Project Outline
A detailed project concept and the proposed intervention prepared according to the requirements of the Mitigation Action Facility for Phase 2 (Project Outline Phase) of the project selection process.
Project Proposal
A comprehensive description of the project and the proposed intervention that is prepared during DPP (Phase 3 of the selection process).
Project Concept
An initial project idea outlined in a concise manner according to the requirements of the Mitigation Action Facility for Phase 1 (Project Concept Phase) of the project selection process.
Project Partner
Project Partners consist of national (sector) ministries, financial institutions such as regional or national (development) banks and other public and/or private entities working closely with the Implementation Organisation(s) and together with them mandated by the national government to implement and operate the project. The strong involvement and ownership of the project partners is considered to be essential for the success of the project. Under the NAMA Facility, they were called implementing partners (IPs).
Project
Projects are funded by the Mitigation Action Facility and provide support to governments for the implementation of mitigation actions through the provision of financial support and technical cooperation instruments. Under the NAMA Facility, these were called NAMA Support Projects (NSPs).
Partner country
An ODA-eligible country in which a project of the Mitigation Action Facility is being developed (DPP), implemented or has concluded the Implementation Phase.
Official Development Assistance (ODA)
ODA is an abbreviation for Official Development Assistance. This assistance has been allocated under Section 1 of the International Development Act 2002. ODA contributes to a reduction in poverty and aims to further sustainable development or improve the welfare of relevant countries.
According to the OECD, Official Development Assistance is defined as financial support to eligible countries and to multilateral development institutions which are: 1) Provided by official agencies, including state and local governments, or by their executive agencies; and 2) Is administered with the promotion of the economic development and welfare of developing countries as its main objective. More information about ODA can be found on the OECD website.
Facility Grant Agent
As Facility Grant Agent, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is commissioned to administer the Mitigation Action Facility. This comprises financial and contractual management as well as due diligence of Implementation Organisations (and, in some cases, sub-grantees).
Board of the Mitigation Action Facility (the Board)
The central decision-making body of the Mitigation Action Facility. Currently the Board comprises representatives from five Donors, i.e. German Federal Ministry for Economic Affairs and Climate Action (BMWK), UK Department for Energy Security and Net Zero (DESNZ), Danish Ministry of Climate, Energy and Utilities (KEFM) and Ministry of Foreign Affairs (MFA), the European Union (EU) and the Children Investment Fund Foundation (CIFF). The Board takes all relevant decisions related to strategy, policies, guidelines and budget, and selects the projects for funding.
Mitigation Action Facility
A climate fund jointly established by the governments of Germany and the United Kingdom and co-funded by the Danish government the European Union and the Children’s Investment Fund Foundation (CIFF). Formerly known as the NAMA Facility and renamed in 2023, it provides financial support to developing countries and emerging economies that show leadership on tackling climate change and that want to implement transformational country-led mitigation actions within the global mitigation architecture, specifically implementation of Nationally Determined Contributions (NDCs) and long-term strategies (LTS). Learn more about the governance of the Mitigation Action Facility.
Mitigation action / measure
A broad range of concrete instruments and activities developed and implemented in order to meet the objectives of Nationally Determined Contributions (NDCs) to achieve the goals of the Paris Agreement. Under the Mitigation Action Facility, mitigation actions / measures are focused on driving decarbonisation in priority sectors, including energy, transport and industry.
Long-term Strategy (LTS)
Long-term strategies (LTSs) along with the Nationally Determined Contributions (NDCs) are on of the key mechanisms under the Paris Agreement to achieve climate-resilient future. In contrary to NDCs that operate on five-year cycles, LTSs involve planning to 2050. In accordance with Article 4, paragraph 19, of the Paris Agreement, all Parties should strive to formulate and communicate long-term low greenhouse gas emission development strategies, mindful of Article 2 (long-term temperature goal) taking into account their common but differentiated responsibilities and respective capabilities, in the light of different national circumstances.
Implemention Organisation
Implementation Organisations, formerly known under the NAMA Facility as, firstly, Delivery Organisations and, later, NAMA Support Organisations (NSOs), are responsible and accountable for the proper delivery of funds and/or services, the financial and administrative management of the project, as well as monitoring and reporting to the Technical Support Unit (TSU) and the Board. A suitable Implementation Organisation can be nominated latest during the first three months Detailed Preparation Phase (DPP) to then be in charge of the Project Proposal submission. The architecture of the Mitigation Action Facility does not allow for a direct transfer of funds to government institutions (i.e. Ministries) in partner countries. The Ministries therefore cannot serve as Implementation Organisations but are widely represented as Project Partners.
Partner ministry
(Sub-) National ministry or ministries that due to their mandate are essential for the success of the project of the Mitigation Action Facility, and that endorse the Project Outline and, upon selection for DPP, the Project Proposal. Partner Ministry /-ies usually serve as Project Partners and have formalised relationships with the Implementation Organisation (e.g. in a form of a Memorandum of Understanding (MoU) or Implementation Agreement). These are often line/sector ministries and ministries in charge of environmental and climate change related matters.
Financial leverage
The amount of money invested into carbon-neutral technologies and/or practices promoted by a project by public and private entities in a country of the project implementation as a direct result of the projects` interventions and, particularly, its financial mechanism.
Sustainable development co-benefits
Contributions to sustainable socio-economic, ecological and institutional development associated with a project and which go beyond the reduction of greenhouse gas (GHG) emissions. Co-benefits are mostly reflected in the respective sector policy and can be obtained at a regional or local level (e.g. increase in income, social security, reduction of airborne pollutants). Sustainable development co-benefits are considered a key element to create country ownership and a driver for transformational change. They thus can have an important impact on the long-term sustainability of a project.
Green technology
Technology whose use is intended to mitigate or reverse the effects of human activity on the environment.
Mitigation
Human intervention to reduce the sources or enhance the sinks of greenhouse gas (GHG). Examples include using fossil fuels more efficiently for industrial processes or electricity generation, switching to solar energy or wind power, improving the insulation of buildings, and expanding forests and other ‘sinks’ to remove greater amounts of CO2 from the atmosphere.
Indirect mitigation potential
Indirect greenhouse gas (GHG) emission reductions achieved by the project capture emission reductions beyond those related to direct investments, e.g., resulting from technical assistance. Hence, potential emission reductions that fall in the following categories:
- Results of technical cooperation (TC) component during and after project period
- Results of financial cooperation (FC) component but only for units installed / measures implemented after project end, as a result of the continuation of the financial mechanism
Timing includes:
- Technical cooperation: during project period and during period of 10 years after project end, (during lifetime: optional)
- Financial cooperation: for units installed after project end for period 10 years after project end, (during lifetime: optional)
Direct mitigation potential
Achieved by project investments and discrete investments financed or leveraged during the project’s supervised implementation period (throughout the entire lifetime of the project). Hence, direct emission reductions are defined as mitigation achieved by units or measures (partially) financed or leveraged by the financial cooperation (FC) component of the project funding during the project period:
- Units must be installed / measures must be implemented during project period
- Timing of mitigation effect: during project period, during period of 10 years after project end and
over technology lifetime (but only for those units installed during project period)