EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation

Energi- Forsynings- og Klimaudvalget 2017-18
EFK Alm.del Bilag 301
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Nordic

Environment

Finance

Corporation

Annual

Review

2017

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO 2017

Contents

Highlights of the year 2017

NEFCO in brief

Interview with the

Managing Director

The Arctic and Barents Region

Case study 1

Reduction of short-

lived climate pollutants

The Baltic Sea

Climate change

Case study 2

Finnish trust fund for

energy efficiency and renewable energy

Green growth

Report from the Board of

Directors 2017

Case study 3

New facility for electric

vehicles

Environmental status report 2017

Emission reductions in 2017

Statement of comprehensive income

Statement of financial position

Changes in equity

Cash flow statement

Independent Auditor’s Report

Case study 4

Equity investments in

the Baltics

Statement by the Control Committee

Case study 5

Implementation of

energy-efficiency measures in public

buildings

Approved projects 2017

Case study 6

Innovative

plastic recycling from the fishing

industry

NEFCO in numbers 2017

Personnel and Board members 2017

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Highlights

of the year

2017

JANUARY

NEFCO and the Danish

company Rus Agro Team

A/S sign a loan agreement

aimed at introducing a

range of investments

that will result in envi-

ronmental benefits at

the company’s farm in

the Kaliningrad region in

Russia.

FEBRUARY

The Finnish John Nurminen

Foundation joins forces

with NEFCO to co-finance

a biogas plant in Lviv,

Ukraine.

APRIL

The new Nordic-Russian

Programme for Environ-

ment and Climate

Co-operation (PECC)

launches its first calls for

proposals.

MAY

NEFCO and the Russian LLC

Novgorod Timber Company

Sodruzhestvo sign a loan

agreement to modernise

wood processing produc-

tion in Nebolichi in the

Novgorod region in Russia.

The Arctic Council Project

Support Instrument (PSI)

approves two major projects

aimed at reducing the release

of short-lived climate pol-

lutants from the oil and gas,

and fisheries sectors in the

Russian Arctic.

JUNE

The amended NEFCO

Agreement and statutes

enters into force and

opens up for a broader

geographical scope for the

Corporation's investment

activities.

NEFCO and the Republic of

Moldova sign a framework

agreement acknowledging

NEFCO’s status as an inter-

national financial institution

in Moldova.

JULY

NEFCO and AS BaltCap

sign a Subscription

Agreement for an equity

investment in a new

infrastructure fund for the

Baltic States investing in

energy efficiency and re-

newable energy projects.

↓

Managing Director Magnus

Rystedt signing the framework

agreement with the Deputy

Prime Minister Octavian Calmic

from the Moldovan Ministry of

Economy.

MARCH

NEFCO and the Belarusky

Narodny Bank (BNB-bank)

sign a loan agreement for

the development of an

electric vehicles facility.

PHOTO: CAROLINA STURZA, MINISTRY OF ECONOMY OF THE REPUBLIC OF MOLDOVA

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

AUGUST

The Nordic Project Fund

(Nopef) has approved

financing for 43 new projects

so far in 2017 for a total value

of approx. EUR 1.3 million.

SEPTEMBER

NEFCO and the Ministry

of Natural Resources and

Environment of the Russian

Federation sign a Memo-

randum of Understanding

to improve the ecological

situation at the Krasny Bor

landfill area in the region of

St Petersburg.

NEFCO signs grant agree-

ments with the cities of

Druzhkivka, Pershotravensk

and Svatove for energy-

efficiency measures in public

buildings through the Nordic

Energy Efficiency and Hu-

manitarian Support Initiative

for Ukraine (NIU).

OCTOBER

NEFCO, as fund manager for

PSI, signs a grant agree-

ment with the Conservation

of Arctic Flora and Fauna

(CAFF) to improve the status

of declining Arctic breeding

migratory bird populations.

NEFCO approves nine

projects within the new

PECC programme aimed at

improving the state of the

environment and addressing

climate change in North-

west Russia.

NOVEMBER

NEFCO arranges a side

event on how to mobilise

green investments for

smart solutions at the UN

Climate Summit (COP23) on

14 November in connection

with the Nordic Finance

Day.

NEFCO’s updated Environ-

mental and Sustainability

Guidelines are published.

NEFCO and the Ministry for

Foreign Affairs of Finland

sign an agreement to set

up the Finland Ukraine

Trust Fund, which will

provide financial support

to energy-efficiency and

renewable energy projects

in Ukraine.

