GCF Country Programme for Albania

Developing the capacities
of Albania for an effective
engagement with the
Green Climate Fund
OFFICIAL
COUNTRY
PROGRAMME
FOR ALBANIA

COUNTRY PROGRAMME FOR ALBANIA
2021 - 2025
Prepared in the scope of the GCF Readiness and Preparatory Support Programme:
“Developing the capacities of Albania for an effective engagement with the Green Climate Fund”
The preparation of this document was financially supported by the Green Climate Fund through the
projectof cooperationwiththe Ministryof TourismandEnvironment,implementedinpartnershipwith
UNEP.

Copyright© September2020
Strategic Framework as Country Programme for Albania
Preparedinframeworkof: Developing thecapacitiesof Albania for an effective
engagementwiththeGreen Climate Fund
Ministryof Tourism and Environment
Blvd.Dëshmorëte Kombit,Nr.1,1001 Tiranë,Shqipëri.
e-mail:info@turizmi.gov.al,website:www.turizmi.gov.al
Focal Point: PhD.OrnelaÇuçi,DeputyMinisterof TourismandEnvironment
e-mail:ornela.cuci@turizmi.gov.al
Preparedby: Zana Vokopola(Consultant)
DritanGorica (Consultant)
Urban Research Institute
Tirana,Albania
Supportedby: UnitedNationsEnvironmentProgramme (UNEP) throughGCFReadiness
programme forAlbania
Reviewedby: UnitedNationsEnvironmentProgramme and Ministryof Tourismand
Environmentof Albania
Designed by:xxxxx

TABLEOF CONTENTS
1. BRIEF OVERVIEW OF ALBANIA’S ENGAGEMENT WITH GCF.........................................................................................1
2. COUNTRY CONTEXT..............................................................................................................................................................1
2.1. CLIMATEPROFILE.............................................................................................................................................................2
2.1.1. Observed and projected climate changes..................................................................................................................... 2
2.1.2. Climate change impacts and vulnerabilities ................................................................................................................. 4
2.1.3. Climate related events in Albania................................................................................................................................. 8
2.1.4. Sources of GHG emissions........................................................................................................................................... 10
2.2. DEVELOPMENTPROFILE..................................................................................................................................................15
2.2.1. Macro-economic development................................................................................................................................... 15
3. POLICY, STRATEGY, PLANNING AND INSTITUTIONAL NEEDS ....................................................................................18
3.1 THESTRATEGIC FRAMEWORK RELATED TO CLIMATECHANGERESPONSE.............................................................................18
3.2 ACCESS TO CLIMATEFINANCE..........................................................................................................................................22
3.3 COOPERATION WITH GCF...............................................................................................................................................24
3.3.1. Institutional framework in GCF delivery ..................................................................................................................... 24
3.3.2. Accredited entities operating in Albania and their specific roles................................................................................ 27
3.3.3. Identification of the country’s readiness needs .......................................................................................................... 31
4. MULTI-STAKEHOLDER ENGAGEMENT.............................................................................................................................32
4.1 STAKEHOLDER ENGAGEMENT..........................................................................................................................................32
4.2 STAKEHOLDER CONSULTATION EVENTS ............................................................................................................................32
4.3 PRIORITYPROJECTIDENTIFICATIONPROCESS....................................................................................................................33
4.4 DISCUSSIONS AND RESULTS.............................................................................................................................................34
5. COUNTRY AGENDA AND GCF ENGAGEMENT................................................................................................................34
5.1 SUMMARY OF NATIONAL PRIORITIES IN THECONTEXTOF GCF RESULTAREAS ....................................................................34
5.2 COUNTRY PROJECT/PROGRAMMEPIPELINE......................................................................................................................36
5.3 STRENGTHENING AND ALIGNMENTOF SELECTED PRIORITYPROJECTS THROUGH STAKEHOLDER WORKSHOP SERIES...............38
6. MONITORING AND EVALUATION ....................................................................................................................................53
7. ANNEXES ...............................................................................................................................................................................55
8. REFERENCES..........................................................................................................................................................................70

LIST OF TABLES
TABLE 1:CLIMATE STRESSORS AND CLIMATERISK IN WATER RESOURCES ..................................................................................................5
TABLE 2:CLIMATE STRESSORS AND CLIMATERISK IN AGRICULTURE ..........................................................................................................6
TABLE 3:CLIMATE STRESSORS AND CLIMATERISK IN ECOSYSTEMS............................................................................................................6
TABLE 4:CLIMATE STRESSORS AND CLIMATERISK IN ENERGY ...................................................................................................................7
TABLE 5: THEMAIN DISASTERS AND LOSS STATISTICS IN ALBANIAIN LAST 20 YEARS..................................................................................9
TABLE 6: ANTHROPOGENIC GREENHOUSEGAS EMISSIONS,BY GAS AND SECTOR,2009...........................................................................12
TABLE 7: TOTAL CO2 EMISSIONS (GG CO2),NON-BIOGENIC (SOURCE:INDC 2015).............................................................................14
TABLE 8: MACRO-ECONOMIC INDICATORS OF ALBANIA.........................................................................................................................16
TABLE 9:KEY STRATEGY/POLICYDOCUMENTS.......................................................................................................................................21
TABLE 10:PROJECTS FINANCED BY THEMINISTRY RESPONSIBLEFOR ENVIRONMENTAL ISSUES.................................................................23
TABLE 11:RELATIONSHIPS WITH EXISTING ACCREDITED ENTITIES AND RELEVANT PARTNERS....................................................................28
TABLE 12:POTENTIAL READINESS PROJECTFOR ALBANIA......................................................................................................................31
TABLE 13: NATIONAL PRIORITIES ON CLIMATECHANGEIN GCF RESULTAREAS .......................................................................................35
TABLE 14:SCREENING PARAMETERS FOR RANKING AGAINST GCF INVESTMENT CRITERIA .....................................36
TABLE 15:IDENTIFICATION OF PRIORITYAREAS AND ASSOCIATED GCF RESULTS AREAS ...........................................................................37
TABLE 16:SELECTED PROJECTIDEAS FOR GCF COUNTRY PROGRAMME .................................................................................................41
List of Figures
FIGURE 1:CLIMATECHANGEPROJECTIONS FOR ALBANIA ........................................................................................................................4
FIGURE 2:PRIMARY FUEL MIX IN ALBANIA............................................................................................................................................10
FIGURE 3:GROSS INLAND CONSUMPTION.............................................................................................................................................10
FIGURE 4:CO2 EQ. EMISSIONS FOR THEYEARS 2000,2005 AND 2009 (%) ........................................................................................13
FIGURE 5:ENERGYSECTOR EMISSIONS IN 2012 AND 2030 (GG CO2) (SOURCE:INDC 2015)..............................................................14
FIGURE 6:THEMINISTRIES RESPONSIBLEFOR ADDRESSING CLIMATECHANGEISSUES...............................................................................24
FIGURE 7:NATIONAL AGENCIES RESPONSIBLEFOR ADDRESSING CLIMATECHANGEISSUES.......................................................................25
FIGURE 8:GCF FUNDING AMOUNTBY TARGET ....................................................................................ERROR! BOOKMARK NOTDEFINED.
FIGURE 9: EXAMPLEOF VIRTUAL FLIPCHART EXERCISEIN THESTAKEHOLDER WORKSHOPON THEPRIORITYAREA “ENERGYEFFICIENCYIN
BUILDINGS”.........................................................................................................................................................................40

ACRONYMS
AC AdvisoryCommittee
ADA AustrianDevelopment Agency
ADF AlbanianDevelopment Fund
AE Accredited Entities
BE DRIN Balkans andEurope for Development ofResilience Initiatives
BIMR BiodiversityInformationManagement and Reporting
CBD Conventionon Biological Diversity
CC Climate Change
CCA Climate Change Adaptation
CCAWB Climate Change Adaptation inWestern Balkans
CPF CountryPartnershipFramework
CSO Civil SocietyOrganizations
DAE Direct Accredited Entities
DCM Decisionof Council ofMinisters
DRM Disaster Risk Management
DRR Disaster Risk Reduction
EBRD EuropeanBank for ReconstructionandDevelopment
ECCS Environmental Cross-cuttingStrategy
EE EnergyEfficiency
EEA EnergyEfficiencyAgency
EEF EnergyEfficiencyFund
ERD Economic Relations Division
ERRA Electronic Regional RiskAtlas
ESCO EnergyService Company
ESS EuropeanSocial Survey
EU EuropeanUnion
EUAV EU Aid Volunteers
FAO Food and Agriculture Organization
FDI Foreign Direct Investment
FI Financial Intermediary
GCAP Green CityActionPlan
GCF Green Climate Fund
GDP Gross Domestic Product
GEF GlobalEnvironment Facility
GHG Green House Gas
GIZ Deutsche Gesellschaft für internationaleZusammenarbeit
GNI Gross National Income
GoA Government ofAlbania
HDI HumanDevelopment Index
HPP Hydro Power Plant
ICPC IntegratedCross-sectoral Planfor the Coast
IDC Inclusive Development Centre
IE ImplementingEntities
IFI InternationalFinancial Institution
IFV InternationalMonetaryFund
IGEWE Institute for Geoscience, Energy, Water and Environment
IIE InternationalImplementingEntity
IMF InternationalMonetaryFund
IMWGCC Inter-MinisterialWorkingGroupfor Climate Change
INDC IntendedNationalDetermined Contribution

INSTAT Institute of Statistics
IPA Instrument for Pre-Accession Assistance
IPA-DRAM Programme for Disaster Risk Assessment andMapping
IPCC Intergovernmental Panelon Climate Change
IT InformationTechnology
IWGCC Inter-ministerial Working Groupfor Climate Change
IWRM IntegratedWater Resource Management
ktoe Kilo Tonnesof Oil Equivalent
LEAP Low Emission Analysis Platform
LUCF Land Use Change and Forestry
LULUCF Land Use,Land Use Change andForestry
M&E Monitoring andEvaluation
MARD Ministryof Agriculture andRuralDevelopment
MIE Ministryof Infrastructure and Energy
MRV Monitoring, Reporting and Verification
MTE Ministryof Tourism and Environment
NACE NationalAgencyfor Civil Emergencies
NAMA NationallyAppropriate Mitigation Action
NANR NationalAgencyfor Natural Resources
NAP NationalAction Plan
NAPA NationalAdaptation Programme of Action
NAPM NationalAction Planon Mitigation
NCT NationalCoordinationTeam
NDA NationalDesignatedAuthority
NDC NationalDetermined Contribution
NEEAP NationalEnergyEfficiencyAction Plan
NGO Non-GovernmentalOrganization
NIE NationalImplementingEntity
NSDI NationalStrategyfor Development andIntegration
PEER Performance Environmental Expenditures Review
RASP Rural AssociationSupport Programme
RE Renewable Energy
RES Renewable EnergySources
SAA Stabilization AssociationAgreement
SDG Sustainable Development Goal
SNC Second National Communication
SRES Special Report on EmissionScenarios
SWH Solar, Water, Heating
TAP Trans-Adriatic Pipeline
TNC Third National Communication
ToR Terms of Reference
UN UnitedNations
UNDP UnitedNations Development Programme
UNEP UnitedNations Environment Programme
UNFCCC UnitedNations Framework Convention onClimate Change
URI Urban ResearchInstitute
USAID UnitedStates Agencyfor International Development
WB World Bank
WBG World BankGroup
WHO World HealthOrganization
WRA Water Regulation Authority
WRI-CAIT World Resources Institute Climate Analysis Indicators Tool

