Mitigation Activity Design Document (MADD) for an Energy Efficiency Fund

This project entailed the development of a Mitigation Action Development Document (MADD) for The African Energy Efficiency Fund (AEEF) to be established in Morocco and for which the KliK Foundation expressed interest in sourcing Internationally Transferred Mitigation Outcomes (ITMOs) that will be transferred from Morocco to Switzerland. The consortium developing the MADD is comprised of Econoler, Attijari Invest and South Pole.   The fund would provide investments for energy service companies (ESCOs) to implement energy efficiency measures through energy performance contracts (EPC). By assuming the financial risks and mobilizing capital, the fund could unlock the ESCO market in Morocco and its energy efficiency potential.

The development of the MADD entailed the following analyses and activities:

• Define target clientele of the fund in the industrial and tertiary sectors;
• Analyze the ESCO market and assess ESCO interest in the AEEF opportunity;
• Identify all relevant ESCOs;
• Demonstrate how the contribution of KliK funds contributes to transformational change;
• Describe the methodology to define the baseline for determining mitigation outcomes, the appropriate crediting period as well as its duration;
• Define the approach to demonstrate how double claiming of emission reductions is avoided;
• Define the approach to showcase how the initiative improves sustainable development;
• Specify how the methodology for determining mitigation outcomes will be developed and implemented;
• Further develop and formalize the governance structure of the fund;
• Engage and mobilize relevant public authorities;
• Develop the business and cashflow models.

  Upon acceptance of the MADD by the Klik Foundation as well as by the governments of Morocco and Switzerland, the fund would be allowed to generate ITMOs for the KliK Foundation. The fund was expected to avoid 200,000 tCO2e over 10 years.