The multilateral development finance institution Nordic Development Fund, NDF, is well-functioning and adds value from an international perspective. However, it needs reforms to uphold its relevance. This concludes the evaluation Joint Nordic Organisational Assessment of the Nordic Development Fund, NDF.
A decade ago, the Nordic Development Fund, NDF, received a new mandate: climate financing. Its’ investments need to contribute to reduced CO2 emissions or to climate change adaptation ever since. The fund and its program activities have now been evaluated, upon request from five Nordic evaluation units and organisations. The EBA has coordinated the evaluation.
It shows that the NDF – despite its relative anonymity – is well functioning and adds value. However, in order to give grounds for a necessary re-financing, it needs to undertake a number of reforms.
Some of the report’s conclusions:
- The NDF is well-functioning and has good future potential, though, the owners need to contribute more capital if programs are to continue.
- The focus on climate adaptation provides a clear value added, as do the flexible and rapid working methods. The cooperation with multilateral development banks is established and a clear advantage.
- To preserve and develop the strengths of the NDF, a theory of change that provides a clear strategic orientation to the activities needs to be developed as soon as possible.
- The specific challenge fund, the ‘Nordic Climate Facility’, needs to be better integrated into the NDF;
- NDF needs to improve its system for monitoring, evaluation and learning. Knowledge about effects from its investments is currently much too weak.