Nationally appropriate mitigation actions (NAMAs)

Current status

18 October 2010 Dr. Niklas Hhne, Ecofys Germany, n.hoehne@ecofys.com Dr. Martina Jung, Katja Eisbrenner

Content
What is a nationally appropriate mitigation action? Three major issues
Organising local commitment Deciding which NAMAs receive support Monitoring the climate change value of NAMAs

Conclusions

Origin
Paragraph 1 (b) (ii) of the Bali Action Plan of 2007: 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 measurable, reportable and verifiable manner.

Current developing countries proposed target NAMAs under Copenhagen Accord

NAMA target category Climate neutrality Target below BAU Target below base year Intensity target Unilateral Maldives Indonesia, Israel, Mexico, South Korea, Singapore Moldova China, India Conditional to support Bhutan, Costa Rica, Papua New Guinea Brazil, Chile, Mexico, Papua New Guinea, South Africa Antigua and Barbuda, Marshall Islands

See also www.climateactiontracker.org

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Current developing countries proposed policy NAMAs under Copenhagen Accord

NAMA category Unilateral Conditional to Unclear support Afghanistan, Congo, Strategy Ivory Coast, Eritrea, Madagascar, Sierra development Sierra Leone, Togo Leone Armenia, Benin, Brazil, Chile, Cameroon, Central Colombia, Congo, African Republic, Chad, Ghana, Ivory Coast, Eritrea, Policies and Colombia Madagascar, Peru, Gabon, Jordan, measures Sierra Leone, Macedonia, Mauritania, Tunisia, Mexico, Mongolia, Morocco, San Marino, Sierra Leone, Peru, South Africa Togo Congo, Ghana, Specific action Madagascar, Sierra or project Leone, Tunisia, Mexico, Peru
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Development of supported NAMAs

Country NAMA Who Feasibility studies Thailand Lao PDR Indonesia Serbia Mexico South Africa Waste and wastewater management Urban Transport Sustainabile peatland management Energy efficiency Buildings, transport Several case studies Japan feasibility study program Japan feasibility study program Japan feasibility study program Japan International Cooperation Agency Netherlands/Denmark/IDB with Ecofys South Africa with Cape Town University

Detailed funding proposals Mexico Building sector Cement/ iron&steel sector Transport sector Solar plan with 40 measures Renewables Initiative Germany with Perspectives Mexico with CCAP Netherlands with Ecofys Germany with Ecofys South Africa

Tunisia South Africa

NAMA selection processes Indonesia Peru Chile Turkey Kazakstan

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NAMA development office 5 NAMAs in new NC NAMA selection process NAMA selection process NAMA selection process

Indonesia Peru Germany with Ecofys UNDP UNDP

Content
What is a nationally appropriate mitigation action? Three major issues
Organising local commitment Deciding which NAMAs receive support Monitoring the climate change value of NAMAs

Conclusions
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1. Organising local commitment

Responsibilities and motivations of different ministries potentially unclear or opposing, financial values attractive to many Arranging the local ownership of pilot NAMAs takes up to one year Potential solutions:
Commitment at highest government level National NAMA development office, e.g. in Indonesia

2. Deciding which NAMAs receive support

No strict additionality needed Possible ways to split
All measures beyond no regret and/or co-benefit are supported ?? All action after 2010 is supported ?? First of a kind NAMA toprunner: Supported if no other country with similar circumstances has done it before?? All NAMAs in a particular country are supported??

Emissions under different scenarios

GHG emissions

Reference No regret (<0/tCO2e) Co benefit (air quality, energy security, )

Ambitious

2005

2010

2015

2020

International financing

GHG emissions

Reference No regret Co benefit

Funding for barrier removal, removing risks Funds for reductions, e.g. carbon market, PPP

Ambitious

2005

2010

2015

2020

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2. Deciding which NAMAs receive support

Pragmatic solution (for now): Let host and donor institutions decide to learn and refine criteria Collect information on all NAMAs in a registry to allow adjustment of priorities

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3. Monitoring the climate change value of NAMAs

Direct effects on emissions
Modeling (ex-ante) Measurements (ex-post) Activity data and emission factors

Indirect effects on emissions

Focus on activities and outcomes: build units, number of vehicles, funds granted

Consider broader sustainable development benefits

Reduction of other pollutants, job creation or other social and economic effects

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GHG effects of actions over time

Jung et al (2010): Nationally Appropriate Mitigation Actions insights from example development Env. Liability 3, available at www.ecofys.com
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Content
What is a nationally appropriate mitigation action? Three major issues
Organising local commitment Deciding which NAMAs receive support Monitoring the climate change value of NAMAs

