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AC/PSI/PPCOM/R3 2013.12.18

ARCTIC COUNCIL PROJECT SUPPORT INSTRUMENT Preparatory PSI Committee meeting Helsinki, 17-18 December 2013 REPORT OF THE THIRD PREPARATORY PSI COMMITTEE (PPCOM) MEETING INTRODUCTION

1. The Third PPCOM meeting was held at the headquarters of the Nordic Environment Finance Corporation (NEFCO), Helsinki, from 17 to 18 December 2013 in response to the Invitation sent out by NEFCO as Fund Manager of the Project Support Instrument (PSI) on the 14th of November 2013. The meeting was attended by representatives of the following Contributors (Annex 1): Finland, NEFCO, Norway, Sámediggi, Sweden, the Russian Federation and the United States of America. Contributor Iceland was unable to attend.

AGENDA ITEM 1: OPENING OF THE MEETING

2. The meeting was opened by the Managing Director of NEFCO, Mr. Magnus Rystedt. The PPCOM meeting was informal with the aim merely to have an exchange of views. The main purpose of the meeting was to provide an update and address matters enabling projects to be financed from the PSI once it became operational. Any actual decisions on PSI matters would have to be taken by the ordinary PSI Committee when convened which hopefully could happen in the near future.

AGENDA ITEM 2: ORGANIZATIONAL MATTERS

(a) Selection of Chair of the PPCOM Meeting 3. The PPCOM agreed to select Mr. Magnus Rystedt, NEFCO, to act as the Chair of the PPCOM.

(b) Adoption of the agenda 4. The PPCOM adopted the following draft agenda for the meeting on the basis of the provisional

agenda contained in document AC/PSI/PPCOM/0301_rev1, and as amended orally at the meeting, as follows. 1. Opening of the meeting. 2. Organizational matters: (a) Selection of Chair of PPCOM; (b) Adoption of the agenda; and (c) Organization of work. 3. Status of PSI contributions, PSI Agreements with Contributors and Work in Progress. 4. Other matters. Report to SAO Whitehorse; Informal orientation on additional PSI contributors. 5. Adoption of the report. 6. Closure of the meeting.

(c) Organisation of Work 5. The Chair proposed a time schedule for the work of the meeting whereby substantial items are to

be addressed during 17-18 December 2013. A draft report of PPCOM 3 will be made available by the evening of the 17th of December 2013 for adoption on the 18th of December 2013.

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AGENDA ITEM 3: Status of PSI contributions, PSI Agreements with Contributors and Work in Progress

Status of PSI contributions

6. NEFCO presented the progress on the PSI as documented in document AC/PSI/PPCOM/0302. The PSI trust fund pledges, deposits and allocations currently stand at EURO 15.9 million. As reported to the Ministerial Meeting May 2013, PSI resource allocation for 2013–2015, tentatively, is about 40 per cent for projects on integrated hazardous waste management and POPs, about 25 per cent is allocated for mitigation of mercury and 20 per cent for Short Lived Climate Pollutants (SLCPs).

7. In the above context of overall EURO 15,9 the United States pledge of Award amounts to US$5M where the 1st action pledge is of US$1 M1. The US 1st Action Award is earmarked for diesel related mitigation of Black Carbon (BC) and, subject to US internal routines and clearances, requires full disbursement latest by Q1 2015. PSI Agreements with Contributors/PSI Information Exchange:

8. According to PSI Cooperation Agreement between Russia and NEFCO, a separate contract is to be entered into between the Ministry of Natural Resources and the Environment (MNRE), as the Authorised Governmental Agency (AGA), and NEFCO on the division of responsibilities between AGA, NEFCO and the Russian Execution Agency (REA) for the PSI projects in the Russian Federation. NEFCO, AGA and REA have been working on this since Nov. 2012. The AGA-NEFCO Agreement addressing the divisions of functions and responsibilities was finally agreed to by the MNRE on the 28th of November 2013.

9. The “AGA-NEFCO Agreement” is to be supplemented by two “REA Function Agreements” between AGA and REA and NEFCO and REA. NEFCO has worked to ensure that the three agreements are mutually consistent (both in English and Russian languages). The harmonised package was dispatched by NEFCO, on the 5th of Dec. 2013, to REA for clearance of the REA-NEFCO Function Agreements.

10. The REA’s procedure of ratification of the “Function Agreement” includes clearance of their Legal, Accounts and Audit departments. On 12th of December 2013 REA communicated to NEFCO its agreement on the 2014 REA Budget.

11. Upon agreement with REA on Function Agreement documents and the REA 2014 Budget, NEFCO and REA will respectively submit the relevant agreement(s), on division of responsibilities and the agreed REA 2014 Budget, to the Russian Inter-ministerial Commission of the Arctic Council Project Support Instrument (IMC2), chaired by Deputy Minister of MNRE, Mr. Rinat Gizatulin, for clearance. This is expected to take place by the 27th of December 2013.

