NDF - Financing for climate change and development projects

Nordic Climate Facility Announces Third Call for Proposals


The third call for proposals under the Nordic Climate Facility (NCF) will be launched in late October 2011.

The NCF provides grants to development projects that have the potential to combat climate change and reduce poverty in low-income countries. The initiative has created a lot of interest among potential applicants and in the recipient countries as the demand for this type of seed-funding remains high. NCF is financed by the Nordic Development Fund (NDF) and jointly implemented with the Nordic Environment Finance Corporation (NEFCO).

The two previous calls each had separate themes for mitigation and adaptation proposals. The third call, however, has a single designated theme focusing on “Innovative low-cost climate solutions with focus on local business development”. The theme encourages business development and business opportunities which provide goods and services that will help reduce carbon emissions and facilitate climate change adaptation. A strong positive development impact, in addition to expected climate change benefits, is expected from successful applicants.

NCF encourages, in particular, concrete technological innovations in areas susceptible to climate change, such as energy, transport, water and sanitation, health, agriculture, forestry as well as other areas related to natural resources management. The first call for proposals - launched in October 2009 - had two specific themes: water resources and energy efficiency. A total of 138 proposals were received, of which14 proposals were selected for implementation. The second call for proposals - launched in October 2010 - also focused on two themes: urban adaptation and renewable energy. A total of 176 proposals were received, of which12 have been selected for contract negotiations. The two first calls had allocations of EUR 6 million each.

The third call for proposals has a similar allocation, thus bringing the total NCF financing to EUR 18 million.

More information on the previous NCF calls is available on NDF’s and NEFCO’s homepages.

Detailed instructions relating to the third call for proposals will be published on NDF’s and NEFCO’s homepages by the end of October 2011.