Frequently asked questions
- What is an environmental project? How do I know that my project fulfils your criteria?
- What kind of financing can NEFCO provide?
- Can NEFCO provide grant financing?
- What conditions does NEFCO offer for its loans and/or investments?
- How do I apply for NEFCO financing?
- In which countries can NEFCO finance projects?
- How about EU sanctions and projects in Russia?
- NEFCO is owned by the Nordic countries. Do you require participation of Nordic companies etc. in your projects?
- What are NEFCO’s procurement requirements?
1. What is an environmental project? How do I know that my project fulfils your criteria?
In order to be eligible for NEFCO financing, the project must generate favourable environmental or climate-related results that are cost effective, measurable and of interest to the Nordic countries. A typical NEFCO project can reduce harmful emissions, save energy, improve the usage of raw materials or promote recycling practices. An environmental project can also relate to environmental services or the production of energy efficient equipment and technology. Learn more about our environmental criteria here.
2. What kind of financing can NEFCO provide?
NEFCO provides risk financing in various forms such as loans, buyer credits, grants or equity-type financing. The idea is to bring additionality and enable a catalytic effect to further financing. NEFCO also offers loans on favourable terms to private and public enterprises and municipalities.
3. Can NEFCO provide grant financing?
Yes, NEFCO administers a number of grant financing schemes primarily for feasibility studies and demonstration projects, but also for public sector projects in Ukraine, Belarus, Moldova, Georgia and Armenia.
4. What conditions does NEFCO offer for its loans and/or investments?
Each financing instrument offered by or through NEFCO has specific terms and conditions. For detailed information on these conditions, please contact us.
5. How do I apply for NEFCO financing?
You can apply for NEFCO financing by sending a project enquiry that contains basic information about the purpose of the project, approximate investment costs, a financing plan and information about the applicant’s financial turnover. We recommend that you use this check list when drafting your project enquiry.
6. In which countries can NEFCO finance projects?
As regards NEFCO’s loan and equity financing, we have today a global mandate, with particular focus on Eastern Europe, that is, in Armenia, Belarus, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, Russia, and Ukraine. Our climate funds operate across the world and the Nordic Project Fund (Nopef) can provide funding for supporting the internationalisation of Nordic companies outside the EU and EFTA. See the map to find what we offer in which part of the world.
7. How about EU sanctions in Russia
EU adopted sanctions towards Russia in 2014, with which NEFCO fully complies. Our activities focus on small and medium-sized, cross-border environmental projects with people-to-people effect.
Activities that are covered by EU sanctions or any other restrictions has not and cannot receive any financing from NEFCO, neither from NEFCO’s own investment fund nor from funds managed by NEFCO. We work directly with consultants providing technical assistance such as translations, drafting of documents and monitoring. All projects are implemented in a manner that fully comply with the sanctions.
Activities in Russia include projects financed by the Arctic Council Project Support Instrument (PSI), a fund dedicated to pollution mitigation and prevention projects in the Arctic region. Contributors are Russia, the US, Norway, Sweden, Finland, the Sami Parliament and NEFCO. NEFCO acts as fund manager. More about PSI >>
Another is the Programme for Environment and Climate Co-operation (PECC), co-funded by NEFCO and the Nordic Council of Ministers (NCM). These projects are part of cross-border cooperation between the Nordic countries and Northwest Russia. More about PECC >>
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 a Nordic partner or other long term Nordic involvement is usually required for projects in the private sector. Nopef financing is available for Nordic companies or companies headquartered in some of the Nordic countries.
9. What are NEFCO’s procurement requirements?
Open and transparent procedures is required for awarding any public sector contracts for procurement of goods, works and services. They also form the basis for cost-effective use of public funds. For further information, please acquaint yourself with NEFCO’s procurement activities and guidelines here.