Transcript (NAMA). - CliFiT

Climate strategies - Mitigation
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Contents & Objectives
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Content
• Objective of this session
• LEDS and NAMA overview
• NAMA Facility
• Country examples
• Key questions
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What you can expect to learn from this session:
• Get familiar with the importance of strategies in the field of climate
change mitigation and for future climate finance
• Understand the concepts of
• Low Emission Development Strategy (LEDS) and
• Nationally Appropriate Mitigations Actions (NAMAs)
and their relevance for climate finance
• See examples of countries who developed or are implementing their
NAMA
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Why do we need strategy & planning?
Strategy & plans can help to…
 set concrete objectives, ideally based on rigorous data assessment and
forecasts
 outline how to achieve the objectives in the most cost-effective way and
with which co-benefits through specific short- and mid-term actions
 give guidance as
 to with what kind of policy mix these objectives should be achieved,
 what climate finance resources are needed and
 what kind of international support is necessary
Source:
http://mitigationpartnership.net/
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Overview
Low-Emission Development Strategies (LEDS) and
Nationally Appropriate Mitigation Actions (NAMA)
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Low-Emission Development Strategies (LEDS)
LEDS …
 are generally used to describe forward looking national economic development plans or
strategies that encompass low emission and/or climate resilient economic growth;
 first emerged under the United Nations Framework Convention on Climate Change
(UNFCCC) in 2008;
 can advance national climate change and development policy in a more coordinated,
coherent and strategic manner, e.g. by enhancing coordination across different ministries;
 can improve communication with other stakeholder groups such as businesses and civil
society, and increase public awareness of climate change science and policy;
 can help guide the diversification of an economy (e.g. away from fossil fuels);
 inform the international community in a variety of ways, e.g. by identifying priority actions
for funding to the international community.
Source:
UNFCCC
Adelphi
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Low-Emission Development Strategies (LEDS)
Essential LEDS elements are …





A long-term strategic vision
Baseline GHG emissions analysis and projections
Mitigation opportunities and costs / Prioritization of key mitigation sectors and measures
Identification of policies and measures and definition of targets
Cost and financing of the LEDS
Source:
OECD
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Development of NAMA concept
Nationally Appropriate Mitigation Actions (NAMA) are “voluntary actions
taken by developing countries to reduce GHG emissions” (UNFCCC)
2009
2011
2010
2012
2013
The NAMA concept has been gradually developed
NAMAs are…
 …voluntary (not legally binding!)
 …nationally determined
Source:
UNFCCC
Adelphi
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Connection of LEDS and NAMA
NAMA should be…
 …embedded in an overarching low emission
development strategy (LEDS)
 …in line with economic
development and poverty
eradication priorities
 …in accordance with the
capabilities and social and
economic conditions of the
country
 …measurable, reportable and
verifiable
Source:
GIZ
UNFCCC
Adelphi
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NAMA and CDM
CDM are …
 …defined in Article 12 of the
Kyoto Protocol.
 It allows a country with an
emission-reduction or emissionlimitation commitment under the
Kyoto Protocol (Annex B Party) to
implement an emission-reduction
project in developing countries.
 Such projects can earn saleable
certified emission reduction (CER)
credits, each equivalent to one
tonne of CO2, which can be
counted towards meeting Kyoto
targets.
NAMA are…
 diverse in nature, e.g. they
may be
 National goals or
strategies
 Sectoral policies or
programmes
 Projects/actions
 from this perspective, NAMA
may even comprise CDM-like
activities
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Co-benefits of NAMA
Economic co-benefits:
 Jobs generated
 Infrastructure investment
 Development or diffusion of technology
 Financial co-benefits
Environmental co-benefits:
 Protection and efficient utilization of natural resources
 Reduction of noise, odours, pollutants
Social co-benefits:
 Improvement of labor conditions and human rights
 Promotion of education
 Improvement of health and safety
 Poverty alleviation
 Engagement of local communities
 Empowerment of women
Source:
Sustainable Development Impacts of NAMAs: An integrated approach to assessment of co-benefits based
on experience with the CDM, UNEP Riso Center 2013
Benefits of the Clean Development Mechanism 2011, UNFCCC 2012
GIZ 2013
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Developing NAMA in 10 steps: GIZ Tool
Source:
GIZ
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Financing NAMA: Key resourcing questions
Identifying the financing needs of the NAMA:
•
What are the barriers to be addressed regarding the proposed action under the NAMA?
