Glossary

The Ambition Initiative Call (launched in 2020) and the Ambition Initiative – Round Two (launched in 2021) under the former NAMA Facility featured several new characteristics that distinguished them from previous Calls (1^st-7^th), targeting an even higher level of ambition in mitigation projects to achieve transformation towards carbon-neutrality and to allow countries to build back greener as they recover from the Covid-19 pandemic. The new characteristics included: – Focus on enhanced and ambitious Nationally Determined Contributions (NDCs) as an eligibility criterium; – focus on projects targeting sectors explicitly included in the enhanced NDCs; – emphasis on the role of global cooperation in climate change mitigation, in particular on cooperation with the NDC Partnership (NDCP); – the requirement to ensure contribution to existing national efforts for green recovery from the Covid-19 pandemic; – strengthened emphasis on innovation in the context of raised NDC ambition and consideration of applications for projects that require a small sized pilot for novel technologies before moving into a larger scale project (the focus on novel technologies was optional for projects); increased upper funding volume of EUR 25 million per project; disbursement of additional budget for highly successful projects; and possibility for commercial organisations to serve as Applicants/Applicant Support Partners (ASPs) and implementation organisations (former NSOs).

In the initial Project Concept and Outline Phases, national ministries or legal entities may function as Applicants, i.e. submit a Project Concept and, upon selection, an Outline to the Mitigation Action Facility. Legal entities must comply with capacity requirements as stipulated in the General Information Document (GID) and receive sufficient endorsement by the national government institutions relevant for the implementation of the project. In case that the Project Concept or Outline is submitted by a national ministry, a legal entity should be identified as an Applicant Support Partner. Upon selection of the Outline for the Detailed Preparation Phase (DPP), the legal entity (as Applicant/Applicant Support Partner) will then function as a contracting partner for DPP. During DPP, the designated implementation organisation(s) (former NSOs) shall be nominated to be responsible for the technical and financial cooperation (TC and FC) components of the project, if / when it is approved for Implementation. The implementation organisation submits the Project Proposal having been endorsed by the national government.

If a national ministry submits the Project Outline, a legal entity complying with the capacity criteria as stipulated in the General Information Document (GID) should be identified as Applicant Support Partner for the contracting of the Detailed Preparation Phase (DPP).

The stage of the Project Proposal development that follows the Project Outline selection phase and precedes the submission of Project Proposals. From the 4^th Call onwards, this stage is called Detailed Preparation Phase (DPP).

People in the country (and area), where the project is implemented that directly benefit from the project by using the services and goods that are provided by the project (“end-users”). This could be economic benefits, improvements in quality of life or improved capacities.

A key indicator for transformational change in a sector is the redirection of the flow of funds. To achieve this, consumer and/or investor decisions must be influenced towards a carbon-neutral pathway. The underlying assumption is that consumers/investors will change their commercial/financial decisions if it is economically beneficial for them and if it follows a potentially successful business model. The concept of the project needs to offer a (potentially) successful “business model” for consumers/investors including adequate financing mechanisms.

An entity taking the role as an Applicant, Applicant Support Partner or implementation organisation (former NSO) in the preparation/implementation of a project as stipulated in 3.4 of the General Information Document (GID).

From the 4^th Call onwards, this term was substituted by NAMA Support Organisation (NSO). From the establishment of the Call under the Mitigation Action Facility, the term NSO was substituted with implementation organisation.

The stage of the Project Proposal development with a duration of either 10
or 15 months that follows the Project Outline phase and precedes the submission of Project Proposals. To learn more about what it takes to craft a detailed project proposal, visit the Knowledge & Learning Hub.

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)

All projects with an overall duration of more than three years are subject to a mid-term and to a final evaluation and learning exercise (ELE). These ELEs are part of the Mitigation Action Facility’s working approach to catalyse transformational change through incremental monitoring processes that allow fearless learning.

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 (former NSOs).

One of the ambition criteria of the Mitigation Action Facility. The financial ambition of a project is assessed as its ability to leverage additional private and/or public funds for the implementation of the mitigation action and/or for financing carbon-neutral investments related to the mitigation action. The financial potential is also reflected in two of the mandatory core indicators of the Mitigation Action Facility.

The amount of money invested into climate friendly solutions by public and private entities in the recipient countries as a direct result of the projects` interventions in the financial components.

