Electric Mobility For Sustainable Tourism
Electric Mobility For Sustainable Tourism
Total Project Cost: USD 763,242 (without IA fee); co-financing: USD 7,000,000; PPG: USD 50,000
(without IA fee)
PROJECT DESCRIPTION
1. Country Context
Albania is an upper middle-income country located in south-eastern Europe, bordering the Adriatic Sea and
Ionian Sea, between Greece to the south and Montenegro and Kosovo (UNSCR 1244) to the north. The
country has a population of 2,866,376 inhabitants1 with a surface area of 28,748 km2 and a coastline of 362
km.
In 2019, the share of urban population in Albania was 61.2 %2. Over the last 50 years, the urban population
of Albania grew substantially from 31.7 % to 61.2 % rising at an increasing annual rate that reached a
maximum of 2.51% in 2002. To support the rapid urbanization and avoid undue environmental impacts,
Albania is faced with the challenge to adapt and develop the existing infrastructure. As the urban areas
continue to grow, prioritizing the delivery of services and infrastructure is key for long-term urban
sustainability and productivity.
Since Albania generates over 98% of its electricity from hydroelectric power3, electric mobility is a
promising measure for GHG emission mitigation4. Due to the low grid emission factor, the level of
emissions due to driving an electric car is equivalent to obtaining a fuel efficiency of 0.05 L/100km 5.
However, despite the environmental benefits, the number of electric vehicles (EVs) in use is still limited.
In 2013, there were 123,188 EVs registered, which represents 1.1% of the total number of vehicles
registered that year in EU286.
Albanian cities are facing increased GHG emissions and air pollution from a surge in tourism related road
transportation which is almost exclusively based on fossil fuels.
The tourism industry in Albania occupies a key role in the economy and is an important driver for the
development of the country 7. The tourism industry has emerged as a significant contributor to growth with
4.7 million inbound tourists (in 2016) and has therefore become a strategic sector for economic health and
employment. According to the World Travel and Tourism Council, the total contribution of travel and
tourism was 26% of total GDP in 2016 and directly supported 85,500 jobs (7.7% of total employment).8
Tourism’s contribution to GDP is expected to rise by around 6% and create 368,000 jobs by 2027.
Although tourism has been recognised as a pillar of the economy in various policies (Law No. 93/2015),
there remains a lack of interministerial coordination to achieve long-term growth of the sector while
1 https://data.worldbank.org/country/albania
2 https://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS?locations=AL
3 European Commission, 2019: https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/20190529-albania-report.pdf
4 Ministry of Infrastructure and Energy, Renewable Energy Progress Report 2016-2017: http://www.akbn.gov.al/wp-
content/uploads/2019/03/CP_RES-Progress-Report_template_Albania-2016-2017.pdf
5 University of Michigan: http://umich.edu/~umtriswt/PDF/SWT-2017-18.pdf
6 Eurostat. New Registrations of Passenger Cars, Motor Coaches, Buses and Trolley Buses, by Type of Vehicle and Alternative
Geographical Target:
The project will apply e-mobility solutions in the municipalities of Berat and Belsh, given their eco-tourism
potential. In the period of 2014-2018, incoming foreign citizens reached 23.6 million nationally9. From
2017-18 the number grew by 15.8%. Berat is a top destination, while Belsh is becoming a new attractive
destination, with 131,000 tourists in 2019 alone 10.
Systemic challenges and specific environmental threats:
The municipalities do not have clear development strategies. The villages in both municipalities have been
included in the program "Integrated Rural Development Program - 100 Villages" (Seferan, Roshniku and
Qafë Dardha). Therefore, the popularity of the two municipalities is expected to continue growing.
While these developments are expected to increase the number of tourists in the target areas, there also
exists an important risk that municipalities develop in an unsustainable way to accommodate the demand.
Specifically, systemic barriers preventing the market uptake of EVs and their integration in the tourism
sector are:
• Absence of holistic, integrated approach to tourism
• Lack of capacity for sustainable urban and transport planning and management among national
and local stakeholders
• Inadequate/insufficient policy, regulations and incentive mechanisms to encourage investment
in e-vehicles
• Low awareness of stakeholders of the opportunities associated with the application of EVs;
• Lack of infrastructure: testing facilities, charging station networks and support applications
such as maintenance.
