lessons learnt from the 6 call - start - nama facility · 9/26/2019 · ii. 6th call analysis and...

Lessons Learnt fromthe 6th Call

NAMA Facility Webinar

26 September 2019

The NAMA Facility Webinar Team

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From left to right: Nicole, Sören and Zac

Technical Considerations

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• Function Tab

1. Audio Settings

2. Chat

3. Raise Hand

4. Q&A

5. Leave Meeting

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• Q&A

1. Click Q&A to open the Q&A window

2. Type your question into the Q&A box at any time. Click

Send. They will be answered during our Q&A sessions.

3. If any technical issues arise, please also send these

via the Q&A window, so that the organisers may

provide immediate assistance.

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Updates

6th Call: Congratulation to NSPs selected for DPP!

• Honduras – Transforming the Livestock Sector into a Low-Carbon Economy

• Jordan – Scaling Up Renewable Energy Financing Facility

• Madagascar – Northern Madagascar REDD+ Project

• Mongolia – Energy Performance Contracting for Residential Retrofitting in Ulaanbaatar City

• Morocco – Improving Energy Performance of Moroccan Households

Outlook to the 7th Call

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Structure of the Webinar

I. Introduction and 6th Call Overview

II. 6th Call Analysis and Lessons Learnti. Q&A

III. 6th Call Sectoral Observations

IV. NAMA Support Project Zoom-In: Mexico SME Energy Efficiencyii. Q&A

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I.I Introduction to the NAMA Facility

Multi-donor fund established by Germany (BMU) and the United Kingdom (BEIS), and joined in 2015 by Denmark (EFKM, MFA) and the European Union (DG Clima, DEVCO).

NAMA Facility is run day-to-day by the Technical Support Unit (TSU) in Berlin.

Through NAMA Support Projects (NSPs), supports developing countries and emerging economies in implementing ambitious NAMAs as building blocks of NDC implementation under the Paris Agreement.

Key facts:

NSPs selected in annual Call process

In 6 Calls, 31 NSPs have been pre-selected

Approx. EUR 420 million portfolio

No regional or sectoral focus

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I.II 6th Call Overview (i)

5th Call 6th Call

Submitted NSP Outlines 76 51

Resubmissions 16 16

Ineligible outlines 2 0

NSP Outlines from LDCs 23 from 15 LDCs 16 from 12 LDCs

NSP Outlines from SIDS 13 from 9 SIDS 5 from 4 SIDS

Total requested funding EUR 1096m EUR 800m

Average requested funding per NSP EUR 14,4m EUR 15,7m

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≡

I.II 6th Call Overview (ii)

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A S I A A F R I C A A M E R I C A S E U R O P E O C E A N I A

TOTAL NSP OUTLINES RECEIVED BY REGIONCALLS 1-6

1st Call

2nd Call

3rd Call

4th Call

5th Call

6th Call

I.II 6th Call Overview (iii)

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15

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1920

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E N E R G Y E F F I C I E N C Y R E N E W A B L E E N E R G Y

A G R I C U L T U R E F O R E S T R Y / L A N D U S E

T R A N S P O R T W A S T E / W A S T E W A T E R T R E A T M E N T

O T H E R

TOTAL NSP OUTLINES RECEIVED BY SECTORCALL 1-6

1st Call

2nd Call

3rd Call

4th Call

5th Call

6th Call

I.II 6th Call Overview (iv)

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A M E R I C A A S I A A F R I C A E U R O P E O C E A N I A

REGIONAL DISTRIBUTION

Selected NSPs from 6th Call (5)

NSPs from Calls 1-5 (26)

I.II 6th Call Overview (v)

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0 € 20 € 40 € 60 € 80 € 100 € 120 € 140 € 160 €

F O R E S T R Y

W A S T E

A G R I C U L T U R E

T R A N S P O R T

R E N E W A B L E E N E R G Y

E N E R G Y E F F I C I E N C Y

MILLIONS

FUNDING VOLUME BY SECTOR

NSPs from Calls 1-5 (26)

Selected NSPs from 6thCall (5)

I.II 6th Call Overview (vi)

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10,2%

20,4%23,9%

45,5%

0 €

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200 €

300 €

400 €

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N A M A F A C I L I T Y F U N D I N G P U B L I C F U N D I N G O T H E R D O N O R S P R I V A T E F U N D I N G

MILLIONSLEVERAGED FUNDS FOR 6TH CALL NSPs






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II. 6th Call Analysis and Lessons Learnt

Interesting features of 6th Call NSP Outlines City-level involvement: strong ownership by large cities, typically

capitals (such as Ulaanbaatar)

Demonstration projects: proven technologies targeting larger roll-out to prove and enhance commercial viability

Behavioural change: mitigation driven by the Technical Component on amended economic practices and enhanced by the Financial Component (agriculture)

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Things we have noticed - and liked

Ambitious yet realistic approaches and targets

Frank admittance of lack of sound assumptions in difficult sectors such as forestry – yet a good description of the potential

