BEST PRACTICES FROM FINLAND'S ENERGY AND

UNCLAS HELSINKI 001236 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ENRG SENV EUN FI SUBJECT: BEST PRACTICES FROM FINLAND'S ENERGY AND ENVIRONMENT PARTNERSHIP IN CENTRAL AMERICA ¶1. (U) Summary: In 2002, Finland established a unique Energy and Environment Partnership with Central America, inspired by U.S. private-public partnership concepts, which aims to reduce greenhouse gas emissions by promoting the sustainable use of renewable energy sources and clean technologies. To date, the Government of Finland has pledged 7 million euros to support over 100 promising renewable energy projects in Central America that would otherwise lack necessary funding. Finland has created a streamlined approval process that relies upon locally employed staff in Central America and a Steering Committee of Finnish and Central American government officials charged with evaluating the financial feasibility and impact of each project. End summary. ¶2. (U) The Finnish Ministry for Foreign Affairs (MFA) in coordination with the Central American Commission on Environment and Development (CCAD) and the Central American Integration System (SICA) launched the Energy and Environment Partnership with Central America (EEP) to support the development of renewable energy projects in the seven Central American countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. According to Dr. Markku Nurmi, Director General for Sustainable Development at the Finnish Ministry of Environment, Finland sees the EEP as a tool for reducing greenhouse gas emissions and mitigating the negative effects of climate change. Considered part of Finland's global sustainable development aid, Nurmi said U.S. leadership on private-public partnerships encouraged Finland to propose the EEP during the 2002 United Nations World Summit on Sustainable Development in Johannesburg. The EEP is actively working to identify and implement sustainable development projects using renewable energy sources such as biofuels, hydroelectric, solar, wind, and geothermal technologies. EEP Project Funding and Meetings -------------- ¶3. (U) The Finnish MFA has pledged 7 million euros to support over 100 renewable energy feasibility studies and pilot programs throughout Central America. The EEP primarily interacts directly with companies interested in pursuing energy projects, rather than governments in the region. The EEP has been especially effective in promoting small and medium-sized energy projects that often are overlooked by traditional funding sources such as local banks. In each case, following an initial project feasibility study, the EEP works with regional financial institutions to secure funding. Financing is currently proceeding for the first energy producing project, a wind farm in Guatemala that is expected to be operational in 2009. ¶4. (U) The EEP also sponsors biannual meetings for government and private sector stakeholders on key renewable energy topics. A February 2007 meeting in Guatemala will include workshops on financing renewable energy projects, as well as discussions on converting sewer waste into burnable gas. An October 2007 meeting in Belize will focus exclusively on energy from sewer waste. Finland welcomes U.S. participation at any EEP meetings. Additional information can be found at: http://www.sica.int/busqueda/busqueda_basica. aspx?Id Cat=47&IdMod=8&IdEnt=117&Idm=2&IdmStyle=2 Secrets to Success: Finland's Partnership Strategy SIPDIS -------------- -------------- ¶5. (U) With over 100 projects under way, the EEP has been successful in generating projects largely because of Finland's pragmatic strategy that focuses on results rather than red tape. Nurmi said the first step is to employ local professionals (rather than sending Finns to Central America) who can evaluate proposals while working side-by-side with project coordinators. Second, before funding is granted, each project must be approved by a Steering Committee that includes government representatives from the Environment and Energy Ministries of the seven countries in the region and Finland. Government involvement on the Steering Committee guarantees high-level government support without extra layers of bureaucracy. Third, all project proposals are evaluated locally using a pragmatic, results-driven scale that measures the economic, social and environmental impact of each project, as well the possibility of replicating the project elsewhere. If a project cannot be shown to be financially feasible and self-supporting, it is quickly eliminated from consideration. Fourth, the EEP is administratively lean, removing barriers that would typically discourage small to medium-sized projects. ¶6. (U) Comment: The Energy and Environment Partnership exemplifies the typical pragmatic Finnish approach; one that focuses on "rolling up your sleeves and getting something done." Similar to the U.S. approach, the EEP uses technology to address climate change issues on a regional basis. End comment. WARE