Financial mechanism is one of the key interventions of the projects of Mitigation Action Facility and a crucial part of their financial cooperation (FC) components. Financial mechanisms aim to address and overcome the financial barriers that hinder investments in carbon-neutral technologies and/or practices. The following instruments employed through financial mechanisms can be highlighted: – Risk mitigation instruments that address high (perceived) risk (e.g. guarantees); – Financing & refinancing instruments that supply additional long-term capital (e.g. loans); – Grant instruments that address gaps in the financial viability.

A visual illustration of the project time schedule. It displays the outcome, the timeframe of outputs and milestones and related activities along the timeline of the project.

Provides general information on the Mitigation Action Facility, its objectives and functioning as well as specific information on the selection process of projects for funding under the Mitigation Action Facility. The purpose of the document is to assist national governments of partner countries and other potential Applicants in preparing Project Concepts and Project Outlines for submission to the Mitigation Action Facility.

Technology whose use is intended to mitigate or reverse the effects of human activity on the environment.

Long-term direct and indirect effects of the project that reflect the ambition criteria: potential for transformational change including sustainable development co-benefits, financial ambition and mitigation ambition.

The implementation of a project refers to the stage when the project design, institutional set up, measures and activities are sufficiently developed and prepared to get started on the ground.

Implementing partners, now referred to as project partner under the Mitigation Action Facility, are national (sector) ministries, financial institutions such as regional or national (development) banks and other public and/or private entities mandated by the national government to implement and operate the project. The strong involvement and ownership of the national government and implementing partners is considered to be essential for the success of the project.

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. An eligible Implementation Organisation can be nominated latest during the 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.  

Quantitative or qualitative indicators provide evidence on the achievement of results. Indicators add greater precision to the project goals and serve as a binding standard for measuring the attainment of goals and thus the success of the project. The Mitigation Action Facility Monitoring & Evaluation (M&E) framework defines three types of indicators: core mandatory indicators, sector-specific outcome indicators and project-specific output indicators. All indicators have to be SMART (specific, measurable, achievable, realistic and time-bound). Please refer to the M&E framework for further information.

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)

The logframe is a results matrix drawn from the results model or Theory of Change. The logframe shows the linear causal relationship between the impact, the outcome(s) and related outputs and activities of the project. Indicators are quantitative and qualitative variables to measure changes and results, and sources of verification are needed to substantiate these elements. Central assumptions and risks for achieving the defined targets also have to be described in the logframe as it is the basis for the project’s Monitoring & Evaluation (M&E) concept.

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.

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.

A broad range of concrete instruments and activities developed and implemented in order to achieve the objectives of Nationally Determined Contributions (NDCs) to meet Paris Agreement goals. Mitigation actions and measures can also be understood within the concept of Nationally Appropriate Mitigation Actions (NAMAs), which were implementation modalities for NDCs. Under the Mitigation Action Facility, these actions or measures are focused on driving decarbonisation in priority sectors, including energy, transport and industry. See definition for NAMAs. 

Jointly established by the governments of Germany and the United Kingdom and co-funded by the Danish government and the European Union. 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 or measures within the global mitigation architecture, specifically implementation of Nationally Determined Contributions (NDCs) and long-term strategies (LTS). More information about the governance of the Mitigation Action Facility.

The central decision-making body of the Mitigation Action Facility. Currently the Board comprises representatives from five Donors, i.e. German BMWK, UK BEIS, Danish KEFM and 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.

This is one of the ambition criteria of the Mitigation Action Facility and describes the direct and indirect greenhouse gas emission (GHG) reductions caused by the project. The mitigation potential is also reflected in one of the mandatory core indicators of the Mitigation Action Facility.

The central decision-making body of the NAMA Facility. Currently the Board comprises representatives from four Donors, i.e. German BMWK, UK BEIS, Danish KEFM and MFA and the European Union (EU). The Board takes all relevant decisions related to strategy, policies, guidelines and budget, and selects the NAMA Support Projects (NSPs) for funding.

As NFGA of the NAMA Facility Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is commissioned to administer the NAMA Facility. This comprises financial and contractual management as well as due diligence of NAMA Support Organisations (NSOs).

