One of the principal challenges to implementing a climate change project is finding adequate sources of financing. The following is a list of nine options for financing public, private and civil society projects:
1. Regional Fund for Agricultural Technology
This fund, Fondo Regional de Tecnologia Agropecuaria, (FONTAGRO, finances projects for scientific and technological investigation and innovation in the agricultural sector, with the goal of contributing to the reduction of poverty, improving the competitiveness of agricultural food chains and the sustainable management of natural resources in Latin America and the Caribbean.
The fund functions as a competitive and transparent mechanism that finances regional projects that must involve the participation of at least two member countries. Proposals are evaluated by specialists who are not part of the fund, using criteria such as the project’s economic, social and environmental impact, technical quality and institutional capacity.
This fund finances projects averaging US$400.00.
2. Energy Environmental Partnership (EEP)
The EEP is a program run by the foreign ministry of Finland and designed to increase access to modern energy services and promote renewable energy and energy efficiency.
It offers grants for the development or expansion of inclusive business models and supplies seed capital for the initial stages of projects for sustainable energy with local or international partners.
The EEP operates in the Andean region (Peru, Ecuador, Colombia, Bolivia), Central America (Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama) and the Dominican Republic.
The maximum financing per project is 200,000 euros.
3. The Norwegian Investment Fund for Developing Countries (Norfund)
Norfund invests in projects implemented by sustainable enterprises in developing countries. Norfund investments aim to promote the development of new businesses and contribute to economic growth and the reduction of poverty.
The eligible countries in Latin America are Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
4. Infrastructure Fund (InfraFund)
InfraFund is a fast-disbursing fund that helps public, private and mixed capital partnerships in Latin America and the Caribbean to identify, develop and prepare projects for sustainable transportation infrastructure with a high probability of achieving its financial closure. InfraFund also promotes the establishments of public-private partnerships for providing transportation infrastructure.
Projects can receive a maximum grant of US$1.5 million, and there’s a fast approval process for proposals seeking less than US$500,000.
5. Global Climate Change Alliance (GCCA)
The GCCA acts as a platform for dialogue and the interchange of experiences between the European Union and partner developing countries on climate policies and practical approaches to integrating climate change in development strategies. The results of the dialogue and the exchange of information fuel the discussions about the post-2012 climate agreement under the United Nations Framework Convention on Climate Change.
The total funding available is 139.6 million euros
6. The Climate and Development Knowledge Network (CDKN)
This network, supported by the governments of the United Kingdom and the Netherlands, assists decision makers in the design and implementation of development strategies on climate change through a combination of investigation, consultancy services and the exchange of knowledge in support of local management policies in the public, private and non-government sectors.
The financing available is £500,000 per project (about US$857,000) although the majority of the awards are between £25,000 (US$42,800) and £250,000 (US$428,000).
7. Adaptation for Smallholder Agriculture Programme (ASAP)
This program for small farmers was launched by the International Fund for Agricultural Development (IFAD) to help small farmers incorporate climate and environmental considerations into their activities. It seeks adaptions and offers grants from various donors totaling approximately US$1 billion per year.
8. Fondo Amazonia of Brazil’s National Development Bank
The Amazon Fund seeks to raise donations for non-reimbursable investments designed to prevent, control and combat deforestation, as well as to promote conservation and the sustainable use of the forests in the Amazon Biome. The fund also supports the development of systems to monitor and control deforestation in other ecosystems in Brazil and other tropical countries.
The fund has an allocation of $1 billion.
9. UNDP Fund// Millenium Development Goals of Spain.
This fund finances collaborative activities that complement some of the United Nations programs on the challenges of multidimensional development. In the area of climate change, the fund facilitates access to new financing mechanisms and supports adaptive activities.
The fund’s objectives are:
Support policies and programs that can generate a significant and measurable impact on some of the Millennium Development Goals.
Finance experimentation and the expansion of successful pilot programs.
Act as a catalyst for innovative development practices.
Adopt mechanisms that improve the quality of the assistance for development.
The total financing available in this program is US$90 million.
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