and partners for test facilities. All of these have been accomplished to specification, on time and within budget. B. DESCRIBE FINDINGS THAT MIGHT AFFECT THE PROJECT DESIGN OR ANY CONCERNS ON PROJECT IMPLEMENTATION, IF ANY: The findings have been uniformly positive. The site has been identified, co-financing has been negotiated, and the key stakeholders have all committed to the project. The Minister for Housing has made a personal commitment to serve on the Project Advisory Committee. There are no findings that would adversely affect the project design, or raise any serious concerns about project implementation.

C. PROVIDE DETAILED FUNDING AMOUNT OF THE PPG ACTIVITIES AND THEIR IMPLEMENTATION STATUS IN THE TABLE BELOW: GEF Amount ($) Project Preparation Implementatio Amount CoAmount Amount Uncommitted Activities Approved n Status financing Approve Spent To Committed Amount* ($) d date Completed 15,000 15,000 15,000 0 25,000 Additional data collection and review and evaluation of building codes. 5,000 5,000 5,000 0 15,000 Assessment of gaps and Completed barriers for attaining best building practices in Jamaica and energy effi-ciency potential and mar-kets for energy efficient buildings in Jamaica Completed 10,000 9,928 9,928 72 10,000 Consultations with concerned government organizations, housing stakeholders, and other relevant parties 30,000 29,928 29,928 72 50,000 Total Completed * Any uncommitted amounts should be returned to the GEF Trust Fund. This is not a physical transfer of money, but achieved through reporting and netting out from disbursement request to Trustee. Please indicate expected date of refund transaction to Trustee.

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Project Document

Project Document Section 1: Project Identification 1.1 Project title: 1.2 1.3 1.4 1.5 Project number: Project type: Trust Fund: Strategic objectives: GEF strategic long-term objective: Strategic programme for GEF IV: UNEP priority: Geographical scope: Mode of execution: Project executing organization: Duration of project:

LGGE Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica GFL/ PMS: FSP GEF Trust Fund CC CC-SP-1: Building EE Climate Change Jamaica External (National in cooperation with UNEP) University of the West Indies (UWI) 48 months Commencing: 1 November 2012 Completion: 30 October 2016

1.6 1.7 1.8 1.9 1.10

1.11.1.1

Cost of project
US$ 2,361,000 % 31.6

Cost to the GEF Trust Fund Co-financing Cash Inter-American Development Bank Sub-total In-kind Jamaican Institutions* University of Technology Scientific Research Council University of the West Indies Caribbean Academy of Sciences UNEP Sub-total Total Co-financing Total Project

400,000 400,000 900,000 750,000 500,000 2,000,000 500,000 50,000 4,700,000 5,100,000 7,461,000

5.4

12.1 10.0 6.7 26.8 6.7 0.7 68.4 100.0

* Jamaica Public Service Company ($100,000); Office of Disaster Preparedness & Emergency Management ($100,000); Jamaican Institute of Architects ($250,000); and Jamaica Institute of Engineers ($450,000).

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1.12
1

PROJECT SUMMARY

World energy demand is projected to grow by over 50% by 2030, with developing countries creating about 75% of that increased demand. This is partly because of the rapid development of countries such as China, and partly because 30% of the world’s population still don’t have reliable energy services, so far more energy will be needed in future as the world population is projected to be over 9 billion by 2070. This will make it very difficult to meet carbon reduction targets, resolve the problems of climate change and meet national needs for energy security without significant improvements in energy efficiency and productivity. It is particularly important to improve the energy performance of buildings, as the residential sector alone accounts for 25% of total end-use demand (and 19% of global GHG emissions), so even very basic improvements in building efficiency would reduce world end-use demand for energy by over 30 quadrillion BTU (QBTU) by 2020. The greatest need for innovative and cost-effective building solutions lies in tropical and sub-tropical regions, as it is more technically difficult to keep the interior of a building cool and dry in a hot, humid climate than to keep it warm in a cold climate. Levels of energy efficiency in most of the buildings in the Caribbean region, for example, are exceptionally low, with very high cooling loads. However, this means that the building sector in tropical and sub-tropical regions has a considerable potential for positive change, to become far more efficient in terms of resource use, less environmentally intensive, and less costly. The Institute of Sustainable Development (ISD) at the University of the West Indies (UWI), based on the Mona Campus in Kingston, Jamaica has therefore initiated, with the financial support of the Global Environmental Facility (GEF) and the technical assistance of the United Nations Environment Programme (UNEP), a pioneering project to research, assess and construct an advanced prototype of a net-zero energy building in Jamaica. The project's main objective is to research and develop practical, working solutions that will transform building policies and practices, followed by the implementation of appropriate regulatory and technical tools that will mainstream the lessons and transform the opportunities for promoting energy efficiency and increased use of renewable energy sources. The research and development will be done in Jamaica. The Ministry of Housing, Environment, and Water is a key stakeholder, which will ensure that the lessons of the project are mainstreamed into Government policies, practices, standards and codes. The mechanisms to translate the results into policies are already in place, which means that this will be a very high-impact, policy-oriented project. The private sector and the professions are also key stakeholders, which will ensure that the project will ‘crowd in’ private capital, which will give the GEF funding exceptionally high leverage. The lessons will then be disseminated across the Caribbean region, and then into the other tropical and sub-tropical regions of the world. The project and all the supporting

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institutions are highly networked, so all the mechanisms for regional and international dissemination are already in place.
4

The project consists of six main components including: (i) Research, Planning and Design; (ii) Building Envelope – Detailed Design and Build; (iii) Building Technologies, Systems and Subsystems; (iv) Monitoring and Evaluation (v) Dissemination and; (vi) Project Management. An advanced prototype building will be constructed as a demonstration of emerging and best practices in the built environment including: Energy Efficiency – ideal building layout, fenestration detailing, efficient lighting (LED etc) and cooling as well as management through central monitoring and control. Renewable Energy – use of solar (PV panels and ‘solar trees’, water heaters), bio-fuels, bio-mass, wind and/or waste-to-energy technologies. Water Management – collection and reuse of rain and storm water as well as waste water from the building operations. Environmental Design – overall design to build resilience to changing climatic conditions including hurricanes, storms, floods and drought, as well as earthquake resistance. UNEP is the GEF Executing Agency and will oversee the successful achievement of the project objectives. A Project Management Unit will be created and supported by national and international consultants as well as a Project Advisory Committee. The UWI/GEF/UNEP project will use the development and construction of an advanced prototype building to develop the necessary technologies and applications, and as a means of introducing best practices in architecture and development planning. The project will also promote research and business opportunities in climate change mitigation and adaptation through the development and transfer of cleaner technologies. It will support the development and implementation of appropriate regulatory and technical tools to promote far higher standards of energy efficiency and the increased use of renewable energy sources within the Caribbean built environment. The project therefore provides a unique institutional and technical cooperation platform between all the main parties involved in development throughout the region. The overall funding of the proposed project is estimated at US$7.461 million of which US$2.361 million is requested from the GEF. The remainder of the funding comes from the University of the West Indies and other project partners. The project implementation is ensured by the ISD. The project will be carried out over a period of 48 months (20122016). UNEP will provide management and technical advice. A number of clear global environmental benefits will result from the successful implementation of the tools developed in this project, and in the associated investments in energy efficiency, energy productivity and clean energy technologies. The core design concept for the advanced prototype building is the combination of high levels of energy efficiency, the use of renewable energy sources, and sustainable climate adaptation

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methodologies. This will include the utilization of state-of-the-art energy efficiency technologies in all systems and sub-systems, advanced renewable energy technologies, including thin-film polymer photo-voltaics, best practices in all aspects of resource management, including water and waste management, and smart building technologies for demand management. The goal is a modal shift in building forms and technologies, making zero net energy construction the preferred option in tropical and sub-tropical regions. The long-term global environmental benefits are therefore significantly larger than the technical estimates presented in this document. The project will identify solutions, demonstrate feasibility, raise market expectations for new construction and increase demand for retrofit solutions. The solutions, technical tools, policy measures, regulatory frameworks and building standards to be developed in this project will significantly increase the size of the market for energy efficiency and renewable energy technologies in Jamaica, across the Caribbean region, and in the other tropical and sub-tropical regions of the world.

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Table of Contents Section 1: Project Identification Acronyms and Abbreviations Section 2: Background and Situation Analysis (Baseline course of action) 2.1. Background and context 2.2. Global significance 2.3. Threats, root causes and barrier analysis 2.4. Institutional, sectoral and policy context 2.5. Stakeholder mapping and analysis 2.6. Baseline analysis and gaps 2.7. Linkages with other GEF and non-GEF interventions Section 3: Intervention strategy (Alternative) 3.1. Project rationale, policy conformity, expected global environmental benefits 3.2. Project goal and objective 3.3. Project components and expected results 3.4. Intervention logic and key assumptions 3.5. Risk analysis and risk management measures 3.6. Consistency with national priorities or plans 3.7. Incremental cost reasoning 3.8. Sustainability 3.9. Replication 3.10. Public awareness, communications and mainstreaming strategy 3.11. Environmental and social safeguards Section 4: Institutional Framework and Implementation Arrangements Section 5: Stakeholder Participation Section 6: Monitoring and Evaluation Plan Section 7: Project Financing and Budget 7.1. Overall project budget 7.2. Project co-financing 7.3. Project cost-effectiveness 1 7 9 9 15 19 21 27 34 36 37 37 43 47 52 54 55 59 60 62 62 63 63 65 67 71 72 72 73

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Appendices Appendix 1: Budget by Project Components and UNEP Budget Lines Appendix 2: Co-financing by Source and UNEP Budget Lines Appendix 3: Incremental Cost Analysis Appendix 4: Results Framework Appendix 5: Workplan and Timetable Appendix 6: Key Deliverables and Benchmarks Appendix 7: Costed M&E Plan Appendix 8: Summary of Reporting Requirements and Responsibilities Appendix 9: Standard Terminal Evaluation Terms of Reference Appendix 10: Draft Terms of Reference for GEF-financed Consultants Appendix 11: Co-financing Commitment Letters from Project Partners Appendix 12: Endorsement Letter of GEF National Focal Point Appendix 13: Draft procurement Plan Appendix 14: Tracking Tools

76 76 80 83 88 98 102 103 108 110 155 158 185 186 189

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Acronyms and Abbreviations

BoS CARICOM CARILEC CASJ CCCCC CERE CIC ECE EE EEBC EII ERA ESL GEF GHG GOJ IDB IECC IMAJ ISD JGBC JHTA JIA JIE JPSCo MHEW MSTEM MTWH MW MWLECC NEPA NHT ODPEM OPM PAC

Bureau of Standards Caribbean Community Caribbean Electric Utility Service Corporation Caribbean Academy of Sciences, Jamaica Caribbean Community Climate Change Centre Centre of Excellence for Renewable Energy Consruction Industry Council Energy Conservation and Efficiency Energy Efficiency Energy Efficient Building Code Energy Intensity Index Environmental Regulatory Authority Energy Saving Light Global Environment Facility Greenhouse Gas Government of Jamaica Inter-American Development Bank International Energy Conservation Code Incorporated Masterbuilders Association of Jamaica Institute for Sustainable Development Jamaica Green Building Council Jamaica Hotel and Tourism Association Jamaica Institute of Architects Jamaica Institute of Engineers Jamaica Public Service Company Ltd. Ministry of Housing, Environment and Water Ministry of Science, Technology, Energy, and Mining Ministry of Transport, Works, and Housing Mega Watt Ministry of Water, Land, Environment, and Climate Chnage National Planning and Environment Agency National Housing Trust Office of Disaster Preparedness and Emergency Management Office of the Prime Minister Project Advisory Committee

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PIOJ PCJ PMU PPG PV RE SBCI SIDS SRC UNEP UNFCCC UTECH UWI

Planning Institute of Jamaica Petroleum Corporation of Jamaica Project Management Unit Project Preparation Grant Photo Voltaic Renewable Energy Sustainable Buildings and Climate Initiative (UNEP) Small Island Developing States Scientific Research Council United Nations Environmental Programme United Nations Framework Convention on Climate University of Technology, Jamaica University of the West Indies

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Section 2: BACKGROUND AND SITUATION ANALYSIS (Baseline course of action) 2.1. BACKGROUND AND CONTEXT 1. The ‘Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica” project addresses two key current and inter-related issues: a. Sustainable Energy – efficient usage and the utilization of renewable sources b. Climate Change – mitigation and adaptation 2. World energy demand is projected to grow by over 50% by 2030, with developing countries creating about 75% of that increased demand. This is partly because of the rapid development of countries such as China, and partly because 30% of the world’s population still don’t have reliable energy services, so far more energy will be needed in future as the world population is projected to be over 9 billion by 2070. Recent projections indicate that world energy consumption will increase by 49% by 2035, from 495 quadrillion BTU (QBTU) to 739 QBTU 1. This will make it very difficult to meet carbon reduction targets, resolve the problems of climate change and meet national needs for energy security without significant improvement in energy efficiency and productivity. 3. Buildings are responsible for more than one third of global energy use. This includes the energy required in the mining, manufacturing, transport and assembly of building materials, and the final demolition and recycling of structures, but the greatest demand is generated in the use and operation of the building. As a result, buildings are – in most countries – the largest single source of greenhouse gas (GHG) emissions. Building-related emissions were estimated at 8.6 billion tons in 2004, and this is projected to double by 2030. The residential sector alone (i.e. not including office, industrial and public buildings) accounts for 25% of total end-use demand, and 19% of global GHG emissions. The paradox is that currently available technologies could reduce energy consumption in buildings by about 30-50% without significantly increasing investment costs. Even very modest improvements in building efficiency could reduce world end-use demand for energy by 32 QBTU by 2020 2. 4. The world is making some progress. In 1980, the global energy system was just 34% efficient. Today, the global energy system is 39% efficient, but this still means that over 60% of total latent energy input is still being lost, rather than converted into useful energy. About half of the ‘missing’ energy is lost in energy generation and
1 2

US Energy Information Administration, International Energy Outlook 2010. D Farrell, S Nyquist and M Rogers. Curbing the growth of global energy demand. The McKinsey Quarterly July 2007

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transmission, the rest is lost as a result of leaky buildings, inefficient appliances and so on. Current estimates suggest that greater efficiency in energy generation and transmission, and more energy-efficient buildings, appliances, industrial processes and transport systems could make the global energy system 50-60% efficient by 2040. However, much more needs to be done in order to avert the threat of climate change. 5. There is a particular need for new and more cost-effective building solutions lies in tropical and sub-tropical countries, partly because levels of energy efficiency in buildings in many tropical and sub-tropical countries (like Jamaica) are currently very low while the threat of being affected by climatic events such as storms, floods and droughts is conversely relatively high, and also because of the greater technical challenges involved (it is more difficult to keep the interior of a building cool and dry in a hot, humid climate than to keep it warm in a cold climate). This means, however, that the building sector in tropical and sub-tropical regions has a considerable potential for positive change, to become far more efficient in terms of adaptation and resource use, less environmentally intensive, and less costly. 6. This would have a transformative impact on countries like Jamaica. Although the rest of the world has become increasingly energy-efficient over the last three decades, Jamaica has actually become less energy-efficient; Jamaica’s energy intensity index (EII) has increased steadily over the last two decades. Despite high oil prices (which peaked at US$147/barrel in July 2008) Jamaica’s energy consumption has consistently grown faster than the economy. As a result, Jamaica now requires 21,152 BTU to produce US$1.00 of output, compared to a global average of 4,600 BTU. In 2009, Jamaica consumed about 60,000 barrels of oil/day, and imported a total of 22.1 million barrels, which meant that 87% of Jamaica’s entire foreign exchange income had to be used to buy imported oil. In 2010, Jamaica consumed about 56,000 barrels of oil/day, and imported a total of 20.5 million barrels, but this decline was the result of the economic recession, rather than efficiency gains. This apparent lack of price sensitivity reflects, in part, the lack of awareness of alternatives. 7. Jamaica imports of oil represent over 90% of its total energy demand, which means that Jamaica is highly susceptible to oil price volatility. The high cost of energy has driven up electricity and transportation costs, which makes it extremely difficult for Jamaican businesses to be cost competitive in international markets. In addition, the disproportionately high consumption of petroleum products that results from Jamaica’s current level of inefficiency results in increased GHG emissions, thereby increasing Jamaica’s contribution to global warming and the concomitant increase in hurricanes, floods and droughts. The combination of high energy costs and inefficient

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energy use as well as lack of adaptation to the effects of climate change is likely to force businesses, industries, jobs and wealth to relocate out of Jamaica. 8. Responding to this array of inter-linked challenges, the Institute of Sustainable Development (ISD) at the University of the West Indies (UWI), Mona Campus in Kingston, Jamaica has initiated, with the financial support of the Global Environmental Facility (GEF) and the technical assistance of the United Nations Environment Programme (UNEP), an ambitious project to research, assess and construct a prototype of a net zero energy building in Jamaica. The prototype building will be a computer-controlled, smart, net zero energy, zero-carbon building 3. It will be highly energy-efficient, supply most of its own water, electricity and gas, operate its own waste treatment facility and be built to survive hurricane, flood and drought conditions. The project's main objective is to research and develop practical, working solutions that will transform building policies and practices in Jamaica and the Caribbean region, followed by the implementation of appropriate regulatory and technical tools that will mainstream the lessons and transform the opportunities for promoting energy efficiency and increased use of renewable energy sources within Jamaica and across the entire Caribbean region, and then disseminate into other tropical and sub-tropical regions of the world. 9. Much of the expertise in net zero energy building design and construction resides in the advanced economies. For example, in March 2008, the UK Government set a target of making all new schools and domestic buildings zero-carbon by 2016, and all non-domestic buildings by 2019. On 23rd April 2009, the European Parliament agreed to amend the Energy Performance of Buildings Directive to require that by 2019 all new buildings must be net zero energy; i.e. that they produce the same amount of energy that they consume. This does not require buildings to be selfsufficient in power, but allows for cost-effective balancing of supply and demand; buildings may purchase energy from the grid when their loads exceed their generating capacity, and sell energy from their on-site generation technologies back to the grid when their loads are low. 10. There are now some advanced prototypes, such as the Green Lighthouse building, opened on the 20th October 2009, which now houses the Faculty of Science at the University of Copenhagen. This uses natural ventilation and shading to reduce the need for cooling, high glass windows and overhead skylights to provide natural lighting, solar cells to produce electricity, and has a small façade to reduce the need for central heating.
3

These two terms are effectively equivalent, in that a building that has net zero energy demand does not generate any net carbon emissions while in use; this does not include any carbon emissions associated with construction or removal.

