The Nordic Environmental Development Fund (NMF) was set up to provide concessional financing for environmental projects. Established in 1995 by the Nordic countries in partnership with the Nordic Council of Ministers, the Fund has been allocated approximately EUR 50 million since its inception. Concessional financing initiatives include revolving credit programmes and other innovative forms of support. Finance is provided to projects that have been identified as having a high environmental priority. The Fund runs several programmes with distinctly different aims. The Revolving Facility for Cleaner Production investments provides loans directly to enterprises implementing cleaner production programmes, while the Energy Savings Programme and Energy Savings Credit Facility support a range of small energy-efficiency investments. The Agri Environment Credit Facility provides financing for environmental investments on farms.

• Concessional financing for high priority environmental projects
• Supplementing other financing
• Supporting the establishment of projects that might not otherwise materialise or could only be realised in the future
• Total funds to 2007: approx. DKK 370 million (approx. EUR 50 million)
• Countries of operation:
  Northwest Russia, Ukraine and Belarus

Energy Saving Credits – ESC

The Energy Saving Credits Facility offers subsidized financing for energy saving measures in social objects comprising schools, kindergartens, hospitals, sport facilities and street lighting in Russian and Ukrainian municipalities. The small scale projects are expected to result in significant environmental effects in the form of reduced emissions to air. An eligible investment should generate annual savings of at least 25 % of the investment cost as the repayment is tied directly to the savings of the investment.

Cleaner Production Credits

The Revolving Facility for Cleaner Production provides loans for small scale projects that reduce risk to humans and the environment. The loans range from approximately EUR 50 000 to 350 000 and have a fixed interest rate. The projects are required to have a rapid pay-back. (More information, pdf-file) (More information in Russian, pdf-file)

Agri Credit Facility

As nutrients run off from agricultural production is one of the main sources of pollution of the Baltic Sea, NEFCO offers small scale financing for investments in manure handling systems at farms in NW Russia and the Baltic countries. The facility was established in connection with the Baltic Sea Regional Project (BSRP), which was initiated by the World Bank based on funding from the Global Environmental Fund (GEF) with a participation of the Helsinki Commission (HELCOM) and the Swedish University of Agricultural Sciences (SLU) and Local Implementation Unit (LIU) hosted by Local Agricultural Advisory Service. The loans are on favorable terms with a repayment period of up to 10 years. NEFCO is also the fund manager for the GEF funding.