Training on Cost-Benefit Analysis and Cost-Effectiveness Analysis for Environmental and Energy Projects
The Ministry of Environment in cooperation with the United Nations Development Programme organized a hands-on training on “Cost-Benefit Analysis and Cost-Effectiveness Analysis for Environmental and Energy Projects”, aiming at providing the necessary tools to improve decision-making processes. The event took place on Tuesday 19 and Wednesday 20, 2014, and was delivered by Dr. Tobias Schmidt.
This workshop enabled the improved practice of integrating economic feasibility into environmental and energy-related projects in order to highlight their economic profits to enhance policymaking strategies. This training provided two analysis tools differing in objectives; Cost-Benefit Analysis targeting the policy with the maximal societal benefit, and Cost-Effectiveness Analysis aiming at reaching a certain target at minimal cost.
Participants were introduced to the concept of Cost-Benefit Analysis and Cost-Effectiveness Analysis as decision support tools, along with basic terms and principles in finance. Moreover, the training presented the typical risks from the fields of energy and environment, and consequently the de-risking methods to improve the cost-effectiveness of public policies. The training had a dual perception regarding the topics presented; a public policy point of view and a private investor’s approach. As to encrypt the materials provided in a practical fashion, the attendees were grouped to solve energy related case studies.
This Cost-Benefit Analysis and Cost-Effectiveness Analysis training was organized based on the request of the members of the national Climate Change Coordination Unit which groups focal points from public and private institutions and international and non-governmental organizations that directly or indirectly deal with climate change.
Participants included representatives from the Ministry of Finance, the Ministry of Environment, Ministry of Energy and Water, Ministry of Agriculture, Lebanese Petroleum Authority, the Higher Council for Privatization, Lebanese Center for Energy Conservation, Banque du Liban, UNDP projects, academic institutions, consultants and other authorities.