| May 22, 2003 Prepared for the Fifth Ministerial Conference "Environment for Europe" Table of Contents
Introduction Introduction
As the transition from centrally planned economies to market-driven economies began in the Central and Eastern European region, the United States Government (USG) accepted the opportunity to provide assistance in the areas of environmental and natural resource management activities in cooperation with the countries of the region. Agencies of the USG have shared their expertise with counterpart organizations and individuals in the region. The United States Department of State (USDOS) provides overall direction, coordination and leadership for all U.S. agencies working in the region which include the United States Agency for International Development (USAID), the United States Environmental Protection Agency (USEPA), the National Oceanic and Atmospheric Administration (NOAA), the United States Forest Service (FS), the United States National Park Service (NPS), and the Department of Energy (DOE).
Environmental problems in the region had endangered human health, undermined long-term economic growth, and threatened ecological systems essential to sustainable development. A focus on sustainable development fully integrating environmental concerns became a priority. Careful management of natural resources was essential for investments in development to yield sustainable benefits. Unpolluted and un-degraded natural resources were required for long-term economic growth and food security.
Clean air and water were, and continue to be, prerequisites to human health. Addressing environmental issues has built public/private sector partnerships; increased public awareness through education and training; crossed gender, cultural and class lines; stretched across the political spectrum; and strengthened civil societies.
Experience in the region has shown that the transition from a centrally planned to a market-based economy has brought with it many benefits for the environment. Reforms that have been initiated and based on market principles have brought autonomous environmental benefits throughout the region. The introduction and gradual increase of market prices for services and resources such as water, energy, and waste management has had the effect of raising the necessary investment revenues for these sectors and provided the first signals to use natural resources wisely. Moreover, economic reforms continue to reduce the share of pollution-intensive industry in total economic activity, help with the introduction of cleaner technologies, and provide incentives to reduce wasteful and inefficient production and consumption patterns. The U.S. approach to environmental assistance continues to respond to the needs as articulated by the National borders generally do not confine environmental issues. Consequently, many of the U.S. environmental and natural resource management activities are regional in nature. Further, not all countries have the same capacity to address their environmental and natural resource management issues. Therefore, U.S. activities in some countries have been able to benefit by the approaches used earlier to address issues in other countries. The sustainable progress as a result of U.S. interventions in environment and natural resource management has been felt throughout the region. Environmental policy and natural resource legislative advances have been felt in other sectors in the assisted countries. Pollution levels have decreased while environmental investment and protection have dramatically increased. Members of businesses, local governments, communities, and industries have been trained with necessary environmental and natural resource management skills and are successfully continuing their efforts even in those countries where U.S. assistance has concluded. The U.S. assistance to Central and Eastern European countries began upon the passage of the Support for East European Democracy (SEED) Act in 1990. U.S. assistance to the nations of Eastern Europe, Caucasus and Central Asia (EECCA) began upon the passage of the Freedom Support Act in 1992. This report focuses on the U.S. environmental and natural resource management activities in the region that have been implemented since the 4th Ministerial Conference “Environment for Europe,” in Aarhus, Denmark on June 23-25, 1998. For information purposes, references have been made of illustrative activities that have been sustainable even once U.S. funding had terminated. Space does not allow in-depth discussion of every environmental and natural resource management activity; however, representative activities have been included to show the diversity and breadth of the U.S. assistance in the sector. The U.S. focus in environmental and natural resource management has been in the following areas: Water, Energy, Natural Resource Management, and Institutional Development. America has provided assistance in these areas because of extensive experience with work in similar situations and because we were requested by our partners in development to provide this assistance.
Water bodies are rarely contained within national borders. An issue upstream or on one shore of a lake in one country soon becomes an issue of another country downstream or on the lakeshore of another country. As a result, many water issues are transboundary in nature. The number of demands for finite water resources to be used for human consumption, agricultural consumption, industrial and commercial processes, and transportation highlights the importance of this valuable natural resource. Early water activities in the region initiated by the United States involved substantial investments of equipment and supplies in addition to technical assistance and training. The first effort in the in this area was the provision by USEPA of water treatment and laboratory equipment in Krakow, Poland. Other examples of such investments include improvements in the water and wastewater system in the city of L’viv and the Global Environmental Facility (GEF) Danube project to reduce the contribution of pollution from tributaries to the Danube as it flowed through Slovakia, Hungary, and Romania. Since the 4th Ministerial “Environment for Europe,” the United States has collaborated with country leaders, planners, policy makers, scientists, and citizens to implement a number of water activities. In addition to the trans-boundary water issues, the U.S. has also successfully addressed activities across the region to focus on water-related needs in wastewater management, pollution prevention, monitoring, and watershed management issues. The United States has provided technical assistance and training with targeted purchases of equipment and materials. The activities have resulted in increased public investment, improved public participation, and greater compliance with national and international water management standards. Further, successful experiences in one country of the region have proved to be applicable to other countries of the region.
