NDF - Financing for climate change and development projects

Blended Finance for SDGs, NDCs and energy access

Photo: Joel Sheakoski
Photo: Joel Sheakoski
Photo: Joel Sheakoski
Photo: Joel Sheakoski
Photo: Joel Sheakoski

NDF gathers partners at COP23 for blended finance discussion.

Leveraging public financing to scale up progress on Sustanainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs) was the theme of a side event and panel discussion hosted by NDF at COP23 in Bonn.
Pasi Hellman, NDF’s Managing Director, kicked off the event, which took place on Day 2 of the Nordic Financing Days and showcased the work of the three Nordic financing institutions, NDF together with NEFCO and NIB, at the Nordic Pavilion, a venue hosted by the Nordic Council of Ministers.
“We are actively leveraging NDF’s wide array of financing instruments to support delivery of the SDGs and NDCs in our partner countries,” Hellman said, adding, “our operating thesis is that smart and targeted use of public money can realise significantly scaled-up impact through collaboration with the private sector.”
The conversation was anchored around a presentation of results and vision for the next phase of the Energy and Environment Partnership (EEP) in Southern and East Africa as a concrete case study illustrating precisely the role of well targeted donor commitments catalysing private sector engagement on the SDGs and NDCs.
EEP is a financing facility providing early stage and catalytic financing for private sector-led clean energy access projects in Southern and East Africa. It was established in 2010 with financing from the Ministry for Foreign Affairs of Finland (MFA Finland), the UK Department for International Development (DfID) and the Austrian Development Agency (ADA).
EEP has established a strong brand for delivery, impact and effectiveness and committed more than EUR 50 million in direct financing to more than 200 pioneering projects leveraging clean energy technology and innovative energy access business models to transform lives and livelihoods and support the growth of a vibrant green economy in the region. It is now poised for a relaunch in January 2018 as a multi-donor trust fund under the overall leadership of NDF and fully aligned with the SDGs and NDCs for the countries of the region.
The event was moderated by Charles Wetherill from NDF and brought together representatives from MFA Finland and ADA as well as a group of panelists including Sheila Oparaocha from the ENERGIA International Network on Gender and Sustainable Energy (ENERGIA), Mahua Acharya from the Global Green Growth Institute (GGGI), Monojeet Pal from the African Development Bank (AfDB) and Naeeda Crishna Morgado from the Orgranisation for Economic Cooperation and Development (OECD).
Acharya described the work going on at GGGI around blended finance strongly emphasised the importance of public and private sector “getting closer and more comfortable with blended finance arrangements and sharing risk in single capital structures.” Oparaocha indicated strong support for the continuation of EEP and clear results to date and spoke for all panelists when she added that “there is so much still to be done particularly around linking youth and women to capital.”
Wetherill closed the event citing figures from a recent report (Blended Finance: Mobilising Resources for Sustainable Development and Climate Action in Developing Countries) from the OECD which point to an annual gap of more than USD 2 trillion between actual public financing flows and what is actually required by developing countries to achieve the SDGs and commitments from the Paris Climate Agreement. “We quite simply have no choice. To close this gap and achieve these goals, we must blend our financing with other stakeholders.”