NDF - Financing for climate change and development projects

Market for Climate Resilience in Latin America, Africa and Asia [NDF C81]

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This project will support an assessment of the market for climate resilience in two key sectors in three large developing countries, one each in Latin America, Africa and Asia.

Multiple Regions
Market for Climate Resilience in Latin America, Africa and Asia
Project Ref: NDF C81

EUR 0.5 million
Project Period: 18 months
Partner agency: IDB/MIF
Project completed in June 2020. Actual disbursed amount EUR 500,000.00.


The objective of this project is to (i) assess, for the first time, the local demand and supply of a range of private climate resilience solutions in selected sectors, (ii) to identify promising business models and opportunities related to the demand for climate resilience solutions, and (iii) to develop a replicable methodology that can be applied in other countries, thereby forming the basis of a private sector market monitor for climate resilience products, services and innovative business models.

This knowledge project will be comprised of the following activities:

(i) Awareness-raising and knowledge dissemination:
Awareness of this project will be raised and its activities and findings will be publicised among key stakeholders in the three target countries. NDF countries in each region will participate in selected activities of this market assessment in order to foster learning and to apply lessons learnt.

(ii) Development and application of climate risk methodologies:
A methodology will be developed for conceptually framing, measuring and/or estimating the climate risks facing two vulnerable, priority sectors in each of the three countries. The three countries to be selected should be major economies in their continent and have active private sector participation.  Three NDF partner countries with similar characteristics shall be selected as reference and observer countries.

(iii) Identification of supply and demand for climate resilient products and services:
An overview of the climate resilient products/ services market in two selected sectors in each national market will be provided as well as  an estimate of the economic multipliers associated with this market activity and a demand forecast for resilient products and services in these two sectors. This activity will employ data gap analysis, collect and analyse local market data and other economic, trade, and statistical data, field visits, surveys, interviews, consultative meetings with private and public stakeholders and other research methods as needed.

(vi) Mapping of market innovations, business models and related opportunities:
This activity will focus on innovative private sector climate resilience products, services, and business models in target countries. In addition, this activity will highlight the role of selected anchor firms and value chains, and public private partnerships in this space. This activity will require extensive data analysis, field visits, surveys, interviews and/or other research techniques.

(v) Financial and insurance products:
This activity will highlight the respective actions of financial institutions such as banks and other private and public regulated or non-regulated lending institutions, investors and the insurers in providing businesses, households and public entities with debt financing, financial investment, and insurance/risk transfer products. This activity will require extensive data analysis, field visits, surveys, interviews and/or other research techniques. 

(vi) Policy and civil society:
This activity will provide an overview of relevant national and local policies related to private sector climate resilience in the two sectors studied, as well as a mapping of relevant activities of national, multilateral and civil society actors in private climate resilience (NGOs, community groups, foundations). 

(vii) Final report and climate resilience monitor methodology:
This activity will provide a summary analysis of this market assessment and will outline a methodology for identifying and assessing market activity and business opportunities related to the demand for climate resilience.


Total cost will be EUR 800,000 with EUR 500,000 coming from NDF and the rest from the PROADAPT budget of MIF (Multilateral Investment Fund). The PROADAPT concept is a joint effort by NDF and MIF to identify and test business opportunities for small and medium-sized enterprises resulting from climate change.

NDF Contact
Program Manager Isabel Leroux
Telephone +358 10 618 002

More information
Final Consideration NDF C81