Mitigation Action Facility

March 2024

A climate fund to drive sectoral decarbonisation

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

668 Mio €

total funding volume (as of 2023)

It is a multi-donor climate finance programme dedicated to supporting scalable, replicable solutions in Official Development Assistance (ODA)-eligible partner countries. Germany’s Ministry for Economic Affairs and Climate Action (BMWK) is one of the main donors of the Mitigation Action Facility, providing funds through the International Climate Initiative (IKI) since the establishment of the Facility. Its focus on ambitious decarbonisation and financial leverage in and across the energy, industry and transport sectors for NDC implementation make the Mitigation Action Facility a central instrument for implementing the IKI’s strategy. The Mitigation Action Facility is one of the IKI’s tools to contribute to UNFCCC processes (e.g. Mitigation Work Programme) for the implementation of the Paris Agreement, the Breakthrough Agenda and other initiatives e.g. Just Energy Transition Partnerships (JETPs) and the Climate Club. As a multi-donor initiative, the Mitigation Action Facility is a commitment of the IKI to multilateralism and joint efforts for climate action.

In 2012, the German and United Kingdom (UK) governments jointly established the NAMA Facility, now known as the Mitigation Action Facility. Denmark and the European Union joined the programme as new donors in 2015, along with the Children’s Investment Fund Foundation (CIFF) in 2021. At the 27th Conference of Parties (COP27) in Egypt, while celebrating the 10th anniversary of the NAMA Facility, the Board announced a name change to the Mitigation Action Facility effective from 2023 and a new spotlight on decarbonising priority sectors.

Sustainable Urban Transport in Indonesia
Sustainable Urban Transport in Indonesia

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).

25 million

people benefitting from MAF projects

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. 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 will continue 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.

Low-Emission Rice in Thailand
Low-Emission Rice in Thailand

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).

Low-Carbon Coffee in Costa Rica
Low-Carbon Coffee in Costa Rica

As a valuable knowledge and learning hub, the Mitigation Action Facility expands its reach and disseminates lessons learnt generated through monitoring and evaluation. It also strives to ensure alignment with the most up-to-date findings and research devoted to the topic of climate change, in particular, with the Breakthrough Agenda Reports.

33

countries with MAF projects

To promote collaboration within the climate community, the Mitigation Action Facility supports activities of the NDC Partnership (NDCP) encouraging projects to build upon and achieve targets set in NDC Partnership Plans and other country engagement processes. More broadly, the Mitigation Action Facility contributes to the global dialogue on how to use international climate finance to catalyse transformational change towards sustainable carbon-neutral development. Within the objective of creating sustainable co-benefits, the Mitigation Action Facility, in addition to other impacts, aims at advancing gender justice in climate action.

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