NEFCO is and has been involved in a number of activities specifically focused on climate change mitigation, including carbon and climate finance and also adaptation and sustainable development.

Current key activities include the management of two carbon facilities NEFCO Carbon Fund (NeCF) and NEFCO Norwegian Carbon Procurement Facility (NorCaP) on behalf of public and private sector investors. NeCF and NorCaP currently represent a portfolio of 21 ongoing Clean Development Mechanisms (CDM) projects spread across different sectors in 9 countries.

NEFCO Carbon Fund

Building on the capacity and competence through the management of the Baltic Sea Region Testing Ground Facility (TGF) , NEFCO established a global Public-Private Partnership carbon procurement vehicle: the NEFCO Carbon Fund (NeCF) in 2008. NeCF acquires greenhouse gas emission reductions under the Joint Implementation (JI) up to 2012 and the Clean Development Mechanism (CDM) up to 2020.

The fund’s public and private investors consist of European power utilities and Nordic governments. At its peak, NeCF was capitalised at EUR 165 million. After the market changes in 2011–2012, NeCF’s activities were consolidated and the active procurement paused.

When NorCaP launched a second call for proposals in 2014 on behalf of Norway, four projects under CDM in least developed countries were contracted under NeCF.

NeCF has contracted a total of 22 projects that have so far delivered 6 million emission reductions.

NEFCO Norwegian Carbon Procurement Facility

The global NEFCO Norwegian Carbon Procurement Facility (NorCaP) was established in 2013 in response to a wish for the Norwegian government to ensure the continued emission reduction activity of existing, but vulnerable, CDM projects. Many registered CDM projects were facing discontinuation due to low market price. At the same time, NorCaP assists Norway in meeting its climate commitments in a cost-effective way.

NorCaP purchases Certified Emission Reduction Units (CERs) from the second commitment period of the Kyoto Protocol (2013–2020). The facility is wholly funded by the Norwegian Ministry of Climate and the Environment.

Ten projects or bundles of vulnerable projects were successfully contracted based on the first call for proposals, and the first credits acquired within one calendar year. In December 2014, a second joint call for proposals under NorCaP and NeCF was launched.

NorCaP attracted significant interest from project developers, with almost 350 project proposals, demonstrating that strong demand remained in the market. NorCaP also showed that emission reductions could be sourced cost-effectively.

Procurement has been closed at the end of 2015 when the facility reached its target through NEFCO’s contracting of some 30 million CERs from 17 projects in Latin America and Africa. Projects have so far delivered 15.2 million emission reductions.

Past activities

Key past activities include the Baltic Sea Region Testing Ground Facility (TGF) – mainly for the procurement of emission reductions via Joint Implementation (JI) mechanism under the Kyoto Protocol. NEFCO was a very early actor in the project-based carbon markets. Through the multilateral energy cooperation in the Baltic Sea Region (BASREC), NEFCO took the initiative to set up a pioneering regional carbon fund in 2003.

TGF was the first multi-donor carbon fund outside the World Bank Group. The first participants in TGF were the Nordic governments and Germany, but the fund converted itself into a Public-Private Partnership by welcoming nine private participants, primarily from the energy sector. Energy companies were seeking compliance units to meet their obligations under the EU Emissions Trading Scheme (EU ETS). It was ultimately capitalised at EUR 35 million. TGF ended its activities in 2015 with 11 implemented JI projects and 2.6 million carbon credits delivered to the investors.

NEFCO also operationalised and managed the Nordic Climate Facility (NCF) between 2009 and 2018. NCF provides grants with co-financing requirements to encourage and promote technological innovations in areas susceptible to climate change in low-income countries, including both adaptation and mitigation projects. Today NCF is financed and managed by the Nordic Development Fund (NDF). The total value of the NCF application rounds 1–4 with 51 completed projects was EUR 35.2 million, when co-financing is included. Grant funding from NCF amounted to EUR 19.5 million.


Helle Lindegaard

Vice President, Head of Trust Funds and Climate

+358 10 6180 664
Danish, English, Swedish, Finnish, French

Kari Hämekoski


+358 10 618 0660
Finnish, English, Swedish

Tina Nyberg

Project Officer

+358 10 6180 651
Swedish, Finnish, English