The DFCD ends the year on a high
The team have secured eight new projects in the last quarter of 2022
The last quarter of the year has been a defining moment for the Dutch Fund for Climate and Development (DFCD).
The team in Africa managed to secure DFCD approval for three new origination projects, and the Asia team brought in five new projects. This means SNV has fully allocated the grant and Technical Assistance (TA) resources until 2023.
In Africa, African Bamboo from Ethiopia led the way earlier in the year, followed by Burkina Faso’s Solvert and Stewards Globe Ltd (SGL) from Zambia rounded up the fund in December.
On the other hand, Asia has Mekong Earth and Forest Fund (MEEF) from Vietnam coming on board first in October, followed by Kofi Co. Ltd AMRU Rice from Cambodia in December. The team also received approval for NMB and Muktinath from Nepal in the same month.
Approval of these clients late in the year not only calls for celebration but is a testament that organisations are beginning not only to understand and appreciate the notion of climate finance but are willing to tap into the existing long-term financing to ensure sustainable development through climate adaptation.
‘The closure of these deals means that the project has successfully utilised the DFCD phase one fund. We have room and are ready for phase two, Albert. Bokkestijn DFCD project manager says.
By the end of December 2022, SNV will have completed the origination activities of five of the projects, including CAMIMEX, Equatorial Teak Company (ETC), ECOM, Solar Water Solutions (SWS, now known as Solar Water Springs)) Forest Carbon and Orlar. This means that the companies will engage directly with the DFCD investment facilities partners for final preparations and negotiations with a view to directly invest in those partners who have reached the investment-ready stage.
‘With the DFCD one phase ending in 2023, we look forward to working with these clients as we begin planning on the development of a robust pipeline for the anticipated phase two in 2024 to increase our impact regionally and drive the sustainable development agenda that is part of the wider SNV Strategy’, Tigere Muzenda DFCD Investment officer, Africa concludes.
About the DFCD
The Dutch Fund for Climate and Development (DFCD) enables private sector investment in projects aimed at climate adaptation and mitigation in developing countries.
The Dutch Ministry of Foreign Affairs has made available €160 million to increase the resilience of communities and ecosystems most vulnerable to climate change.
The DFCD is managed by a pioneering consortium of Climate Fund Managers (CFM), World Wide Fund for Nature Netherlands (WWF-NL) and SNV, led by the Dutch Entrepreneurial Development Bank, FMO.
The DFCD forms an important additional instrument for the Dutch government’s efforts in contributing to the Paris Agreement and the Sustainable Development Goals (SDGs).
For more information
For more information about the DFCD, please visit the programme website or contact Albert Bokkestijn at firstname.lastname@example.org.
Image: copyright Armu