12. The agreement process to delineate the divisions of responsibilities and functions has hitherto been a complicated exercise with a number of iterations. The previously agreed to text between NEFCO, AGA and REA had to accommodate the views of the IMC expressed on the 12th of July 2013. Work with current package has strived to incorporate all views that have been adequately expressed. A final clearance by the IMC is expected during mid. Jan. 2014. In such an event, signing of the agreement package can take place by Feb-March 2014 and the first meeting of the PSI Committee (PCOM-1) can be scheduled for March 2014.

13. A comfort letter with a comparison document of the contributors’ agreements will be provided by the FM to the contributors. All PSI agreements will be made available to the Contributors upon written request.

1 Exchange rate ECB 22 Feb. 2012 @1.3222 USD/EURO 2 The Inter-departmental Commission (IMC) comprises of i) The Ministry of Natural Resources and the Environment (as the Russian Authorised Governmental Agency (AGA for PSI); ii) The Ministry of Finance; iii) The Ministry of Foreign Affairs and iii) The Ministry of Economic Development.

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Work in Progress (see Annex 1) In general NEFCO is assessing several projects. Some are of which have been approved as Arctic

Council (AC) projects while other are in the process of being accepted as AC projects.

14. ACAP has communicated to NEFCO on the 9th of December 2013 the status of its projects as presented in Annex 1 of the document AC/PSI/PPCOM/0302. The documentation includes projects that are under implementation and others that are being developed.

15. NEFCO is working on the following actions: • Mitigation of CO2 and SLCP (i.e. Black carbon, methane, HFC, ozone depleting substances) • Management of POPs (e.g. Dioxins, PCBs and obsolete pesticides) • Mercury release reduction (e.g. Non-ferrous smelters, energy lamps, waste management) • Integrated Hazardous Waste Management (waste from household, servicing sector, industry) • Resource efficiency (cleaner production, energy efficiency)

16. Regarding climate change initiatives, the FM is working on the following:

Three SLCP initiatives with respective sub-projects are under development in cooperation with the SLCF Project Steering Group (PSG) and respective bilateral and project partners:

i) Project 1-M: Reduction of Methane Emissions ii) Project 2-BC: Reduction of Black Carbon Emissions iii) Project 3-HFC: Mitigation of HFC (including ODS) Emissions (End-of-Life Equipment).

17. In addition, work is proceeding on Project “2.5-BC-K: Eight Karelian settlements with diesel power”. Some of the sub-projects are also on the NEFCO-AMAP Barents Hotspot list, (as Project Kr 14 & Kr16). Most draft final reports (DFR) have been received. Other DFRs are underway. The DFRs will help NEFCO to develop a detailed Work Plan and budget for the SLCP Projects. Once the FM has confidence that these Project(s) are up to the mark, NEFCO will present them for the PSI financing pipeline. The current allocation from NEFCO to contribute to the development of the above pipeline is about EURO 180.000.

18. Regarding cooperation with Sweden: About 3.3 million SEK (EURO 367 000) is to be available in the SLCF Trust Fund with NEFCO. The SLCF Trust Fund includes an additional allocation of 772 000 SEK that is expected to be made available for disbursement in 2014. Relevant resource allocations for the Trust Fund are under process for considerations and are to include priority projects through the ACAP-PSGs. The allocation from Sweden includes SEK 500 000, to be disbursed during 2014, for mitigation of dioxins and furans, with priority on actions at the Vorkutinsky Cement Plant or other actions suggested by the ACAP PSG on Dioxins.

19. NEFCO Early Start Projects: 12 million Euro to address SLCFs through district heating and energy efficiency and cleaner production projects in NW Russia. The district heating projects may need installation of filtration equipment for black carbon mitigation which may need PSI co-financing. The “Early Start" projects expected to be implemented within the next 1-2 years.

20. Mercury Mitigation (RF, US, NEFCO): Non-Ferrous Metals/Zinc Smelter Project. Estimated budget Euro 3.5 million. Timeline: about 2 years from start of project. A request to MNRE has been sent on the 20th of Nov. 2013 to facilitate a meeting with the Chelyabinsk Zinc Smelter management. Sweden has allocated SEK 220.000 to contribute to a workshop, during 2014, on mercury within the ACAP PSG project on Non-ferrous Smelter Project.

21. PCB Management (RF, US, NEFCO): PCB management and destruction. Budget about Euro 3 million. The Project is on hold awaiting PSI mobilization. A second initiative during Q2 2013 pertains to Franz Josef Land. A NEFCO-BHSF Study is underway for which EUR 30.000 has been allocated by NEFCO and the project is to include development of a Project Proposal for submission to ACAP- PCB PSG. The project is awaiting results of analyses carried out during Q2-Q3 of 2013.

