Overview

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Founded Since 1850

Company Description

About the Mitigation Action Facility

The Mitigation Action Facility – an agile, grant-based multi-donor fund – drives sectoral decarbonisation.

The Mitigation Action Facility, evolved from the NAMA Facility in 2023, as a go-to platform for providing technical support and climate finance for ambitious mitigation projects with an aim of decarbonising key sectors of the economy and society.

It continues to fund ambitious climate change mitigation projects to implement Nationally Determined Contributions (NDCs) and long-term strategies (LTS) that are central to meeting the Paris Agreement goals.

The Facility primarily focuses on three priority sectors – energy, transport and industry, but remains open to cross-sectoral projects linked to one of the priority sectors. As highlighted in the IPCC’s Sixth Assessment Report, energy, transport and industry cumulatively account for more than 40 GtCO2e, or 67% of global annual GHG emissions (as of 2021). To shift the targeted sector towards a carbon-neutral development pathway, the Mitigation Action Facility selects innovative projects that can catalyse sector-wide transformational change.

Energy

Transport

Industry

These efforts can help close the gap in climate finance required to avoid the worst impacts of climate change. According to the Breakthrough Agenda Report, provision of technical and financial assistance are needed to improve the affordability, accessibility and attractiveness of clean technologies and sustainable practices.

Activities and aims of the Mitigation Action Facility

The Mitigation Action Facility continues to launch annual competitive Calls enabling partner countries, or organisations on their behalf, to apply for funding. The most ambitious and feasible climate change mitigation projects are selected for support through a comprehensive assessment process.

The grant-based funding provided by the Mitigation Action Facility is used for a combination of technical assistance measures and financial cooperation. The aim of the latter is to develop and offer market-based, sustainable and scalable financial mechanisms unlocking investments in technologies and practices that lead to a reduction of GHG emissions.

Mitigation Action Facility support, in the form of technical assistance, not only catalyses investments, but also strengthens capacities and triggers behaviour change, resulting in sector-wide shifts to improve livelihoods and create other co-benefits – environmental, social and economic. Since 2012, the portfolio has grown to 47 projects across 33 countries and a total funding volume of EUR 668 million (as of February 2023).

What we do

We provide grant-based funding for transformational climate action projects that contribute to reducing global greenhouse gas (GHG) emissions in alignment with the Breakthrough Agenda.

We help strengthen partner countries’ capacity through diverse technical and financial instruments to create replicable projects that enable innovation and upscaling.

We gather and share learnings from our portfolio and collaborate within the climate finance community to speed up NDC implementation.

Our Approach

Approach to Sectoral Decarbonisation

The Mitigation Action Facility continues to fund ambitious climate change mitigation projects to implement Nationally Determined Contributions (NDCs) and long-term strategies (LTS) that are central to meeting the Paris Agreement goals. The Facility primarily focuses on three priority sectors – energy, transport and industry, but remains open to cross-sectoral projects linked to one of the priority sectors. As highlighted in the IPCC’s Sixth Assessment Report, energy, transport and industry cumulatively account for more than 40 GtCO2e, or 67% of global annual GHG emissions (as of 2021). To shift the targeted sector towards a carbon-neutral development pathway, the Mitigation Action Facility selects innovative projects that can catalyse sector-wide transformational change.

BUILDING BLOCKS FOR CLIMATE CHANGE MITIGATION: PROJECTS HELP COUNTRIES MEET THEIR NATIONALLY DETERMINED CONTRIBUTIONS (NDCS) AND THEREBY ACHIEVE A 1.5-DEGREE CELSIUS REDUCTION, AS OUTLINED IN THE PARIS AGREEMENT.

UNFCCC Consensus on NDCs and Characteristics of Mitigation Actions

International dialogues have shown that there is an emerging consensus among partner countries, practitioners and international donor institutions on some fundamental elements of sector-wide mitigation actions, which serve to strengthen the transformational change potential of these sectors. The following are observations regarding sector-wide mitigation actions:

Country-driven and anchored in national development strategies and plans;
Strive to be nation-wide programmes, even if regional or municipal elements could form part of the overall design;
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; and
International support for sector-wide mitigation actions needs to be flexible to provide tailor-made solutions that are appropriate for the circumstances and capabilities of different countries. International funds should be used to enable the implementation of mitigation actions and leverage additional public and/or private capital investment. A strategy for self-sustained implementation at national level should be envisaged.

LEARN MORE ABOUT OUR APPROACH:

Transformational Change

Theory of Change

Monitoring, Evaluation & Learning

Glossary

Vision & Mission

The Vision of the Mitigation Action Facility is to:

- Accelerate decarbonisation to keep temperature rises to below 1.5 degrees Celsius by financing measures that shift priority sectors in a country towards a sustainable, carbon-neutral pathway.
The Mission is to:
- Finance innovative projects that remove specific barriers preventing sectoral decarbonisation and have strong potential for up-scaling and replication.
- Deliver finance to support technical assistance (e.g. policy advice, trainings, awareness raising, technology transfer) that enables capacity and policy development.
- Unlock investment opportunities by providing tailor-made climate finance to fund projects with the potential to:
  - Strengthen country capacities to deliver carbon-neutral activities and closely align these activities with the country’s NDC, LTS and other relevant climate and development plans.
  - Pilot financing models to overcome market barriers to carbon-neutral development.
  - Deploy innovative technologies and approaches, which require donor financing to support national development plans.
  - Boost participation of the private sector to deliver ambitious climate action.

Current Call

The British and German Embassies in the Philippines are inviting project proposals to the Mitigation Action Facility (formerly the Nationally Appropriate Mitigation Action Fund) to provide technical assistance and climate finance for ambitious emission reduction projects which support the decarbonisation of key sectors of the economy.

Technical assistance, in turn, is expected to catalyse investments as well as strengthen capacities and trigger behavioural change, resulting in sector-wide shifts to improve livelihoods and create other co-benefits such as socio-economic, ecological, and institutional development, including gender-responsiveness and social inclusion.

Mitigation Action Facility