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 actions12-14 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

MDBsBi-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

Reduction Cash

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