Lessons Learned from CCAP s MAIN Initiative on NAMAs

Transcription

1 Lessons Learned from CCAP s MAIN Initiative on NAMAs Michael Comstock Manager, International Climate Dialogue Center for Clean Air Policy ********* Workshop on the Low Carbon Development and Resilient Society in Asia September 4, 2012 Bangkok, Thailand Mitigation Action Implementation Network Goals: Create regional networks of policymakers involved in NAMAs (Asia, Latin America) Build national capacity to identify, design and develop financeable NAMAs Facilitate financing for implementation of early NAMAs Impact the design of bi /multilateral NAMA finance programs, GCF Components: 1. Regional dialogues of policymakers, experts, potential funders 2. Video conferences, web peer to peer learning, MAIN Portal 3. Harvesting of best practices, case studies, policy analysis, policy papers 4. On the ground support for NAMA design, country workshops 5. Global dialogues, policy lunches for negotiators Principal funders: Germany ICI, Environment Canada, Denmark

2 MAIN Highlights Regional Dialogues to date Policy Papers Criteria for evaluating supported NAMAs, MRV and sustainable development, financing mechanisms, regional and sectoral success stories/case studies MAIN countries are making significant NAMA progress in various sectors 8 MAIN LAC countries have over 40 NAMAs under development, with several close to receiving implementation support 7 MAIN Asia countries are collaborating with international partners to conduct studies and design NAMAs (Vietnam cement and waste; Philippines waste) MAIN Asia Meeting in Vietnam Example of Promising NAMA Chilean Renewable Energy Price Stabilization Fund (PSF) Revolving fund to insure RE projects against spot market price fluctuation Conduit for private sector project finance investment in renewable energy Could help Chile surpass its current RE target of 10% by 2024

3 1. Sustainable development co benefits catalyze NAMAs more than GHGs Sustainable development priority for developing countries Mitigation actions can be nested in broader development strategy Helps sell actions to parliaments, constituents Many government policies being developed could be NAMAs (simply policies) Guangzhou BRT 2. Lack of definition = opportunity to shape concept (not deterrent) Influence according to national circumstances Early, concrete NAMAs can help shape Green Climate Fund(MRV, funding criteria) UNFCCC leaving much of design to on the ground actions 3. A shared vision on guidelines for effective supported NAMAs will facilitate NAMA development Help developing countries design policies that are attractive for support Influence bi /multilateral NAMA support, Green Climate Fund 4. NAMA design should involve a wide range of stakeholders Need political support and input/buy in from sectors/ministries NAMAs should be vertically integrated with sub national policy makers/implementers Private sector must be involved from early stages to help design financeable NAMAs and understand investment opportunities 5. NAMAs can be considered in three phases/groups: 1) Readiness efforts (eg, feasibility studies) for future NAMA development 2) Pilot projects that are part of, and will influence, a broader NAMA strategy 3) Full scale, transformational NAMAs

4 6. An expanded approach to MRV can satisfy the needs of implementing countries, funders, and the UNFCCC Should not enshrine GHG reductions Incorporate action metrics, progress metrics, and sustainable development metrics Potential to indirectly abate more emissions than CDM (but harder to measure) 7. NAMAs are most promising source of climate mitigation funding NAMAs can attract financing for SD actions that also help meet UNFCCC targets Near term demand for CDM offsets, GCF funds years away Several developing countries stepping up NAMA support Private sector financing will likely provide significant support to NAMAs Need to avoid double counting if NAMAs are developed in a CDM sector 8. NAMA designs must incorporate appropriate financial engineering Attract investors, leverage funding, overcome financial barriers Several mechanisms can be combined into a single NAMA (grants, soft loans, equity, risk guarantees, etc) Tailored to local circumstances, include financial experts in design 9. Government policies that provide Transparency, Longevity, and Certainty/Consistency to investors will encourage investment in NAMAs Transparency: policies should be clear and accessible to a broad class of investors Longevity: policy framework and incentives should have sufficient time horizons to allow for investors to understand the policies and recoup their investment Certainty/Consistency: policies need to be consistent and insulated from short term political changes 10. Developing countries should proactively approach funders Many countries waiting for offers of support (and UNFCCC guidance) 11. Ambitious NAMAs must continue to be met with ambitious funding for implementation Bilateral implementation funding has started to flow Interested in funding efforts with quick results, high likelihood of success in countries where there is need/capacity, and donor has expertise/existing relationship Public funding should leverage private investment for NAMAs

