Nordic Development Fund – Guidelines for Project Identification and Screening

The Nordic Development Fund (NDF) is a joint Nordic finance institution focusing exclusively on climate change and development in low-income (LIC) and lower middle-income countries (LMIC). NDF has adopted a new strategy in November 2015, which underlines NDF’s role in channeling finance to innovative climate change interventions that reduce poverty in developing countries. In line with the new strategy, the NDF Guidelines for Project Identification and Screening (originally launched in 2010 and previously amended in 2013) have been updated to reflect the core principles and strategic priorities highlighted in the 2015 strategy.

With the large number of projects annually submitted for NDF consideration, it has been found necessary to employ a systematic procedure for addressing project suitability. In addition to the core project criteria of climate relevance and economic viability, a set of strategic criteria have been formulated based on NDF’s strategic focal areas to ensure optimal value added by NDF. The objective of the screening process is to ensure that the selected projects fit within NDF’s strategic ambition and facilitate transparent and informed prioritization in portfolio development.

It is difficult to rank countries, sectors or projects scientifically with regard to priorities for climate change interventions, not only because of the uncertainties surrounding climate change itself, but because vulnerability to climate change is but one of many criteria to be used in assessing priorities for development assistance. NDF has a history of association with 27 countries. The current resources mean in practice that approximately only 12-15 of these low-income (LIC) and lower middle income (LMIC) countries can receive funding from NDF at the moment.