DECEMBER

The wastewater treatment

plant in Petrozavodsk, the

capital of Russian Karelia, is

inaugurated.

NEFCO and the Ministry of

Finance of Ukraine sign a

loan agreement for energy-

efficiency investments in

several higher education

institutions in Ukraine.

Sarunas Stepukonis, BaltCap; Karoliina Auvinen,

Aalto University; Shawn Brown, Ignitia AB; Tom

Erichsen, Differ AS; and Peter Keller-Larsen,

CLEAN discussing at NEFCO's side event at the

UN Climate Summit.

←

Matti Iikkanen, Pöyry, Kari Homanen, NEFCO,

Jana Selkova, Pöyry, Vitaly Artyushchenko,

NEFCO and Sebastian Påwals, NIB at the

inauguration of the wastewater treatment

plant in Petrozavodsk.

PHOTO: NEFCO, JOEL SHEAKOSKI

PHOTO: PKS

←

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO

in brief

The Nordic Environment Finance Corporation

The amended NEFCO Agreement that

entered into force in June 2017 opens up

the possibility for NEFCO to broaden its

investment activities geographically and

to approve projects also outside Eastern

Europe. The Corporation’s trust funds, in-

cluding those aimed at climate projects

and SME internationalisation, have until

now been the only financing instruments

operating with a global scope. NEFCO will

now be able to explore new ground by pro-

viding loan capital and equity for relevant

green growth investments of interest to

the owner countries.

NEFCO’s current main priorities:

● To enhance existing activities and

initiate new interventions related to

green investments and the promotion

of green growth

● To prevent climate change with a

focus on interventions related to

renewable energy, energy efficiency

and the reduction of short-lived cli-

mate pollutants

● To continue the successful activities

targeting the reduction of pollutants

affecting the Baltic Sea and the Arctic

and Barents Regions

To achieve this, NEFCO will continue to

work closely with its owners, the Nordic

countries, governmental institutions, EU,

relevant business sectors, as well as other

international financial institutions.

(NEFCO) is an international financial insti-

tution established in 1990 by the five Nor-

dic countries: Denmark, Finland, Iceland,

Norway and Sweden.

NEFCO’s green financing is targeted

at small and medium-sized projects and

focuses on generating environmental ben-

efits through these project implementa-

tions. Many of the projects financed by

NEFCO are characterised by a pioneering

spirit and aimed at testing Nordic solu-

tions with up-scaling possibilities. Based

on its experiences from the field, NEFCO

has participated in the development of in-

novative financing instruments designed

to improve the environment and combat

climate change.

NEFCO has developed an ability to as-

sist borrowers efficiently in the identifica-

tion, development, implementation and

administration of environmental projects

and to make them attractive also to other

financiers. The Corporation works in close

partnerships with both private and public

investors.

All projects to be financed by NEFCO need

to demonstrate that they will benefit the en-

vironment in a cost-effective way. To ensure

that these benefits will in fact materialise,

financing is released in tranches against

monitored milestone results, and environ-

mental outcomes are monitored annually for

as long as NEFCO is involved. This approach

effectively mitigates the risk of corruption

and increases the requirements for borrow-

ers’ capacity building, transparency and ac-

countability. It also ensures improved pre-

dictability and sustainability of the project.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO’S MANAGING DIRECTOR

How would you sum up NEFCO’s results

in 2017?

We have had a lot of investment activities

and new trust fund assignments in 2017.

A total of 123 projects were approved to

a total value of EUR 50.8 million. A large

number of the approved projects relate to

energy efficiency and renewable energy.

During the past year nine projects were

approved within the new Programme for

Environment and Climate Co-operation in

Northwest Russia. A new Finnish initiative

to finance projects in the areas of energy

efficiency, renewable energy and alterna-

tive energy sources in Ukraine with NEFCO

as a fund manager was signed in Novem-

PHOTO: PATRIK RASTENBERGER

Interview with

Magnus Rystedt

ber. During the year, NEFCO also signed a

framework agreement with the Republic

of Moldova. However, a significant step

was that the amended NEFCO Agreement

entered into force, which enables the Cor-

poration to invest in activities globally.

Managing Director

Magnus Rystedt.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Within which sectors will NEFCO work in

the future?