Transboundary water management issues are found throughout the region. The United States has acted to help address several serious situations. To improve resource efficiency and mitigate transboundary water demands in the Central Asian In Uzbekistan, USAID supports natural resources management in the Syr Darya River, one of the two major tributaries to the Aral Sea, where managers are using a planning tool that USAID developed to make decisions on the allocation and distribution of water and energy in the region. One of the Syr Darya’s major tributaries, the Chirchik River, has an automated management facility built with USAID assistance that has increased downstream river flow to the Aral Sea by 100-150 million cubic meters per year (three percent) and has helped reduce water wastage. In Kyrgyzstan, USAID supported a water management activity to reduce the water wastage of the Pakhtaabad Canal that serves more than 20,000 hectares of irrigated land and about 100,000 farmers in Uzbekistan and Kyrgyzstan. The Pakhtaabad Canal is anticipated to show water savings up to five percent, which will allow increases in crop production through better timing of irrigation deliveries, as well as more efficient use of water resources for agriculture, with a resulting economic value estimated at over $2 million annually. Because of the effectiveness of the program, Uzbekistan’s Minister of Agriculture is planning to replicate the project jointly with other donors at 20 sites in 10 additional provinces. The Ministry will contribute by providing civil works similar to the Pakhtaabad Canal. USEPA is working in Kazakhstan through the International Center for Environmental Finance to assist local villages to better manage their water systems. This involves work on several fronts. ICEF staff work with the village people to help them to understand that they in fact own these systems and must take responsibility for them. Once the villages have taken this step, they are provided technical assistance to repair and better manage their water systems and are eligible for micro-credit through the establishment of a financial cooperative. The program is based on a successful model used by a Canadian NGO (International Secretariat for Water) in the Ferghana Valley in Kyrgyzstan and Uzbekistan. In Armenia, assistance was designed to address severe consequences of environmental degradation resulting from deteriorating water quality and quantity. At the conclusion of the assistance, USAID will have established and strengthened key water-sector institutions, improved water quantity and quality indicators, and promoted legal and policy reforms. While in Georgia, USAID provided technical assistance and training to apply modern methods to watershed and resource management which facilitates watershed and river basin management concerns with Armenia and Azerbaijan. Managing water resources within countries also is an important part of U.S. activities in the region. The United States has worked in several thematic and geographical areas. In Macedonia, USAID worked with a municipal water utility to help educate its customers. Financial viability of these companies is dependent on their customers’ understanding and acceptance of scheduled tariffs and any increases. When utilities were privatized and no longer had access to central government funding, the tariffs were raised to meet their financial requirements. Payment compliance was typically very low. USAID worked with the utility to develop a comprehensive public outreach campaign in six target cities. The campaign focused on increasing public awareness of the benefits of water tariffs in improving service quality and increasing water conservation. Although the program evaluation is not complete, the utilities did recognize a need to establish a communication office within the water utility association to address public outreach. In Bosnia, USAID has addressed the high percentage of unaccounted-for-water production (approaching 60 to 70 percent of the total) in parts of the country. By assessing the causes and applying corrective measures, the activity will reduce unaccounted-for-water to 25 percent. Such an efficient and economical plan may be transferred to other areas. Similar losses have been addressed in Romania, Bulgaria and Kazakhstan. Also, a recycling system was introduced into a coating and galvanization plant which reduced the demand on the neighboring city’s drinking water source while decreasing the volume of wastewater discharge from the company and reducing the potential for toxic metal ion discharges. In Croatia, a public-private partnership was developed with the Rijeka Water Utility to explore with municipal managers the prospects of attracting private investment in order to finance required capital improvements. In Romania, USAID addressed the lack of the water utility’s capacity to control time, cost, and quality, which inhibited the development of the water and transportation infrastructure in Romania. As a result, project preparation and project management skills in project appraisal, cost estimating, scheduling, procurement, and construction supervision in the public and private sectors for water and transport projects will be improved. Water must not only be available but also clean enough to drink. The United States has participated in In Bulgaria, USAID provided technical assistance to develop a reliable, cost-effective, and low-maintenance system to address the problem of a municipality’s discharging untreated wastewater directly into a creek. One of the options to address the problem was the use of constructed wetlands for the treatment of the municipal wastewater. In Macedonia, USAID has addressed wastewater treatment problems throughout the country, especially in areas that have difficulties connecting to larger wastewater treatment plants. In a related activity, USAID expanded the use of international-standard project management concepts and techniques in the water and transport sector and developed the capacity of local institutions to provide international-standard project management training on a financially sustainable basis.