0
Executive Summary
This Country Programme and strategic framework has been developed under the aegis of the Green
Climate Fund (GCF) ReadinessandPreparatorySupportProgramme.The projectis entitled“Developing
the capacities of Albania for an effective engagement with the Green Climate Fund”.
The CountryProgramme’skeyobjectiveisfacilitationof the processof engagingstakeholdersandexisting
as well as prospectiveaccreditedentitiesinidentifyingpractical measures thatcanbe taken toimplement
priorityactions supportedbyGCF.Thisshould ultimatelyresultin aparadigmshiftinthe country’sefforts
to reduce emissions and develop climate resilience.
The Programme builds on the ongoing development of climate change and development strategiesin
Albaniaand hasbeen designed inaparticipatorymanner, involvingawide range of stakeholders through
workshopsandface-to-face meetings.The Programme’s developmentwassupervisedbythe NDA andits
coordinating team, which was established as part of the GCF readiness process.
The AlbanianGCFCountryProgramme presentsthe strategicframeworkdesignedtofacilitate the access
of national stakeholderinstitutionsinAlbaniato GCF.Thisdocumenthasbeenpreparedinline with GCF’s
Country Programme Guidelines based on Albania’s general development profile as well as its climate
change mitigation and adaptation objectives, priorities and policies. Individual sectors and their
implicationsforclimate change policy implementationhave beenmappedand elaborated todeepenthe
contextual understanding andtodraw attentiontothe climate change-relatedchallengesAlbania faces.
These broader policy discussions were followed by a detailed description of the country’s experience in
terms of GCF engagement, which included preparations to establish an institutional framework and
strategiesunderlyingthe collaborationwith GCFat the national level underthe directionof the Ministry
of TourismandEnvironmentof Albania.Reference hasalsobeenmade to the driversof countrypriorities,
which reflect the climate-related challenges Albania faces in several sectors.
Thisdocumentprovidesanoverview of the interventions proposedby variousstakeholdersforpotential
funding from GCF. The portfolio of strategic interventions compiles the results of the discussionsof a
country level workshop and includes feedback received from various stakeholders during the Country
Programme’spreparatoryphase.The firstsectionpresents the key featuresof the investmentproposals
based on national mitigation and adaptation priorities and the steps that must be taken by either
accredited entities that have the capacity to implement the programmes or by government institutions
involved in the process.
The final sectionprovides anoutlineof anM&Esystemtotrackthe progress made onthe implementation
of the measures proposed in this document. The Country Programme for Albania on Climate Change
Initiatives and Priorities should be considered a living document i.e. it is subject to updates and
adaptations inaccordance withany changesin national strategy.The CountryProgramme is endorsedby
the Ministryof Tourismand Environmentin itscapacity as the National DesignatedAuthorityof Albania.

1
1. Brief overview of Albania’s engagement with GCF
What is GCF?
The Green Climate Fund (GCF) is a global fund that was established by the United Nations Framework
Convention on Climate Change (UNFCCC) in 2010 to assist developing countries in reducing their
greenhouse gas emissions (GHG) and enhance their ability to respond to climate change. GCF plays a
crucial role inservingthe ParisAgreement,supportingthe goalof keeping the average globaltemperature
rise well below2o
Cbychannellingclimatefinance todevelopingcountries. The Fundfocussesinparticular
on the needs of nations that are highly vulnerable to the impacts of climate change and supports the
implementation of NDCs. GCF uses public investment to stimulate private finance to unlock climate-
friendly investment for low-emission and climate-resilient development.
GCF is accountable to the United Nations and is guided by UNFCCC principles and provisions. The GCF
Board is responsible for the GCF’s governance, and consists equally of 12 developed and 12 developing
countries. The Board is committed to a consensus-based decision making process.
Albania’s engagement with GCF
Albaniaisa developingcountrywitha GDP per capitaof USD 10,000. AlthoughAlbaniahasa low-carbon
economy, the country entered the new era of international climate policy processes when the Albanian
governmentsignedtheParisAgreementon22April 2016 inNew York. The signatories collectively commit
to keeping the rise of global temperature below 2°C above pre-industrial levels.
In 2016, the Ministryof Tourismand Environment(thenthe Ministryof Environment) wasnominatedas
the National DesignatedAuthoritytoserve as the interface between the Albanian governmentand GCF.
The Ministry provides broad strategic oversight of the GCF’s activities in Albania and communicatesthe
country’s priorities for financing low-emission and climate-resilient development.
2. Country context
Geographic location Located in the western part of the Balkan Peninsula, on the eastern
coasts of the Adriatic and Ionian Seas
Land area 28,748 km²,of which27,398 km²are landand 1,350 km² are water.The
lengthof the stateborderis1,094km, of which657kmare landborders,
316 km are sea borders, 48 km are river borders, and 72 km are lake
borders.
Population 2,800,138
Types of climate Albaniahasa subtropical Mediterranean climate,characterizedby mild
and humid winters, hot and dry summers and precipitation
concentrated mainly during the cold half of the year.
GHG emissions profile 8 Mt CO2eq1
or 0.02% of world total
1 Million metrictonnes ofcarbondioxideequivalent.

2
Key emitters Accordingto TNC, the main contributorsof GHG emissions(CO2eq) for
the year 2005 was the energy sector (47.9%), followed by agriculture
(14.26%), industry(11.37%), landuse change and forestry(20.64%) and
waste (6.64%). Inthe energysector,transport accountsforaround 45%
of GHG emissions.
Key climate risks Changessuchas increasingtemperatures, decreasingprecipitationand
a reduction of water resources and arable land.
Vulnerable sectors The most vulnerable area is Albania’s coastal zone, while the most
vulnerablesectorsare waterresources,agriculture,energyandtourism.
NDA Ministry of Tourism and Environment
2.1. Climate profile
2.1.1. Observed and projected climate changes
Albaniais locatedintheWesternBalkan regionandisone of the mostvulnerablecountriestothe impacts
of climate change.The future climate scenariosforAlbaniaanticipate changes,suchas increasingtrends
in annual and seasonal temperatures, both in terms of minimum and maximum values, decreased
precipitation and a reduction of water resources and arable land. According to the Third National
Communication (TNC) to UNFCCC, by the summer of 2050, the coastal zone is unlikely to experience
average temperatures below 25°C;by2100,average temperaturesof upto30°C are expected todominate
all coastal area. In addition,all scenariosprojecta likelydecrease inseasonal precipitation inall seasons
compared to 1990 values.
Albania’s climate is driven by the country’s topography,with temperatures and precipitation varying by
altitude anddistancefromthe sea. Seventypercentof Albania’sterritoryismountainouswithanaverage
altitude of 700 m above sealevel andamaximumaltitude of 2,753 m in the easternarea(MountKorab).
Albania’s geographic positiondeterminesits Mediterranean climate, which is characterizedby mild and
humid winters followed by hot and dry summers. The majority of the country’s rainfall occurs between
November and March, with lower amounts during the growing season, from June to September.
Specific climatic conditions differ considerably depending on region:
 Some of the regions concentrated in the north, west and southwest regions of Albania are
characterizedby highamounts of rainfall,withanannual average of 1,430 mm. The spatial and
seasonal distributionof rainfall varies,however;mostof the rainfalloccursduringthe colderhalf
of the year (70 per cent). The most humid areas are the Albanian Alps in the North (Koder
Shengjergj with2,935mmand Bogawith2,883 mmof annual precipitation) andKurveleshi inthe
South (Nivica with 2,204 mm of annual precipitation);
 Snowfallsoccur inmountainousregions,i.e. inthe AlbanianAlps,andthe central and southern
mountainous regions. Snow is rare in the Western Lowlands, particularly in the southwestern
part of the Albanian coast;

3
 Coastal plains have a strong maritime influence, which weakens eastwards and landwards,
causing lower temperatures and reduced precipitation;
The precipitation regime is a key factor for electricity production nationwide, as hydroelectric power
plants produce the bulk of the country’s electricity. Precipitation is also a crucial factor for agriculture,
one of Albania’s most important economic sectors.
Albaniaisadisaster-pronecountryandisexposedto numeroushazards,includinggeologic(earthquakes,
rock fallsand landslides) andhydro-meteorological (floodingandtorrential rains,droughts,snowstorms,
high snowfall and windstorms). There is evidence that the rate of disaster events has increased in the
period 1993–2013.
According to the First and Second National Communications to UNFCCC, simulations based on several
IPCC models with a baseline period of 1961–1990 indicate the following forecasts for temperatures and
precipitation:
 The expected annual increase in temperature could be up to 1.1°C by 2027 and 1.8°C by 2050,
with temperatures expected to increase during all seasons;
 Precipitationisestimatedto decrease with a rate of around 4 per cent by 2027 and 6.1 per cent
by 2050. The range of total annual precipitation by2050 isexpectedtovarybetween570mm (in
the South-East) and 2,100 mm (in the South-West). The maximum value is estimated at
approximately 2,650–2,850 mm across the alpine zones. Due to the anticipated higher average
temperatures in winter, more precipitation is likely to fall in the form of rain rather than snow,
which will increase soil moisture together with soil erosion and run-off. Episodes of intensive
rain are alsopredictedto rise.The numberof dayswith heavyprecipitation(24hoursmaximum)
comparedto the 1961–1990 average islikelytoincrease by1–2 days by 2027 and by2–3 daysby
2050;
 Overall, the changes in seasonal temperature and precipitation suggest a trend towards milder
winters, warmer springs, and drier and hotter summers and autumns. Increasing heat and
decreasing precipitation will result in a reduction of water resources2
;
Accordingtothe information provided inthe TNCtoUNFCC,which includes ananalysisof the coastal area,
sea level rise values of up to an average of 14.6 cm by 2050 and 40 cm by 2100 are expected for the
Albanian coast, reaching a maximum of 73 cm by 2100. The SRES3
developed for the Albanian Coast
Projections are based on the IPCC AR44
report and anticipate:
 A likelyincrease inannual temperatures relative to1990 in all seasons.The scenariosprojectthe
lowest increase in temperature in winter compared to other seasons and higher increases in
spring compared to winter in 1990. The coastal zone is unlikely to experience average
temperatures of below 25°C by the summer of 2050, and average temperatures up to 30°C by
2 Source: Firstand Second AlbanianCommunications to theUNFCCC as citedin the National IWRMStrategy,2017.
3 SRES: IPCC Special Report on EmissionScenarios.
4 AR4: IPCC Fourth Assessment Report.