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11. However, there are some critically important differences between these developments and the proposed prototype in Jamaica. These are as follows: a. In tropical and sub-tropical regions the goal is to keep the interior of buildings cool in a hot climate, not warm in a cold climate. This is more technically challenging, and will require a mixture of passive and active design, and the ability to monitor and respond to varying usage patterns. b. The usage pattern may change more dramatically than is likely to happen in countries like the UK or Denmark. In the latter, power demand will be relatively predictable, with daily, weekly and annual cycles. Daily demand will rise when people arrive at work, the weekly cycle will follow the working week, and dip at the weekends, while the annual cycle will show the seasonal variations of the heating and cooling demand. In regions that experience hurricanes and cyclones, however, it is essential to allow for the effect of extreme events, which will be superimposed on normal usage patterns. In Jamaica, for example, the hurricane season lasts six months (June 1st – November 30th), and this imposes significantly different design requirements.

12. The Jamaican Context Jamaica is an independent island state of approximately 10,991 4 sq. km located in the Caribbean, south of Cuba. The island’s geography consists of rugged central mountain ranges surrounded by arable plains and coastline. The climate is tropical (hot/humid), and the island lies in the hurricane zone, so the main threat is that of tropical storms and hurricanes, especially during the period June to November. In recent times the island has also suffered from hydrological and meteorological droughts. The total population of Jamaica is estimated to be 2,847,232 as at July 2010, with over 50% urban settlement. In 2009, the country’s GDP was estimated at US$23.76 Billion which reflected negative (-2.8%) growth in that year. In 2003 it was estimated that about 14.8% of the population lived below the poverty line, and in 2009 the country had an estimated unemployment rate of 11.4%. 13. The modern economic development of Jamaica has been almost entirely dependent on imported petroleum as its primary source of energy, currently accounting for approximately 93% of total energy consumption, with the remainder derived from renewable sources (of which 57% is fuel-wood, which means that Jamaica also has a deforestation rate of about 0.5% per annum). This extreme oil dependency has left
4

CIA – The World Factbook: Jamaica [https://www.cia.gov/library/publications/the-worldfactbook/geos/jm.html] November 2010.

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the island particularly vulnerable to increases in the price of oil such as those experienced in 1973 and, more recently, from 1999 to 2008, when the price of crude oil on the international market increased fifteen-fold from US$10/barrel to US$147/barrel. The current national energy policy, which is a component of the Vision 2030 National Development Plan, sets targets for renewable energy and the percentage diversification of energy supply. By 2030, 20% of the country’s energy mix is to be derived from renewable sources, while LNG will replace oil as the main energy source, and the national energy intensity index (in BTU/US$1 output), measured in constant year 2000 $US), is to be reduced from 21,152 BTU to 6,000 BTU per US$1.00 of output (although that will still be higher than today’s global average of 4,600 BTU, and double the projected global average of 3,000 BTU in 2030) see figure 1 below.

Jamaica: energy policy timetable
Indicator 2009 2012 2015 2030

% renewable in energy mix

9%

11%

12.5%

20%

% diversification energy supply

9%

11%

33%

70%

Energy intensity index (BTU/US$1 output) in constant year 2000 $US

21,152

14,000

12,700

6,000

Still more than world average in 2010

Figure 1.

14. About the University of the West Indies The University of the West Indies (UWI) was established in 1948 as an external College of the University of London, and became fully independent in 1962. It is a regional (rather than national) institution. It serves and is supported by fifteen countries. The UWI is committed to the development of the Caribbean region through education, research and advisory services for governments and the private sector and

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forging links with other institutions in the wider region and the rest of the world. The University has four campuses – Cave Hill in Barbados, Mona in Jamaica and St. Augustine in Trinidad and the Open Campus - all of which deliver high-quality higher education, research and advisory services to all fifteen contributing countries that support the University, as well as some of the other jurisdictions in the Caribbean. UWI currently has a total enrolment of over 39,000 students and graduates approximately 5,800 students every year at undergraduate, graduate and diploma levels. 15. UWI brings a unique geographical reach and perspective to this project. First, as a regional institution, UWI serves fifteen nations, and will use its unparalleled regional contacts to bring in many of the other Caribbean states. Second, UWI has a particular expertise in small island and marine issues, in Diaspora communities and in development studies, all based on strong, core competences in the traditional disciplines as well as a commitment to an interdisciplinary, practical, problemsolving orientation. Third, UWI has a strong commitment to developing countries, and extensive experience in analyzing and resolving the impediments to development in independent and non-independent, successful, transitional, fragile and failed states. 16. About the ISD UWI established the Institute for Sustainable Development (ISD) in 2006 to help the Caribbean nations resolve these challenges. The ISD comprises the Centre for Policy Studies in Sustainable Development, led by the Alcan Chair in Sustainable Development, the Centre for Environmental Management, led by the James MossSolomon Snr. Chair in Environmental Management, the Disaster Risk Reduction Centre and the Unit in Sustainable Tourism and Hospitality. These entities have near-complete autonomy under the ISD umbrella. ISD also hosts the International Secretariat of the UCSIS, the University Consortium for Small Island States, and the Violence Prevention Alliance. The Coordinator of ISD facilitates collaborative research, teaching and outreach activities among the entities within the ISD. The ISD supports or is affiliated to several regional and international institutions, including the Caribbean Disaster Emergency Management Agency, the Pan American Health Organization and the United Nations Environment Programme. 17. The ISD supports advanced and postgraduate study through its component units; students read for M.Sc., M.Phil. and Ph.D. degrees. The ISD has strong collaborative links with a number of other universities and research institutes, and the UCSIS is working with its member universities to develop a joint international degree in Sustainable Development. This makes the ISD ideally placed to lead and manage this research project as well as to disseminate the lessons learnt in order to transform regional standards.

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18. About the UNEP The United Nations Environment Programme (UNEP) is the ‘voice for the environment’ in the UN system. Established in 1972, UNEP's mission is to provide leadership and encourage partnership in caring for the environment by enabling nations and peoples to improve their quality of life without compromising that of future generations. UNEP is an advocate, educator, catalyst and facilitator in promoting the wise use of the planet's natural assets for sustainable development. It works with many partners, UN entities, international organizations, national governments, nongovernmental organizations, business, industry, the media and civil society. UNEP's work involves providing support for: environmental assessment and reporting; legal and institutional strengthening and environmental policy development; sustainable use and management of natural resources; integration of economic development and environmental protection; and promoting public participation in environmental management. 19. About the GEF GEF unites 182 countries in partnership with international institutions, nongovernmental organizations (NGOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. Today the GEF is the largest funder of projects to improve the global environment. An independent financial organization, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. Since 1991, GEF has achieved a strong track record with developing countries and countries with economies in transition, providing $9 billion in grants and leveraging $40 billion in co-financing for more than 2,600 projects in over 165 countries. 20. The Global Environment Facility (GEF) is the largest source of funds for renewable energy in the developing world. As the financial mechanism for the United Nations Framework Convention on Climate Change, the GEF has provided about $900 million for more than 110 RE projects in 50 countries. This support has leveraged almost $6 billion in additional co-financing.

2.2.

GLOBAL SIGNIFICANCE The global issues 21. As explained earlier, it is particularly important to improve the energy performance of buildings. The built environment accounts for over a third of world total energy use and associated GHG emissions. Depending on the type of building, some 10-20% of the total life-cycle energy consumed is used for the manufacturing of building 15

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materials, construction, maintenance, refurbishment and demolition, and some 8090% is used, over the life of the building, for heating, cooling, lighting and ventilation, house appliances and so on. It is therefore important to focus primarily on making buildings more efficient, so that they are easier and cheaper to heat, cool, light, ventilate and operate. 22. A range of retrofit solutions are now available, but these can only offer incremental improvements, which can only make a relatively minor contribution to resolving the problem of climate change. To put this in context; in order to ensure that the temperature rise remains below 2 degrees, IPCC estimates suggest that it would be necessary for the OECD nations to peak their emissions by 2012 (2015/16 at the latest), and fully decarbonise their economies by 2030, and the non-OECD nations to peak by 2025, and fully decarbonise by 2050. 23. This is unlikely to happen; China is now the world’s largest carbon emitter, and its emissions are still rising. Recent assessments indicate that China’s carbon emissions will not peak until 2030-2040, or perhaps 2050. The particular significance of this is that on business-as-usual growth projections, China will by then be emitting almost as much carbon (equivalent) as the USA, India and the EU combined. Some projections indicate that this could result in an average temperature rise of at least 4 degrees. 24. The demand for energy will continue to rise, however, as a result of three powerful drivers of increased demand; some 30% of the world’s population still do not have energy services, the world’s population is currently projected to increase to over 9 billion, and more energy will be needed as more countries industrialize. Current IEA projections indicate that energy demand will grow by over 50% by 2030, with developing countries representing over 75% of that increase, so that demand for oil will increase by almost 40% and coal by almost 75% over the same period. This will significantly increase emissions of carbon dioxide, thereby accelerating climate change. 25. The only way to avoid this outcome is to implement radically more energy-efficient solutions to meet human needs, and to develop new, low-carbon energy sources that can supply the volumes required. It is particularly important to develop solutions that are designed for developing countries, as these countries will otherwise become the primary drivers of accelerated climate change. Many developing countries are in the tropical and sub-tropical regions of the world. The main building-related demands in the tropical and sub-tropical regions are generated by air conditioning, lighting, water heating and appliances, so these areas will be the main focus of this project.

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The consequences of oil-dependency for developing countries 26. Oil prices will become more volatile with the approach of peak oil. The nations that are most vulnerable to volatile oil prices are poor countries with high levels of oil imports compared to their GDP, high current accounts and external debts, and whose access to global capital markets is limited, partly because economic dependency on oil (i.e. the GDP/energy ratio) in such countries has not declined to the same extent as it has in developed nations. 27. The multiple impacts of a rise in the price of oil can be seen in a country like Jamaica. Jamaica is an oil importer (relying on imported oil for over 90% of energy requirements) with relatively weak economic performance. Oil imports exceeded US$1bn for the first time in 2004/5; then rose to US$2.7 billion by 2008, which had serious implications for the balance of payments, inflation, business competitiveness and household poverty. In addition, recent proposals to include airlines in national carbon emission totals and co-opt them into carbon trading schemes will have implications for airfares. This could reduce earnings from tourism and related services; by far the largest source of foreign exchange for the Caribbean region. 28. Another rise in the price of oil could therefore disrupt a number of relatively fragile economies, resulting in an increase in emigration, an outflow of skills and capital, and an increased rate of illegal activities as legitimate development options erode. Rising crime rates and eroding security deter investors, thus delaying recovery and precipitating a further downward spiral. In order to reduce this vulnerability to rapid movements in the price of oil, countries must radically improve their energy efficiency and invest in alternative (non-hydrocarbon) energy sources. The implications of climate change 29. Many poor developing countries are also particularly vulnerable to climate change. The nations of the Caribbean are mostly small islands, and most of the housing stock and economic and transport infrastructure is on coastal plains that are vulnerable to sea level rise, increased incidence of severe weather, flooding and storm surge. Over time, zoning and planning can gradually move people and the infrastructure into safer areas, but this will take decades. 30. The Caribbean has already suffered a number of serious natural disasters. Hurricane Gilbert struck the southern coast of Jamaica in 1988 and caused extensive damage to housing, electricity infrastructure and the agricultural sector. Hurricane Ivan in 2004 also did significant damage, especially on the south coast. In October 1998, Hurricane Mitch sat almost stationary for several days off the coast of Central America, raising water from the ocean and depositing it on land, and some 10-20,000

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people drowned in floods and mudslides. Hurricane Mitch left some 460,000 people homeless, while economic losses were estimated at US$6.0 billion, of which twothirds was lost output from agriculture, forestry and fisheries. More recently, Cuba was hit by Hurricanes Gustav, Ike and Paloma during 2008, which caused damage and losses estimated at US$10 billion (over 20% of Cuba’s GDP).

31. These events revealed a number of key weaknesses. The post-disaster relief efforts in most Caribbean countries are seriously handicapped by the lack of electricity in the critical disaster and post-disaster periods and the consequent inability to operate lighting, chillers, refrigeration (for e.g. medicines), pumps, communication networks and so on. This problem arises directly from the centralized generation of electricity and the network of distribution systems. These systems, especially the distribution poles and lines, are usually physically damaged during a hurricane or similar disaster, and it takes time to bridge the broken sections. Some individual sites have standby generators, but the majority of the population are vulnerable. The development of more self-sufficient buildings with decentralized sources of energy such as biogas and photo-voltaics is therefore an essential part of disaster preparedness. 32. The treatment of waste is also of vital importance. Hurricanes cause floods, which make sewers and septic tanks overflow. This, in conjunction with the bodies of drowned people and animals, can make the surrounding water a vector for virulent disease, especially in hot countries. One partial solution to both problems is to ensure that more buildings have secure solar-powered bio-digester tanks, partly in order to contain the sewage produced, but also to contribute to their own energy supply. 33. It is also important to ensure that all new construction is built to withstand hurricanes and the associated flooding as well as the other extreme drought as current projections for climate change indicate that the incidence and severity of storms, hurricanes, floods and droughts in the tropics is likely to increase in future. Global Interventions 34. GEF projects are based on the premise that a combination of far higher standards of energy efficiency, low carbon sources and clean energy technologies are vital to alleviate poverty, raise incomes, expand rural development, improve health and maintain environmental quality. For example, pumping water for irrigation, power for drying crops, energy for cottage industries, and lighting in schools and hospitals are all important applications of renewable energy for rural areas that have little prospect of connection to a power grid in the near future.

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35. The GEF therefore helps shift energy investments in developing nations in more sustainable directions 5. It works to remove barriers and to bring down the cost of promising new technologies, while minimizing subsidies for equipment and consumers. The GEF seeks partners and new ideas for opportunities that will allow continued investment without further external support. The GEF is innovative and catalytic; a key feature of its work is linking national development priorities and global environmental objectives. 36. GEF projects are designed to resolve the impediments to the development of markets for renewable energy, including the lack of supportive policy frameworks, inadequate financing for installations or supporting businesses, lack of technical capacity; and lack of awareness and trust in the technologies by users and utility companies.