In Russia, USAID provided technical assistance to address the goal of reducing or eliminating water quality and wastewater problems at food processing facilities, thereby reducing production costs and improving operating efficiency. In another activity, USAID produced a technical and economic assessment with recommendations to improve water management of a mining operation. The activity resulted in an improvement of the groundwater and surface water controls of the mine. The efforts of the United States have resulted in more efficient and effective use of water between countries, cleaner and more abundant water for drinking, and a better understanding of its value. Our continued approach to working in this area is to identify those partners who are willing to take the steps necessary to meet their challenges. We consistently attempt to identify market-based solutions that will lead to equitable distribution of this crucial resource. Leveraging Environmental Projects
Poland Rural Environmental Protection Project—USEPA worked with the Government of Poland on this project. This project assisted more than 1,000 farmers to make environmental investments and allowed the development of nutrient management plans for 20,000 hectares. They were able to leverage a $2.5 million World Bank loan by combining additional funds from the Global Environment Facility (GEF), the Nordic Environmental Finance Corporation, the Polish EkoFund, and local government contributions to a total of $16 million. The World Bank has adapted the model for similar activities in eight other countries, mostly in the Black Sea Region. Romanian Ministry of Waters and Environmental Protection (MoWEP) DESWAT Project—USAID’s EcoLinks Program also closely focuses on leverage. Early in 2003, the Romanian government approved a sovereign guarantee for a U.S. Export/Import Bank loan of $45,000,000 to implement the Integrated Decisional Informational System for Waters Emergencies (DESWAT) project, part of a national strategy for water disaster mitigation and management. EcoLinks’ staff in Bucharest identified partners and funding for the project. The initial feasibility study was funded through a USAID grant, a contribution from the Romanian government and other USG resources. With the announcement of the sovereign guarantee for the loan, MoWEP is set to begin project implementation. Financing Rural Tourism—The USAID Bulgaria Biodiversity Conservation and Economic Growth Project does not provide loans or grants to the national parks and communities with which it works. Instead, it focuses on assisting parks to prepare business ideas for commercial support and/or grant proposals from other sources in order to leverage investment and build local capacity. Assisted by other USAID partners, business plans are developed and reviewed with an eye towards commercial lending institutions. Commercial loans and grants have been secured as a result.
Early U.S. energy activities in the region focused on improving air quality near power plants, within municipalities and near major processing plants. USEPA worked in cooperation with their counterparts in Krakow, Poland to establish an air quality network in Krakow which allowed local authorities to track air quality. The typical assistance was in the form of equipment purchases and technical assistance. Another example of such energy activities to improve air quality includes the re-fitting of family ceramic stoves to natural gas in the Old City of Krakow, Poland. Since the 4th Ministerial “Environment for Europe,” U.S. assistance activities in the energy sector primarily have promoted grants or commercial lending by International Financial Institutions (IFIs) for bankable energy efficiency projects in Southeast Europe, with emphasis on the municipal/public sector. Additional activities beyond Southeast Europe also have been implemented.
Municipal energy efficiency investments are important elements in stimulating the region’s economic growth and in winning public acceptance for market reforms. Energy efficiency investments are one of the few infrastructure projects that can pay for themselves via the resulting savings on energy costs in facilities. These investments allow municipalities to devote more financial resources to improve the quality of essential public services. Lowering energy costs also reduces the pressure to provide subsidies. Significant social transition and environmental benefits can be achieved.
The United States has worked in several energy programmatic areas. USAID has focused on energy efficiency and the energy regulatory environment; USEPA has focused on air pollution control, greenhouse gas minimization, and energy efficiency; and DOE has focused on nuclear issues, primarily at Chernobyl and in the removal and disposal of spent fuel rods from the region.
The USAID energy program in Southeastern Europe is composed of three elements, which are briefly discussed below.
The Balkan Energy Efficiency Initiative: USAID provides technical assistance to prepare business plans for municipal energy efficiency investment projects in Southeast Europe to leverage commercial or IFI lending. The activity is focusing initially on Romania, Bulgaria, Macedonia, and Croatia. In addition, in USAID has funded demonstration projects and a public information program in five cities in Serbia and is supporting the preparation of a World Bank energy efficiency loan. The Regional Development Credit Authority (DCA): USAID is developing a regional Development
The Municipal Network for Energy Efficiency (MUNEE): MUNEE is a regional network to strengthen the environment for implementing energy efficiency activities at the local level and to overcome the barriers to expanded private and commercial investment. MUNEE partners with NGOs in the region. In Southeast Europe, a related sub-regional network known as the Regional Network for Efficient Use of Energy and Water Resources (RENEUER) is being developed to link municipalities and other organizations in Romania, Bulgaria, Macedonia, Albania, Croatia, Bosnia, Serbia, and Moldova.
The goal of MUNEE and RENEUR is to design and implement innovative energy efficiency policies and identify barriers to their successful adoption. The networks also strengthen the capacity of regional and municipal stakeholders to develop and attract financing for energy efficiency projects throughout the region.
