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FACTSHEET 2 Nationally Appropriate Mitigation Actions (NAMAs) Developer The UN Framework Convention on Climate Change (UNFCC) reviews and accepts methodologies submitted by external entities. The concept was first named in the Bali Action Plan in December 2007, and it was adopted at the end of the high level UN Climate Change Meeting. Issues were clarified in Copenhagen Accord in 2009. Location http://unfccc.int/2860.php Nationally Appropriate Mitigation Actions (NAMAs) are voluntary country engagement proposals to the United Nations Framework Convention on Climate Change (UNFCCC). The concept of NAMAs emerged as part of the Bali Road Map that was agreed at the United Nations Climate Change Conference in Bali in December 2007. They are a set of government prioritized actions aimed at reducing or limiting GHG emissions. NAMAs are expected to be the main vehicle for mitigation action in developing countries under a future climate agreement, and can be policies, programs or projects implemented at national, regional, or local levels. NAMAs were created to: Ensure that developing countries can benefit from emission reduction options that are still available in their countries. Provide a pathway for the climate change abatement in all nations. Support actions in more than one sector. NAMA agreements are founded by participating countries and contained within Annex I and Non-Annex I documents where information on the related context, conditions and considerations associated with these mitigation actions are included, as well as the financial support required for their preparation and implementation. NAMAs adjustment, rules, and feasibility studies are still in process. Methodology NAMA’s approach supports an enhanced range of activities from an increased number of participants around the world. This approach encompasses measures and policies to reduce GHGs in a variety of sectors. When calculating emission reductions, the most important part is to estimate emissions from business-as-usual (BAU). BAU can be calculated based on: CDM methodology (see Section 1) IPCC inventory guidelines New methodologies developed under NAMA Emissions Reductions = BAU (Activity estimated * CO2 EF) –Project (Activity Actual * CO2 EF) There are seven steps for NAMA plans: 1. Review related policies/plans and their progress in the NAMA sector. Examine and understand national policies, plan and target elements in the NAMAs based on existing information, and understand the methodology for the NAMA project. 2. Set reference scenarios in the NAMA sector Identify barriers based on existing projects, set reference scenarios in the NAMA sector, and consider countermeasures identified. 3. Set NAMA targets in the NAMA sector Identify main GHG emission source, select GHG mitigation measure, estimate GHG emission reduction potential, and set NAMA target. 4. Develop priority NAMA projects in the NAMA sector Define the methodology to use for priority NAMA projects, review priority NAMA projects over the country, and the priority should be selected. 5. Establish MRV methodologies for NAMA plans 6. Identify possible financial resources for implementing NAMA plans 7. Consider possible schedule for implementing NAMA plans Inputs After its implementation, several countries have been involved, and the most recently study (the feasibility of the case study as an activity within NAMA) is carried out in Vientiane, the capital city of Laos. Based on Lao’s study case “key for MRV is verification on Data” Table 8.1 NAMAS Inputs – Lao’s study case Monitoring Subject Input values for traffic demand model Implementation Road construction Distance of vehicle (trip) Share of vehicle Average speed Passenger/public vehicle Emission factor for vehicle Source: (Koakutsu, 2011) Pollutants/Gases Analyzed CO2, CH4, N2O Evaluation Social economic data Population – social economic data – vehicle per household Traffic Volume data Distance, share of vehicle, average speed Emission factor data Emission factor by vehicle in Lao PDR “Rules and methodologies to operate NAMA projects have not been established, and also credits rules could build on existing CDM rules and criteria.” (Chung, 2011) 1 According to an overview study done for GIZ, the differences between CDM and NAMAs are summarized in the next table (Table A). Table 8.2 Differences between CDM and NAMAs - Evaluation Definition Type of actions Initiator of activity Return on investment Preconditions 1 CDM Mechanism of the Kyoto Protocol (Art. 12). The CDM allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emissionreduction project in developing countries Projects (e.g.BRT) and programmes of activities (PoA) Private sector. Companies and designated operational entities (DOEs) identify and implement projects. Certificates (CERs). Certified emission reductions are issued by the CDM executive Board based on verification report. CERs can be traded on carbon markets. Reductions in emissions must be additional to any that would occur in the NAMA Commitment under the Convention. All parties (…) shall formulate, implement, publish and regularly update national (…) programmes containing measures to mitigate climate change (…) (UNFCCC Art. 4.1b). Internationally supported NAMAs will be measured, reported and verified (MRV ed) domestically and