NEFCO will continue working with energy

and climate investments over the com-

ing years. Thanks to the Paris Agreement

global awareness of the ongoing climate

change is increasing and investments re-

lated to both mitigation and adaptation

activities will increase. More modern, en-

vironmentally friendly and efficient tech-

nology will also be implemented, especially

in NEFCO’s main countries of operation.

Through our financing activities and in-

vestments, we will focus on contributing

to the green transition.

Within which focus areas will NEFCO’s

trust fund management assignments lie

in the future?

Over the years NEFCO’s trust fund activi-

ties have focused on environmental and

climate issues in the neighbouring region

as well as globally. The Arctic and Barents

Regions as well as the Baltic Sea will also

be prioritised areas in the future, together

with trust fund activities related to sus-

tainable energy use and climate adaptation

and mitigation.

How will NEFCO start working with the

new geographical mandate in 2018?

At NEFCO, the focus is on the small and

medium-sized environmental projects that

the Corporation is financing. Within the

new global mandate, the emphasis will

continue to be on the projects and ways

to find good bankable projects within

NEFCO's focus areas.

How will NEFCO support the Nordic

governments with their national goals

to reach the SDG targets?

NEFCO can support the Nordic govern-

ments in their work on the sustainable

development goals through project identi-

fication and implementation as well as in

financing projects, where there are scale-

up possibilities.

What will NEFCO's main activities be

in 2018?

The main priority for NEFCO, in addition to

the normal investment and project work,

will be to identify and develop new projects

within NEFCO Global as well as to develop

new initiatives within the fund manage-

ment. The goal is to reach more synergies

between NEFCO’s investment projects and

trust fund activities. The work will be done

in close collaboration with the owners; the

Nordic countries, and NEFCO’s cooperation

partners.

NEFCO's goal

is to reach

more synergies

between its

investment

and trust fund

activities in close

collaboration with

the owners; the

Nordic countries,

and cooperation

partners.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

FOCUS AREA

NEFCO continued to work actively in

both the Arctic and Barents Regions during

2017 and mainly financed projects in this

area through three different funds and

loan programmes.

In the Arctic Region, NEFCO provides fi-

nancing through the Arctic Council Project

Support Instrument (PSI) for pollution pre-

vention, hazardous waste management, cli-

mate change mitigation, cleaner production,

energy efficiency, and decreasing and elimi-

nating the release of hazardous substances,

such as mercury, into the environment.

Financial assistance from NEFCO PSI

to the projects of the Arctic Council’s

working group Arctic Contaminants

Action Programme has so far resulted

in the commissioning of nine projects,

most of them addressing short-lived

climate pollutants. A project regarding

the assessment of the use of super-critical

water oxidation for the destruction of

pesticides in Russia was also completed

in 2017. During 2017, the PSI Committee

of contributors approved six new projects.

The approved projects address the reduction

of short-lived climate pollutants such as

black carbon, methane and hydrofluorocar-

bons within, for example, the oil and gas

and fisheries sectors in the Russian Arctic.

Financing from NEFCO PSI is also

contributing to the Arctic Migratory

Birds Initiative, under the Arctic Coun-

cil’s working group Conservation of Arctic

Flora and Fauna. The aim is to highlight

on-the-ground actions for habitat protec-

tion, including pollution prevention. The

project will promote the establishment of

a network of protected areas at important

breeding, overwintering and safer stopo-

ver sites. The PSI grant will be used to de-

velop an implementation plan regarding

the African-Eurasian Flyway and the East

Asian-Australasian Flyway.

Since 2004, NEFCO has been working in

the Barents Region to support the work on

climate and environment within the Bar-

ents cooperation and to promote relevant

actions and investments at the so-called

Barents ‘hot spots’. Financing is provided

by NEFCO through the Barents Hot Spots

Facility (BHSF). In 2017, BHSF approved

financing for five new projects or studies,

within waste management, black carbon

reductions as well as remediation of oil-

polluted sites. The environmental work

in the Barents is closely interlinked with

the Arctic cooperation, and many BHSF-

funded studies aim to develop projects for

further PSI funding.

The Arctic and

Barents Region

In 2017, NEFCO

approved 20 new

environmental

projects in the

Arctic and Barents

Regions.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

The Arctic area

Reduction of

short-lived cli-

mate pollutants

In 2017, the Arctic Council

Project Support Instrument,

managed by NEFCO, ap-

proved two projects aimed

at reducing the release of

short-lived climate pollut-

ants (SLCP), such as black

carbon, methane and hydro-

fluorocarbons in the Russian

Arctic. One of the approved

projects will address flaring

from associated petro-

leum gas and demonstrate

the use of best available

techniques to reduce SLCP

from APG flaring on the

remote Yamal peninsula and

the Salym-Shapsha field.

