How NDF finances
NDF provides grant financing for climate change investments in low-income countries.
Identification of projects
NDF provides grants by co-financing. Projects are normally identified by governments in partner countries according to national priorities. NDF also 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 often 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 5 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.
More information
Climate Change Strategy 2012-2013
Identification and Screening of Climate Projects