Nordic Climate Facility (NCF)

Focus
Adaptation, Mitigation
Method of Support
Grants
Eligible Countries
21 low-income countries in Africa, Asia and Latin America. Eligible countries in Asia include Bangladesh, Cambodia, Lao PDR, Nepal, Sri Lanka, and Vietnam.
Funds Pledged
EUR 26.90 million
Funds Approved
EUR 23.84 million (NCF1 to NCF6)
Funds Disbursed
EUR 13.67 million (NCF1 to NCF5)
Source: Nordic Climate Facility. “NCF Annual Report (call 5-9)2016.” (As of Dec 2016)
TIPS by USAID Adapt Asia-Pacific

Since 2009, six calls for proposals have been announced to date, each with a different theme: NCF1: water resources and energy efficiency; NCF2: renewable energy and urban adaptation; NCF3: innovative low-cost climate solutions with focus on local business development; NCF4: Inclusive green growth projects contributing to private sector development; NCF5: climate resilience in urban and private sector contexts; and NCF6: green growth for sustainable livelihoods, which was launched in November 2015. NCF7 is expected to launch during the Q3 of 2017.

For interested parties, watch for the timing and theme of the next call for proposals and get to know your Nordic counterparts.

About
The Nordic Climate Facility (NCF) is fully financed by the Nordic Development Fund (NDF) on a competitive basis. Calls 1-4 are administered by the Nordic Environment Finance Corporation (NEFCO) and Calls 5 onwards are managed by NDF, with resources coming from five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden. The NCF encourages the transfer of technology, know-how and innovative ideas between Nordic countries and low-income countries facing climate change in order to increase their abilities to mitigate and adapt to climate change and contribute to sustainable development and poverty reduction. 
Target area
The NCF supports a wide range of adaptation and mitigation activities across sectors and areas susceptible to climate change such as: energy, transport, water and sanitation, health, agriculture, and forestry and other areas related to natural resource management.
How to access the fund
NCF financing is granted only to an active institution, organization, company or authority with relevant technical capacity holding a registered place of operations in Denmark, Finland, Iceland, Norway or Sweden. The proposal must also include one or more eligible local partners in the country where the project will be implemented. Accessing the NCF is based on responding to annual calls for proposals. The calls are usually focused on specific climate change themes, including energy efficiency, urban adaptation, and inclusive green growth. Before proposals are reviewed, applicant organizations pass through a pre-qualification phase where their eligibility is determined. Then the NCF undertakes a technical review of the proposals and shortlisted organizations are invited to elaborate a full proposal. The best proposals may receive grant co-financing amounting to between EUR 250,000 and 500,000.  The grant may be used to cover actual costs related to technical assistance, equipment, and investments, among others. 
Approval process

Pre-screening of all project proposals is done via a completed online application form. This is followed by a full technical and financial evaluation. The NCF’s funding decisions are highly results-based and grant disbursements are linked to agreed milestones included in the proposals.

The NCF’s grant funding may cover up to 80% of the estimated costs, with the rest covered by the applicant, local or other partners, and/or other international or local financiers. Proposals indicating more co-financing usually score higher. The maximum project implementation period is 30 months, starting one month after the signing of the grant agreement.

In the long run, NCF-funded projects are expected to be financially viable for the local partner; however, the NCF does not intend for the project to generate profits during the implementation period. Any possible revenues must eventually be budgeted as financing for the project.