The second project will help

phase out fluorinated green-

house gases and ozone-

depleting substances at a

fish and seafood processing

plant in the Murmansk area.

The intervention is expected

to mitigate about 400,000

tonnes of CO2 emissions

per year.

NEFCO

2017

PHOTO: JONAS HÄGGBLOM

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

PHOTO: JONAS HÄGGBLOM

Several activities in the Arctic and

Barents were arranged in 2017 in

connection with the ‘Year of the Ecology’

in Russia. In November, the Barents

Environmental Ministers gathered in

Vadsø to summarise the results of the

cooperation in 2016-2017, whereby

Norway handed over the Chairmanship

of the Working Group on Environment to

Sweden. The ministers reconfirmed the

exclusion of three Barents Environmental

Hot Spots from the List: Arkhangelsk Pulp

and Paper Mill, reduction of dust emissions

at Vorkuta Cement Plant, and wood

processing industry waste management

in the nine forest districts of the Komi

Republic.

NEFCO has worked actively with the

cement plant in Vorkuta and indirectly

supported the wood waste hot spot work

in Komi. BHSF has also supported the pro-

cedural work to prepare all these hot spots

for formal exclusion.

NEFCO and the Nordic Council of Min-

isters together launched a first Call for

Proposals in March 2017 for the new Pro-

gramme for Environment and Climate Co-

operation (PECC). The programme supports

non-governmental cooperation between

the Nordic countries and Northwest Russia

to mutually benefit the environment and

climate at the regional and local levels.

Nine projects were selected for subsequent

funding and implementation in 2018.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

FOCUS AREA

One of NEFCO’s main priorities is to

improve the ecological state of the Baltic

Sea. Currently, some 20 per cent of the in-

vestments of NEFCO's Investment Fund

relates to water projects. Through the im-

plemented projects NEFCO succeeded last

year in reducing discharges of phosphorus

from wastewater treatment plants by 924

tonnes and from the agriculture sector by

63 tonnes. The total phosphorous discharge

reductions of 987 tonnes correspond to un-

treated wastewater from approx. 1.4 mil-

lion people. The reductions of nitrogen dur-

ing the same period totalled 4.292 tonnes.

The Baltic Sea Action Plan Fund (BSAP),

jointly administered by NEFCO and the

Nordic Investment Bank, currently has

seven projects under implementation

and five that were finalised during 2017.

Four of the ended projects were related

to wastewater treatment in Estonia and

the fifth project tested a system to absorb

nutrients from leakage waters from ma-

nure storage facilities in Russia. In total, 30

projects have been finalised since 2010 in

the agricultural, wastewater or hazardous

waste sectors. A key purpose of the fund

is to facilitate and speed up the prepara-

tion of bankable projects in the Baltic Sea

catchment area.

One of the wastewater treatment plants

that NEFCO has financed was inaugurated

in December 2017. The plant in Petroza-

vodsk, the capital of Russian Karelia, has

been upgraded to reduce discharges to Lake

Onega and the Baltic Sea and thus improve

the quality of the drinking water in the

region. The plant cleans some 145,000 cu-

bic metres of sewage water per day for the

city’s 270,000 inhabitants, and the new

wastewater treatment process will reduce

phosphorus discharges by 75 tonnes per

year. The financing of the reconstruction

has been co-ordinated by NEFCO and has

contributed a total loan of EUR 4 million

for the modernisation of the plant. After

completion, the plant will fulfil the Baltic

Marine Environment Protection Commis-

sion’s (HELCOM) requirements regarding

nitrogen and phosphorus removal from

the wastewater.

HELCOM’s Pressure Group asked NEFCO

in autumn 2016 to co-ordinate the clean-

up of a toxic waste disposal site in Krasny

Bor, some 30 km from St Petersburg in the

Tosnensky District of Leningrad Region. In

2017, NEFCO signed a Memorandum of Un-

derstanding with the Ministry of Natural

Resources and Environment of the Russian

Federation, as well as with the Committee

for Nature Use, Environmental Protection

and Ecological Safety of St Petersburg and

the Polygon Krasny Bor, which is the State

Unitary Environment-Protection Enter-

prise of the landfill.

