Nordic Climate Facility: Nordic Development Fund

Nordic Climate Initiative for Developing Countries

Nordic Climate Facility (NCF) funding is intended for challenging and innovative climate change approaches. NCF facilitates the exchange of technology, know-how and innovative ideas between the Nordic countries and low-income countries in the sector of climate change. This will increase low-income countries’ abilities to mitigate and adapt to climate change and contribute to sustainable development and the reduction of poverty. NCF is financed by the Nordic Development Fund and is implemented jointly with the Nordic Environment Finance Corporation (NEFCO).

Innovation is a key element

NCF intends to encourage innovation in climate change related and affected sectors such as environment, energy, transport, water and sanitation, health, agriculture, forestry and other areas of natural resource management.

NCF funding is intended for challenging and innovative climate change approaches which increase knowledge and know-how, identify and develop projects, test new technology and pilot projects, and scale up viable solutions. The projects should be carried out by Nordic organisations, authorities, municipalities, companies, and institutes together with partners in eligible low-income countries.

Financing and duration

Once a year, NCF will launch a call for proposals for innovative ideas within specific themes relating to climate change. The best proposals may receive grant financing amounting between EUR 250,000 and EUR 500,000. The projects should have an implementation period of 24 months or less.

The Main Themes

The calls for proposals are based on two main themes: adaptation to and mitigation of climate change. Climate change adaptation proposals may be related to issues such as, rising sea levels, threats to water and agricultural resources as well as to overall human welfare. Climate mitigation proposals can comprise efforts to reduce the emission of greenhouse gases by utilizing energy efficiency technologies, substituting fossil fuels for environmentally-sound renewable sources, and carbon sequestration. The climate change themes vary each year.

The call for proposals

The First Call for Proposals took place in 2009/10 and had two themes: Energy Efficiency and Water Resources Adaptation.

The Second Call for Proposals was 2010/11 and covered the following two themes: Urban Adaptation to Climate Change and Renewable Energy.

The Third Call for Proposals took place in 2011/12 under the theme: Innovative low-cost climate solutions with a focus on local business development.

More information about the projects selected for financing in the Third Call will be available in the autuum of 2012.