22. PPCOM-3 noted that

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a. NEFCO, AGA and REA are expected to sign on the necessary contractual agreements called for by the Russia-NEFCO Agreement on PSI Cooperation during January-February 2014. The operationalization of PSI is expected in the first quarter of 2014 and be based on the agreed to 2014 Budget of the REA and a tentative PSI resource allocation as reported to the May 2013 Arctic Council Ministerial.

b. NEFCO will present to the Spring SAO 2014 Meeting the conclusions on the agreements with the AGA and REA regarding the division of responsibilities, functions, budget and tentative resource allocations and next steps under-way.

c. The first PSI Committee Meeting (PCOM) is expected to be held during February-March 2014 in Helsinki. NEFCO will invite the Contributors to the 1st PCOM as soon as it receives the information from AGA that the IMC has cleared the agreement package including REA’s budget and work-plan.

d. The Fund Manager will proceed with further elaboration of a “PSI Primer” including how NEFCO works with Arctic Council projects in light of the discussions and information exchange and have the documents available at a future meeting of the Contributors enabling finalisation of the template and criteria.

e. The Fund Manager will propose a list, based on the available information on their feasibility, of possible priority projects for PCOM consideration, in a form of a short and long list.

f. The Fund Manager will engage with additional parties contemplating contributions to the PSI (e.g. Arctic Council member states and observers, other financial institutions such as the GEF, EIB, NIB that can contribute to co-financing of PSI projects).

AGENDA ITEM 4: OTHER MATTERS

23. The NEFCO Report to SAO Fall 2013 Meeting in Whitehorse, Canada, had elicited a number of questions from the SAOs on the state of play which could not be discussed. While NEFCO has kept the SAO and Arctic Council Secretariat updated on the progress of PSI and its operationalization, the continued high interest, regarding priority Arctic Council projects, and the importance of PSI financing would benefit from a direct NEFCO presence at future SAO meetings. PPCOM recommends that NEFCO participates in SAO meetings.

24. PPCOM noted with appreciation the activities of NEFCO in relation of Arctic Council work including the brief exchange on work of the Task Force for Action on Black Carbon and Methane (TFBCM). Finland and the US are working on the reporting format for such actions and the next meeting of the TFBCM is planned to take place in in Helsinki during Spring 2014.

AGENDA ITEM 5: ADOPTION OF THE REPORT.

25. PPCOM adapted the Report of the 17-18 December 2013 Meeting of the PPCOM 2 (document AC/PSI/PPCOM/R3 2013.12.18) in consensus.

AGENDA ITEM 6: CLOSURE OF THE MEETING.

26. The Chair of the PPCOM Meeting thanked the representatives of the Contributing Parties for a constructive exchange of views and closed the preparatory PSI Committee meeting at 10.00 hrs. on the 18th of December 2013.

Attachments: Annex 1: Document AC/PSI/PPCOM/0302 Annex 2: List of Participants

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AC/PSI/PPCOM/0302 2013.12.12

ARCTIC COUNCIL PROJECT SUPPORT INSTRUMENT Preparatory PSI Committee Meeting (PPCOM) Helsinki, 17-18 December 2013

PSI Update -- 12 December 2013

1. The Fourth Ministerial meeting of the Arctic Council in Reykjavik 2004, inter alia: “Emphasized the needfor reinforcing efforts to finance circumpolar cooperation, supported the Project Support Instrument(PSI) concept as a mechanism to enhance the process of identifying, mobilizing and transferringfinancing for specific priority Arctic Council projects…”. The PSI is expected to strengthen the Council´swork on environment protection including climate change (e.g. CO2 mitigation, SLCP) and actions insupport of the implementation of the Persistent Organic Pollutants (POPs) and Heavy Metals protocolon Long-Range Trans-boundary Air Pollution (LRTAP).

2. The Preparatory PSI Committee in June 2012 requested the Fund Manager (FM, NEFCO) to obtainclarity on what accrues as an Arctic Council project. This has been obtained, partly by the SAO decisionin Nov. 2012 and partly from the ACAP Communication of 10 Dec. 2013 to NEFCO.

3. The Haparanda Fall 2012 SAO Meeting, took note that items listed in P1-P10 identified by the FundManager (FM) in the November 2012 Update on the PSI are approved Arctic Council project areas.Projects within these areas are thus eligible for funding consideration if they have followed theappropriate Arctic Council and subsidiary body procedures including bringing the individual projectsforward to the appropriate Arctic Council subsidiary body for approval; requested the Fund Manager toproceed with an appropriate assessment and development of these projects for future consideration ofthe PSI Committee for financing; encouraged the Fund Manager to cooperate with relevant ArcticCouncil subsidiary body chair(s) to mobilize the Project Support Instrument (PSI).”

4. ACAP has communicated its Update of ACAP Projects to NEFCO on 9 December 2013 responding toNEFCO’s request of 20 August 2012 (Annex 1). NEFCO will review the important information providedby ACAP taking into account the dynamic nature of the information and in the continued developmentof the PSI strategic business plan.

Summary of Progress

5. Trust fund pledges, deposits and allocations for PSI currently stand at EURO 15.9 million. As reported tothe Ministerial Meeting May 2013, PSI resource allocation for 2013–2015 tentatively is about 40 percent for projects on integrated hazardous waste management and POPs, about 25 per cent is allocatedfor mitigation of mercury and 20 per cent for SLCPs.

6. In the above context of overall EURO 15,9 the United States pledge of Award amounts to US$5M wherethe 1st action pledge is of US$1 M (Exchange rate ECB 22 Feb. 2012 @1.3222 USD/EURO). The US 1stAction Award is earmarked for Diesel related mitigation of Black Carbon and, subject to US internalroutines and clearances requires full disbursement latest by Q1 2015.

