Dutch Fund for Climate and Development (DFCD)

SNV has partnered with the World Wide Fund for Nature Netherlands (WWF-NL), Climate Fund Managers (CFM), and FMO, the Dutch entrepreneurial development bank (lead organisation), to manage the Dutch Fund for Climate and Development (DFCD). 

Investments made by the DFCD consortium parties seek to improve the well-being, economic prospects, and livelihoods of vulnerable groups—particularly women and children—and enhance the health of critical ecosystems, from water basins to rivers, tropical rainforests, and marshland. The DFCD’s activities help protect communities and cities from the increasing frequency of extreme weather events and strengthen biodiversity in areas that provide people with water, food, and economic opportunities. 

 The Netherlands Ministry for Foreign Affairs has allocated €200 million for the DFCD from 2019 to 2027, with a target of impact by 2037. 

The challenge 

Climate change poses an unprecedented threat to humanity in the twenty-first century. We need to adapt our systems to climate change and increase resilience amongst people living in poverty and vulnerable groups. There has been a notable shortfall in funding and a dominant focus on climate mitigation by global financing parties. To overcome the funding gap, we must stimulate private sector investments in climate change adaptation innovations and scale viable business cases. Within this context, SNV’s role in co-managing the DFCD’s Origination Facility seeks to identify projects and carry out (pre-) feasibility development activities. In its second phase (2024-2027), there is a strengthened emphasis on gender and social inclusion (GESI), climate adaptation, biodiversity and food securit

The approach  

To achieve the DFCD mandate, the consortium is structured in three separate but operationally linked ‘Facilities’, each with a unique role across the project lifecycle, each with a unique thematic sub-sector focus: 

1. Origination Facility: led by SNV and WWF 

2. Land-Use Facility: led by FMO 

3. Water Facility: led by CFM 

SNV provides technical assistance and grant funding to de-risk business cases through the Origination Facility. 

Anticipated project outcomes

The key objective is climate-resilient growth in developing countries, with the following anticipated project outcomes: 

1. Improved ecosystem health (nature & biodiversity) 

2. Climate-resilient land use and ecosystems 

3. Climate-resilient water supply and sanitation 

4. Climate-resilient food & nutrition security 

5. Improved well-being, livelihoods and economic prospects 

6. Increased access to climate-responsive productive resources & climate-related decision-making powers for women and vulnerable groups.