NDF provides grant financing for climate change investments in low-income countries.
Identification of projects NDF provides grants by co-financing. NDF has a strong working relationship with the World Bank, Asian Development Bank, Inter-American Development Bank, African Development Bank and Nordic bilateral development organisations, and projects are usually identified through these partnerships. In addition, NDF aims at obtaining project information and ideas trough Nordic firms, organisations and networks.
Eligible areas for NDF grant financing include climate change mitigation and adaptation activities. NDF grants are provided mainly for technical assistance, i.e. consulting services, and for investments, i.e. goods, works, services, and for other applicable expenses in connection with technical assistance. NDF only finances projects in low-income countries. As NDF is a co-financing institution NDF grants normally constitute a part of the whole project or programme financing. The NDF-financed component of the co-financed project or programme should be in line with NDF’s mandate and eligibility criteria.
Financing decision All grant decisions are made by NDF’s Board of Directors. The decisions are prepared by NDF’s administration.
Size of grants The grant amounts vary depending on the scope of the project or programme. Grant amounts may amount from EUR 500,000 to EUR 4 million.
Implementation The implementation of NDF projects is usually undertaken by the recipient country in cooperation with the co-financing partners.
Soft loans under old mandate From 1989 to 2005 NDF provided soft loans for social and economic development. In 2009, the NDF owners decided that the Fund should provide grant financing for climate change investments in low-income countries.
Nordic Climate Facility (NCF)
The Nordic Climate Facility (NCF), a joint initiative by NDF and the Nordic Environment Finance Cooperation (NEFCO), is aimed at promoting innovative cooperation between Nordic organisations and companies and local stakeholders in low-income developing countries. In October 2009, the first call for project proposals was launched. This call was related to two areas; water resources and energy efficiency. The facility may approve EUR 150,000–EUR 500,000 per project as grant financing for climate-related projects in low-income countries in Africa, Asia and Latin America. New calls in 2010 and 2011 are planned to focus on disaster management systems, biomass energy, infrastructure management and solar energy development.
