About Nordic development fund
The Nordic Development Fund (NDF) is a unique international finance institution that focuses on the intersection between climate change and development in lower-income countries and countries in fragile situations. The fund was established by the five Nordic countries - Denmark, Finland, Iceland, Norway, and Sweden - with the aim of promoting sustainable development through climate change mitigation and adaptation.
The NDF has a clear mandate to support projects that contribute to reducing greenhouse gas emissions or increasing resilience to climate change impacts. The fund provides grants, loans, guarantees, equity investments, and technical assistance to eligible projects in its partner countries. These projects can range from renewable energy initiatives to sustainable transport systems or climate-smart agriculture practices.
One of the key strengths of the NDF is its focus on partnerships. The fund works closely with other international organizations such as multilateral development banks (MDBs), United Nations agencies, bilateral donors, private sector actors as well as national governments and local communities. By leveraging these partnerships and networks, the NDF can maximize its impact on sustainable development outcomes.
The NDF's approach is also guided by a strong commitment to gender equality and social inclusion. The fund recognizes that women are often disproportionately affected by climate change impacts but are also key agents of change in building resilience at community level. Therefore it seeks to ensure that all its projects have a gender-sensitive approach that promotes women's participation in decision-making processes.
Since its inception in 1989, the NDF has approved over 200 projects across more than 60 partner countries with total commitments exceeding EUR 1 billion. These projects have contributed significantly towards reducing greenhouse gas emissions while improving livelihoods for millions of people around the world.
Some examples of successful NDF-funded initiatives include:
- A project supporting small-scale farmers in Uganda to adopt agroforestry practices which reduce deforestation while increasing crop yields.
- A program providing affordable financing for energy-efficient housing renovations for low-income households in Latvia.
- A project developing a sustainable transport system in Dar es Salaam, Tanzania, which includes the construction of a bus rapid transit (BRT) system and improved pedestrian and cycling infrastructure.
The NDF's impact goes beyond individual projects. The fund also plays an important role in shaping global climate finance policies and practices. It participates actively in international forums such as the Green Climate Fund (GCF) and the Climate Investment Funds (CIFs), sharing its expertise on climate change mitigation and adaptation.
In conclusion, the Nordic Development Fund is a vital player in promoting sustainable development through climate change mitigation and adaptation. Its focus on partnerships, gender equality, social inclusion, and innovation has made it a leader in international climate finance. With its continued commitment to supporting transformative projects that benefit both people and planet, the NDF is well-positioned to contribute towards achieving global sustainable development goals.