At the Arctic Ministerial Meeting in Rovaniemi in May 2019, Finland announced that it will allocate an additional EUR 1 million to the Arctic Council Project Support Instrument (PSI), which is managed by NEFCO, to support project financing for mitigating black carbon and other types of pollution in the Arctic region.
To accelerate the reductions of black carbon emissions, Finland has actively been addressing the importance of mitigating black carbon emissions during its Arctic Council Chairmanship 2017-2019 and has allocated resources for regional and global black carbon reduction initiatives. With its new contribution to the PSI, Finland also wishes to support the cooperation of the Arctic Council Working Groups on this issue.
PSI financing is available to small and medium-sized projects of the Arctic Council Working Groups in the fields of reducing black carbon, methane and other short lived climate pollutants as well as CO2 emissions, hazardous waste management, such as elimination of mercury, ozone depleting substances and persistent organic pollutants, and protecting biodiversity from the effects of pollution, among others.
Financing is primarily intended for activities, such as project identification and concept development, pre-feasibility studies, environmental impact assessments, business and financing plans, preparation of tender documents, tendering and evaluation. Specific measures in the implementation phase of pilot and demonstration projects, including supplies of equipment and services, may also be financed.
Since the operationalisation of the PSI in July 2014, funding has been approved for 17 Arctic Council projects of which seven have been completed. The PSI financing instrument has received contributions from Finland, Iceland, Norway, Russia, Sweden, the US and the Sami parliament of Norway as well as from Denmark, the Nordic Council of Ministers and NEFCO through the Nordic Environment Development Fund.