NEFCO increases funds for cleaner production in Eastern Europe

The Nordic Environment Finance Corporation NEFCO’s board of directors has decided to replenish the corporation’s facility for cleaner production by 4 million euros. The decision was made today during NEFCO’s board meeting in Saint Petersburg, Russia.

The facility for cleaner production was established in 1997 to promote technological investments in industrial projects in order to curb the emission of harmful substances into the environment. The facility can finance up to 350,000 euros or 90 per cent of the investment cost for such projects in the form of subsidized loans.

Since the establishment of the facility, NEFCO has granted loans worth 13.8 million euros for 63 projects. The facility’s current geographical focus is mainly on Russia and Ukraine where the most recent projects have been the upgrading of heating substations and the installation of energy efficient heating and ventilation systems on pig farms in Ukraine. 

According to NEFCO’s environmental status report, last year the projects financed by the facility for cleaner production reduced carbon dioxide emissions by 52,500 tonnes. The corresponding figure for the reduction of sulphur oxide emissions during the same period was 1,916 tonnes. 

“Because of the reluctance of commercial banks to grant credit for upgrading industrial production facilities during the current economic recession, the facility has generated tremendous interest in the countries where we operate. The main attraction is the fact that NEFCO loan repayments are directly tied to the savings realised from the projects as a result of the energy efficiency measures as well as other resource saving measures,” says NEFCO’s investment manager, Maria Maliniemi. 

”The facility for cleaner production has been a success story and the emission reductions generated through these projects have been cost efficient. The replenishment of this facility enables us to invest in a wide range of similar projects in Russia, Ukraine and Belarus, says NEFCO’s managing director, Magnus Rystedt. 

NEFCO is an international financial institution owned by the five Nordic countries that mainly finances investments and projects in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects for  the Nordic region. NEFCO currently administers funds valued at some 353 million euros. The climate related projects financed by NEFCO last year reduced the carbon dioxide emissions by 1.5 million tonnes.  www.nefco.org

For more information, please contact:
Magnus Rystedt, Managing Director, NEFCO, +358 50 329 6224
Maria Maliniemi, Investment Manager, NEFCO, +358 50 539 4428
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045