NDF - Financing for climate change and development projects

Climate-Smart Agriculture in Focus in Latest NDF - IDB Financing Agreement

Photo: Produkt Herkunft, Creative Commons
Coffee farmer in Nicaragua
Photo: from left Bernardo Guillamon, IDB, and Pasi Hellman, NDF
From left Bernardo Guillamon, IDB, and Pasi Hellman, NDF
11.10.2016

Private sector involvement will stimulate job creation and income generation for smallholder farmers.

Last Friday in Washington, NDF’s Managing Director and IDB’s Manager for Outreach and Partnerships Director for Partnerships signed the financing agreement for NDF support to the Climate-Smart Agriculture Fund, an initiative led by the IIC to stimulate private sector solutions for climate-smart agriculture in Latin America and the Caribbean.

The Climate-Smart Agriculture Fund for Latin America and the Caribbean (CSAF) is a concessional finance facility aimed at catalysing private sector investment in sustainable agriculture, forestry and rangeland development across the LAC region. NDF committed EUR 5 million to support the Fund. The agreement was signed by NDF’s Managing Director Pasi Hellman and the IDB’s Manager for Outreach and Partnerships Bernardo Guillamon.

Climate-smart methodologies and technologies in agriculture, forestry and rangeland development offer solutions for mitigation and adaptation to climate change. CSAF will enable business owners in the region to pilot some of these solutions and challenge market thinking which limits access to finance.

CSAF is currently supported by the Global Environment Fund (GEF) and led by a team within the Inter-American Investment Corporation (IIC). Mr Hellman spoke about the significance for NDF and noted that the agreement “marks the first new financing by NDF with the IIC since its establishment earlier this year.”

Investments by CSAF are expected to stimulate job creation and sustainable income generation for poor and smallholder farmers in rural value chains across the region. NDF support will encourage development of projects in NDF partner countries in the region.  

More information:
NDF C86 The Climate-Smart Agriculture Fund for Latin America and the Caribbean (CSAF)