Paving the way for green growth and climate projects
The Nordic Environment Finance Corporation (NEFCO) is an international financial institution (IFI) established in 1990 through an intergovernmental treaty between sovereign states, the Nordic countries Denmark, Finland, Iceland, Norway and Sweden. Our objective is to generate positive environmental impact of interest to the Nordic countries. We do this by facilitating investments related to green growth and climate mitigation and adaptation globally, with a particular focus on Eastern Europe, as well as the Baltic Sea, Arctic and Barents regions.
Various financing options available
We finance and implement small and medium-sized environmental projects through loans, grants, buyer credits and equity-type instruments. We have financing options for both the private and the public sector. Our operations include projects to improve energy-efficiency, clean energy production, and wastewater treatment, among others.
Over the years, we have gained practical experience and expertise of financing projects mainly in Eastern Europe and emerging markets in other parts of the world, including the least developed countries (LDCs). Today, we have a significant network within the green community and a proven ability to connect stakeholders and various financiers to relevant projects.
Therefore, we can arrange financing to green projects both through our own funds and the trust funds that we manage. We work in close cooperation with donors, other financial institutions and customers to create blended finance opportunities, catalyse funds and projects, and enable projects to be implemented utilising best practices from the Nordic countries.
Extensive network within the green community
NEFCO works closely with the environmental authorities and other governmental institutions, as well as business, trade and innovation councils of its Nordic owner countries.
Our fund management includes assignments from countries, organisations and, to some extent, from private companies. We also work in close relationship with a number of Nordic and International institutions, including the other Nordic financial institutions, European Union, the United Nations and the Green Climate Fund, as well as with state and local authorities in the project countries.
Guidelines and policies
As we only finance projects that will generate positive environmental and climate-related impact, there are tight restrictions and rules on how we select projects for financing and how we use and monitor funds. In order to mitigate potential misconduct we have set guidelines both for our internal processes and for our cooperation partners and beneficiaries to follow.
How possible sanctions affect our activities
NEFCO’s own funds and funds managed by it can only be used to finance projects which benefit the environment and cannot be used to support any type of sanctioned activities. Read more >>