Takashi Hongo Senior Fellow Mitsui Global Strategic Studies Institute Asia Pacific and Eastern Europe Regional Workshop on Nationally Appropriate Mitigation Actions Establishing NAMAs as robust instrument for pre and post 2020 climate actions June 2015,Bonn, Germany NAMA for and with private investors - Combination of policy base lending and carbon market -
Private sector’s view over the potential of NAMA Keys for investment decision making of private investors “Risk and reward” X Market potential Upside profit Controllable risk and Un-controllable risk NAMA for private investors Integration of market ⇒ Common market eg. ASEAN Green Common Market, Pacific Joint purchase program Carbon market ⇒ Carbon price signal ; upward expectations Reliability of policy reform ⇒ Support by policy base lending
Ideas of NAMA implementation MDBs Bi-DFIs/Public FI Private Government BAU revenue Carbon revenue Project NAMA Carbon Market Policy Reform = Investment climate Gap funding = risk mitigation, revenue boosting Policy Support Lending = conditional disbursement * Review milestones of policy reform Investment Carbon revenue = Upside of return Regular revenue ReductionCash
Carbon Price in the world Source World Bank, Carbon Pricing Watch 2015
Carbon Price now ad future Source World Bank, Carbon Pricing Watch 2015 Source IETA, Carbon Market Sentiment 2015