4
2100. One of the consequencesof the predicted changes in temperatures and precipitation will
be a likelyrise in the numberof hotdaysandheatwaves inthe coastal areas.More frequentand
severe droughts with a greater fire risk are also expected;
 A likelydecrease inannualprecipitationrelativeto1990 inall seasons. The resultsof the different
scenarios generally leadtothe conclusionthatannual precipitationislikelytodecrease byup to
-8.5 per cent (from 47.4 per cent to -56.0 per cent) by 2050 and up to -18.1 per cent (from 94.0
to -89.7 per cent) by 2100;
 Although there will likely be a decreasing trend in annual precipitation, a high variability is
expected, withanincrease inextremeprecipitationeventsintermsof magnitude andfrequency.
However, the overall reduced levels of precipitation will also lead to a rise in the number of
consecutive days without precipitation (drought);
 Reduced sea level pressure in summer will increase the occurrence of convective storms;
Figure 1: Climate change projections for Albania5
2.1.2. Climate change impacts and vulnerabilities
Impactsonclimate change pose amajorchallengeforAlbania,specificallyintermsof copingwithimpacts
on water and sanitation, agriculture, ecosystems and biodiversity and the well-being of local
communities.
Water management
According to the National Strategy for Water Supply and Sanitation 2020–2030, by the end of 2018,
approximately 2,400,000 inhabitants or 85 per cent of Albania’s population was connected to a water
5 USAID, 2016, ClimateChangeRisk Profile

5
supply system. Despite this relatively high coverage, the level of service is still fairly weak, and could be
furtherimproved, asthe average availabilityof drinkingwaterwasonly50percent(WRA,2017).Although
progress has been made, the current standards are well below EU requirements.
The potential impacts of climate change on Albania’s water resources include:
 A reduction in the long-term average annual and seasonal runoff;
 Increase in riverine flood risk, with the greatest risk of flooding moving from spring to winter;
 Groundwatersupplywill be affectedby the decreasedpercolationof waterdue to a drop inthe
amount of precipitation and stream flow, and loss of soil moisture due to increased
evapotranspiration;
 Sealevel rise will have severaldirectimpacts,includinginundationanddisplacementof wetlands
and lowlands, coastal erosion, increased storm flooding and damage, increased salinity in
estuaries and coastal aquifers, and rising coastal water tables;
Reduced run-off implies a decrease in river discharge and consequently,a decrease in the availability of
fresh surface water sources. Today, reservoirs provide some buffer capacity. Reduced recharges of
aquifers imply reduced availability of groundwater resources and lower groundwater tables. The
estimated volume of groundwater will not necessarilypose a threat, though potential occurrences of
regional/local scarcity of groundwater cannot be excluded.
Table 1: Climate stressors and climate risk in water resources6
Climate Stressors and Climate Risks
WATER RESOURCES
Stressors Risks
Reduced precipitation and
shift from snow to rain
More frequent droughts and
flooding
Altered or lowered river flows,especiallyin summer
Groundwater affected due to decreased water percolation and loss ofsoil
moisture
Shift in runoff patterns: potential spring decrease,winter increase
Damage to water infrastructure from flooding
Agriculture
Agriculture is sensitive to short-term changes in weather and to seasonal, annual and longer term
variations in climate, and in particular to temperature and precipitation, which are key drivers of
agricultural production.
6 USAID, 2016, Climate Change Risk Profile

6
The largest increase in temperature is expected to occur in the summer and spring periods, which
coincideswithplantgrowthandfructification.Thisisexpectedtoleadtonegativeeffectsforthe majority
of agricultural crops, andwill affectwaterdemandduringthe peakperiodwhenthere isnoprecipitation
for effective crop production.
Table 2: Climate stressors and climate risk in agriculture7
AGRICULTURE PRODUCTION
Stressors Risks
Increasedwinter and summer
temperatures
Reduced water availability during
critical summer months
Accelerated crop development,shortened growing cycle
Increased yields ofsome crops (wheat);reduced yields of others
(maize) as well as reduced forage
for livestock
Increased soil salinization and desertification
Elevated livestock mortality and reduced productivity
Increased exposure to new pests and diseases
Ecosystems and biodiversity
According to the TNC, there already is evidence that the impacts of changing precipitation patterns,
increased instances of flooding and droughts, sea level rise and ocean acidification, are resulting in
biodiversity loss. Moreover, biodiversity is projected to decrease in the future on account of multiple
stress factors, in particular increased land use intensity and the associateddestruction or conversion of
natural and semi-natural habitats.
Extreme climate eventshave andwillcontinue tohave majorimpactsonbiodiversity.Coastalecosystems
are particularlyvulnerable toclimatechange.The magnitude ofthe impact dependsonsealevelrise(TNC,
2016).
Table 3: Climate stressors and climate risk in ecosystems8
ECOSYSTEMS
Stressors Risks
Increasedtemperatures
Increasedfrequency of extreme
weather events
Increased risk offorest fires
Habitatshifts,loss and fragmentation,disrupting species migration patterns
Reduced stream flow,threatening wetlands
Energy
Water demand in the industrial sector is concentrated in hydroelectric energy production. According to
the 2016 TNC, Albania will experience a reduction in annual rainfall and an increase in the number of
intensive rainfall events throughout the year.

7
These two factorswill contribute toreduced wateravailability,withaconsequent rise inthe volatilityof
energy production and, eventually, an overall reduction in electricity generation. The increase in the
number of intensive rainfall events will not create more production capacity; on the contrary, it will put
additional pressure on the dams.
There is currently no evidence that the industrial sector is undertaking any practical efforts to adapt to
the potential impacts of climate change.
Table 4: Climate stressors and climate risk in energy
ENERGY AND INFRASTRUCTURE
Stressors Risks
Increasedtemperatures
More frequent droughts
Increasedfrequency of extreme
weather events
Reduced hydropower potential
Changes in seasonal demand for heating and cooling/refrigeration
Competition for water resources between hydropower and agriculture
(irrigation) sectors
Reduced efficiency of transmission and distribution lines with
increased heat
Flood-caused infrastructure damages
Forestry
Albanian forestscover 36 per cent of the country’s territory. They consist of high stem forests (45.7 per
cent) and coppice (54.3 per cent). Single species forests cover 72.3 per cent and mixed species forests
27.7 percent of the land.Eighty-sixpercentof forestsinAlbaniaare used forproductionof timber,while
14.0 per cent perform protective functions (erosion control, biodiversity conservation, etc.).
The increasedvulnerabilityof forests toextremeweathereventsassociated withclimatechangeincludes:
 Forestcover:conversionof forests intonon-woodyenergyplantations;accelerateddeforestation
and forest degradation; increased use of wood for domestic energy;
 Biodiversity:alterationof plantand animal distribution;lossof biodiversity;habitatinvasionsby
non-native species;alterationof pollinationsystems;changesinplantdispersal andregeneration;
 Productivity:changesinforestgrowthandecosystembiomass;changesinspecies/site relations;
changes in ecosystem nitrogen dynamics;
 Health: increased mortality due to climate stresses; decreasing health and vitality of forest
ecosystems due to the cumulative impacts of multiple stressors; deteriorating health of forest-
dependent peoples;
 Soilsandwater:changesinthe seasonalityandintensityof precipitation,alteringthe flowregimes
of streams; changes in the salinity of coastal forest ecosystems; increased probabilityof severe
droughts;increasedterraininstabilityandsoil erosiondue to risingprecipitationand the melting
of permafrost; more/earlier snow melt resulting in changes in the timing of peak flow of and

8
volume in streams. The capacity of the forest ecosystem to purify water is an important factor,
obviating the cost of expensive filtration plants;
 Carbon cycles: alteration of forest sinksand increased CO2 emissions from forested ecosystems
due to changes in forest growth and productivity;
 Tangible benefits of forests for people: changes in tree cover; changes in socio-economic
resilience; changesin availabilityof specific forest products (timber, non-timber wood products
and fuel wood, wild foods, medicines, and other non-wood forest products);
Initiatives toincrease afforestation mustbe intensified andsustainableforestmanagement ensured.The
SDG targets on mobilizing and increasing resources for sustainable forest management are crucial if
Albania is to effectively address all challenges related to protection, restoration and the promotion of
sustainable forest management.
Tourism
Tourism in the coastal areas is dominated by “sun and sea” tourism. However, due to active marine
erosion, the shoreline is moving inland, destroying hundreds of square meters of beach areas annually,
while atthe same time destroyinghundredsof pine trees.Although only some of thistransformationcan
be attributed to climate change, it is primarily caused by poor management of river outlets and of the
coastline. Projections suggest that:
• by 2030, Patoku Beach will have completely disappearedwith the Kune and Seman beachesonly
partially remaining;
• by 2050, most parts of the Kune and Seman beaches are expected to have disappeared;
• by 2080, serious consequences are expected for the Vlora Beach and for most other beaches;
Apartfrom the destructionof existingbeaches,newbeacheswillbe formedinsidethe country’s territory
which could be used for tourism purposes. The disappearance of beaches is expected to coincide with
bothapopulation growthandanincreasein thenumberof touristsdue totemperature rises(hotsummer
days are easier to cope with at the coast).
2.1.3. Climate related events in Albania
Albania is vulnerable to many types of disasters ranging from geophysical, hydrological meteorological
and climatic. Meteorological events are with higher frequency (33% of the total), followed by climatic
events (22%), hydrological events (21%) and landslides (14%).
These fourcategoriesof disastersaccountforabout90% of the total numberof eventsinthe periodunder
review.About10%of the total numberof eventsare Geophysical,BiologicalandTechnological.Inthe last
20 years more than 690,000 people have been affected by disasters with an average of about 34,000
people affectedannually.Referringtothe 2011 population,thisrepresentsanaverageof 1.2% of the total
population affected each year (more than 1 person in 100).

9
The total amount of losses recorded in the last 20 years is about LEK 10.5 billion ($ 92 million) withan
average lossof more than LEK 500 million(0.026% of the average GDP of the last 20 years).Geophysical
disastershave the highestmortalitywithmore than 50% of total life losses.Thencome the Hydrological
eventswith18% of the total deaths.Geophysical eventsare alsodisastersthat mostlyaffecthomesand
account for about 68% of total damage to buildings, followed by hydrological events with 27%.
Meteorological andhydrological eventsare responsible formostof the damage to agriculture andcrops.
Crop damage wasmainlycausedbyhydrological eventscausingatotal of more than70% of the hectares
affected by disasters.
Table 5: The main disasters and loss statistics in Albania in last 20 years.9
MAIN DISASTERS AND LOSS STATISTICS
Floods and flash
floods (last 20 years)
Landslides (last 20
years)
Forest fires (last 20
years)
Meteorological Events
(last 20 years)
Average events
per year
22.4 25.6 43 51.5
Max number of
events per
year
109 (20 10) 111 (2010) 192 (2007) 239 (2012)
% of affected
municipalities
39 53.7 67.4 66.6
Average
deaths per
year
1.05 0.95 0.1 5.9
Mortality max.
per year
9 (1995) 5 (1998) 1 (2001 dhe
2011)
38 (1999)
Average of
destroyed /
damaged
houses per
year
40/1,136 50/40 1.3/0.15 18.1/82.4
Max. of
destroyed /
damaged
houses per
year
539 (1995)/9672 (2010) 316 (2010)/258
(2005)
4 (2011)/2(2005) 53 (1996)/
550 (1995)
Average
damage in
crops per year
(ha)
7,419 8.2 664 1,087
Max. of crop
damage per
year (ha)
43,739 (2010) 44.2 3,131 7,577 (2005)
Average losses
economic per
year (LEK)
370 mln
(3.3 mln $)
69 mln
(606.6 x10^3
$)
0.9 mln (7.9 x10^3 $) 51.4 mln (451.9x10^3
$)
Max. of
economic loss
per year (LEK)
4,040 mln
(38.9 mln $)
(2010)
471 mln (4.5
mln $) (2010)
7 mln (50.8x10^3 $)
(1999)
667.4 mln (6.7 mln $) (in
2005)
The highest direct economic loss is caused by hydrological events (mainly floods and flash floods) with
72% of the total.The total value of economicdamage inthe last 20 yearsis about LEK 1.5 billionwithan
average annual loss of more than LEK 500 million (0.026 of GDP of the last 20 years). The time trend is
influenced by two major floods: the flood of 2002 and 2010 in Shkodra. Losses were estimated to be
around $ 20 million for the floods of 2002, and around $ 40 million in 2010. These two disasters have
caused67% of the total direct economicdamage inthe last20 years.The districtwiththe highestlosses
9 CIMA foundation, 2014, Collection ofhistorical data on disaster losses in Albania (The document is available only in albanian)

