This document provides background information on Papua New Guinea's FREAGER project, which aims to address increasing greenhouse gas emissions from non-LULUCF sectors by facilitating renewable energy and energy efficiency applications. It outlines the four main components of the project: developing an energy policy framework; applying renewable energy and energy efficiency technologies; financing renewable energy and energy efficiency projects; and enhancing energy awareness. It also discusses barriers to renewable energy and energy efficiency in PNG and how the project would help overcome these barriers through activities like policy reform, capacity building and technology demonstrations.

1. HIGHLY CONFIDENTIAL
Not to be quoted without permission of the Office of Climate Change and Development of Papua New Guinea
Climate Change and Development Authority
Papua New Guinea
Background and Overview of
FREAGER Project
For presentation during the FREAGER Logical Framework
Analysis Workshop, March 7, 2016, CCDA Conference
Room, 4th Floor, Avara Annex Building

2. 1
GoPNG’s Participation in FREAGER
Project
GoPNG’s Efforts in addressing
Climate Change
Project Overview - Main Components
of FREAGER Project
Outline
1
2
3

3. 2
What is Climate Change?
To address Climate Change…
Why the Government is participating
in the FREAGER Project?1

4. 3
Forestry and agriculture is the biggest driver of emissions in PNG
SOURCE: REDD+ technical working group
1 Estimate of 2010 extrapolated from 2008/09 data
2 Exact emission for 2010 still to be verified
10
3
6
28-43
68-69Logging
Commercial
agriculture
Subsistence
agriculture
2010 emissions1
Mt CO2eDriver of emissions
Agriculture
leases2
Everything
else
Land use, land
use change and
forestry (LULUCF)
contributes ~95%
of total emissions
in PNG
~95%
PNG’s total global
emissions
˂ 1%
More than 50% of PNG’s land area is
covered by primary rainforest i.e. ~29
million ha (~ size of Italy)

5. 4
FREAGER Project aims to address the increase in GHGs
emissions in the Non-LULUCF Sectors.

6. 5
1. Strong Political Will;
2. Establish Institutions to coordinate its
efforts;
3. Development Climate Compatible
Development Strategy;
4. Interim Action Plan;
5. Develop Climate Compatible
Development Management Policy 2014;
6. Develop Climate Change (Management)
Act 2015;
7. Visible in all national, international, and
regional negotiation.
PNG Climate-Compatible
Development Strategy
combines economic
development with
mitigation and adaptation…
GoPNG’s efforts in addressing Climate
Change in the country…2

7. 6
PNG’s involvement in Climate Change – National & International
Year Events
1992 PNG was a Party to the first UN Conference on Environment and Development hosted by Brazil in
Rio de Janeiro. This gives birth to the Climate Change Convention, the Kyoto Protocol (1997), Agenda
21 and the Convention on Biological Diversity.
1993 PNG Signed the UN Framework Convention on Climate Change in June and ratified it in April.
1997 PNG signed the Kyoto Protocol when it was adopted in Kyoto, Japan on 11th December 1997.
2000 PNG ratified the Kyoto Protocol, also completed its Initial National Communication.
2002 PNG submitted its Initial National Communication to the UNFCCC.
2005 PNG and Costa Rica introduces avoided deforestation (or REDD) into the UNFCCC negotiation
process. Kyoto Protocol entered into force on 16th February 2005. PNG Chair CfRN.
2007 PNG ensures REDD be part of the Bali Action Plan or Roadmap.
2008 GoPNG established OCCES in September.
2009 Launching of the Vision 2050 in November.
2010 Establishment of OCCD and the endorsement of the Climate Compatible Development Strategy
and its Interim Action Plan. Start of Sectoral Policies reforms.
2014 The National Climate Compatible Development Management Policy endorsed by Cabinet in July.
Work on draft Climate Change Bill starts.
2015 • Climate Change (Management) Act 2015 endorsed by Parliament in July, and certified on 20th
November.
• PNG submit its Intended National Determined Contributions.
• PNG signed the Paris Agreement – REDD+ was captured as a standalone in Article 5.

8. 7
Policy & Legal Framework that support Climate Change

9. 8
GEF-6 Funding on Mitigation of Climate Change
Project Title: Facilitating Renewable Energy &
Energy Efficiency Applications for
Greenhouse Gas Emission
Reduction (FREAGER)
Amount: US$3 million
Funding Agency Global Environment Facility (GEF)
Project Objective: Enabling the application of feasible
renewable energy and energy
efficiency technologies for
achieving greenhouse gas
emission reduction in PNG.
Funding Components – FREAGER Project
Project Overview

10. 9
Four (4) Main Project Components - FREAGER
No. Project Component Financing
Type
Project Outcomes
1. Energy Policy and
Institutional
Framework
Development
Technical
Assistance
Implementation of approved
national energy policy, and
enforcement of supportive
policies, rules and
regulations on low carbon
(LC) development that
includes the application of
renewable energy and
energy efficiency in energy
generation and energy-end
use sectors.
Component One