Solid mitigation calculation and clear underlying assumption in sectors that are more straightforward, such as renewable energy

Clear distinction between start of NSP implementation and start of mitigation impacts

Early indications as to provision of continued funding beyond the scope of the NSP

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Regarding financial mechanisms Proper barrier analysis as the basis for financial mechanism design

Focus more on what the end users’ needs are

Random financial mechanism selection without substantiation

Trying to do too many things

Please consult our previous webinars and publications for further guidance: https://www.nama-facility.org/publications/

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https://www.nama-facility.org/publications/


Feedback from applicants Non-selected projects greatly appreciated feedback calls

Appreciated webinars and application materials

Additional time for questions

Newly mandatory annexes challenging

Tight application timeframe

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III. Sectoral Observations: Transport Sector

Electric mobility on the rise.

Select the mode or technology and clearly describe justification for it – too many approaches can dampen project feasibility.

Importance of private sector.

Transport projects often long-lasting – bulk of the mitigation potential can lie beyond NSP.

Also highlight NSP mitigation potential within NSP lifetime.

Long-term projects require long-term gestation periods – plan accordingly.

Complex webs of stakeholders require planning and stakeholder buy-in.

Don’t forget about displacement and the informal economy!

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III. Sectoral Observations: Energy Efficiency

Appliances and other hardware

Transformational change: simple replacement schemes are insufficient.

One-time replacement schemes often have no sustainable effect

NF would look for an NSP embedded in a sector strategy.

Don’t forget about rebound effects: scrappage schemes must remove old devices from the market to lock-in mitigation effects.

Describe schemes in detail and remember country context and capacities (strengthen capacities if needed).

Identify potential market distortions.

If already on the market, target incremental costs – not the complete investment cost.

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III. Sectoral Observations: Energy Efficiency

Buildings

Holistic “whole building approach” instead of just low-hanging fruit.

Consider and describe: the quality, safety and performance of equipment.

For example, consider flammability of housing insulation, building resilience in earthquake areas, etc.

For new housing: integrate issues of urban planning (i.e. require concept for social infrastructure and public transport).

Ensure that new housing developments won’t induce rebound effects, such as the construction of more large road systems and the addition of more vehicles to the area.

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III. Sectoral Observations: Waste

“Circular economy” is not just a buzzword – don’t label as such without substantiation.

Consider waste prevention, waste segregation

Waste hierarchy is the guiding principle.

Identify financial barriers, especially market barriers to private sector participation.

Sustainability of financing model to ensure cost coverage is critical.

Address regulatory issues that would prevent successful implementation.

Identify barriers and measures to address required behavioural change.

Adapt selected technologies to conditions and sufficiently detail / justify.

Social aspects of workers / inclusion of informal waste pickers should be considered.

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III. Sectoral Observations: Renewable Energy

Mini-grid project concepts tend to have rather low mitigation potential.

Demonstrate transformational effect (as with all NSPs), i.e. how the NAMA Support Project triggers a sectoral change instead of simply financing a few projects.

Analyze effect of fossil fuel subsidies and other relevant regulations, such as national energy tariffs etc.

When designing, focus on renewable energy development – not simply electricity access.

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III. Sectoral Observations: Agriculture/Forestry

Labeling and certification – provide rationale, consider timing and ensure realistic assumptions.

Environmental issues and biodiversity warrant specific consideration.

Rebound effects: include in GHG mitigation calculations.

Upscaling can prove difficult: farmers live in different regions and/or climate zones – cooperatives/farmers group can increase cooperation.

Forestry: important to address leakage in any forestry project or component. REDD+ mechanism could be used if the NSP design is in line with the national and regional REDD+ strategy.

How does the NSP engage relevant stakeholders, how are “polluters” engaged?

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IV. NAMA Support Project Zoom-In: Mexico SME Energy Efficiency

SMEs account for 75% of employment and 50% of GDP – EE investments overlooked as viable business case

Effect a shift in perception and educate stakeholders of EE investments’ value as a smart business decision

Develop over 9,000 EE projects during NSP lifetime, targeting sub-sectors with most GHG emissions

Guarantee fund to offer an attractive lending environment for commercial banks

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NSP Facts

Partner ministries Ministry of Energy, Ministry for the Environment and Natural Resources

NAMA Support Organisation

GIZ

Status Implementation Phase

Call 4th Call

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Month 1July 2016

Month 1-4 4th Call open: 4 July 2016 – 31 October 2016

Month 4Submission deadline: 31 October 2016

Month 5-7On-site assessment: January 2017

Month 8February 2017

Month 8-25February 2017 – July 2018

Month 33 +February 2019 – Q1 2023

Month 33February 2019

Month 25July 2018

Month 25-30July - November 2018

IV. NAMA Support Project Zoom-In: Mexico SME Energy Efficiency

Board Clarification

Month 31-32December 2018 -

January 2019






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lessons learnt from the 6 call - start - nama facility · 9/26/2019 · ii. 6th call analysis and...

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