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
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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.

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