In addition to the Southeastern Europe energy efficiency program, USAID also supports a number of country-specific activities. These are chosen on the basis of country need as well as potential of transferring the results to other countries in the region. In Albania, USAID addresses the physical and financial deterioration of the electricity sector and need to achieve a balance between supply and demand by assisting the GOA to transform the electrical sector into an efficient system and enable Albania to participate effectively in the regional electricity grid. In Moldova, USAID provided technical assistance to work with municipalities and institutions to enhance energy efficiency policy formation for district heating, assist in the development of effective and sustainable energy efficiency programs and projects at the municipal level, and advise district heating companies on means of accessing and attracting international funds. In Romania, USAID assisted the national gas regulatory agency in establishing the rules of a liberalized, competitive natural gas market, which led to the quality of service, safety and environmental protection desired. Also, a grant addressed the environmental problems caused by the wood processing operations of the region, mainly their waste production. The findings of the grant identified that one possibility of addressing the waste generated at these facilities was to install a biomass energy system. In Ukraine, a number of activities address energy and energy efficiency including the use of wood wastes for fuel for boiler stations, biogas production from processing sewage at a sewage treatment plan to meet the plant’s energy needs, development of a program at natural gas facilities to reduce methane leakages at compressor stations and pipelines, and the use of wood residues created at a woodworking plant to generate heat. USEPA has been working in the region in energy issues since the early 1990s. Recent efforts include activities aimed at assisting countries to reduce the air pollution resulting from energy generation. The major focus of these efforts has included technical assistance, training, and selected purchases of equipment. USEPA projects in EECCA continue to reduce and avoid emissions of the six greenhouse gases (GHGs), especially carbon dioxide (CO2) and methane, and to increase carbon sequestration (forest sinks, etc.) through improved resource management. Since 1992, USEPA project partners in the Former Soviet Union have reduced or avoided at least 3 million metric tons of CO2 emissions, and are now reducing or avoiding more than 1 million tons annually, primarily in the heat-and-power and construction sectors. USEPA has established coal mine methane (CMM) centers in Russia and Ukraine, with the objective of providing the information and analysis needed to stimulate investment in CMM utilization. Kazakhstan also has established a methane center, with its own funding. In 2002, the Global Environment Facility, UNDP, Russian government, and USEPA contributed to an $11 million financing package for the first CMM utilization projects in the Kuzbass. The two to three CMM utilization projects expected in this region will improve mine safety, increase mine profitability, and significantly decrease methane emissions into the atmosphere.
In 2002, USEPA began a multi-year initiative to reduce particulate emissions in EECCA through the transfer of modern tools and techniques for optimizing the performance of electrostatic precipitators (ESPs) at EECCA power plants and industrial facilities. ESPs are the predominant form of air pollution control in the region, and low-cost upgrades using advanced ESP diagnostics hold the potential for large reductions in smokestack emissions. Early activities focused on the All-Russian Thermal Power Institute in Moscow. The program is being expanded to Ukraine, Caucasus, and Central Asia in 2003. By the end of 2002, 33 Russian regions had adopted and were implementing energy-efficient building codes. Annual avoidance of greenhouse gas emissions under this project is now about 1 million tons. A cumulative total of more than 50 million tons avoided is expected over the next ten years. The cost savings to the Russian economy was $28-30 million, and is expected to be $1.5 billion over the next ten years. This project will very likely extend to new regions and increase the percentage of all construction covered by the new codes from 70 percent to 75 percent. USEPA activities in Russia have helped to reduce pollutant emissions by several hundred thousand The United States also has played a significant role in the nuclear industry in the region. The Department of Energy has assisted with cleanup activities consequent to the Chernobyl nuclear disaster and also with the removal of spent fuel rods from several countries in the region. In Ukraine, DOE has completed its efforts related to cooperative activities to develop designs to correct structural problems and to improve worker safety in the Chernobyl plant’s concrete shelter. Also, as part of this latter effort, DOE purchased a variety of equipment such as dosimetry equipment, dose-tracking software, portable survey instruments, radiation protection clothing, and respirators. Radiation protection technicians also received expert mentoring and standards-based training. Nuclear criticality monitoring was improved by installing modern neutron detection equipment inside the shelter. The Government of Ukraine requested the United States to provide technical assistance in the area of nuclear fuel diversification—specifically to help establish a competitive, open nuclear fuel market for the country. DOE responded to this request by supporting the efforts of a U.S. nuclear fuel vendor to design, build, and install its fuel in a Ukrainian nuclear reactor. The installation of this nuclear fuel will demonstrate that the U.S. fuel design can be used alongside the Russian fuel assemblies currently installed. Also, the transfer of this nuclear fuel technology to a Ukrainian technical center will establish within Ukraine the technical capability to perform nuclear fuel analysis and licensing expertise to permit them to independently assess nuclear fuel designs to be used at Ukrainian nuclear plants. Ukraine will receive technology in the areas of nuclear fuel design, reactor core design, fuel and core licensing, and fuel and component fabrication. The result of this project will provide Ukraine a qualified alternate U.S. fuel vendor, thus allowing the country’s nuclear industry to diversify and better secure its energy supply. Also, Ukraine will have an in-country expertise on nuclear fuel design reactor core design, fuel and core licensing, and fuel and component fabrication for all of its current and future nuclear reactors. The use of the U.S. technology will result in safer fuel less likely to cause the types of problems seen at Chernobyl. DOE also has played a role in the removal of spent nuclear fuel from several countries including Kazakhstan. The removal of this spent fuel has reduced two serious problems. First, removing these fuel rods from the countries has effectively removed the rods from potential misuse. Second, removal of the rods also helps to minimize the potential for environmental damage caused by their storage. The United States efforts in these areas have resulted in a more effective regulatory regime for energy production and sale, more efficient energy generation, and less air pollution resulting from smoke stack emissions. Activities in the nuclear area have reduced threats to the region from spent uranium fuel and the Chernobyl disaster. U.S. efforts will continue in these areas into the future.