Associated drivers:
The regional connecting infrastructure has undergone radical change lately, increasing the region’s
attractiveness and accessibility. Road infrastructure is rehabilitated on the Belsh-Fierza-Lushnje and Belsh-
Sheza-Peqin axes, and recently the construction of the regional road Elbasan-Belsh-Kuçovë-Berat has
enhanced access to the area, reducing the travel time from Tirana to 45 minutes.
Describe the existing or planned baseline investments, including current institutional framework and
processes for stakeholder engagement and gender integration11
Baseline Investments:
The project design will build upon existing and planned baseline investments in the region. (see Annex A
for a list of baseline projects for potential collaboration and knowledge exchange, see Annex B for baseline
policies).
screening template has been completed and this project has been categorized as ‘B’. Hence, an Environmental and Social
Management Plan (ESMP) will be developed during the PPG phase.
Institutional framework:
UNIDO will be responsible for the implementation and coordination of the project ensuring adherence to
GEF standards and requirements.
The National Centre for Environment, Tourism and Sustainable Development (NCETSD) has been
identified jointly with the GEF OFP as the preferred executing entity. NCETSD is a non-governmental
organization (NGO) focusing on sustainable development in line with the SDGs. During the PPG phase,
further information will be analyzed and detailed institutional capacity assessment will be undertaken.
Stakeholder Engagement:
The project will be carried out in close cooperation with relevant ministries, government agencies and
municipalities. The list of potential stakeholders are given in the Annex A. Indicated partners have been
identified through early consultations and will be confirmed during PPG.
Gender:
UNIDO recognises that women have a significant positive impact on the development of sustainable
transport and tourism. Gender mainstreaming will be based on GEF's Policy on Gender Mainstreaming and
UNIDO’s Policy on Gender Equality and the Empowerment of Women (2009) as well as the Guide on
Gender Mainstreaming Environmental Management Projects. Special attention will be given to be sure that
the data collected from project activities is gender-sensitive.
Describe how the integrated approach proposed for the child project responds to and reflects the
Program’s Theory of Change, and as such is an appropriate and suitable option for tackling the
systemic challenges, and to achieve the desired transformation with multiple global environmental
benefits.
The project draws directly from the suite of activities presented under the Global Programme and closely
aligned with its theory of change. The project will accelerate the deployment of smart charging and electric
buses, mitigating the road transport sector’s impact on climate change by reducing GHG and particle matter
(PM2.5) emissions associated with fossil-fuel based vehicles. The project will focus in particular on
transportation related to fast-growing tourism in the target cities.
It will demonstrate the technical and commercial viability of e-mobility infrastructure, strengthen
institutional capacities to design, plan and implement e-mobility plans, and create incentives for investment
in low-carbon transportation infrastructure. The solutions will increase accessibility of touristic sites and
reduce the pressures of urbanization while generating important spillover effects such as employment
opportunities and enhanced access to services (See Annex C – Theory of Change diagram).
The project outputs are designed in a way to tackle the identified root causes of the barriers on the
mainstreamed e-mobility in Albania. The outcomes of the project activities will address the following
systemic challenges:
• Transport related GHG and PM2.5 emissions of the tourism sector
• Improvement in air quality and noise pollution
• Supporting low-carbon growth of the tourism sector
• Resilience to climate change of a rapidly urbanizing society
• Increased private sector investments
Describe the project’s incremental reasoning for GEF financing under the program, including the
results framework and components
Baseline Summary of GEF incremental Benefits
intervention
Component 1 Institutionalisation of low-carbon mobility
- Lack of the necessary 1.1 Integrated Smart City Guidance National institutions,
policy, regulations and Package prioritizing public policy and regulatory
incentive mechanisms transportation, active and low frameworks to
to encourage uptake emission transportation modes for catalyze widespread
- Low awareness within tourism use of EVs in both
the public of the private and
1.2 Recommendations on EV commercial
opportunities associated
policies and regulations and applications and in
with EVs; Albanian roadmap on particular in the
- Lack of infrastructure: Standardization of Electric tourism sector.
testing facilities, Mobility
charging station
networks and support 1.3 Formation of EV Steering
applications, Committee bringing together key
maintenance, etc. stakeholders including the tourism
- Unfit / inexistent sector to trigger behavioural
standards for charging change in tackling mobility
stations (operation, challenges
maintenance etc.)
