A consortium of FMO, WWF-NL, SNV and CFM to manage the new Dutch Fund for Climate and Development

Between 2019 and 2022 the Dutch government will provide €160 million through the Dutch Fund for Climate Development (DFCD) for climate-relevant projects in developing countries. DFCD is a new fund that will support these countries’ efforts to combat climate change and its effects. The fund had been announced in the Dutch government’s coalition agreement.

Climate change is one of the biggest challenges facing the world today. Developing countries are being hit harder than most, while they have fewer resources for climate action. Under the Paris Agreement rich countries undertook to financially support developing countries. The new Dutch Fund for Climate and Development (DFCD) is a key instrument in support of this pledge.

The consortium that has been awarded the grant to manage the fund will focus on water management, sustainable forestry, ecosystems, coastal management and climate-smart agriculture. Examples of projects can include mangrove restoration and improving irrigation in arid regions. This will help make communities more resilient to the effects of climate change. The consortium will also invest in activities that combat deforestation and land degradation, with a view to reducing the carbon emissions that contribute to global warming.

Sustainable economic development and combating climate change are two sides of the same coin. The consortium’s investments will not only benefit the climate, but also improve the lives of the most vulnerable groups in developing countries, such as women, children and the very poorest. At least a quarter of total financing will go to projects in the poorest countries.

The government hopes the fund will also release more funding for climate projects by drawing on private sources of finance. The initial public contribution is projected to leverage private investment in the region of €500 million to €1 billion during the DFCD’s duration, vastly increasing its climate impact. The supported projects will be in sectors in which the Netherlands has a lot of expertise, thus creating opportunities for Dutch businesses and research institutions.

On 23 May it was announced that the DFCD will be managed by a consortium made up of Dutch development bank FMO, the Dutch branch of the World Wide Fund for Nature (WWF-NL), SNV Netherlands Development Organisation and Climate Fund Managers (CFM). The consortium of complementary partners will start financing climate-relevant projects in developing countries immediately. More information about the consortium and climate fund projects can be found on the FMO website.