NAMA Facility

Document Summary: 

Organizational profile: The NAMA Facility was jointly established by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the UK Department for Business, Energy and Industrial Strategy (BEIS) with the objective to provide financial support to developing countries and emerging economies that show leadership on tackling climate change and want to implement transformational country-led NAMAs within the global mitigation architecture in the short- and mid-term. The Danish Ministry of Climate, Energy and Utilities (KEFM) and Ministry of Foreign Affairs (MFA) and the European Commission joined the NAMA Facility as Donors in 2015.

The NAMA Facility provides financial support for implementing national climate strategies and Nationally Determined Contributions (NDCs) via mitigation actions such as Nationally Appropriate Mitigation Actions (NAMAs) in relevant sectors thereby realising sustainable transformational change towards a carbon-neutral pathway. This is done through funding NAMA Support Projects (NSPs) as the most ambitious parts of these mitigation actions that have the potential to catalyse transformational change towards carbon-neutral development in the overall sector

Financing Instrument: Guarantee schemes for commercial loans, Soft loan programmes, Grants

Project scale: Funding volume requested from the NAMA Facility for implementation is in the range of €5-20 million excluding DPP funding. The average funding support requested by NSPs from the previous Calls for their DPP was approximately €250,000.

Recipient countries/regions/country groups: Global

Recipient categories: National governments of developing countries and countries with emerging economies as well as other qualified applicants are invited to submit NAMA Support Project Outlines.

Eligibility Criteria:

- NAMAs should be country-driven and anchored in national development strategies and plans.

- NAMAs should strive to be sector-wide programmes that are national in scope, even if regional or municipal elements could form part of the overall design.

- NAMAs should consist of a combination of policies and financial mechanisms. Policies should serve to create an enabling environment and channel financial flows into low-carbon investments. Financial mechanisms should serve to address potential barriers for investment and leverage potential public support for mitigation activities. 

- International support for NAMAs needs to be flexible in order to provide tailor-made solutions that are appropriate for the circumstances and capabilities of different countries.

Application guidelines: For identifying the most ambitious NAMA Support Projects (NSPs), the NAMA Facility conducts open competitive calls. In order to identify the most ambitious and feasible NSPs, a competitive two-phase selection process applies.

Phase 1 (Outline Phase)- Selection is among the submitted NSP Outlines that undergo a thorough desktop, and some an onsite, assessment by an independent external evaluator and the NAMA Facility’s Technical Support Unit (TSU). NSPs that successfully pass the assessment are recommended to the NAMA Facility Board for approval to receive funding for the Detailed Preparation Phase (DPP).

Phase 2 (Detailed Preparation Phase/Proposal Phase)- Selection is based on the fully fledged NSP Proposal, which is the result of the Detailed Preparation Phase (DPP). NSP Proposals undergo a detailed assessment; NSP Proposals successfully passing the assessment are recommended to the NAMA Facility Board.

In January 2020, the NAMA Facility announced a new funding commitment of up to EUR 60 million from Germany and the United Kingdom in support of the 7th Call for the submission of NSP Outlines. NSP Outline submissions to the 7th Call officially opened on 1 April 2020 and will run until 3pm CEST on 30 September 2020 (extended timeline). All NSP Outlines and Annexes must be submitted via email.

Publication Date
Thursday, 01 April 2021
Applicable location
Climate change
Financing opportunities