According to Federal Environment Minister Peter Altmaier and Edward Davey, Secretary of State for Energy and Climate Change in the UK, Germany and the UK will jointly provide about €70 million of funding.
Minister Altmaier says, “With the today’s launched NAMA Facility, we stress our commitment to seriously tackle global warming with innovative financing instruments. We will prove that close cooperation is key for the implementation of NAMAs.”
Minister Davey calls climate change a global threat and notes, “With every passing year, the nature and the extent of that threat grows clearer. Climate finance is fundamental to building resilience and capacity for countries to mitigate and adapt to climate change. I’m delighted to announce today a joint partnership with the German Government to help support those developing countries that are taking ambitious action to close the gap to two degrees centigrade. This will enable us to work in partnership with developing countries to deliver more results in more places.”
According to the DECC, the NAMA Facility is designed to support developing countries that want to implement transformational NAMAs. “Transformational NAMAs are projects, policies, or program that shift a whole technology or sector in a country onto a low-carbon development trajectory. Developing countries are preparing NAMAs as part of their national strategies. However, it is difficult to access finance through existing commercial and public channels to finance implementation, particularly for the most innovative NAMAs.”
The Facility is mandated to support investments across a range of countries and sectors with grant funding as well as loan finance.
Germany’s funding of €40 million is coming from the Special Energy and Climate Fund. The UK Government is supporting the Facility with £25 million from the International Climate Fund (ICF).