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.
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.