NEFCO’s Board of Directors decided, at a meeting on Thursday in Helsinki, to increase the Corporation’s financial support for cleaner production activities in Russia, Ukraine and Belarus by raising the maximum loan amount per project from EUR 350,000 to EUR 500,000.
The move is intended to meet increasing financial demands from the Corporation’s Facility for Cleaner Production. The Board also decided to augment the fund with EUR 5 million, raising its total capitalization to EUR 19.8 million.
NEFCO’s Facility for Cleaner Production is a loan programme, which falls under the Nordic Environment Development Fund (NMF), and is intended to promote the reduction of industrial pollution through efficient resource and energy utilization. The main criterion for each project approved under the scheme is that it should generate clear and measurable environmental benefits by curbing the emission of harmful substances into the environment. Cleaner production is generally achieved by upgrading technology and production methods.
NEFCO offers Cleaner Production Credits on favourable terms to both private and public enterprises and loan repayments are directly linked to savings generated from the investment. Until now the Facility for Cleaner Production has financed over 70 projects since its inception in 1996.