© WW-Viet Nam
DFCD – GREEN ECONOMIC GROWTH SOLUTION

The Dutch Fund for Climate and Development (DFCD) enables investment that is aimed at improving the wellbeing, economic prospects and livelihoods of vulnerable groups of people, especially women and young people whilst working to enhance the health of critical ecosystems in the region, from river basins to tropical rainforests, marshlands, and mangroves.

What is DFCD?

On the 12th of December 2015, the Paris Agreement was signed by world leaders with the goal of minimizing the impacts of climate change and accelerating and intensifying the actions and investments needed for a sustainable low-carbon future. As part of its responses to the Paris Agreement commitments, the Dutch Government has made available €160 million, through the Dutch Fund for Climate and Development (DFCD) to increase the resilience of communities and ecosystems most vulnerable to climate change. The Dutch Development Bank FMO, the Netherlands Development Organisation (SNV) and the Worldwide Fund for Nature (WWF-Netherlands), forming a consortium, have been chosen to manage the fund. This pioneering partnership of NGOs and financiers aims to help developing countries, including Viet Nam, build climate-resilient economies.

The DFCD consortium aims to attract and deploy public and private capital in well-designed and impactful projects that will support climate adaptation and mitigation. The consortium’s activities will also help protect communities and cities from the increasing frequency of extreme weather events and benefit weakening biodiversity in areas that provide people with water, food, medicine and economic opportunity.

© WWF-Viet Nam / Thanh The Vinh

What impact goals does the DFCD have?

The DFCD will focus on a set of high impact investment themes within four key Rio Marker 02 sectors, all of which are critical to tackling climate change and achieving the Sustainable Development Goals:

A landscape approach

DFCD will deliver its goal through bankable projects, which not only have a positive environmental impact but also generate a positive financial return for stakeholders. They can be supported by WWF, financed and owned by the private sector.

The goals are to make positive changes at a landscape level, tackle multiple issues and ensure achievements are sustainable over long periods of time. This approach will involve stakeholders in a landscape aimed to reconcile competing for social, economic and environmental objectives. It is a way of managing the landscape that involves collaboration among multiple stakeholders, with the purpose of achieving sustainable landscapes. In Viet Nam, Central Annamites and Mekong Delta are the selected landscapes for the programme.

How DFCD works?

BUSINESS DEVELOPMENT

We depend on stakeholders to source and develop viable projects, and invite them to approach us with existing and new project ideas that contribute to the resilience of a landscape and comply with our investment criteria.

CO-INVEST

The DFCD consortium is actively seeking equity and debt co-investors in the originated projects.

ENABLING ENVIRONMENT

The impact and speed of development of projects can be enhanced by creating the right enabling conditions. We aim to work with various stakeholders to establish governance and regulatory frameworks, gain access to data, identify related non-bankable projects, collaborate with local communities and networks of entrepreneurs, etc.

SHARED UNDERSTANDING

The origination facility aims to develop projects in an inclusive manner, built on a shared understanding of pressures and interventions. We coordinate with governments and CSOs to further understand the needs of all stakeholders, with local communities in particular.

GRANTS

The challenges faced by climate change cannot be addressed by DFCD funding alone. Support from other grants and concessional funds is required to leverage scalable impact.

Central Annamites Landscape

Located in Southeast Asia, the Central Annamites region is considered by many to be an important biodiversity corridor, one of the largest continuous natural forest areas in continental Asia.

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Mekong Delta Landscape

The Mekong Delta is home to almost 18 million people and is also the primary rice production and fishery area for the whole country, accounting for 50% of the total rice production. It is however also vulnerable to significant climate change impacts such as soil salinity, drought, land subsidence, and biodiversity loss.

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