2.3.

THREATS, ROOT CAUSES AND BARRIER ANALYSIS 37. There have been many initiatives in the past to develop better energy policies in Jamaica, including the promotion of diversification, the development of renewable energy sources and increased energy efficiency, but these have failed to deliver any substantial improvements. There are a number of factors that have effectively impeded progress, including problems with governance and policy conflicts, misguided technology choices, market failures, and unhelpful institutional structures. Similar problems can be seen in many other developing countries. 38. Specific problems include an inefficient public electricity system, with old generating plant; inefficient use of energy in manufacturing and other productive sectors; inefficient energy use in the public sector, including the extensive use of pumps (rather than gravity feed) to deliver the nation’s water supply; low public awareness of the importance of energy conservation; and an inadequate policy framework to promote energy conservation and efficiency. 39. A 2005 report entitled “The Renewable Energies Potential in Jamaica” 6 identified a number of additional barriers to the expansion of renewable energy use in Jamaica. These were as follows: - Time-consuming administrative procedures related to RE project development. - Lack of economically sound contractual arrangements. - Imprecise legal formulations.

5 6

GEF: Global Action on Renewable Energy, November 2005 Project Documents: Renewable Energies Potential in Jamaica by D. Loy and M. Coviello, ECLAC, GTZ in collaboration with Ministry of Science, Commerce and Technology. June 2005.

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- Inadequate financial and fiscal incentives (e.g. duty and GCT exemptions or property tax rebates). - Lack of dedicated grants or soft-loans for relevant research, development and exploration. - Inadequate up-to-date on-site pre-feasibility assessments. - Public generation and grid system losses, which include both technical (conversion inefficiencies) and non-technical (theft) losses, which currently exceed the total energy produced by renewable energy providers, effectively raising the price of electricity (from all sources) to paying consumers. - Lack of penalties for not meeting renewable energy targets in the National Energy Policy. - Lack of building code enforcement for items such as solar water heaters. - Lack of uniform net-metering and interconnection standards for small-scale power generation units (e.g. solar photovoltaic systems). 40. Another barrier includes the Jamaica Public Service Company Ltd. (JPSCo) Licence which gives this company exclusive rights to transmit, distribute and supply electricity throughout Jamaica, for a twenty (20) year period, based on the All Island Electricity License (2001). This monopoly has allowed JPSCo to protect its sunk capital investment in old generating plant by paying low rates to new suppliers, thereby inhibiting the development of renewable sources. 41. As a result, Jamaica is unusually inefficient in its use of energy. While most nations have become more energy efficient over the last three decades, Jamaica’s energy intensity index (EII) has actually increased. As noted earlier, Jamaica now requires 21,152 BTU to produce US$1.00 of output, compared to a global average of 4,600 BTU 7. Even modest improvements in the efficiency of energy production and consumption in Jamaica will therefore contribute markedly to reducing the energy intensity of the economy. 42. It is clear that past efforts to increase energy conservation and improve efficiency have not been coherent or sustained. The Government’s new Energy Policy is therefore intended to overcome the barriers to the implementation of ECE initiatives. It addresses the need to establish an appropriate institutional framework, raise public awareness and enable the provision of financing. The Government intends to lead by example, ensure that the public sector implements ECE initiatives, and engage the private sector in this national drive.

7

Draft: National Energy Conservation and Efficiency Policy, Ministry of Energy and Mining, 10 October 2010.

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43. The 2010 National Renewable Energy Policy 8 is designed to overcome the barriers and create an enabling framework for the development of the sector and for the deployment of RE technologies. This will provide the context for a range of projects that are expected to enable the country to reduce petroleum imports by about 10% by the end of 2011. There also are three pieces of legislation that are currently facilitating the development of the sector. These are: a. Petroleum (Quality Control) Act, b. Caribbean Basin Initiative and c. Economic Partnership Agreement (EPA) 44. There has been an increase in the percentage of renewable sources in the energy mix, which rose from 6% in 2008 to 9% in 2009. This was due primarily to the roll-out of E10 for use in motor vehicles, although consumer uptake was inhibited by the fall in the price of gasoline in the second half of 2008, which made the ethanol blend more expensive than regular gasoline. 2.4. INSTITUTIONAL, SECTORAL AND POLICY CONTEXT 45. Jamaica currently consumes about 56,000 barrels of oil per day. Over the past decade, the level of annual oil imports has fallen slightly, from 23.6 million barrels in 1999 to about 22.1 million barrels in 2009 9, then to 20.5 million barrels in 2010 10, representing an overall average annual decline of one percent (1%) per annum, so it is the combination of low growth and recession that has caused Jamaica’s EII to rise. Jamaica’s energy mix remains heavily dependent on imported petroleum fuels which account for over 90% of the energy mix, while renewable resources account for less than 10%. The main renewable sources are biomass (fuelwood and bagasse), then ethanol, hydro, wind and solar, in that order (see fig. 2 below).

8

Draft: National Renewable Energy Policy 2009 – 2030: Section 1: Background, Overview and Context - The Energy Sector in Jamaica. Ministry of Energy and Mining, 26August 2010. 9 Ministry of Energy and Mining, Oil Import Statistics, 2009 10 Energy Economics and Planning Unit, Ministry of Energy and Mining. Jamaica Total Petroleum Imports 20062010

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Figure 2.

Renewable energy mix in Jamaica (2009) •Imported oil: ~91%. •Renewable: ~9%.

46. Transport is the largest consumer of petroleum in Jamaica’s economy, accounting for 37 percent of total consumption in 2008. The demand for automotive fuels (gasoline and diesel oil) is growing at 4.3% per annum. The bauxite and alumina industry accounts for 34 per cent, while electricity generation accounts for 23 per cent. The breakdown of energy consumption by activity is summarised in figure 3 below.

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Figure 3.

Energy Consumption by Activity (2008)
3% 2% 21% 30% Bauxite / Alumina Electricity Generation Aviation 14% 7% 23% Shipping Road & Rail Cooking & Lighting Other

47. The organization of the energy sector is as follows: - The Ministry of Science, Technology, Energy and Mining (MSTEM) has overarching responsibility for the development of the energy sector in Jamaica. The Ministry’s Energy Division facilitates the development of strategies, programmes and projects to ensure the successful implementation of the National Energy Policy with a focus on the identification of new, renewable and alternative energy sources and the promotion of energy conservation and efficiency. - The Petroleum Corporation of Jamaica (PCJ) is the main implementing agency of the Ministry and focuses on implementing the energy security and fuel diversification strategies and the cost-effective availability of petroleum products. - The Jamaica Public Service Company Limited (JPSCo) is the National Electric Grid Operator and, along with several Independent Power Producers (IPPs), meets the electricity generation needs of the country. - The Rural Electrification Programme (REP) has responsibility for providing electricity to non-urban areas. Under the REP, 7,000 km of low voltage distribution lines were constructed and approximately 70,000 rural homes electrified. Over 90% of households now have access to electricity. 48. The Government of Jamaica currently owns 20% of JPSCo. However, the Government has taken the decision to privatize and liberalize the electricity sector, and as a first step, all new generating capacity is being developed by the private 23

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sector, with independent power producers (IPPs) who generate electricity for their own use (self-producers) and/or for sale to the national grid. While JPSCo retains a monopoly on the transmission and distribution of electricity, independent power providers now account for over 25% of electricity generation capacity. In 2011, total generating capacity in Jamaica was approximately 820 megawatts (MW), which included 217 MW capacity provided by IPPs, with an average peak demand of approximately 650 MW. 49. The Sector Plan for Energy was completed in 2009 and is one of the strategic priority areas of the Vision 2030 Jamaica - National Development Plan. It is one of thirtyone sector plans that form the foundation for Vision 2030 Jamaica – a 21-year plan with the overall goal of making ‘Jamaica the place of choice to live, work, raise families, and do business,’. The main intention of the Energy Sector Plan is that Jamaica should reduce its dependence on imported petroleum, and create a modern, efficient, diversified and environmentally-sustainable energy sector. The targets for the sector are that it should provide affordable and accessible energy supplies with long-term energy security; contribute to international competitiveness throughout the productive sectors of the economy; and improve the quality of life for citizens. The vision statement of Jamaica’s National Energy Sector is: “A modern, efficient, diversified and environmentally sustainable energy sector providing affordable and accessible energy supplies with long-term energy security and supported by informed public behaviour on energy issues and an appropriate policy, regulatory and institutional framework” 50. The National Energy Policy 2009 – 2030 consists of six sub-sector policies: I. National Renewable Energy Policy II. National Energy-from-Waste Policy III. National Biofuels Policy IV. Carbon Emissions and Training Policy V. National Energy Conservation and Efficiency Policy VI. Electricity Policy 51. The ‘Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica’ project will focus primarily on the Renewable Energy Policy and the Energy Conservation and Efficiency Policy but will also link to all policies related to the sustainable development of the built environment. 52. Jamaica’s National Energy Policy 2009 – 2030 calls for Jamaica to develop its renewable energy sources and enhance its international competitiveness and energy security while simultaneously reducing its carbon footprint. The National Policy sets phased targets for the development of renewable energy, which is to reach 20% of

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total energy supply by 2030. One of the main purposes of setting these national targets is to encourage investment and relevant research. Renewable Energy and Alternative Energy Sources 53. To achieve these goals, it is important to develop public support and political awareness of the importance of simultaneously lowering the energy intensity of human activity and expanding renewable sources for the production of energy. All countries need to develop consistent and coherent national energy policies that take into account local opportunities and constraints as well as the relatively volatile conditions and serious uncertainties in global energy markets. 54. This must be a long-term, sustained effort, because the energy sector is characterized by its long lead times and the high costs of policy mistakes. Investments in energy infrastructure are typically amortized over three decades or more. This means that the sector tends to be conservative, with a high level of inertia, as there are usually long lags before new solutions can be implemented. Governments therefore have to make energy efficiency and renewable energy a high priority, and they must remain consistent in this regard for many years so that they give the energy sector clear signals as to the way forward. 55. Jamaica’s energy sector also has to develop the increased flexibility and capacity needed to adopt new technologies that support its policy goals. The increase in oil prices has stimulated technological advances in developing alternative energy sources, improving efficiency in energy production and consumption, and in other areas, but it is equally important to ensure that the market is able to absorb these solutions. The Caribbean has solar, ocean current and wind energy potential, and renewable energy resources for Jamaica include hydropower, wind, solar energy, and bio-fuels such as ethanol, bio-diesel, bagasse, fuelwood and biogas. Emerging technologies which could become relevant to the development of the energy sector in Jamaica over the planning timeframe to 2030 include fuel cells, third and fourthgeneration bio-fuels, and efficient solid state thermoelectric converters for solar energy. It is also important to allow for disruptive technological innovations, which could rapidly alter the market for energy production, distribution and use. 56. The National Renewable Energy Policy 2009 – 2030 11 lists a number of renewable energy projects that are currently in the pipeline and are expected to come on stream in by 2012. These include:

11

Draft: National Renewable Energy Policy 2009 – 2030: Creating a Sustainable Future. Ministry of Energy and Mining, 26 August 2010.

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i.

ii.

Energy from Waste: Jamaica generates approximately 1.3 million tons of Municipal Solid Waste (MSW) island-wide annually. This waste can be converted to useable energy through the use of waste-to-energy (WTE) conversion technologies. The PCJ is currently in negotiations with an investor to develop two WTE plants at Riverton in Kingston to produce 45 MW and at Retirement in Montego Bay to produce 20 MW. Biodiesel: Jamaica has the potential to produce and use biodiesel made from feedstocks such as waste vegetable oil (WVO) or indigenous crops such as castor and jatropha. The PCJ has commenced a small pilot project on biodiesel which will help to inform policy.

57. The GEF / UNEP / UWI – ISD project therefore addresses some of the key national sector issues and the prototype building will provide an opportunity to develop real examples and practical solutions. As the key policy-makers have already agreed to serve on this project advisory committee, the lessons learned will be readily absorbed into policy. 58. Institutional Context In 2006, the GOJ established a Centre of Excellence for Renewable Energy (CERE), a division within the Petroleum Corporation of Jamaica (PCJ). CERE’s mission is to ensure that Jamaica remains abreast of developments in renewable energy, and can implement them as and when possible. 59. More specifically, CERE’s mission is to enhance the contribution of renewables to the energy mix by: - Bringing focus to the development and diversification of renewable energy sources and technologies; - Researching, educating, demonstrating new technologies and methods and collaborating with various energy stakeholders, local and foreign investors and environmental stewards; and - Meeting the energy policy goal of 15% renewables in the energy supply mix of by 2020 and 20% by 2030. 60. The University of Technology, Jamaica (UTECH) has just opened its Institute of Sustainable Energy. This combination means that the issues of EE and RE are likely to have increasing national focus.

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2.5.

STAKEHOLDER MAPPING AND ANALYSIS 61. The “Promoting Energy Efficiency and Renewable Energy in Buildings in Jamaica” project touches on a wide variety of sectors in the country. The key stakeholders in this project can be grouped into the following categories: Government Ministries and Agencies, Educational Institutions, Professional Bodies, the Private Sector and Financial Institutions.

A. -

Government Ministries and Agencies Office of the Prime Minister (OPM) Website: www.opm.gov.jm The OPM is the largest Ministry in the Government of Jamaica (GOJ). Its main role is to support the Prime Minister in providing leadership and direction for the other Ministries, and thereby ensure policy coherence, and that the machinery of Government operates effectively. The responsibilities of the OPM are divided into two areas; the Subjects and the Departments that have responsibility for each area. The following Departments and Agencies of the OPM are project stakeholders:

-

Department of Planning and Development This Department has portfolio responsibility for environmental management, land use planning and development, spatial planning and solid waste management. In conjunction with the National Environment and Planning Agency (NEPA), they provide expert advice and guidance on the environmental impacts of all renewable energy projects and programmes. They also have an important role to play in ensuring that the development of the renewable energy sector is done in an environmentally sustainable manner and determine the impact of renewable energy projects on the emission of GHG emissions. NEPA also has responsibility for applications for permits for the implementation of various renewable energy projects. Role: Advisory. The local GEF focal point is located in this office. All projects of this nature must be developed in coordination with this department.

-

Meteorological Services Website: www.metservice.gov.jm The Service consists of two key sections: The Weather Branch is concerned with the observation and forecasting of weather conditions over and around the island.

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This Section, in particular, maintains a continuous Hurricane Watch during the hurricane season and is responsible for issuing severe weather warnings. The Climate Branch is responsible for maintaining a current database of the climate of Jamaica and for the utilization of this data in informing the productive sectors of the country. Role: Advisory. The provision of data and updates on climate change issues. Office of Disaster Preparedness and Emergency Management (ODPEM) Website: www.odpem.org.jm ODPEM is the National Disaster Organization responsible for disaster management in Jamaica and has been charged with the responsibility for action to reduce the impact of disasters and emergencies on the Jamaican population and its economy. It plays a coordinating role in the execution of emergency response and relief operations in major disaster events. Role: Long term implementer. The revision of emergency shelter standards and replication of ideas developed. Planning Institute of Jamaica (PIOJ) Website: www.pioj.gov.jm As the foremost planning agency of the government, the PIOJ’s functions include: initiating and coordinating the development of policies, plan and programmes for the economic, financial, social, cultural and physical development of Jamaica; advising the Government on major issues relating to economic, environmental and social policy; undertaking research on national development issues; providing technical and research support to the Cabinet; collecting, compiling, analysing and monitoring social status and economic performance data; managing external cooperation agreements and programmes; and collaborating with external funding agencies in the identification and implementation of development projects. Role: To lead the adoption of standards and lessons learned into national standards as well as assistance with seeking funding for long term sustainability of EE and RE and replication projects. Proposed Environmental Regulatory Authority (ERA) Green Paper: www.cabinet.gov.jm The Government Green Paper that proposed the ERA stated that the goal of this reform was to improve Jamaica’s planning and regulatory systems in order to

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achieve sustainable development. This will be translated into specific policy goals such as energy and resource efficient buildings, cities, industries and transport systems, good water and resource management, waste minimisation and recovery, a reducing rate of environmental damage with environmental remediation and enhancement where appropriate, greater resilience and reduced vulnerability to storm surge, flood, earthquake and other disasters, and urban systems that contribute to the physical and social wellbeing and thereby help to reduce conflict and crime. 12 Depending on the legislative timetable in Parliament, the ERA might be operational from 2013-14. Ministry of Science, Technology, Energy, and Mining (MSTEM) Website: www.mem.gov.jm The key functions of the MSTEM are to provide the policy framework and strategic direction for the operations of Divisions, Agencies and Departments, to collaborate on the promulgation and amendment of legislation and regulations which guide the operations of its Agencies and Departments and to set priorities and allocate financial and other resources, as appropriate. The two functional areas are: Energy and Minerals Development (Mining and Geology). The Energy Division of the Ministry oversees the functioning of the energy sector. It monitors energy supplies and the identification alternative energy sources, as well as energy conservation. The Division works with: The Petroleum Corporation of Jamaica (PCJ) in relation to petroleum and petroleum products, and with The Jamaica Public Service Company Limited (JPSCo) in connection with light and power. Role: Lead Stakeholder and advisor. Through its agency, institutions and policies the lessons learned from this project will inform national guidelines and standards.

