Over the last year, CCAP and other proponents have made significant progress in raising awareness of the potential for nationally appropriate mitigation actions (NAMAs) to achieve significant emissions reductions in the context of sustainable development, and developing countries are pressing ahead to design NAMAs with an eye towards winning international financial support. Taking stock of this progress, the Annual Status Report on Nationally Appropriate Mitigation Actions released in December in Doha, Qatar during COP18 provides a snapshot (as of November 2012) of the state of play of NAMAs around the world. The report also highlights the latest thinking on NAMA development and identifies where progress is needed over the coming year to begin realizing the promise of this mechanism. Core messages highlighted in the report include the following:
- Many developing countries are pursuing NAMAs. As of November 2012, the Ecofys NAMA Database showed 26 countries were developing NAMAs and/or feasibility studies for NAMAs in a range of sectors. Most of the NAMAs are broader than projects, either strategies or policies, and potentially will have a sector-wide impact. While this enthusiasm is quite promising, at publication, only a small number of NAMAs had reached the proposal/planning stage (8) and donors have only selected (3) for funding to begin implementation.
- Dedicated support is needed for NAMA implementation. Most financial support to date has been provided as technical assistance to prepare NAMAs as well as to develop capacity and build institutions required to support NAMA implementation. At this stage, there is a need for dedicated financial support for NAMAs at the scale required for NAMA implementation. The NAMA Facility jointly announced at COP18 in Doha, Qatar by the German and UK governments is a significant first step in meeting this need. The NAMA Facility will use a competitive selection process to distribute roughly €70 million ($90 million US) annually in grants and loans with a goal of financing ambitious and transformational mitigation actions in developing countries.
- Careful design of the finance component of a NAMA can help attract financial support. NAMAs that have a well-thought-out financial design will be better positioned to receive early support from donors. NAMA developers should consider the following design features: having a clearly defined budget and well-justified support request, focusing the NAMA on removing the primary barriers to action, leveraging private sector spending, including a unilateral contribution, avoiding duplication with CDM projects, mitigating risks, and designing the NAMA to eventually become self-sustaining. Insight from CCAP’s experience with climate finance is featured in Chapter 3.2 of the Annual Status Report. For additional information on financial tools to support private sector leveraging, see CCAP’s presentation with the release of the report, and the recent CCAP paper, Overview of NAMA Financial Mechanisms.
- Clearer guidance will help governments identify appropriate levels of MRV. Thus far, NAMAs have not specified fully formed plans for monitoring, reporting and verification (MRV) of greenhouse gas emissions, and currently there is no standard practice for doing so. The World Resources Institute is convening a multi-stakeholder process, with participation from CCAP, to develop suggested protocols for monitoring, reporting and verifying greenhouse gas reductions from different types of mitigation actions and policies. See also CCAP’s recent paper on use of non-GHG metrics.