Glossary

Ambition Initiative Calls

The NAMA Facility Ambition Initiative features several new characteristics that distinguish it from previous Calls (1st-7th), 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 charactheristics include: Focus on enhanced and ambitious Nationally Determined Contributions (NDCs) as an eligibility criterium; focus on NAMA Support Projects (NSPs) 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 NSPs that require a small sized pilot for novel technologies before moving into a larger scale project. This focus on novel technologies is optional for NSPs; increased upper funding volume of EUR 25 million per NSP; disbursement of additional budget for highly successful NSPs; and possibility for commercial organisations to serve as Applicants/Applicant Support Partners (ASPs) and NAMA Support Organisations (NSOs).

Applicant 

In the initial Outline Phase, national ministries or legal entities may function as Applicants, i.e. submit a NAMA Support Project (NSP) Outline to the NAMA 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 NSP. In case that the Outline is submitted by a national ministry, a legal entity should be identified as Applicant Support Partner. The legal entity (as Applicant/Applicant Support Partner) will then function as contracting partner for the Detailed Preparation Phase (DPP). In the Proposal Phase, the designated NAMA Support Organisation (NSO) functions as the Applicant. The NSO and the NSP Proposal need to have been endorsed by the national government.

Applicant Support Partner

If a national ministry submits the NAMA Support Project (NSP) 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).

Appraisal Phase

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

Beneficiaries

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

Business model

A key indicator for transformational change in a sector is the redirection of the flow of funds. In order to achieve this, consumer and/or investor decisions must be influenced towards a low-carbon 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 NAMA Support Project (NSP) needs to offer a (potentially) successful “business model” for consumers/investors including adequate financing mechanisms.

Commercial organisation

An entity taking the role as an Applicant, Applicant Support Partner or NAMA Support Organisation (NSO) in the preparation/implementation of an NAMA Support Project (NSP) as stipulated in 3.4 of the General Information Document (GID).

Delivery Organisation (DO)

From the 4th Call onwards, this term was substituted by NAMA Support Organisation (NSO).

Detailed Preparation Phase (DPP)

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

Direct mitigation potential

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 NAMA Support Project (NSP) funding during the NSP period:

  • Units must be installed / measures must be implemented during NSP period
  • Timing of mitigation effect: during NSP period, during period of 10 years after NSP end and
    over technology lifetime (but only for those units installed during NSP period)

Evaluation and Learning Exercise (ELE)

All NAMA Support Projects (NSPs) 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 NAMA Facility’s working approach to catalyse transformational change through incremental monitoring processes that allow fearless learning.

Financial ambition

One of the ambition criteria of the NAMA Facility. The financial ambition of a NAMA Support Project (NSP) is assessed as its ability to leverage additional private and/or public funds for the implementation of the Nationally Appropriate Mitigation Action (NAMA) and/or for financing low-carbon investments related to the NAMA. The financial potential is also reflected in two of the mandatory core indicators of the NAMA Facility.

Financial leverage

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

Financial mechanism

One of the ambition criteria of the NAMA Facility. The financial ambition of a NAMA Support Project (NSP) is assessed as its ability to leverage additional private and/or public funds for the implementation of the Nationally Appropriate Mitigation Action (NAMA) and/or for financing low-carbon investments related to the NAMA. The financial potential is also reflected in two of the mandatory core indicators of the NAMA Facility.

Gantt chart

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 NAMA Support Project (NSP).

General Information Document (GID)

Provides general information on the NAMA Facility, its objectives and functioning as well as specific information on the selection process of NAMA Support Projects for funding under the NAMA Facility. The purpose of the document is to assist national governments of partner countries and other potential Applicants in preparing NAMA Support Project (NSP) Outlines for submission to the NAMA Facility.

Green technology

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

Impacts (long-term results)

Long-term direct and indirect effects of the NAMA Support Project (NSP) that reflect the ambition criteria: potential for transformational change including sustainable development co-benefits, financial ambition and mitigation ambition.

Implementation

The implementation of a NAMA Support Project (NSP) refers to the stage when the project concept, measures and activities are sufficiently developed and prepared to get started on the ground.

Implementing Partners (IPs)

Implementing partners 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 NAMA Support Project (NSP). The strong involvement and ownership of the national government and implementing partners is considered to be essential for the success of the NSP.

Indicators

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 NAMA Support Project (NSP). The NAMA 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 NAMA Facility M&E framework for further information.

Indirect mitigation potential

Indirect greenhouse gas (GHG) emissions reduction achieved by the NAMA Support Project (NSP) 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 NSP period
  • Results of financial cooperation (FC) component but only for units installed / measures implemented after NSP end, as result of the continuation of the financial mechanism

Timing includes:

  • Technical cooperation: during NSP period and during period of 10 years after NSP end, (during lifetime: optional)
  • Financial cooperation: for units installed after NSP end for period 10 years after NSP end, (during lifetime: optional)

Logframe

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 NAMA Support Project (NSP). 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 NSP’s Monitoring & Evaluation (M&E) concept.

Mitigation

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.

Mitigation ambition / potential

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

NAMA Facility

Jointly established by the governaments of Germany and the United Kingdom and co-funded by the Danish government and the European Union. 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 Nationally Appropriate Mitigation Actions (NAMAs) within the global mitigation architecture. More information about the governance of the NAMA Facility.

NAMA Facility Board

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.

NAMA Facility Grant Agent (NFGA)

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).

NAMA Support Organisations (NSOs) 

NSOs are responsible and accountable for the proper delivery of funds and/or services, the financial and administrative management of the NAMA Support Project (NSP), 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 can submit Outlines and Proposals for NSPs to the NAMA Facility.

NAMA Support Projects (NSPs)

Projects funded by the NAMA Facility that will 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.

Nationally appropriate mitigation actions (NAMAs)

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).

Nationally Determined Contributions (NDCs)

NDCs are at the heart of the Paris Agreement and the achievement of these long-term goals. 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).

Outcome

The overarching direct project goal and direct effects that can be causally attributed to the NAMA Support Project (NSP) interventions and reflects the utilisation of the outputs by the target group.

Output

Products, goods, services and regulations/ standards that have arisen as a result of the NAMA Support Project (NSP) activities.

Partner ministry

National (sector) ministries are one of the potential implementing partners of a project funded by the NAMA Facility. The strong involvement and ownership of the national government and implementing partners is considered to be essential for the success of the NSP.

Partners

Beyond just the applicants of project funding, projects are implemented by a variety of organisations and agencies, ranging from local to international. These include private sector organisations (e.g. development banks) and international organisations. 

Readiness

Readiness refers to the degree of maturity or development of a NAMA Support Project (NSP). Activities to prepare a project are generally referred to as readiness activities. In the sense of the NAMA Facility, an NSP 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.

Stakeholders

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

Sustainable development co-benefits

Contributions to sustainable socio-economic, ecological and institutional development associated with a NAMA Support Project (NSP) 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 and thus can have an important impact on the long-term sustainability of an NSP.

Technical Support Unit (TSU)

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

Transformational change potential

Change is considered transformational if it is significant, abrupt (quicker than the business-as-usual) and permanent/irreversible in bringing the country on a low-carbon development trajectory in line with the 2-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 low-carbon pathway.

NAMA Facility

Technical Support Unit
Köthener Straße 2-3
D-10963 Berlin
Germany

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