Leveraging carbon finance for sustainable development
MDG Carbon’s technical assistance to developing countries has followed two main operational models. The first approach has involved overseeing regional CDM capacity development programmes in Africa, Central Asia and Latin America, addressing a broad range of barriers and stakeholders, for example Designated National Authorities and the local financial sector, through workshops, policy work and awareness-risking.
The second approach has involved UNDP acting as a “one-stop-shop” source of specialised technical assistance direct to third party projects to achieve CDM registration. Here UNDP has focused on assisting first-of-a-kind and/or high-sustainable development carbon projects, which can then act as demonstration projects for the private sector to replicate.
MDG Carbon has 3 core objectives:
- Access. To expand access to carbon finance to under-represented developing countries
- MDGs. To promote carbon finance activities with sustainable development outcomes
- Scale. To promote carbon finance solutions at scale
MDG Carbon’s activities are based on the principle that the most effective and efficient way to assist developing countries in carbon finance is through promoting hands-on, learning-by-doing experiences. As such, MDG Carbon aims to assist in the implementation of concrete, viable carbon finance activities that can then act as demonstration projects for further private sector replication.
Once a developing country gains proficiency in carbon finance, thereby attracting private-sector investment and developing project technologies that deliver longer-term development benefits, MDG Carbon will exit that market.
The Ministry of Climate Change and Natural Disasters and UNDP MDG Carbon have issued the Nationally Appropriate Mitigation Action (NAMA) on Rural Electrification in Vanuatu.
The overall target of the NAMA is to support Vanuatu in achieving the goal defined in the National Energy Road Map (NERM), namely to provide access to electricity to all households in Vanuatu. The NAMA will reduce GHG emissions through the replacement of fossil fuels with renewable energies. The NAMA will also contribute to Sustainable Development (SD) benefits, such as improvement of the situation of groups with specific vulnerabilities, women and the poor.