The Nordic Development Fund (NDF) is a joint multilateral financing institution of Denmark; Finland; Iceland; Norway; and Sweden. Its objective is to facilitate climate change-related investments in low-income countries and developing countries.
Bangladesh; Benin; Bolivia; Burkina Faso; Cambodia; Cape Verde; Ethiopia; Ghana; Honduras; Kenya; Kyrgyzstan; Laos; Malawi; Maldives; Mongolia; Mozambique; Nepal; Nicaragua; Pakistan; Rwanda; Senegal; Sri Lanka; Tanzania; Uganda; Vietnam; Zambia; and Zimbabwe.
The Fund operates by means of long-term grants, which are issued in cooperation with bilateral and multilateral development institutions. Grants are provided by co-financing, following identification of suitable projects in partner countries according to specific national priorities. Projects can also be identified in conjunction with other multilateral financing institutions; development banks; and Nordic public and private entities.
The Fund has identified the following focus areas: agriculture; clean energy, energy efficiency, and renewable energy; early warning and disaster preparedness; flood and drainage management; urban development; water supply and integrated water resources management; reduction of climate vulnerability related to infrastructure; and sustainable land and forest management.
Projects addressing the cross-cutting issues of gender equality; governance; human rights; participatory development; and the fight against corruption will be preferred.
Although NDF typically finances public sector projects, it can also provide financial support to private sector entities operating in developing countries without a government guarantee.
NDF is also involved in the following special funds and initiatives:
- Nordic Climate Facility (NCF) for technology exchange between Nordic and developing countries;
- EEP Indonesia and EEP Mekong, committed to reducing greenhouse gas emissions and facilitating access to clean energy in the respective areas;
- ProClimate Guarantee Facility to support small and medium-sized projects for environmental conservation in developing countries.