COP27 side event recap: NAMA Facility announces major funding and portfolio updates in Egypt
The NAMA Facility announces a change in name and future direction from 2023 and funding and portfolio updates on Decarbonisation Day at the 27th Conference of Parties (COP27)’s UK Pavilion in Sharm El Sheikh, Egypt, representatives from the NAMA Facility made major announcements regarding the portfolio, funding and the future direction for the climate fund.
Titled, “How climate finance drives sectoral decarbonisation – insights from the NAMA Facility”, the event commenced with an announcement on the formal approval of host country Egypt’s Solar PV project for implementation.
Kate Hughes, Director of International Climate Finance and Strategy from UK Department for Energy Security & Net Zero (DESNZ) who made the announcement commented: “The Egypt Solar PV Project is a concrete, real-life example of how international climate finance can support industry transition towards net-zero.” Ramy Mosa, Head of the Egyptian-German Joint Project on Renewable Energy added: “We are committed as the lead Ministry [Ministry of Electricity of Renewable Energy] to support and upscale this project to support the achievement of our NDC.”
Subsequently, Shirish Sinha of the Children’s Investment Fund Foundation and a NAMA Facility Board member, congratulated four projects for their selection in the Ambition Initiative – Round Two, the 9th Call for Projects since the NAMA Facility’s establishment. These projects from Mongolia, Namibia, Nepal and Paraguay span across three sectors, energy, transport and AFOLU, also featuring strengths of sector coupling and an impressive set of co-benefits. They will have 10 (or in some cases 15) months to elaborate technical and financial project details to prepare for the project’s implementation. With this announcement, the NAMA Facility now features 47 mitigation projects across 31 countries.
In the most significant announcement made in the NAMA Facility’s history so far, the founding Donors, the German Ministry for Economic Affairs and Climate Action (BMWK) and UK BEIS jointly announced that in 2023, the NAMA Facility will become the Mitigation Action Facility.
The Parliamentary State Secretary Stefan Wenzel from BMWK stated that new Call for Projects comparable to previous funding rounds will be launched in the first half of 2023 as part of the future Mitigation Action Facility. In addition, Kate Hughes of UK BEIS re-joined the stage to highlight the priority sectors, energy, transport and industry, that will be the focus of the Mitigation Action Facility and this upcoming Call.
Wenzel announced: “The name [Mitigation Action Facility] reflects the high relevance of our program for the implementation of ambitious mitigation measures in line with the Paris Agreement, deriving from NAMAs or increasingly from NDCs to LTCs [long-term strategies]… a new Call is planned for next year with a funding volume of around EUR 100 million.” He also described a few new Call features including lower barriers for funding applicants and early support to enable to development of feasible project ideas.
In addition, Kate Hughes of UK BEIS re-joined the stage to highlight the priority sectors, energy, transport and industry, that will be the focus of the Mitigation Action Facility and this upcoming Call. Elaborating on the choice of priority sectors, Hughes commented: “That’s because we know that’s where the emissions are and we need to take action”. According to the data from IPCC and the Breakthrough Agenda Report by IEA and IRENA, the three sectors cumulatively account for 67% of global annual GHG emissions.
The shift in the Facility’s focus emphasises NAMA Facility Donors’ commitment to be more targeted when funding ambitious climate solutions in developing countries and emerging economies and driving decarbonisation in priority sectors.
Dr. Sören David, who heads the Technical Support Unit (TSU), the Facility’s portfolio manager, moderated the event and shared the enthusiastic tone of the Donors regarding these significant announcements.
The side event covered various topics, including the role of climate finance in supporting the implementation of ambitious NDCs in developing and emerging economies, sectoral decarbonisation, and mobilisation of private investments to achieve Paris climate goals.
Ms. Narangaravuu Altangerel, who represented the Ministry of Environment and Tourism (MoET) of Mongolia stated, “Support from the NAMA Facility will allow us to demonstrate solar district heating systems and put in place incentives and financing to scale up clean heating projects in Mongolia.” Explaining what has motivated his country to participate in the Call for Projects of the NAMA Facility, future Mitigation Action Facility, Mr. Johnson Ndokosho of the Ministry of Environment, Foresty and Tourism of Namibia held that: “Ensuring that the electricity is coming from the renewable sources will be key in reaching our decarbonisation goals.”
- Watch the event recording (by clicking this link, you are leaving the NAMA Facility website and entering YouTube).
- Read about the selected winners of the first round of the Ambition Initiative.
- Read the announcement for Ambition Initiative – Round Two recipients.
- Read the press release on the name change and future direction.
The NAMA Facility is a joint initiative of the German Federal Ministry for Economic Affairs and Climate Action (BMWK), UK Department for Energy Security & Net Zero (DESNZ), the Danish Ministry of Climate, Energy and Utilities (KEFM), the Danish Ministry of Foreign Affairs (MFA), the European Union and the Children’s Investment Fund Foundation (CIFF).