This report gave an evidence-based overview on how NDF’s co-financing is building resilient, sustainable and equitable societies in the least developed countries and countries in fragile situations. We are pleased to see that, despite many global challenges, we are on a solid path to reach our Strategy 2025 targets. A lot of continued hard work is needed, however, and we are committed to working together with our partners to address the climate and development challenges in the Global South.

The data shows that we are on the right path in giving focus to climate change adaptation. More than 60% of the financing in our active portfolio is aimed at delivering adaptation outcomes. This is beyond the target set in our Strategy, but we also know that much more needs to be done. According to UNEP’s most recent Adaptation Gap Report, global adaptation finance needs are estimated at USD 160-340 billion by 2030. As a catalyst, we have an important role in bringing additional funding for adaptation initiatives.

In 2022, 53% (67% in 2021) of our funding has been in the form of grants and 8% in recoverable grants. The share of equity financing has grown slightly due to some high-volume private sector projects and the share of loans remained very small. By combining concessionary risk-tolerant and patient capital from NDF and other like-minded investors, we have been able to leverage capital from the private sector and more commercial investors. Our funding for the early stages of a project can be crucial for getting it kicked-off and is an incentive for others to join.

We have continued financing both private and public sector activities, which are crucial for delivering sustainable climate and development solutions. Our support addresses development priorities of the countries and regions where our projects operate. By building firm foundations we are increasing the likelihood of lasting positive results from investing in climate adaptation and sustainable development.

None of this would be possible without solid internal processes to ensure high quality. We have improved our already rigorous process for identifying projects with high impact potential and apply systematic results management across our operations.

Following our values and Nordic principles, we are taking special care to look out for the most vulnerable, often women and girls. We have worked with our partners to advance gender equality throughout our operations. In this report, we showed the potential of this approach based on the collected data.

Because, in the end, it is all about people. We have introduced people, projects, and partners behind our data. We hope this gave a good understanding of the impact of NDF’s work. We understand there is a lot more that needs to be done in achieving the Sustainable Development Goals and combatting climate change. We are committed to being part of framing the future through our work and finding solutions with our partners in global climate contexts.