NDF commits EUR 500,000 to climate and peace investment initiative

The Nordic Development Fund (NDF) has joined Incofin Investment Management, the Peace Dividend Initiative, the United Nations Development Programme, and the Swiss Agency for Development and Cooperation to design and develop the Climate and Peace Investment Fund (CPIF), according to a press release published on October 7, 2026. The initiative seeks to address the interconnected challenges of climate change and conflict by expanding access to finance for entrepreneurs building climate- and peace-supporting businesses in lower-income countries and conflict-affected regions. NDF is providing a EUR 500,000 Booster Grant for the implementation of the CPIF Preparation Activities. The partnership brings together public and private actors behind a shared financing vision. It marks an early-stage step toward building a credible investment strategy.

Despite contributing the least to global greenhouse gas emissions, fragile and conflict-affected countries face severe climate hazards and rank among the most vulnerable to climate change impacts. This vulnerability is particularly driven by factors such as geographic location, dependence on agriculture, and limited adaptive capacity. Global security challenges persist alongside rising volatility and uncertainty in global markets. The impacts of climate change are placing growing pressure on livelihoods, stability, and sustainable development in many countries. These overlapping pressures underline the rationale behind the new fund.

Fragile and conflict-affected countries receive less than 10% of total public and private climate finance. The financing gap remains critical, with current climate finance flows to these countries estimated at only 26% of annual financing needs. In such settings, entrepreneurs continue to build businesses, create jobs, and serve their communities. By investing, innovating, and persevering despite extraordinary challenges, their enterprises help create livelihoods, strengthen resilience to climate change, and support stability. Supporting these entrepreneurs requires expanding their access to finance.

As the initiative moves forward, a comprehensive design process will shape it into a concrete and investable strategy. Targeted market analyses will identify opportunities to support sustainable economic activity, strengthen social cohesion, and advance climate action. A broad coalition of public and private investors will be convened to mobilize the scale of support needed.

Isabel Leroux, Program Manager at Nordic Development Fund, said: “One of NDF’s priorities is to ensure that climate finance reaches the communities most vulnerable to climate change, which are too often underserved by existing financing models.” She added that early support for CPIF helps build the foundations for a credible investment strategy capable of unlocking capital at scale.

The CPIF partnership reflects a joint effort to channel climate finance into contexts where access remains limited. NDF’s Booster Grant will finance the preparation activities needed to translate the concept into an investable fund. Partner organizations are expected to contribute expertise across climate finance, impact investment, peacebuilding, and development cooperation. The initiative targets entrepreneurs operating in lower-income countries and conflict-affected regions. Its progress will be guided by the preparation activities now underway.