Validated Terminal Review of the UNEP/GEF Project “Development of a market for energy efficient lighting, air conditioners and refrigerators in Costa Rica” (GEF ID 9283) 2019 – 2025

This report is a Terminal Review of the UNEP project “Development of a market for energy efficient lighting, air conditioners and refrigerators in Costa Rica” implemented between 2019 and 2025. The project's overall goal was to “Accelerating improvements in energy efficiency under Costa Rica’s public procurement programs and reducing Costa Rica’s energy consumption and carbon dioxide emissions”. The review sought to assess project performance in terms of relevance, effectiveness and efficiency, and determine the sustainability of its results. The review has two primary purposes: accountability and learning. Data collection methods included: field observations, in-depth interviews, Focus Group Discussions and document reviews. Data analysis was based on applying triangulated data to assess performance against a reconstructed Theory of Change and its causal pathways. The main findings include: (i) strong relevance and alignment with UNEP, GEF and national priorities, with the project effectively strengthening enabling conditions for energy efficiency in Costa Rica’s public sector, particularly through public procurement reforms, standards, and demonstration projects; (ii) solid effectiveness in delivering core technical outputs, supported by the active and strategic roles of UNEP, MINAE and U4E, which helped compensate for execution challenges; (iii) moderate efficiency and scalability, constrained by regulatory barriers that prevented the establishment of the revolving fund, redistribution of non-financial implementation tasks among other stakeholders with enhanced flexibility in procuring goods for third-parties , and disruptions caused by COVID-19 and turnover within the Executing Agency; and (iv) knowledge management and communication products were delivered but not fully institutionalized, while gender considerations were addressed in implementation but not systematically integrated at design. The main recommendations to UNEP are: (i) to support the institutionalization of the energy-efficiency tracking tool within PGAI reporting frameworks, (ii) strengthen energy-management capacities across public institutions, and (iii) to promote the development of legally viable financing mechanisms aligned with public-sector regulations. Implementing parties are advised to reinforce follow-up with demonstration project beneficiaries, improve coordination with central financial authorities, and embed gender and knowledge-management considerations more explicitly in future project design to enhance sustainability and scale-up.