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KfW Carbon Fund From PoA to NAMA

KfW Carbon Fund From PoA to NAMA. Barcelona 31th of May 2011. Agenda. I. The NAMA Framework II. Bridging the Gap – From PoA to NAMA III. Conclusions. The NAMA Framework An evolving concept. On UNFCCC Agenda since negotiations in Bali 2007 Objective: Scale up mitigation actions

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KfW Carbon Fund From PoA to NAMA

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  1. KfW Carbon FundFrom PoA to NAMA Barcelona 31th of May 2011

  2. Agenda I. The NAMA Framework II. Bridging the Gap – From PoA to NAMA III. Conclusions

  3. The NAMA FrameworkAn evolving concept On UNFCCC Agenda since negotiations in Bali 2007Objective: Scale up mitigation actions Several voluntary NAMA communications submitted to UNFCCC following the Copenhagen Accord Cancún Agreements took note of NAMA pledges and decided on - NAMA registry - Green Climate Fund - New market based mechanisms to be discussed at COP 17

  4. The NAMA FrameworkWhere do we stand? Scope: Broad array of NAMA ideas but few concrete approaches Sources of Funds: Domestic - International Support - Market Based Green Climate Fund (USD 100 bn p.a. by 2020) Rules and practical guidance: Regulatory framework unclear, lack of guidance on NAMA design Key question: How to arrive quickly at practical experiences?

  5. Agenda I. The NAMA Framework II. Bridging the Gap – From PoA to NAMA III. Conclusions

  6. Bridging the Gap – PoA to NAMAWhy PoA as starting point? Low Carbon Development Policy NAMA PoA CPA … CPA CPA • 3 or more strategies are possible • Top-Down • Bottom-Up • Combination • Bottom-Up strategy for NAMA development uses elements of a PoA • Assumption • Fast track pilot schemes are possible

  7. Bridging the Gap – PoA to NAMASimilarities and differences Differences PoA NAMA Emission Reductions used for Annex-I- country Kyoto compliance Emission reductions account for NAMA country targets / Exception for market based NAMA open Coordination via private or public sector Coordination most likely by government body Baseline and Monitoring via CDM methodology Baseline and MRV system not yet defined Financed through market mechanisms Market mechanisms only an option Defined by PDD and CDM methodology Broad, sectoral approaches beyond CDM possible Similarities • Support and implementation of low carbon development activities and strategies • Documented evidence of GHG reductions by use of MRV Systems • Implementation of broad based GHG Mitigation programmes • voluntary actions

  8. Bridging the Gap – PoA to NAMAResearch Study* • Module 1: Understand the PoA: scope, eligibility criteria, implementation arrangements, targeted GHG emission categories • Module 2: Analyse four key technical PoA design elements and their suitability for scaling up: • eligibility criteria / baseline setting procedure / MRV process and PoA management and • identify if PoA design is a) already fully applicable, b) needs to be adjusted or c) needs to be developed for NAMA design. • Module 3: Evaluate the domestic policy & institutional framework to assess whether the existing framework is supportive of NAMA implementation or not. • Module 4: Identify follow-up actions for NAMA readiness based on the need for adjustments and new designs as identified *Study by South Pole on behalf of German Ministry for Environment and KfW

  9. Module 1 & 2: Scaling up key PoA technical design elementsGuiding Key Questions

  10. PoA Case Studies and their NAMA Scale Equivalent

  11. Agenda The NAMA Framework II. Bridging the Gap – From PoA to NAMA III. Conclusions

  12. Conclusions Study gives results for the four case studies (presentation on 2nd of June) PoA can be a fast start, bottom up approach to design NAMAs The better the link to domestic policies the easier the up-scaling  converse argument: Not all PoAs can serve as stepping stone to a NAMA NAMA MRV can build on CDM MRV but should be simplified!(e.g. standardised baselines, benchmarks, positive lists) For Co-existence of Poas and NAMAs there needs to be a way to avoid double counting (e.g. deduction of CER from NAMA target) We need more PoA experience and Pilot projects to gather experience for NAMA rules and guidance

  13. Questions for discussion • How do you like the approach? • Something that can be considered in your country? Interesting and matching PoAs existent? • Can the co-existence and linkage of a PoA with a NAMA be counted as a specification of a NAMA crediting?

  14. Contact KfW Carbon Fund KfW Bankengruppe Palmengartenstrasse 5–9 60325 Frankfurt am Main Germany Tel +49-69-7431-4218 Fax +49-69-7431-4775 klimaschutzfonds@kfw.de Thank you for your attention! Carolyn Neufeld Tel +49-69-7431-3233 Carolyn.neufeld@kfw.de

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