Component 2 Short-term barrier removal through e-mobility infrastructure demonstration
in the municipalities of Berat and Belsh
- Increase in tourism in The project will demonstrate the - E-mobility
recent years could take technical, financial and solutions
an unsustainable turn if environmental viability of e- demonstrated as
left unaddressed mobility solutions as well as their financially
- Surge in urban high relevance to the tourist sector feasible.
population and vehicle in the two target municipalities of - Enhanced
Berat and Belsh. connectivity and
registrations has led to
accessibility will
increased GHG
2.1 Climate-smart capital benefit tourism
emissions, congestion, investment plan for Berat and and employment
air (PM2.5) and noise Belsh with a focus on e-mobility opportunities
pollution infrastructure investments
- Lack of awareness of The final decision on
technical and financial 2.2 E-mobility infrastructure
investments will be
viability of e-mobility implemented to demonstrate
made during the PPG
solutions, in particular sustainable transportation
phase. Indicatively,
their application to technology applications the conversion of at
sustainable tourism least 35 buses will be
supported and 50 e-
chargers could be
installed.
Component 3 Preparing for scale-up and replication of low carbon electric mobility
interventions
- Insufficient technical Generating and exchanging - Strengthened
capacity and knowledge knowledge and lessons learned stakeholder
Baseline Summary of GEF incremental Benefits
intervention
on e-mobility design, through national and international capacity to design,
operation and Global Programme events to raise plan and
maintenance awareness on e-mobility implement
- Lack of holistic challenges and solutions. innovative
approach to transport transport solutions
and tourism at the local 3.1 Strengthened institutional - Increased
capacity and awareness raising
levels awareness and
through workshops for
- Limited data on policymakers and relevant willingness of
technical and stakeholders public actors to
commercial indicators study and work in
of e-mobility 3.2 Incentives to de-risk the e- e-mobility
mobility sector for private sector - De-risked e-
investments identified mobility
investment thanks
3.3 Participation in Global Electric to the availability
Mobility Programme through of reliable data
global events, annual meetings, and and lessons
targeted training programmes to learned
promote the replicability of
project’s intervention
Component 4 Monitoring and Evaluation
This component aims at establishing and implementing effective project monitoring and
evaluation mechanisms alongside capturing progress and lessons learned.
4.1.1 Monitoring and independent mid-term review
4.1.2 Independent terminal evaluation
The project will establish a national platform to facilitate cross-sectoral application of EVs, which will
trigger behavioural change in tackling mobility challenges. Authorities involved in transportation and
tourism planning (such as Albanian Institute of Transport and National Tourism Agency) will be consulted
in order to ensure that an integrated approach to transport and tourism is provided. It is envisaged that the
platform will be connected to the Global Platform for Sustainable Cities12 for efficient knowledge sharing
of best practices on urban development, planning and financing. The platform will engage with other
programs such as EnerNETMob13, which promotes shared electric mobility by implementing interregional
pilot networks in Mediterranean region and EU funded IPA Italy-Albania-Montenegro Programme14 which
focuses on sustainable tourism including sustainable transport service and facilities.
The platform will share national experiences to tackle challenges beyond national borders by promoting
low carbon economy and fostering innovative practices through an integrated cooperation approach to
sustainable tourism. The project will thus contribute to Albania’s Intended Nationally Determined
Contribution (INDC), which targets to reduce CO2 emissions by 11.5 % compared to the baseline scenario
12 https://www.thegpsc.org/
13 https://enernetmob.interreg-med.eu/
14 https://interreg.eu/programme/interreg-ipa-cbc-italy-albania-montenegro/
in the period of 2016-2030. This reduction means 708 kT CO2 emission reduction by 2030 and includes
the transport and energy sectors.15
The project will build upon ongoing initiatives in Tirana (electric buses and taxis, following the
development of a mobility plan) and will focus on increasing their durability by reinforcing and expanding
national policies and the national action plan for electric vehicles under Component 1.
