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Concept and methodology of
                                            NAMA development


                              Matthias Krey, Perspectives GmbH
                              16.11.2011

                              Training Course “Existing CDM Potential and Perspectives for
                              Carbon Finance in RCREEE Member States beyond 2012”,
                              Cairo, Egypt, 16. November 2011


www.perspectives.cc · info@perspectives.cc                                       © 2011 Perspectives GmbH
Agenda

           Key NAMA elements
           Identification
           Support needs
           Institutional aspects




www.perspectives.cc · info@perspectives.cc   2
Key NAMA elements




www.perspectives.cc · info@perspectives.cc   3
Key elements of a successful NAMA formulation

       Mitigation potential (e.g. tCO2e/a) and GHG impact (e.g.
        direct/indirect; short term/long term)
       Scope, boundaries and links to other national strategies and
        national plan
       MRV and GHG calculation method (quantitative vs. qualitative e.g.
        emission/baseline based, performance/process indicators)
       Financing requirements for supported NAMAs (e.g. on
        MRV, measurability)
       Interaction between different measures
       Relation to carbon market (e.g. overlapping and double counting
        with CDM and other new market mechanisms)
       Crediting or not?




www.perspectives.cc · info@perspectives.cc   4
Identification




www.perspectives.cc · info@perspectives.cc   5
Main steps for NAMA potential identification and selection




                             2. Mitigation      3. Investigate   4. Identification   5. Formulation    6. Outreach
   1. Identification
                               potential           of NAMA        of actions and      of a concrete    and capacity
        actions
                             assessment         requirements         selection            NAMA           building

                                                                                                  (only for supported
                                                                                                  NAMA)



                                             Decision for unilateral and/or
                                             supported NAMA (elements)




www.perspectives.cc · info@perspectives.cc
Main steps for NAMA potential identification and selection


   1. Identification                           2. Mitigation
        actions                                  potential
                                               assessment



  • Analysis of national context in          • Analysis of current GHG mitigation
  terms of existing policies and             potential of possible actions
  programs and identification of
  appropriate and possible actions           • Review of current GHG mitigation
  and opportunities in the building          opportunities within the targeted sector
  sector                                     with regards to co-benefits

  • Possible points of departure
      • Existing and planned
      legislation
      • LCGS, LCDS, LEDS
      • Priority sectors for
      development
      • PoAs
www.perspectives.cc · info@perspectives.cc
Main steps for NAMA potential identification and selection

        3. Investigation                        4. Identification
            of NAMA                              of actions and
         requirements                               selection



     • Investigation of NAMA                   • Identification of most promising
     requirements for each                     options and selection for NAMA
     identified action                         formulation following specific NAMA
                                               selection criteria
     • Desk-review of studies/
     regulatory text to draw out in            • Establishment of a priority list of
     detail the potential                      mitigation measures / actions
     opportunities (as well as
     challenges) for NAMA                      • Selection of action or set of action
     supporting, e.g. MRV,                     for NAMA formulation
     financing requirements,
     barriers


                 Decision for unilateral and/or supported NAMA (elements)
www.perspectives.cc · info@perspectives.cc      8
Main steps for NAMA potential identification and selection

         5. Formulation                       6. Outreach
          of a concrete                       and capacity
              NAMA                              building



      • Formulation of a                     • Outreach to international donor
      concrete NAMA concept in               agencies to seek support for NAMA
      terms of general scope,
      detailed measures, MRV                 • Capacity building on low carbon
      approach and type of                   business plans/NAMAs
      NAMA

      • To be included in Annex
      II of the
      Copenhagen/NAMA
      registry and its
      development in practice



www.perspectives.cc · info@perspectives.cc    9
NAMA selection and formulation – concluding remarks

       NAMA selection considerations
             -     Emphasis on host country priorities
             -     Unilateral NAMA will likely be an enabling condition for supported
                   NAMAs
                   -      Option 1: Formulate a unilateral NAMA independent of the NAMA
                          you are seeking support for (e.g. In another sector)
                   -      Option 2: Formulate a coherent NAMA framework consisting of
                          unilateral and supported elements

       NAMA formulation
             -     Concepts
             -     Pilots
             -     Full NAMAs
www.perspectives.cc · info@perspectives.cc           10
Support needs




www.perspectives.cc · info@perspectives.cc   11
Identify areas for support

       Type of possible support
             -     Technology
             -     Financing
             -     Capacity Building
       Possible approach for assessing support needs in a NAMA
            framework consisting of unilateral and supported
             -     Identify the BAU scenario (without any NAMA)
             -     Identify the measures that you plan to implement and finance
                   unilaterally
             -     Identify the “additional” measures that you are seeking support
                   for (incremental actions/costs)
www.perspectives.cc · info@perspectives.cc     12
Identify areas for support

       Setting up of MRV systems is currently included in a number of
            NAMA conceptualisation activities supported by donors
       Role of the NAMA registry
             -     Is expected to help match countries seeking support and
                   countries willing to support
             -     NAMA registry not developed yet
             -     At the moment no clear guidance at UNFCCC on how to report
                   requests for support




www.perspectives.cc · info@perspectives.cc        13
Institutional aspects




www.perspectives.cc · info@perspectives.cc   14
Main steps for NAMA potential identification and selection




                             2. Mitigation   3. Investigate   4. Identification   5. Formulation   6. Outreach
   1. Identification
                               potential        of NAMA        of actions and      of a concrete   and capacity
        actions
                             assessment      requirements         selection            NAMA          building




                                 Stakeholder consultation, capacity building,
                                      set-up of institutional frameworks

                          => Relevant ministries, agencies, private sector, etc




www.perspectives.cc · info@perspectives.cc
Many Thanks for
                                             Your Attention!




