The first three agreements have been signed for climate change mitigation and adaptation projects under the Nordic Climate Facility’s fourth Call for Proposals (NCF4) on inclusive green growth.
The agreements are the first batch of 12 approved projects that have been selected for funding under NCF4. The agreed projects will improve food security in Tanzania, give access to energy efficient appliances in Ethiopia and support water economy in Kenya.
Fish smoking in Tanzania is mainly done over an open fire, using an excessive amount of firewood that contributes to deforestation in Tanzania. Matis, Icelandic food and Biotech R&D company, together with local and other partners, plans to reduce deforestation, mitigate greenhouse gas emissions, support local livelihoods, food safety and security by improved fish smoking and drying techniques. 100 energy efficient smoking/drying units will be constructed in 14 selected areas on the shores of Lake Tanganyika. Fish catch from Lake Tanganyika is estimated to be around 200,000 tonnes annually and the Tanzanian share of the catch is estimated to be up to 80,000 tonnes.
ORGUT Consulting from Sweden, together with several Kenyan partners, plans to improve water economics in a holistic manner. Water is a finite and limited commodity especially on the northern slopes of Mt Kenya. The project works at both local and national levels to improve water measurement, management and water abstraction compliance, water sales and water use efficiency in adaptation to climate change. The project will promote access to commercial financing for farmers and water utilities for improved water use efficiency. It will also enhance local regulatory functions and capacity by with engaging the local Water Resources Users Associations in the activities. It will support SMART water metering and payment systems via MPESA mobile phone based banking. The project benefits from the catchment rainfall-runoff models, comprehensive regional climate change modelling results, and future water availability and demand scenario analysis developed during the ORGUT’s previous project financed under the NCF’s first Call for Proposals.
Gaia Consulting from Finland, together with MicroEnergy International (Germany) and their Ethiopian partners, plans to initiate an innovative and replicable microcredit mechanism to finance clean energy technologies for households as well as small and medium size enterprises in Ethiopia. Energy poverty is a major structural challenge in Ethiopia, constraining economic development and poverty alleviation. The project puts in place a business mechanism and develops the entire supply chain for high-quality, clean energy technologies for low-income markets. This includes design of credit products, logistics, post-sales services and monitoring. A business concept will be established for the participating three Ethiopian microfinance institutions with over 130,000 current clients. Once established, the business concept can be extended to other institutions in Ethiopia as well as to other developing markets with similar needs.
The Nordic Climate Facility is funded by the Nordic Development Fund (NDF) and administered by the Nordic Environment Finance Corporation (NEFCO). The NCF provides financing for climate related projects in low-income countries. The NCF has 51 projects in various stages in 18 developing countries. The total budget for the three new projects is EUR 1.3 million, of which about 60% is covered by NCF and the rest by the partners.
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