The RAC NAMA project is the first climate finance project in Thailand funded by the NAMA Facility, a joint initiative by the Federal Republic of Germany and the United Kingdom, in a total value of 14.7 Million Euro (approximately THB 565 million). GIZ has been commissioned to implement the project in partnership with the Thai government. The main implementing partners are the Office of Natural Resources and Environmental Policy and Planning (ONEP) and the Department of Alternative Energy Department and Efficiency (DEDE). Funding in the amount of EUR 8.3 million (approximately THB 320 million) out of total budget has been specifically reserved to set up the "RAC NAMA Fund", with EGAT as the designated National Fund Recipient (NFR) as well as the Project Fund Manager (PFM). EGAT will be responsible for managing the fund and for implementing financial support mechanisms to promote highly energy-efficient and climate-friendly cooling technologies. EGAT is considered the most capable and suitable organisation for this role in terms of capacity, human resource, as well as experience in managing greenhouse gas (GHG) mitigation and energy efficiency programmes, for example, the Label No.5 which successfully promotes higher energy-efficient appliances for decades.
Mr. Kodshayut Boriboonchatuporn, Deputy Governor—Powerplant Development of EGAT, said: "We are very honored to be the national fund recipient on behalf of the Thai government to manage the RAC NAMA Fund. Whilst our main policy is to generate electricity to meet the needs of the population we serve, we are determined to promote sustainable development and environmental preservation. The RAC NAMA project will not only help to support Thailand in energy efficiency in accordance with the country's Energy Efficiency Plan (EEP) but will also support the country in achieving the pledged GHG mitigation targets of 7-20% by 2020 and 20-25% by 2030 against BAU scenarios. Thailand has proved its ability to receive international support in the form of funding, capacity building, and particularly innovative energy-efficient and climate-friendly cooling technologies, and this is in alignment with EGAT's vision of 'Innovation Power Solutions for a Better Life.'"
Mr. Kodshayut emphasised that EGAT itself has set the target to mitigate 4 million tons Carbon dioxide equivalent (MtCO2e) of GHG emissions by 2020 and 10 MtCO2e by 2030, which significantly contributes to the national targets that Thailand has pledged to the international community.
Mr. Tim Mahler, Project Director of RAC NAMA, GIZ Thailand presented the key objectives of the fund, saying: "A RAC NAMA Fund budget of 8.3 Million Euro has been specifically approved for developing financial support mechanisms, in this case as sub-grant and revolving schemes supporting production-line conversion and market introduction of climate-friendly and energy-efficient equipment using natural refrigerants.The fund addresses the investment needs of producers, consumers, SME end-users as well as supports the service sector in the form of training and testing facilities. By bringing international climate finance to Thailand, the pioneering RAC NAMA fund should be considered a great opportunity in helping to increase incentives and alternatives for the RAC sector in Thailand as it moves towards green cooling technology and in supporting Thai industry to stay competitive in the global market."
The NAMA Facility Fund was established and announced during the Doha climate negotiations in 2012. The main objective of the Facility is to support developing countries and emerging economies in implementing actions to mitigate GHG emission and funding the implementation of ambitious country-led NAMAs with the demand for tailor-made "Climate Finance", thus delivering concrete GHG reductions. In this case, the British and German Governments are jointly providing support as donors through the NAMA Facility to Thailand's RAC NAMA fund. These two countries place great importance on environmental policy especially climate change initiatives and green energy strategies at the national level, as well as international climate negotiations, and also by supporting and partnering with countries like Thailand. The key potential of the implementation of Thailand's RAC NAMA fund involves knowledge transfer and learning experiences with climate finance, not only domestically but globally, in transitioning to a low-carbon economy.