7. ACAP communicated to NEFCO on the 9th of December 2013 the status of its projects (Annex 1),including projects that are under implementation and others that are being developed. NEFCO isworking on the following actions:• Mitigation of CO2 and SLCP i.e. Black carbon, methane, HFC, ozone depleting substances• Management of POPs e.g. Dioxins, PCBs and obsolete pesticides

Annex 1 to AC/PSI/PPCOM/R3

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• Mercury release reduction, e.g. Non-ferrous smelters, energy lamps, waste management • Integrated Waste Management, e.g. waste from household, servicing sector, industry • Resource efficiency (cleaner production, energy efficiency) • Information Exchange on the Arctic Council Project Support Instrument (PSI)

8. Regarding climate change initiatives, the FM is working on the following:

a. Three SLCP initiatives with respective sub-projects under development i. Project 1-M: Reduction of Methane Emissions ii. Project 2-BC: Reduction of Black Carbon Emissions iii) Project 3-HFC: Mitigation of HFC (including ODS) Emissions (End-of-Life Equipment)

Partners: Interest FIN, NO, RF, SE, USA, NEFCO. Total cost up to EURO 77 million. Not all Projects are expected to proceed, subject to feasibility studies, however. Regarding the current status of the Work Plan, the FM, in response to the SAO’s Haparanda decision, is working to proceed on Project “2.5-BC-K: Eight Karelian settlements with diesel power”. Some of the sub-projects are also on the NEFCO-AMAP Barents Hotspot list, (as Project Kr 14 & Kr16). The SLCP work is running a delay due to field conditions. The inception report (IR) has been received. Other IRs are underway. The IRs will help NEFCO to develop a detailed Work Plan and budget for the SLCP Projects. Once we have confidence that these Project(s) are up to the mark, NEFCO will present them for the PSI financing pipeline. NEFCO’s allocations for the work can be summarised as follows:

No. Description Consultant Timing Budget,

EURO 1 Energy Supply in 8 Karelian Settlements:

Aim: Establishment of bankable project(s). Financing will be a mix of loans and grants.

Norwegian Fall 2013 120 000

2 Mapping alternative solution for diesel power plants in North-West Russia. Aim: The study is to examine the situation in the Barents, develop investment projects, and provide an inventory of Nordic interest that can contribute to projects –including experiences in Russia and Alaska.

To be selected Fall 2013 28 000

3 Dolgoshchelie wind-diesel complex. Aim of this action make the wind-diesel project (largely financed by NEFCO) operational

To be selected Fall 2013 Max 30 000

3 Energy Supply Conversion in Kolguev Island (Nenets AO). Aim: a feasible investment project for the energy systems in Kolguev Island and the Bugrino that are currently based on obsolete diesel stations – based on a Centek 2013 study on energy and environmental issues.

To be selected Winter 2013 Spring 2014

t.b.d.

4 Structuring of centralized power supply of in Arkhangelsk Region; Aim: This is a large potential investment project conceptualized by the domestic electric distribution company. It envisages replacement of electricity from diesel power station by extending the regional electrical grid. It is estimated to switch 7,500 tons of diesel fuel annually – corresponding to ca 11 million USD annually in fuel costs. Investment budget is estimated to be USD 70 million for three investment phases. The concept needs to be substantiated in feasibility study. The investment project is too large for NEFCO and will be discussed with some larger potential co-financiers.

To be selected t.b.d. t.b.d.

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9. Cooperation with Sweden: About 2,8 million SEK (EURO 310 000) is expected to be available in the SLCF

Trust Fund with NEFCO, including an additional allocation of 772 000 SEK that is expected to be deposited by the end of 2013. Resource allocations to be identified and considered, including through the ACAP-PSG.

10. NEFCO Early Start Projects: 12 million Euro to address SLCFs through energy efficiency and cleaner production projects in NW Russia. “Early Start" projects expected to be implemented within the next 1-2 years.

11. Mercury Mitigation (RF, US, NEFCO): Non-Ferrous Metals/Zinc Smelter Project. Estimated budget Euro 3.5 million. Timeline: about 2 years from start of project.

12. PCB Management (RF, US, NEFCO): PCB management and destruction. Budget about Euro 3 million. The Project is on hold awaiting PSI mobilization. A second initiative during Q2 2013 pertains to Franz Josef Land. A NEFCO-BHSF Study is underway. EUR 30.000 has been allocated by NEFCO and the project is to include development of a Project Proposal for submission to ACAP- PCB PSG

13. PSI Information Exchange: a. According to PSI Cooperation Agreement between Russia and NEFCO, a separate contract is to

be entered into between the Ministry of Natural Resources and the Environment (MNRE), as the Authorised Governmental Agency (AGA), and NEFCO on the division of responsibilities between AGA, NEFCO and the Russian Execution Agency (REA) for the PSI projects in the Russian Federation. NEFCO, AGA and REA have been working on this since Nov. 2012. The AGA-NEFCO Agreement addressing the divisions of functions and responsibilities was finally agreed to by the MNRE on the 28th of November 2013.

