Support for early-stage design and structures
The lack of available financing for the design, development and structuring of early-stage climate and development-focused projects and investments is well-recognised. The lack of financing is often hindered by the perceived risks related to early-stage financing. Effective risk mitigation will help in unlocking such financing in a larger scale.
What is the objective?
We strive to increase the probability that innovative early-stage climate and development projects, in a planning or pilot stage, will be validated, developed and tested to a point where they can draw financing for scale-up from public or commercial sources. By creating a larger pipeline of effectively designed and implemented early-stage projects, we seek to increase the number and effectiveness of large-scale and highly replicable climate and development solutions.
An early-stage grant from NDF to the West Africa Coastal Areas Program (WACA), for example, has catalysed considerable financing to enhance climate resilience for coastal communities in six Western African countries. Since its establishment, WACA has leveraged approximately EUR 197 million in follow-up investments. Photo: NDF
NDF seeks to:
engage with strategic partners in the design, preparation and delivery of emerging early-stage projects, investments and climate solutions;
mitigate the issues related to lack of financing and support due to perceived risks related to early-stage financing
Photo credit: Asian Development Bank