10
is located in northof Albaniai.e Shkodraand sorroundingareas, whereas, otherareas incentral Albania
i.e Tirana, Kruja, Librazhd and South i.e Gjirokastra have lower losses.
2.1.4. Sources of GHG emissions
Energy mix for Albania
Albaniaisinan excellentstartingpositionforthe GreenDeal,withapowersector fullybasedoncarbon-
free hydropower. With the exception of traders and a number independent hydropower producers, the
players on the electricity market are all state-owned. Albania will be a transit country for the TAP once
operational,andhopestoincrease theroleof gasinitsdomesticenergymix aswell.Discussionsonmaking
the Vlora power plant operational and connecting it to TAP have not yielded concrete results. The
productionof electricityfromsolarplantsisyettobegin.Like all WesternBalkanContractingParties,itis
well interconnected with its neighbors.10
According to the data from energy community the energy mix produced in Albania 1637 [ktoe] and is
mainlydominatedbyoil with58.7%or 959 [ktoe] followedbyhydropowerwith23.8% or 389 [ktoe].The
following figure shows the distribution of energy mix in Albania.
Figure 2: Primary fuel mix in Albania11
On the other hand, according to the Energy Community, the inland consumption is around 2267 [ktoe]
where the main consumptionisrelatedtooil 1318 [ktoe] or 55.6% followedbyhydropowerwith16.4%
or 389 [ktoe]. The following figure shows the gross inland consumption in Albania.
Figure 3: Gross inland consumption
10 Energy Community, 2020,AnnualImplementation Report
11 Eurostat, April2019

11
Sources of GHG emissions
Albania’sGHGinventorycoversall sourcesandsinksaswellasall gases,asmandatedby10/CP2:it covers
five main sectors, namely energy, industrial processes, agriculture, waste and LUCF (solvents are not
considered) as recommended by the 1996 revised IPCC12
Guidelines and the IPCC Good Practice
Guidelines. The national inventory covers three direct GHGs: CO2, CH4 and N2O, and four indirect GHGs:
CO, NOx, SO and NMVOC. Emission factors are representedby default factors. The present inventory
covers the refined time-series for the period 2000–2009, and the base year is 2005.
Albania’sGHG profile isdominatedbyemissionsfromthe energysector,followedbyemissionsfrom the
agricultural sector.Energyisresponsibleforoverhalf of the country’s total emissions.Transportaccounts
for 52 per cent, manufacturing and construction for 26 per cent, other fuel combustion for 18 per cent,
electricityandheat for 3 percent, and fugitive emissions for1 per cent of energyemissions.Agriculture
is responsible for nearly one-third of national emissions13
.
The Intended Nationally Determined Contribution (INDC) denotes Albania’s goal to decouple GHG
emissionsfrom economic growth and maintainthe low-carbon intensityof its power generation sector.
Since the major contribution of energyactivities toGHG emissions washighlightedin the SNC,no major
studies have been conducted to decrease emissions in this regard. The TNC recommended the
establishment of a legal framework to create a legally binding national system for the
collection/management and processing of GHG data to serve as the basis of future GHG inventories.
The main provision sets the emission reduction target against the emissions in the baseline year and
againstthe projectionsof emissions calculatedbymeansof a baseline scenario.The targetis definedas
follows: “to reduce CO2 emissions compared to the baseline scenario in the period of 2016 and 2030 by
11.5 %”. This entails a reduction of 708 kt in carbon-dioxide emissions by 2030. Reductions are to be
12 IntergovernmentalPanelon Climate Change.
13 World Resources InstituteClimateAnalysis Indicators Tool (WRICAIT) 2.0,2015.

12
achieved inthe industrialandenergysectors,implementingcost-effectivemitigationoptionsidentifiedin
the TNC and NEEAP (National Energy Efficiency Action Plan), including the introduction of 10 per cent
biofuels in the transport fuel mix by 2030. Albania’s emission reduction trajectory is expected to be
smooth and to achieve 2 tonnes of GHG emissions per capita by 2050, which corresponds to the target
for global contraction and convergence of GHG emissions.
Table 6: Anthropogenic greenhouse gas emissions, by gas and sector, 200914
Gases Sectors 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
CO2
Energy 2,988 3,372 3,478 3,649 3,896 3,835 3,749 3,925 3,983 4,319
Industrial
Processes
520 852 806 966 1,043 1,118 1,195 1,470 1,547 1,623
Agriculture 0 0 0 0 0 0 0 0 0 0
Land-Use
Change &
Forestry
3,303 2,506 2,055 1,719 1,790 1,715 1,638 1,617 1,179 911
Waste 0 0 0 0 0 0 0 0 0 0
Total 6,811 6,731 6,340 6,334 6,728 6,668 6,582 7,013 6,709 6,854
CH4
Energy 5 5 5 5 5 5 5 5 6 6
Industrial
Processes
0 0 0 0 0 0 0 0 0 0
Agriculture 74 72 70 70 70 67 65 61 57 54
Land-Use
Change &
Forestry
0 0 0 0 0 0 0 0 0 0
Waste 24 24 24 25 27 27 30 31 29 35
Total 103 101 99 100 102 99 101 97 92 94
N2O
Energy 0 0 0 0 0 0 0 0 0 0
Industrial
Processes
0 0 0 0 0 0 0 0 0 0
Agriculture 0 0 0 0 0 0 0 0 0 0
Land-Use
Change &
Forestry
0 0 0 0 0 0 0 0 0 0
Waste 0 0 0 0 0 0 0 0 0 0
Total 0 0 0 0 0 0 0 0 0 0
CO2eq
Energy 3,112 3,500 3,609 3,784 4,038 3,975 3,890 4,067 4,130 4,466
Industrial
Processes
520 852 806 966 1,043 1,118 1,195 1,470 1,599 1,701
Agriculture 1,552 1,510 1,464 1,476 1,464 1,403 1,375 1,283 1,205 1,131
Land-Use
Change &
Forestry
3,303 2,506 2,055 1,719 1,790 1,715 1,638 1,617 1,179 911
Waste 591 593 592 601 647 653 723 731 697 828
Total 9,078 8,962 8,527 8,547 8,982 8,865 8,822 9,170 8,810 9,037
The highest emissions contributor is Carbon Dioxide (CO2) it reaches the level of 75.02% in 2000, and
reaching 75.71% (2009), the second highest contributor is Methane (CH4) with 23.75% in 2000, and
decreasesto 22.07% in 2009; the thirdis NitrousOxide (N2O) with4.12% in 2000 and keepingthe same
14 Third NationalCommunication ofthe Republic ofAlbania onClimateChange,Tirana, June2016.

13
level to 2009 and the fourth is the group of CFC, HCF, PCF refrigerants with 0.00% 2000 and 2005 and
increasing to 0.87% in 2009 (figure below).
Figure 4: CO2 eq. emissions for the years 2000, 2005 and 2009 (%)15
Accordingtothe INDC,abaseline scenarioof GHGemissionshavebeenprojecteduntil2030 startingfrom
2012 asbase yearandusingPRIMESmodel forprojectionsof energyintensityandactivitylevelsandother
sectoral models (inparticular SLED electricity and buildings sector modelsand UNDP LEAP model), data
from National Agency for Natural Resources (NANR) and INSTAT16
.
Ideally the whole economy should be covered by the projections reported in the INDC, however two
aspects should be carefully considered: while a coverage of sectors as comprehensive as possible is
desirable,the lackof dataavailabilityordataqualityinsome sectorscanlimitwhatitispossible tocover.
For these reasons, according to the INDC technical background document approved by the Albanian
Government on September 2015, data availability and data qualitylimitationshave been managed with
two restrictions:
- Notincludingthe LULUCF sector,as the Albanian GHG inventory - thatactuallyspellsoutfive
main sectors: energy, industrial processes, agriculture, land use change and forestry and
waste - contains a significant uncertainty of removals connected to LULUCF. However, the
AlbanianGovernmenthasreservedthe righttoinclude forestryinthe INDCinthe future,but
before the start of the foreseen “commitment period”, 2020.
- Not including GHGs other than CO2. In fact, the greenhouse gas inventory of Albania has
complete time series until 2000 and inventory data was made available for the years 2005
and 2009 as part of the 3rd
National Communication. Not having the time series until 2012
15 GoA, 2015, Intended National Determined Contribution

14
and having a relative high uncertaintyof accounting of other gases than CO2, Albania chose
onlyCO2 asthe gas inwhichits INDCisexpressed. However,Albaniaannouncedthe intention
to expand its INDC to other gases at a later stage as soon as data quality will be improved.
This would also automatically exclude agriculture and waste, as the inventory does not
contain GHG related emissions regarding agriculture and waste.
HavingexcludedLULUCF andother gasesthan CO2,the GHG emissionscoveredbythe projectionsof the
AlbanianINDCare forthe momentlimitedtotheenergy-relatedsectors,includingtransportand industrial
processes, which together cover less than 60% of total GHG emissions in the inventory. This could
representaseriouslimitation, evenif includingLULUCFand other non-CO2 gaseswouldbringaboutvery
high uncertainty. Nevertheless, Albania will probably expand its INDC to other economic sectors and
greenhouse gases as well before 2020, if data quality and availability will be improved.
Table 7: Total CO2 emissions (Gg CO2), non-biogenic (Source: INDC 2015)
Sector 2012 2015 2020 2025 2030
Residential and service 251 269 293 320 352
Industry 980 1064 1243 1534 2032
Transport 2238 2431 2682 2898 3197
Agriculture 243 275 307 341 311
Non Energy Use 101 101 101 101 101
Energy branch 139 142 155 159 175
Electricity production 0 0 0 0 7
Total 3952 4282 4781 5353 6174
This scenario confirms that the transport, industry and residential sectors are the key emitting sectors,
with services, transport and industry emissions growing significantly over the period to 2030 driven by
economic growth. This is shown in figure below.
Figure 5: Energy sector emissions in 2012 and 2030 (Gg CO2)17