Ministry of Water, Land, Environment and Climate Change (MWLECC) Website: www.mwh.gov.jm The Ministry of Water, Land, Environment and Climate Change is responsible, inter alia, for: a. The provision of potable water, sewage facilities and related services to all users

12

Establishment of an Environmental Regulatory Authority: Government of Jamaica Green Paper, Public Sector Modernisation Division, Office of the Cabinet

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In achieving its mandate, the MWLECC has its strategic objectives effectively aligned with the direction of the Government. As part of its approach for providing housing solutions for its citizenry, the Government intends to ensure that housing solutions will cater to the needs and affordability of different markets. The Agencies of the Ministry are: The National Water Commission (NWC), the Rural Water Supply Company Ltd. (RWSL), The Jamaica Mortgage Bank (JMB) and the Water Resources Authority (WRA). Role: Long term implementer of construction standards via the major housing projects of the HAJ. Lead stakeholder in policy development in areas of grey water re-use and rainwater harvesting via the NWC and WRA. D. Ministry of Transport, Works and Housing (MTWH) Website: www.mtw.gov.jm The MTWH is responsible for Jamaica’s land, marine and air transport as well as the main road network, bridges, drains, gullies, embankments and other such infrastructure. The Ministry recently assumed the Housing portfolio which will include the facilitation, development and implementation of access to legal, adequate and affordable housing solutions for the Jamaican people. Their activities in the case of Housing include a combination of activities such as housing policy and research and marketing and community development (social services). There are currently 20 reporting entities that assist the Ministry in fulfilling its mandate. These include the Airports Authority of Jamaica, Maritime Authority of Jamaica and National Works Agency. The MTWH has regulatory responsibilities for the following: a. Airports b. Aerodromes c. Airline Operators d. Seaports e. Shipping traffic f. Public Land Transportation g. Road Infrastructure and Road Safety h. All modes of transportation whether publicly or privately operated.

Scientific Research Council

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Website: www.src-jamaica.org The Scientific Research Council (SRC) is an Agency of the Ministry of Industry, Investment and Commerce. It is Jamaica’s principal public sector agency responsible for the fostering and coordination of scientific research and the promotion of its application. Most of the Council’s projects support the growth and development of the agro-industrial sector in Jamaica through research, adaptation of available technologies, creation of new and appropriate technologies and the provision of training and technical assistance. Role: Guidelines for the development of bio-fuels systems for the project. B. Institutions University of Technology, Jamaica Website: www.utech.edu.jm Role: Stakeholder in long term project replication through its Institute for Sustainable Energy and in EE / RE component development through its Technology Innovation Centre (TIC). University of the West Indies Website: www.mona.uwi.edu Role: Project Initiator, Manager and Lead through the Institute for Sustainable Development (ISD). The prototype building will be located on the Mona campus. Caribbean Academy of Sciences (Jamaica) Website: http://www.caswi.org.jm/
The Caribbean Academy of Sciences was inaugurated in Trinidad in May 1988. It has five divisions covering the natural, agricultural, medical, engineering and social sciences. Current membership stands at over 200 members, including scientists from the Englishspeaking Caribbean, Guadeloupe, Cuba, Guyana and Suriname.

C.

Professional Bodies Jamaica Institute of Architects (JIA) Website: www.jiarch.org

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The objectives of the Jamaican Institute of Architects are to promote and increase the knowledge, skill and proficiency of its members in all things relating to the profession of Architecture; to advance and maintain a high standard in the practice of Architecture in Jamaica, and to those ends, establish and maintain or to assist in the establishment and maintenance of classes, exhibitions or lectures in and to promote public appreciation of Architecture and the allied arts and sciences. Role: Advisory. Architects will lead the building design process as well as the long term inclusion of lessons learned in the built environment. Jamaica Institution of Engineers (JIE) Website: www.jiejamaica.org The Jamaica Institution of Engineers exists to promote and encourage the general advancement of the Engineering profession and the practice and science of Engineering, and to facilitate the exchange of information and ideas among the members of the Institution and its public. Role: Advisory. Testing and dissemination of lessons learned particularly in the area of EE, RE and climate change adaptation standards development standards

1. Incorporated Masterbuilders Association of Jamaica (IMAJ) Website: www.imaj.org.jm The IMAJ is the construction trade association in Jamaica representing all facets of construction for both public and private entities including commercial and residential buildings, civil engineering, highway, and municipal projects. IMAJ is widely recognized by the public and private sector in Jamaica and internationally as the main representative of the construction industry. IMAJ works to advance the industry and improve contractors’ day-to-day operability by: - Lobbying contractors’ policy agenda with government and other agencies. - Providing education opportunities including scholarships, safety training, supervisory training, and technical support. - Working collaboratively with members island-wide to meet members’ needs. Role: Testing, Implementation and Dissemination of components developed, standards set and lessons learned regarding the use of EE, RE and climate change adaptation methods in the construction industry.

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2. Construction Industry Council Website: www.imaj.org.jm The Construction Industry Council (CIC) is the representative forum for the professional bodies, research organisations and specialist business associations in the construction industry. It includes all the specialised professions in the building industry including architects, engineers, land surveyors, quantity surveyors and valuators. Role: Dissemination of information and lessons learnt to the local construction professional community and by extension all related regional and international professional bodies.

3. Jamaica Green Building Council The JAGBC will lead the Jamaican green building movement by encouraging the use of market –based sustainable solutions in the built environment. It is expected to be ratified by the World Green Building Council by December 2012. JGBC Mission: Increase awareness of the opportunities, advantages ,financial benefits and costs savings of green building and lifecycle planning to all construction industry stakeholders Promote green building practices and the adoption of a green building rating system Advocate for the adoption of green building incentives as part of our building regulations Encourage the design, construction and operation of energy efficient ,environmentally friendly buildings and developments Encourage the design, construction and operation of sustainable buildings that minimize negative environmental impacts and are cost/ energy efficient Private sector

• • • • D.

1. The Jamaica Public Service Company Ltd (JPSCo) Website: http://www.jpsco.com/ The Jamaica Public Service Company is the sole distributor of electricity in Jamaica; with generation capacity that exceeds 620 Megawatt (MW), utilizing steam (oil-fired), gas turbines, combined cycle, diesel, and hydroelectric technologies. The company operates four main oil-burning generating plants, 8 small hydroelectric plants, one wind farm, 54 substations, owns approximately 14,000 kilometres of distribution and transmission lines, and purchases additional electricity from 4 Independent Power 33

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Producers IPPs) to give a total generating capacity of about 820 MW. The customer base is about 600,000, and the average peak demand is about 650 MW. 2. The Jamaica Hotel and Tourist Association (JHTA) Website: http://www.jhta.org/home The Jamaica Hotel & Tourist Association represents Jamaican hotels, other visitor accommodations as well as most suppliers of goods and services to the tourism industry. E. Financial institutions

1. The Inter-American Development Bank (IDB) Website: http://www.iadb.org/en/about-us/about-the-inter-american-developmentbank,5995.html Established in 1959, the IDB is the largest source of development financing for Latin America and the Caribbean. The shareholders are 48 member countries, including 26 Latin American and Caribbean borrowing members.

2.6.

BASELINE ANALYSIS AND GAPS 62. Buildings of all types (residences, offices, hotels and other commercial complexes) consume about 55% of the electricity generated in Jamaica. The Government has therefore recognized the importance of making buildings more energy efficient. The first attempt to develop a comprehensive Energy Efficient Building Code (EEBC) 13 started in 1987. This project, sponsored by the Canadian International Development Agency (CIDA) through the World Bank Energy Sector Management Assistance Programme (ESMAP), developed a proposed EE code that covered the building envelope; lighting (use of natural and energy efficient natural lighting); electrical power distribution; air-conditioning, heating and ventilation; and the operation and maintenance of commercial and residential buildings. The minimum targeted saving was 30% above the performance of the conventional construction techniques used at the time, without adding more than 5% to the construction cost, and building owners were encouraged to invest over the 5% margin to achieve more than the 30% minimum targeted saving.

13

Jamaican Standard, Jamaica Application Document for the International Energy Conservation Code, Bureau of Standards Jamaica. JS 309: 2009.

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63. The 2003 version of the International Energy Conservation Code (IECC) concentrated the search for energy saving possibilities on the building envelope of all building types, including the low-rise residential sector (the earlier version only covered high-rise). The 2003 IECC therefore compliments the existing Jamaica EEBC, as the latter targets only the commercial sector and conditioned residential buildings above four stories. The Jamaican EEBC has been updated since 2003, the revised version was published in 2009 in ‘The Jamaica Standard: Jamaica Application Document for the International Energy Conservation Code’. The same stakeholders that supported that process will also serve on this project. This group includes: the Jamaica Institution of Engineers (JIE), the Jamaica Institute of Architects (JIA), the Incorporated Masterbuilders Association of Jamaica (IMAJ), the University of Technology, Jamaica (UTECH), the Ministry of Water, Land, Environment and Climate Change (MWLECC), the Bureau of Standards Jamaica (BSJ), the National Environment and Planning Agency (NEPA), as well as housing developers and mortgage and financial service organizations. 64. The application document combines the IECC and EEBC and updates where necessary any EEBC requirements over 10 years old. The general approach is to specify the minimum energy saving requirement while also supporting higher energy saving targets where possible. The application document covers the low-rise residential sector (for the first time in Jamaica) and sets out the following three approaches for designing EE buildings in this sector: i. ii. iii. A Systems Analysis Method utilizing renewable energy sources A Component Performance Method A Prescriptive Method that specifies practical measures to achieve major energy savings

65. The most radical difference between the application document and the former IECC is that the application document requires that unconditioned buildings are also designed to operate to higher standards of energy conservation for the building envelope, lighting, appliances and equipment (including water heaters). This difference arises from the fact that in Jamaica most residential and small commercial buildings are initially constructed as unconditioned buildings that then need heatalleviating measures, especially in the hot summer months. This mostly involves fans, which mainly circulate stale air while increasing the temperature of the room. The extension of energy conservation provisions to unconditioned buildings should therefore reduce the need for heat-alleviating measures. This will significantly improve the comfort of occupants, thereby reducing heat stress, and also ensure that inefficient retro-fitted heat-mitigating measures are no longer necessary.

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2.7.

LINKAGES WITH OTHER GEF AND NON-GEF INTERVENTIONS 66. As noted earlier, the world’s problems with energy and climate change cannot be solved without radical improvements and reforms in building design, construction and operation. This project therefore has global significance. The research and construction of an advanced prototype zero net energy building, and all associated lessons learned from this project, will therefore be linked to a number of related projects through the implementing agency, UWI, the technical assistance agency, UNEP, the main funding agency, GEF as well as through the network of stakeholders. This project will also link to the proposed GEF-financed global project, the on-going GEF-financed Global Market Transformation for Efficient Lighting project (both undertaken by UNEP), all other GEF projects, as well as to relevant networks of partners in the Caribbean and beyond. Activities will also be coordinated with regional and national initiatives in the Caribbean to promote EE in buildings. Specifically: - UNEP will ensure that appropriate external and internal arrangements with regard to linkages will be made before, during and after the execution of the project, and that all activities under the project will be properly coordinated with the two global GEF-financed projects. - The project will be linked to UNEP’s Sustainable Buildings and Construction Initiative (SBCI). This is a UN partnership established to promote more sustainable buildings, which includes increasing their energy efficiency. Through SBCI, this project will be linked to other international sustainable building initiatives, including the Marrakech Task Force on Sustainable Buildings and Construction (MTF), the Energy Efficiency in Buildings project of the World Business Council for Sustainable Development (WBCSD), and the World Green Building Council (WGBC). The project will also be linked to the UNDP / World Bank (WB)/ InterAmerican Development Bank (IADB) -GEF portfolio of building-related projects (past projects have mainly focused on mandatory codes, district heating systems and ESCOs, so this project will be a useful addition to this portfolio). The project will also be linked to the UNEP-GEF program on National Cleaner Production Centres, as this program has included audits and ESCOs in buildings. - The link to the SBCI is particularly important, as this forum brings together experts from around the world to promote energy efficient buildings. Global targets in developed countries were revised in the last three years to specify zero net energy or zero emissions from new public buildings by 2019 in Europe, 2030 in the USA, and to reduce emissions from existing buildings by half. These techniques and technologies will be made accessible to all participating countries through this global forum.

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- Data from this project will also be fed into the global benchmarks of building performance, which will allow countries to compare their building performance to global averages and targets. - Data from this project will be used to support the New Energy Efficiency Building Code (EEBC) in Jamaica to be promulgated (provisionally) in 2012, and will inform the next revision of the national building codes. The personal participation of the Minister of Housing in the project will ensure that the new building codes reflect the lessons learned in this project. - The project team at the University of the West Indies will work closely with key stakeholders, including the Office of the Prime Minister (OPM) incorporating the former Ministry of the Environment, the Ministry of Science, Technology, Energy and Mining (MSTEM), the Ministry of Water, Land, Environment and Climate Change (MWLECC), the Center of Excellence for Renewable Energy (CERE) at the Petroleum Corporation of Jamaica (PCJ), the University of Technology (UTECH), the Scientific Research Council (SRC) and the Private Sector Organization of Jamaica. These organizations will be represented on the Project Advisory Committee. This will allow the project to utilize their expertise and resources, to accelerate the development of solutions and to promote the dissemination of new ideas. - All the Caribbean nations will be kept fully informed of the findings and results under the project through the active dissemination and sharing of information with CARICOM nations and the Caribbean Community Climate Change Centre (5Cs) based in Belize. Working groups will be established between UWI and these regional organizations to coordinate regional workshops and activities for disseminating lessons and promoting EE in buildings throughout the Caribbean region and beyond. Section 3: INTERVENTION STRATEGY (ALTERNATIVE) 3.1. PROJECT RATIONALE, POLICY CONFORMITY AND EXPECTED GLOBAL ENVIRONMENTAL BENEFITS a. General

66. As explained earlier, the built environment accounts for over a third of world total energy use and associated GHG emissions. As a result, buildings are – in most countries – the largest source of GHG emissions. Building related emissions were estimated at 8.6 billion tons in 2004 14 – a figure that could almost double by 2030 – yet available technologies could cut energy consumption in both new and old buildings by between 30 and 50 per cent without significantly increasing investment
14

UNEP: Climate Change - 30 Ways in 30 Days http://www.unep.org/unite/30ways/story.aspx?storyID=24

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costs. This technology is still relatively little used, however, mainly because of the economic fragmentation and relatively short investment perspectives that currently dominate the sector. For example, the financial savings that result from greater efficiency and reduced operating costs accrue to the building occupant, not the construction firm, so there is little incentive for the construction company to build to the requisite standards unless the customers demand and are willing to pay for higher standards. The challenge therefore is to mainstream sustainability and energy efficiency, encouraging a life-cycle approach to building construction, design and refurbishment. 67. Smart design, improved insulation, low energy appliances, high efficiency ventilation and heating/cooling systems, and the behavior of building users can all be market-driven, and have a significant impact, but a systemic transformation of the built environment is unlikely to happen until governments establish a policy framework that rewards life-cycle approaches to energy, water and resource efficiency in the building sector, and allows for the transfer of costs and benefits between successive owners, supported by tools that allow the effect of energyefficiency and sustainable building measures to be measured and verified. This project will link to national and regional policy processes to ensure that lessons learned are reflected in government policies on energy, planning and building. This project will therefore help Jamaica to significantly reduce its energy intensity 15, which will reduce the country’s vulnerability to energy shocks, reduce outflows of capital and improve competitiveness, while also reducing environmental impact.

b.

