Financing Nationally Appropriate Mitigation Actions
This Primer is devoted to the financing of NAMAs and presents essential principles and models of financing. It highlights challenges in the financing of the policies and programmes that make up the NAMAs, as well as possible ways to overcome these challenges. Most importantly, it does not concur with the notion that the best way to cover any extra costs of reducing emissions is a grant.
The Primer focuses on financing the NAMA, not financing its preparation. Technical assistance in this regard has been omitted, partly because it is already happening and rapidly increasing (with the UNEP DTU Partnership, formerly the UNEP Risø Centre, as one of the main players in implementation), and partly because there is not much financial engineering in the provision of a grant. Instead, the Primer focuses on the instruments available for public and private economic interaction. It therefore has an implicit focus on leveraging, as this is currently the preferred term with which to illustrate this public-private interaction. Ultimately, however, it will be a matter of engineering the financing model as economically efficiently as possible within the confines of national priorities, realizing that, no matter how efficiently structured it is, financial engineering will not make the costs disappear. At best it may bolster the will to accommodate them.