With the development of capital investment plans for Berat and Belsh, Component 2 aims to utilise GEF
funding to provide investors with e-mobility opportunities that can be replicated in a variety of settings to
establish links between different pillars of the economy. The knowledge generated from the pilot
demonstrations will complement that of other ongoing projects in Tirana, to establish a reliable database to
be used by potential investors.
Half of activities under Component 3 are dedicated to the generation and exchange of knowledge. In
cooperation with University of Tirana, the project will organize seminars dedicated to raising awareness on
electric mobility as an effective approach towards sustainable city planning. The event will identify
priorities and needs in light of the lack of technical capacity to incentivise vocational training and higher
education courses. The outputs of the seminars will be disseminated to further raise awareness of the
environmental challenges embedded in a sporadic approach to sustainable transport in general, and tourism
in particular. Particular attention will be given to the collection, re-use and recycling with regards to
batteries.
Jointly, the Global Programme will develop a range of knowledge materials for e-mobility policy making,
development of business models and finance schemes, methodologies for e-mobility demonstrations which
will be provided to the countries through the Regional Support and Investment Platforms. Four events will
be held for policy makers and decision makers to accelerate EV deployment in the target municipalities and
beyond. The Programme will act as a knowledge hub to develop linkages and provide best practices to
support the conceptualization and implementation of e-mobility policies.
As such, the project design is therefore tailored to the specific barriers to electric mobility within the
Albanian context (Components 1, 2) and then it is designed to share lessons on its experience within the
wider programme to leverage its lessons learned at a regional and global level (Component 3).
15
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Albania%20First/Albania%20First.pdf
Annex A: Baseline Projects
Baseline Projects
Authority Summary
The city of Tirana • The city authorities in the Albanian capital Tirana have started testing
electric buses as part of efforts to lower the level of pollution in the city. The
first bus that has being tested is a Polish Solaris Urbino electric. Electric
buses are being tested in Kombinat-Kinostudio urban line.
• Tirana city authorities licensed the first electric taxi company in September
2017 and the police force is driving an all-electric fleet.
Supporting Economic • Establishment of technological center to convert diesel cars to electric.
Agency16 • Construction of a 0.2 MW photovoltaic power station to supply clean energy
to lighting and ecological electric vehicles in the public park of Belsh.
• Providing transport services by ecological vehicles in tourist cities through
public-public partnership model.
• Building ecological dock for transport vehicles (boats, ships, bicycles, cars
etc) in the lake of Pogradec and Belsh.
EBRD17 • Tirana is part of the EBRD’s Green Cities Framework, planning and
investing in its future green development.
• The focus is on increasing energy sustainability and energy efficiency
• Diversifying energy sources, reduce losses, increase transmission and
distribution capacity
• Promotion of the shift towards more energy efficient production
16 ADF/SEA, 2019: Introductory document on the mission and objectives of the SEA at ADF. p. 4
17https://www.ebrd.com/cs/Satellite?c=Content&cid=1395251989333&d=Mobile&pagename=EBRD%2FContent%2FContentLa
yout
Other Baseline Projects
Project/Programme title Budget Source of funding Year Agency(ies)
- European Investment
The regeneration of the Lana EUR 11 European Investment
2019 Bank
River area in Tirana. million Bank
- Municipality of Tirana
Municipality of
Tirana Smart City n.a Tirana Municipality of Tirana
UNDP
List of stakeholders
Ministry of Tourism and Environment
Ministry of Infrastructure and Energy
The National Tourism Agency (AKT)
National Centre for Environment, Tourism and Sustainable Development (NCETSD) (national execution
partner)
Institute of Transport
Albanian Development Fund
Supporting Economic Agency
Municipality of Berat
Municipality of Belsh
University of Tirana
Annex B: Baseline Policies
The project is fully aligned with the national development priorities reflected in the National Strategy for
Development and Integration (NSDI II) 2015 – 202018, which is the major guiding document for economic
and social development in Albania. One of the three main pillars for growth outlined in the strategy is
“Sustainable Growth through the Effective Use of Resources.” To support the continued growth and
economic development in Albania, the strategy outlines the need to develop the infrastructure, to facilitate
accessible and integrated transportation and reliable energy supply while “ensuring an effective
environmental policy, minimizing environmental degradation and preservation of renewable resources.”