15
2.2. Development profile
2.2.1. Macro-economic development
Since Albania’s shift to the market economy, the country’s economic development has been shaped by
important events. The transition to modern economic growth was slow in the beginning, with the
introductionof prudentmonetaryandfiscal policies focussedonstrengtheningeconomicindicators.The
initial years of Albania’s economic transition were characterized by a significant recovery of economic
growth of approximately9 per cent annually.In1997, the collapse of pyramidschemescauseda severe
decline in the Albanian economy,which registered a negative growth of GDP of around 7 per cent. The
country’s economic growth was further impacted by the global crisis between 2000–2006. During this
period, the rate of growth declined from 7 per cent to an average of 3 per cent. Albania’s economy
registered an upward trend of an estimated 3.7 per cent growth in 2017. Moreover, investment has
surged (14.3 per cent) (IMF, 2017), supported by foreign direct investment (FDI) in the energy sector.
Tourism has also been a main driver of economic growth.
GDP growthhalved followingthe financialcrisisandhas since beenprimarilyconsumption-led.Post-crisis
economicgrowthdecreasedto below 3 per cent, from above 6 per cent in 2000–2008. Growth overthe
past 10 years has mainly been driven by household consumption, followed by net exports, while
investment contribution has been negligible. The past four years have, however, witnessed an upward
trend in growth and investments.
Economic growth rose to 4.1 per cent in 2018, primarily due to good hydrological conditions and,
consequently,higherelectricityproduction.Inaddition, tourismdevelopedintoanincreasinglyimportant
contributor to economic growth. The economy was projected to expand at 2.8 per cent in 2019, driven
mainlybyprivate consumption,andtoaccelerateto3.5percentin2020, bolstered bythe previousyear’s

16
low base load, the expectation of further growth in the tourism sector and investment in transport
infrastructure.
Albania’sGDP waslastrecordedatUSD4,541.39 in2015. Itseconomy grew 3.4percentin2016,according
toWorldBankdata, orALL 1,475,251 inabsolute figures,andanestimatedgrowthof 3.7percentin2017,
the highest growth rate in the Balkan region. Agriculture remains the main contributor to the Albanian
economy,accounting for 19.9 per centof GDP in 2016, followedbyconstructionat 8.9 per cent of GDP.
Albania’s GNI per capita increased by around 143.3 per cent between 1990 and 2015.
The reduction of debt is one of Albania’s priorities– following a rapid increase of nearly 15 per cent of
GDP in2011–15, Albania’s debtratiopeakedat73percentof GDPin2015 (IMF,2017). Itscurrentaccount
deficitdeclinedto7.6percentof GDP bythe end of 2016, withremittancesandFDI beingthe maindrivers
of thisdecrease.ImportsgeneratedfromFDI inlarge energyprojectssuchas the Trans-AdriaticPipeline
(TAP) contributed around 2.5 per cent of GDP in 2016 (IMF, 2017).
Unemploymentincreasedfrom13 per cent in2008 to 17.5 per cent in 2014, while estimationsfor2017
showed a considerable drop in unemployment of 13.6 per cent. Albania is still consideredone of the
poorestcountries inEurope,eventhough the poverty rate in termsof percentage of the populationhas
been steadily decreasing (in 2002, 25.4 per cent of the population lived below the poverty line and in
2009, it was 12.4 per cent; National Development Programme 2009). According to data from the World
Bank,5.8 per centof the Albanianpopulationlivedinextreme poverty in2016, while 34per centlivedin
poverty.
Based on data provided by UNDP, Albania’s HDI value for 2015 was estimated at 0.764, ranking at 75th
out of 188 countriesand territories.Inaddition,Albania’sHDIvalue rose from 0.635 in 1990 to 0.764 in
2015, an increase of 20.3 percent.Amongthe HDI indicators,Albania’slife expectancyatbirthincreased
by6.2 years between1990and 2015, the meanyearsof schoolingincreasedby2.2yearsandthe expected
years of schooling by 2.6 years. Table 8 presents time series data on Albania’s economic performance
between 2008 and 2017.
Table 8: Macro-economic indicators of Albania
2008 2011 2012 2013 2014 2015 2016 2017
Growth rate 3.8 2.6 1.4 1.0 1.8 2.2 3.4 3.9
GDPin million
ALL
1,080,676 1,300,624 1,332,811 1,350,053 1,395,305 1,427,799 1,472,791
GDPin million
USD
12,881 12,891 12,320 12,776 13,228 113,352 11,864
GDPper capita 4,370.54 4,437.18 4,247.61 4,413.08 4,578.67 3,934.90 4,124.98
HDI 0.752 0.759 0.761 0.762 0.764
GNIper capita
(2011 PPP $)
9,614 9,722 9,932 10,007 10,252
Agriculture % of
GDP
19.42 20.96 21.66 22.5 22.92 22.13 22.89

17
Inflation rate 3.36 3.45 2.03 1.94 1.63 1.91 1.28 2
Unemployment
rate
13 14 13.4 15.6 17.5 17.1 15.2 13.6
Population
growth rate
(0.77) (0.27) (0.17) (0.18) (0.21) (0.29) (0.16)
Domestic credit
% of GDP
66.51 69.52 68.23 67.66 67.97 63.24 61.48
FDIas % of GDP 9.68 8.14 7.47 9.81 8.69 8.74 9.17
Ease of doing
business
91.69 90.19 87.6 87.29 87.24 82 68.21 69.04
Source: World Bank, UNDP
Overthe lastyears,the Governmentof Albania (GoA)hasembarkedonabroad-basedreformprogramme
focussed on macroeconomic and fiscal sustainability, financial sector stabilization, energy concerns,
pensions and territorial administration.
Climate risks assume an important position in these reforms. Several of the reforms’ priorities relate to
energy, agriculture, the environment, etc. The main national priority is the strengthening of energy
diversification and low-carbon transition by reducing CO2 emissions, increasing energy and resource
efficiencyandimprovingclimateresilience.These transitions will be furthermainstreamedbyenhancing
the resilience of infrastructure to climate change as part of infrastructure development projects.
Moreover,the Albanian governmenthas made progress inaligningitsnational agenda—assetoutinthe
National Strategy for Development and Integration (NSDI-II)—with the 2030 Agenda for Sustainable
Development and is currently developing a national action plan on the SDGs. The challenges include
developing a national vision 2030 and aligning SDG implementationand monitoring efforts with the EU
accession process.
Significant progress driven by the ongoing reforms has created conditions for rebounding business
confidence and domestic demand, including early signs of increasing investments and an export-led
recovery. Maintaining the reform momentum and implementation is critical for Albania’s continued
economic growth and its aspirations for European Union (EU) integration. On 25 March 2020, the
EuropeanCommissionopened accessionnegotiationswithAlbania, whichentails the adoptionof the EU
acquis. Furthermore, access to EU markets increases the scale of the economy, thus boosting growth.
Albania suffered two consecutive blows with devastating consequences: a powerful earthquake in the
endof 2019 andthe global COVID-19pandemicin early2020.The effectsof theseshocksdominate recent
economic developments and the short-term outlook for the economy.
The earthquake that struck Albania on November 26 had severe consequences. Earthquake, magnitude
6.3 according to Richter scale, caused 51 casualties and displacement of 17,000 people who lost their
homes.Damages inphysical capital andlossesare estimatedtobe asthe equivalentof about7.5percent
of GDP. Damages amounted to 26.4 percent of fixed capital formation gross of 2018. Economic growth
rates slowed from 4.1 percent in 2018 to an estimated level of 2.2 percent in 2019.

18
Drought had reduced energy production since the first half of 2019. Because large energy projects
financed by FDI- were in the completionphase, investment slowed down and consumptionbecame the
main driver of the economy. When the November earthquake destabilized GDP, both consumption and
investment shrank dramatically.
While in February 2020 the donors' conference raised € 1.15 billion for earthquake reconstruction,in
March the COVID-19 pandemicplungedthe countryintoan unprecedentedpublichealthcrisis,whichis
not yet over. To curb the spread of the virus, Albania ordered the temporary closure of important
economicactivitiessuchasrestaurants,andtrade in non-vital items;restrictedthe movementof people;
and applied extensive restrictions on domestic and international travel. Many industries allowed to
operate, such as textiles, mining, call centres, and construction, had to shrink their business to comply
with restrictions.
The COVID-19 pandemic is a global shock that has not spared the Western Balkans. It represents an
unprecedented burden on their health and social protectionsystems. The final extent of its footprint in
termsof damage to the economy isstill difficulttoassess,butearlyCommissionestimatesforeseeadrop
of between 4 and 6% of Gross Domestic Product (GDP) in [Albania]18
in 2020.
3. Policy, strategy, planning and institutional needs
3.1 The strategic framework relatedto climate change response
The second National StrategyforDevelopmentandIntegration(NSDIII 2015–2020) highlighted Albania’s
visionforitsnational,social,democraticandeconomicdevelopmentoverthe period 2015–2020, and its
aspirations for European integration. The strategy’sgoals are supported by four pillars. The fourth pillar
is economic growth based on the sustainable use of resources.
The currentGoverningProgramme of the Republicof Albania19
coveringthe periodbetween2017-2021,
includes6main prioritiessupportingSustainable andInclusive Development. Amongthe six government
priorities,Priority6aims to ensure growth through connectivityandthe sustainableuseof resources. It
specifically mentions the needs for erosion prevention, reforestation, better water basin management,
increasedmonitoringof air quality,integratedmanagementof protectedareas,waste managementand
circular economy, while linking ecosystem protection to the development of tourist infrastructure. It
envisages investments in the country's infrastructure—energy, transport, natural resources and the
environment,agriculture,mining,tourism andwater—whichwill expandopportunitiesforbusinessand
the economy,aswell asincrease the well-beingof all Albaniancitizens,and move the country forward on
its path towards European integration.
The first draft of the National Climate Change Strategy was finalized and presented to the Inter-
Ministerial Working Group on Climate Change for discussion in May 2016, and was endorsed by the
government in DCM No. 466 in July 2019. The Strategy includes both the National Action Plan on
18 Communicationfrom the Commission to the European Parliament,theCouncil, theEuropeanEconomic andSocial Committeeofthe
Regions –Albania 2020 Report
19 GovernmentProgramme for Albania 2017-2021

19
Mitigation(NAPM) andthe National AdaptationPlan(NAP).Itwasdevelopedinaccordance with Decision
1/CP16 of UNFCCC, while the mitigation plan was developed in accordance withDecision 525/2013/EU.
As regards adaptation, the document followed the 2012 Technical Guidelines for the NAP Processes
developedbythe UNFCCCLeastDevelopedCountriesExpertGroup.The nationaladaptationplanprocess
was organized in accordance with the EU 2013 Strategy on Adaptation to Climate Change.
The Strategyfocussesprimarily onthe three main componentsof climate change inAlbania: mitigation,
adaptation and sustainable development. The following priorities have been identified:
 Ensuring sustainable economic growth consistent with GHG emission pathways definedin the
NDC and moving towards an economy-wide target to which all sectors contribute;
 EstablishingaGHG monitoring,reportingandverification system in line with EU requirements;
 Strengtheningthe capacityof relevantinstitutionsandinter-institutional cooperationtoaddress
climate change issues;
 Streamlining climate change issues across sectoral strategic and policy planning;
 Reinforcing the capacity and awareness of climate change issues;
 Aligning all sectors with the EU Climate Change framework, including the national long-term
objectives, and with the SDGs;
The National ActionPlanonMitigation(NAPM) includes detailedmeasuresandactions contained inthe
policy documents analysed. A brief overview is provided for the selected measures,including reduction
targets, the year or period by which the measure must be implemented and the cost estimation as
reportedinthe source documentor asspecificallyassessed.The total costs of implementationof the plan
are alsocalculated,as well asthe financial resourcesallocatedand/orcommittedfromthe state budget,
donors and other sources to date. The total cost for implementation of the plan’s direct measures is
estimated at around ALL 106.9 billion.
The National AdaptationPlan (NAP)isanumbrellaplanratherthanadetailedoperational planspecifying
all necessarymeasures forthe country’s successfuladaptationprocess. It is based on two assumptions:
 The understanding that adaptation actions must be mainstreamed in various development and
sectoral plans and policies, which will be further specified within this context;
 Several existing conceptual frameworksand planning documents will be supplemented, but not
substituted;
NAP lists 15 priority actions with strategic and leverage functions (so-called “umbrella projects”) and
sectoral actions of high priority, which the Albanian government must take concrete decisions on for
implementation.Thelistof priorityactionswasagreedduringthe meetingof the Inter-ministerialWorking
Group on 8 September 2015. Each priority action includes the rationale/main goals, potential key
elements, the responsible actors and necessary resources for implementation.

