When launched in 2012, the NAMA Facility was instrumental in establishing the concept of ‘transformational change’. The concept has gained further momentum with the operationalisation of the Green Climate Fund and is equally applied in the Paris Agreement. The NAMA Facility continues its focus on catalysing transformational change towards sustainable carbon-neutral development, supporting the Paris Agreement’s objective to limit the increase in global average temperature ‘to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels’.
The NAMA Facility emphasises how a mix of different types of interventions – in particular regulatory and financial ones – may trigger more climate friendly behaviour and consumption and production methods in developing countries. The NAMA Facility support enables public and private actors in emerging economies and developing countries to address financial barriers to more climate friendly behaviour, consumption and the use of carbon-neutral technologies. The portfolio of NSPs demonstrates that across the various sectors, carbon-neutral technologies can become economically viable. Thus, they encourage and facilitate further investments in broader NAMAs (see also factsheet Potential for Transformational Change in the Knowledge & Learning Hub).
The Theory of Change (ToC) seeks to illustrate the transformational potential by depicting the pathway of changes that shall be initiated through the NAMA Facility support. These desired changes are primarily triggered by the individual NSPs. NSPs shall demonstrate how climate finance will effectively contribute to a transformational change. Given the NAMA Facility’s objective of supporting NAMA implementation, the focus of NSPs is on financial support mechanisms that serve to mobilise capital investments in and operation of carbon-neutral alternatives. Technical support and institutional and regulatory capacity development in partner countries may be provided during NSP implementation to facilitate this objective. The ToC is divided into impact, outcome, outputs, activities and inputs, as shown below:
Impact
Transition towards carbon-neutral societies in line with the 1.5 degree C objective is supported by NAMA Support Projects (NSPs) in their targeted countries
Increased mitigation ambition
Financing of mitigation actions improved
National ownership strengthened
Behavioural change catalysed
Outcome
The NAMA Facility demonstrates that climate finance can effectively catalyse transformational change in countries – including implementation of Nationally Determined Contributions (NDCs) – reduce greenhouse gas emissions and enhance carbon-neutral development
Outputs
Output 1
The NAMA Facility is effective and efficient in catalysing transformational mitigation action to implement Nationally Determined Contributions (NDCs)
Output 2
Additional public and private finance supported to drive carbon-neutral development
Output 3
The NAMA Facility disseminates lessons from transformational mitigation action, contributing to effective learning environment
Output 4
National and local stakeholders have enhanced their capacities and policy environment to implement transformational mitigation action
Output 5
Implemented NAMA Support Projects (NSPs) produce sustainable and transformative co-benefits
Activities
Programme activities
– Pipeline development and steering – Coordination and engagement with the NAMA Facility Board – Support and guidance to NAMA Support Projects – Fostering strategic partnerships
Cross-cutting activities
– Knowledge creation and sharing – Communication of lessons learned – Learning-oriented monitoring, reporting, and evaluation – Facilitation of learning, replication, and exchange with other programmes
NAMA Support Project activities
Implementation activities in the targeted sector, such as: – Piloting innovative financing models to overcome market barriers to carbon-neutral development – Deploying innovative technologies and approaches – Developing national capacities – Engaging with the public and private sector – Cooperating with similar projects
