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Nordic Partnership Initiative on Up-scaled Mitigation Action

In order to support climate change mitigation efforts in developing countries, the Nordic Countries (Denmark, Finland, Iceland, Norway, and Sweden) established the Nordic Partnership Initiative on Up-Scaled Mitigation Action (NPI), along with Peru and Vietnam in December 2011. Two Pilot Programmes of the NPI are currently under implementation.

The aim of the Initiative is to demonstrate in practice how international climate finance, including the use of possible new market mechanisms, can be matched with sectoral level greenhouse gas emission reductions in developing countries. This demonstration is started through two Pilot Programmes, located in Peru and Vietnam, using a bottom-up approach. During the Pilot Programmes concrete financeable Nationally Appropriate Mitigation Actions (NAMAs) are developed. NAMAs are large-scale host country driven emission reduction actions that are supported and enabled by international and domestic financing, technology, and capacity building. NAMAs can be policies, programmes, projects, goals or strategies of the host country to reduce greenhouse gas emissions while contributing to sustainable development.

NPI also aims to provide lessons learned from early activities to the international climate negotiations and encourage other Parties to take similar actions. The principles of matching NAMAs with developed country support are still under negotiation; especially the concept of crediting of the emission reductions generated by NAMAs under a market-based mechanism. However, the NPI is currently looking into different options for piloting the crediting of these actions, or providing other results-based finance for NAMAs.

The Nordic Partnership Initiative was launched at COP17 in Durban in December 2011 and the two Pilot Programmes, in the waste sector in Peru and the cement sector in Vietnam, are currently in implementation.

Information on the Pilot Programmes

Waste accounts for more emissions globally than the entire transport sector. The NPI programme in Peru will focus on exploring possibilities to lower greenhouse gas emissions in the waste sector. It will look at the capacity of existing waste management, options for decreasing emissions as well as relevant technical, financial and other barriers to more sustainable waste management. It will also look at the possibility to increase private sector engagement.

The implementation of the Peru municipal waste sector Pilot Programme has started in August 2013 and will continue until June 2015. The budget of the NPI Pilot Programme in Peru is €2.3 million, and it is financed by NEFCO and the Nordic governments. The implementing partner is the Ministry of Environment of Peru (MINAM).

The NPI programme in Vietnam will focus on the highly energy intensive cement production sector, which globally represents around 5 % of all carbon dioxide emissions. The aim of the programme is to find ways for Vietnam to make better use of international climate finance by exploring and addressing ways to decrease greenhouse gas emissions in the cement sector.

The implementation of the Vietnam cement sector pilot project has started in March 2014, and will continue until March 2016. The budget of the Vietnam Pilot Programme in the cement sector is €1.6 million, and it is financed by NDF and the government of Vietnam. The implementing partner in the programme is the Ministry of Construction (MoC).

It is expected that at the end of the implementation of the Pilot Programmes the monitoring, reporting and verification (MRV) systems of the greenhouse gas emissions in the selected sectors are in place, and the programmes are ready to receive international funding e.g. through carbon finance or other climate finance.

Background

The concept of Nationally Appropriate Mitigation Actions (NAMAs) was first established in the Bali Action Plan in 2007, and developing countries submitted first suggestions for NAMAs as part of the Copenhagen Accord in 2009. In the Cancun Agreements of 2010 developed countries agreed to support developing countries in the task of reaching the agreed target of limiting global warming to 2°C, through capacity building, technology transfer and financing.

In autumn 2010 the Nordic Working Group for Global Climate Negotiations (NOAK) and the Nordic Environment Finance Corporation (NEFCO) decided to start preparations for the NPI, in order to scale up the emission reduction efforts supported by the Nordic countries. During 2011 the Nordic Development Fund (NDF) joined the Initiative.

A Feasibility Study was conducted in 2010-2011 in consultation with the potential host countries Peru and Vietnam in order to identify potential sectors where NAMA Pilot Programmes could be started. During the study, the municipal waste sector in Peru and the cement sector in Vietnam were selected as the most potential pilot sectors.


Partners

The Nordic Council of Ministers – the formal body of co-operation between the Nordic governments and among the oldest and most extensive regional co-operations in the world.

The Nordic working group for global climate negotiations (NOAK) - whose aim is to contribute to the adoption of a global climate agreement with binding and ambitious goals.

Nordic Environment Financing Corporation (NEFCO) - Provides loans and makes capital investments in the Central and Eastern European region. NEFCO participates in the Nordic Partnership Initiative in Peru through a special provision from the Nordic Environment Ministers.

Nordic Development Fund (NDF) – is the joint development finance institution of the five Nordic countries. The objective of NDF’s operations is to facilitate climate change investments in low-income countries.

Contacts for more information

Sara Almqvist (NOAK) - sara.almqvist@naturvardsverket.se / +46 10 698 1551

Olle Björk (NOAK) - olle.bjork@regeringskansliet.se / +46 8 405 1997

Martina Jägerhorn (NDF) - martina.jagerhorn@ndf.fi / +358 10 618 002

Ash Sharma (NEFCO) - ash.sharma@nefco.fi / +358 40 08 11 327

Starts
Dec 08, 2011

Contact

Anna Maria Hill Mikkelsen
Phone: +45 33 96 02 81

Anna Gran
Phone: +45 72 54 4257
Email: