NEFCO administers a range of different funds for a variety of purposes.
A brief description of the main funds is found below.

NEFCO Investment Fund

The Investment fund amounts to approximately 114 MEUR. The fund provides loans and equity financing. In some cases subordinated loans and loans with equity features can also be provided. The loans are from medium to long term, and are provided at market conditions.

Nordic Environmental Development fund – NMF

Through this fund, originally established by the Nordic Ministers of Environment in 1995, NEFCO is endeavouring to support the realization of projects that otherwise would not materialize or could be realized only later in the future. Local participation in the financing is required. Contributions from the fund can be provided as grants for the procurement of goods or services (cash subsidies) or to reduce the borrower's debt service costs. The maximum grant is one-third of the total project cost. The capacity of the fund is approximately DKK 300 million.

Environmental Hot Spots in the Barents Region

NEFCO has a special mandate to work with environmental issues and projects in the Arctic and the Barents regions. One of the important financial tools for doing this is the Barents Hot Spots Facility (BHSF), which is managed by NEFCO on behalf of the Governments of Finland, Iceland, Norway and Sweden.

Carbon Finance and Funds

The Baltic Sea Region Testing Ground Facility (TGF), is a fund, which provides financial assistance to projects, primarily by purchasing emission reduction credits. The TGF was established at the end of December 2003 by the governments of Denmark, Finland, Iceland, Norway and Sweden, pledging an aggregate capital of € 10 million. In 2004, Germany committed further € 5 million. The TGF will invest in projects with a potential for delivering cost-effective ERUs and AAUs for the account of the investors.

NEFCO Carbon Fund (NeCF)

The NEFCO Carbon Fund (NeCF) is a global carbon fund based on a Public Private Partnership model, launched in April 2008. Vested in the form of a trust fund administered by the Nordic Environment Finance Corporation, it is an instrument for purchasing greenhouse gas emission reductions under the joint implementation (JI) and clean development mechanism (CDM). 

Arctic Council Project Support Instrument

In March 2005, the Arctic Council established the Project Support Instrument (PSI), a financial initiative that aims to focus on actions preventing pollution of the Arctic. NEFCO
was appointed as the Fund Manager. The PSI is a mechanism for financing specific priority projects already approved by the Arctic Council. The intention is to invite interested Arctic Council member states, observers and others to pledge contributions to the Arctic Council Project Support Instrument.

Project Specific Funds

NEFCO administers several special purpose funds on behalf of different donors, for the specific support of certain projects. Among the list of donors to these project specific funds are the Nordic countries, the Dutch Government, the Nordic Council of Ministers, EU Phare (the enlargement assistance programme), the Swedish Energy Agency and the Global Environmental Fund (GEF) through the Helsinki Commission (HELCOM). NEFCO has for these project specific funds been assigned a total of EUR 83.3 million, of which EUR 23.4 million represent completed funds.