Nordic Environment Finance Corporation (NEFCO)

Policy Objective:

NEFCO is an environmental financing institution, which finances projects in Estonia, Latvia, Lithuania, Russia, Ukraine and Belorussia. NEFCO´s purpose is to facilitate the implementation of environmentally beneficial projects in the neighbouring region, with transboundary effects, which also benefit the Nordic region.

Environmental requirements:

The main criteria for NEFCO´s participation in projects are that they should be carried out in one of NEFCO´s countries of operation and that the projects have relevant quantifiable environmental effects, i.e. projects that lead to reduction of pollution in the Baltic Sea and the Barents Sea or reduction of transboundary airborne pollution. All projects are subjected to an environmental appraisal against previously established guidelines (the environmental benefit should be greater at less cost than if the investment was made in a Nordic country) including EIA and EA.

Legal compliance:

Projects funded by NEFCO have to comply with the project country's environmental legislation and applicable international environmental conventions and standards. Where applicable projects are strictly subjected to the application of the European environmental policy standards and the Community aquis. If EU-standards are not applicable Best Available Technology, economically feasible is adopted, since NEFCO financed projects are of small size. All projects financed by NEFCO shall have obtained all necessary permits and fulfill NEFCO´s financing criteria, including annual environmental reporting by the client for the duration of the loan. If the environmental criteria of a project are not fulfilled NEFCO will refrain from financing a project even if it would be economically feasible.