Mitigation Activity Design Document and Business Model for the National Clean Energy Access Programme

The Foundation for Climate Protection and Carbon Offset (KliK) contracted a consortium comprised of Carbon Limits and Econoler to support them in procuring eligible emission reductions in the form of Internationally Transferred Mitigation Outcomes (ITMOs) between the governments of Ghana and Switzerland. The Government of Ghana, with support from KliK, has been developing the National Clean Energy Access Programme (NCEP) and was set to scale up renewable energy as an instrument to achieve the conditional goals put forward in Ghana’s Nationally Determined Contribution (NDC). One of the building blocks of the NCEP was the preparation of a Mitigation Activity Design Document (MADD).
This assignment was focused on preparing the MADD, defining the scope of the supported measures under the NCEP, and conducting consultations with involved stakeholders to ensure the viability of the MADD business model.

Under the mandate, Econoler carried out the following activities:

• Development of the MADD template, concretizing the most suitable solar PV measures to be supported by the NCEP in light of planned actions by the Government of Ghana to achieve the NDC and taking into consideration aspects of overselling, climate finance double-counting, or overlaps with unconditional measures in Ghana’s NDC under the Paris Agreement. The MADD also included a procedure under the governance of the NCEP to add further technologies under its scope, thereby taking into consideration existing government entities, rules, and political mandates in Ghana.
• Development of a concept business model for a pilot self-sustainable guarantee financial mechanism funded by the proceeds of the ITMO transactions it catalyzes. The business model comprised all sources of funding and revenues including climate finance, carbon finance from the KliK Foundation, as well as other expected expenses for the implementation, management, and operation of the guarantee mechanism.
• Preparation of a detailed Excel cash flow model demonstrating the sources and uses of funds over the term of the NCEP and a manual for operating the model.  

Econoler cooperated closely with the Government of Ghana through the designated technical committee that was instituted for the purpose of developing the MADD. The MADD was approved by the Government of Ghana and the next steps of the practical implementation of the MADD were considered.