Financing Nationally Appropriate Mitigation Actions (NAMAs): Leveraging private investment

The report examines the financing of Nationally Appropriate Mitigation Actions (NAMAs), emphasizing the need to move beyond reliance on international public funding toward leveraging private capital. It defines 'bankability' as the attractiveness of a project to investors based on its revenue-generating potential and provides a framework for designing such projects. Through eight case studies from countries including Morocco, Tunisia, and the Philippines, the document illustrates the roles of public-private partnerships (PPPs), the importance of implementing bodies (such as Special Purpose Vehicles), and the necessity of risk mitigation tools like partial credit guarantees and power purchase agreements. The report concludes with recommendations for NAMA developers to engage the private sector early in the design process and for international stakeholders to disseminate best practices in private funding.

• There is a significant gap between the estimated funding needs for mitigation in developing countries and the pledged public finance; while OECD countries pledged US$100 billion per year by 2020, mitigation efforts in developing countries may require up to US$300 billion per year by 2020.
• Private sector engagement in NAMAs remains low; as of May 2014, only 36 per cent of the 45 NAMAs listed in the UNFCCC registry acknowledged plans to work with the private sector.
• Public funding can be used strategically to leverage private capital, with leverage factors for non-concessional loans ranging from three to six, and eight to 10 or more for concessional loans and grants.
• Bankable NAMAs require a comprehensive approach to stakeholders, including the use of dedicated implementing bodies—such as Special Purpose Vehicles (SPVs) or Energy Service Companies (ESCOs)—to manage financial flows and limit liability.
• Government intervention is critical for mitigating risks and creating markets, often by addressing market imperfections through policies like feed-in tariffs, subsidies, and sovereign credit guarantees.
• Effective risk mitigation for private investors often involves specific financial instruments, including partial credit guarantees (PCGs), partial risk guarantees, and power purchase agreements (PPAs) to stabilize revenue.
• The report identifies a strong correlation between the sector and private investment appetite, noting that energy efficiency, renewable energy, and waste management generally attract more private intervention than agriculture and forestry.

APA

Khachatryan, A., Dion, J., Sawyer, D., Harris, M., & Murphy, D. (2014). Financing Nationally Appropriate Mitigation Actions (NAMAs): Leveraging private investment. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/namas_leveraging_private_investment.pdf

Chicago

Khachatryan, Avet, Jason Dion, Dave Sawyer, Melissa Harris, and Deborah Murphy. Financing Nationally Appropriate Mitigation Actions (NAMAs): Leveraging private investment. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/namas_leveraging_private_investment.pdf.

Wikipedia

{{cite report |last1=Khachatryan |first1=Avet |last2=Dion |first2=Jason |last3=Sawyer |first3=Dave |last4=Harris |first4=Melissa |last5=Murphy |first5=Deborah |title=Financing Nationally Appropriate Mitigation Actions (NAMAs): Leveraging private investment |publisher=International Institute for Sustainable Development |date=June 2014 |url=https://www.iisd.org/system/files/publications/namas_leveraging_private_investment.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{khachatryan2014financing, author = {Khachatryan, Avet and Dion, Jason and Sawyer, Dave and Harris, Melissa and Murphy, Deborah}, title = {{Financing Nationally Appropriate Mitigation Actions (NAMAs): Leveraging private investment}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jun, url = {https://www.iisd.org/system/files/publications/namas_leveraging_private_investment.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }