NDF - Financing for climate change and development projects

NDF supports new climate resilience fund

Photo: Mon Zamora
Photo: Plan Denmark
Photo: Aage Jørgensen
10.12.2018

The NDF Board of Directors approved NDF support to the Climate Resilience and Adaptation Finance and Technology Transfer Facility (CRAFT) with a financing commitment of EUR 10 million.

CRAFT is the first commercial investment vehicle dedicated to expanding globally the availability of technologies and solutions for climate change adaptation and climate resilience. CRAFT will invest in private companies with climate resilience solutions and strong growth potential. While CRAFT’s investment strategy is global, at least two-thirds of investments will be directed to developing countries, where much of the need - and the growth- is found. The CRAFT concept has been developed by The Lightsmith Group, and it was endorsed at the Global Innovation Lab for Climate Finance competition in 2017.

CRAFT is structured as a blended private equity fund, with a concessional equity layer and a commercial equity layer. The structure includes a complementary Technical Assistance Facility, to support the application of technologies and solutions of CRAFT’s portfolio companies in lower income countries. The approved NDF financing includes an equity commitment of EUR 8.5 million to the concessional layer and a grant commitment of EUR 1.5 million to the TA Facility.

NDF has been involved in setting up and launching CRAFT, in partnership with The Lightsmith Group and the Global Environment Facility, through the financing of the fund’s preparation activities. “NDF is proud to be the first investor finalising a commitment to CRAFT,” affirms Isabel Leroux, Program Manager at NDF. “We look forward to having investors join us in supporting CRAFT’s innovative business-driven approach to climate resilience, and together significantly contributing to addressing the adaptation gap.”