Dutch Fund for Climate and Development (DFCD)
Bangladesh,Cambodia,Ethiopia,Indonesia,Kenya,Vietnam,Zambia,Burkina Faso,Ghana,Mali,Nepal,Tanzania,Nigeria,Benin,Bhutan,Burundi,Lao PDR,Mozambique,Niger,Rwanda,South Sudan,Uganda,Zimbabwe,
ongoing
Driving private sector investment in large-scale climate adaptation.
The challenge: scalable climate solutions
To curb the effects of climate change, substantial funding should be injected in innovative and scalable business solutions advancing climate adaptation, biodiversity conservation and food security. These solutions are in need of adequate support to make them investable.
What is the Dutch Fund for Climate and Development?
The Dutch Fund for Climate and Development (DFCD) invests in projects tackling climate adaptation, biodiversity and food security with a view to increase the resilience of communities and ecosystems most vulnerable to climate change. It was established in 2019 with an initial commitment of €160 million from the Dutch Ministry of Foreign Affairs with consecutive additional resources from both the Ministry and the European Commission through the EFSD+ framework.
The DFCD is managed by a pioneering consortium: SNV, the World Wide Fund for Nature Netherlands (WWF-NL), the Dutch Entrepreneurial Development Bank (FMO) and Climate Fund Managers (CFM).
The Origination Facility identifies eligible projects and supports them in becoming ‘bankable’, so that they may receive large-scale funding from the Land Use Facility, Water Facility, or third-party investors.
DFCD Origination Facility 2024-2027
To ensure effective funding, DFCD operates through the Origination Facility. Projects can receive a grant and technical assistance to take the necessary steps to become bankable. These can include technical and financial feasibility studies, legal costs, or assistance to fully deploy their business model. The facility is managed by WWF-NL and SNV.
For information on eligibility and where the DFCD is active, visit thedfcd.com.
Expected impact
tCO2e p.a. of GHG emissions reduced
ha of farmland sustainably managed
of private finance investment mobilised
people with increased climate-resilient livelihoods, many of whom women and members of vulnerable groups
Fund size
The Netherlands Ministry for Foreign Affairs has allocated €200 million to the DFCD for the period 2019–2027, with a target of impact by 2037. In addition, FMO has received guarantee funding from the European Commission, enabling them to increase their investment portfolio by EUR 240M. This means that over this period, the DFCD will manage a total investment fund of €440 million.
Of this, €70 million is dedicated to the Origination Facility, with SNV managing half of these resources.
