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NAMA-Status-Report-may-2017 (1).pdf (2.1 MiB)

This mid-year update report starts with an overview of NAMAs by numbers in Chapter 1, as in previous NAMA Status Reports. The chapter shows that the total number of NAMAs submitted to the UNFCCC Registry continues to increase over time, and the share of NAMAs that have received financial support remains constant but relatively low since the last update. The NAMA Database presents similar trends in terms of the overall increase in NAMAs. Since the last update there are 26 new NAMAs under development and one additional NAMA under implementation. This is not surprising considering the overall low number of NAMAs under implementation: only 20 out of 229.

The NAMAs listed in the database cover 65 countries. Over the past year, no significant change has been observed in the geographical distribution of the total number of NAMAs, both those under development and implementation. NAMAs under implementation are mostly located in middle-income countries. Similarly, the sectoral distribution of NAMAs has not changed much, with NAMAs remaining unevenly spread across the major economic sectors. Energy remains the leading sector when it comes to NAMAs under implementation.

Chapter 2 of the report focuses on approaches to involving the private sector in the development of NAMAs and is based around an analysis of NAMA Support Projects (NSP), which are projects funded by the NAMA Facility that provide support to governments for the implementation of their NAMAs through the provision of finance and technical cooperation instruments. Understanding that the private sector is heterogeneous, consisting of different types of actors playing varying roles, and having diverse economic, social, political, and environmental interests, is important if we want to successfully involve the right actors at the right time in development and delivery of NAMAs.

The chapter presents observations from 15 interviews with Delivery Organisations of NSPs, and 3 with entities from the private sector who have been involved in NAMA development. Observations from the interviews show that technology or service providers and commercial banks have been involved most frequently in the development of NSPs.

 For commercial banks as well as for technology or service providers, taking advantage of new market opportunities and diversifying their lending portfolios and business opportunities are mentioned as the main motivations for becoming involved. The chapter also provides some observations from interviewees on what went well and what didn’t go so well, together with lessons learned for NAMA developers in the future on how to approach involvement of the private sector in NAMA development.

Chapter 3 explores the topic of financing mechanisms to involve the private sector in NAMAs. The chapter begins with an explanation of what is meant by involving the private sector in NAMAs. It suggests that this is not a question of shifting responsibilities for a particular development to the private sector, but rather of deciding the best possible mode of collaboration between the public sector as governing body and regulator and the private sector as investor and operator, exploiting the private sector's financing capacity and capability. While there are many instruments available for the public sector to promote or ensure participation of the private sector, some are more efficient than others. The chapter also provides a typology of available finance instruments and their characteristics, and presents an example of a NAMA in which some of these mechanisms have been applied.

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