R E P O RT O F T H E B O A R D O F D I R E C T O R S 2 0 1 3
In November, NDF participated in the nineteenth Conference of the Parties (COP-19) to the UN Framework Convention on Climate Change (UNFCCC) in Warsaw, Poland. NDF had been invited to present its lessons learned from supporting adaptation measures to climate change in the transport sector. During 2013, NDF also launched its new website. The site was visually and technically renewed, in order to help users find information more easily.
Financial issues Disbursements of grants amounted to EUR 27.3 million (2012: EUR 27.1 million). The disbursements of credits amounted to EUR 8.0 million (2012: EUR 14.1 million). The net result for the year before adjustments for currency exchange fluctuations and after disbursements of grant aid totalled EUR -22.0 million in comparison with EUR -25.0 million the previous year. The effects of currency fluctuations showed a result of EUR -12.1 million (2012: EUR -5.1 million). After hedging measures, the effects from currency fluctuations are EUR -9.1 million (2012: EUR -3.5 million). The question of NDF’s future financial resources was discussed by the Board in two meetings, in June and in December. The Nordic Council has twice passed a resolution recommending to the Nordic countries’ governments that more capital be allocated to NDF to further enhance its climate change-related activities. The Board has not come to a conclusion on the issue, but has agreed to continue discussions in 2014, and that a joint response to the recommendation of the Nordic Council be prepared by the Nordic governments. NDF’s Climate Change Projects in 2013 Since the introduction of the climate change mandate in 2009, NDF has approved 63 projects for a total value of EUR 174.1 million for climate change projects in 16 countries (nine countries in Africa, four countries in Asia and three countries in Latin America). Private sector-related facilities constitute approximately 27% out of total approved NDF funding. Approximately 41% of the projects are based on parallel financing and 59% are jointly financed. Approved Financing by Region - EUR 174.1 million
During 2013, the Board of Directors approved grant financing for 13 projects with a total value of EUR 39.6 million. NDF has been active in three broad clusters; infrastructure, natural resources and climate change capacity-building. During 2013, NDF continued to approve and implement activities under the Small Grant Facility (SGF), which is a financing frame of EUR 5 million to be allocated as small-scale financing for studies, project preparatory activities or small project components relating to climate change adaptation and/or mitigation. During the year, an internal assessment of the facility was conducted and presented to the Board. Following the subsequent positive comments, a second allocation to the facility will be presented to the Board in early 2014. Africa Projects Approved in Africa NDF financing EUR m Mozambique Scalable Community Adaptive Solutions 4.0 Zambia Strengthening Climate Resilience Project 4.0 Mozambique Capacity for Climate Resilient Road Sector 3.8 In Africa, NDF’s activities were strengthened with three new projects, of which two are co-financed with the World Bank, and one with the African Development Bank (AfDB). In partnership with the World Bank, NDF is financing Scalable Community-Managed Climate Change Adaptive Solutions Project with EUR 4.0 million in Mozambique. The objective is to reduce vulnerability and strengthen resilience of coastal fishing communities. The overall vision of the project is to bring about transformation of the artisanal fishing sector in Mozambique so that community rights-based fisheries management will re-establish ecosystem health in coastal waters. Regaining ecosystem health will increase ecological resilience to climate change and expand opportunities for tourism, and substantially increase fish catch and catch value thus reducing poverty and increasing social resilience in fishing communities. The project will be implemented by the Institute for Development of Small-scale Fisheries, Ministry of Fisheries, with technical assistance from the international organisation Rare Conservation. In Zambia, NDF is supporting the development of climate-resilient infrastructure standards with a grant of EUR 4.0 million. The Strengthening Climate Resilience Project – Developing Climate Resilient Infrastructure Standards and Codes forms part of a larger component of a multi-donor long-term investment programme, led by the World Bank, addressing climateresilient infrastructure policies and piloting their effective implementation. The programme will play a catalytic role in promoting climate-resilient growth strategies in Zambia. The project will need to be integrated throughout the national transport policy, planning and management system in order to make the climate change resiliency more effective. With a grant of EUR 3.8 million, NDF is financing Developing Capacity for a Climate Resilient Road Sector, Nacala Road Corridor project Phase III, aiming at strengthening the road sector in Mozambique. The AfDB finances the Nacala Road Corridor Project, which develops a transport
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