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The NAMA Facility’s project cycle explained

September 2, 2022
Image: © iStock (ceded to GIZ)

For climate change mitigation projects in its portfolio to drive transformational change and achieve the best possible outcomes, the NAMA Facility promotes extensive preparation prior to launching project implementation. Following the initial NAMA Support Project (NSP) Outline phase, NSPs must successfully complete the Detailed Preparation Phase (DPP) which lasts ten or fifteen months in total. This time period enables NSPs to prepare a comprehensive, sound and data-driven project proposal, rendering projects more successful in reaching carbon-neutral solutions.

The overall goal of the NAMA Facility is to identify the most ambitious and promising projects that will reduce emissions while promoting sustainable development. This involves a competitive two-phase selection process, namely the NSP Outline Phase and the DPP.

Ambitious projects (NSPs) are defined by their transformation and mitigation potential, as well as their potential for leveraging further public and private finance. NSPs undergo a thorough desk-based assessment, and some of them an on-site assessment, by an independent external evaluator and the Technical Support Unit (TSU), which manages the NAMA Facility’s portfolio.

NSPs which successfully pass the assessment are recommended to the NAMA Facility Board for funding for the DPP, where they experience a more detailed assessment. When NSPs successfully pass the DPP, they are subsequently recommended for implementation.

While assessing projects, the NAMA Facility always takes the context of the country and sector into account and appreciates the unique nature of differing approaches.

In the below figure, ten steps explain the NSP selection process and the main actors involved in each of them:

Figure explaining the NSP selection process of the NAMA Facility

Visit the NAMA Facility projects section and learn more about our portfolio of 43 mitigation projects.

If you want to learn more about what it takes to craft a detailed project proposal visit our Knowledge and Learning Hub.

The NAMA Facility is a joint initiative of the German Federal Ministry for Economic Affairs and Climate Action (BMWK), UK’s Department for Business, Energy and Industrial Strategy (BEIS), 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).