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Learning By Doing NAMAs

Learning By Doing NAMAs. Ash Sharma Latin American Carbon Forum, San José 28 September 2011. What is the funding partner looking for in a NAMA?. Supported NAMAs require support from host countries and international partners alike

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Learning By Doing NAMAs

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  1. Learning By DoingNAMAs Ash Sharma Latin American Carbon Forum, San José 28 September 2011

  2. What is the funding partner looking for in a NAMA? • SupportedNAMAsrequire support from hostcountries and international partners alike • EU has statedpreference for a performance based system, stronglyincentivising the promotion of actionswhichmaximiseclimatevalue for money • The key is robust MRV, a concept that needs road testing • which parameters are to be measured • data management, qualitycontrolproceduressufficient to ensureNAMAs emission reductionscan be monitored and verified • In Peru, for example, manychallengesrelating to data availability and qualityhence a proposedfocus on wasteinventories as a reliable baseline • Developedcountrieswilling to mobilisetechnicalassistancefunds for learning by doing, confidencebuildingmeasures Source : Climate Connect, News EU submission to Ad Hoc Working Group on Long-term Cooperative Action, Sept 26

  3. The PeruvianContext • Rapidlygrowingeconomy with emissions growth of 2% p.a. (exc. LULUCF) • NAMA priorities as per country submission to Copenhagen Accords in June 2010 are waste, energy and forestry • Peru has benefited from a CDM pipeline of over 40 projects, mostly in hydro power • Currently a solid wastePoA is under development, and couldfeedinto a NAMA initiative

  4. NOAK-NEFCO PartnershipInitiative on UpscaledMitigation Action (NAMAs) • Earlyrequest from Nordic ministries of environment to NEFCO • Market readiness activity to demonstratehow broad and up-scaled support can be matched with comprehensiveNAMAs • NEFCO'sownscopingstudyprepared in 2010, merged with Nordic Ad Hoc Group on Climate Change (NOAK) in late 2010 • Feasibilitystudy undertaken together with Peru and Viet Nam • Sectorsstudiedwaste management in Peru and cement sector in Viet Nam • Ambition to commence a 2 year pilot activity, with funding of approx. €5 million from Nordic countries

  5. The Peruvian Pilot • Aims to improvePeru'sreadiness for a wastesector NAMA by addressing gaps in data availability and associatedquality, technical and institutionalcapacity, including: • updated information on emissions and reduction potential • prepare a MRV system of international standing • identifyappropriate support instruments for mitigationactions, includingsources of funding and criteria for support • Furtherconceptualdevelopmenttogether with MINAM officials • Expectedlaunch of a €2 million programme in 2012 • Importantrole of dissemination and knowledgesharing with other programmes, in Peru and regional initiativese.g. MAIN

  6. In Peru, the first phasefound Therewasclear and strong support for the overall concept, and need for testing NAMAs and market readiness An understanding that programme must be tailored to national and localcircumstances Shouldbuild on existingpolicies, strategies, policies and initiativeswherepossible Importance of having a strong and motivatedcounterparty, in this case, MINAM and with support from FONAM A wellprepared NAMA shouldhave Institutionalprocedures and whereappropriate, capacitydevelopment (e.g. at lowerlevels of government) An strategy for private sectorparticipation, e.g. public private partnerships Possiblefunding, blending of identifiedsourcessuch as grants, loans Early Lessons Learnt from Peru

  7. Contact NEFCO Carbon Finance & FundsMr. Ash Sharma, Vice President, Head of Unit http://www.nefco.org/financing_instruments/noak_nefco_partnership_initiative Nordic Environment Finance Corporation (NEFCO)P.O. Box 249, FI-00171 Helsinki, FINLANDPhone: +358 10 618 003Fax: +358 9 630 976Email: carbonfinance@nefco.fi Website: www.nefco.org/cff

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