b. The “AGA-NEFCO Agreement” is to be supplemented by two “REA Function Agreements” between AGA and REA and NEFCO and REA. NEFCO has worked to ensure that the three agreements are mutually consistent (both in English and Russian texts). The harmonised package was dispatched by NEFCO, on the 5th of Dec. 2013, to REA for review and clearance of:

i. the adjustments to REA-NEFCO and REA-AGA Function Agreements so that they are consistent with the agreed finalised AGA-NEFCO agreement; and

ii. Draft NEFCO-REA letter to the IMC asking for their clearance of the package. c. NEFCO has also sent to REA, on the 27th of November 2013, the 2014 REA Budget proposal for

their final clearance. d. REA’s Legal Department is reviewing the 5th of December 2013 provided documentation and is

expected to provide a response on the 12 of December. The REA’s procedure of ratification of the “Function Agreement” includes clearance of their Legal, Accounts and Audit departments.

e. Upon agreement with REA on the harmonised Function Agreement documents and the REA 2014 Budget, NEFCO and REA will jointly submit the package of agreements, on division of responsibilities and the REA 2014 Budget, to the Inter-Ministerial Commission (IMC) for clearance. The IMC comprises of 4 ministries, headed by the MNRE, and includes the Russian Ministries of Finance, Foreign Affairs and Economic Development.

f. The process has hitherto been complicated with a number of iterations. The previously agreed to text between NEFCO, MNRE and REA had to accommodate the views of the IMC expressed on the 12th of July 2013. Work with current package has strived to incorporate all views that have been adequately expressed. A final clearance by the REA and IMC is expected during the period Dec. 2013 - Jan. 2014.

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RECOMMENDATIONS: 14. Document AC/PSI/PPCOM/0302 provides a PSI Update based on the information provided to the May

2013 Arctic Council Ministerial Meeting in Kiruna and the Senior Arctic Officials (SAO) Fall Meeting in Whitehorse (14-15 Nov. 2012). It includes the information exchange on: (a) Current status of contributions and pledges; (b) [2013]-2015 tentative PSI Work Plan and envisaged programming (c) On going work by NEFCO

15. The Preparatory PSI Committee may wish to: a) Note the NEFCO report on the status of PSI as of 12 December 2013 as contained in document

AC/PSI/PPCOM/0302; b) Have an information exchange on the on-going work to operationalize the PSI and progress on

establishing the PSI project pipeline;

Annex 1: ACAP project update for PSI Fund Manager; December 9, 2013

Annex 1

ACAP project update for PSI Fund Manager December 9, 2013 Background In order to facilitate the continuing development of the PSI strategic business plan, NEFCO has been asked by the contributors’ PPCOM to request ACAP for a status report on ACAP’s projects and programmes, including those which can be considered AC approved. The projects ACAP is carrying out and has carried out in the past have been specified in List of approved activities and proposals for future activities for SAO 2001, bi-annual Work Plans and recently in Terms of References, which ACAP WG has prepared for SAO approval. ACAP approved activities SAO meeting in Rovaniemi in June 2001, there were six ACAP "Annex A" activities approved by the SAO for implementation (ACSAO-FI01_8_ACAP_2001.pdf):

ANNEX A: CO-OPERATIVE ACTIVITIES AGREED AS ACAP ACTIONS 1. Multilateral co-operative project for phase-out of PCB use, and management of

PCB contaminated wastes in the Russian Federation (co-ordinator: AMAP-secretariat)

2. Evaluation of dioxins and furans in the Russian Federation (co-ordinator: Sweden)

3. Develop fact sheets on arctic contaminants for use by Arctic Council countries’ delegations in other fora. (co-ordinator: AMAP secretariat)

4. Reduction of atmospheric mercury releases from Arctic states (co-ordinator: Denmark)

5. Environmentally sound management of stocks of obsolete pesticides in the Russian Federation (co-ordinator: USA)

6. Implementation of cleaner production, eco efficiency and environmental management systems in the production units and management of the OJSC Norilsk mining company in the Arctic city of Norilsk. Co-ordinator: Russia

In Reykjavik ministerial meeting in 2004 the Ministers approved ACAP project on brominated flame retardants (BFR) in the Arctic Region (project lead Norway). This activity was closed in 2011 by the SAO on the request of ACAP.