Improved Management of Natural Resources The transition from a centrally planned economic system to a market-driven economic system has resulted in new natural resource management requirements with renewed emphasis on nature conservation and the importance of biodiversity. Early assistance to the region proved the importance of region-specific answers to regional issues. Since the 4th Ministerial “Environment for Europe,” the United States has focused on the management of forest resources, eco-tourism activities as a part of sustainable management of forests, and national park management. The major focus has been in technical assistance and training, resulting in increased public investment, improved public participation, and sustained maintenance of the natural resource base. Natural resource management, nature conservation, and biodiversity issues are primarily addressed through national programs. However, transboundary activities have also been implemented, where possible. In Albania, USAID has helped to transfer state-owned forests to local government units as a part of a program to strengthen community decision making and alleviate forest degradation. By the end of 2000, 35,000 hectares of the country’s state-owned forests and pastures were transferred and were under local management and control. In Bulgaria, USAID built on the foundation of more than eight years of commitment to biodiversity conservation to support biodiversity conservation financing mechanisms, including fees, trust funds, and foundations; link park income generation and small enterprise development to protected areas goods and services; implement new management plans for two parks; develop a collaborative management planning process for a World Heritage Site and a significant biodiversity area aimed at the first privately owned restituted forest lands in Bulgaria, and establish major public awareness and information exchange efforts. As a part of the overall effort, the United States Forest Service provided training and equipment for improved forest fire response.
USAID Initiative in Russia – the FOREST Project The FOREST Project, a five-year, $20m USAID initiative operating through 2005, seeks to reduce the threat of global climate change and conserve biodiversity by promoting sustainable forest management; preserves Russian forests as a globally important carbon sink and habitat for rare and endangered species; and reduces negative effects of climate change through projects targeting fire prevention, pest control, re-forestation, forest policy, protected areas management, and sustainable use of timber and non-timber forest products. Russia has a total forested area of approximately 764 million hectares, more than 22 percent of the world’s forested area. Seventy-eight percent of this forest is located in the Russian Far East and Siberia. These forests represent one-seventh of the Earth’s carbon pool, and their management holds major implications for global climate change. The plant and animal diversity and habitat found in these forests make them a resource of tremendous global importance potentially threatened by unsustainable forest management. USAID, in a partnership with the U.S. Forest Service, developed the FOREST Project using a comprehensive approach to address forest use and management challenges, including Forest Fire Prevention; Forest Health and Pest Management; Non-Timber Forest Products and Secondary Wood Processing; Biomass; Forest Policy and Legal Reform; Applied Forestry Research; and a Forest Grant/Loan Program. In Kazakhstan, USAID has funded small-scale demonstration models in fisheries, tree planting (both commercial and non-commercial), irrigation efficiency, and desalination. While in Kyrgyzstan, the Agency is working with Israel’s Center for Cooperation (MASHAV) on a bio-drainage demonstration model concerning the planting of carefully selected species of trees in targeted areas to help mitigate the rising water table. In Romania, USAID implemented a pilot activity to eliminate pollution sources resulting from current In Russia, USAID environmental programs have focused primarily on increased capacity to deal with environmental pollution as a threat to public health, improved management of natural resources and biodiversity, and improved economic mechanisms for natural resource management and natural protection. A key mechanism for all three areas is replication of lessons learned, primarily through small grant mechanisms. In Russia’s forestry sector, USAID has introduced eco-tourism activities and techniques for sustainable management of forests to protect forests and species habitat. This program has four main components: public awareness campaigns on forest fire prevention; pest monitoring to better control devastating outbreaks of pests, such as the Siberian moth; support to forest enterprises; and biomass energy. As a result, fire prevention awareness of the general public has increased, new pest management techniques have been employed, non-timber forest products and secondary wood processing have increased, and technical and financial support has been provided to three companies as investment plans for the construction of biomass energy facilities were being developed. In Ukraine, assistance to the Ukrainian Land and Resources Management Center applied remote sensing and geographic information system (GIS) mapping and other information technologies to land and resource management issues at the national and local scales. Several successful demonstration projects have been conducted, including the analysis and forecasting of flooding in the Trans-Carpathian region, monitoring of fires and floods in the Chernobyl exclusion zone, and GIS for the Pervomaisk ecological disaster zone. Another activity addressed methane lost into the atmosphere from landfills. A pilot demonstration project of a collection and utilization system for the landfill was prepared. In a related activity, the feasibility of using biogas produced from processing sewage at the sewage treatment plant to meet the plant’s energy needs was demonstrated. The National Park Service (NPS) is working in both Croatia and Georgia to assist those countries in further developing their park management systems. The major change is a shift in focus from managing parks as museums to making them accessible to the public and more user-friendly. In Croatia, USAID suggested that a practical training program be designed in Plitvice and Paklenica National Parks that would implement critically needed park programs and provide job skills training and temporary employment (the country’s current unemployment rate is 22 percent) to interns of diverse ethnicity from war-affected regions. The ten-week program commenced in late August 2001. In Georgia, NPS is working to develop Lagodekhi Nature Reserve as a pilot protected area that can serve as a model for conservation, education and interpretation, law enforcement, and search and rescue activities for Georgia’s protected area system. U.S. efforts in natural resource management have focused on making parks and protected areas more accessible to the public and in strengthening the management of forests. Strengthening of Environmental Institutions
As the countries of Central and Eastern Europe and EECCA began to function under the new market-driven economic system, the policy, legal and regulatory basis under which the countries had previously been operating also needed to be addressed. Few models existed to provide easy, off-the-shelf examples for application to the region. The United States addressed these issues with its partners in several different ways—once again, depending on the needs articulated by its host country partners. Earlier, institutional development assistance to the region in the area of environment focused on policy, legislative, and regulatory development to adjust these areas to the new economic system. The success of this innovative assistance can be measured by the quality of the policy decisions, volume of environmentally based legislation, increased ability to finance environmental projects, and number of well-functioning regulatory bodies now in place in the region. Further, aspects of this work could be easily adapted to other countries in the region facing similar policy, legislative, and regulatory challenges. At the same time, the United States placed significant focus on strengthening and supporting environmental NGOs by assisting in the formation and funding of the Regional Environmental Center (REC) for Central and Eastern Europe and subsequent RECs in EECCA.