Calculation of energy savings and CO2 emission reductions

68. The advanced prototype building will have net zero energy demand. This will be achieved in two ways: • Minimizing power demand. This will involve designing the building to maximize the use of solar lighting while minimizing heat gain, utilize shading, air-flow cooling and orientation for passive cooling, supported by internal climate control technologies such as absorbent wall coatings for humidity control, solar powered air conditioning and dehumidifiers, with OLED surface lighting and external servers to minimize waste heat, and using active 'smart' building control systems to eliminate the possibility of human error in managing the building’s lighting and temperature.

15

EE improvements will be measured through changes in energy intensity in each sector (i.e. total energy consumption per US$GDP), as lower energy intensity is a good proxy for improved energy efficiency.

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Utilizing renewable energy technologies. This will involve e.g. a biogas methane generator and/or a waste fat and oil diesel generator, and installed Building Integrated Photovoltaic Technology (BIPT) (40kw). Baseline data

-

69. The baseline data is from a comparable existing university building adjacent to the site for the new net zero energy building. The existing building currently consumes 50,000kWh/year. Jamaica's electricity supply is generated by burning oil, so the power demand of the existing building produces 34.5 tons of CO2 a year. The new net zero energy building is designed to operate with no CO2 emissions, so from the day that the building is opened it will reduce CO2 emissions by 34.5 tons of CO2 a year in comparison to the baseline building, a total net saving of 690 tons of CO2 over the first 20 years of operation. National CO2 emission reductions

70. Table 1 shows the impact of the Project. Direct impacts are defined as those savings in energy and reduced CO2 emissions that can be directly attributed to the investment made during the project’s implementation period (i.e. four years). The main impact of the project will be indirect and post-project, for three reasons. The first is that the purpose of the demonstration building is to influence the market to increase demand for retrofit solutions. The second is that the relevant Ministries, government agencies and professional organizations will then raise building codes and standards once the demonstration building has established proof of concept, so that zero net energy/energy plus buildings eventually become the norm; we have estimated this impact at 10% of the new-build housing developments. The third is that the project itself will only take four years, but the effects and the benefits can be quantified over the subsequent decades. 71. The average life expectancy of a new building in Jamaica is about 30 years, but the carbon benefits have been calculated over just 20 years to comply with GEF standard practice for calculating total carbon emission reductions. It is assumed that retrofitting will be carried out to all ‘left-over’ newly built houses every year (i.e. the new houses that were built to the old standards), as well as 1% of the existing houses (i.e. those that have already been built) in an arithmetic progression. It is assumed that the Government will encourage the retrofitting of old houses by giving partial tax relief incentives to the owners, but that no direct subsidies will be made available. These are all conservative assumptions, so carbon savings are likely to be higher in practice than those stated. Finally, it is assumed when calculating carbon emission reductions that the current level of dependence on oil remains constant over the period. 72. New build: On average, about 1,640 new buildings are constructed in Jamaica each year. If this rate of construction remains constant over the 20 year period from 2016

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to 2035, then some 32,800 new buildings will have been constructed by the end of 2035. The average electricity consumption per domestic housing unit is currently about 2,000kWh/year/house, on average, mostly for cooling and lighting. So if 10% of the new buildings (i.e. 164 houses) are built to zero net energy/zero emissions standards in an arithmetic progression starting from 2016, then by 2025 all new built houses would be zero energy buildings. This would eliminate, on average, consumption of 2,000kWh/year/house. This would reduce total national power demand by 7.22 x 107 kWh of electricity by the end of 2025 and by 33.08 x 107 kWh by the end of 2035. 73. The exact number of houses in Jamaica is not known with certainty, as over 20% of the population of Jamaica live in informal settlements. However, the baseline estimate of the total housing stock is 600,000, as this is the number of houses that were connected to Jamaica's national power grid in 2009. Assuming the same constant rate of construction, and adding the new houses built during the period 2009-2016, then there will be about 609,840 houses connected to the grid by 2015. 74. Retrofit: It is estimated that the existing houses could achieve 40% net energy savings (i.e. a saving of 800 kWh per year each) if they are retrofitted with the energy saving solutions tested in the advanced prototype. It is assumed that ‘leftover’ newly built houses and 1% of existing houses (in an arithmetic progression) will be retrofitted from 2016. If this target is met, all existing houses will be retrofitted by the year 2029. The accumulated reduction of CO2 emissions will then be 3,954,501 tons by 2035. 76. The assumptions in Table 1 are as follows: • • • • • The first new units will not be constructed until 2016 when the GEF project will end. That each year an additional 10% of the new-build houses will be constructed to net zero energy standards thus ensuring that all (100%) of all new houses will zero-net energy buildings by 2025. All ‘left-over’ newly built houses will be retrofitted each year. That every new house has a minimum 30-year lifespan. Total estimated energy savings are calculated over the period 2016-2035.

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Table 1: GHG Emission Reduction Estimate (tons of CO2)

Impact of project Years No. Houses

New build Energy saving (107 kWh) 0.005 CO2 emission reduction (tons) No. Houses

Retrofit houses Energy saving(107 kWh) Total CO2 emission reduction (tons) accumulated over 20 years

Direct benefits

2016

1 (prototype)

34.5

690.0

Indirect benefits (post project)

20162035

25,420

40.28

299,758

299,758

20162035

617,216

573.62

3,954,501

Total CO2 emission reduction

4,254,949

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-

Estimates of CO2 emission reductions

77. The total reduction in CO2 emissions as a direct result of the Project is estimated to be 690 tons. Note that this only includes the GEF Project-financed prototype zero energy building. The post-project result (including the cumulative benefit of 10% (in arithmetic progression) of newly constructed buildings being built to ZEB standards, plus 1% of existing buildings (in arithmetic progression) being retrofitted each year over 20 years) is estimated to be 4,254,259 tons. The total reduction in carbon emissions is therefore estimated at 4,254,949 tons. Progress towards this goal will be reviewed, and this schedule adjusted as necessary. By 2035: Direct benefit = reduction of 690 tons of CO2 emissions. Indirect benefit due to ZEB = reduction of 299,758 tons of CO2 emissions. Indirect benefit due to retrofitted buildings = reduction of 3,954,501 tons of CO2 emissions. Total CO2 emission reduction = 4,254,949 tons. 78. Building-integrated photo-voltaic (BIPV): The BIPV effect for retrofitted building has not been included, as it cannot be assumed that this will include BIPV capacity. 79. The Project will also link to UNEP’s Sustainable Buildings and Climate Initiative (SBCI), which is a platform for international cooperation to develop the agenda for sustainable buildings through policy advice, capacity building, R&D, and tools development 16. This will help to ensure that the lessons from the project influence global outcomes. In addition, the project will link to the SBCI project on a common carbon metric, which will allow consistent, comparable reporting on the climate performance of any building in any region of the world. This will ensure that the advanced prototype building in the Caribbean is properly benchmarked against global standards.

16

UNEP incorporated these principles in its own headquarters in Nairobi, which utilizes solar power generation, natural lighting and cooling, efficient IT solutions, rainwater harvesting, water recycling and improved waste management. This made the building the first of its kind in Africa and an international showcase for sustainable buildings. The prototype building in this project will develop a comparable high-impact example for the Caribbean and Latin American region.

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80. The Project will therefore support SBCI’s work in aligning efforts that will enable policymakers and building sector stakeholders to apply life cycle approaches in all new and refurbished buildings worldwide. SCBI’s work is already having a global impact; in developing countries alone, an investment of $90 billion in energy efficient investments in buildings is expected to generate savings of over $600 billion in avoided energy costs and reduce the greenhouse emissions associated with buildings by an estimated 3.6 billion by 2050 at net zero cost, and significantly greater savings at moderate cost. This project will help to extend this work to the Caribbean, and bring another fifteen nations into the program.

3.2.

PROJECT GOAL AND OBJECTIVE 81. The objective of this project is to demonstrate that far higher standards of energy efficiency and productivity, renewable energy utilization and sustainable building practices and policies are fully feasible in tropical and sub-tropical regions. This will require the construction of an advanced prototype net zero energy, zero-carbon ‘smart’ building as a demonstration project in Jamaica, accompanied with active dissemination and training programmes to translate the lessons into policies, then to transfer them across the Caribbean region and beyond. The project will develop some highly innovative and adaptive solutions, with both active control and passive design features, and an integrated design for maximum efficiency. 82. The primary goal is to build an innovative new prototype that offers radically better solutions. Some of the building modules will be ‘designed for disassembly’; an advanced manufacturing concept that gives outstanding life-cycle performance and will also allow the development of a range of modular solutions, some of which could be retrofit to existing building types. A net zero energy solution is a potential 'game-changer'; it will demonstrate that tropical and sub-tropical countries are not restricted to modest, incremental improvements which will do relatively little to solve the problem of climate change, but can move directly to far superior solutions that will transform energy efficiency and productivity in tropical and sub-tropical regions. This will result in improved building practices, which will have multiple benefits: increased energy efficiency, reduced CO2 emissions, increased resilience to the anticipated impacts of climate change, reduced dependency on imported oil, reduced financial outflows, and increased competitiveness in international markets. 83. The prototype building will be designed to meet all energy requirements from low cost, non-polluting and renewable sources, with grid connection to balance supply and demand. The building will be located on the University campus for maximum visibility and utilization, and the campus will serve as a smart-grid, ‘buying’ power

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from the building when it is in surplus, and ‘selling’ power to the building when it is in deficit. 84. The prototype will utilize several key design concepts and technologies. For example, one of the design options to be explored is prefabrication, which allows subcomponent structures to be built in a controlled environment. This reduces cost and waste, partly because the greater precision of factory building means that parts can be manufactured to exact sizes, and partly because off-cuts can be reused or recycled more easily in a factory as opposed to a building site. Precision-building also allows buildings to be made almost airtight, thus eliminating unwanted heat gain or loss. This makes ventilation essential, of course, and heat exchangers can be used to transfer heat to moist, stale air as it is pumped out (in a hot, humid climate like Jamaica). This conserves energy. It also removes humidity, which prevents dust-mites and mould spores from spreading, and thereby helps to reduce the incidence of asthma. Interior wall and ceiling panels coated with absorbent lining can be set to release heat depending on the temperature, thereby reducing the need for air conditioning or heating. Other features include PVs and solar thermal panels, roof-mounted wind turbines, smart metering, biomass boilers utilizing waste biomass and combustible waste, rainwater harvesting and grey water recycling (which involves collecting and cleaning rain, bath and shower water, so that it is not necessary to use potable-grade water for flushing toilets), taps and showers designed for low water consumption, and heat-sensor controlled air vents to regulate temperature. 85. There will be a strong emphasis on the involvement of architects, builders, planners, major purchasers and other stakeholders to ensure rapid uptake of the new building concepts. The overall objective is to influence both the supply and demand side of the market by demonstrating that advanced building solutions are both feasible and highly desirable. The project will assess the technologies and new building solutions, establish baselines, measure performance and estimate savings. All project components will be fully documented. The building will be used as a demonstration model, but will also be utilized for a range of other purposes which will generate sufficient cash-flow to ensure indefinite financial sustainability. 86. The following are some of the key design elements of the demonstration project: a. Climatic Adaptability i. The building will be designed to withstand severe storm/hurricane and drought conditions, as most projections for climate change indicate that there may be a higher incidence of extreme climatic events in the future. The building itself must be designed to operate as an emergency shelter in the event of a major disaster. This in turn has a number of practical

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implications, as the occupancy of the building is therefore likely to be higher than normal during a disaster event. This means that demand for energy, water and sanitation is likely to peak at the same time that external supplies are most likely to fail. ii. There is a need to have more internal storage to allow the building to operate off-grid for extended periods. This period will typically start before a storm, as the grid is usually powered-down in order to ensure that any broken high-tension cables are not live, and will last for an extended period after a storm, as they usually do significant damage to the largely above– ground transmission system. This means that the grid is often unavailable for many days after a storm. Thus before, during and after a hurricane, there may be no external power, while the building load is likely to remain high. Another requirement is that the building power systems including the transformer and storage systems must be in strengthened containment (or underground) to ensure that the core building systems can survive even a direct hit from the eye-wall of a major, category 5, hurricane.

b. Energy i. This project component will include the provision of electricity from solar PV systems to power building units. This will be a fully functional unit, which will allow for the monitoring of usage, improvements, and eventual roll-out to the wider community. This includes: • Designing, developing and installing a 30KVA PV system with the distribution centre operated through a computer network. • Fabrication of balance of system from the solar cell modules. • Fabrication of solar panels (either amorphous Si or thin film solar panels) from Balance of system. • Installation of the distribution centre, which includes invertors, voltage regulators, 350 amp hour batteries, transformers and a grid system. • Assessment of load requirements. • Connection of the loads to the distribution centre. ii. The equipment and supplies will comprise: solar modules, support structures, interconnect wiring kit and system, lightning protection and subarray kit, timing and switching subsystem, batteries, battery cables and accessories, inverter and control systems, monitoring and recording system, battery housing including ventilation, instrument housing and interface system. The installation of the PV system will involve site preparation,

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construction of monitoring and instrumentation enclosures, raceways and conduits, installation of support structures and solar panels, testing and adjustments and commissioning c. Water and Sanitation i. It is also essential to allow for stand-alone water capture, storage, filtration and pumping. Water systems may also be locked off in the aftermath of a hurricane, as flooding and landslips result in a surge of sediment into the system, and as landslides can also fracture distribution pipes. This means that it is important to ensure that the building can continue to supply water and process sewage and waste water for an extended period without external supplies. ii. A Biodigester Septic Tank (BST) is an on-site sanitation unit which provides for the disposal of toilet (black) wastewater as well as of used kitchen and bathroom (grey) water via anaerobic degradation. It is efficient, with over 90% removal in organic matter and solids. It is also more cost-effective than systems involving activated sludge, oxidation ditches and so on. In addition, BSTs can be used to generate biogas, which can replace liquid petroleum gas and firewood. BST is not a replacement for centralized treatment systems, but for the present ineffective on-site methods of disposal such as septic tanks and soak-away pits which are still widely used in Jamaica. These cause a range of problems, including the risk to health (especially of young children) from inadequate handling and disposal of sewage, and pollution of surface, ground and coastal waters, with corresponding impacts on ecosystems and deteriorating water quality. A properly-installed BST system has a life span of over 20 years and typically requires little or no maintenance (apart from minor routine checks for gas tightness, cracks and water loss). The sludge is degraded in the process so there is no need to withdraw and dispose of sludge. This allows the system to be underground, which means that it will survive a hurricane. iii. The Scientific Research Council (SRC) along with the Ministry of Mining and Energy has developed biodigester systems for the digestion of animal waste and the production of biogas as a source of energy. There are now over 150 operational biodigester systems in Jamaica. This specific component of the proposal would involve the development of a solar-powered biodigester unit. If this component can be successfully mainstreamed then this would allow housing complexes in Jamaica to process their waste water and sewage, and produce some of their own energy. This can be used directly for cooking, which would reduce the dependency on imported LPG. However, many Jamaicans are reluctant to use sewage-derived methane for

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cooking, so another option is to aggregate supplies, run a gas turbine and generate electricity, and thereby reduce the dependency on the grid. 87. A central monitoring and control management system will be developed in accordance with the proposed EEBC. This will: • Provide readings and record daily totals for electricity power and demand, and track energy imports and exports to the smart grid as demand is balanced against supply. Record and calculate moving averages for these values over each day, week and month. Manage the smart building by monitoring temperature and humidity, and controlling ventilation and air conditioning (VAC) equipment, and monitoring water demand and controlling water pumping, filtering and heating, based on usage patterns and time schedules. Provide the capability to reset local loop control systems for VAC equipment. Monitor and verify operations of heating, cooling and energy delivery systems. Provide the capability to control lighting systems based on time schedules and movement detectors. Provide accessible override controls so that time-based or occupancy-based VAC and lighting controls may be temporarily overridden if necessary. Provide optimum start/stop for VAC systems.

