Boosting climate finance through collaboration

The Nordic Climate Dialogues seminar on 1 October discussed the outlook for international climate finance in the coming years. Climate finance is expected to increase by more than 25 per cent annually; however, only a small part of the financing is used for climate action in the least developed countries.

The Helsinki-based Nordic Development Fund (NDF) provides financing to projects related to climate change mitigation and adaptation especially in low-income countries.

Solution to finance gap sought from blended finance models 

At the Nordic Climate Dialogues event, which is organised by the NDF, several speakers emphasised that the various blended finance models for development and climate financing will become increasingly important in the future.

Blended finance models enable multiple actors to participate in projects, as businesses may consider projects related to climate change mitigation and adaptation too risk prone. Cooperation between the public and private sectors can help to distribute risks and enhance return for providers of financing.

The NDF’s Managing Director, Satu Santala, stressed that the Nordic countries have built a strong model for mobilising private sector financing to support developing countries.

“Along with boosting the actions of individual countries, this collaboration also sets an example for international cooperation on sustainable development and climate finance,” Santala said.