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In 2010, the SAO approved Terms of References for the work of three more ACAP Project Steering Groups (PSG):

1. Short Lived Climate Forcers and Contaminants PSG (SLCFC)

2. Development of the Integrated Hazardous Waste Management Strategy PSG (IHWMS)

3. Indigenous Peoples Contaminants Action Program PSG (IPCAP)

In addition to the ACAP projects below, there are supporting projects which are closely related and contribute to ACAP objectives:

- Sweden: SLCF Trust Fund with NEFCO to address mitigation in the Russian Federation. Project under preparation to propose to SLCFC PSG

The tables below list

TABLE 1 approved projects that are in progress and not yet completed or their results approved by ACAP WG TABLE 2 project ideas/proposals under development with the intention of seeking approval from the ACAP WG. TABLE 3 projects that have been completed

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Table 1. ACAP approved Activities/Projects. Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate: Has the project been approved by Arctic Council?1

ACAP approval of the project

Citation

Short-Lived Climate Forcer Contaminants (SLCFC)

Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

ACAP Work Plan for 2011-2013

SLCFC homepage

Norway, Finland

Reduction of Reduction of Black Carbon Emissions from Residential Wood Combustion

2013 (co-financing NO+FI)

Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

ACAP WG intersessional approval 12 November -12

USA Reduction of Black Carbon from Diesel Sources in the Russian Arctic Project

$2.5 million for project(s) to be completed in 2015

Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

ACAP WG intersessional approval 2013

USA Arctic Black Carbon Case Studies Platform

Near-term Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

Adopted by ACAP WG in September 2013

Multilateral co-operative project for phase-out of PCB use, and management of PCB-contaminated

Project description (ACSAO-FI01_8_ACAP_2001.pdf) ACSAO-FI01_ minutes_Rovaniemi_Jun_2001

PCB homepage

1 When the project has been approved by the AC (Included in the Work Plan in the Ministerial meetings or SAO meetings), there will be no further need to seek a mandate from SAO or Ministers and preparations for the projects can begin. According to the newly developed project approval process, ACAP will still need to approve the projects to ensure they are in line with the mandate given by the Ministers/SAO.

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Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate: Has the project been approved by Arctic Council?1

ACAP approval of the project

Citation

waste in the Russian Federation. NEFCO Phase III:

Demonstration of destruction of 250 t PCBs

Project description (ACSAO-FI01_8_ACAP_2001.pdf) ACSAO-FI01_ minutes_Rovaniemi_Jun_2001

Yes

Approved by ACAP as an old project according to PDAACAP

Evaluation of Dioxins and Furans in the Russian Federation

Project description (ACSAO-FI01_8_ACAP_2001.pdf) ACSAO-FI01_minutes_Rovaniemi_Jun_2001

PCDD/F homepage

Vorkutinskiy cement plant

Phase III: Emission reduction in Vorkutinskiy cement plant in Vorkuta, Komi

ACSAO-FI01_minutes_Rovaniemi_Jun_2001

Yes Approved by ACAP as an old project according to PDAACAP

Environmentally sound management of stocks of obsolete pesticides in the Russian Federation

Finland, Russia

Project description (ACSAO-FI01_8_ACAP_2001.pdf)

Obsolete Pesticides homepage

CIP SibNiiG&M

Destruction of 100 t OP in environmentally sound manner

Pending availability of the destruction facility. Expected: 2013

Project description (ACSAO-FI01_8_ACAP_2001.pdf)

Yes Approved by ACAP as an old project according to PDAACAP

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Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate: Has the project been approved by Arctic Council?1

ACAP approval of the project

Citation

Reduction of Atmospheric Mercury releases from Arctic States

Project description (2001) ACSAO-FI01_8_ACAP_2001.pdf ACSAO_SE02_Stockholm_Final_Report.pdf ACSAO-FI01_minutes_Rovaniemi_Jun_2001

Mercury homepage

USA, Russian Federation

Mercury Emissions Reduction Technology Workshop Proposal

Adopted by ACAP WG in September 2013

USA, Russian Federation, NEFCO

Controlling Releases of Mercury at a Proposed Russian Zinc Smelter

Near-term Terms of Reference (2010) SAO Decision

Adopted by ACAP WG in September 2013

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Table 2. ACAP Activities/Projects under preparation. Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate/Arctic Council approved project2 ACAP WG approval of the project proposal

Citation

Reduction of Atmospheric Mercury releases from Arctic States

Project description (2001) ACSAO-FI01_8_ACAP_2001.pdf ACSAO_SE02_Stockholm_Final_Report.pdf ACSAO-FI01_minutes_Rovaniemi_Jun_2001

Mercury homepage

USA Sweden

Coal Fired Power Plant Sorbent Technology for Mercury Control

TBD Terms of Reference (2010) SAO Decision

No AC project pending approval of project proposal by ACAP WG

Mercury Reduction in Industrial Gold Mining Operations in Russia

TBD Terms of Reference (2010) SAO Decision

No AC project pending approval of project proposal by ACAP WG

Mercury Management in the Artisanal and Small Scale Gold Mining Community

TBD Terms of Reference (2010) SAO Decision

No AC project pending approval of project proposal by ACAP WG

Russian Federation NIC “Ecosafety”

Development of mercury containing waste management system in Arctic regions of Russian Federation

Project could developed for PSI funding if within mandate of the PSG

Project proposal (2013) ACAP decision

No AC project pending approval of project proposal by ACAP WG

Short-Lived Climate Forcer

Terms of Reference FINAL Report from the SAO Meeting in

SLCFC homepage ACAP Work Plan for

2 When the project has been approved by the AC (Included in the Work Plan in the Ministerial meetings or SAO meetings), there will be no further need to seek a mandate from SAO or Ministers and preparations for the projects can begin. According to the newly developed project approval process, ACAP will still need to approve the projects to ensure they are in line with the mandate given by the Ministers/SAO.