                              Matthias Krey, Perspectives GmbH
                              16.11.2011

                              Training Course “Existing CDM Potential and
                              Perspectives for Carbon Finance in RCREEE
                              Member States beyond 2012”,
                              Cairo, Egypt, 16. November 2011
www.perspectives.cc · info@perspectives.cc                                  © 2011 Perspectives GmbH

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Concept and methodology of nama development

  • 1. Concept and methodology of NAMA development Matthias Krey, Perspectives GmbH 16.11.2011 Training Course “Existing CDM Potential and Perspectives for Carbon Finance in RCREEE Member States beyond 2012”, Cairo, Egypt, 16. November 2011 www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH
  • 2. Agenda  Key NAMA elements  Identification  Support needs  Institutional aspects www.perspectives.cc · info@perspectives.cc 2
  • 3. Key NAMA elements www.perspectives.cc · info@perspectives.cc 3
  • 4. Key elements of a successful NAMA formulation  Mitigation potential (e.g. tCO2e/a) and GHG impact (e.g. direct/indirect; short term/long term)  Scope, boundaries and links to other national strategies and national plan  MRV and GHG calculation method (quantitative vs. qualitative e.g. emission/baseline based, performance/process indicators)  Financing requirements for supported NAMAs (e.g. on MRV, measurability)  Interaction between different measures  Relation to carbon market (e.g. overlapping and double counting with CDM and other new market mechanisms)  Crediting or not? www.perspectives.cc · info@perspectives.cc 4
  • 6. Main steps for NAMA potential identification and selection 2. Mitigation 3. Investigate 4. Identification 5. Formulation 6. Outreach 1. Identification potential of NAMA of actions and of a concrete and capacity actions assessment requirements selection NAMA building (only for supported NAMA) Decision for unilateral and/or supported NAMA (elements) www.perspectives.cc · info@perspectives.cc
  • 7. Main steps for NAMA potential identification and selection 1. Identification 2. Mitigation actions potential assessment • Analysis of national context in • Analysis of current GHG mitigation terms of existing policies and potential of possible actions programs and identification of appropriate and possible actions • Review of current GHG mitigation and opportunities in the building opportunities within the targeted sector sector with regards to co-benefits • Possible points of departure • Existing and planned legislation • LCGS, LCDS, LEDS • Priority sectors for development • PoAs www.perspectives.cc · info@perspectives.cc
  • 8. Main steps for NAMA potential identification and selection 3. Investigation 4. Identification of NAMA of actions and requirements selection • Investigation of NAMA • Identification of most promising requirements for each options and selection for NAMA identified action formulation following specific NAMA selection criteria • Desk-review of studies/ regulatory text to draw out in • Establishment of a priority list of detail the potential mitigation measures / actions opportunities (as well as challenges) for NAMA • Selection of action or set of action supporting, e.g. MRV, for NAMA formulation financing requirements, barriers Decision for unilateral and/or supported NAMA (elements) www.perspectives.cc · info@perspectives.cc 8
  • 9. Main steps for NAMA potential identification and selection 5. Formulation 6. Outreach of a concrete and capacity NAMA building • Formulation of a • Outreach to international donor concrete NAMA concept in agencies to seek support for NAMA terms of general scope, detailed measures, MRV • Capacity building on low carbon approach and type of business plans/NAMAs NAMA • To be included in Annex II of the Copenhagen/NAMA registry and its development in practice www.perspectives.cc · info@perspectives.cc 9
  • 10. NAMA selection and formulation – concluding remarks  NAMA selection considerations - Emphasis on host country priorities - Unilateral NAMA will likely be an enabling condition for supported NAMAs - Option 1: Formulate a unilateral NAMA independent of the NAMA you are seeking support for (e.g. In another sector) - Option 2: Formulate a coherent NAMA framework consisting of unilateral and supported elements  NAMA formulation - Concepts - Pilots - Full NAMAs www.perspectives.cc · info@perspectives.cc 10
  • 11. Support needs www.perspectives.cc · info@perspectives.cc 11
  • 12. Identify areas for support  Type of possible support - Technology - Financing - Capacity Building  Possible approach for assessing support needs in a NAMA framework consisting of unilateral and supported - Identify the BAU scenario (without any NAMA) - Identify the measures that you plan to implement and finance unilaterally - Identify the “additional” measures that you are seeking support for (incremental actions/costs) www.perspectives.cc · info@perspectives.cc 12
  • 13. Identify areas for support  Setting up of MRV systems is currently included in a number of NAMA conceptualisation activities supported by donors  Role of the NAMA registry - Is expected to help match countries seeking support and countries willing to support - NAMA registry not developed yet - At the moment no clear guidance at UNFCCC on how to report requests for support www.perspectives.cc · info@perspectives.cc 13
  • 15. Main steps for NAMA potential identification and selection 2. Mitigation 3. Investigate 4. Identification 5. Formulation 6. Outreach 1. Identification potential of NAMA of actions and of a concrete and capacity actions assessment requirements selection NAMA building Stakeholder consultation, capacity building, set-up of institutional frameworks => Relevant ministries, agencies, private sector, etc www.perspectives.cc · info@perspectives.cc
  • 16. Many Thanks for Your Attention! Matthias Krey, Perspectives GmbH 16.11.2011 Training Course “Existing CDM Potential and Perspectives for Carbon Finance in RCREEE Member States beyond 2012”, Cairo, Egypt, 16. November 2011 www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH