The Natural Capital Financing Facility (NCFF) is a financial instrument that combines EIB financing and European Commission funding under the LIFE Programme, the EU’s funding instrument for the environment and climate action.

The European Investment Bank (EIB) will provide loans and investments in funds to support projects which promote the preservation of natural capital, including adaptation to climate change, in the Member States. The total budget for the Investment Facility amounts to € 100 – 125 million for 2014-2017. The European Commission contributes € 50 million as a guarantee for the investments and finances a € 10 million support facility.

The NCFF will provide financial support to projects in order to generate revenue or save costs. In doing so, the Facility aims to prove to the market and to potential investors the attractiveness of biodiversity and climate adaptation operations in order to promote sustainable investments from the private sector.

The available funding under the NCFF is expected to allow financing some 9-12 projects over the 2015-2017 period.

The NCFF will support projects working on the following themes:

• Payments for Ecosystem Services
• Green Infrastructure
• Innovative pro-biodiversity and adaptation investments
• Biodiversity offsets

For more information please visit the webpage of the European Investment Bank   http://www.eib.org/products/blending/ncff/index.htm and the webpage of European Commission http://ec.europa.eu/environment/life/funding/financial_instruments/ncff.htm

Related document: http://ec.europa.eu/environment/biodiversity/business/assets/pdf/ncff.pdf