• •

• • • • •

88. The prototype building will be a 375 - 400m² building, with a main conference room which gives useable interior floor-space of 325-350m² after allowing for external walls and interior partitions. This is based on two factors: One is that in the event of a disaster, the building can be used to provide shelter for 100 people, allowing 3.25 – 3.50m²/person (sufficient for everyone to lie down). The other is that the roof space required for a 20 kW thin film solar array is about 375m². These two factors will help to determine the size of the building for design detailing. It is also necessary to design with a level of redundancy; i.e. there must be multiple systems in order to guarantee that the building can continue to function even if one system fails.

3.3.

PROJECT COMPONENTS AND EXPECTED RESULTS

96. The Project includes the following major technical components. Component 1: TECHNICAL DESIGN 97. Assessment and research of industry best practices and new design parameters for the development of zero net energy building system, sub-systems and component

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technologies. The primary outcome will be a regional Ideas Competition in keeping with the guidelines of the International Union of Architects (UIA) and the related lessons learnt. Detailed project scheduling including the complete design through implementation process, building construction, results assessment and dissemination is also included. Expected Outcomes i. Energy audit methodology to model consumption in existing building types and an integrated plan for construction of a prototype zero net energy demonstration building to test and develop building practices, standards, and codes.

Expected Outputs 1.1 Climatically relevant designs and energy efficient technological building solutions, practices, standards, and codes developed by local and regional professionals for testing. 1.2 Detailed assessment of energy demand patterns and associated opportunities for energy savings in buildings in tropical and sub-tropical regions. 1.3 General design of highly innovative core building systems components and solutions. 1.4 Development of preferred standards, and building codes for achieving higher EE in buildings at reasonable cost, specific to the conditions in tropical and subtropical countries. Component 2: RETROFIT SOLUTIONS

98. The comprehensive design, sourcing or creation, assembly and installation of components for the zero net energy prototype smart building. This component will also address improved quality assessment (QA) and quality control (QC) frameworks in the sector as well as a full institutional support program. Expected Outcomes 2a. Advanced retrofit solutions to demonstrate to concerned agencies and stakeholders the economic and environ-mental benefits of retro-fitting in terms of applying energy efficiency (EE) and renewable (RE) technologies in existing buildings.

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2b.

2c.

Demonstration to policy makers, government officials, owners of buildings and houses, architects, and construction companies of the technical feasibility and the environmental and economic benefits of retrofitting existing buildings. Sustainable retro-fitting operations including the availability of affordable financing.

Expected Outputs 2.1 Assessment and identification of most advanced retrofit solutions to increase EE and performance of existing buildings while withstanding anticipated impacts of climate change. 2.2 Identification and retro fitting of a suitable high-profile building for demonstrating the environmental and economic benefits of retrofitting existing buildings. 2.3 Increased awareness among architects, planners, building engineers, and other relevant experts of the benefits of retrofitting and development of a financing mechanism to make retrofitting affordable. Component 3: ZERO-NET ENERGY DEMONSTRATION BUILDING 99. Expected Outcomes 3a. Demonstration building including assembled building components /modules that demonstrate to policy makers, government officials, home owners and buyers, architects, and construction companies the feasibility and environmental benefits of a zero net energy building. 3b. Efficient operation and maintenance of the zero net energy demonstration building and establishment of permanent learning process to develop more advanced EE and RE applications and increase EE and the use of RE in the future. Increased investments in more energy efficient lighting, heating, and cooling solutions in new buildings and sustainable market transformation to net zero emission buildings.

3c.

3.1

Expected Outputs Detailed design and installation and construction of integrated technological solutions and associated building components to (i) test building practices, standards, and codes; and (ii) develop energy efficiency ratings for components and integrated combinations/solutions.

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3.2

Continuous assessment of the performance of the building and subsystems and development of EE and resource-use benchmarks and performance levels. Increased awareness among architects, planners, building engineers, and other relevant experts of the advanced building technologies to increase EE and the use of RE in buildings and development of suitable financing mechanisms.

3.3

Component 4: POLICY AND REGULATORY FRAMEWORK 100. In line with the United Nations 'Sustainable Energy for All' Initiative, which will be launched on 31 July 2012, the Government has now assigned a high priority to provide universal access to electricity, enhance energy efficiency, and increase the share of renewables in the local energy mix. The overall goal is to reduce the cost of energy, increase energy security, and resolve the energy crisis and thus achieve the objectives of its Energy Policy by 2030. The Government’s plans will revitalize progress in Jamaica towards greater energy efficiency. New building codes, which would have increased energy efficiency in the built environment, were to have been promulgated in 2011, but momentum was lost as a result of a national security crisis in 2010, followed by a general election and a change of government, so the revised building codes are yet to be approved. However, a new bi-partisan approach with regard to the national energy policy is expected to resolve the present lack of adequate progress. In addition, the existing draft building codes were the result of a separate policy initiative; they were not seen as an essential component of a national energy policy but now planning, zoning, and building policies are now seen as being vital components of an overall energy strategy. The Project is therefore extremely timely since as soon as it has established proof of concept, the prototype net-zero energy building will form the centerpiece of the Government’s new energy strategy and subsequently, it will facilitate the amendments of the existing draft building codes to mandate the new standards required across Jamaica. Thus the main goal is that a new policy and regulatory framework will be adopted by the end of the Project. This will result in a substantial upgrade of Jamaican and Caribbean building practices, policies and standards as well as raising awareness and influencing the market.

Expected Outcomes 4a. New national regulations and plan for retrofitting of all suitable existing buildings and comprehensive framework for zero net emission buildings including amendments of the existing draft building codes to mandate the new standards required across Jamaica. 4b. Designation of regional or extra-regional testing facility to promote enforcement of EE standards for buildings in the region.

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Expected Outputs 4.1 Review of existing regulations and practices for retrofitting of existing buildings and identification of key policy options to ensure retrofitting of all suitable buildings. 4.2 Making policy-makers fully aware of substantial improvement in the energy performance of buildings and corresponding building codes and regulations. Development of national quality super-vision systems and strengthening of testing facilities. Assessment of existing testing facilities, consultations, and preparation of framework agreements.

4.3

4.4

Component 5 – DISSEMINATION OF INFORMATION 101. The dissemination of lessons learned, mainstreaming EE design solutions and technologies and improved building codes and standards. This will include regional public awareness campaigns, training, workshops, publicity, awareness raising and stakeholder involvement. Expected Outcomes 5a. Environmental and economic benefits of the Project are widely understood in Jamaica and other areas with similar climatic conditions.

Expected Outputs 5.1 Preparation of education and training pro- grams and media campaigns for Jamaica and the Caribbean region. 5.2 Establishment of the demonstration retrofit building and the zero-emission building to serve as information dissemination points. Development of procedures for sharing information with Caribbean nations and other (sub) tropical regions. Cost/benefits analysis and preparation of financial and economic evaluation models.

5.3 5.4

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3.4.

INTERVENTION LOGIC AND KEY ASSUMPTIONS
Indicators • Reduced CO2 emissions (tCO2/capita) • Reduced energy consumption per capita • Reduced energy intensity in economy • Public and private sector adopt RE and EE best practices from the prototype. • Higher standards incorporated in Energy Codes • Government support for adoption of higher standards in building codes. • Number of professionals that participate in the Ideas Competition. Sources of Verification • Project reports • Site visits • Surveys & Audits • Policy assessment Assumptions • Government adopts necessary regulatory framework. • Compliance with the EE code & standards & RE regulations. • The project secures the support of professionals and developers for EE standards and code and for RE

Intervention Logic Project Objective: To demonstrate far higher standards of EE, RE and environmental sustainability are both possible and desirable in building practices and policies in tropical and sub-tropical regions.

Component 1: Technical Design Assessment and research of industry best practices and new design parameters for the development of zero net energy building system, sub-systems and component technologies

• Project reports • Government gazettes • Results of Ideas Competition for regional professionals

• Government agencies fully cooperate, provide incentives etc. • Market readiness for EE, RE & other environmentally sound building products.

Component 2: Retrofit Solutions For a prototype building that will supply its own energy, operate its own waste treatment facility, water management facility and be built to survive hurricane

• Integration of RE and EE in projects by architects, professionals and builders • Market uptake, i.e. number of households and businesses using RE and EE technologies

• Project reports • Official government publications • Project files • Survey

• Willingness to change, interest in RE and EE from households, developers, building operators and professionals. • Policy and legislation; support for uptake of similar concepts for

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conditions. . • Continuous further improvement of the building stock via retrofit & new construction. • Project progress reports • Stakeholder & focus group reports

replication elsewhere.

Component 3: Zero-Net Energy Demonstration Building The comprehensive design, sourcing or creation, assembly & installation of components for the prototype smart building. Component 4: Policy and Regulatory Framework

Tracking and assessment of progress and results, from development through to proposed, adopted, and enforcement of a revised policy and regulatory framework.

• The on-going assessment & audit of project activities and supervision of program impact • Legislative texts put in place to empower government institutions • Continuous assessment & audit of project activities with regard to strengthening the policy and regulatory framework and supervised monitorring of project impact

Key stakeholders agree to serve on the Project Advisory Committee. • Political support to establish legal, regulatory and institutional framework • Regional interest and capacity in EE, RE & sustainability projects in the built environment

Component 5: Dissemination of Information The promulgation of lessons learned, mainstreaming EE design solutions and technologies and improved building codes

• Government officials and private entities understand and utilize EE and RE solutions. • Number of awareness campaigns organized • Publication of information booklets on project results and

• Project reports • Guidelines and documentation • Training session reports • Awareness campaign booklets and reports • Publications

• Relevant government agencies willing to take part in training • Public & private decision makers & energy sector actors utilize project results & adopt best practices.

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and standards. Component 6: Project Management

conclusions as to best practices • All targets and milestones are met • Project remains on schedule & is completed on time and within budget.

• Project reports • Project monitoring and evaluation reports • Site visits

3.5.

RISK ANALYSIS AND RISK MANAGEMENT MEASURES
Rating Mitigation The GOJ has already made a number of significant efforts to address EE and RE legislation including new energy policies as part of the national development plan. Progress has been slow, but these efforts will now be reinforced and supported by the project. Key institutional stakeholders have already been recruited and will be kept fully informed of every aspect of the project. UWI and UTECH are developing additional capacity to supplement institutional support if necessary. Incentives and cost benefit analyses will be rapidly mainstreamed to encourage players in the built environment to commit to invest in EE and RE technologies. Key agencies and financial institutions will be briefed as to the risks of an energy crisis, and will be recruited to serve as long-term allies of the project. The Energy Sector Policies as well as the new EE building code will eventually make compliance with lessons learned mandatory, market incentives will be developed to supplement regulations. Any additional technical support necessary will be provided throughout the project.

Risk Description Political risk The political willingness to implement significant changes with regard to energy efficiency technologies, building policies or climate adaptation is too weak to support the lessons of the project. Institutional risk Involvement from the key ministries falters during the project, creating a risk that lessons learned will not be fully institutionalised. Economic and financial risk An economic recession (especially if compounded with a political crisis and failed policy responses) or a period of falling oil prices make investments in renewable energy and energy efficiency less attractive for private partners. Technical risk The public agencies or building sector interests involved in the technical activities fail to adopt the lessons learned from the prototype building.

Low

Low

Medium

Low

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Organizational risk There is insufficient technical and managerial capacity to coordinate the project within the ISD PMU. Environmental and social risk The prototype building is carried out the necessary environmental and social safeguards. Very Low Low The ISD has adequate capacity, experience and the means to ensure the project's delivery and coordination. This will be supported and monitored by UNEP, who also have significant capacity in this regard. The project is of a relatively small scale and located on the UWI campus, where it will be very closely monitored. In addition, all construction in Jamaica must meet the environmental guidelines set by NEPA.

3.6. 102.

CONSISTENCY WITH NATIONAL PRIORITIES OR PLANS In 2006, the Government of Jamaica mandated the Planning Institute of Jamaica (PIOJ) to lead the preparation of a comprehensive long-term National Development Plan which would enable Jamaica to achieve developed country status by 2030. The development of the Plan began in January 2007, and thirty-one Task Forces (TFs) including the Energy Task Force were then established. The TFs, each of which comprised a wide array of professionals with sector-specific knowledge and experience, represented the sectors and areas seen as critical to the achievement of the national goals. The TFs were charged with the responsibility for developing the relevant long-term sector plans. The Energy Task Force commenced the plan preparation exercise in April 2007, leading to the completion and submission of a first draft report for the long-term development of the energy sector in Jamaica. Following review and stakeholder consultation, and preparation of an action plan for the sector, the Energy Sector Plan for Vision 2030 Jamaica was completed in 2009. This Sector Plan for Energy is one of the strategic priority areas of the Vision 2030 Jamaica - National Development Plan. It is one of thirty-one sector plans that form the foundation for Vision 2030 Jamaica – a 21-year plan based on a vision of making ‘Jamaica the place of choice to live, work, raise families, and do business,’ and on the principle of putting the Jamaican people at the centre of the process of transformation. Under the Energy Sector Plan, Jamaica will reduce its dependence on imported oil, and create a modern, efficient, diversified and environmentally sustainable energy sector. The specific goals for the sector are that it should provide affordable and accessible energy supplies, ensure long-term energy security; contribute to international competitiveness by reducing the cost of energy in the productive sectors of the economy; and improve the quality of life for citizens.

103.

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104.

Vision 2030 Jamaica – National Development Plan 17 will be implemented through a series of three-yearly Medium Term Socio-Economic Policy Frameworks (MTFs). These are underpinned by a results-based monitoring and evaluation mechanism that establishes specific indicators and targets to measure and track performance. The thirty-one sector plans developed by the Task Forces provide the framework for implementation at the sectoral level, and also represent the basis on which the various MTFs will be developed. The Plan is to be implemented at the sectoral level by ministries, departments and agencies (MDAs) of Government as well as civil society groups (including NGOs, CBOs, the private sector and International Development Partners).

105.

The project will address the National Development Plan and Medium Term SocioEconomic Policy Framework 2009-2012 (MTF), Section B of the National Priorities/Plans section of the Vision 2030. Specifically, the project will address the protection of Jamaica’s environment, which is one of the four overarching policy goals. It will also address Outcome 14: Hazard Risk Reduction and Adaptation to Climate Change, Goal 3 of the MTF, which is to ensure Jamaica’s prosperity, and one key national outcome, which is energy security and efficiency. This project will also address the goals under the Jamaica Energy Policy Green Paper 2006–2020, which identified energy conservation and efficiency as strategic objectives to ensure the country's energy security and cost effective use of energy sources. This project will address the National Energy Conservation and Efficiency Policy for 2008-2022, which was released by the Ministry of Energy in 2008. This policy focuses on public and private sectors (households, industrial, commercial, tourism) transport, codes and standards, renewable energy technology, the institutional framework and human resource development. Section 3.15, titled ‘Establishing the building code and energy efficiency codes as mandatory standards’ is particularly pertinent, as this notes that it is much more cost-effective to insert ECE features at the design stage of a system or a facility than to try to retroactively upgrade energy performance after construction. This project will also support the government’s policy goal of making the new national building and energy efficiency codes mandatory standards for new construction, as well as for the upgrading of existing buildings. This is based on the energy efficiency building code that was developed by the Jamaica Bureau of Standards in 1990, but was not promulgated or made mandatory. However, this energy code has now been reviewed and updated by the Jamaica Institution of Engineers (JIE) and the Jamaica Bureau of Standards; it is now ready for promulgation and

106.

107.

108.

17

Vision 2030 – National Development Plan, Planning Institute of Jamaica, www.vision2030.gov.jm 2009.