20
An initial inventory of potential Nationally Appropriate Mitigation Actions (NAMAs) in Albania was
established withUNDP support (2013–2014). Priorities were determined on the basis of a multi-criteria
analysis, considering the benefits for a range of sustainable development goals, and two NAMAs were
fully developed focussing on:
(i) Supporting the implementation of the National Energy Efficiency Action Plan (NEEAP) in
the residential, public and commercial sector; and
(ii) Replacing fossil fuels with non-hazardous waste in the Albanian cement industry;
Intended Nationally Determined Contribution(INDC): this measure commits to a reduction of 11.5 per
centof CO2 emissions(comparedtothe 2016 baseline) by2030; thisimpliesareductionof 708 ktcarbon-
dioxide emissions by 2030. The INDC covers the energy and industrial processes. It does not include an
adaptation component. The main features of the INDC are:
 A focus on CO2 reductions in the energy and industrial sectors only;
 The intention to sell carbon credits by 2030 within the scope of an “international market
mechanism”“conditional onhavingeffective accountingrulesdevelopedunderUNFCCCtoensure
the environmental integrity of the mechanisms”;
 The objective of developinganEnvironmental andClimateChange Strategyunderthe coordination
of the Ministry of Tourism and Environment;
The AlbanianParliamentratifiedthe ParisAgreement inLaw No.75/2016 of 14 July 2016, as a major step
towards the Agreement’s implementation.In 2020, Albania received a funding opportunity through the
ReadinessSupportProgramme of GCF to enhance itsexistingINDC,providingsectoral andcross-sectoral
policyrecommendations,capitalizing onthe knowledge of the processandthe monitoringsystem,along
with training of institutional authorities and local technical experts. Moreover, the NDC will provide
updated information in relation to energy, renewable energy and energy efficiency. It will also give an
overviewof the state of implementationof the currentINDCand issuerecommendationsforemissionsin
the energy efficiency sector.
Environmental Cross-cutting Strategy (ECCS) 2015–2020: This strategy provides a list of actions and
measures for climate change, air quality, chemical products, water, waste management, protection of
nature,forestryandpasturesaimedatenvironmental protection,withsomeactionsfocussedinparticular
on climate change adaptation and mitigation for the medium (2015–2017) and long term (2017–2020).
Financing mechanism for energy efficiency in buildings (NAMA), 2015–2020: The primary objective of
this action is the provision of financial support through grants or subsidized loans for energy efficiency
upgrades of buildings. Moreover, it aims to establish a centralized database to collect all relevant
informationformonitoringandevaluatingtheaction’sprogress.A second objectiveispublicconsultation,
which envisages the involvement of a platform of stakeholders that is as broad as possible. These
stakeholdersshouldbe regularlyupdated aboutthe developmentof the mainstrategicdocumentsissued
by the government in this particular field.

21
The government has also introduced a number of sectoral strategies, policies and plans presenting a
comprehensive vision and strategic framework for specific sectors. Integration of both mitigation and
adaptation measures intoAlbania’snational strategies,policiesandprogrammeswill be a critical stepin
shifting the country’s development path towards a climate-resilient, low-carbon and green economy.
Some of Albania’s key sectoral policies are presented in Table 3.
Table 9: Key strategy/policy documents20
Key sectors Strategy/policy documents
Water quality/Water resources - National IntegratedWaterResource ManagementStrategy
Energy - National Strategy on Energy 2030
- Second and Third National Energy Efficiency Action
Plan (NEEAP) 2018–2030
- National Action Plan on Renewable Energy for the
period 2015–2020
Transport - National TransportSectorStrategyand accompanying
Action Plan 201 –2020
- Draft National Transport Sustainable Plan
Agriculture - Inter-sectoral Strategy for Agriculture and Rural
Development 2015–2020
Territorial planning - General National Territorial Plan “Albania 2030”
- Integrated Cross-sectoral Coastal Plan
- Integrated Cross-sectoral Plan for the Economic Zone
Tirane-Durres
Forestry - Integrated Forest and Pastures Management Plan
Biodiversity - Documentof StrategicPoliciesforProtectionof Biodiversity
2016–2020
Industrial policy - National Strategy on Non-food Industry 2018-–2025
Health - Strategy for Health System Adaptation to Climate Change
One importantaspectthat should be emphasized isthe incorporationof climate change and disasterrisk
reduction (DRR) considerations in all aspects of policy planning and development.
The TNC identified the following gaps that need to be addressed:
• The existingnationalearlywarningsystemsmustbe upgraded withnewandupdatedinfrastructure
(hardware and software). It is also imperative to develop emergency plans based on accurate
assessments of national hazards;
• Coordination between the government ministries responsible for CC and DRR must be
consolidated;
20 MTE, 2017, National Climate Change Strategy and Plan NCCSAP 2017

22
• Data availability and accessibility for all national institutes, including the Institute of Geosciences,
Energy,Water and Environment(hydrometerlogical data), the AlbanianGeographical Survey,etc.
must be improved;
• Capacity must be built to engage in policy dialogue and ensure participation of vulnerable groups
in decision making;
• DRR and climate change adaptation shouldbe introduced intothe educational systematall levels
(awareness-raising, engaging with the media);
• Climate change considerations should be mainstreamed into all economic activities;
• Regional and international cooperation in DRMand CCA initiatives should be strengthened;
Due to Albania’s pressing social and development needs, resourcesfor climate change-related activities
remain scarce. Furthermore, ensuring the sustainability of interventions in Albania to reduce climate
change impacts continues to be challenge, mainly due to the lack of:
(i) Coordination of the body responsible for climate change issues;
(ii) Specific legislation addressing climate change issues, which poses difficulties for securing solid
institutional support/inputstothe climate change database from various economic sectors; and
(iii) Qualified staff in public institutions to conduct analyses on climate change-related issues;
3.2 Access to climate finance
Albania has been committed to embracing climate change policies and addressing all of the UNFCCC’s
objectives since June 2005. Over the last two decades, the Albanian government has adopted and
elaborated relevant laws in accordance with the requirements and obligations enshrined in the
Conventionandotherrelatedprotocolsanddocuments.The Albaniangovernmenthas already requested
advisory services from UNDP, GIZ, the World Bank and FAO to help meet its commitments.
GHG emissionshave causedandcontinue to cause chaineffects.Increasingtemperaturesandan overall
decrease in rainfall can be associated with, inter alia, reduced crop productivity, soil and forest
degradation andalteredhydrologyof watersheds.Increasingenvironmentalrisksanddegradationof the
physical and biological environment are associatedwith the release of fixed carbon or the reduction of
carbon fixing capacity in the environment.
Hence, the implementation of appropriate mitigation measures are key for improving the state of the
environment. Mitigation and adaptation activities are ongoing and international partners are actively
involved inoperational projects.Table 4providesanoverviewof climate-relatedinitiatives,programmes
andprojects thathave beenimplementedandare ongoing,andwhichmaybe of relevanceforadaptation
and mitigation planning as well as for the NAP process.
Accordingto the PublicEnvironmental Expenditure Review (PEER) preparedforAlbaniainJuly2013, and
supported by the Government of Albania, the World Bank and SIDA, investments and donor funding far
outweigh domesticfinancing. Between 2007 and 2012, investments accountedfor 85 per cent to 94 per
cent of total PEER. PEER (in EUR million) ranged from 16,401 in 2007 to 23,486 in 2012.
PEER in Albania has beenpredominantlyapplied to sewage and wastewater treatment. Over the period
2007 to 2012, sewage and wastewater treatment accounted for 67 per cent of total PEER, on average.

23
Other uses included management of solid waste (14 per cent), protection of biodiversity (5 per cent),
administrative costs(4per cent) and other environmental costs(4per cent).The use of PEER to address
climate change was 2 per cent, followed by improvement of air quality at only 1 per cent.
Accordingto the environmental performance review of Albania during 2016–2018, a total of around ALL
74.36 billion (around EUR 609 million) were invested, mobilized for environmental protection and
environment-related infrastructure.
Projects financed through the ministry responsible for environmental issues with national and
internationalsupportare presentedinTable4.Additionalongoinginitiativesonclimatechange mitigation
and adaptation are listed in Annex 3.
Table 10: Projects financed by the ministry responsible for environmental issues
Project financed Total cost
(billion ALL)
Period Funding
source
Investment
(billion ALL)
Elbasan incinerator 3.69 2015-2019+ State budget 1.99
Construction of factory to produce energy from
waste in Fier
4.70 2015-2019+ State budget 2.22
Construction of cleaning plant in the delta of the
Ishëm River
530.00 2015-2019+ State budget 250.00
IPA- 2013, Natura 2000 607.20 2015-2020 EU 110.00
IPA- 2013, Climate Change 303.60 2015-2020 EU 40.00
IPA- 2013, Waste 303.60 2016-2020 EU 140.00
Lake Ohrid 258.06 2017-2019 EU 240.00
Kune-Vain 258.30 2017-2019 UNEP/GEF 100.00
Bio-energy 120.54 2015-2017 GEF 23.00
Information management and monitoring
system
119.31 2016-2020 UNDP 50.00
Biosphere Park Prespa 483.00 2016-2020 KFW 120.00
Agro-biodiversity preservation in rural areas 289.80 2015-2020 GIZ 10.00
Conservation and Sustainable Use of
Biodiversity in Lakes
22.00 2015-2017 GIZ 10.00
Ohrid, Prespa and Shkodër
Adaptation to climate change in the fieldof
cross-border
119.31 2017-2020 GIZ 34.00
Management of flood risk in the Balkans
Waste in the context of climate change 414.00 2017-2020 Germany 60.00
Source: EU Delegation, 2017.
Environmental protection expenditures have doubled since 2014 and, according to Albania’s Economic
Reform Programme 2016–2018 (DCM No. 52 dated 27 January 2016), they will increase further, up to a
0.3 per cent share of GDP. In addition, investments in the environment have also surged.
According to the NCCSAP 2017, in addition to the previous more traditional ODA-related financing
instruments,there are emergingfinancinginstrumentsthattrytoattractandleverage privateinvestment
inclimate-resilientprojectsandprogrammes i.e.the incentivationforthe constructionofsmallrenewable

