Finland, Iceland, Norway, Sweden, and Denmark have decided to strengthen the Nordic Development Fund (NDF) with additional capital of EUR 350 million. Finland’s share of this capital increase will be EUR 58.1 million.
The Nordic Development Fund promotes climate change mitigation and adaptation to climate change especially in the least developed countries and countries in fragile situations.
The focus of the Nordic Development Fund’s activities lies on Africa. In 2021–2025, the Fund will allocate at least 60 percent of its financing to Sub-Saharan Africa. At least half of the funding in 2021–2025 will be targeted at projects promoting adaptation to climate change.
The promotion of gender equality is an important cross-cutting theme in the activities of the Nordic Development Fund.
“I am proud that Finland has been advocating the capital increase of the Nordic Development Fund. I consider this an important milestone in Nordic cooperation. The capital increase is also an indication that the ‘Build Back Better and Greener’ approach launched by the Nordic countries is turning into action. Together, we can reduce poverty and combat climate change. Another important goal in the work of the NDF is to improve the position of women in poor countries,” says Minister for Development Cooperation and Foreign Trade Ville Skinnari.
There is a particular need for the capital increase right now, as the COVID-19 pandemic threatens to plunge 150 million people into extreme poverty. On the other hand, after the pandemic, there will be an opportunity to build new solutions that are more sustainable from the climate perspective.
The Development Fund aims to encourage other donors – both public and private – to participate in innovative climate projects. The NDF finances wind and solar power projects, for example.
Climate change increases the risk of floods, so the NDF has, for example, financed the improvement of flood control systems in Kigali, the capital of Rwanda. The NDF has also improved the ability of coastal regions in West Africa to adapt to climate change.
Original source: MFA-Finland
