Addressing problems caused by climate change is critical to economic growth and poverty reduction and is particularly urgent in the world’s poorest countries, which will suffer the most from these problems. The cost of climate change-related mitigation and adaptation in developing countries is estimated to be very high, particularly in Africa, and public funding alone cannot come close to meeting it. Most of this investment will be needed in infrastructure sectors such as power, transport, water, sanitation, and solid waste, in addition to urban and social infrastructure at the sub-national levels—in municipalities, regions, states, and provinces.
PPIAF’s relevance lies in its work on the upstream enabling environment for public-private partnership projects, early stage project conceptualization, and pre-feasibility project development—precisely the kind of work that must be informed by climate change sensitivities if the private sector is to invest in infrastructure-related climate change mitigation and adaptation in developing countries. Specifically, government officials need help to plan and prioritize climate-friendly projects, design legal and regulatory environments that facilitate the development of such projects, incorporate specific climate change responses into project designs, find and justify subsidy funding to pay for costs or mitigate risks that make private participation non-viable, and regulate project implementation after contract closure.
PPIAF's Sub-National Technical Assistance (SNTA) program is particularly relevant for climate change responses in cases where public-private partnerships are impractical or inappropriate. It offers municipalities and local utilities a non-exclusive public-private partnership approach for meeting the needs of increasing urbanization and population growth with renewed and expanded infrastructure for water, electricity provision, wastewater treatment, and efficient transport.
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PPIAF Supports Nationally Appropriate Mitigation Actions in Jordan
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 Background: In 2007, as part of the Bali Action Plan, Nationally Appropriate Mitigation Actions (NAMAs) emerged as a set of policies, actions, and commitments that countries would undertake to reduce greenhouse gas emissions. These actions were designed to be undertaken by developing country parties in the context of sustainable development in a measurable, reportable, and verifiable manner. NAMAs promise to serve as a bridge between developed and developing country parties, following the principle of "common but differentiated responsibilities."
PPIAF’s contribution: PPIAF is helping the government of Jordan: identify mitigation projects in the infrastructure sectors that demonstrate the possibilities of public-private partnerships in a future international climate regime; analyze options that best interface with (climate) finance solutions geared at public-private partnership participation; and identify the regulatory and institutional reforms required to encourage public-private sector participation for the implementation of NAMAs. A pipeline of potential NAMA projects suitable for private sector participation will be identified. From the pipeline, one potential activity will be selected as a pilot, and this technical assistance activity will support a pre-feasibility study to further advance the preparation of the transaction.
Expected outcomes: The support provided to prepare the pilot project could provide a blueprint for other projects on how to access to these new sources of financing linked to climate change, and how to attract private investors to infrastructure projects with a significant potential to reduce greenhouse gas emissions. The identified project will provide the information necessary to make informed choices in seeking more direct access to climate finance, by assessing how different financing programs can complement each other at the country level and how efficiently they perform. It will also provide guidance on how dedicated climate resources can be used to effectively leverage private sector investment. Additional expected outcomes include the higher visibility of the shortlist of potential NAMA projects that will be identified in the initial phase of this technical assistance activity, and consequently the higher likelihood that these projects will be able to attract the attention of donors and others in the international community interested in support a low carbon growth strategy in developing countries.
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