NDF Newsletter 3/2015

NDF NEWS

www.ndf.fi 3/2015

A NEWSLETTER FROM THE NORDIC DEVELOPMENT FUND

NDF

Representatives of the Mexican city of La Paz, ESCI, IDB and NDF.

Recognition to frontrunners Winners of Momentum for Change Lighthouse Activity Awards celebrated at COP21

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n 10 December, the sixteen winners of the Momentum for Change Lighthouse Activity awards were celebrated and recognised in an award ceremony hosted by the UNFCCC. Out of these game-changing climate action initiatives, four awards went to NDF-backed activities. This is a clear indication of NDF’s role as a frontrunner on innovative climate change initiatives.

The Momentum for Change is an initiative spearheaded by the UN Climate Change secretariat to shine a light on some of the most innovative, scalable and replicable examples of what people are doing to address climate change. The following four projects have been or are presently financed

by NDF: •• Emerging and Sustainable Cities Initiative (ESCI) supports sustainable develop-

ment in Latin American and Caribbean cities. The project covers 55 cities and focus specifically on climate resilience. After a successful first phase, the NDF support is now in its second phase.

•• Solvatten is an innovative but simple technology which utilises solar radiation (UV and heat) for water purification. NDF financed the introduction of these solar water purifiers in Kibera, a large slum area in Nairobi through the first call of the Nordic Climate Facility (NCF).

•• Grundfos LifeLink water solution combines mobile phones and water systems.

To collect water, people charge a smart card with credit bought onsite or via their mobile phones, insert it into the dispenser and pay for the water they need. NDF financed an earlier project with the LifeLink solution through the first call of the NCF.

•• SELF’s Solar Market Gardens combines solar-powered pumps with drip irrigation systems to provide for reliable, yearround, production of high-value vegetables and fruits in Northeast Benin. NDF financed an earlier version of the SELF Solar Gardens project through the first call of the NCF.

ALSO IN THIS ISSUE

•• Active at COP21 in Paris •• Geothermal development in East Africa •• Sustainable forestry in Africa •• Seeking innovative green growth projects •• NDF’s new strategy

NDF delegation preparing for the next event at the Nordic Pavilion.

NDF plays active role in COP21 Adapting the transport sector to a changing climate TRANSPORT REMAINS a critical support system for the smooth functioning of societies and economies. It facilitates accessibility of services that are vital for business and for the quality of life of citizens. It enables economic

growth and job creation, and has - along with energy - been the main sector for NDF investments since its establishment in 1989.

For use at COP21, NDF published a report called The Road Ahead - Road Transport and Climate Change Adaptation that extracts practical lessons from eight transport projects financed by NDF. These practical insights were presented at Transport Day 2015, where NDF arranged a special break-out session on transport and adaptation to climate change. Transport Day brought together more than 400 transport professionals and the event was organised by

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he Nordic Development Fund (NDF) organised and participated in a number of events in the context of the climate negotiations at COP21 in Paris in the first two weeks of December 2015.

NDF was invited to give a statement at the High-Level Segment of the 2015 UN Cli-

the Partnership on Sustainable, Low Carbon Transport (SLoCaT Partnership). Likewise, the Climate Adaptation in the Transport Sector: Accelerating Global Efforts side event had NDF present results from its transport and adaptation portfolio.

The Lima-Paris Action Agenda (LPAA) had a special high-level event on transport, where NDF’s Managing Director Pasi Hellman discussed transport and climate change adaptation with Manuel Pulgar Vidal, Peruvian Minister of Environment, and Simon Upton, OECD Environment Director.

Likewise, NDF is co-financing a new

Haukur Herbertsson

mate Change Conference. The High-Level Segment was attended by ministers and heads of delegations during a two-day session.

NDF together with other Nordic public and private sector organisations launched the Nordic Statement on Innovative Climate Finance. The group, composed of government representatives, export credit agencies, development finance institutions and institutional investors, commit to collaborate on a wide spectrum of activities relating to the mobilisation and development of climate investments, including further development and deployment of related financing instruments.

NDF is also part of the Mainstreaming Climate Action within Financial Institutions: Principles in Practice initiative, which was signed by 26 of the world’s leading financial institutions and launched during the second week of COP21. The financial institutions pledge to mainstream climate considerations into their investments and advisory functions, in an effort to scale up their efforts to address climate change, thereby “greening” operations over time.

Moreover, NDF hosted several well attended side events at the Nordic Pavilion.

The Nordic Pavilion, organised and set up by the Nordic Council of Ministers, housed a total of 50 events during the two-week period. More information about the NDF side events can be found both in this newsletter and on www.ndf.fi.

Geothermal energy is an abundant, clean and renewable energy source.

Geothermal site ­pictured in Iceland.

Nordic expertise to boost geothermal development in East Africa The Icelandic Ministry of Foreign Affairs and NDF co-hosted the Nordic expertise to boost geothermal development in East Africa side event to present the geothermal exploration project jointly financed by NDF and ICEIDA. The project covers the 13 East African Rift Valley countries and good progress is be-

ing made in several of the countries in early exploration and capacity-building activities. Together with 23 other organisations and 36 countries, NDF joined the Global Geothermal Alliance (GGA), which was launched in connection with the Energy Day of the Lima-Paris Action Agenda (LPAA).

NAMAs as building blocks for sustainable transformation A UNFCCC side event focusing on Nordic-financed Nationally Appropriate Mitigation Actions (NAMAs) provided insight on how NAMA development helps achieve sustainable impacts and sectoral transformation.

