Nordic Environment Finance Corporation (NEFCO)

Enriched Nordic · Found: 2026-03-11 08:07

A high-level forum to provide means for promoting cooperation, coordination and interaction among the Arctic States.

Source: https://arctic-council.org/about/observers/nordic-environment-finance-corporation-nefco/

Funding Details

Funder

Nordic Environment Finance Corporation (NEFCO)

Funding Goal

Accelerate the green transition by financing environmentally sustainable projects across Nordic countries, Eastern Europe, Sub-Saharan Africa, and the Baltic Sea region, with a focus on scaling Nordic green solutions globally.

Funding Amount

Loans typically EUR 2-5 million for Nordic SMEs (larger amounts possible). Nopef feasibility studies up to EUR 50,000 (conditional loan convertible to grant). Baltic Sea Action Plan Fund: €1.3 million total across 8 projects in 2025 round (~€160,000 per project average). (50.000 € – 5.000.000 €)

Deadline

Rolling applications for most programs. Nopef feasibility study has periodic deadlines (next: March 27). Baltic Sea Action Plan Fund has periodic call rounds. (Rolling)

How to Apply

1. Initial Contact: Present investment proposal to NEFCO experts. 2. Proposal Submission: Submit financing proposal and business plan; environmental specialists provide preliminary assessment. 3. Pipeline Screening: Full financial analysis, risk assessment, and compliance review. 4. Committee Approval: Investment Committee reviews; Board considers Clearance in Principle. 5. Formal Approval: Board approves; loan agreements prepared and funds disbursed. 6. Monitoring: Ongoing reporting on environmental and financial performance required. For the Baltic Sea Action Plan Fund and special funds, separate application processes may apply — contact the relevant program manager. For Nopef feasibility studies, separate deadlines apply (next: March 27).

Target Region

Nordic countries (Denmark, Finland, Iceland, Norway, Sweden), Eastern Europe (Ukraine, Moldova, Georgia), Sub-Saharan Africa, Baltic Sea region

Contact

General: info@nefco.int | +358 10 618 003. Special Funds: Dennis Hamro-Drotz (Acting Head of Department), dennis.hamro-drotz@nefco.int, +358 10 6180 607. Nordic SMEs: Mikael Reims (VP Origination) +358 10 6180 670, Thor Thorsteinsson (VP Nordic SMEs) +358 10 6180 657.

Official Page

https://www.nefco.int/

Last Checked

2026-03-12 06:13

Application Checklist

Eligibility

• Applicant must be a Nordic-based entity (company, municipality, or organization) OR operating in an eligible target region (Eastern Europe, Sub-Saharan Africa, Baltic Sea region)
• Project must demonstrate proven positive environmental or climate impact, evaluated against EU Taxonomy and NEFCO's environmental/sustainability criteria
• Investment must show technical and financial viability with technology scale-up potential for global markets

Project Scope

• Project must fall within eligible sectors: circular economy, energy efficiency, food/agriculture/forestry, manufacturing, transportation/e-mobility, or water/ocean

Required Documents

• Submit financing proposal including detailed business plan and environmental impact assessment

Constraints

• Financing must demonstrate 'additionality' — the project would not proceed without NEFCO's involvement due to insufficient commercial financing
• Ongoing environmental and financial performance reporting required after funding is disbursed

Summary

The Nordic Environment Finance Corporation (NEFCO) is an international financial institution — the "Nordic Green Bank" — owned by the five Nordic countries (Denmark, Finland, Iceland, Norway, Sweden). Established in 1990, it has financed over 1,800 green projects. NEFCO's mission is to accelerate the green transition by helping Nordic environmental solutions scale globally, providing financing where commercial options are insufficient. NEFCO operates multiple financing instruments across different regions. For Nordic SMEs, it offers loans (typically EUR 2-5 million) for scaling green solutions internationally, EIF-backed guarantees, and Nopef feasibility study support (up to EUR 50,000). In Eastern Europe (Ukraine, Moldova, Georgia), it provides blended loans and grants for public sector green recovery and energy efficiency. In Sub-Saharan Africa, it runs results-based financing through the Beyond the Grid Fund for Africa and Modern Cooking Facility for Africa. Of particular relevance for marine and environmental work is the Baltic Sea Action Plan (BSAP) Fund, which finances demonstration projects improving Baltic Sea ecological health — awarding €1.3 million across 8 projects in 2025. NEFCO's eligible sectors explicitly include circular economy, water/ocean projects, and nature protection. The institution evaluates all projects against EU Taxonomy and its own environmental sustainability criteria, seeking "Return on Impact" alongside financial returns.

Historical Context

NEFCO was established in 1990 as an international financial institution owned by the five Nordic countries (Denmark, Finland, Iceland, Norway, Sweden). It has financed over 1,800 green projects since inception. The institution previously supported environmental work in the Arctic and Barents Regions for 30 years until Russia's invasion of Ukraine shifted focus. The Baltic Sea Action Plan Fund awarded €1.3 million across 8 new projects in 2025. NEFCO holds observer status at the Arctic Council since the 2004 Reykjavik Ministerial meeting.

Sources

• https://arctic-council.org/about/observers/nordic-environment-finance-corporation-nefco/
• https://www.nefco.int/
• https://www.nefco.int/financing/other-regions/
• https://www.nefco.int/financing/financing-options/
• https://www.nefco.int/financing/investment-criteria-and-cycle/
• https://www.nefco.int/financing/companies/
• https://www.nefco.int/financing/municipalities-in-eastern-europe/
• https://www.nefco.int/about-nefco/

Similar Programs

← Back to list