11. 10
GEF Project – Cont.
No. Project
Component
Financing
Type
Project Outcomes
2. Renewable Energy
& Energy Efficiency
Technologies
Application.
Technical
Assistance
Enhanced technical viability
and capacity in the application
of energy efficiency
technologies and development
of feasible RE-based energy
systems (electricity and non-
electricity production) in the
country.
Investment Increased installed capacity of
RE-based energy systems
(electricity and non-electricity
production) and
implementation of viable
energy efficiency technology
applications in the country.
Component Two

12. 11
GEF Project – Cont.
No. Project
Component
Financing
Type
Project Outcomes
3. Financing of
Renewable
Energy and
Energy Efficiency
Projects
Technical
Assistance
Improved availability of, and
access to, financing for
renewable energy and energy
efficiency initiatives in the energy
generation and energy end-use
sectors.
Component Three

13. 12
GEF Project – Cont.
No. Project
Component
Financing Type Project Outcomes
4. Energy
Development &
Utilization
Awareness
Enhancement.
Technical
Assistance
Improved awareness and
attitude towards renewable
energy and energy
efficiency applications in the
energy generation and
energy end-use sectors.
Component Four

14. 13
Policy,
Regulatory
and
Institutional
Barriers
• No National Energy Policy – which should embody the aspirations and plans of PNG in the area of energy development
and utilization in support to the country’s sustainable economic development and of the country’s climate change
mitigation targets.
• Unclear energy regulatory framework
• Lack of clear and appropriate policies on energy development and utilization;
• Inadequate enforcement of existing energy-related policies and strategies, inclusive of the supporting rules/guidance and
legislations/regulations.
• There is little interaction among the entities involved in energy in terms of data sharing or cross-checking, with the result
that it is very difficult to create an accurate picture of the sector needed to regulate the sector effectively and understand
the opportunities for improvement. As a result of these, there is lack of support from national and provincial governments
on EE at all levels of government including communities.
Technical
Barriers
• The main barrier is the lack of collective technical capacity in the country to identify, prioritize and plan, design, engineer,
implement, operate and maintain EE-based energy systems that are essential for sustainable development.
• There is poor knowledge of available EE technologies and how these will be appropriately applied, and there is also very
limited knowledge of the country’s EE potentials to reduce costs and other development barriers.
Financial and
Market
Barriers
• In PNG most of the EE and RE initiatives are from the government or from donor agencies.
• Many of the installed RE-based power generation projects in the country are funded through bilateral and multi-lateral
donor funds.
• There are very limited initiatives by the general public and the private sector to implement EE and RE projects in PNG.
• The development and implementation of RE and EE (or even the practice of EE) among the general public is often
hampered by their limited: (1) knowledge of planning, designing and implementing it; and (2) financing it. Financial
support for EE and RE initiatives is generally lacking from the government and private sector (banks/financial institutions).
• No financial incentives for the implementation of projects on the application of EE and/or RE technologies.
• There are also market-related barriers that contributes to this main financial barrier such as – (a) limited financial
resources in rural communities; (b) small market size in places where there are available RE resources; (c) absence of
commercially available EE/RE equipment in the local market; (d) dispersed load and market centres for RE-based energy
systems; and lack of productive demand for electricity in rural areas.
RE & EE
Awareness
Barriers
• There have been many projects on EE and RE that were implemented in the past and most of these have included
information dissemination and awareness raising activities. The GoPNG has also advocated for the application of RE
technologies and EE techniques and practices. However, the impact in terms of the attitude of the general public as well
as with the national and local government authorities, have not significantly changed.
• Widespread application and practices of RE and EE initiatives still remains much to be desired in the country.
• The level of knowledge of applying EE & RE technologies is low in PNG and so is the knowledge of opportunities and
obstacles to the application RE technologies for productive and social uses.
• This is further exacerbated by the limited training available from the government and learning institutions in the country on
EE/RE technologies, inadequate information about the magnitude and availability of available RE resources, and lack of
information about energy annual production, supply, and distribution and consumption in the country.
Barriers to Renewable Energy & Energy Efficiency Applications in PNG

15. 14
Incremental Cost Reasoning
 The Project will look at enhancing the baseline initiatives of the country
including added features that will facilitate the enhanced utilization of the
country’s RE resources, as well as improved energy efficiency features
(practices, techniques and technologies).
 Most of the incremental activities of the project are the barrier removal
activities that the project will carry out particularly those that the country will
not be, or presently does not have the capacity for, addressing these
barriers.
 Incremental support activities are necessary to facilitate the demonstrations
and piloting of the process and procedures involved in integrated energy
planning, application of the energy-saving techniques and technologies
that will encourage the major stakeholders in the various energy end use
sectors to embrace, and support these.
1) Policy, regulatory and institutional barriers
2) Technical barriers
3) Financial and market barriers
4) RE and EE awareness barriers