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incorporation as a mandatory building code. At the time of the submission of this application, the gazette notices for the following nine (9) Application Documents have been submitted by the Bureau of Standards Jamaica (BOSJ): including the Jamaica Application Document for the International Energy Conservation Code (IECC). The New Building Act, which will be promulgated in 2011, will make compliance with these codes mandatory. It is estimated that the codes will give a 40% improvement in energy efficiency compared to current levels, which are relatively modest. This project will establish the extent to which standards can be raised further in future. 109. The fledgling Jamaica Green Building Council (JGBC) is being established in accordance with the standards of the World Green Building Council (WGBC) to bring together high calibre, influential and impartial built environment leaders and professionals to establish, monitor and guide government regulation as it relates to development standards in Jamaica. The JGBC will promote the adaption and integration of current standards such as the 2012 International Green Construction Code (IgCC) of the International Code Council (ICC). The IgCC is the first model code that includes sustainability measures for the entire construction project and its site — from design through construction, certificate of occupancy and beyond. The new code is expected to make buildings more efficient, reduce waste, and have a positive impact on health, safety and community welfare. This project will greatly support and demonstrate the potential and actual benefits of sustainable construction to both practitioners and government authorities. The Government Green Paper 02/2012 Establishing An Environmental Regulatory Authority outlines key reforms that are intended to remove the underlying cause of long-running development failures by giving Jamaica a modern, fully integrated planning and regulatory system. This is intended to deliver multiple goals; robust protection for sensitive or vulnerable sites, rapid approval for developments in nonsensitive sites, a more transparent and risk-free environment for developers, and a more focused and efficient use of government resources. One of the key steps recommended is to establish an Environmental Regulatory Authority (ERA), and to transfer NEPA’s responsibility for environmental monitoring and enforcement to this new agency. In line with the United Nations 'Sustainable Energy for All' Initiative, which will be launched on 31 July 2012, the Government has now assigned a high priority to provide universal access to electricity, enhance energy efficiency, and increase the share of renewables in the local energy mix. The overall goal is to reduce the cost of energy, increase energy security, and resolve the energy crisis and thus achieve the objectives of its Energy Policy by 2030. The Government’s plans will revitalize progress in Jamaica towards greater energy efficiency. New building codes, which would have increased energy efficiency in the built environment, were to have been promulgated in 2011, but momentum was lost as a result of a national security crisis in 2010, followed by a general election and a change of government, so the revised building codes are yet to be approved. However, a new bi-partisan approach with regard to the national energy policy is expected to resolve the present lack of adequate progress. In 57

110.

111.

Project Document

addition, the existing draft building codes were the result of a separate policy initiative; they were not seen as an essential component of a national energy policy but now planning, zoning, and building policies are now seen as being vital components of an overall energy strategy. The Project is therefore extremely timely since as soon as it has established proof of concept, the prototype net-zero energy building will form the centerpiece of the Government’s new energy strategy and subsequently, it will facilitate the amendments of the existing draft building codes to mandate the new standards required across Jamaica. Thus one of the main goals is that a new policy and regulatory framework will be adopted by the end of the Project. This will result in a substantial upgrade of Jamaican and Caribbean building practices, policies and standards as well as raising awareness and influencing the market.

112.

At the Twenty-Third Inter-Sessional Meeting of the Conference of Head’s of Government of the Caribbean Community (CARICOM), 8 – 9 March, 2012, in Paramaribo, Suriname, the Heads approved the “Implementation Plan for the Regional Framework for Achieving Development Resilient to Climate Change” which defines the Region’s strategic approach for coping with climate change for the period 2011 – 2021. This project will provide valuable research as well as testing through retrofit solutions and the demonstration building that will assist in establishing development standards across the Caribbean Region. The Goals and Outcomes developed for the energy sector are as follows: 18
GOALS OUTCOMES 1.0:- Jamaicans use energy wisely and 1.1:- Increased awareness of and informed aggressively pursue opportunities for behaviour by large and small consumers on conservation and efficiency energy issues 2.0:- Jamaica has a modernized and expanded energy infrastructure that enhances energy generation capacity and ensures that energy supplies are safely, reliably, and affordably transported to homes, communities and the productive sectors on a sustainable basis 2.1:- Implementation of least economic cost solutions for the supply of energy, including source, conversion and distribution 2.2:- Modernized, reliable and efficient energy infrastructure and services in productive sectors 2.3:- Implementation of appropriate, safe and reliable energy distribution systems

3.0:- Jamaica realizes its energy resource 3.1:- Development of appropriate renewable potential through the development of energy sources renewable energy sources and enhances its international competitiveness and energy security whilst reducing its carbon footprint
18

Vision 2030 – Energy Sector Plan. Planning Institute of Jamaica www.vision2030.gov.jm 2009.

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4.0:- Jamaica’s energy supply is secure and sufficient to support long-term economic and social development and environmental sustainability 5.0:- Jamaica has a well-defined and established governance, institutional, legal and regulatory framework for the energy sector, that facilitates stakeholder involvement and engagement 6.0:- Government ministries and agencies are a model/leader in energy conservation and environmental stewardship in Jamaica 7.0:- Jamaica’s industry structures embrace eco-efficiency for advancing international competitiveness, and move toward building a green economy

4.1:- Diversified energy sources by type and geographic location. 4.2:- Identification and development of indigenous non-renewable sources of energy 4.3:- Application of emerging appropriate energy technologies 5.1:- Establishment of policy statements, enforceable laws, regulations and institutions that create equitable and transparent opportunities for all stakeholders in the energy sector 6.1:- Effective energy conservation and environmental stewardship by Government ministries and agencies 7.1:- Internationally competitive industries and firms that apply eco-efficiency and contribute to the creation of a green economy 7.2:- Reduction in emissions, effluents and leaks from the energy sector

The proposal is therefore highly consistent with national priorities and plans. 3.7 113. INCREMENTAL COST REASONING The built environment creates, directly and indirectly, about one-third of the world's total energy demand. The linked problems of climate change and energy security cannot therefore be solved without a significant improvement in the performance of buildings. The greatest need for new and more cost-effective technological solutions lies in tropical and sub-tropical countries, partly because this includes some of the countries currently experiencing the highest rates of population growth, partly because these regions include some of the countries that will be most vulnerable to climate change, and partly because it is more technically difficult to keep the interior of a building cool and dry in a hot, humid climate than to keep it warm in a cold climate. Levels of energy efficiency in buildings in countries like Jamaica are currently low, as the level of energy productivity in Jamaica itself is only a quarter of the current global average. This means, however, that the building sector has a large untapped potential for positive change, to become far more efficient in terms of resource use, less environmentally intensive, and less costly. However, there are still a range of technological, economic and marketing barriers to widespread uptake. This project will help to resolve those barriers. For example, the project will provide a cost-benefit

114.

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analysis of each energy efficiency option, and explain the pay-back period, so that consumers can make better decisions. 115. Integrated solutions offer greater efficiency gains, while the integration of building and appliance design will allow costs to be factored in to selling prices, thus defragmenting the market place and removing the main financial disincentive to adoption. This is therefore a key mitigating opportunity for GHG emissions. These lessons will be disseminated across Jamaica, the Caribbean and beyond, to other tropical and subtropical regions, thus achieving a wide impact and a significant multiplier for the investment of GEF and UNEP resources.

3.8 116.

SUSTAINABILITY The sustainability of the project depends on several institutional, technical and financial factors including institutional routing, strong technical capacity building and the development of business opportunities in EE and RE. These factors, which will ensure the project's sustainability are highlighted as follows: - Institutional 109. As outlined in the context statement, the ISD and the UWI are already strongly committed to promoting energy efficiency, renewable energy and climate change adaptation and mitigation strategies. They already possess the institutional capacity to carry the lessons learned forward. The Institute for Sustainable Energy (ISE) at the University of Technology will bring additional institutional capacity for pushing the project agenda forward. The Government is already committed to increasing national energy efficiency and productivity. This project will reinforce ongoing activities and plans and bring together all key agencies to strengthen the national renewable energy and energy efficiency policy as well as establish a cross-sectoral policy consultation platform in the framework of the implementation of the advanced prototype building. Buy-in from the Government is extremely strong, with the full participation of all the relevant Ministries and government agencies. - Technical 110. The Project consists of both a capacity building initiative and an actual demonstration project. The construction component adds an added, real dimension to the research. Training provided at all stakeholder levels will ensure that, after the end of the Project, the project objectives and benefits will be owned and internalized by stakeholders and the local construction industry will have the capacity to sustain the components developed under the project objectives. The focus of the project will be on innovations that can be readily disseminated into the

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marketplace. The Jamaican Institute of Architects (JIA), the Incorporated Masterbuilders Association of Jamaica (IMAJ) and the Jamaica Institution of Engineers (JIE) have all been recruited to the Advisory Committee to ensure that there is both strong dissemination and better integration of the building chain. 111. The Project will develop several technical tools, including support to the energy efficient building code (EEBC) to be promulgated in 2012, standards for domestic solar water heaters, water management systems, guidelines and technical specifications for the application of RE sources. The technical sustainability will also be ensured by technology transfer through the dissemination throughout the Caribbean region by the implementation agency and all stakeholders. One of the main functions of the advanced prototype building will be to act as a focal point on renewable energy sources and energy efficiency in order to foster the transfer of the lessons learned into policy and practice to the region and beyond. - Financial. 112. The cost of the prototype is relatively high, partly because it is a prototype, and partly because it is not just a Net Zero Energy building. It will also be designed to be a multi-purpose, multi-access building, with water harvesting, purification and recycling, and will also serve as a hurricane shelter. However, the costs of construction are in line with building costs in Jamaica. Demonstrating the commercial benefits and developing bankable business plans will resolve the problem of the narrow vision and short-term horizons generally adopted by banks, building societies and financing institutions towards energy efficiency investment loans. Awareness campaigns will be conducted on both the construction and user side to catalyze the demand and achieve a significant and long-term market transformation process, which will sustain the demand and supply dynamics of the energy efficient products, building components and processes in the post-project period. The project intends to create the framework for legislative support and financial incentives to RE and EE in Jamaica and the Caribbean.

113.

Overall, the project deliverables will be directly put to use in the development of the standards, guidelines and construction methods as well as in the development of other similar projects. The sustainability of the project results will be ensured by involving all key national stakeholders, supporting a national initiative and developing the tools identified as necessary to stimulate and drive the market.

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3.9 REPLICATION 114. The replication of the best practices, lessons learnt and emerging technologies from the prototype building will be replicated through key stakeholders at in the policy, academic and industry communities. Some areas for replication include: - Policy: The Centre for Renewable Energy (CERE) will lead the implementation of additional pilot projects to test the application of the draft Energy Policies. The standards set by the advanced prototype building will inform national EE and RE projects. The Office of Disaster Preparedness and Emergency Management (ODPEM) is in the process of setting new standards and requirements for the construction emergency shelters island wide, where the lessons learned can also be replicated. - Academic: The Institute for Sustainable Development (ISD) at the University of the West Indies (UWI) is involved in a number of energy efficiency, climate change mitigation and adaptation projects which will provide the opportunity to replicate the research and modelling done for the advanced prototype building. University of Technology’s (UTECH) Institute for Sustainable Energy will also apply the lessons from this breakthrough project in its long term teaching and research programmes. - Industry: The Bureau of Standards Jamaica (BSJ) and the Jamaica Institution of Engineers (JIE) have been championing the development of new building codes and improved national development standards. The upgraded standards and legislation will stimulate the market, and the building industry in Jamaica and the Caribbean will then find a receptive market for opportunities for replication via new construction projects as well as retrofit elements. 115. During the course of the implementation of the project, the stakeholder group and the PMU, with technical assistance from UNEP, will identify other opportunities for rolling out and replicating the lessons learned in the Project.

3.10 116.

PUBLIC AWARENESS, COMMUNICATIONS AND MAINSTREAMING STRATEGY The main strength of the Project relies on the strong institutional momentum in Jamaica, the regional strength of the University of the West Indies and the participatory approach used by UNEP during the preparation of the project. The Project will utilize a strongly participatory approach, with regular communications with all the relevant decision makers (via the Project Advisory Committee, and its

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membership of professionals, government and international partners). The project is strongly focused on national and regional capacity building, so a core component of the Project is to develop and implement a communication and results dissemination strategy, aimed at a number of target audiences, to ensure that the maximum benefit and impact. The Project Management Unit (PMU) will be responsible for the development of the strategy and implementation plan and will undertake the following activities: • The progress and results of the activities will be regularly available through regular reports on the project website. Periodic monitoring reports will be used to prepare memos for decision makers and discussion during Project Advisory Committee meetings. Thematic reports will also be prepared and disseminated to reach out to scientific and professional audiences. A dedicated website will be launched and used as communication tool with the public in general. The website will host publications and tools developed under the project. A publication addressing the best practices and lessons learned will be produced, ensuring that all lessons can be applied in the implementation of the SNAT 2030.

117.

Existing websites and publications of key regional agencies like CCCCC (5Cs) and CARILEC as well as the national media (newspapers, TV, and radio) will be utilized in the awareness and communication strategy.

3.11 118.

ENVIRONMENTAL AND SOCIAL SAFEGUARDS To determine the environmental and social impacts of the project, an environmental and social impacts assessment will be carried out to cover the following main points: water quality and groundwater protection, biodiversity protection, waste treatment, adaptation to climate and natural risks (earthquakes, floods, droughts and storms), the relocation and integration in the town planning of local communities, the influence on employment and gender equality. UNEP will ensure that each step of the environmental and social aspects integration in the project is strictly in line with environmental and social safeguard principles and the Millennium Development Goals (MGDs) for poverty reduction. FRAMEWORK AND IMPLEMENTATION

UN

Section 4: INSTITUTIONAL ARRANGEMENTS 119.

UWI’s Mona campus will provide the institutional basis for the development of the Project through the ISD. The implementation arrangement is described as follows:

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- Project Advisory Committee (PAC). 120. The PAC will be chaired by the ISD, and will consist of a core group of key stakeholders and project partners. The PAC will oversee the Project, and track progress towards the objectives. The PAC will ensure operational coordination among the different government agencies, professional bodies, donors and other interests working in the same sector. The PAC will lead the dissemination and institutionalization of the lessons learned under the Project. The PAC will be comprised as follows: • • • • • • • • • • • • • • • Ministry for Water, Land, Environment, and Climate Change (MWLECC) 19 Ministry of Science, Technology, Energy, and Mining (MSTEM) Ministry of Transport, Works, and Housing (MTWH) Caribbean Academy of Sciences, Jamaica (CASJ) Jamaica Institution of Engineers (JIE) Jamaica Public Service Company Ltd (JPSCo) Office of Disaster Preparedness and Emergency Management (ODPEM) Jamaica Institution of Architects (JIA) The Institute of Sustainable Energy, University of Technology, Jamaica (UTech) The Scientific Research Council (SRC) Jamaica Hotel and Tourist Association (JHTA) GEF Focal Point - The Ministry of Water, Land, Environment and Climate Change (MWLECC) Inter-American Development Bank (IDB) Incorporated Masterbuilders Association of Jamaica (IMAJ) Bureau of Standards (BoS)

- Project Management Unit (PMU). 121. At the operational level, the Project will be executed by the PMU under ISD. The PMU will be managed by two Coordinators/Directors of Research, a full time Project Manager/Site Supervisor (PM), with a Financial Officer and an Administrative Assistant (AA). The PMU will be based at the project site at UWI’s Mona campus, Kingston, Jamaica. The PMU will be responsible for preparing, monitoring, and updating project work plans, scheduling project activities, recruitment and supervision of consultants 20, technical supervision of project
19 20

Previously named Ministry of Water and Housing (MWH). Draft terms of reference for GEF-financed consultants are in Appendix 10.

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activities, financial planning of expenditures and disbursements of GEF funds, management of the contributions of co-financiers and their use, coordination of project activities, liaison with stakeholders, organization of workshops and other meetings, preparation of training programs in cooperation with consultants, and financial and progress reporting. The PMU will report to ISD and UNEP/DTIE. UNEP/DTIE will provide advice and guidance as may be required. A project execution chart is shown below. Figure 5: Implementation Arrangements
Project Steering Committee UWI, PAC, GEF Focal Point, UNEP/DTIE

PAC CERE, JPSCo, OPDEM, UTech, SRC, JHTA, MWLECC, IDB, IMAJ, JGBC, MTWH, MSTEM JGBC, MTWH, MSTEM

PMU under ISD Coordinators/Directors of Research, Project Manager/Site Supervisor, Fi i l Offi Ad i A i

UNEP/DTIE Building Codes Group BoS, JGBC, JIA, JIE, ERA

Component 1 Subcontractors Consultants Technical Design

Component 2 Subcontractors/ Consultants Retrofit Solutions

Component 3 Subcontractors/ Consultants Zero-Net Energy Demonstration Building

Component 4 Subcontractors/ Consultants Policy and Regulatory Framework

Component 5 Subcontractors/ Consultants Dissemination of Information

Section 5: STAKEHOLDER PARTICIPATION 122. A number of core stakeholders have been identified for participation in the project to “Promote Energy Efficiency and Renewable Energy in Buildings in Jamaica”. They include 65

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government ministries and their agencies, academic institutions, professional groups and construction industry interests. The following is a graphic summary of the main state ministries and agencies as detailed in Section 2.5 - Stakeholder Mapping and Analysis:
Office of the Prime Minister

PIOJ

ODPEM

Met Services

MSTEM

Ministry of Industry & Commerce Bureau of Standards

MWLECC

Ministry of Education

Petroleum Corporation of Jamaica Centre of Excellence

Jamaica Public Service Co.