will be subject to international measurement, reporting and verification (decision 1/CP.16 (para 61). Policies, programmes and projects (e.g. sustainable transport policy) Government. National governments, possibly in collaboration with regional or local authorities, initiate activities. Financial and technical support. Developed country Parties shall provide enhanced financial, technological and capacity building support for the preparation and implementation of NAMAs of developing country Parties and for enhanced reporting by these Parties (para 52 of decision 1/CP.16) NAMA in the context of sustainable development, aimed at achieving a deviation Market-based Post-2012 Climate Regime: Carbon Credit for NAMAs. Available at: http://unfccc.int/files/meetings/ad_hoc_working_groups/lca/text/plain/non-paper_from_korea.txt Requirement absence of the certified project activity (KP Art. 12.5 c) CDM to assist developing country Parties in achieving sustainable development (KP Art. 12.2) Project supports sustainable development (proven by governmental letter) Financing Upfront financing through private sector. Certificates are issued ex-post based on regular verification reports. CERs can be sold on a carbon market Administrative requirements Strong rulebook (Marrakech Accords) GHG reduction potential 2005-2011 500 Mt CO2eq in emissions relative to ‘business as usual’ emissions in 2020 (para 48 of decision 1/CP.16) Action is nationally appropriate (proven by governmental registration under the UNFCCC) Domestic resources and/or international support (e.g. through bi-lateral agreements, development banks or multilateral funds, incl. Green Climate fund) for the preparation and implementation of NAMAs. General guidelines yet to be developed under UNFCCC (paras 61 and 62of decision 1/CP16) 2012-2020 (15-30% against BAU) More than 40.000 Mt CO2eq Source: (GIZ, 2011) Precedent NAMA proposals of support and adherence from 43 countries have been submitted to the UNFCCC, and 18 countries have showed intentions to engage in actions in the transport sector. These are available at: 2 http://unfccc.int/meetings/cop_15/copenhagen_accord/items/5265.php . This document, as well as the related context, conditions and considerations associated with these mitigation actions, including with regard to the support required for their preparation and implementation The UN Framework Convention on Climate Change document, FCCC/AWGLCA/2011/INF.1, presents the information communicated by Parties not included in Annex I to the Convention on nationally appropriate mitigation actions that these Parties intend to implement. Additional Information A feasibility study on NAMA was undertaken within the Transport Sector of Lao PDR. The study investigated the GHG emissions reduction effect and MRV (measurement, reporting 2 Appendix II - Nationally appropriate mitigation actions of developing country Parties and verification) management. The expectation for NAMA is high and “it is hoped that barriers in CDM for the transport sector will be clarified and a new framework is built on the lessons learnt from such issues.” 3 References Sutter, C., Schibli, R., 2011. If you want a Nama tomorrow you need a PoA today. Trading Carbon, Thomson Reuters. Pag. 36-37 GEC, Global Environmental Centre Foundation & Ministry of the Environment, Japan. 2011. Japan’s Initiative toward Establishment of New Mechanisms. Lessons Learnt from Case Studies 2010. Pag. 28 (8). Accessed on July 26, 2011 at: http://gec.jp/gec/en/Activities/fs_newmex/newmexcasestudies2010lessonlearnt.pdf Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., 2011. FS Title: “Feasibility Study on NAMA in the Transport Sector of Lao PDR”. Available at: http://gec.jp/gec/en/Activities/fs_newmex/2010/2010newmex02MUMSS_eLao s_rep.pdf IGES, Institute for Global Environmental Strategies - Koakutsu, K., July 4, 2011. NAMA and MRV: in Market Mechanism. New Market Mechanism and MRV Workshop. Accesed on July 27, 2011 at: http://enviroscope.iges.or.jp/modules/envirolib/upload/3297/attach/110704_ nama%20and%20mrv_koakutsu.pdf UNFCCC and United Nations, March 18, 2011. Compilation of information on nationally appropriate mitigation actions to be implemented by Parties not included in Annex I to the Convention (FCCC/AWGLCA/2011/INF.1). He, J. Nationally Appropriate Mitigation Actions (NAMAs) by Developing Countries. Tsinghua University. Dalkmann, H., and Binsted, A., 2010. Copenhagen Accord NAMA submissions. Implication for Transport Sector. Post 2012 Agreement, website: Bridging the gap, Pathway for transport in the post 2012 process. Accessed on July 28, 2011 at: http://www.sutp.org/documents/NAMA-SUB-Final-0210.pdf GIZ & Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.CDM and NAMAs – Overview and Differences. Transport and Mobility. Accessed on July 28, 2011 at: http://www.transport2012.org/bridging/ressources/documents/2/1502,Facts heet_NAMA_CDM.pdf Binsted, A., 2011. NAMA Submissions to the UNFCCC: An overview from transport perspective. Post 2012 Agreement, website: Bridging the gap, Pathway for transport in the post 2012 process. Accessed on July 28, 2011 at: http://www.transport2012.org/bridging/ressources/files/1/1493,NAMA_prop osals_May_2011.pdf 3 Lao’s transport NAMA Feasibility Study introduced the Adjust/Verification system for the BAU during monitoring (Theory & Reality)