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  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 KRITTER Advisory Services

4 National Appropriate Mitigation Actions An evolving concept  On UNFCCC Agenda since negotiations in Bali 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 Nat. emission intensity targets Supported NAMA National emission targets NAMA Typologies credited NAMA Unilateral NAMAs What is a NAMA? Sectoral / national NAMA Policies and actions

6 Important Issues  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 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 PoA CPA CPA

9 From PoAs to NAMAs Key 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 PoA CPA CPA NAMA

10 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 Emission reductions account for NAMA country – for Annex-I if it is credited Emission Reductions can be used for Annex-I- Land intl. off-set Broad, sectoral approaches possibleRestricted to PDD and methodology Certificates possible but timeline openMain purpose: Certificates Baseline and MRV system not yet defined Baseline and Monitoring through CDM EB accredited methodology Coordination by governmentPoA Coordinator can have different legal form NAMAPoA Distinctions

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?