16. 15
Global Environmental Benefits
Proposed Project is developed within the context of sustainable development in PNG –
bring about local benefits mainly through its contribution to:
• Improvement of living conditions of people in rural communities thereby allowing them to contribute
more productively to the economy;
• Protection of natural environment;
• Improvement in the welfare and well-being of women and children;
• Diversification of the resources base of the economy;
• Improvement in the country’s foreign exchange reserves due to reduction in petroleum products
import bill that will brought about by substitution of fossil energy generation by indigenous
Renewable Energy resources, etc.
1
Proposed project would contribute to GHG emission reductions from fossil fuel
displacement by Renewable Energy resources in electricity generation;
GHG emission reductions would come from: (1) Direct emission reductions from completed Renewable Energy-based
power generation initiatives that the project will facilitate and enable, as well as from the Energy Efficiency technology
application demonstrations and replications; (2) Indirect Emissions reductions from follow-up Renewable Energy and
Energy Efficiency technology application projects in the country as influenced by this project.
Improvement of the specific energy consumption of each energy end use sectors in PNG
through improved energy utilization efficiency.
2
3

17. 16
Innovation
The project will use a programmatic approach to:
• Planning and implementing community-based
application of RE and EE technologies;
• Integrated energy planning and policy
implementation; and; and,
• The design and implementation of low carbon
development.
….is the main
innovative feature of
the proposed project,
which is unlike the
current initiatives that
are focus more on the
construction of RE-
based power
generation units to be
operated by PNG
Power Limited.
The facilitation of the reforming of the institutional framework and mechanism
for the regulation of the energy sector and enforcement of energy policies
and regulations that support RE and EE applications and low carbon
development.
1
2

18. 17
Sustainability
 The project will look at helping ensuring sustainability of existing
policy/regulatory frameworks and mechanisms to facilitate widespread
applications of RE and EE technologies;
 Towards the end of the project lifetime – a suitable follow-up action plan will be
developed for approval and enforcement to further ensure sustainability of these
enabling environments, the appropriate actions to ensure sustainability of the
policies, regulations and institutional frameworks that will establish and
enforce/implement.
Potential for Scaling-UP
 The demonstration of the application of such technologies/techniques that
will be among the interventions that will be carried out can be replicated in
other areas of PNG were communities are keen in improving their energy
security.
 Best practices that will come out from the interventions that will be carried out
in the project can also be shared with other PICs and SIDS with similar
circumstances as PNG.

19. 18
Stakeholder Participation
The proposed project will include participation of relevant
stakeholders:
1) Government – CCDA, DPE, PPL, etc.
2) Private – ESCOs, IPP, etc.
3) Non-Governmental Organisations
4) Civil Society Organizations
5) Community Groups

20. 19
Gender Considerations
The proposed project will take into account issues of gender balance or equality:
 Will look at involving women working in both management and technical
departments of PNG Government agencies/institutions who can play an
important role in the design, development and implementation of the proposed
project;
 Also important as it provides the opportunity for the country to further enhance
the role of women in deployment of low carbon technologies and mitigation
options, and come up with gender-sensitive policies in the energy sector and
energy end-use sectors of PNG;
 Recognizing the possible contributions of women in the management and
implementation of climate change mitigation measures; and,
 Also the design and preparation of the project will take into account the
contributions, impacts and benefits of community based RE and EE
technology application, including children and the vulnerable members of the
community.

21. 20
Consistency with National Priorities
1. Consistent with the PNG’s ongoing efforts to finalize and implement a
National Energy Plan (NEP);
2. In line with the country’s Second National Communications and PNG’s
INDCs to the UNFCCC, particularly in specific actions and policies related to
RE and EE applications in supporting economic and social development;
3. The project is in accord with the country’s National Climate Compatible
Development Management Policy that aims to achieve the following targets:
a) 50% GHG emission reductions by 2030; and,
b) become carbon neutral before 2050.
4. The project is consistent with the governments target to achieve 70%
nationwide electrification by 2030.
5. Project is fully consistent with PNG’s national strategies (Vision 2050, DSP
2010-2030, MTDP 2010-2015, The Strategy), and will contribute to the
achievement of the national energy saving and climate change mitigation
targets.

22. 21
Knowledge Management
Considering the current capacity of the country in designing and implementing EE and RE
projects, the knowledge management system that will be employed in the project consist of:
1. The conduct of training courses for pertinent personal in the energy and utilities
sector, as well as those in rural communities;
2. There will be special mentoring sessions for specific group of staff who will be
carrying out the operations and maintenance of the various demo/pilot installations
that are part of the project – The mentored staff will form the cadre of in-house
experts in key government agencies that will be involved in the project;
3. An information network will be established and operationalized for the promotion and
dissemination of knowledge on low carbon development within and outside the
country;
4. As part of the design, establishment and operationalization of an energy supply and
consumption monitoring and reporting, a database development and maintenance
will be carried out;
5. The aspect of knowledge management, which involve the drawing on information
from wide variety of sources, will be implemented, not only for the purpose of the
country’s energy planning but also to achieve an organized usage of knowledge
about the energy situation in the country.

23. Thank you
Danny Nekitel
Manager Mitigation & Low Carbon Growth
Email: dan.nekitel@gmail.com