Danish Climate Envelope

Ministry of Foreign Affairs of Denmark

The overall objective for the Climate Envelope is threefold: It is
to 1) Assist developing countries to adapt to climate change; 2)
Assist developing countries with the transition to a low carbon
economy; and 3) Prepare developing countries to enter into and
implement the new global climate agreement, agreed at COP21 in
Paris with a view to sustainable development.
The specific impact that is targeted by the Climate Envelope is
the following:
• Reduced greenhouse gas emissions
• Increased climate resilience specifically for vulnerable and
marginalised groups
To achieve this impact Climate Envelope interventions will address
the following outcomes:
• Strengthened national and community-level climate change
policies, planning frameworks and information systems
• Scale up of climate-relevant technologies, infrastructure and
markets
• More consolidated, effective and ambitious international architecture.
The envelope is guided by a set of principles, amongst others a balance nbetween adaptation and mitigation and a combination of bilateral and multilateral assistance. In addition Danish strongholds, competences and value adding is of importance, leveraging of private finance and innovation is key, and priority is given to interventions which are aiming for transformational change.

Open to Applications : 
No
Application Time Frame : 

The climate envelope interventions are agreed on an annual basis. No formal calls for proposals.

Climate Objective : 
Both Mitigation and Adaptation
Administrator Type : 
National Government Entity
Financial Instruments Offered : 
Grants
Direct Access : 
No
Fund Size : 

500 million DKK (67 million euro) in 2015. Volume varies from year to year, app. 250-500 million DKK per year.

Financing Award : 
Between 1 and 10 million USD, Greater than 10 million USD
Trustee : 
Not specified
Implementing Entity : 

Embassies manage bilateral portfolio with implementing government or non-government partner. Multilateral partners are accountable for contributions to multilateral programmes/mechanisms.

Steps to Access & Application Procedure

none

Organizational and Decision Making Structure

The funds are administered by the Danish Ministry of Foreign Affairs, but the allocation suggestions are prepared by the Ministry of Foreign Affairs and the Ministry of Energy, Utilities and Climate in a joint effort followed by approval by the Danish Government. Each contribution will have its own decision-making structure in the form of steering committees, council, boards etc.

Monitoring and Reporting Procedures

A Climate Envelope monitoring system guided by the Theory of Change of the envelope. It largely alligns to the draft Performance and Measurement Framework developed by the Green Climate Fund.

Co-financing Requirements (if applicable)

None, however leverage of finance is a guiding principle in the selection and design of contributions

Other Eligibility Criteria Beyond Geography and Income

The Climate Envelope is equally divided between a Poverty Frame (PF) and a Global Frame (GF). Activities financed from PF are primarily aimed at adaptation and mitigation initiatives in low income countries incl. the existing partner countries of Denmark, and follow the income limits stipulated by the Danida guidelines. These activities are prepared by the Ministry of Foreign Affairs. Activities financed from the GF are targeted at mitigating
activities, mainly in fast-growing, emerging economies as the marginal return in terms of CO2 reductions is higher in middle income countries than in low income countries. These activities can be implemented in all countries on the OECD-DAC list, and they are proposed by the Ministry of Climate, Energy and Building. The Ministry of Finance and the Prime Minister’s Office need to approve the list of activities proposed through an endorsement by the Government’s Coordination Committee.

Contact Information

http://um.dk/en/danida-en/activities/strategic/green-growth/styrket-miljoe-og-klimaindsats-i-udviklingslandene/

Mr. Niels Hedegaard, niejor@um.dk
Ministry of Foreign Affairs/Danida
Asiatisk Plads 2
1448 Copenhagen K

Last Updated : 
17.11.16