Although participants in the May 2012 UNFCCC climate negotiations in Bonn left with mixed emotions concerning the progress made in the plenary, two events made significant headway in advancing and showcasing mitigation efforts in developing countries: CCAP’s Policy Dialogue Lunch on financing for nationally appropriate mitigation actions (NAMAs) and an AWG-LCA workshop on NAMAs by developing countries. Participants in these events left feeling enthusiastic about progress being made on the ground in developing countries.
Co-hosted by the German Environment Ministry, CCAP’s Policy Lunch convened 32 senior negotiators, including heads of delegation, to discuss how to move forward on financing for the implementation of NAMAs in developing countries. Developed- and developing-country participants made considerable progress toward a shared vision on conceptual criteria for what constitutes a financeable NAMA, including greenhouse gas (GHG) reductions, sustainable development benefits, coherence with national development plans, and high-level political support, among others. Agreement on these basic criteria for effective NAMAs is crucial to ensuring that the first NAMAs to be implemented are ambitious in achieving transformational changes and in setting a precedent for future NAMAs. CCAP is publishing a paper on these criteria, to be released shortly.
Members of CCAP’s Mitigation Action Implementation Network (MAIN) teams, Alexa Kleysteuber, of Chile’s Ministry of the Environment, and Maria Paula Mendieta, of Colombia’s Ministry of Environment and Sustainable Development, presented on promising NAMAs being developed in their countries with our support. Chile’s energy demand is projected to increase by an additional 8,000-10,000 MW by 2020. This demand could push the country to rely on coal – despite considerable renewable energy (RE) potential and a 10% by 2024 RE target – due to drastic spot-market RE price fluctuations that constrain RE investment. Chile’s solution to this barrier is a RE Price Stabilization Fund (PSF) NAMA that would provide certainty to investors by guaranteeing a RE floor price and assuming the spot market price risk. The PSF would initially be capitalized with international and domestic funds and would eventually be privately operated. Once profitable, the fund could possibly return the original donor contributions. This NAMA would result in significant GHG benefits, strong local health impacts, and significant leveraging of private investment at low cost to donors.
With support from Environment Canada and CCAP, Colombia has identified two potential NAMAs in the waste sector: 1) an Integrated Municipal Solid Waste Management NAMA (with organic separation, recycling, tariff incentives) and 2) a Construction & Demolition Waste NAMA (to divert this waste away from landfills through reuse, recycling, waste-to-energy). These potential NAMAs represent opportunities to significantly reduce GHG emissions in Colombia while taking into account Colombia’s national circumstances (no incentives for using biogas as energy or for source reduction of waste, influence of informal recycling sector, lack of sorting facilities, etc). Going forward, Colombia will be selecting pilot cities and doing studies of feasibility, co-benefits, and reduction potential.
CCAP was also one of only two NGOs to present at the AWG-LCA workshop on NAMAs. In collaboration with the Chilean delegation, I emphasized the needs for developed countries to solidify funding commitments toward implementation actions this year and the importance of the monitoring, reporting, and verification (MRV) process in providing funding for reporting on key metrics that help “sell” NAMAs to parliaments and politicians in host countries. His presentation reframed the NAMAs discussion in terms of sustainable-development goals that are important to developing countries (and also have GHG outcomes): health benefits due to better air quality from RE use; better quality of life in urban areas from increased ridership on public transport; and cleaner cities from integrated waste management efforts. Chile’s presentation of evolving NAMAs and their target to decrease business-as-usual emissions by 20% by 2020 reaffirmed the progress developing countries are making on NAMAs that achieve these multiple goals.
Through its MAIN initiative, CCAP will continue to make progress in the development of NAMAs, including the financing specifics and the opportunities for shaping the Green Climate Fund, UNFCCC policies, and bilateral climate programs.