Housing Agency of Jamaica

University of the West Indies

Scientific Research Council

Water Resources Authority

University of Technology

National Water Commission

NEPA

Figure 6: Stakeholders Summary

123. The core group have already been recruited and have agreed to serve on the PAC. The coordination and management mechanisms will include: - General Stakeholder Meetings: These have already been initiated under the PPG and will continue on a quarterly basis for the duration of the project. The meetings will be used to gain timely feedback on the project's progress and respond to any current trends or developments related to the project (for example if there are changes in local

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industry rates, policy shifts etc). Meeting notes will be kept for the project record and further on-going dissemination activities, and posted on a project blog. - Project Advisory Committee: The key stakeholders have been identified and have agreed to serve on the advisory committee for the project. This committee will commence regular monthly meetings as soon as the project funds are disbursed and the main project activities begin. The monthly project progress reports of the Project Management Unit will be submitted and reviewed at these meetings. Minutes, reports and recommendations from these meetings will be recorded as part of the final project documentation. 124. Through the project stakeholders, the PMU will be able to access current technical information and best practices, identify training prospects, and disseminate information and solicit feedback through the local, regional and international networks of the stakeholders.

Section 6: MONITORING AND EVALUATION PLAN 125. The Project will follow UNEP standard monitoring, reporting and evaluation processes and procedures. Substantive and financial project reporting requirements are summarized in Appendix 8. Reporting requirements and templates are an integral part of the UNEP legal instrument, and will be signed by the executing agency and UNEP. The M&E plan of the Project is consistent with the GEF’s Monitoring and Evaluation policy. The Project Results Framework presented in Appendix 4 includes SMART indicators for each expected outcome as well as mid-term and end-of-project targets. These indicators along with the key deliverables and benchmarks included in Appendix 6 will be the main tools for assessing project implementation progress and determining whether the expected project results are being achieved. The means of verification and the costs associated with obtaining the information to track the indicators are summarized in Appendix 7. Other M&E related costs are also presented in the Costed M&E Plan and are fully integrated in the overall project budget. The M&E plan will be reviewed and revised as necessary during the project inception workshop to ensure project stakeholders understand their roles and responsibilities visà-vis project monitoring and evaluation. Indicators and their means of verification may also be fine-tuned at the inception workshop. Day-to-day project monitoring is the responsibility of the project management team but other project partners will have responsibilities to collect specific information to track the indicators. It is the responsibility of the Project Manager to inform UNEP of any delays or difficulties

126.

127.

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faced during implementation so that the appropriate support or corrective measures can be adopted in a timely fashion. 128. The Project Advisory Committee will receive periodic reports on progress and will make recommendations to UNEP concerning the need to revise any aspects of the Results Framework or the M&E plan. Project oversight to ensure that the project meets UNEP and GEF policies and procedures is the responsibility to the Task Manager in UNEP-GEF. The Task Manager will also review the quality of draft project outputs, provide feedback to the project partners, and establish peer review procedures to ensure adequate quality of scientific and technical outputs and publications. At the time of project approval the baseline data is available for national aggregate totals (e.g., energy demand), but there are still gaps with regard to the detailed breakdown across different building types. These baseline data gaps will be addressed during the first year of project implementation. Project supervision will take an adaptive management approach. The Task Manager will develop a project supervision plan at the inception of the project which will be communicated to the project partners during the inception workshop. The emphasis of the Task Manager supervision will be on outcome monitoring but will also include project financial management and implementation monitoring. Progress with regard to the delivery of the expected global environmental benefits will be assessed by the Steering Committee at agreed intervals. Project risks and assumptions will be regularly monitored both by project partners and UNEP. Risk assessment and rating is an integral part of the Project Implementation Review (PIR). The quality of project monitoring and evaluation will also be reviewed and rated as part of the PIR. Key financial parameters will be monitored quarterly to ensure cost-effective use of financial resources. A mid-term management review/evaluation will take place during the second quarter of 2014 as indicated in the project milestones. The review will include all parameters recommended by the GEF Evaluation Office for terminal evaluations and will verify information gathered through the GEF tracking tools, as relevant. The review will be carried out using a participatory approach whereby parties that may benefit or be affected by the project will be consulted. Such parties were identified during the stakeholder analysis (see section 2.5 of the project document). The project Advisory Committee will participate in the mid-term review and develop a management response to the evaluation recommendations along with an implementation plan. It is the responsibility of the UNEP Task Manager to monitor whether the agreed recommendations are being implemented.

129.

130.

131.

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132.

An independent terminal evaluation will take place at the end of project implementation. The Evaluation and Oversight Unit (EOU) of UNEP will manage the terminal evaluation process. A review of the quality of the evaluation report will be done by EOU and submitted along with the report to the GEF Evaluation Office not later than six months after the completion of the evaluation. The standard terms of reference for the terminal evaluation are included in Appendix 9. These will be adjusted to the special needs of the project. The summary M&E plan is in Table 2 below.

Table 2: Summary M&E Plan
M&E Activity Progress and Financial Reports Description - Part of UNEP procedures for project monitoring. - Detailed progress reports and financial reports with justification of any change. Responsible Parties - Execution: Project Manager - Support : PMU - Approval: UNEP Timeframe - Two reports for any given year ( 31 July 31 and 31 January) - Last Progress & Financial Reports (Final Reports) within 60 days of project closure - Within first two months of project start-up

Inception Workshop and Report

- Report prepared immediately following the IW. - Includes a detailed AWP for the first year, as well as an overview of AWPs for subsequent years, divided in quarterly timeframes detailing the activities and progress indicators. - Includes the dates of specific field visits, support missions by the GEF focal point in Jamaica or UNEP/DTIE or consultants, as well as timeframes for meetings of the project decision-making structures. - Details project budget, a more detailed narrative of institutional responsibilities, coordinating actions and feedback mechanisms and any monitoring and evaluation requirements. - Detailed technical reports on technical progress and use of new technologies with regard to the development of a zeroemission building

- Execution: PMU - Support: ISD, PAG, and UNEP - Approval: PMU and PSC

Measurement of Means of Verification for Project Progress on

- Execution: STA consultants - Support: ISD - Approval: PMU and PSC

- Throughout the year and prior to APR/PIR and to the definition of annual work plans

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Output and Implementation and Site Reports Annual Project Reports (APR) - Analyzes project performance over the reporting period. - Describes constraints experienced in the progress towards results and the reasons - Describes the annual work program (AWP) and the detailed budget for activities implemented. - Draws lessons and makes clear recommendations for future orientation in addressing the key problems in the lack of progress. - Status and progress reports describing project activities implementation status, use of financial resources, and overall progress with regard to development of a zero emission building - Annual monitoring process mandated by the GEF. This is an essential management and monitoring tool for project managers. - Prepared in collaboration with UNEP Coordination and government counterparts within a year of project start. - The PIR is discussed during the Tripartite Project Review meeting and approved by the government, GEF, and UNEP. - Highest policy-level meeting of the parties directly involved in project implementation. - The project team will prepare and submit an Annual Project Report (APR) to UNEP at least two weeks prior to the tripartite meeting for its review and comments. - Determines progress being made towards the achievement of outcomes and identifies course corrections if needed. - Focuses on the effectiveness, efficiency and timeliness of project implementation; - Execution: STA consultants and PMU - Support: UNEP - Approval: UNEP, PA, and PSC - Annually

Periodic Status and Progress Reports

- Execution: PMU and/or STA consultants - Support: ISD - Approval: UNEP - Execution: PMU and ISD - Support: PAG and UNEP - Approval: PSC and Tripartite Meeting

- Quarterly

Project Implementation Review (PIR)

- Annually

Tripartite Review

- Execution: PMU and UNEP - Support: ISD and PAG - Approval: PSC and Tripartite Meeting - Execution: external consultants - Support: PMU, PAG, UNEP, and

- At least once every year upon receipt of the APR

Midterm Evaluation

- At the midpoint of project implementation

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highlights issues requiring decisions and actions; and presents initial lessons learned about project design, implementation and management. Project Terminal Report - Comprehensive report summarizing all activities, achievements, lessons learned, objectives met or not achieved structures and systems implemented, etc. - Lays out recommendations for any further steps that may need to be taken to ensure the sustainability and replication of project activities. - The project team will draft and submit a Project Terminal Report to the UNEP, at least two weeks prior to the tripartite meeting for tits review and comments. - The tripartite meeting will consider the implementation of the project as a whole with a focus on the achievement of its stated objectives and contribution to the broader environmental objective. - Decides whether any action is needed to achieve the sustainability of project results. - Draws lessons to be captured into other projects. - Focuses on the same issues as the midterm evaluation. - Looks at the impacts and sustainability of the results, including the contribution to capacity development and the achievement of global environmental goals.

ISD - Approval: PSC

- Execution: PMU - Support: PMU, PAG, UNEP, and ISD Government - Approval: PSC

- At least three months of project implementation

Terminal Tripartite Review

- Execution PMU and UNEP - Support: ISD and PAG - Approval: PSC and Tripartite Meeting

- Last month prior to project closure

Final External Evaluation

- Execution: external consultants - Support: PMU, PAG, UNEP, and ISD - Approval: PSC

- Three months prior to the Terminal Tripartite Meeting

133.

The GEF tracking tools are attached as Appendix 15. These will be updated at midterm and at the end of the project and will be made available to the GEF Secretariat along with the project PIR report. As mentioned above the mid-term and terminal evaluation will verify the information of the tracking tool.

Section 7: PROJECT FINANCING AND BUDGET 7.1. Overall project budget

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134.

The total cost of the Project is US$7.461 million of which US$2.361 million is being requested from the GEF with the remainder of US$5.1 million being provided as inkind and cash contributions by government organizations and the private sector. The overall project budget is shown in table -- below while the detailed GEF budget is shown in Appendix 1 in accordance with the UNEP budget line format.

Table 3: Overall Project Budget by Component
Project Components GEF Financing (a) Co-Financing (b) Total (US$) (c=a+ b)
(Million US$) 1. Technical Design 2. Retrofit Solutions 3. Zero-Net Energy Demonstration Building 4. Policy and Regulatory Framework 5. Dissemination of Information 6. Project Management Total Project Costs 0.225 0.800 0.800 0.200 0.100 0.236 2.361

%
31 32 32 31 29 32 32

(Million US$) 0.500 1.700 1.700 0.450 0.250 0.500 5,100

%

69 68 68 69 71 68 68

0.725 2.500 2.500 0.650 0.350 0.736 7,461

7.2

Project Co-financing

135.

The co-financing sources as well as the contributions are summarized in table 3 below. See appendix 2 for detailed information about the co-financing in accordance with the UNEP budget line format. Co-financing letters are in Appendix 11.

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Table 4: Summary of Co-financing
Name of Co-financier (source)
Jamaica Public Service Company Office of Disaster Preparedness & Emergency Management Jamaican Institute of Architects Jamaican Institute of Engineers University of Technology of Jamaica Scientific Research Council of Jamaica University of the West Indies Caribbean Academy of Sciences, Jamaica UNEP

Classification
Beneficiary

Type
In-kind

Project (US$)
100,000

%
2.0

Beneficiary

In-kind

100,000

2.0

Beneficiary

In-kind

250,000

4.9

Beneficiary

In-kind

450,000

8.8

Beneficiary

In-kind

750,000

14.7

Beneficiary

In-kind

500,000

9.8

Executing Agency Multilateral Agency Multilateral Agency Multilateral Agency Government

In-kind

1,900,000

37.2

In-kind

500,000

9.8

In-kind

50,000

1.0

Inter-American Development Bank Government of Jamaica Total Co-financing

Cash

400,000

7.8

Cash

100,000 5,100,000

2.0 100.0

7.3

Project cost-effectiveness

135. The goal is to demonstrate the attractiveness of highly cost-effective building energy efficiency solutions, so that they can be implemented in developing economies without the need for subsidies or further financial support. The prototype will be located in Jamaica, but the regional dissemination program will ensure that the effects are replicated and multiplied across the Caribbean, and into other tropical and sub-tropical regions. 73

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136. The potential contribution of the Project is to demonstrate that far more energy and resource-efficient building solutions are possible in tropical and sub-tropical regions, to raise awareness and stimulate market demand for better solutions. A transition to zero net energy buildings would dramatically reduce net carbon emissions from the built environment. 137. The advanced prototype building will have net zero energy demand. This will be achieved in two ways: • Minimizing power demand. This will involve designing the building to make maximum use of solar lighting while minimizing heat gain, utilize shading, air flow cooling and orientation for passive cooling, supported by internal climate control technologies such as absorbent wall coatings for humidity control, solar powered air conditioning and dehumidifiers, with OLED surface lighting and external servers to minimize waste heat, and using active 'smart' building control systems to eliminate the possibility of human error in managing the building’s lighting and temperature. • Utilizing renewable energy technologies. This will involve a biogas methane generator and/or a waste fat and oil diesel generator, and have 40kw installed Building Integrated Photovoltaic Technology (BIPT). 138. The calculations in the remainder of this section use the model set out in GEF/C.33/Inf.18 (2008) Manual for calculating GHG benefits of GEF projects: energy efficiency and renewable energy projects. The baseline data is from a comparable existing university office building adjacent to the site for the new net zero energy building. The existing building currently consumes 50,000 kWh/year of electricity. Jamaica's electricity supply is mostly generated by burning oil, so the power demand of the existing building produces 34.5 metric tons of CO2 per year. The new net zero energy building is designed to operate without any CO2 emissions, so it will reduce CO2 emissions by 34.5 tons of CO2 per annum in comparison to the baseline building, a net saving of 345 tons of CO2 over the first 10 years of operation. 142. The direct impacts of this project include those savings in energy and reduced CO2 emissions that can be directly attributed to the investment made during the project’s implementation period (i.e. four years), including both the demonstration project itself and the investments leveraged during the project’s implementation period, including those houses that will be retrofitted to operate to higher EE standards in that time. However, the largest part of the impact of the project will be indirect and post-project, for three reasons. The first is that the demonstration building will continue to influence the market to increase demand for retrofit solutions. The second is that the relevant Ministries, government agencies and professional organizations will then alter the building standards once proof of concept is established, so that zero net energy/energy plus become the norm for new-build housing developments. The third is that the project itself will only take four years, but the effects and the benefits can be quantified over the subsequent decades. 144. However, the more significant benefit of this project is that the development of the prototype will generate solutions that can be applied in other tropical and sub-tropical

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countries. The combination of feasibility and desirability will accelerate uptake in Jamaica, across the Caribbean and overseas, in other developing countries. 145. In developing countries alone, an investment of $90 billion in energy efficient investments in buildings is expected to generate savings of over $600 billion in avoided energy costs. There is global potential for energy efficiency in buildings, and associated health, safety and economic benefits. An estimated 3.6 billion tons of greenhouse emissions can be avoided through energy efficiency measures in buildings by 2050 at net zero cost, and significantly greater savings at moderate cost.

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Appendices Appendix 1: Appendix 2: Appendix 3: Appendix 4: Appendix 5: Appendix 6: Appendix 7: Appendix 8: Appendix 9: Budget by project components and UNEP budget lines Co-financing by source and UNEP budget lines Incremental cost analysis Results Framework Workplan and timetable Key deliverables and benchmarks Costed M&E plan Summary of reporting requirements and responsibilities Standard Terminal Evaluation TOR

Appendix 10: Draft Terms of Reference for GEF-financed Consultants Appendix 11: Co-financing commitment letters from project partners Appendix 12: Endorsement letters of GEF National Focal Points Appendix 13: Draft procurement plan Appendix 14: Tracking Tools

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