Sector-Wide Activities

The Clean Development Mechanism (CDM) has established itself as an important instrument in assisting developing countries to transition to low-carbon, climate resilient economies. In particular, the CDM’s Programme of Activities (PoA) modality has opened the door to reducing transaction costs through aggregation, and to implementing activities in developing countries with low emission reduction potential, many of which could previously not benefit from carbon finance.

Going forward, the opportunity is for the CDM and carbon finance to move to mitigation actions at scale, and to draw linkages with next generation instruments such as Nationally Appropriate Mitigation Actions (NAMAs) and New Market Mechanisms (NMMs). In this regard, the CDM’s PoA and Standardised Baseline (SB) modalities can act as an important starting point for sector-wide activities. Developing countries can gain bottom-up, direct experience with PoAs and SBLs that can then serve as building blocks in developing the NAMAs and NMMs of the future.

In Focus
NAMA on Rural Electrification in Vanuatu

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.

Finance Structure and its Management for a Rural Electrification NAMA
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