RESULTS AND IMPACT IN 2021

OUTCOME 2

Natural capital and water–energy–food security nexus enhanced

Contribution to the SDGs

Photo: MiPesca

Climate change is increasing the variability of interannual rainfall and the frequency of extreme events, resulting in accelerated rates of soil and water degradation. Biodiversity is similarly impacted by climate change, to the detriment of human well-being. However, biodiversity, through the ecosystem services it supports, contributes to both climate-change mitigation and adaptation. That means conserving and sustainably managing biodiversity is critical to addressing climate change.

In 2021, NDF continued financing projects contributing to enhancing the natural capital and water–energy–food security nexus, including building capacity and skills development in individuals, especially women and girls.

Highlights include providing hydropanels for drinking water and sustainable resource use in a remote drought affected Colombian community where previously only 4% had access to clean potable water; a project in the Bolivian high country, building animal shelters and developing pastures to protect local ecosystems and livelihoods; and a forestry project developing charcoal value-chains for resilience in Rwanda.

Making water out of thin air

Hydropanels bringing access to clean and potable water, improving livelihoods, creating jobs, and advancing health and wellbeing in drought affected areas, especially for women and girls.

Lightsmith Resilience Partners Fund (also known as CRAFT) is the world’s first market-driven investment vehicle dedicated to technologies and solutions for climate resilience. One CRAFT portfolio company called Zero Mass Water has invented hydropanels that can create drinking water from just sunlight and air – with the addition of some thermodynamics, materials science and controls technology. The installation of 149 of these hydropanels is now generating a year-round supply of clean, renewable drinking water to 500 members of the Bahía Hondita indigenous community in La Guajira, Colombia. Previously only 4% of the community had access to potable water and women and girls were being forced to spend up to two hours a day looking for ground water, which was often contaminated bringing unwanted health impacts, like skin rashes. This installation is part of a larger global push to scale up of the production and deployment of SOURCE hydropanels, especially in rising drought affected regions, under the investment umbrella of CRAFT, also featured in Section B of this report.

Photo: SOURCE

NDF CO-FINANCING

EUR 10 million

PARTNERS

Lightsmith Resilience Partners Fund, European Investment Bank (EIB), International Climate Finance Accelerator (ICFA), KfW, Green Climate Fund (GCF), Government of Luxembourg, AXA Investments, Rockefeller Foundation, Asian Infrastructure Investment Bank, and others

MAIN RESULTS

- Total 543 hydro panels for the provision of drinking water - Total 125 jobs created (27 women and 98 men). - Additional climate finance mobilised: EUR 40,608,000 - Hydro panels produced 10,450 litres of water from the time they were installed through to the end of 2020. - Total 1,745 people (50% women) benefitted from the provision of clean, renewably powered drinking water.

Adaptation actions for Andean dwellers

Investing in animal sheds and infiltration ditches in Bolivia to protect against extreme weather, saving livestock and livelihoods while alleviating work for women.

The communities of Villa Andino have for generations relied on the breeding of llamas and alpacas as their main livelihood. But as glaciers retreat, extreme micro-climatic snow, frost, hailstorms, winds and cold increasingly threaten the wellbeing of this livestock while degrading the pastural lands where they graze.

Tackling these threats, as part of a larger climate adaptation plan, this NDF-supported program, in partnership with Inter-American Development Bank, has built 50 sheds in the community of Villa Andino in the Municipality of Pucarani. The new sheds will protect livestock, nurturing an optimum breeding environment, while reducing herd mortality during severe weather events. They will also lessen the workload for women and children, who are often left in charge of grazing while the men go to work in the city.

Infiltration ditches designed to capture and infiltrate water into pastures have also been constructed in these communities, with over 110 hectares of pasture and wetland now preserved and in recovery. The process of restoring native grassland has been done through introducing ancient local methods that need to be managed closely.

Photo: NDF

NDF CO-FINANCING

EUR 4 million

PARTNERS

Inter-American Development Bank, Climate Investment Funds (CIF), Government of Bolivia

MAIN RESULTS

- Total 50 sheds for llamas and alpacas constructed - Infiltration ditches carried out in pasture closure sites made it possible to capture and infiltrate water as a means of providing water to natural pastures - Total 115 hectares of grassland impacted

Artisanal fisheries program in Northern Honduras casts a wide net

Conserving mangrove ecosystems in Honduras by boosting indigenous artisanal fishing competitiveness and inclusion while increasing resilience to climate change

The NDF co-financed project in partnership with Inter-American Development Bank (IDB) is working with local indigenous fishing companies and organisations to ensure their sustainable and environmentally responsible inclusion in the economy while preserving the mangrove ecosystem on which their economy depends.

The project has been successful in strengthening the community-based artisanal fishing SMEs using a value chain approach. Fishing organisations now have increasingly diverse and safe fisheries businesses with traceability for all fish catch. Solar plants have been installed to provide cold storage and ice production.

A national mangrove inventory has been completed together with the national forestry service and four wetlands and mangrove committees have been established. Project results have benefitted more than 10,900 people of which around 2,840 women, including 286 divers with disabilities.

The project will be completed later during 2022.

Photo: MiPesca

NDF CO-FINANCING

EUR 3.1 million

PARTNERS

Inter-American Development Bank, GOAL Global

MAIN RESULTS

- Total 24 fishing organisations strengthened - Total 2,065 fishers (475 women and 1,590 men) with increased capacities, improved skills and/or raised awareness - Total 3,151 jobs supported (1,739 women and 1,412 men – 53 persons with disability)

Charcoal value-chains for resilience in Rwanda

Promoting efficiency and sustainability along charcoal value-chains in support of forest landscape restoration and rural livelihoods

Forests in Rwanda provide a high percentage of primary energy, mainly for household cooking and industries like tea factories. The forests also form the base for the country’s tourism efforts, protect watersheds and downstream wetlands, prevent erosion, and support agriculture, among many other things.

This six-year project, financed by NDF and the World Bank, is part of larger initiative that has culminated in a new area of UNESCO protected National Park. Through NDF’s support, around 1,490 hectares in Gishwarti-Mukura, North-West Rwanda is now under improved natural resources management. This is specifically due to advances in woodlot management practices but NDF’s support also contributed to improving natural resources management through other means, including seed quality for climate resilience, charcoal production, distribution and marketing.

Woodlot management focused on supporting the use of native species in forest restoration to promote a more diverse tree seed pool, as well as creating a new seed collection centre promoting seeds that may withstand higher temperatures and floods.

Under the project, technical support in charcoal production and biomass processing given to farmer groups and cooperatives has led to more sustainable production, distribution and marketing practices as well as better market access for their end products. This is giving local producers an income boost, as well as reducing the time women and children spend gathering wood fuel. Rural populations are also enjoying the indirect benefits of enhanced ecosystem services and productive functions that their forest resources provide.

Photos: LAFREC

NDF CO-FINANCING

EUR 3.7 million

PARTNERS

World Bank, Government of Rwanda

MAIN RESULTS

- Establishment of tree-seeds stands and woodlot management practices - Total 4,881 farmers (1,501 women and 3,380 men) with improved capacities in sustainable land management practices - Total 1,487 ha under improved management - Total 8,848 people (4,689 women and 4,159 men) benefitting from uptake of solutions