NAMA Update: What are Success Factors of the Financial Mechanisms Attached to NAMAs?

5 April 2018: This Update focuses on individual nationally appropriate mitigation actions (NAMAs) by developing countries and related support, events and activities for the months of February and March 2018. During this period, Guatemala, Honduras, Viet Nam and Dominican Republic entered NAMAs seeking external support in the UNFCCC Registry, and the NAMA Facility reported submissions of 76 ideas for NAMA Support Project Outlines as its 5th Call closed, on March 15.

Update on NAMA Facility 5th Call

In March 2018, NAMA Facility reported a high proportion of the NAMA Support Project Outlines received during the 5th Call have been found eligible, suggesting this to potentially be a result of the simplified procedures introduced with the 4th Call. Of the 76 NAMA Support Project Outlines received only two have been found ineligible. [NAMA Facility Press Release]

Central American countries’ NAMAs in agriculture and energy sectors

Guatemala submitted a NAMA seeking support for preparation of its National Low-carbon and Sustainable Bovine Livestock Strategy aimed at promoting low-carbon investments in the cattle sub-sector to reduce greenhouse gas (GHG) emissions, as well as dairy carbon and meat carbon footprints while increasing dairy and meat production. The implementation of the nationwide strategy will span over 15 years at an estimated cost of US$9,660,000. [UNFCCC NAMA Registry Entry. Guatemala. Livestock Development]

Responding to the high percentage of its population cooking over “open fires,” a highly inefficient cooking technique, Guatemala also submitted a NAMA seeking support of US$14,230,272 for implementing efficient use of fuel wood and alternative fuels in indigenous and rural communities. The project, to be implemented through Guatemala’s Ministry of Environment and Natural Resources, will span over 10 years and is expected to result in estimated emissions reductions of 7.1 million tCO2eq accumulated by the end of the project. [UNFCCC NAMA Registry Entry. Guatemala. Cooking Fuels]

In a similar way, Honduras also attempts to address its population’s high demand for firewood consumption and submitted a NAMA seeking support for preparing a National Strategy for the Adoption of Efficient Stoves. The strategy, or possible legislation in the energy sector, should is expected to reduce GHG emissions, firewood consumption, and pressure on forests. [UNFCCC NAMA Registry Entry. Honduras]

Low-carbon bus NAMA in Viet Nam

From 2025 onward, Viet Nam has pledged to source only hybrid, plug-in hybrid or electric buses. In March 2018, the country submitted a NAMA seeking support for implementing its transition towards low carbon public transport, including: large-scale introduction of such buses; improving fuel efficiency of existing buses; and system efficiency in public transport. The NAMA is estimated to reduce GHG emissions by 10 million tCO2eq by 2030 and requires approximately US$5.5 billion, of which 60% is to be provided through commercial loans, 32% through corporate capital and 8% through grants. [UNFCCC NAMA Registry Entry. Viet Nam]

Dominican Republic seeks NAMA support in agriculture, tourism, waste and public energy efficiency sectors

In March 2018, the Dominican Republic submitted three NAMAs seeking support for implementation. One NAMA seeks financial and capacity-building support for mitigation actions aimed at achieving wide‐spread adoption of alternative energy technologies and addressing waste management in the tourism sector through modular biomass facilities in high‐density touristic areas. Financial support of US$310,000,000 is required. [UNFCCC NAMA Registry Entry. Dominican Republic. Tourism and Waste]

In another NAMA, the Dominican Republic seeks support for energy efficiency measures in the public sector aimed at reducing GHGs from atmosphere, increasing energy sector resiliency, and helping alleviate energy black out and shortage of public funds. Financial, technological and capacity support are requested, including for a monitoring and reporting the scheme. [UNFCCC NAMA Registry Entry. Dominican Republic. Energy Efficiency]

In addition, the country submitted a NAMA to reduce GHG emissions through anaerobic digestion in Dominican pig farms. The NAMA includes the installation of 1750 biodigesters and seeks financial support of US$38,800,000. [UNFCCC NAMA Registry Entry. Dominican Republic. Pig Farms]

Ecofys report highlights lack of successful financial mechanisms attached to NAMAs as one reason behind limited success in securing funds

In March 2018, Ecofys consultancy company published a report “Closing the gap between finance and climate mitigation actions,” presenting research results on why only a low percentage of NAMAs developed since 2010 have succeeded in securing funds, and, identifying success factors of the financial mechanism of renewable energy and energy efficiency programmes. [Closing the gap between finance and climate mitigation actions]

Discussions on increasing climate action, enhanced cooperation and capacity building continue in different fora, including with focus on transparency

In other NAMA news since February 2018:

  • NAMA Facility participated in the Green Climate Fund’s first Structured Dialogue in the Latin American region in Bogotá, Colombia 4-7 March 2018 [NAMA Facility Press Release];
  • Partnership on Transparency in the Paris Agreement reported from a Workshop of the Asia-Pacific Regional Group 2018: ‘Strengthening measurement, reporting and verification (MRV) capacities and preparing for the Enhanced Transparency Framework’ [Transparency Partnership Press Release]; and
  • On 5 April 2018, UN Climate Change launched a webinar series to support developing nations in reporting on their efforts to tackle climate change. [UNFCCC Press Release]

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NAMAs, first introduced in the UNFCCC Cancun Agreements, are actions that reduce GHG emissions relative to business-as-usual (BAU) emissions in 2020 in developing countries. They are prepared under the umbrella of a governmental initiative, aligned with the country’s national development goals, and supported by finance, technology and capacity building. NAMAs are becoming an increasingly important vehicle supporting the implementation of the Paris Agreement, with significant co-benefits for the 2030 Agenda for Sustainable Development due to their alignment with national development strategies.

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