Theory of Change

When launched in 2012, the NAMA Facility was instrumental in establishing the concept of ‘transformational change’. The concept has gained further momentum with the operationalisation of the Green Climate Fund and is equally applied in the Paris Agreement. The NAMA Facility continues its focus on catalysing transformational change towards sustainable carbon-neutral development, supporting the Paris Agreement’s objective to limit the increase in global average temperature ‘to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels’. 


The NAMA Facility emphasises how a mix of different types of interventions - in particular regulatory and financial ones – may trigger more climate friendly behaviour and consumption and production methods in developing countries. The NAMA Facility support enables public and private actors in emerging economies and developing countries to address financial barriers to more climate friendly behaviour, consumption and the use of carbon-neutral technologies. The portfolio of NSPs demonstrates that across the various sectors, carbon-neutral technologies can become economically viable. Thus, they encourage and facilitate further investments in broader NAMAs. (See also factsheet on transformational change on the NAMA Facility website). 


The Theory of Change (ToC) seeks to illustrate the transformational potential by depicting the pathway of changes that shall be initiated through the NAMA Facility support. These desired changes are primarily triggered by the individual NSPs. NSPs shall demonstrate how climate finance will effectively contribute to a transformational change. Given the NAMA Facility’s objective of supporting NAMA implementation, the focus of NSPs is on financial support mechanisms that serve to mobilise capital investments in and operation of carbon-neutral alternatives. Technical support and institutional and regulatory capacity development in partner countries may be provided during NSP implementation to facilitate this objective.

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