NSOs (currently, implementing organisations) are responsible and accountable for the proper delivery of funds and/or services, the financial and administrative management of the project, reporting to the Technical Support Unit (TSU) and the Board, and for monitoring. The architecture of the NAMA Facility does not allow for a direct transfer of funds to the implementing (government) institution in the partner country. Eligible NSOs, now called implementation organisations, can submit Project Concepts, Outlines and Proposals to the Mitigation Action Facility.

Projects funded by the NAMA Facility, now known as the Mitigation Action Facility, that provide support to governments for the implementation of the most ambitious parts of their Nationally Appropriate Mitigation Actions (NAMAs) / Nationally Determined Contributions (NDCs) through the provision of financial support and technical cooperation instruments. Currently, the term NSP is abolished and the term “project” is used.

NAMAs refer to any action that reduces emissions in developing countries and is prepared under the umbrella of a national governmental initiative. They can be policies directed at transformational change within an economic sector, or actions across sectors for a broader national focus. NAMAs are supported and enabled by technology, financing, and capacity-building and are aimed at achieving a reduction in emissions relative to ‘business as usual’ emissions in 2020. They are defined at two levels: 1) NAMAs at the National Level and 2) Individual NAMAs that contribute towards meeting the objectives of NAMAs at the National Level (Source and more information: UNFCCC).

NDCs are at the heart of the Paris Agreement. NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change. The Paris Agreement (Article 4, paragraph 2) requires each Party to prepare, communicate and maintain successive nationally determined contributions (NDCs) that it intends to achieve. Parties shall pursue domestic mitigation measures, with the aim of achieving the objectives of such contributions (Source: UNFCCC).

ODA is defined as government aid that promotes and specifically targets the economic development and welfare of developing countries. The Development Assistance Committee (DAC) adopted ODA as the “gold standard” of foreign aid in 1969 and it remains the main source of financing for development aid. ODA data is collected, verified and made publicly available by the OECD.

The overarching direct project goal and direct effects that can be causally attributed to the project interventions and reflects the utilisation of the outputs by the target group.

Products, goods, services and regulations/ standards that have arisen as a result of the project activities.

An ODA-eligible country in which a project of the Mitigation Action Facility is being developed (DPP), implemented or has concluded the implementation phase.

(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 climate change related matters.

Projects are funded by the Mitigation Action Facility and provide support to governments for the implementation of sector-wide mitigation actions, Nationally Determined Contributions (NDCs) and long-term strategies (LTS) through the provision of financial support and technical cooperation instruments. Under the NAMA Facility, these were called NAMA Support Projects (NSPs).

Project partners, formerly referred to as implementing partners under the NAMA Facility, 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 national government and project partners is considered to be essential for the success of the project. Under the NAMA Facility, they were called implementing partners (IPs).  

Readiness refers to the degree of maturity or development of a project. Activities to prepare a project are generally referred to as readiness activities. In the sense of the Mitigation Action Facility, a project is considered to be ready, when it is able to move to the implementation stage of the activity right away, after a limited detailed preparation e.g. of the envisaged financial mechanisms.

People or organisations that actively participate in the project or are directly affected by the project in a positive or negative way. They could be actively involved in the project as intermediary organisations in the implementation (e.g. micro finance institutions or associations) or passively associated rather as a recipient (benefitting from capacity development or being targeted for harm reduction purposes). Stakeholders are different from the targeted beneficiaries of a project.

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.

Assists the Board in managing the Mitigation Action Facility. The TSU is the secretariat of the Mitigation Action Facility and the focal point for national governments, implementation organisations (former NSOs) and other stakeholders. The TSU is responsible for organising Calls for Projects, assessing Project Concepts, Outlines and Proposals and Monitoring and Evaluation (M&E) of the Mitigation Action Facility during implementation. It also has responsibility for the financial management of the Mitigation Action Facility.

Change is considered transformational if it is significant, abrupt (quicker than the business-as-usual) and permanent/irreversible in bringing the country on a carbon-neutral development trajectory in line with the 1.5-degree-objective. Projects can support the transformational change by enabling a significant evolution in terms of scope (e.g. scaling-up or replication), a faster change or a significant shift from one state to another. They do so by influencing policies, regulation, and enforcement and by providing adequate financing mechanisms that manage to incentivise consumer/investor decisions in order to sustainably redirect the flow of funds in the sector towards the carbon-neutral pathway.