24
energypowerplants.Especially,climate finance hasstirredupthe financial markets andtriggeredsome
innovations that have to be further researchedand tested, in particular their suitability in the Albanian
context.The regulatoryandlegislative environmentneedstobe further strengthenedandimprovedfor
some of the instruments to become potentiallysignificant sourcesof financing in the mid-termto long-
term future.
These instruments are particularlyrelevant for priorityactions in productive sectors (e.g. in agriculture,
tourism and energy), where private actors play a significant role in view of investing in or implementing
climate-resilient solutions.
However, there is a lack of data to assess the level of investments from the private sector in Albania.
More recently, the Government of Albania has sought to achieve key national economic development
goals through public-private partnerships (PPPs). Within the Albanian policy context, the goals and
objectives of PPPs are as follows:
• to provide funding within the constraints of budget and public spending cuts;
• to expand infrastructure investment as a driver of economic development;
• to improve service quality, efficiency and promotion of public sector management; and
• to achieve higherefficiencyinthe use of resourcesbyinvolvingaprivate partnerandcommercial
assessment of public assets;
3.3 Cooperation with GCF
3.3.1. Institutional framework in GCF delivery
The Albanian government has supported and continues to support the development of climate change
policiesbased ontwomain pillars,namelythroughthe implementationof UNFCCCand its obligations in
accordance with the EU acquis.
The institutional framework for the elaboration and implementation of climate change-related policies
and legislationinAlbaniareliesmostly onthe national administrative bodies.The figure below showsthe
line ministries responsible for the climate change and its related impact.
Table 11: The ministries responsible for addressing climate change issues.
Name of the institution Description of Role
Council of Ministers Main body for approving policies and plans
Ministry of Tourism and Environment
(MTE)
The highest government body responsible for
environmental protection and for the drafting of
environmental and climate change policy and
legislation in the country

25
Ministry of Infrastructure and Energy
(MIE)
Drafting and implementing policy in the sector of
infrastructure and energy, use of energy and natural
resources.
Ministry of Agriculture and Rural
Development (MARD)
Competent institution for agriculture.
Ministry of Health and Social
Protection
Competent institution for public health policy
Inter-Ministerial Working Group on
Climate Change (IMWGCC)
The IMWGCC is responsible for drafting policies and
strategies on climate changes and include them in the
respective sectorialprogrammes.The IMWGCCischairedby
the Deputy Minister of Tourism and Environment and is
composed of representatives of MIE, MARD, MHSP, MEYS
etc. Thiscommitteemayimprovestakeholders’coordination
for more integrated responses to the challenges of climate
change.
Municipalities The municipalities are in charge for the assessment of risks
within their territory, drafting and adopting the document
on risk assessment from disasters,inform the public on the
riskbasedonthe assessmentanddraft,adaptandrevise the
local plan for civil emergencies. Moreover, according to the
legislation each municipality should have a directorate or
department that is responsible on civil protection, and
should establish a permanent civil protection committee.
And other national agencies as following.
Table 12: National agencies responsible for addressing climate change issues.
Name of the institution Description of Role

26
National Environmental Agency
(NEA)
NEA is the regulatory authority in the environmental sector
and the main institution responsible for monitoring and
reporting on the environment.
National Agency for Natural
Resources
Management of water resources ensuring the
sustainability of ecosystems, promoting
competitiveness of uses and prioritizing towards
economic profitability.
National Agency For Integrated
Water Management (AMBU)
The Water ResourcesManagementAgencywas established
by Decision of the Council of Ministers no. 221 dated
26.4.2018 "Onthe organizationandfunctioningof the Water
ResourcesManagementAgency".The missionof the Agency
is the good governance of waterresourcesin orderto meet
all vital needs, keeping in mind the sustainability of
ecosystems, promoting competitiveness of uses and
prioritizing towards economic profitability
Institute of Geoscience, Energy,
Water and Environment
The Institute of Geosciences, Energy, Water and
Environment is a national scientific research unit in the
field of environment and climate
INSTAT Competent institution for the production of national
statistics
Polytechnic University of Tirana The aimof the departmentof Environmental Engineeringin
the Polytechnic University of Tirana is to prepare experts in
engineering level in the field of environmental protection
mainly in the water and energy.
Agricultural University of Tirana The UBT provides professional education tospecialistsinthe
field of agriculture and environment, research and
forecasting of food resources, sustainable development of
agriculture, protection and regeneration of resources,
rational use of productive resources, provision of
ecologically clean products, food security, etc.

27
The IWGCC’s21
main role is the coordination of the ministry’s tasks in accordance with the country’s
obligations underUNFCCCandpursuantto Article 108 of the StabilizationAssociationAgreement(SAA).
The IWGCC is chairedby the DeputyMinisterof Environmentandis composed of the representativesof
the Ministry of Environment, the Ministry of Energy and Industry, the Ministry of Transport and
Infrastructure, the Ministry of Health, the Ministry of Education, the Ministry of Foreign Affairs, the
Ministry of Agriculture, Rural Development and Water Administration, the Ministry of European
Integration, the Ministryof Finance,Ministryof InteriorAffairs, the Ministryof Urban Developmentand
Tourism and the Ministry of State on Local Affairs.
The Ministryof Tourismand Environment(MTE),however,lackssufficienthumanresourcestocoverthe
entire range of activities and commitments under UNFCCC and the EU acquis. Moreover, climate
awareness in general and cooperation among all relevant stakeholders remains low. No systematic
government measures are currently being implemented to improve education and raise awareness of
climate change mitigation, adaptation,impact reduction and early warning. According to the national
climate change strategy’s national action plan, the limited awareness of climate change at the level of
policymakingandpublicrecognitionhampersastrongnational actionplanprocess.Climate changepolicy
still ranks relatively low on the political agenda. However, several initiatives and actions to improve
awareness have been introduced by different stakeholders.
The institutions involved, such as sectoral ministries, inspection authorities,NGOs, etc., must be better
equippedtoensure the integrationof environmentalandclimate change objectivesintonational policies
in all relevant sectors.
3.3.2. Accredited entities operating in Albania and their specific roles
GCF funds can be exclusively accessed through accredited entities (AEs) that submit project proposals.
Three modalities apply:
i) International access through international AEs, whereby monitoring, management and
implementation are conducted by the respective international AE;
ii) National access through national AEs, whereby the three functions are conducted by the national
AE; and
iii) Enhanced direct access, whereby the management and implementation are conducted by the
national AE, and fund oversight is delegated to an international AE;
To preventandavoid harmtothe environmentand populations, GCFrequires thepotentialcandidateAEs
to have demonstratedcapacitiesinidentifyingandcategorizing,managingandevaluatingenvironmental
and social risksthat may arise during the implementation of projects and programmes funded by GCF.
21 Order No. 155 of25 April2014“On establishment and functioning ofthe Inter-Ministerial Working Groupin thefieldofClimatic Changes
(IWGCC)”

28
All interested stakeholders seeking to be accredited by GCF must meet minimum requirements. This
qualifiesthemforthe actual accreditationprocess.Forthispurpose,potential AEsmustdemonstratethe
following:
- Legal status,i.e. theymust be a legallyestablishedentityinaccordance withnational legislation
and demonstrate capacities to independently undertake legal activities related to GCF
accreditation;
- Institutional capacities(proceduresandpolicy) to carry out activitiesrelatedtothe accreditation
process;
- Have a track record of minimum three years, demonstrating their capacity to implement the
respective procedures and policies. They must furthermore demonstrate relevant experience in
implementing climate-related projects and fund management of national and international
sources;
Within the framework of Albania’s readiness project, a review of the potential entities seeking
accreditation by GCF was performed based on desk research. The revision included entities from the
private sector, financial institutions and non-government institutions.
Private sector engagement in climate mitigation and adaptation projects in Albania is negligible. The
leading green investment sectors are few, namely energy, construction and food processing.
Electric power sector: Investments in wind parks and biogas facilities were the result of a regulatory
framework (Energy Development Strategy and National Renewable Energy Action Plan) that envisaged
the increase of the RES share in gross final consumption up to 27 per cent by 2020.
This could represent the foundation for those entities seeking accreditation from GCF as direct access
entities. Moreover, due to very demanding fiduciary standards, large corporations and national
commercial bankshave beenrecognizedascandidatesthat mightmeetGCF requirements. Accordingto
the results of the desk research, almost none of the assessed potential candidates has the necessary
experience in the implementation of climate mitigation and adaptation projects, or their experience in
this field is very basic. However, it should be noted that it was not possible to determine whether all of
the above-mentioned requirements were met by the potential candidates due to limited availability of
information and data.
It is therefore recommended to use readiness support to conduct an in-depth analysis which would
include interviews with potential candidates to collect the necessary information and documents to be
analysed in detail. During the interviews with potential candidates, they should be provided with any
relevantinformation aboutthe possibilitiesandbenefitsof Albania’sengagementwithGCF, andhowGCF
financial resources can be accessed by the private sector.
The international AEs operating in Albania are listed in Table 5, including their area of focus and their
engagement in the country in relation to GCF.
Table 13: Relationships with existing accredited entities and relevant partners

29
Entity/
partner
name
Area(s) of focus Engagement in country Efforts to
strengthen
engagement
UNDP Povertyalleviation,
democraticgovernance
and peace-building,
climate change and
disasterrisk,and
economicinequality
The UNDP-AlbaniaCountry
Programme outlinesfourpillars:
democraticgovernance and rule
of law;promotingsocial
inclusionandthe rightsof
vulnerable communities;
ensuringthatyoungwomenand
menhave opportunitiesand
skills,and environmentand
climate change
Mainstream GCF
fundinginto
annual work
plans
UNEP Provide leadershipand
encourage partnershipin
environmental protection
by inspiring,informing
and enablingnationsand
peoplestoimprove their
qualityof life
Environmentand climate change Mainstream GEF
and GCFfunding
into annual work
plans
World
Bank
Livelihoodsand
communityresilience
The current WorldBank Group
(WBG) programme inAlbaniais
guidedbythe CountryPartnership
Framework(CPF) forFY15–20
Restructuring and
formalizationof
work plans and
support to
mainstream
effortsin
developmentand
planning
processes
EBRD Sustainable development
of the private sector,
buildingonstrong
entrepreneurialspiritin
the economy,enhancing
the commercializationof
infrastructure projects
and promoting
sustainable energyand
environmentallysound
investments
EBRD is currentlyimplementing
twoprogrammeson
environmental protection, one of
whichis partly financed byGCF.
The programme supportsthe
developmentof a GreenCity
ActionPlan("GCAP") toidentify,
benchmarkandrank
environmental challengesin cities
and to furtherprioritize
investmentsandotheractivities
to addressthose challenges.
To promote the
transition
towards a
sustainable,open
market economy
and to foster
innovation.Its
work includes
project
investment,
technical
assistance,
institutional
capacity-building,
and policy

