Nordic Environment Finance Corporation (NEFCO)

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

NEFCO provides financing for environmental and climate projects, NEFCO currently with assets representing over EUR 400 million under management.

Source: https://www.ccacoalition.org/partners/nordic-environment-finance-corporation-nefco

Funding Details

Funder

Nordic Environment Finance Corporation (NEFCO)

Funding Goal

Financing environmental and climate projects to accelerate the green transition, with focus on Nordic SMEs scaling globally, public sector projects in Eastern Europe, and special fund programs for the Baltic Sea and Sub-Saharan Africa.

Funding Amount

Loans typically EUR 2-5 million for Nordic SMEs; Nopef feasibility study support up to EUR 50,000 (conditional loan convertible to grant); larger sums available for financially strong companies. (50.000 € – 5.000.000 €)

How to Apply

Six-step investment cycle: (1) Initial contact with NEFCO specialists, (2) Submission of financing proposal and business plan with preliminary environmental assessment, (3) Pipeline entry for comprehensive financial analysis and compliance review, (4) Clearance in principle by Investment Committee and Board with Term Sheet preparation, (5) Board approval and loan agreement preparation, (6) Ongoing monitoring with regular reporting requirements.

Target Region

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

Contact

Headquarters: Fabianinkatu 34, P.O. Box 249, FI-00171, Helsinki, Finland. Nordic Companies: VP Thor Thorsteinsson, VP Origination Mikael Reims. Special Funds: Dennis Hamro-Drotz, Acting Head of Department (+358 10 6180 607).

Official Page

https://www.nefco.int/

Last Checked

2026-03-12 04:04

Application Checklist

Eligibility

• Applicant must be a Nordic SME (for company financing) or public/private entity (for special funds like BSAP)
• Project must demonstrate positive environmental or climate impact
• Project must demonstrate financial and technical viability

Project Scope

• For Nopef feasibility studies: project must target markets outside EU/EFTA area

Required Documents

• Submit financing proposal and business plan to NEFCO specialists

Constraints

• Solutions must be assessed against EU Taxonomy and UN Sustainable Development Goals
• Environmental and social risk assessment must be addressed
• Regular reporting on implementation progress and environmental/financial performance required post-funding

Summary

The Nordic Environment Finance Corporation (NEFCO) is an International Financial Institution established in 1990 by the five Nordic governments (Denmark, Finland, Iceland, Norway, Sweden). Headquartered in Helsinki, Finland, NEFCO manages over EUR 400 million in assets and has financed more than 1,800 green projects since its founding, with 324 ongoing investments and projects at end of 2025. NEFCO's core mission is to accelerate the green transition by financing Nordic companies with environmental solutions seeking international scale-up. NEFCO offers several financing instruments: loans (typically EUR 2-5 million) for Nordic SMEs, blended finance (loans and grants) for public sector projects in Eastern Europe (Ukraine, Moldova, Georgia), feasibility study support through Nopef (conditional loans up to EUR 50,000 convertible to grants), and results-based programs for clean energy in Africa. Eligible sectors include circular economy, energy efficiency, agriculture/forestry, manufacturing, e-mobility, and water/ocean projects. Of particular relevance is the Baltic Sea Action Plan (BSAP) Fund, which finances demonstration projects from both public and private entities to improve Baltic Sea ecological health, with 80% of projects addressing biodiversity conservation and pollution prevention. NEFCO also manages the Beyond the Grid Fund for Africa and the Modern Cooking Facility for Africa, targeting clean energy access in Sub-Saharan countries. Carbon market development has been part of NEFCO's portfolio since 2003.

Historical Context

Established in 1990 by Nordic governments. Has financed over 1,800 green projects since founding. CCAC partner since 2013. Pioneer in project-based carbon market mechanisms since 2003. 324 ongoing investments and projects at end of 2025. Beyond the Grid Fund for Africa has established over 610,000 energy connections benefiting 3.15 million people as of 2024.

Sources

• https://www.ccacoalition.org/partners/nordic-environment-finance-corporation-nefco
• https://www.nefco.int/
• https://www.nefco.int/financing/investment-criteria-and-cycle/
• https://www.nefco.int/financing/financing-options/
• https://www.nefco.int/financing/other-regions/
• https://www.nefco.int/financing/companies/

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