This paper is backgrounder for the ongoing and further work on the question of how to finance a NAMA. It aims to identify in the context of technical assistance what has to be considered when planning and implementing a NAMA and mobilizing the financing of that individual NAMA.
Building upon the UNFCCC's global, top down analysis of the costs of climate change, UNDP commissioned a User Guidebook to support developing countries to undertake a bottom-up, national sectoral analyses of the costs of adapting to the impacts of climate change and mitigating GHG emissions. The User Guidebook, which was developed by UNDP with a group of international experts and regional centres of excellence, comprises:
The guide book offers a quick screen methodology to identify NAMA opportunities with potential for climate financing, and a deep screen methodology to analyze and determine the most appropriate development options to meet country-specific needs. And the process has been tailored to produce NAMA Concepts and Proposals that align with the requirements of the UNFCCC NAMA registry that will open this year. The guide walks policy makers through all the steps needed to successfully develop NAMAs and demonstrate preparedness to access available funding.
The Methane Finance Study Group, upon the request of the G8, has published a report which considers pay-for-performance mechanisms for methane abatement. The analysis complements the Climate and Clean Air Coalition’s (CCAC) work on finance by focusing on an efficient method to deliver public finance to abate one SLCP (methane).
In this paper BNEF presents an alternative negotiating process based on the concept of “emissions intensity” in which emission targets are related to economic activity, rather than the current paradigm of absolute emission reductions for developed countries and little obligation on developing countries. Expressed in this way, targets can be agreed for all countries, not just developed countries. They would also be more flexible and give governments more control over achieving the targets.
China has embarked on one of the largest endeavours in climate economics ever, to establish a national carbon emission trading system by 2015. As a first step, carbon-trading pilots have been initiated in seven provinces and cities. The success or failure of those experiments will to a large extent determine the future of climate policies in China.
The technical document #5, “Accessing Climate Finance for Sustainable Transport: A Practical Overview,” was developed by GIZ together with the Bridging the Gap Initiative. The paper represents a practical guide for developing country governments on how to access climate funds for sustainable land transport interventions. The guidance focuses on climate change mitigation and updates existing and proposed sources of climate finance in the context of the land transport sector.
The report highlights that governments need to strategically target their public finance to attract private capital into green investment through measures such as guarantees, insurance products and incentives, combined with the right policy support. It includes examples where governments and public financing agencies have successfully mobilized significant amounts of private investment for clean energy, water and agricultural investment. It concludes with a series of recommendations for investors and governments to scale up these successes to close the green investment gap.
Limiting global temperature rise to 2°C above pre-industrial levels will require billions of dollars in investments each year to mitigate greenhouse gas emissions and shift to low-emissions development pathways. This report draws on the experiences of six developing countries to examine how public climate finance can help meet the significant investment needs of developing countries by creating attractive conditions for scaled-up investment in low-carbon energy.