Albania is pursuing integration into the European Union. In 2014, the Council of the European Union (EU)
agreed to grant Albania candidate status and recommended further development of reforms to open
negotiations for membership to the EU. The country is undertaking many structural reforms to boost
economic growth and increase competitiveness. Several interventions aim to support the Government of
Albania to align national laws, policies, and regulations with the requirements of the EU Acquis. 19 Specific
efforts will:
- Promote integration of health and environmental considerations into transport policies;
- Support ministries and departments to incorporate sustainability and low emission measures into
sector policies, strategies, and regulations; including accelerating electric mobility in urban areas
through innovation and technology transfer.
The Council of Ministers approved on 20 January 2016 the National Action Plan for Renewable Energy
Sources (NAPRES) for the period 2015-2020, which sets out the plan for achieving the 2020 target, namely
that 38% of the final energy consumption shall come from renewable energy sources. Moreover, the
Albanian’s Vision in line with the “2016-2020 Sectorial Strategy of Transport and Action Plan” highlights
the need for development of a safe, reliable and comfortable system of public transport.
Through the DCM Nr. 633, dated 26.10.2018 with the aim of reduction of air pollution, the Ministry of
Tourism and Environment set up new standard in the motor vehicles emissions and discharges. New cars
that have not previously been registered for circulation in any other country, which meet the European
Union's EURO 5 rate, are automatically registered in Albania. While used cars should meet the EURO 4
standard, should have been produced no more than 10 years before the date of their first registration in
Albania. An Environmental-Carbo-Tax is levied based on the age and engine size of the vehicle. The tax
incrementally increases from 4 years upwards. The import tax favours newer and smaller petrol vehicles.
Significant developments are done in order to improve the performance of the energy sector in Albania.
Other relevant policies include the National Plan for European Integration (NPEI) 2016-2020, the National
Economic Reform Program for Albania (NERP) 2018-2020, the Economic Reform Programme 2019-2021,
the Business and Investment Development Strategy 2014-2020 (BIDS), the Albanian Business Innovation
and Technology Strategy 2017-2022, the National Strategy on Tourism 2014-2020.
18http://planifikimi.gov.al/index.php?id=l614s&L=2
19EU Acquis Chapter 27 on Environment contains over 200 major legal acts covering horizontal legislation, water and air
quality, waste management, nature protection, industrial pollution control and risk management, chemicals, and forestry.
Relevant regulatory framework
Year Name Main Focus Relevant targets
2002 Law no. 8906, date Creates framework for establishment Increase carbon sequestration
6.06.2002 “On and administration of the protected process and tourism
protected areas” areas development.
2011 Law No 10 440/2011 It is approximated to the Council Reduction of impacts to
“On Environmental Directive 85/337/EEC on the natural resources, reduction
Impact Assessment” assessment of the effects of certain of emissions, etc.
public and private projects on the
environment. It governs the impact
assessment procedure for projects that
can have significant impact on the
environment, the contents of the
environmental impact assessment, the
participation of stakeholder bodies
and organizations and the public,
supervision and other issues relevant
for the environmental impact
assessment
2013 Law no. 91/2013, date Stipulates that for any spatial plan or Reduction of impacts to
28.02.2013 “On sectorial plans developed under the natural resources, reduction
environmental law no. 107, date 31.07.2014 “On of emissions, etc.
strategic assessment” territorial planning and development”
an environmental strategic assessment
has to be carried out by the authority
proposing the plan.
2013 Multi-sectorial The main objective of the Multi- The strategy’s concrete
National sectorial National Environmental measures include, among
Environmental Quality Quality Strategy 2013-2020 is to others, reduction of pollution
Strategy 2013-2020 improve air quality in Albania overfrom industrial use through
the long term, which has a direct the promotion of energy
impact on the quality of life and efficiency in new
environmental protection. It also technologies in the industry;
provides steps for coordinating thepresentation of on-line
current legal framework with emission monitoring of
European legislation, as well as its
chimney stacks of industrial
implementation. entities to ensure
compatibility with limit
values of pollutants;
promotion of the use of
renewable energy sources;
and presentation of grant
schemes or reimbursement
schemes for energy efficiency
improvements.
