© 2013 The International Institute for Sustainable Development IISD REPORT MARCH 2013
Developing Financeable NAMAs A Practitioner’s Guide
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1.0 INTRODUCTION
© 2013 The International Institute for Sustainable Development IISD REPORT MARCH 2013
Developing Financeable NAMAs A Practitioner’s Guide
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1.0 Introduction
Nationally Appropriate Mitigation Actions NAMAs are fast becoming the climate inance vehicle of choice for developing countries that wish to voluntarily implement greenhouse gas GHG mitigation actions in support of
sustainable development. Developing countries, their development partners and other actors in and around the United Nations Framework Convention on Climate Change UNFCCC are working to operationalize the concept to leverage
climate inance through bilateral and multilateral support, and through carbon markets.
NAMAs were introduced in the Bali Action Plan in 2007 as a key mechanism to increase mitigation action in developing countries.
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The Cancun Agreements 2010 recognized two types of NAMAs—those developed with domestic resources unilateral NAMAs and those requesting international support in the form of inancing, technology transfer
or capacity building supported NAMAs.
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Credited NAMAs have also been discussed, whereby a developing country earns credits that can be sold in the global carbon market by reducing emissions below an agreed crediting baseline.
FIGURE 1: TYPES OF NAMAS
The Cancun Agreements also agreed to “set up a registry to record nationally appropriate mitigation actions NAMAs seeking international support, to facilitate the matching of inance, technology and capacity-building for these actions.”
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Progress was made on modalities and guidelines for NAMAs at COP 17 in Durban in 2011 and COP 18 in Doha in 2012, and steps were taken to develop a web-based registry for NAMAs. The NAMA Registry Prototype includes templates
for:
• A NAMA concept which it terms a “NAMA seeking support for preparation”, where a screening assessment indicates that there is merit in preparing a more detailed NAMA proposal.
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Paragraph b ii of the Bali Action Plan called for “enhanced nationalinternational action on mitigation of climate change, including, inter alia, consideration of: … nationally appropriate mitigation actions by developing country Parties in the context of sustainable development,
supported and enabled by technology, financing and capacity-building, in a measureable, reportable and verifiable MRV manner.”
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UNFCCC 2010. The Cancun Agreements: Outcome of the work of the Ad Hoc Working Group on Long-term Cooperative Action under the Convention, Decision 1CP.16, FCCCCP20107Add.1, paragraph 53.
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Ibid.
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See Appendix B for a NAMA concept template based on UNFCCC registry documentation.
Unilateral NAMAs Credited NAMAs
Supported NAMAs
Bil at
er al
Mult ila
ter al
Pr iv
at e
sec tor
Gr een
cli ma
te fun
d
International carbon markets Domestic finance
Financial Flows
© 2013 The International Institute for Sustainable Development IISD REPORT MARCH 2013
Developing Financeable NAMAs A Practitioner’s Guide
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• A NAMA proposal which it terms a “NAMA seeking support for implementation”, where a pre-feasibility assessment indicates that there is merit in developing an implementation plan that can be inanced.
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• NAMAs seeking support for recognition, where existing activities that could be considered NAMAs can be submitted.
As of January 2013, Mali, Ethiopia and Uruguay have made submissions seeking support for preparation of a NAMA; and Chile and Uruguay have made submissions for NAMAs seeking support for implementation. Ecofys has also
established a NAMA database, which provides a collection of publicly available information. The database indicates a much broader involvement in NAMA development, with 35 NAMAs and 28 feasibility studies in 27 countries.
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The UNFCCC has not clearly deined the concept and modalities of NAMAs, but recent initiatives, such as the NAMAs registry, demonstrate a “learning-by-doing” approach to NAMA development. A lack of clarity is not necessarily
negative at this stage, given that the NAMAs are inherently bottom-up mechanisms. As learning occurs and more NAMAs are developed, the UNFCCC NAMA architecture can be trued up. In the interim, sharing experiences and
adding to the information base will contribute to the development of a robust and workable mechanism.
This document provides guidance for identifying and prioritizing NAMAs under two tracks: • Identifying stand-alone NAMAs
• Identifying priority NAMAs through a process of low-carbon and climate-resilient development or climate- compatible planning
Within this context, this document contributes to the growing body of NAMAs learning by providing both: • A conceptual framework for implementing low-carbon, climate-resilient development, under which NAMAs
can be prioritized. • A step-by-step methodology for screening NAMA opportunities, both within and outside a low-carbon
development planning process, with the Quick Screen
designed speciically for developing NAMA concepts and the
Deep Screen for developing NAMA proposals.
The document is designed to be a simple, easy-to-follow guide for developing stand-alone NAMAs or NAMAs nestled within a low-carbon planning process, and for advancing potential NAMAs to the next stage of development. The
document is organized as follows:
• Section 2 provides a conceptualization of NAMAS within low-carbon, climate-resilient development planning. • Section 3 identiies the frameworks for developing NAMA concepts and NAMA proposals.
• Section 4 provides a detailed Quick Screen
approach for NAMA concepts. • Section 5 provides a detailed
Deep Screen approach for NAMA proposals.
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See Appendix C for a NAMA proposal template based on UNFCCC registry documentation.
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These figures were accurate as of January 2013. See http:www.namadatabase.org.
© 2013 The International Institute for Sustainable Development IISD REPORT MARCH 2013
Developing Financeable NAMAs A Practitioner’s Guide
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2.0 CONCEPTUALIZING