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Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate/Arctic Council approved project2 ACAP WG approval of the project proposal

Citation

Contaminants (SLCFC)

Tórshavn 19-20 October 2010

2011-2013

NEFCO “Early Action” Projects Black Carbon Reduction from Heat and Power Sectors

TBD Reference to the SAO report, NEFCO has provided the list of the projects to SAO

No Project under preparation to propose to SLCFC PSG

Russia SRI Atmosphere

Establishment of the System for Impact Management of Black Carbon Emissions from sources located in the Russian Arctic

Project could be developed for PSI funding if within mandate of the PSG

Project proposal (2013) ACAP decision

No Pending approval of project proposal by ACAP WG according to the Project Development Document

NEFCO NEFCO Russian Arctic-Barents Region Short-lived Climate Pollutants Mitigation Project

Near-term No Pending approval of project proposal by ACAP WG according to the Project Development Document

Integrated Hazardous Waste Management Strategy for Northern Russia

Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

IHWMS homepage

Russia, Norway, USA

One strategy for arctic region completed

TBC Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

No Pending approval of project proposal by ACAP WG according to the Project Development Document

Indigenous Peoples Contaminant Action Program IPCAP

Terms of Reference FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

IPCAP homepage

Russian Baseline Study on TBC Terms of Reference No Pending approval of

7

Project Steering Group

Project lead

Partners Project Funding application status, expected timing

Mandate/Arctic Council approved project2 ACAP WG approval of the project proposal

Citation

Federation,, AIA

Contamination in the Indigenous Communities

FINAL Report from the SAO Meeting in Tórshavn 19-20 October 2010

project proposal by ACAP WG according to the Project Development Document

Environmentally sound management of stocks of obsolete pesticides in the Russian Federation

Finland, Russian Federation

Project description (ACSAO-FI01_8_ACAP_2001.pdf)

Obsolete Pesticides homepage

Clean-up of Ust-Tunguska (Krasnoyarsk) burial site contaminated with POPs and Mercury

2014 No No Pending approval of project proposal (Terms of Reference under development) by ACAP WG according to the Project Development Document

8

Table 3. Completed ACAP Projects.

Project Steering Group Project lead (main lead in bold)

Project Timing Citation and reports

Implementation of Cleaner Production, Eco Efficiency and Environmental management Systems in the Production Units and Management of OJSC Norilsk Mining Company in the Arctic City of Norilsk ACSAO-FI01_8_ACAP_2001.pdf

Russia

ACSAO-FI01_minutes_Rovaniemi_Jun_2001 COMPLETED in 2005 Reports?

Reduction of Brominated Flame Retardants (BFRs) in the Arctic MM04_SAO_Report_Reykjavik.pdf

Norway Phase I: Inventory of sources and identification of BFR alternatives and management strategies

2007 Final Report of Phase I of the ACAP Project on Brominated Flame Retardants (BFRs) BFRs homepage

Environmentally sound management of stocks of obsolete pesticides in the Russian Federation ACSAO-FI01_8_ACAP_2001.pdf

USA, Finland, Russia

Arkhangelsk: OP inventory pilot project 2003 Obsolete Pesticides homepage Reports to be placed at closed ACAP website as they contain information that cannot be considered public.

Arkhangelsk: 19 priority districts 2004

Pesticide inventories in Komi 2004 Magadan 2004 Murmansk 2004 Pesticide inventories in Altai Republic 2005 Omsk 2005 5 priority regions of Altai Krai 2005 Altai Krai continuation 2005 Repairing the warehouse and platform roof,

ventilation, electric equipment and fire warning in the centralized storage facility in the Republic of Komi

2005

Altai Krai continuation: Tyumentsevsky, Kosikhinsky, Kuryinsky, Romanovsky, Krutikhinsky, Kamensky

2006

Inventory, repackaging and safe storage activities in the Republic of Sakha (Yakutia)

2006

Krasnoyarsk initiation inventory 2007 Altai Krai: Zarinskiy, Soltonskiy, 2008

9

Project Steering Group Project lead (main lead in bold)

Project Timing Citation and reports

Krasnogorskiy, Soloneshskiy Krasnoyarsk: Krasnoturanskiy,

Kuraginskiy, Minusinskiy, Shushenskiy 2009

Surgut high-temperature incineration facility review

2009

Krasnoyarsk: inventories and safe storage Kezhemnsky, Dzerzhinsky, Kazachinsky, Boguchansky

2010

Krasnoyarsk: Krasnoyarsk: repackaging and removing

OP in 3 poor storages in Manskij district 2010

Pirovsky, Motyginsky, Taseevsky 2010 Krasnoyarsk: investigation of presence of

obsolete pesticides in North-Enisejskiy, Turukhanskiy, Evenkijskiy and Dolgano-Nenetskiy regions

2011

Pesticide inventory activities in Krasnoyarsky Krai, in Krasnoyarsky Krai, in Nizhne-Ingashsky, Ilansky, Cansky, Abansky, Uyarsky, Irbejsky, Partisansky, Rybinsky and Sayansky

