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Projects : NAMAs and PoAs in Montenegro Forests

Under the umbrella of the Forestry Development in Montenegro Project (FODEMO), Lux-Development hired Climate Focus to support the enhancement of sustainable forest management opportunities in Montenegro.

In the first phase of the FODEMO Project, Lux-Development invited Climate Focus to identify opportunities to strengthen the project with carbon finance and provide capacity building services. The next phase of FODEMO aims to support the development of a sustainable bio-energy market in Montenegro. This will include implementing sustainable forest management practices in parallel to creating additional supply of biomass, and initiating and supporting projects that apply sustainable biomass for energy fuel switching.  The fuel switch activities could take place in residential buildings, hospitals or schools but also on a larger scale for district heating systems and power generation.

Climate Focus' analysis included the option of developing a NAMA that integrates policies to support fuel switch activities with policies for the forestry sector which support the establishment of a bio-energy market. It also looked into developing a CDM PoA for fuel switch activities and other future options, such as  forestry sequestration potential from improved forest management practices. The recommendations developed by Climate Focus' analysis provided Lux-Development with a selection of the most appropriate options and a clear roadmap for next steps. The roadmap covered negotiation support, the development of a NAMA and/or CDM PoA project, and analysis of the monitoring capacity of forestry carbon sinks in Montenegro.

An important element of the project was to enhance the understanding of the different carbon market opportunities by the FODEMO team, project developers and Montenegrin government representatives. For this purpose, Climate Focus developed and organised a workshop. NAMA concepts were introduced during the workshop as well as concrete examples of NAMAs which can enhance the implementation of a bio-energy market in Montenegro. Attendants to the workshop included the Montenegrin DNA, representatives from different ministries, banks, donors and companies that would be either on the supply or demand side of a bio-energy market.