The International Center for Environmental Finance (ICEF) The ICEF is an innovative USEPA environmental finance project helping countries create permanent, self-sustaining, market-based environmental finance systems and improve environmental protection. This is achieved in cooperation with host governments; by providing technical assistance to build the institutional capacity to support innovative financing systems with democratic, reform-oriented infrastructure and transparent lending procedures—while at the same time stimulating local commercial credit markets; identifying and developing, on a demonstration basis, environmental projects that can be financed through such systems; and improving the cost-effectiveness of environmental projects and project sponsor creditworthiness. Two current activities illustrate the project: Ukraine: ICEF is providing advisory support to the Ukraine to restructure its Ukraine National Fund from a grant program—the least efficient form of financing—to a loan guarantee program. The Fund currently receives about US$ 12 million per year in pollution control charges. These funds will provide the foundation for the new loan-guarantee program. Kazakhstan: ICEF is involved in marshaling internal and external financial resources and creating a financial system to provide ongoing funding for projects that will provide adequate supplies of clean water to the villages and cities in the region. The program will focus on maximizing the effect of Kazakh investments in water/wastewater systems and increasing local revenues for these services so that funds will be available to maintain and improve the services in the future. Since the 4th Ministerial “Environment for Europe,” U.S. assistance in institutional development has focused on adapting successful policy, legal and regulatory material from the Northern Tier states of Central and Eastern Europe to other countries in the region. Also, harmonization of regulatory activities throughout the region has been important as many of the countries are soon to become members of the European Union and others aspire to do so. The major focus has been on technical assistance and short-term, focused training, resulting in the privatization of formerly state-owned enterprises, increased rational regulatory control of the natural resource base, and greater public participation in environmental decision making. In Bulgaria, USAID focused on biodiversity conservation and economic growth to support a biodiversity conservation financing mechanism, including fees, trust funds, and foundations. Also, project management training was provided to independent road operation and maintenance units while developing the capacity of a local institution to be able to provide the training on a financially sustainable basis. In 2002, the Caucasus Regional Environment Center (REC-Caucasus) (supported by USEPA) awarded about $150,000 to NGOs for environmental education and awareness, water quality, mountain ecosystems, and desertification problems, as well as for NGO strengthening and registration (particularly in Azerbaijan). In 2002, the REC developed a water initiative, entitled “Public Participation in Transboundary Water Management Issues in the South Caucasus,” where grants were issued on water quality and a database of international and local water activities was developed. It organized a regional conference on desertification, with participation by government authorities at the ministerial and parliamentary levels from all three countries in the region. The REC-Kyiv awarded grants to 33 environmental NGOs in 2001-02 and conducted preparation of Local Environmental Action Plans (LEAPs) in three communities in Ukraine and a transboundary LEAP for two border communities in conjunction with the REC in Moldova. The Central Asian REC became operational in 2002. In addition to awarding grants to NGOs, it served a coordination function in the preparation for its member countries’ participation in the WSSD in Johannesburg. USEPA has provided support to the Regional Environment Center in its capacity as Secretariat of the Regional Environmental Reconstruction Program (REReP) for Southeastern Europe (SEE) to help build “human infrastructure” in the region to manage large-scale investments and strengthen democracy and civil society. With USEPA support, the REC coordinated efforts to strengthen SEE environmental NGOs, promote strategic environmental assessment (SEA), build capacity for increased public participation, and facilitate access to and exchange of environmental information. In Croatia, private sector participation in the provision of local services through utilities was promoted. The key tasks included the identification of opportunities for investment from the private sector, spelling out policy recommendations such as debt management and tariff policy that will enhance the standing of the water utility in regard to the private investors and assisting the municipality to tender financing offers.
