How to develop a NAMA

by scaling-up

< ongoing >

programmatic CDM activities

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Thomas Forth Joint Implementation Koordinierungsstelle

JIKO

BMU, KI I 4

Agenda

I. The NAMA Framework

II. Bridging the Gap – From PoA to NAMA

III. Conclusions

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The NAMA Framework An evolving concept

On UNFCCC Agenda since negotiations in Bali 2007

Objective: Scale up mitigation actions

Several voluntary NAMA communications submitted to UNFCCC

following the Copenhagen Accord

see: FCCC/AWGLCA/2011/INF.1 for a summary

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

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NAMA Types

NAMA Funding

Unilateral Supported Market Based

Sector Target

Intensity Target

Absolute Target

Projects

Policies ...

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The NAMA Framework Where do we stand?

Scope:

Broad array of NAMA ideas but few concrete approaches

Sources of Funds:

Domestic - International Support - Market Based

Green Climate Fund (Part? of 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?

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Agenda

I. The NAMA Framework

II. Bridging the Gap – From PoA to NAMA

III. Conclusions

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http://www.southpolecarbon.com/_downloads/SouthPole-KfW_PoA_to_NAMA.pdf

HOW TO DEVELOP A NAMA BY SCALING-UP ONGOING

PROGRAMMATIC CDM ACTIVITIES ON THE ROAD FROM POA TO NAMAS

Study of South Pole Carbon Asset Management

Ltd on behalf of KfW and BMU

June 2011

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Introduction to the Study •Key Observation

•A NAMA includes design elements that are structurally similar to PoA

•Questions

•How can PoAs act as starting points to scale-up mitigation actions within a NAMA framework?

•Which PoA design elements are useful for NAMA design?

•What concrete suggestions can we provide to a NAMA designer who is tasked with the development of a NAMA using key building blocks of an existing PoA?

•Which recommendations can we provide going forward?

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Bridging the Gap – PoA to NAMA Why PoA as starting point?

A PoA can grow into a NAMA

Bridge between project based approach and sector approach

Enhance NAMA readiness via PoA experience

Fast track pilot schemes possible

Short term solution to mobilize market based sources for NAMA funding

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PoA

CPA CPA … CPA

NAMA

PoA Case Studies and their NAMA Scale Equivalent

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Country PoA Scope NAMA Scope

Uganda Small Scale Hydro Power

Integrated payments of carbon credits and FiT for grid connected RE development

India Energy Efficiency in SME Steel Industry

Energy Efficiency in Energy Intensive SME Industries

Nepal Domestic Biogas Development

Low Carbon Rural Development

Tunisia Energy Efficient Roofs

Low Carbon Housing

Bridging the Gap – PoA to NAMA Similarities and differences

Similarities 1. Support and implementation of

low carbon development activities and strategies

2. Documented evidence of GHG reductions by use of MRV Systems

3. Implementation of broad based GHG Mitigation programmes

4. voluntary actions

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Bridging the Gap – PoA to NAMA Similarities and differences

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Emission reductions account for NAMA country targets Exception for market based NAMA to be decided

Emission Reductions used for Annex-I- country Kyoto compliance

Broad, sectoral approaches beyond CDM possible

Defined by PDD and CDM methodology

Market mechanisms only an option Financed through market mechanisms

Baseline and MRV system not yet defined Baseline and Monitoring via CDM methodology

Coordination most likely by government body

Coordination via private or public sector

NAMA PoA

Differences

Further „technical“ differences

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Criteria NAMA PoA

Environmental Integrity

Managed on the sector-level

Managed on the activity level

MRV For all GHG sources that meet eligibility criteria

Participating GHG sources only

Incentives Carrots (different flavors) and sticks

Carrots only (one type only (CER))

Baseline setting

Political: “appropriate”

Pseudo-technical: “additional”

Bridging the Gap – PoA to NAMA

Preparatory steps for PoA upscaling Step 1: Identify and analyze potential PoAs

Step 2: Test suitability of PoA design for upscaling potential

Step 3: Test compatibility with institutional framework

Step 4: NAMA design based on steps 1 -3

*Study by South Pole on behalf of German Ministry for Environment and KfW

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Identify POA

Test upscaling potential

Check Institutional Compatibility

NAMA Design

Agenda

I.The NAMA Framework

II. Bridging the Gap – From PoA to NAMA

III. Conclusions

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Conclusions

NAMA concept still very broad with lack of regulatory guidance and experience

POA can be a fast start, bottom up approach to design NAMAs

To mobilize private sector funding we need clear rules

NAMA MRV can build on CDM MRV but should be simplified! (e.g. standardized baselines, benchmarks, positive lists)

We need pilot projects to gather experience for NAMA rules and guidance

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Thank you !

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