2014 Business and The Business and Investment Increase the range of
Investment Development Strategy 2014-2020, is ecological products that are
Development Strategy the main document for the based on the effective use of
2014-2020 identification and implementation of
Relevant regulatory framework
Year Name Main Focus Relevant targets
the national policies for the promotion resources in the tourism and
of business investments for the period agro-industry sectors.
2014-2020.
2016 National Renewable It describes the development of the Reduction of CO2 emissions.
Energy Action Plan Albanian energy sector under a National target of 38% of
Renewable Energy scenario based on renewable in the final total
the Draft Energy Strategy, which is energy consumption of the
based upon Albania’s obligations as a country in the year 2020
Contracting Party to the Energy compared together with
Community Treaty to transpose and support measures for
comply with the EU Directives on the achieving these targets.
promotion of the use of energy from
renewable sources.
2016 National Strategy for The NSDI II, provides the framework The strategy actively
Development and for national strategic priorities and encourages the development
Integration 2015–2020 targets of 27 sector and cross-sector of sustainable tourism in
(NSDI-II), strategies. The strategy serves as an Albania through focusing
important reference document for public infrastructure
Albania’s development partners. One provision in areas of current
of the priorities of the NSDI-II is the and potentially high tourist
greater connectivity in country demand.
infrastructure and the sustainable use
of resources. The NSDI II adopts a
broad definition of ‘infrastructure’
comprising energy, transport,
tourism, natural resources and
environment. Investments are centred
on meeting the standards of the EU
Acquis and are expected to expand the
opportunities for business and the
economy, and to increase public well-
being.
2017 Law No. 7/2017 “On The objective of this law is to Albania has set a binding
the promotion of the facilitate the harnessing of Albania’s target of 38% of its gross final
use of energy from significant renewable energy energy consumption to be
renewable sources”. resources, in particular in the area of fulfilled from renewable
hydroelectric plants, solar energy as energy by 2020, which is an
well as biomass resources. ambitious target compared to
33% in 2014.
2018 Sectorial strategy of Development of sustainable transport Improve the air quality,
transport & action plan reduce the CO2 emissions.
2016 –2020
2018 Strategy for In 2018, the Integrated Rural Improvement of public
Agriculture and Rural Development Program, “100 Villages infrastructure (support for
Development in Program ", was incorporated as part of road infrastructure,
Albania 2014-2020 the strategy. It aims to coordinate revitalization of public /
development interventions in 100 urban spaces, community
rural villages, with high potential for infrastructure, public
Relevant regulatory framework
Year Name Main Focus Relevant targets
economic and social development, services, environmental
agro-tourism and rural tourism, nature infrastructure and tourism.
and environment, as well as cultural Economic development
heritage. through diversification of
economic activities
(improvement of tourism
potential in rural areas, agro
tourism and rural tourism,
investment).
2018 National Energy In particular, implementation of the The strategy is intended to
Strategy 2018-2030 strategy is intended to increase energy achieve increased utilization
security, integration into regional and of RES technologies and
EU energy markets, energy environmental protection
efficiency, decarbonization of the principles.
economy, as well as research,
innovation and competitiveness.
2019 Economic Reform The Government of Albania, in line Transport and energy
Programme 2019- with important strategic documents infrastructure, owing to the
202120 and other sectoral strategies, has fact that they have not been
prioritized 20 reform measures. These fully modernized or
reform measures encapsulate some of constructed. Among the
the priorities of the government reform priorities are the
ranging from energy market diversification of the energy
liberalization, diversification of sources, reducing energy
energy sources, transport, broadband dependence from
connectivity, land consolidation and imports and modernize the
defragmentation, businesses land transport infrastructure.
environment, trade, VET, water and
wastewater sector, employment, and
social inclusion.
20 https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/albania_erp_2019-2021.pdf
Annex C: Theory of Change