Ideas on NAMA development and implementation

1. Ideas on NAMA development and implementation Carolyn Neufeld KfW Carbon Fund

2. AGENDA NAMA – A short introduction KfW‘s considerations on NAMA development and implementation Open questions and discussion points

3. Overall Goal:Combat Climate Change KRITTER Advisory Services kvonritter@gmail.com • Avoid global warming • Reduce GHG Emissions • Recent activities are not sufficient • Achieving scale indispensable! • Leverage Local Finance • Leverage Policy Reform and Sector Transformation • Leverage ODA • Leverage Private Sector Funding • Leverage Carbon Markets Activities

4. National Appropriate Mitigation ActionsAn evolving concept • On UNFCCC Agenda since negotiations in Bali 2007 • Objective: Scale up mitigation activities • Key Elements • Developing countries undertake mitigation actions • Country Ownership • Voluntary actions • Embedded in National Sustainable Development Priorities • Wide Range of activities: • Investments, Policies, Capacity Building • Accountability – Monitoring, Reporting and Verification • Copenhagen Accord pledges name different activities of development countries as NAMAs

5. What is a NAMA? NAMA Typologies Policies and actions Sectoral / national NAMA Supported NAMA Unilateral NAMAs Nat. emission intensity targets credited NAMA National emission targets

6. ImportantIssues • Set up of Baselines • Set-up of MRV systems • Transparency - e.g. for unilateral actions • general reporting of voluntary actions • Accountability – e.g. for supported NAMAs • report on carbon value, cost-effectiveness • Integrity – e.g. for credited NAMAs • equivalent to A1 inventory standards • Financing of Activities • Capacity Building • Political Commitment

7. Ideas on NAMA development and implementation AGENDA NAMA – A short introduction KfW‘s considerations on NAMA development and implementation Open questions and discussion points

8. PoA CPA .. .. .. CPA CPA KfW considerations – Carbon Fund and Development Bank • Mission of KfW Bankengruppe • Promotion of GHG mitigation + development activities in Germany • Promotion of GHG mitigation activities developing countries • financing investments • credit lines for energy efficiency, renewable energy, • supporting GHG Reduction programmes • KfW Development Bank Committments in Environmental and Climate Protection 2010: 1,3 billion • Objective of KfW Carbon Fund Activities: • Support of mitigation activities in developing countries via CDM and Programmes of Activities • Programmes of Activities can per definition support national and policy based programmes • KfW Carbon Funds starting point for NAMA development – Own activities and experiences in PoA development

9. NAMA PoA CPA .. .. .. CPA CPA From PoAs to NAMAsKey assumptions • NAMA can build on PoA experience as it comprises a number of elements and designs that could be complementary to both types of mitigation • Baseline definition • Monitoring and Verification • Incentive systems • Possibility of linking the relationship of the PoA with sectoral and political situation and existing and future options in the framework of a future NAMA • Linkage to carbon market • given through PoA • thinkable for other NAMA activities

10. Distinctions PoA NAMA Emission Reductions can be used for Annex-I- Land intl. off-set Emission reductions account for NAMA country – for Annex-I if it is credited PoA Coordinator can have different legal form Coordination by government Baseline and Monitoring through CDM EB accredited methodology Baseline and MRV system not yet defined Main purpose: Certificates Certificates possible but timeline open Restricted to PDD and methodology Broad, sectoral approaches possible Similarities and differences –PoAs and NAMAs Similarities • Support and implementation of low carbon development activities and strategies • Documented evidence of GHG reductions by use of MRV Systems • Implementation of national or sectoral GHG Mitigation programmes • voluntary actions • In some cases same institutional set-up

11. Recent KfW Carbon Fund Activities • Developing a study financed by Germanys Federal Ministry for the Environment on exploring possibiiltes to use PoAs as starting Point for NAMAs • First results • Approach is helpful because draws on existing and known experiences and framework (CDM) • Might be especially helpful for countries were existing policy framework is weak • Interest of countries in depends strongly on national priorities and also on existing external funding • Insecurity on how to tackle this new mechanism remains

12. Ideas on NAMA development and implementation AGENDA NAMA – A short introduction KfW‘s considerations on NAMA development and implementation Open questions and discussion points

13. Conclusions • NAMA development totally draws on ownership concept • „domestic NAMA“ • NAMAs will be an important new driver to view and direct climate finance and carbon finance activities • „supported NAMA“ • Do not to reinvent the wheel but use existing experiences • GHG Accounting (IPCC) • MRV (CDM) • Discuss the combination of future financial committments via ODA with nationally appropriate mitigation activities • „Fully fledged“ NAMAs will need time to get implemented

14. Open questions and discussion points • Do your partner countries have NAMAs on their Agenda? • Are they interested in „supported“ or „credited“ activities? • Do you have (concrete) plans to support NAMA development / implementation? • What are your plans for Climate Financing?