Financing Options for Nationally Appropriate Mitigation Actions (NAMAs) Development
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The document outlines financing options and development processes for nationally appropriate mitigation actions (NAMAs) focused on agriculture, aiming to reduce greenhouse gas emissions while enhancing sustainability. It highlights the importance of stakeholder engagement, financing strategies, and various international funding sources, such as the Green Climate Fund, which can support NAMA implementation. Additionally, it emphasizes the role of private sector investments and specific criteria for NAMA support, such as measurable GHG reductions and alignment with national development plans.
![NAMAs key characteristics
In line with
national
sustainable
development
priorities
Reduce
emissions
enhance GHG
removals
Measurable,
reportable and
verifiable
Can receive
support from
domestic
and/or
international
sources
NAMAs
In the UNFCCC’s Bali Action Plan
(2007), it was decided to launch
mitigation actions for developing
countries “ […] 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.”
(Decision 1/CP.13, paragraph 1 (b)
(ii))](https://image.slidesharecdn.com/ledsarmine-160105095913/85/Financing-Options-for-Nationally-Appropriate-Mitigation-Actions-NAMAs-Development-3-320.jpg)
Financing Options for Nationally Appropriate Mitigation Actions (NAMAs) Development
- 1. Financing Options for Nationally Appropriate Mitigation Actions (NAMAs) Development Armine Avagyan 28-30 October 2015, Asia LEDS Partnership Regional Workshop, Mobilizing Investment for Low-Emission Development in Asia’s Agriculture Sector: Crop Production and Processing
- 2. Outline 1. Concept of Nationally Appropriate Mitigation Actions (NAMAs) 2. Step by step development of NAMAs in agriculture and land use sectors 3. Financing of NAMAs 4. FAO online learning tool on NAMAs in agriculture
- 3. NAMAs key characteristics In line with national sustainable development priorities Reduce emissions enhance GHG removals Measurable, reportable and verifiable Can receive support from domestic and/or international sources NAMAs In the UNFCCC’s Bali Action Plan (2007), it was decided to launch mitigation actions for developing countries “ […] 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.” (Decision 1/CP.13, paragraph 1 (b) (ii))
- 4. NAMAs benefits In addition to reducing and/or removing GHG emissions, a number of agricultural practices may also: support climate change adaptation; address agriculture as a driver of deforestation; reduce agriculture’s contribution to pollution of water sources; promote access to energy in rural areas; and foster food security.
- 5. NAMAs sectorial distribution In the NAMA UNFCCC registry as of August 2015: • 117 registered NAMAs; • 16 % in the AFOLU sector.
- 6. AFOLU NAMAs examples Country Title Timeframe Status Costa Rica Livestock NAMA 15 years Financially supported by the Inter-American Bank Low carbon coffee 5 years Financially supported by the Inter-American Bank and NAMA Facility Dominican Republic Blue Carbon NAMA: Conserve and restore mangroves 18 months Seeking support for preparation Reducing GHG emission in pig farms 15 years Seeking support for implementation Georgia Adaptive sustainable forest management 2 years Financially supported by the Government of Austria Uganda Developing appropriate strategies and techniques to reduce methane emissions from livestock production 6 months Seeking support for preparation
- 7. Financing of NAMAs NAMAs provide an opportunity for countries to maintain and enhance agricultural productivity while reducing GHG emissions. In the long run NAMAs should contribute to national GDP increase However, to design and implement NAMAs an up-front investment is required.
- 8. Step by step NAMA development Identify options Evaluate and prioritize options Identify stakeholders Engage key stakeholders Agree on responsibilities Identify financing sources Develop a concept note Design NAMA Involve all stakeholders Implement Collect data for monitoring Evaluate, report and verify Application for funding is possible at various steps. Identify financing options Apply for funding to design a NAMA Apply for funding for NAMA implementation Apply for funding for capacity development
- 9. NAMA finance: history and status In 2009, Parties to the UNFCCC agreed on new and additional funds for combating climate change, including: • USD 30 billion as fast-start finance for 2010–2012; • USD 100 billion is expected to be mobilized annually by 2020 through a number of channels, such as the Green Climate Fund; • USD 10 billion was pledged for the Green Climate Fund in 2014 • The number of financing sources for NAMAs is increasing. Examples of NAMAs receiving support include: • Georgia’s Adaptive Sustainable Forest Management NAMA: USD 1.9 mil; • Costa Rica’s Low-Carbon Coffee NAMA: EUR 7 mil; and • Tajikistan’s Forestry Support NAMA: EUR 13 mil.
- 10. International financing sources Green Climate Fund NAMA Facility Austrian NAMA Initiative Global Environment Facility (GEF) Fund International Climate Initiative (ICI) Latin American Investment Facility Climate-related ODA funding ADB Climate Change Fund (CCF) ClimDev-Africa Special Fund (CDSF) Climate Development Knowledge Network (CDKN)
- 11. In agriculture, private sector is automatically engaged in NAMAS because farmers are usually private entrepreneurs. Private investment both national and international can be attracted by: Public climate financing acts as a catalyst to leverage private sector financing. If NAMAs bring sufficiently high financial returns, they become attractive to the private sector. Private domestic financing is also needed to leverage international financing. Life-cycle approach for GHG reduction engages also other private value chain actors (farm, post-harvest storage, transportation, processing, retailing, consumption and disposal) in NAMA development. Stable political situation and clear commercial mechanisms Provision of incentives (e.g. soft loans and guarantees) Elimination of barriers Demonstration of profitability and low risk Private investment
- 12. Overview of criteria for NAMA support • Amount of GHG reductions • Transformational change • Sustainable development benefits • Sustainability and replicability • MRV of GHGs and other performance metrics Effectiveness • Description with clear boundaries and plans • Consistency with national development plans • High-level political support and country ownership • Support from sector stakeholders • Capacity to implement Implementation plan • Budget with national contributions • Catalytic impact of international finance contribution • Leveraging private-sector investment • No duplication with other finance sources • Risk mitigation Financing plan Source: Adapted from Wilkes et al. 2013b.
- 13. FAO and Nationally appropriate mitigation actions (NAMAs) Module 1 Climate change and agriculture Module 2 Background on NAMAs Module 3 Step by Step NAMA Development Module 4 Monitoring, reporting and verification (MRV) Module 5 NAMA financing Structure of the online tool FAO provides tools and trainings supporting NAMAs implementation and design in agriculture: • Learning tool on Nationally Appropriate Mitigation Actions in the agriculture, forestry and other land use sector • GHG monitoring and scenarios comparison: FAO EX-ACT tool • Land use change monitoring: FAO Collect Earth • Data development: FAOSTAT • Global Livestock Environmental Assessment Model (GLEAM) • Trainings: Kenya, Viet Nam, Zambia. Detailed description of all tools is available at: http://bit.ly/fao-nama-tool
- 14. Thank you for your attention Contact: micca@fao.org, armine.avagyan@fao.org