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Priority sectors in focus: key considerations for strong Project Concepts in transport, energy, and industry

January 13, 2026

As part of its continued support to applicants under the Call for Projects 2026, the Technical Support Unit (TSU) recorded a webinar on “Lessons learnt and common pitfalls in the Concept Phase”. Building on insights from previous Calls, the webinar highlighted sector-specific considerations that have proven critical for designing strong, competitive Project Concepts. With transport, energy, and industry at the heart of global mitigation efforts, and at the core of the Mitigation Action Facility’s portfolio, the following highlights provide practical guidance for applicants preparing Project Concepts in these priority sectors.

Transport: Designing systemic and scalable transitions 

Successful transport projects go beyond the simple replacement of vehicles. Experience from previous Calls shows that strong Concepts adopt a system-wide perspective, taking into account energy supply, charging or fuelling infrastructure, interoperability, safety, and circular economy aspects from the outset. 

Projects should be grounded in a realistic understanding of mobility patterns, using context-specific baselines rather than generic assumptions about vehicle use or demand. Robust business models are essential and should cover not only upfront investments, but also operations, maintenance, aftersales services, and end-of-life solutions. 

Transport transitions can have far-reaching social and economic implications. Strong Project Concepts anticipate impacts on existing assets, jobs, and informal operators and actively manage these changes to support a just and inclusive transition. Alignment with national transport strategies and NDCs is key to ensuring government ownership, while clearly articulated co-benefits – such as improved air quality, health outcomes, affordability, and job creation – help secure long-term political support.  

Energy: Focusing on mitigation impact and system integration 

In the energy sector, applicants are encouraged to clearly justify the need for Mitigation Action Facility support, particularly for large-scale renewable energy projects. The focus should remain firmly on mitigation outcomes, with a strong emphasis on renewable energy generation rather than electricity access alone. 

Where project types inherently have lower mitigation potential – such as certain mini-grid applications – a clear and credible mitigation logic becomes even more important. Grid stability and system reliability should be addressed early to ensure successful integration of new generation capacity. 

For energy efficiency projects, the Facility prioritises interventions that trigger transformational change rather than one-off replacement schemes with limited replication potential. Strong Concepts demonstrate alignment with sectoral strategies and regulations, focus on incremental costs, and explicitly address rebound effects, for example through measures to remove inefficient equipment from the market. Across all energy projects, sustainability considerations – including waste management and sustainable sourcing – are essential elements of sound project design.

Industry: Enabling deep and lasting decarbonisation 

Industrial projects play a central role in addressing hard-to-abate emissions. Strong Project Concepts are closely aligned with sectoral strategies and regulatory frameworks and clearly articulate bankable business models across the value chain. Applicants should demonstrate that there is a real market and willingness to pay for low-carbon products, while clearly identifying and addressing financial barriers that limit private sector participation. 

whole-production approach is critical. Rather than focusing solely on low-hanging fruits, successful projects consider energy inputs, production processes, and downstream impacts in an integrated manner. Technology choices require particular care to avoid technological lock-in or stranded assets. 

Carbon Capture, Utilisation and Storage (CCUS) should only be proposed where it is necessary to address unavoidable process emissions and where it contributes to overall emissions reductions across the value chain. For CCS projects, a robust legal and regulatory framework — including provisions for long-term liability and high retention rates — is a prerequisite. Where alternative fuels are used, projects must demonstrate the sustainability of feedstocks and ensure effective management of hazardous content.

Turning sector insight into strong Project Concepts 

The sectoral considerations highlighted during the webinar are not exhaustive requirements, but reflect common success factors observed across the Mitigation Action Facility’s portfolio. Applicants who integrate these insights early in the Concept Phase are better positioned to develop Project Concepts that are ambitious, feasible, and capable of delivering lasting, systemic mitigation impact. 

Recordings and presentation materials from the webinar, along with further guidance documents and resources, are available on the Call for Projects 2026 webpage