The U.S. Environment Hubs Bringing nations together in a region is the only way to address common environmental problems. Uniting these countries in the face of a common threat can also advance international interests in ways that go far beyond the scope of the environmental issue itself. The U.S. Department of State’s commitment to a regional strategy complements our bilateral and multilateral diplomatic environmental efforts. The U.S. Environment Hubs work closely with other U.S. agencies to support their efforts by raising key issues at the diplomatic level, and with non-governmental organizations on environmental activities within their region. To address transboundary environmental issues, the U.S. Department of State established environmental Hubs located in two embassies in the region, in Budapest, Hungary and Tashkent, Uzbekistan. The regional environmental officer’s role complements the traditional bilateral Environment Science and Health officers. Rather than dealing with a single country on environmental and health issues, regional environmental officers look at transboundary issues from a region-wide perspective. Hubs are engaged with several countries of the region on a particular issue, with the aim of promoting regional environmental cooperation, sharing environmental data, and adopting environmentally sound policies that will benefit all countries in the region.
A training program was developed to address the need for domestic transport and water infrastructure contractors to expand the use of international-standard project management concepts and techniques. Further, the training attempted to develop the capacity of private sector delivery of international-standard project management training on a financially sustainable basis. The application of international-standard project management concepts and techniques addresses environmental impacts of transport and water infrastructure construction, helping Croatia to better manage environmental impacts associated with these large infrastructure projects. In Kazakhstan, a wide range of activities was supported in the area of improved environmental policy, legislation and regulation, environmental technology transfer, management of natural resources and biodiversity toward addressing the information, knowledge and skills needed to better manage natural resources.
Increasing the Capacity of Russian Environmental Management
The Replication of Lessons Learned (ROLL) program in the Russian Federation, a grant program replicating and disseminating effective low-cost environmental projects and strengthening partnerships among regional environmental organizations, has operated since 1993 and is based on the results of successful USAID projects as well as other environmental projects financed by Russian and international organizations. ROLL increases capabilities for environmental management to promote sustainable development and economic growth through increasing the capacity to deal with environmental pollution as a threat to public health; to manage natural resources and protect biodiversity; and to strengthen the economic mechanisms of nature management and environmental protection, as well as supporting environmentally oriented business; ROLL relies on the participation of citizens, businesses, NGOs and agencies in addressing environmental issues.
ROLL grants support:
These activities have improved livelihoods in the area of fisheries, business training, camel husbandry, traditional arts, water desalinization and agro-forestry. In Macedonia, USAID is addressing wastewater treatment problems throughout the country by In Romania, USAID addresses environmental management by providing technical assistance and training to build critical skills in the environmental sector, develop institutional capacity, and establish key policies concerning critical environmental issues. Training activities for national and local government and environmental businesses in management skills and environmental issues have been provided. Managers from various participating industries have adopted new programs and practices resulting in cleaner industrial processes and significant cost savings. Important environmental sector laws were enacted or improved with assistance from USAID. Romania also has received management training for local contractors, water utilities and the national road administration organizations, which has environmental ramifications. USEPA’s Environmental Finance Program (EFP) in Russia continued to develop institutional capacity and expertise in the area of environmental finance, primarily through cooperation with the Ministry of Economic Development and Trade. In 2002, this program helped lead to loan agreements for $90 million worth of environmental projects, including one project designed to cease effluent discharges from the Baikalsk pulp-and-paper plant into Lake Baikal. In Turkmenistan, training and technical assistance improved the management capacity of natural In 2002, USEPA began an Environmental Capacity Building Program to strengthen environmental management in Ukraine’s Ministry of Ecology and Natural Resources (MENR) in the areas of risk assessment, cost-benefit analysis, and environmental finance. An initial workshop was held, with participants from the national MENR, ministries of finance and health, and 25 regional representatives of the MENR. The Ukrainian workgroup included the ministries of environment, health, economy, and finance. In 2003, pilot projects involving comparative risk analysis and priority setting, cost-benefit analysis, and environmental funds design and management will be implemented in selected regions. USEPA has supported Local Environmental Action Programs (LEAPs) throughout Central and Eastern Europe and EECCA. Through the LEAP process, communities are organized and trained to assess their local environmental conditions and to develop and implement action plans that address their most pressing environmental priorities. In Ukraine, a LEAP activity is the principal activity for increasing the effectiveness of policies at the local level and for empowering citizens to affect environmental decision making. As a result of this activity, NGOs and local authorities are being mobilized to undertake environmental cleanup and nature conservation activities across Ukraine. Under the auspices of the Arctic Council, a forum for environmental and sustainable development cooperation among the world’s eight Arctic nations, USEPA participates in several multilateral projects aimed at identifying and reducing contaminants in the Russian North. Their projects are ongoing and will hopefully produce results applicable in addressing contaminant problems elsewhere in the region. Some of them also support Russia’s implementation of the 2001 Stockholm Convention on Persistent Organic Pollutants (POPs). Specific projects have included phase-out of PCB (polychlorinated biphenyl) use and management of PCB-contaminated wastes, evaluating principal sources of dioxin and furan contamination, reducing atmospheric mercury releases, environmentally sound management of obsolete pesticide stocks, and dissemination of “cleaner production” methodology. The U.S. Government, in close consultation with the World Bank, led an international effort to eliminate production of ozone-depleting substances (ODS) in Russia beyond what is permitted under the Montreal Protocol. This effort, designed in 1989 and completed in 2002, involved financial support from ten nations and the Global Environment Facility (GEF). It enabled seven Russian chemical enterprises to switch to production of other substances, which are both profitable and environmentally friendly. As a result, the Russian Federation is again able to meet its obligations under the Montreal Protocol. U.S. efforts in supporting environmental institutions have resulted in new and vibrant national regulators, a more vocal and capable NGO community, and a more environmentally aware public. As a result, natural resources are now more valued in the region and are priced more realistically. This in turn has given foreign investors a better understanding of the environmental regulatory playing field thus encouraging investment, which has helped to strengthen the overall economic picture while better maintaining the natural resource base.