Through the projects financed by NDF in Asia, Latin America and Africa, the Nordic countries support low-income countries in their efforts not only to achieve their emission reduction targets specified in

their Intended Nationally Determined Contributions (INDCs) but also other co-benefits relating to development. NDF presented its contribution to climate finance readiness and NAMA projects supported in more than ten countries in various sectors, such as the transport sector. The NDF-financed projects can be seen as building blocks for the INDCs and for sustainable transformation.

Experience shared from sustainable forestry in Africa At a side event in the Nordic Pavilion, Senegal presented their experience from a sustainable forestry project which is co-financed by NDF and the World Bank. The country aims at providing clean energy to households in a sustainable and gender-equitable way. Senegal promotes alternative fuels such as biogas and charcoal briquettes

Pasi Hellman, Managing Director of NDF, giving a speech at the High-Level Segment.

World Bank study on climate change impacts on Africa’s road infrastructure in the period 2015-2050. The results show that additional costs from climate impacts on road transport infrastructure will be many billions of USD if no action is undertaken. Building on the findings of this analytical work, the World Bank is collaborating with the African Union Commission and the United Nations Economic Commission for Africa to develop a dedicated Africa Climate Resilient Investment Facility (ACRIF). The ACRIF was the focus of a special event with African Ministers, World Bank and NDF.

from agricultural residues as well as providing cooking stoves for the households. This makes the air quality better in households, preserves the forest ecosystems and contributes to the income of the participating communities. Benin also shared experiences of similar activities.

NCF seeking innovative green growth projects NDF launched the sixth call for project proposals for the Nordic Climate Facility (NCF) during a well-attended event at the COP21 climate summit in Paris on 9 December. NCF aims to co-finance projects targeting climate change, green growth and sustainable livelihoods.

Projects should focus on low-income countries in Africa, Asia and Latin America, and be carried out by local actors in partnership with Nordic-based organisations. NCF may provide grants of up to EUR 500,000 to supplement partners’ own contributions.

Proposals should be submitted online for the pre-qualification process by 29 January 2016.

Since 2010, NCF has allocated EUR 24.5 million in grant funding to 59 projects in Africa, Asia and Latin America.

Rebekka Gröhn

Creating sustainable livelihoods through green growth

NCF launched the sixth call in December with the theme Green growth for sustainable livelihoods.

Agile and innovative – NDF looking ahead Climate change is one of the most significant barriers to development and poverty reduction around the world, core foundations of the Nordic Development Fund since its establishment. NDF’s recently released strategy ensures that NDF will react quickly and effectively to support lowand lower middle-income countries to prepare for the changing climate.

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he strategy emphasises NDF’s strengths: Nordic expertise, ability to absorb risk, quick financing with minimal bureaucracy and activities covering many regions.

In order to take full advantage of these strengths, the Fund will focus on six key areas, all with the aim of adding value beyond the financial contribution. NDF will look to catalyse further investment, support pro-

Dave Proffer/CCL

Road construction in Rwanda. jects at the preparation stage, act as a lab for innovation, link the private sector with the public sector, finance high-risk pilot projects and provide links between regions.

NDF Managing Director Pasi Hellman commented that the new strategy places NDF in the broader climate finance field with a clearer and sharpened focus and the ability to provide added value to the overall climate finance arena. Through co-financing with multilateral development banks, NDF is well-placed to provide concrete support to the Green Climate Fund, for example,

through project preparation and providing activities for replication and scaling-up by larger international climate financiers.

NDF’s strategy rests on a solid foundation of many years of work to reduce poverty in the world’s neediest regions. NDF is the only joint Nordic finance institution to focus exclusively on connecting the challenges of both climate change and international development. The new strategy will further enhance the reputation of the Nordic countries as positive actors around the world.

Deron Fuller/IMP Communications Oy

New projects THE NDF BOARD approved three new projects in its most recent meeting in November 2015. The first is a grant of EUR 4.4 million for the Developing Capacity for Climate Resilient Road Transport Infrastructure project. The project forms part of the African Development Bank’s (AfDB) new transport sector project in Rwanda. The objective of the NDF support is to increase the resilience of Rwanda’s transport sector (roads and bridges in particular) to the impacts of climate change and natural disasters, and as a result, improve the well-being of its population. The NDF project will be the first initiative in Rwanda that focuses on integrating climate change adaptation into the transport sector.

The second project represents a commitment of EUR 5.25 million to the Farm Income Enhancement and Forest Conservation Project (FIEFOC2) in Uganda. The project is jointly funded by the AfDB and NDF. The aim of the project is to improve farm incomes, rural livelihoods, household food security and climate resilience through expansion of rural irrigation schemes together with development of agribusiness and integrated natural resources management. NDF will also finance the first ever pilot of the AfDB’s ENABLE Youth initiative aimed at engaging the next generation of young “agripreneurs” in the growth of the rural economy.

Finally, the Board approved a grant of EUR 5 million toward the Climate-smart Agriculture Fund for Latin America and the Caribbean (LAC). The Fund aims to catalyse private sector investments in sustainable agriculture, forestry and rangeland development across the LAC region. The direct clients of the Fund will be small-, medium- and large-scale agribusinesses developing innovative climate smart projects in the region. Poverty reduction will be a direct outcome of support to these projects, with the number one drivers for poverty reduction at sub-project level being job creation and sustainable income generation for the rural poor and smallholder farmers in the value chain.

NDF NEWS – a newsletter published by Nordic Development Fund, Helsinki, Finland. © Nordic Development Fund 2015 Paper: Edixion 170 g (FSC certified)