Highlights
In 2025, the Dutch Fund for Climate and Development (DFCD) continued to advance its mission of mobilizing climate finance for projects that strengthen climate resilience and promote sustainable development in emerging markets. Through collaborative efforts across the consortium, DFCD supported innovative solutions that address both mitigation and adaptation challenges, while fostering inclusive economic growth. Key achievements included expanding the pipeline of climate-smart investments, accelerating project implementation in priority sectors such as water, agriculture, and sustainable ecosystems, and leveraging partnerships to maximize impact. These results underscore DFCD’s commitment to driving transformative change and contributing to global climate goals, laying a strong foundation for continued progress in 2026.
WWF and SNV - The Origination Facility
In 2025, SNV and WWF strengthened the Origination Facility’s role in building a robust pipeline of climate adaptation investments. With a portfolio of 60+ OF projects, project quality, adaptation impact and investment readiness improved. Collaboration with FMO and CFM led to 14 approved corporate investments, including 7 joint deals. The Facility now acts as both a project originator and a de‑risking partner, enhancing the quality and depth of climate adaptation impact.
Consortium collaboration intensified alongside efforts to mobilize resources beyond 2027. Building on this momentum, WWF launched the Norad-funded Nectar Fund (February 2026) to complement DFCD, diversify funding, and scale a proven model for originating bankable, climate-resilient investments.
CFM - The Water Facility
On March 18, 2025, Climate Investor Two (CI2), with anchor funding from the DFCD, reached the final close of the fund. Since the first closing in 2021, Climate Fund Managers has been diligently working on the capitalization of CI2 Construction Equity Fund (or CEF2). These efforts intensified in 2024, culminating in the successful final closing on March 18, 2025 at $1.065 billion. With new commitments of $190 million from global investors plus a €205 million EFSD+ guarantee from the European Union, CI2 surpasses its initial $1 billion target, becoming the largest climate adaptation infrastructure fund focused on emerging markets globally.
FMO - The Land Use Facility
In 2025, FMO strengthened its leadership in climate adaptation through the DFCD Aya program, scaling the Land Use Facility to mobilize significant capital for nature-based solutions and sustainable land use. Backed by the European Commission’s EFSD+ guarantee and Dutch government support, DFCD Aya expanded its portfolio with strategic investments in agroforestry, climate-resilient food systems, and biodiversity conservation across Africa, Asia, and Latin America. Key milestones included advancing projects under the Global Gateway agenda, such as sustainable shrimp aquaculture in Vietnam and forestry initiatives in Uganda and Latin America, while maintaining a strong focus on climate adaptation and mitigation. The facility deployed financing to catalyze scalable solutions, supported by technical assistance to enhance environmental and social impact. These efforts underscore FMO’s commitment to driving systemic change in land use and food security, positioning DFCD Aya as a cornerstone for climate resilience and inclusive growth.