30
advisory services
GIZ Rural development
Sustainable infrastructure
Governance anddemocracy
Environmentandclimate
change
Economicdevelopmentand
employment
GIZ in Albaniaaddresses the
country’s unemployment. A more
competitiveprivate sectoris
crucial for effectively tackling
unemployment.Inthe agriculture
sector,programmes contribute to
improvingproductivityaswell as
the economicperspectivesof
people livingindisadvantaged
regions.Otherfocusareasare
shortcomingsinwatersupply. GIZ
alsosupportsAlbaniain
environmental issues, focussing
on reducingpollutionfromsolid
waste,protectingbiodiversity
fromoveruse of landand
preventingfloods
Mainstream GEF
and GCFfunding
into annual work
plans
ADA Fightingpoverty,ensuring
peace and preservingthe
environment:these are
the three keyissues
promotedby the Austrian
DevelopmentAgency
(ADA),the operational
unitof the Austrian
Development
Cooperation.ADA
currentlyfundsprojects
and programmeswitha
total volume of EUR 500
milliontoimprove living
conditionsindeveloping
countries
ADA assistsAlbaniainconverging
national standardswithEU
guidelines,especiallyinthe areas
of publicadministration,human
rightsand the watersector,while
alsocontributingtothe
advancementof regional
developmentinthe country
Mainstream GEF
and GCFfunding
into annual work
plans

31
3.3.3. Identification of the country’s readiness needs
The national strategiesandplanshave identified several needs thatmust be met to empowerAlbaniain
its efforts to devise and implement environmental protection and climate change interventions.
The most pressinggapsand weaknessesof the institutional frameworkatnational level thatneedto be
addressed are:
a. Lack of institutionalmanagementcapacity andclearprocessesforthe collectionandupdating of
data onrisksandvulnerability,andforthe elaborationandprioritizationof adaptationmeasures;
b. Insufficient integration of climate change-related impacts and risks in planning processes and
budgets (at the national, sectoral and local planning levels);
c. Lack of awareness and capacity of sectoral ministries on climate change issues;
Table 14: Potential readiness project for Albania
Readiness request
name
Description Estimated
GCF
financing
($US)
Estimated
co‐
financing
($US)
Deliv
ery
part
ner
Estimated
submission
2021
2022
2023
1 Preparation projects
including
opportunitiesto use
Green Recovery
Readiness
Albania is expectedto work
out the impact of COVID-19
on climate change and
developa national strategy
for green resilient recovery,
in additionto concept
notes with pre-feasibility
studies for up to three
priorities.
$300,000 $ - Urban
Research
Institute
X
2 Identification of and
support for
potential
national entities
seeking GCF
accreditation
Identifyingand supporting
potential national entities
in accessing and utilizing
GCF resources efficiently
and effectivelyin Albania
$350,000 $ - Urban
Research
Institute
X
3 Capacitysupport for
the preparationof
$300,000 $ - X
FAO Conservationand
managementof natural
resources;disasterrisk
managementandclimate
change adaptation
The current FAOprogramme in
Albaniaisguidedbythe Country
ProgrammingFramework(CPF)
2015–2017
Mainstream GCF
fundinginto
annual work
plans

32
the Concept Note
for Forest Projects
4. Multi-stakeholder engagement
4.1 Stakeholder engagement
Stakeholderengagementisakeycomponentof environmentaland socialpolicy andappliestoallactivities
financedbyGCF, as well as to bothprivate and publicsectorAEs. Thisincludesprojectsdirectlyfinanced
by GCF, as well as the many subprojects supported and implemented through GCF-supported
programmes, financing frameworks and financial intermediaries (FIs).
GCF encouragesgovernments,i.e.NDAs, toengage inregulardialogueswithkeystakeholdersaboutGCF
activities and plans, including stakeholders involved in the ESS and gender aspects.In that respect, GCF
facilitates the establishmentof mechanismsforeffective communicationandengagementbetweenGCF,
NDA and the identified key national stakeholders.
Stakeholder engagement, which was part of the readiness project, ensured that the necessary
consultative processeswithnationalstakeholderswere carriedouttofosterthedevelopmentof capacity,
engagement and ownership, as well as the required participatory approach in the decision-making
processes.
The stakeholder engagement framework and process were guided by the following principles:
1. Multi-stakeholder approach: this approach aims to establish ownership among all relevant
stakeholders, which is crucial for the success of the GCF process in Albania and can be achieved by
implementing a multi-stakeholder and consultative process involving all relevant stakeholders and
sectors;
2. Programmatic approach: this approach implemented the stakeholder engagement process in
Albania. Stakeholder meetings and forums were used to actively engage stakeholders in climate
finance/GCFasmuch as possible toensure itssustainability,toreduce or avoidduplicationof efforts
and promote coherence in operations;
3. Noconflictof interestof the stakeholdersinvolvedinthe GCFprocess: the stakeholders’ engagement
framework ensured that no conflicts of interest arose among the stakeholders involved in the GCF
process;
4.2 Stakeholder consultation events
The key stakeholders were identified during the implementation of the project, the communication
mechanismwasestablished anda seriesof meetingswere heldin2019 and 2020. Three meetings were
conducted from April to July 2019:
 The National Kick-off Meeting of the GCF Readiness Project on 2 April 2019;
 The First National Multi-Stakeholder Meeting on 4 July 2019; and

33
 The Second National Multi-Stakeholder Meeting on 5 July 2019;
Between April–May 2020, one stakeholder meeting and five workshops were held to calibrate the
prioritization and coordination mechanism of GCF, including:
 The Third National Multi-Stakeholder Meeting on 16 April 2020;
 The First BreakoutSession:Energy Efficiency ImprovementsinPublic Buildings on 28 April 2020;
 Second Breakout Session: Climate Resilient Agriculture on 29 April 2020;
 Third Breakout Session: Adapted Water Management on 30 April 2020;
 Fourth Breakout Session: Green Cities on 5 May 2020;
 Fifth Breakout Session: Forestry on 6 May 2020;
The main objectives of the National Stakeholder Consultation Events were to:
• Inform relevant stakeholders on the activities and expected results of the project;
• Consultrelevantstakeholdersonthe coordinationandprioritizationmechanismandprioritization
criteria for projects developed to be submitted to GCF;
Publicly discuss various topics/issues related to the preparation for cooperation with GCF.
During these events a total numberof 80 personswhere consultedfromthe beginningof the project.A
total of 41 institutions have been consulted from which 5 governmental institutions, 7 international
stakeholders, 11 other national institutions such as agencies, universities and institutes, two private
businesses and 16 NGOs.
4.3 Priority project identification process
For the CountryProgramme to make the mostof possible opportunitiestoachieve the NDC,a publiccall
for projectideasubmissions forpotential fundingbyGCFwas announcedinOctober2019. With thiscall,
the CountryProgramme couldbe supplementedbyidentifyingnewpotentialprojectsand research areas
(35 projectideas were submitted).The call confirmedthe private sector’sinterest,interalia,butalsothe
need to further strengthen the capacity to use the Fund’s resources at national level.
The public call for project idea submissions, as well as calls and information on the workshops, were
publishedon the website of the Ministry of Environment and Tourism, as well as under the following
address: www.turizmi.gov.al.

34
4.4 Discussions andresults
The meetings aimed to identify the needs for capacity-building of the institutions to be involved in the
forthcoming cycles of Country Programme drafting, as well as in the process of evaluating potential
projects by 2025.
The conclusions derivedfrom these consultations thattookplace at the level of governmentinstitutions,
as well as from proposals onactual prioritiesforinstitutional organizationrequiredforcooperationwith
GCF and the firstdrafts thereof,were presentedat two stakeholderworkshops. Aninitial workshopwas
held at the beginning of the preparation process.
The GCF requirements and investment criteria and the process of evaluation of project ideas presented
at an event held on 16 April 2020. However throughout the process of the preparation of the CP as
mentionedinthe aboveparagraphsthe projectideashave beendiscussedwith 41institutionswithatotal
of 81 stakeholders (cf. Annex 4) resulted in the current content of the Country Programme.
5. Country agenda and GCF engagement
5.1 Summary of national prioritiesin the context of GCF result areas
An analysis of the main strategic documents on climate change and sustainable development in Albania
was conducted along GCF result areas for mitigation, adaptation and cross-cutting. The documents
analysed included:
 National Strategy for Development and Integration (NSDI II 2015–2020);
 Third National Communication to the UNFCCC (2016);
 Intended Nationally Determined Contribution (INDC) (2015);
 National Strategy on Energy 2030;
 Second and Third National Energy Efficiency Action Plan (NEEAP) 2018-2030;
 National Action Plan on Renewable Energies for the period 2015–2020;
 Draft National Transport Sustainable Plan;
 National Integrated Water Resource Management Strategy;
 Inter-sectorial Strategy for Agriculture and Rural Development 2015–2020;
Albaniahasspecifieditsobjectivesinthe INDCunderthe ParisAgreementuntil 2030.The mostimportant
sectoral policies and strategies define the priority activities until 2025. To comply with the officially
establishednationalpriorities,thisProgrammeoutlinesthe frameworkandprioritiesforcooperationwith
GCF until 2025.
Drawing on the sectoral and climate change documents (the open call for project proposals, INDC, the
National StrategyforClimateChangewiththe ActionPlan,the National Communicationsand the Biennial
Update Reports, the first draft NAP), key sectors have been identified in terms of:
 Climate change mitigation(withregardtocontributiontototal GHGemissions):the energysector
(whichincludestransportaccordingtothe IPCCmethodology),primarilycombustionof fuel;and

35
 Climate change adaptation: agriculture, water resources and hydrology and forestry;
Based on a cross-reference of all of the above-mentioned documents,the national priorities on climate
change were categorizedintoGCFresultareas.The resultsof thisanalysis werealsousedtofeedintothe
prioritizationof project ideas to ensure that they are in line with the national priorities to attain the
climate change objectives.
Table 15: National priorities on climate change in GCF result areas
MITIGATION
Promote energyefficiency
Promote sustainabletransport
Environmentallyfriendlyvehicle system/efficienttransport
Promote sustainablerenewable energy sources
Promote lowemissions insustainablefoodproduction
Integratedwaste management
Forestmanagement
Increase the carbonsinkpotential andprotectionof carbonstocksin terrestrial and
marine ecosystems
ADAPTATION
Integratedwaterresource management/ flood protection
Coastal ecosystemsmanagement
Climate-resilientirrigation, drainage andfloodprotection
Sustainable agricultural intensification/adaptedfarmproduction
Sustainable landuse planningandmanagement/ population and settlements
Upgradingcivil defence preparednessanddisasterriskreduction
Climate proof infrastructure
Promote implementationof AdaptationStrategyforHealthSector
CROSS-CUTTING
Sustainable tourismdevelopment
Housing/greencities/ initiative formunicipal adaptation
IntegratedCross-sectoral Planforthe Coast(ICPC)
Establishdatacollectionand monitoring,reportingandverification(MRV) systemsfor
annual GHG inventoryincompliancewith the EUand UNFCCCreportingrequirements
As of December 2020, only one cross-cutting project is financed in Albania through the Green Cities
Project, implemented by the European Bank for Reconstruction and Development (EBRD). The total
amountof the projectis USD 306.4 millionand aimstominimizethe environmentalimpactandmaximize
opportunities to improve and support the natural environment. The Green Cities Project in Albania will
invest USD 11.5 million and will focus on:
 The energy sector; and
 The water and waste water sector;

GCF Country Programme for Albania

GCF Country Programme for Albania

Recommended

Recommended

More Related Content

Similar to GCF Country Programme for Albania

Similar to GCF Country Programme for Albania (20)

Recently uploaded

Recently uploaded (20)

GCF Country Programme for Albania