Deadline: 29 February 24

The Mitigation Action Mechanism has announced a call for proposals to provide funding for the most ambitious and viable climate change mitigation projects.

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In 2012, the governments of Germany and from the United Kingdom (UK) jointly established the NAMA Mechanism, now known as the Mitigation Action Mechanism. Denmark and the European Union joined the programme as new donors in 2015, along with the Foundation of the Investment for Children (CIFF) in 2021. At the 27th Conference of the Parties (COP27) at the Egypt While celebrating the 10th anniversary of the NAMA Facility, the Council announced a change of name to the Mitigation Action Facility, effective from 2023, and a new focus on decarbonising priority sectors - energy, transport and industry.

The Mitigation Action Mechanism's vision is to accelerate decarbonisation to keep the temperature increase below 1.5 degrees Celsius by financing measures that shift a country's priority sectors onto a sustainable, carbon-neutral path.

The mission is:

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• Financing innovative projects that remove specific barriers preventing sectoral decarbonisation and that have a strong potential for expansion and replication
• Provide funding to support technical assistance (e.g. policy advice, training, awareness-raising, transfer technology ) that enables the development of capacities and policies
• Unlock investment opportunities by providing customised climate finance to fund projects with the potential to:
  • Strengthen countries' capacities to carry out 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
  • Implement innovative technologies and approaches, which require donor funding to support national development plans
  • Increasing private sector participation to realise ambitious climate action

Information on financing

• Overall funding volume of the call up to 100 million euros, as well as a higher funding volume of 25 million euros per project.
• The projects will last between 36 and 66 months.

Project features

• The Mitigation Action Facility aims to finance the implementation of the most promising and ambitious - and at the same time viable - projects. The projects should have the following characteristics:
  • Projects are implemented in one of the three priority sectors of the Mitigation Action Mechanism - energy, transport and industry, or propose a cross-sectoral approach with a clear link to one of the priority sectors. The sector(s) with which a project engages must be explicitly included in the partner country's NDC to affirm the project's alignment with national priorities and ensure that the project supports the implementation of the NDC, is aligned with the LTS and contributes globally to the UNFCCC process.
  • The projects demonstrate a high level of alignment with the plans developed within the framework of the NDC Partnership (NDCP), to the extent that they exist. In countries where counsellors have been seconded economic with the support of the NDCP, it would be desirable to link the project to the work of the counsellors
  • The projects are led by the countries and integrated into national development strategies and plans
  • The projects consist of a combination of political and/or regulatory reforms and financial mechanisms. Policies should serve to create an environment regulation and financial mechanisms channel financial flows towards investments that lead to carbon-neutral development paths. Regulation and financial mechanisms should serve to address potential barriers to investment and leverage public and private support for mitigation activities. Financial support should not be used to mitigate macroeconomic risks, such as exchange rate risks or inflation risks
  • Project funds are used to leverage additional public and/or private capital investments. A strategy for phasing out support from the Mitigation Action Mechanism and phasing in other sources of funding, including national funding for long-term self-sustained implementation, should be part of the project.

Eligible countries

• To apply for the Mitigation Action Facility, projects must be implemented in countries eligible for Official Development Assistance (ODA).

Election criteria

• Applicants, AsPs and Implementing Organisation(s) will be assessed individually in the specific context of the project to determine their capacity and suitability as a contracting partner of the Mitigation Action Mechanism.
• Candidates, ASPs and implementing organisations must:
  • Being or representing a legal entity
  • Demonstrate appropriate organisational structure and procedures
  • Have an appropriate accounting system with qualified personnel. It is expected that the annual budget and appropriate annual financial statements, annual sales and implemented budgets for the last three years will be made available
  • Have procurement procedures in place appropriate contracts that comply with national legislation and international standards
  • Have adequate internal and external control
  • Demonstrate an adequate track record in handling funding (ODA), including from (other) donors
• Since government agencies, non-governmental organisations and commercial organisations (national or international) are legal entities, they can serve as Applicant, Applicant Support Partner and then Implementing Organisation. This applies even if the non-governmental/commercial organisation is located in a country not covered by ODA, as long as the proposed project is implemented in an ODA-eligible country. It is also possible for the PSA to be made up of a consortium of legal entities.
• During the PMF, the Implementing Organisation(s) are subject to enhanced due diligence initiated by the FGA which includes, but is not limited to, verification of risk management, financial analysis, adherence to environmental, social and governance . The FGA may engage a qualified external consultant to support the enhanced due diligence.
• Applicants, ASPs and Implementing Organisations must not be subject to any of the following:
  • They have entered insolvency proceedings, had their business administered by the court, entered into agreements with creditors, suspended activities business are the subject of proceedings relating to such matters, or are in a similar situation arising from a similar procedure provided for in national legislation or regulations
  • They, or persons who have power of representation, decision-making or control over them, have been convicted of an offence relating to their professional conduct by a decision of a competent authority that has the force of res judicata (i.e. against which no appeal is possible).
  • have been guilty of grave professional misconduct proven by any means which the contracting authority can justify
  • They do not fulfil their obligations regarding the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or those of the country where the contract is executed
  • They, or persons who have power of representation, decision or control over them, have been convicted by a final judgement of fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity, where such illegal activities are detrimental to the donor's financial interests.

For more information, visit Mitigation Action Mechanism .