Germany and its partners in the Mitigation Action Facility will provide more than €100bn for a competition for funding for decarbonisation projects in developing and emerging countries. This was announced by Minister Habeck today at the Global NDC Conference. The funding is to help these countries raise their ambition with regard to their nationally determined contributions (NDCs). The competition is being organised under the Mitigation Action Facility and seeks to identify the best ideas for projects in the developing world. The projects will receive funding from the Mitigation Action Facility and are to serve as examples showing how the energy, industrial and mobility sectors – which together account for around 67% of global greenhouse gas emissions – can be decarbonised.

Federal Minister for Economic Affairs and Climate Action Robert Habeck said:

“We will only be able to combat climate change effectively if we work together in close union with the countries of the global south. Our most important policy task is to not only meet our European climate targets but also speed up climate action at the global level. This will only be successful if we redirect global financial flows to reduce undesirable investment and thus make companies around the world the drivers of the global transformation. We will need to redirect private and public investment away from activities that damage the climate, and towards the expansion of renewables, green technologies of the future, and adaptation to climate change. And we will also need the public sector to play an active part in mobilising private-sector investment. The Mitigation Action Facility is to support this by providing funding to projects in emerging and developing countries that make a substantial contribution to decarbonising their economies and societies. In many cases, private-sector investment in forward-looking technologies still needs backing and risk mitigation from public funds.”

Building on the Paris Agreement, all countries are called upon to revise and ratchet up their NDCs. In order to cut global greenhouse gas emissions effectively and with the necessary speed, two approaches are key: expanding renewables and making more efficient and intelligent use of energy. Germany and the EU have set themselves ambitious targets here. In order to ensure that all countries make progress and to underline the urgency for ambitious climate action at the global level, the Federal Government, together with other countries, is advocating the adoption of global targets for renewable energy and energy efficiency before the next United Nations Climate Change Conference, COP28.

The Federal Ministry for Economic Affairs and Climate Action is hosting the Global NDC Conference in Berlin from 31 May to 2 June. The conference is being organised jointly by the Federal Ministry for Economic Affairs and Climate Action’s International Climate Initiative and the UN Development Progamme (UNDP), the NDC partnership and GIZ. More than 200 participants from Germany and the world will be discussing how the level of ambition in climate policy can be raised and implementation sped up. Through the NDC Conference, the Federal Government is providing a unique platform, allowing government representatives from more than 40 countries, stakeholders from civil society, the finance sector and international organisations to engage in a structured exchange of ideas. The focus of the discussions will be on approaches and requirements for successful climate action, particularly in the emerging and developing countries.

Further information

Global NDC Conference: https://globalndcconference.org/

Mitigation Action Facility (MAF):

Applications for the funding can be submitted by governments together with implementing organisations. Implementing organisations include for example international organisations, civil society organisations, development banks, foundations and private-sector companies.

The MAF is a multilateral initiative undertaken jointly by the Federal Ministry for Economic Affairs and Climate Action, the UK and Danish governments, the European Commission and the Children's Investment Fund Foundation (CIFF). The €100 million that has been pledged is to be invested in energy, industry and mobility projects in the developing world. Combined, these sectors account for around 67% of global GHG emissions. The funds contributed by the Federal Ministry for Economic Affairs and Climate Action to the Mitigation Action Facility stem from the International Climate Imitative. The Facility evolved from the NAMA Facility, which had been set up by the German and UK governments in 2012 and which invested €668 million over 10 years, cutting around 9.7 million tonnes of carbon emissions and leveraging 1.6 billion of public and private sector funds. Building on this success story and the experience gained, the Mitigation Action Facility will issue annual funding calls to support highly ambitious and transformational projects. More information on the submission of project outlines and on the further process can be found at https://mitigation-action.org/.