Report of the Board of Directors 2014 03

Board of Directors 11

Control Committee 11

Management and Staff 11

Income Statement 13

Balance Sheet 14

Changes in Equity 15

Cash Flow Statement 15

Notes to the Financial Statements 17

Auditors’ Report 25

Grant Portfolio 27

INDEX

EcoMicro: Green Finance for All. EcoMicro is a technical cooperation program co-financed by IDB’s Multilateral Investment Fund (MIF) and the Nordic Development Fund.

Designed for Latin American and Caribbean microfinance institutions (MFIs), its purpose is to develop green finance products so that micro, small, and medium enterprises and low-income households can access clean energy, increase their energy efficiency, or adapt to climate change.

This innovative program offers solutions not only for MFI clients, but also for MFIs themselves. EcoMicro helps MFIs to green their operations and to reduce their loan portfolios’ vulnerability to climate change.

EcoMicro was selected as a “2014 Lighthouse Activity” by the UNFCCC’s Momentum for Change Initiative that highlights shining examples of climate solutions.

UNFCCC Executive Secretary Christiana Figueres: “These activities are assisting communities, cities, businesses, govern-ments and institutions to move towards a low-carbon, highly resilient future.”

Climate finance readiness. Africa is one of the priorities for the allocation of new dedicated climate finance resources (e.g. Green Climate Fund). But institutional capacity in the region for developing programs and projects that harness adaptation and mitigation financing is limited and uneven.

The fact that Africa benefited very little from the Clean Development Mechanism (CDM) demonstrates the need for the continent to get ready for climate finance and scale it up for the benefit of sustainable development.

NDF and World Bank support an initiative to provide practical programming experiences and capacity development as a contribution to enhance the region’s readiness for climate action. The project uses the recent replen-ishment of the International Development Association (IDA17) as mechanism to build climate readiness and capacity.

Individual countries will be strengthened in their endeavour to develop well-informed, coherent policies and to work efficiently across sectors and disciplines so they can build long-term resilience, reduce risk and avoid rising costs relating to climate change and disasters.

NDF is in a dialogue with other regional partners in order to support similar initiatives.

African Water Facility: Special call for climate proposals. The African Water Facility is an initiative led by the African Ministers’ Council on Water to mobilise resources to finance water resources development activities in Africa. The facility is hosted and managed by the African Development Bank.

NDF is co-financing a special call for proposals to prepare new climate-related water invest-ment projects. Part of the NDF support consists of long-term technical assistance to strengthen climate change capacity inside the African Water Facility.

The special call for climate proposals was launched during the Stockholm Water Week. When the call closed the African Water Facility had received a total of 234 proposals. The call was open for all African countries and applications were received from 31 countries. It is expected that 10-12 proposals will be selected for financing.

Total financing for the special call is EUR 16 million of which African Water Facility provides EUR 10 million and NDF EUR 6 million.

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