1. Since NEFCO only finances projects with an environmental effect, what according to NEFCO, constitutes such an effect?
In order to be eligible for NEFCO, a project must have a positive environmental effect that is cost effective and relevant. "Cost effective" generally means that the abatement cost of a unit per tonne is less than in the Nordic countries. "Relevant"generally refers to the reductions in the environmental load being quantifiable and of a substantial nature or setting a replicable example.

2. What kind of financing can NEFCO provide?
NEFCO provides risk financing in various forms. Loans, loans with equity features and pure equity financing can be provided through NEFCOs Investment Fund (for more information), soft loans and in some cases revolving grants or grants through the Nordic Environmental Development Fund and carbon financing through the Testing Ground Facility.

3. Can NEFCO provide grant financing?
In exceptional cases grant financing may be provided through a special fund called the Nordic Environmental Development Fund. (For more information.)

4. Can NEFCO finance carbon reduction (climate change) projects?
Yes. NEFCO manages the Baltic Sea Region Testing Ground Facility (TGF). The TGF is a purchase fund, with its purpose to acquire carbon credits on behalf of its owners. In addition, many carbon reduction projects are eligible for other NEFCO financing.

5. What conditions does NEFCO offer for its loans and/or investments?
NEFCO's maximum commitment per project generally amounts to EUR 3 Million. The equity investments can newer exceed 49% of a projects capital stock. NEFCO sets its interest rates according to market terms, which in practice means that loans are priced with respect to the risk.

6. How do you apply for NEFCO financing?
NEFCO does not bare application forms but requires a project description. A presentation of the general application procedure can be found here.

7. In which countries can NEFCO finance projects?
NEFCO's area of operations includes Russia in particular the north western parts, Ukraine, Belarus and the Baltic States.

8. NEFCO is owned by the Nordic Countries. Do you require participation of Nordic companies etc. in your projects?
If the project is financed through NEFCO's Investment Fund (for more information) a Nordic partner or other long term Nordic involvement is usually required.

9. What are NEFCO's procurement requirements?
The procurement guidelines can be found here.

10. What is the "Barents Hot Spot" list?
The list is an inventory of investment projects in the Russian part of the Barents region, which are of high environmental priority. The list consists of 42 "Hot Spots" and 52 investment proposals. The original report can be found here. A review of the report conducted in September 2004 can be viewed here. NEFCO manages a special Barents Hot Spots Facility, which has been set up to provide financing for project development in relation to these projects.