KV.RAH.LAIT/Nordic development fund (NDF), 4th capital increase

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

The purpose of NDF is to advance Nordic leadership in addressing climate change and development challenges through financing, knowledge and partnerships. Together with its strategic partners, NDF develops, launches and scales high-impact projects to support developing countries and the most vulnerable people affected by climate change. Capital increase negotiations culminated in September 2020, where a total capital increase of EUR 350 million was approved. A ten year paying-in period was agreed. Contributions are calculated automatically according to NDF rules on the basis of Nordic GDP shares. The main objective of the capital increase is to create a financial basis for the implementation of NDF's new strategy 2025 - Nordic Leadership Addressing Climate Change, adopted in 2020. NDF's new strategy is strongly in line with Finland's development and climate policy goals, and Finland had a significant impact on its content. The NDF's mandate, formulated in the new strategy, is based on four basic elements. These are 1) Nexus between climate and development; 2) Focus on lower-income countries and countries in fragile situations; 3) Concessionary financing; 4) Nordic priorities. With regard to the operationalization of this mandate, the NDF's strategy is that between 2021 and 2025, at least 50% of NDF funding will go to projects that contribute to climate change adaptation, at least 60% of projects will go to sub-Saharan Africa and at least 50% will be grants. Gender equality (SDG 5) is an important cross-cutting theme for the NDF.