What are the key elements of finance to achieve the objectives of this activity?
•
What financing mechanisms in existing budget may be utilised to finance NAMAs?
Will NAMA require funding in addition to existing public finance budget?
•
Which elements are commercially viable, which elements require additional support?
•
What are the funding gaps and what kind of instruments are needed from bilateral and
multilateral, domestic public and private sector?
Source:
Harnessing the potential of NAMA Financing, E3G presentation 2014
Resourcing NAMAs – Stepping stones in a national climate financing strategy, E3G 2014
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Financing NAMA: Key resourcing questions (cont.)
Various types of NAMA finance available from international partners to gov’ts
•
Project level financing as part of a programme e.g. green credit lines
•
Budget support and development policy loans
•
Multi-donor trust funds, pooled funds
•
Grant / technical assistance for project and programme development
Source:
Harnessing the potential of NAMA Financing, E3G presentation 2014
Resourcing NAMAs – Stepping stones in a national climate financing strategy, E3G 2014
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Financing NAMA: some current funding options
Title
Regions
Sectors
Support type
Funding type
Climate-related ODA
funding
All
All
NAMA preparation
• Grants
• Concessional loans
International Climate
Initiative (IKI)
All
All
NAMA preparation
• Grants
• Loans
NAMA Facility
All
All
NAMA
implementation
• Grants
• Concessional loans
• Guarantees
Global Environmental
Facility (GEF)
All
All
NAMA preparation
and implementation
• Grants
Green Climate Fund
All
All
NAMA
implementation
• Grants
• Loans
EU-Africa Infrastructure
Fund (ITF)
Africa
Energy supply
and transport
NAMA
implementation
• Grants
• Guarantees
• Equity
Neighborhood
Investment Facility
Eastern Europe,
Middle East,
North Africa
Energy, industry,
forestry,
transport, waste
NAMA preparation
• Grants
• Guarantees
• Equity
Austrian NAMA
Initiative
Africa
Energy supply,
buildings
NAMA preparation
• Grants
• Carbon finance
Source:
UNFCCC NAMA database
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Financing NAMA: some current funding options (continued)
Title
Sectors
Support type
Funding type
Asia Pacific,
Latin America &
Caribbean
All
All
NAMA preparation
• Grants
• Carbon finance
All
NAMA preparation
Inter-American
Development Bank
(IDB)
Latin America &
Caribbean
All
NAMA preparation
and implementation
• Loans, guarantees,
equity, carbon
finance
• Grants, loans,
concessional loans,
guarantees
ODA for Climate
Change Measures
All
All
NAMA preparation
• Grants
• Concessional loans
Latin American
Investment Facility
(LAIF)
Latin America
and the
Caribbean
Energy supply
and transport
NAMA
implementation
• Grants
• Loans
NEFCO Carbon Finance
and Funds
Spanish NAMA
Platform
Regions
Source:
UNFCCC NAMA database
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Supported NAMA
From
Country
Support for Activities Georgia
related to sustainable
Management of Forests
Global Environment
Facility (GEF)
ODA for Climate
Change Measures
(Japan)
Azerbaijan
NAMA
Type of
support
Adaptive Sustainable Forest Management Financial
in Borjomi-Bakuriani Forest District
Supported
Amount
1,940,492
Nationally Appropriate Mitigation Actions Financial
for low-carbon end-use sectors
100,000
Kazakhstan Nationally Appropriate Mitigation Actions Financial
for Low-carbon Urban Development
5,930,000
Serbia
Introduction of metering system and
billing on the basis of measured
consumption in district heating systems
Capacity
building
0
Use of Solar energy for domestic hot water Capacity
production in one heat plant
building
0
Expansion of existing city heating network Technology
NAMA Facility
Colombia
Colombia TOD NAMA
Financial
Spanish NAMA
Platform
Uruguay
High Integration Program of Wind Energy
Financial
Source:
960,000
18,500,000
UNFCCC NAMA database
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NAMA Facility
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Financing NAMA: International German-British NAMA Facility
Founders:
Germany and the UK (2012)
Denmark EU (2014)
Total commitment:
2012 - $70 million
2013 - $50 million
Projects supported:
implementation of transformational
NAMAs in developing countries
Support instruments:
financial (grants, concessional loans and
