NDF - Financing for climate change and development projects

Annual Report 2015 - NDF continues to strengthen its innovative and catalytic role as climate finance institution

Cover of Annual Report 2015
Cover of the Annual Report 2015. Photo: Jake Lynell / Alamy Stock Photo

Read about NDF’s activities during 2015 in the newly published Annual Report.

In 2015, NDF consolidated its activities that combine addressing causes and consequences of climate change with the promotion of economic and social development, and poverty reduction in NDF partner countries in Africa, Asia and Latin America. A new NDF strategy, “Agile and innovative - NDF looking ahead,” was approved in November. The new strategy positions NDF in the broader climate finance architecture as the only joint Nordic finance institution focusing exclusively on climate change and development in low-income and certain lower middle income countries.

During 2015, the Board approved grant financing for 14 projects for a total value of EUR 37.9 million.

Disbursements of grants amounted to EUR 37.0 million (2014: EUR 30.5 million). The disbursements of credits amounted to EUR 2.3 million (2014: EUR 6.2 million) in 2015.

In 2015, three climate projects reached completion, all of them with satisfactory ratings. One credit project, the Melamchi Water Supply Project in Nepal, was completed. NDF still has two active credits which were originated before the climate change and development mandate was agreed in 2009.

A project performance rating was carried out for all on-going projects again in 2015, and the results indicate that the portfolio is in general performing well. Approximately 80% of the projects rated either highly satisfactory, satisfactory or just adequate concerning achievement of objectives, project progress and risk, i.e. they are classified as green.

In December, the Nordic Climate Facility (NCF) launched its sixth call for proposals, under the theme Green growth for sustainable livelihoods, to support innovative small-scale development projects that help low-income countries to mitigate and adapt to climate change. As NCF lies at the core of NDF’s strategic goals, it was decided that its administration be transferred from the Nordic Environment Finance Corporation (NEFCO) to NDF.

NDF’s efforts to strengthen its innovative and catalytic role as a climate finance institution received external international recognition. The United Nations Framework Convention on Climate Change (UNFCCC) selected 16 “game-changing initiatives” as the most innovative or exemplary climate projects in 2015, and four of them were NDF-backed activities. Another international recognition was given to an NDF-funded activity when Africa investor selected African Water Facility (AWF) as the Project Preparation Facility of the Year 2015.

More information about NDF’s activities during 2015 is found in the NDF Annual Report 2015 here. It can also be read at the special NDF library at ISSUU.com.