Background

Finance has become increasingly important to international negotiations on climate change. It is widely accepted that developed countries must mobilise large scale finance flows, in the order of USD 100 billion per annum by 2020, for mitigation and adaptation. This requires a significant scaling up from existing commitments.

In a statement to the Nordic Council of Ministers meeting in Reykjavik in November 2010, the NOAK group stated that:

• Nordic governments want to be at the forefront of effective climate mitigation action. Whereas their combined emissions are small, effective contributions have been taken to take on a leadership role when it comes to pushing for progress and effective measures such as flexible mechanisms.

• NEFCO has been a central instrument for concrete action for mitigation actions while the Nordic Council of Ministers serves as a common platform for facilitation of progress in international climate negotiations.

• In order to speed up the current process and in accordance with the Bali Action Plan and the Copenhagen Accord, the Nordic countries will launch a joint initiative to pave the way for cost-efficient and effective implementation of scaled up nationally appropriate mitigating actions.

• The first step was a feasibility study on an ambitious and additional scaled up mitigation programme in 1-2 representative developing countries. The intention is to provide early action on the ground and, by way of example, to foster progress in climate negotiations.

• The support delivered in the initiative can be part of the new and additional fast start finance of the Nordic countries.

• It is the hope of the Nordic ministers that this initiative and its results will serve as a useful input to a learning by doing process and as encouragement to others to take similar action.

Following up on earlier work undertaken by NEFCO on Scaled Up Approaches Mitigation Programmes, a decision was taken by the NOAK group in Torshavn, Faroe Islands in September 2010 to merge its activities in this regard with NEFCO’s activity. The result is joint Nordic NOAK-NEFCO Partnership Initiative.

NEFCO’s role is as part of the Steering Group of the Initiative and additionally, it administers a DKK 1 million Trust Fund for the NOAK- NEFCO Partnership Initiative, to cover the study and associated costs.

A working group for the Initiative was constituted, and held its first meeting in Stockholm on October 2010. The group’s mission is to start a pilot initiative to try out up-scaled support for national appropriate mitigation actions approaches.

The first step is a NOAK-NEFCO funded feasibility study with the overall aim to prepare the practical ground for a pilot-project. This feasibility study will be conducted in co-operation with a host country (or two host countries) looking at a specific sector or subsectors in that country/ies. Following extensive consultations, including several meetings held at COP 16 in Mexico, the countries selected for this pilot project will be Peru and Viet Nam. 

The NAMA readiness programme in Peru

In Peru, the solid waste management sector has been chosen. Working together with
the Ministry of Environment in Lima, a two year technical assistance programme will be
implemented to improve Peru’s readiness to benefit from international climate financing
in this sector. The funding for the EUR 2.2 million project will come from the NEFCO
administered Nordic Environmental Development Fund (NMF), bilateral funds from the
Nordic countries and from Peru. The project is scheduled to commence in mid 2012.
In Viet Nam, the NPI will work with the Ministry of Construction which oversees the
cement production sector in Viet Nam.

The proposed project will explore and address gaps in data availability and quality regarding sectoral GHG emissions, technical and institutional capacity as well as potential barriers to implementing scaling up greenhouse gas mitigation actions in the cement sector in Viet Nam. Special emphasis will be given to exploring opportunities to utilise new forms of international climate finance, including possible new market-based mechanisms in Viet Nam’s cement and constructions sector, implying a results-based approach for provision of future support. Attention will also be paid to involving the relevant stakeholders and mapping out the cement sector's viewpoint on the functioning of the overall framework.

The NPI activity in Viet Nam will have a budget of EUR 1.6 million and be financed
by the Nordic Development Fund, in partnership with the Asian Development Bank.
NEFCO will participate as part of the steering committee. 

The NPI was launched at a side event in Durban, South Africa in December 2011 with ministers from four Nordic countries and the host countries Peru and Viet Nam.

Footnote: The Nordic Partnership Initiative was initially called the NOAK-NEFCO Initiative, but the name was changed into The Nordic Partnership Initiative in connection to a ministerial meeting at the Nordic Council's Session in Copenhagen 2 November 2011.

For further information, please contact:

Harri Laurikka, The Finnish Ministry of the Environment, harri.laurikka(at)ymparisto.fi

Outi Leskelä, The Finnish Ministry of the Environment, outi.leskela(at)ymparisto.fi

Ash Sharma, NEFCO, ash.sharma(at)nefco.fi

Read about the Nordic Partnership Initiative's visit to Peru in February 2012

Download the feasibility study on up-scaling mitigation action in Peru and Vietnam

Read the report "Scoping study for innovative climate finance facilities for testing scaled-up mitigation programmes"

Read Vice President Ash Sharma's article on nationally appropriate mitigation actions, published by Carbon Finance in June 2011