guarantees) and technical cooperation
Calls for proposals:
see http://www.nama-facility.org/
Next Call:
April 2015
Source: http://nama-facility.org/
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Financing NAMA: International German-British NAMA Facility
Projects supported:
• Colombia Transit-oriented Development (TOD) NAMA
• Mexico Sustainable Housing NAMA
Projects under
appraisal:
•
•
•
•
•
•
Chilean Self-supply Renewable Energy (SSRE) NAMA
Costa Rica Low Carbon Coffee NAMA
Indonesia NAMA SUTRI
Peru Sustainable Urban Transport NAMA
Tajikistan Forestry NAMA
Thailand RAC NAMA and Burkina Faso Biomass Energy NAMA
Source: http://nama-facility.org/
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NAMA Facility project criteria
Eligibility criteria
• Formal requirements
• Submission by a qualified
institution
• Endorsement by national
government
• Cooperation with qualified
delivery organization
• Readiness for starting
NAMA implementation
• Adequate time-frames
• Financing €5-15 million
Ambition criteria
Feasibility criteria
Potential for
transformational change
National and
international
embeddedness
Mitigation ambition
Financial ambition
Sustainable
developments co-benefits
Project structure
Long-frame and
monitoring and
evaluation
Project finance
• Concept for phase-out of
international support
• Qualification as ODA given
Source: http://nama-facility.org/
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NAMA Facility project criteria: transformational change
Projects are considered as conducive to transformational change if they:
 contribute to enabling either a significant evolution in terms of scope (e.g. scaling-up or
replication), or enabling a faster and/or a significant shift from one state to another;
 have a catalytic effect and include mechanisms to ensure the sustainability of the
impacts, local ownership and political will, the involvement of the private sector and
the use of innovative technologies and approaches, and;
 allow for systematic learning processes.
The concept of transformational change towards sustainable low-emission development is
a rather new concept it will likely be adjusted as knowledge evolves..
Further reading:
 NAMA Facility (2014): Potential for Transformational Change, NAMA Facility factsheet
 Wuppertal Institute (2014): Capacity Building for Transformational Change in
International Climate Finance
Source: http://nama-facility.org/
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Country examples
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Colombia example: Transit-oriented Development NAMA
Short
description
 Transformation of urban development in Colombia through transit-oriented
urban development (TOD) to reduce growth in car traffic by 25–36%
 Linking climate, transportation and housing investment and policies
 Financial and technical assistance instruments, public-private partnerships to
address market barriers and attract to private TOD investment
 Duration: 2014-2016
Institutions
Accessed
finance
 Partner ministries:
Ministry of Transport,
Ministry of Environment & Sustainable Development,
Ministry of Housing
 Delivery organizations: Financiera de Desarrollo Territorial S.A. (FINDETER),
Center for Clean Air Policy (CCAP)
 NAMA Facility:
 FINDETER:
€14.9 million
$20 million
Source: http://nama-facility.org/
http://ccap.org/
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Mexico example: NAMA for Sustainable New Housing
Mexican Sustainable Housing NAMA
Objective:
Special Climate Change
Programme: reduce 51 Mt
Mexican
climate change CO2e per year by 2012,
including “efficient housing
policy
and green mortgages”
Sector:
Investors
targeted:
Emission reductions through facilitating private
investment into sustainable housing
New residential housing for low-income families
• Households
• Housing developers
Financial
incentives:
•
•
Low-cost loans
Grants
Institutional set-up:
National Housing
Programme: construct 6mn
Mexican
housing policy homes by 2012, 1mn of
which must be sustainable
International
donors
Mexican
government1
National Housing
Commission
(CONAVI)
NAMA Fund
Federal Mortgage
Company (SHF)/
Subsidized loans revolving
fund
Trust fund for
grants
Financial
intermediaries
Financial
intermediaries
Households
Housing
developers
More info here
Unified Housing
Registry (RUV)
Information flow
Financial flow
Monitoring
