The Carbon Finance and Funds (CFF) operations of NEFCO expanded in both volume and scope in 2009, against a backdrop of difficult economic conditions globally and political uncertainty regarding international climate policy.

The NEFCO Carbon Fund (NeCF), now with financial resources exceeding 100 million euro, has been active in sustainable energy investments in Asia and Africa. NEFCO's pioneering Baltic Sea Region Testing Ground Facility (TGF), a 35-million-euro regional carbon finance facility, concluded its active procurement and entered fund administration phase in 2009.

The Nordic Environment Finance Corporation’s financial accounts for 2009 show encouraging  environmental results. The corporation’s environmental status report indicates that, compared to 2008, the emission of environmentally harmful substances in projects co-financed by NEFCO decreased substantially.

Overall, there were considerable reductions in emissions of carbon, sulphur and nitrogen oxides, phosphorus as well as nitrogen.

The Nordic Environment Finance Corporation’s financial accounts for 2009 show encouraging environmental results. The corporation’s environmental status report indicates that, compared to 2008, the emission of environmentally hazardous substances in projects co-financed by NEFCO decreased substantially. Overall, there were considerable reductions in emissions of carbon, sulphur and nitrogen oxides, phosphorus as well as nitrogen.

The Nordic Climate Facility, launched in autumn 2009, has attracted great interest. The response to the first call for proposals was larger than expected. A total of 138 applications were received, of which 33 projects have been shortlisted for full proposals.

The facility supports technology and know-how exchange between the Nordic countries and low-income countries in the area of climate change.

NEFCO has granted a new loan worth EUR 350,000 for financing cleaner production technology at OJSC Kiev Margarine Factory in Ukraine.

The loan, which will be disbursed from the corporation’s Facility for Cleaner Production, is intended to refurbish the factory’s production line for edible fats and oils and reduce energy consumption by some 60,000 kWh per year.

Jūrmala’s deserted streets are not at their most charming during winter. But in summer, this celebrated resort is transformed into something of Latvia’s own Riviera, its fine, sandy shoreline and shallow waters inviting beachgoers in for a swim. With its 55,000 inhabitants and wooden houses, the city is also a popular destination for those living in nearby Riga. The local train to Jūrmala only takes around 30 minutes.

Ahead of the Baltic Sea Action Summit, NEFCO and the Nordic Investment Bank (NIB), have committed to actively supporting interested parties in order to make Baltic Sea projects bankable.

The objective is to develop and implement concrete, cost-efficient investments that lead to a reduction of pollution in the Baltic Sea.

NEFCO has approved a loan for cleaner production at the Yarychiv Biscuit Factory. The factory, which is situated near Lviv in western Ukraine, accounts for 2.1 per cent of the country’s total biscuit production. 

The loan, which amounts to EUR 350,000, has been disbursed from NEFCO’s facility for cleaner production. The purpose of the loan is to replace the existing sugar biscuit production line, which uses 105 gas burners, with more energy efficient and environmentally sound equipment. 

The Nordic Environment Finance Corporation (NEFCO) managed Baltic Sea Region Testing Ground Facility (TGF) has procured emission reduction units from an industrial energy efficiency project in eastern Ukraine under the Joint Implementation mechanism of the Kyoto Protocol. The TGF buys carbon credits on behalf of its investors, thus helping governments and companies to meet greenhouse gas emission reduction targets under the Kyoto Protocol and the EU Emissions Trading Scheme.

Two NEFCO projects in Estonia and Lithuania have qualified as Joint Implementation (JI) projects under the Kyoto Protocol. A landfill gas-to-energy project in Lithuania reached final JI status under the UN-regulated international track (Track 2).

As of January 2010, only sixteen projects worldwide have secured final JI status under Track 2, including three NEFCO projects. In addition, NEFCO’s wind farm project was the sixth JI project to achieve final JI status through Estonia’s national track (Track 1).