DFCD receives €40m from Dutch Government for climate finance in vulnerable countries
The Hague, September 20, 2023 – DFCD Consortium Partners WWF and SNV have announced the injection of a further €40 million into the Dutch Fund for Climate and Development (DFCD) from the Dutch Ministry of Foreign Affairs.
WWF Director General Dr Kirsten Schuijt shared the news at the High-Level Event for Nature and People: From Ambition to Action, which sidelined the 78th session of the UN General Assembly in New York. Dr. Schuijt highlighted the potential of the DFCD to help fill the financing gap facing global climate and biodiversity goals.
The additional funding will allow the DFCD to increase the quality and quantity of climate-focused projects it supports in vulnerable countries across Africa, Asia, and Latin America. It will be managed equally between WWF-NL and SNV, a global development partner, who together are responsible for the DFCD Origination Facility.
Climate Adaptation, Biodiversity, and Gender Equality and Social Inclusion form the basis of a new package of focus areas for the Origination Facility, as well as an increase in support given to projects in Least Developed Countries.
Supporting businesses across the Forestry, Agroforestry, Sustainable Land Use, Food Production, and Water and Sanitation Hygiene sectors, the Origination Facility works to de-risk and develop its portfolio into bankable investment opportunities for the DFCD Investment Facilities, run by the FMO (Dutch Entrepreneurial Development Bank) and CFM (Climate Fund Managers), as well as potential third-party investment.
By doing so, it aims to help address the financing gap that stands in the way of reaching global climate and biodiversity targets.
Jaap de Jong, DFCD Project Manager at WWF-NL, has said that 'WWF is extremely honoured to be given the opportunity to continue supporting businesses with Bankable Nature Solutions and, in doing so, contribute to bridging the financing gap for biodiversity and climate adaptation'.
'SNV is pleased by the provision of additional funding from the Ministry of Foreign Affairs, which, in itself, is a recognition of the immense contributions that the DFCD has made in the current phase. We now look forward to enhanced interventions to promote climate change adaptation and biodiversity', noted Tigere Muzenda, DFCD Regional Investment Officer, Africa.
Simon O’Connell, CEO of SNV, indicated that 'with the additional resources, we will be able to leverage even more scalable impact and transformative systemic change needed for increased climate resilience of people living in vulnerable situations across developing countries in Africa, Asia and Latin America'.
To date, the Origination Facility has signed contracts with over 30 companies, committing around €25 million of DFCD support to projects that contribute to more sustainably managed farmlands and wetlands, increase livelihoods for local populations, reduce CO2 emissions and increase access to drinking water. This pipeline of ‘bankable’ businesses is primed for further investment from the DFCD’s Investment Facilities or potential third-party investors.
The Origination Facility now forecasts a significant increase in its impact and expects to boost the climate resilience of the livelihoods of an estimated 16 million people. The new funding will come into effect on the 1st of January 2024 and will run until 2027. For more information, visit www.thedfcd.com.
About the DFCD:
The Dutch Fund for Climate and Development (DFCD) is a climate resilience fund, dedicated to supporting climate adaptation projects which benefit vulnerable communities and landscapes. It is funded by the Dutch government and powered by a consortium of four expert organisations: FMO (Dutch Entrepreneurial Development Bank), CFM (Climate Fund Managers), SNV, a global development partner, and WWF Netherlands.