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Mitigation Action Facility

The Mitigation Action Facility – an agile, grant-based multi-donor fund – drives sectoral decarbonisation. The Mitigation Action Facility, evolved from the NAMA Facility in 2023, as a go-to platform for providing technical support and climate finance for ambitious mitigation projects with an aim of decarbonising key sectors of the economy and society.

It 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). 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.

Support provider

The German Federal Ministry for Economic Affairs and Climate Action (BMWK), UK Department for Energy Security & Net Zero (DESNZ), the Danish Ministry of Climate, Energy and Utilities (KEFM), the Danish Ministry of Foreign Affairs (MFA), the European Union and the Children’s Investment Fund Foundation (CIFF).

Purpose of support

Project and program implementation

Eligible countries and regions

DAC List of ODA Recipients

Eligibility criteria

Project Concepts and subsequently Project Outlines can be submitted by Applicants such as a national ministry in cooperation with an Applicant Support Partners (ASP) (a suitable ASP should be nominated latest with the submission of the Project Outline), a legal entity (endorsement by the national government institutions relevant for the implementation of the project should be demonstrated with the submission of the Project Outline), or a partnership of legal entities / ASPs.

By the latest at the Outline Phase, i.e. with the submission of a Project Outline, Applicants and ASPs must ensure that they fulfil the following capacity requirements:

Experience in the country of implementation (at least 3 years)
Experience in the respective sector (at least 5 years)
Experience with project development and/or project management (at least 5 projects of similar funding size as the DPP funding requested in the Project Outline)
Experience in developing investment/climate finance policies and/or programmes (at least 5 projects)
Experience in working with the public sector (at least 3 years)
Annual turnover of at least EUR 1 million over the last 3 years and 10 % of the requested funding volume for Detailed Preparation Phase (DPP)
Upon approval for DPP, the Applicant / ASP shall provide annual budgets and supporting financial statements (preferably audit reports) of the last three years, evidence of internal and external control and reporting structures and, if applicable, information on its procurement and contract award procedures. Qualified Applicants / ASPs will be contracted by Facility Grant Agent (FGA) for DPP based on a specific eligibility check.

Based on the mandatory characteristics of a project as outlined in chapter 4.1, Project Concepts need to meet eligibility criteria which serve to ensure that the submitted Concepts fulfil the
formal requirements of the competitive bidding for the Mitigation Action Facility support.

The following criteria apply:

Timely submission (i.e. by the closure of the Project Concept Phase of the Call for Projects 2023 at 3 pm CEST on 31 July 2023)
Focus on one of the three priority sectors – energy, industry or transport; or a cross-sectoral project linked to one of the priority sectors
Completeness of information (all mandatory fields in Open Application Platform (OAP) are filled out)
Information provided in English
ODA-eligibility of the country according to the OECD DAC-list throughout the entire foreseen project implementation period
Qualification of the Mitigation Action Facility funding as Official Development Assistance (ODA) finance
Funding volume requested from the Mitigation Action Facility for implementation is in the range of EUR 5-25 million excluding DPP funding
Envisaged implementation duration of 3 - 5 ½ years

Financial instruments

Grants, Concessional loans

Decision-making information

The Board takes all decisions on strategy, policies and guidelines and selects projects for funding. Formalised Board decisions are the basis for a grant award to the Applicant or Applicant Support Partner (ASP) for the Project Detailed Preparation Phase (DPP) and to the Implementation Organisation(s) for the Project Implementation Phase. The Board comprises representatives from the Donors of the Mitigation Action Facility.

Monitoring and reporting procedures

Monitoring and evaluation (M&E) is an important part of the Mitigation Action Facility. Monitoring is carried out by the TSU for the overall Mitigation Action Facility and by the Implementation Organisation(s) for the individual projects. Projects are expected to build up and anchor monitoring capacities with national institutions in the partner country. This shall ensure that monitoring and data collection mechanisms do not end when the project concludes. A project-level M&E is based on the M&E Framework of the Mitigation Action Facility, which provides guidance on monitoring and reporting requirements. In addition to indicators measuring the progress of the project on the output and outcome level, attention must be paid to the monitoring of mandatory core indicators and additional sector-specific indicators. Indicators measuring co-benefits, engagement on gender equality and social inclusion, assistance to public institutions and policy support are mandatory. The project-level M&E plan contains detailed information on monitoring tasks relevant to a particular project, including frequency of and responsibility for data collection. All monitoring costs must be included in the project budget.

For reporting on progress, Implementation Organisation(s) are required to regularly submit reports to the Mitigation Action Facility following a template provided by the TSU. These reports are:

Semi-annual reports on project progress, lessons learned and financial statement
Annual reports on the status and progress of the project, including an updated implementation schedule, on performance according to indicators, risk assessment, deviations from the original planning, lessons learned and financial status of the project
A final report that has to be submitted two months prior to the end of the project. In addition to the reporting requirements of the annual report, the final project report will assess the overall performance and achievements of the project in terms of outcomes and outputs and will discuss the impacts and lessons learned for broader application

The TSU will assess the progress of the project on the basis of the logframe, the M&E plan and the reports provided.

Climate objective

Mitigation

Sectors and themes

Industry and Infrastructure, Renewable Energy, Transport

Type of support provider

Multilateral

Type of recipient

Public entity at the national level, Public entity at the sub-national level, Public entity at the regional level, International organization

Fund size

EUR 100 million

Co-financing required

Application timeframe

The Call for Projects 2023 is the first Call of the Mitigation Action Facility. It builds on the legacy of the 9 Calls held between 2013 and 2021 as part of the NAMA Facility. The Call for Projects 2023 is open for submission of Project Concepts until 31 July 2023.

Trustee or administrator

Mitigation Action Facility

Contact information

https://mitigation-action.org/calls-for-projects/current-call/

Dr. Sören David
contact@mitigation-action.org

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Mitigation Action Facility

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