NEFCO Financing for Municipalities in Eastern Europe

Enriched government · Found: 2026-05-06 13:17

NEFCO concessional financing for municipalities in Eastern Europe for green infrastructure and environmental projects.

Source: https://www.nefco.int/financing/municipalities-in-eastern-europe/

Funding Details

Funder

Nordic Environment Finance Corporation (NEFCO)

Funding Goal

Provide concessional loans and grant support to municipalities and sub-national entities in Eastern Europe (Georgia, Moldova, Ukraine) for green infrastructure projects including energy efficiency, renewable energy, district heating modernisation, municipal water and wastewater treatment, and green recovery actions. Technical assistance is also provided for feasibility studies and project implementation support.

Funding Amount

Concessional loans and grants of varying sizes; amounts determined on project-by-project basis. Example: loans for energy-saving projects, grant-funded green recovery actions in Ukraine.

Deadline

Rolling basis (Rolling)

How to Apply

Project-by-project basis; contact NEFCO directly via contact channels at nefco.int/contact/contact-channels/. NEFCO staff work directly with municipalities through bilateral negotiation.

Target Region

Eastern Europe: Georgia, Moldova, Ukraine; Historical operations also in Arctic and Barents regions (paused since Russia's Ukraine invasion)

Contact

NEFCO headquarters; see nefco.int/contact/contact-channels/ for regional contacts

Last Checked

2026-05-07 00:28

Application Checklist

Eligibility

• Applicant must be a municipality or sub-national public entity in Georgia, Moldova, or Ukraine

Project Scope

• Project must relate to energy efficiency, renewable energy, water/wastewater, or green recovery

Required Documents

• No open call; bilateral project development with NEFCO

Constraints

• Geographic restriction: Eastern Europe only (Georgia, Moldova, Ukraine)
• Primarily loan-based financing; grants available for specific recovery actions in Ukraine

Summary

The Nordic Environment Finance Corporation (NEFCO) is an international financial institution owned by the Nordic countries that finances green infrastructure projects in Eastern Europe. Its Eastern Europe programme focuses specifically on municipalities and sub-national public entities in Georgia, Moldova, and Ukraine, providing concessional loans, grants, and technical assistance for the green energy transition. Thematic priorities include energy efficiency modernisation (in buildings, district heating, schools, hospitals), renewable energy investments, municipal water and wastewater treatment modernisation, and green recovery actions in Ukraine. NEFCO also provides technical assistance for feasibility studies and project implementation support in connection with the projects it finances. Geographic scope is explicitly limited to Eastern European countries: Georgia, Moldova, and Ukraine. NEFCO previously operated across the Arctic and Barents regions (managing the Barents Hot Spots Facility and Arctic Council Project Support Instrument), but these operations were suspended following Russia's 2022 invasion of Ukraine. Eligible applicants are municipalities and sub-national governmental entities in the three eligible countries. NEFCO also finances Nordic companies making environmental investments in these markets. Private NGOs, non-profit organisations, and membership bodies are not eligible applicants. Financing instruments include concessional loans for energy efficiency and green transition projects, and grants for green recovery actions particularly in Ukraine. 73 active projects were in place at end of 2025. Project development is bilateral and on a rolling basis — no open competitive call.

Historical Context

NEFCO has financed green projects in Eastern Europe since its founding. Previously also operated in Arctic/Barents regions (Barents Hot Spots Facility, Arctic Council Project Support Instrument) until 2022 when Russian operations were suspended following the invasion of Ukraine. 73 active projects at end of 2025.

Why it was added

discovered from funder #327: Nordic Environment Finance Corporation (NEFCO)

Sources

• https://www.nefco.int/financing/municipalities-in-eastern-europe/

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