Natural Capital Financing Facility (NCFF)

Natural Capital Financing Facility (NCFF)

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 NCFF will contribute to meeting the objectives set out by LIFE, in particular:

  • nature and biodiversity
  • climate change adaptation

The Facility will be managed by the EIB. Applications for funding under the NCFF will follow the EIB’s standard process as outlined in the section Applying for a Loan. For all funding requests, please contact the EIB directly by sending an email to

What does the NCFF do?

The NCFF will support projects that are focused on biodiversity and ecosystem services (BES).

Projects supported by NCFF will promote the conservation, restoration, management and enhancement of natural capital which can benefit biodiversity and climate adaptation. This includes ecosystem-based solutions to challenges related to land, soil, forestry, agriculture, water and waste.

Project examples include:

  • Green infrastructure (e.g. green roofs, green walls, ecosystem-based rainwater collection/water reuse systems, flood protection and erosion control).
  • Payment for ecosystem services (e.g. programmes to protect and enhance forestry, biodiversity, to reduce water or soil pollution).
  • Biodiversity offsets / compensation beyond legal requirements (e.g. compensation pools for on-site and off-site compensation projects).
  • Pro-biodiversity and adaptation businesses (e.g. sustainable forestry, agriculture, aquaculture, eco-tourism).

What are the objectives of the NCFF?

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 NCFF will employ a range of different financing options for different projects, including debt and equity financing as well as direct and intermediated funding.

These financing options will be tested in order to identify the most suitable approach, aligning funding solutions to the specific needs of the biodiversity and climate adaptation sectors.

How will the NCFF work?

The pilot phase of the NCFF project will last 3 years (2014-2017) with up to EUR 125 million being made available for investments in 9-12 operations. Depending on the project types and the specific conditions within them, the NCFF will allow the provision of direct and/or intermediated debt financing. A further EUR 10 million will be provided for technical assistance in the form of a Support Facility. This will be made available to eligible final recipients and/or financial intermediaries for project preparation, implementation, monitoring and evaluation.

Targeted projects must be located in the EU-28 and ideally have a size of EUR 5-15 million.

FAQ - NCFF Support Facility [EN]
NCFF contact form - for interested project initiators [EN]
How to make use of the NCFF within an EIB-funded Urban Framework Loan [EN]
How to make use of the NCFF within an EIB-funded Social or Affordable Housing Investment Programme [EN]
NCFF for Cities [EN]