5 Needs Going Forward to Accelerate NAMA Development Tools & Best Practices Sector specific policy prioritization tools and NAMA design process Successful examples of actions to replicate Capacity in Developing Country Governments Full time staff dedicated to NAMA development (sectoral expertise) Assistance translating development policies into NAMAs Data Baselines, studies to determine estimated emissions reductions MRV Metrics Broader range of sector specific MRV metrics that address co benefits Finance & Financial Education Financing for NAMA implementation Agreement on initial funding criteria that balance needs NAMA designers/implementers need to be educated in toolbox of financial mechanisms that can address barriers in NAMA proposals Private Sector Involvement Strategies to integrate private sector early, leverage investments in actions, build strong business cases, public private partnerships MAIN Going Forward Regional Dialogues: Latin America dialogue: October 2012 Asia dialogue: summer 2013 Special dialogue in Copenhagen in March/April 2013 Participating countries from both regions present NAMA proposals to potential funders for NAMA support The Global Methane Initiative will be hosted by Canada in Vancouver in March 2013 and will include a profile of NAMA proposals and opportunities in the methane/waste sector Going forward, MAIN will focus on further elaboration of NAMA proposals in Latin America and Asia

6 Thank you Michael Comstock Quote from participant in MAIN Vietnam Dialogue: "CCAP has been very helpful and open to the countries' situation and circumstances. Instead of imposing the mechanism, it opens a dialogue specific to needs and coordination." CCAP Bilateral NAMA Support Waste, Renewable Energy & Energy Efficiency Dominican Republic Integrated Tourism NAMA This NAMA would incorporate aspects of waste management, energy efficiency, and renewable energy associated with the country s tourism industry Urban development plan in Cali, Colombia Waste Chile Integrated Solid Waste Management Conduct a baseline of organic solid waste generation in 12 municipalities Assess technical and financial feasibility of various waste management technologies, including at a minimum composting, anaerobic treatment, and transport Promotes waste reduction and also explores landfill gas utilization for energy Transport Colombia Transit Oriented Development Integrates transportation, land use and housing to support environmental and economic goals International and public financing leverages private investment in residential and commercial development near public transit Cornerstone is public private compact that specifies activity and investment responsibilities to implement plan

7 CCAP Bilateral NAMA Support Renewable Energy Chile Price Stabilization Fund (PSF): Revolving fund to insure RE projects against spot market price fluctuation Conduit for private sector project finance investment in renewable energy Could help Chile surpass its current RE target of 10% by 2024 Waste Colombia Solid Waste Management: Canada has funded workshops and studies to define a waste sector NAMA Pilot city will be chosen for a study to consider an integrated solid waste NAMA Could include policies to divert organic waste away from landfills and into composting or bio digestors; extended producer responsibility; increased recycling; and/or improved mgmt of construction and demolition waste Waste Mexico Solar panels in Santiago Tourism generated Waste Management in Cancun Bio digester for source separated organic components of solid waste generated at tourist locations Processes 100 tons/day from regional tourism facilities Generates power from biogas Produces fertilizer and soil conditioner as a by product CCAP Bilateral NAMA Support Example of Activities Countries: Chile, Colombia, Dominican Republic, Mexico NAMA: Solid Waste Management Goal: Shovel ready and financeable waste management NAMAs by March 2013 Activities: Conduct workshops to build capacity, identify national priorities, showcase best practices, shore up political support Steering committee meetings to identify pilot projects and guide studies Harvest best practices and determine best policy options Conduct in depth studies in pilot cities, collect data, determine potential for scaling up On the ground actions to support the design and implementation of NAMAs, including developing MRV and identifying financing resources Conduct peer review to ensure NAMAs are sound with concern for MRV and financing Share knowledge within and outside MAIN participants