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Ministry of Environment and Natural Resources (SEMARNAT), Ministry of Agrarian, Territorial
and Urban Development (SEDATU), Secretariat of Finance and Public Credit (SHCP)
Source: GIZ, CONAVI
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Mexico example (cont.): financing structure of the Housing NAMA
Inputs
Loan Component
(EUR 159.2m)
Ordinary
loan from
the IDB1
Concessional
loans from CTF
and KFW
Instruments
Green Mortgage
(EUR 39.8m)
Bridge Loans
(EUR 119.4m)
Implementation
Financial
Intermediaries
Financial
Intermediaries
Technical Assistance Component
(EUR 2.3m)
Grants
from CTF
TA Ecocasa
(EUR 1.8m)
Grants
from LAIF
TA Passive House
(EUR 0.5m)
Grant Component
(EUR 6.5m)
Grants
from LAIF
Investment Grants
(EUR 6.5m)
Housing developers
Outcomes
Households
Green Mortgage
Low Carbon Housing
Passive Houses
1
Inter-American Development Banks (IDB), Clean Technology Funds (CTF), Latin American
Investment Facility (LAIF)
Source: www.perspectives.cc
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Chile example: Self-Supply Renewable Energy (SSRE) NAMA
Self-Supply Renewable Energy Systems NAMA in Chile
Objectives:
•
•
Financial
component
Pre-investment
grant for prefeasibility studies
Technical support
component
Training and
capacity building
Technical help desk
Fund for
renewable energy
investments
• Subsidized loans
at favorable
rates and
repayment
terms
• Grants of up to
20% installation
cost
Knowledge
exchange
Grid connection
support
Outreach
component
Outreach and
awareness raising
• Public
awareness
campaign
• Technology
shows and
demonstrations
• Regional and
local events
Key sectors:
•
•
•
Uptake of self-supply renewable
energy systems
Contribute to national emission
reduction targets and energy security
Agro-industry: livestock, dairy, fruit
and wine
Retail: supermarkets, shopping
centers
Tourism: hotels
Regions:
Entire country
Investors
targeted:
•
•
Financial
incentives:
•
Private sector
Public sector (hospitals, schools,
universities, large public buildings)
ESCOs
•
•
Low-cost loans
Grants
Source: Development of a NAMA proposal for Self-supply renewable energy (SSRE) in Chile,
Ecofys 2013
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Chile example (cont.): financing structure of the SSRE NAMA
International donors
NAMA Grant Fund
Grants
Center for Renewable Energy (CER)
(approves all projects, disburses
grants)
NAMA Guarantee Fund
Chilean economic development
agency (CORFO) + International
development banks
(contribute senior debt)
Insurance
company
+
ESCOs and vendors
(engineering and
construction)
Technical
warranty
Financial Institution
(contributes senior debt, disburses
loans)
Project
loans
End investors in
target sectors
ESCOs
Source: Development of a NAMA proposal for Self-supply renewable energy (SSRE) in
Chile, Ecofys 2013
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Key questions
• What is the status of LEDS in your country?
• Which NAMAs have been or are being developed in
your country?
• What financing sources do you envisage for
implementation?
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Thank you for your attention!!!
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List of references and recommended readings:
CCAP, 2013. Identifying Potential Sources for NAMA Finance
Ecofys, 2013. Annual Status Report on Nationally Appropriate Mitigation Actions (NAMAs)
Ecofys, 2013. Development of a NAMA proposal for Self-supply renewable energy (SSRE) in Chile
E3G, 2014. Strategic National Approaches to Climate Finance Report on scoping work in Peru, Chile and
Colombia on national climate finance pathways and strategies
E3G, 2014. Resourcing NAMAs. Stepping stones in a national climate financing strategy
GIZ, 2013. Low-Emission Development Strategy (LEDS). Factsheet
GIZ, 2013. LEDS tool
GIZ, 2013. NAMA tool
GIZ, 2013. Nationally Appropriate Mitigation Action (NAMA). Factsheet
GIZ, 2012. The Climate Finance Cascade: A NAMA financing mechanism in a nutshell
GIZ 2011. Supported NAMA for Sustainable Housing in Mexico. Mitigation Actions and Financing Packages
IISD, 2013. Developing Financeable NAMAs. A Practitioner’s Guide
UNEP Riso Center, 2013. Understanding the Concept of Nationally Appropriate Mitigation Action
UNFCCC, 2013. Guidance for NAMA Design. Building on Country Experiences
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