NDF - Financing for climate change and development projects


Photo: XJUA
Photo: Iñigo Ruiz-Apilánez, Arup

NDF provides grant financing for interventions targeting adaptation to and mitigation of climate change in low-income countries.

Climate change adaptation measures include a wide range of efforts that enhance NDF partner countries’ possibilities to respond to climate change related hazards such as sea level rise and extreme weather conditions, as well as impacts on health and food security. Adaptation measures to address adverse effects of climate change include strenghtening of traditional coping mechanisms and practices, research and planning as well as “climate proofing” of sectors, geographic areas and projects.

Climate change mitigation measures are targeted at reducing greenhouse gas emissions by improved energy efficiency, increased use of renewable energy sources, carbon sequestration, substainable transport initiatives, enhanced waste management and sewage treatment.

In 2009 NDF shifted focus from soft loans for social and economic development to grants for climate change efforts. New financing is granted according to this new mandate. However, NDF has a considerable credit portfolio with loans outstanding under the old mandate. The grant operations under the new mandate are mainly funded from repayments of existing credits. NDF provides grants by co-financing projects with its partners in countries which are eligible for support from IDA and which have previously received NDF support.

NDF supports projects

  • addressing the mitigation of climate change
  • supporting the adaptation to climate change
  • related to infrastructure, natural resources and capacity building 
  • through grant financing
  • in low-income countries in Africa, Asia and Latin America
  • in cooperation with multilateral and bilateral development institutions


More information
NDF Strategy
Guidelines for Project Identification and Screening

     NDF Disbursement Instructions