Conclusions

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Conclusions
NAMAs allow strategic, long-term, transformational measures and comprehensive packages A good NAMA funding proposal is
Developed from within the country in a participatory process Proves on an individual basis that funding is required Can demonstrate direct and/or indirect GHG reductions in short or long term and high sustainable development benefits

Potentially large new financial flows generated fast growing NAMA development, yet few concrete NAMA funding proposals ready

Support the international negotiations: Initiate fast track bilateral pilots of new types of actions, support, measurement, reporting and verification Collect overview information and learn from the pilots

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Please contact us for more information

Ecofys Germany GmbH
Dr. Niklas Hhne Am Wassermann 36 50829 Cologne Germany

T: +49 221 270 70 100 E: n.hohne@ecofys.de

W: www.ecofys.de

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Backup slides

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MRV of emission reductions

Copenhagen Accord Reported every two years in national communications International consultations and analysis Clearly defined guidelines National sovereignty is respected MRV according to national standards MRV according to guidelines adopted under the UNFCCC

All actions

Unilateral NAMAs Supported NAMAs

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MRV of emission reductions

Copenhagen Accord Reported every two years in national communications International consultations and analysis Clearly defined guidelines National sovereignty is respected MRV according to national standards MRV according to guidelines adopted under the UNFCCC Only V is international Facilitators text 9 October At individual country level or of a group? Expert review, consultation by SBI, summary document Confidence building process M is GHG inventories R is national communications

All actions

Unilateral NAMAs Supported NAMAs

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Possible MRV indicators

Indicator for activity
Technical: build units, capacity, no. of vehicles Economical: funds granted, investment triggered Process: number of workshops conducted, study completed

Proxies for GHG emissions

Energy used Material produced

GHG emissions measured from energy use GHG emissions modelled

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MRV of emissions
NAMA category Ex ante Ex post

Strategy development

Modelled GHG emissions (projections) Modelled GHG emissions

National/sectoral GHG inventory

Policies and Support reductions measures (subsidise feed in tariff) Specific action or project

Establish the policy (EE standard)

??

Modelled GHG emissions

GHG emissions measured from energy use

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MRV of support
What are new and additional resources for climate investments as called for in the Copenhagen Accord? Whether, and if so how, to implement agreed full incremental cost (UNFCCC Art. 4.3)? How can climate-related finance be tracked?

Large potential for overlap with Development Aid efforts Learning from existing systems (GEF, World bank) is essential

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Examples
Support to lift barriers to energy efficiency in buildings
Analysis of mitigation options Information campaign Low interest loans for energy efficiency projects

Support for renewable energy in electricity generation

Support the setup of a feed in tariff Subsidise the feed in tariff Support grid extension

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www.climateactiontracker.org
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Bill Hare, Claudine Chen, Katja Eisbrenner, Niklas Hhne, Michiel Schaeffer, Kirsten Macey

Public funding leveraging private financing

Create conducive conditions
Capacity, policy framework

Absorb risk of private activities

Guarantees, loans, grants, mezzanine, equity financing, venture capital fund, quality stamping projects

Incentivising through the carbon market

Extended CDM Sectoral crediting Crediting policies

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NAMA categories
Unilateral NAMAs Mitigation actions undertaken by developing countries on their own; (Directly) Supported NAMAs Mitigation actions in developing countries, supported by climate finance from Annex I countries Credited NAMAs Mitigation actions in developing countries generating credits to be sold on the carbon market (e.g. sectoral crediting).

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What can be a NAMA?

National climate strategy

... Industry Sectoral strategy Sectoral strategy Sectoral strategy
Implementation of building codes
Define and implement building code Create institutions to support definition, implementation and enforcement

Buildings

Promotion of solar thermal use

Conduct study and implement pilots Information and capacity building

Incentives for efficient appliances

Implement labelling regulation

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GHG effects of actions over time

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Current developing countries proposed NAMAs under Copenhagen Accord

NAMA category Strategy development Policies and measures Help to set up (EE standard) Support reductions (subsidise feed in tariff) Specific action or project Goal

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Paper on developing country actions

Jung et al (2010): Nationally Appropriate Mitigation Actions insights from example development Env. Liability 3 Available at www.ecofys.com

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What is a NAMA?

Appendix II to the Copenhagen Accord

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Split between unilateral and supported

Example for credited actions

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Categories of NAMAs

NAMA category Strategy development Establish the policy (EE standard) Support reductions (subsidise feed in tariff)

Goal Enabling environment

Policies and measures

Support immediate reductions

Specific action or project

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Categories of NAMAs

NAMA category Strategy development Policies and measures Establish the policy (EE standard) Support reductions (subsidise feed in tariff)

Goal Enabling environment

Effect on emissions Indirect / long-term

Specific action or project

Support immediate reductions

Direct / short-term

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