2012

Repacking, sampling and laboratory analysis of OPs in a warehouse around a nursery forest in Yeniseisk district and placing OPs in "Zeleny gorod"

2012

Obsolete pesticides Fact Sheet 2013 Approved by SAO in Stockholm, March 2013 ACAP website

Final report 2013 Approved by SAO in Whitehorse, October 2013 ACAP website

Evaluation of Dioxins and Furans in the Russian Federation ACSAO-FI01_8_ACAP_2001.pdf

Sweden Phase I - Evaluation of a few Major Dioxins/Furans Sources (in Arkhangelsk and Murmansk Regions, and in the Republic of Komi)

2005 Final report approved by ACAP February 2013 ACAP website

Sweden Phase II - A feasibility study of measures: Analysis of dioxins in gas, liquid and solid wastes. Implementation of training programmes for

2008 Final report approved by ACAP February 2013 ACAP website

10

Project Steering Group Project lead (main lead in bold)

Project Timing Citation and reports

operation personal at individual industries. Development of recommendations of measures.

Multilateral co-operative project for phase-out of PCB use, and management of PCB-contaminated waste in the Russian Federation. Phase I the PCB inventory completed ACSAO-FI01_8_ACAP_2001.pdf

NEFCO Phase I: Evaluation of the current status of the problem with respect to environmental impact and development of proposals for priority remedial actions.

1998-2000

PCB in the Russian Federation: Inventory and Proposals for Priority Remedial Actions ACAP website

NEFCO Phase II: Feasibility study 2003 Environmentally Sound Management and Elimination of PCBs in Russia ACAP website

Reduction of Atmospheric Mercury releases from Arctic States Project description (2001) ACSAO-FI01_8_ACAP_2001.pdf

DK Arctic Mercury Releases Inventory 2005 ACAP website

DK Assessment of Mercury Releases from the Russian Federation

2005 ACAP website

DK Feasibility study on mercury containing waste in the Northwest region of the Russian Federation Baseline Report

2008 Final report approved by ACAP February 2013 ACAP website

11

1 ARCTIC COUNCIL PROJECT SUPPORT INSTRUMENT Participation List Annex 1 AC/PSI/PPCOM3/R3 Preparatory PSI Committee Meeting (PPCOM) 2013.12.18 Helsinki, 17-18 December 2013 No. PSI Contributor Head of Delegation* Members of Delegation 1 Finland Ann-Britt Ylinen*, Ministry of the Environment

Kaserngatan 25 PB 35, FI-00023 Statsrådet Tfn: +358 20 490 100 Fax: +358 9 1603 9389 Mobil +358 50 548 4146 E-mail: ann-britt.ylinen@ymparisto.fi

2 Iceland 3

NEFCO Magnus Rystedt (Chair, PPCOM) Managing Director Nordic Environment Finance Corporation (NEFCO) Fabianinkatu 34, P.O. Box 249, FI-00171, Helsinki, Finland Tel: +358 10 6180 630 Fax: +358 9 630 976 e-mail: magnus.rystedt@nefco.fi

Husamuddin Ahmadzai*, Special Adviser Helle Lindegaard, Senior Legal Adviser Amund Beitnes, Investment Manager NEFCO

4 Norway Jan Torjus Thompson* Senior Adviser The Ministry of the Environment, Myntgaten 2, P.O.Box 8013 Dep N-0030 Oslo, Norway Tel: +47 22 24 58 73 Fax: +47 22 24 95 60 e-mail: Jan-Torjus.Thompson@md.dep.no

Hanne Aronsen, Senior Adviser Norwegian Envoronment Agency

6 Sámi Parliament Mrs. Kirsten Anne Guttorm Rådgiver/Adviser Internasjonale spørsmål/International Affairs Ávjovárgeaidnu 50 Sámediggi - Sametinget - Sami Parliament, Ávjovárgeaidnu 50, N-9740 Kárásjohka-Karasjok, Norway

2

Tel: +47 78 47 41 56 Fax: +47 784 74090 e-mail: kirsten.anne.guttorm@samediggi.no

5 Sweden Åke Mikaelsson* Programme Coordinator Swedish Environmental Protection Agency Policy Development Department, International Co-operation Unit Valhallavägen 195, Stockholm SE-106 48 Stockholm, Sweden Tel: + 46 8 698 00 00, Fax: + 46 8 698 15 04 e-mail: ake.mikaelsson@naturvardsverket.se

7 Russian Federation Vladimir Ivlev* Deputy Director Department for International Cooperation Ministry of Natural Resources and Environment of the Russian Federation, 4/6, B. Gruzinskaya str., Moscow, 123995, Russia Tel : +7 499 254 8072 Fax: +7 499 254 8283 e-mail: ivlev@mnr.gov.ru

Mr. Batyr Bakirov, Second Secretary Embassy of the Russian Federation, Helsinki, Finland

8 United States of America Hodayah Finman* Senior Adviser Office of International and Tribal Affairs US Environmental Protection Agency, Washington DC, U.S.A. tel: +1 202 564 1893 fax: + 1202 565 2427 e-mail finman.hodayah@epa.gov