USEPA Assistance to the Regional Environmental Centers USEPA has provided strong financial and programmatic support for the Regional Environmental Center (REC) in Hungary since the creation of the REC in 1990. Working through its 15 country offices throughout the region, the REC has fostered cooperation on a wide range of environmental topics. In addition to providing support for REC local offices in various countries, the USEPA has provided significant support to the REC in enhancing its stewardship of various regional activities. The Agency also has provided support to five RECs in EECCA in Moldova, Ukraine, Kazakhstan, Georgia, and Russia. All the Former Soviet Union RECs are fully functioning and implementing programs, including support for public participation in environmental decision making, environmental education and awareness, water quality management, grants support for NGOs and local communities, and local environmental action plans (LEAPs).
The United States has focused its assistance efforts in the environment and natural resources sector on providing technical assistance, training, and targeted purchases of equipment. This has allowed the U.S. to build upon the core capabilities of the U.S. Government agencies and the U.S. private sector. Progress has been achieved due to the expertise and cooperation from our partners in the region. The resulting activities over the past five years have assisted countries to meet international requirements, preserve natural resources, and use energy more efficiently, while enabling their citizens to live in a cleaner environment. The U.S. looks forward to building on our past dialogues and interactions to chart a course that will result in even greater environmental gains in the future.
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various host country entities, including the non-governmental organizations (NGOs), in the area of environmental and natural resource management by providing technical assistance and training in areas that the Government believes the U.S. has the highest levels of expertise. The technical assistance and training are coordinated with other donors active in the area. As a result, strong, substantive, and sustainable environmental programs have been developed throughout the region. 
Republics, USAID is assisting water managers and policy makers with a wide array of technical assistance, equipment upgrades, demonstration projects, training and public awareness activities. As a result, Kazakh, Kyrgyz and Tajik water policy makers are full participants in a transboundary water and energy program, the goal of which is to achieve regional cooperation through the establishment of agreements based on international standards. USAID and the National Oceanic and Atmospheric Administration are working with the National Hydromet Services in Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan to improve their capacity to collect, communicate and process water data. Policy reform, legislation development, information management, and decision making strengthen the capacity of the countries to more accurately estimate water needs based on soil condition data, meteorological data, and crop condition. The U.S. National Weather Service has partnered with a water management institute in Tashkent to monitor the snow pack of the Himalayan Mountains and forecast river runoff to the Aral Sea. In Uzbekistan, NOAA is assisting the meteorological service to build a demonstration model to better plan for water allocation using new technologies and procedures for snowmelt forecasting and regional data sharing. 
a number of projects intended to help make water cleaner. 
Credit Authority (DCA) facility for Southeast Europe. The DCA facility will provide partial guarantees to private lenders from a $15 million portfolio. The borrowers would be municipalities and/or private energy service companies. Initial countries targeted are Romania, Bulgaria, and Croatia. This program grows out of a very successful program in Bulgaria. 
tons per year. These reductions are expected to increase in 2003 and beyond. The principal air pollutants addressed, primarily through the introduction of low-cost technologies, are particulates, carbon monoxide, lead, nitrogen oxides, volatile organic compounds, and sulfur dioxide and other acid gases. 
methods of solid waste collection, transport, and disposal in a city by developing an integrated solid waste program including collection, recycling, and ecological disposal. The implementation of a functional integrated waste management program in the city complies with EU quality standards, local policies and regulations concerning waste management. The program also includes a system of local fines and penalties for non-compliance, a public education program and a pilot recycling program at various points in the city. Several such programs have been initiated in various cities throughout Romania. 
increasing public awareness regarding pollution and resulting problems. Also, USAID is providing management training for local contractors, water utilities, and the road fund on the use of international-standard project management concepts and techniques in the water and transport sector while concurrently developing the capacity of a local institution to provide international-standard project management training on a financially sustainable basis. 
resources offices, improved policy and regulatory frameworks, and built a greater public commitment. Easily replicated, sustainable demonstration models have complemented this training and technical assistance through the introduction of new cost- and resource-efficient technologies and procedures in the oil and gas sector as well as the water resource sector. 