In February 2018, the Finnish company

Fortum Environmental Construction took

samples from the lagoons, which are cur-

rently at acute pollution risk. These sam-

ples are being analysed at a laboratory in

Riihimäki, Finland. The laboratory stud-

ies will help in drawing up a preliminary

design for possible treatment methods

for the hazardous waste at the landfill.

This work is financed through the BSAP

fund. The Krasny Bor landfill is a hazard-

ous waste disposal site that has received

at least 1.7 million tonnes of waste in all

forms over the years. The site has been

closed since the beginning of 2014 but

listed as a Hot Spot by HELCOM since the

early 1990s for its inadequate handling of

hazardous wastes and associated environ-

mental risks of toxic chemicals leaching

into the Baltic Sea.

The Baltic Sea

The work to reduce discharges

into the Baltic Sea is one of

NEFCO's key priorities.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO

2017

PHOTO: JONAS HÄGGBLOM

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

FOCUS AREA

A large number of NEFCO’s investment

activities focus on energy-efficiency meas-

ures and renewable energy. In 2017, 35 per

cent of all projects financed by NEFCO or

through key Nordic trust funds adminis-

tered by NEFCO were in the energy sec-

tor. NEFCO's climate-related investments

reduced carbon dioxide emissions by 4.3

million tonnes as well as electricity con-

sumption by 62,788 megawatt-hours and

heat consumption by 116,530 megawatt-

hours in 2017.

During the year, NEFCO’s Board ap-

proved ten new projects related to energy

efficiency and renewable energy for financ-

ing through NEFCO’s Investment Fund.

Under the NEFCO-administered Nordic

Environmental Development Fund, 14 new

projects related to climate were approved

for investment. These projects include

the implementation of energy-efficiency

measures in public buildings and moderni-

sation and development of district heating

networks as well as modernisation of street

lighting.

A significant Investment Fund project

that was approved for financing in 2017,

and co-financed by the Eastern European

Energy Efficiency and Environment Part-

nership (E5P), concerns the renovation

and implementation of energy-efficiency

measures in 40 public buildings, mainly

schools and day-care centres in the city

of Lutsk in Ukraine. Another project, also

co-financed by E5P, will introduce energy-

efficiency measures and the use of renew-

able energy alternatives in public buildings

in Georgia. In the district heating system

of Horishni Plavni, Ukraine, NEFCO will,

likewise together with E5P, finance the

Climate

change

During the year,

24 new projects

related to energy

efficiency were

approved.

introduction of renewable fuels and ener-

gy-efficiency measures. Here, the existing

production facility will be completely mod-

ernised and upgraded with new bio-fuel

boilers designed for use with sunflower

husk as the primary fuel instead of gas.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

Ukraine

Finnish trust

fund for energy

efficiency and

renewable

energy

The Finland Ukraine Trust

Fund, established in 2017,

will provide financial sup-

port to energy-efficiency

and renewable energy pro-

jects in Ukraine. The fund

shall promote cooperation

and identify projects in the

fields of energy efficiency,

renewable energy and

alternative types of energy

sources in power and heat

generation as well as in

district heating networks.

Funding for technical as-

sistance as well as grant

support for demonstra-

tion projects to Ukrainian

small and medium-sized

enterprises for both private

and public projects can also

be provided. The total value

of the new trust fund is

EUR 6 million. Key areas of

renewable energy sources

in Ukraine are wind, solar,

hydro, biomass, geother-

mal and energy using heat

pumps.

NEFCO

2017

PHOTO: PATRIK RASTENBERGER

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

PHOTO: JONAS HÄGGBLOM

In 2017, NEFCO together with the

Ministry for Foreign Affairs of Finland,

established a new bilateral trust fund

to promote cooperation and to identify

projects in the fields of energy efficiency,

renewable energy and alternative types of

energy sources in power and heat genera-

tion as well as in district heating networks

in Ukraine. Projects to be financed will be

selected in close cooperation with local

Ukrainian authorities, and technical as-

sistance funds will be made available for

institutional strengthening measures and

policy support for the introduction and

expanded use of renewable energy, waste-

to-energy and smart energy systems.

In addition to the above mentioned

climate-related activities, NEFCO man-

ages two funds for the purchase of carbon

credits: the NEFCO Carbon Fund (NeCF),

active since 2008, and the NEFCO Nor-

wegian Carbon Procurement Facility

(NorCaP), which was established in 2013.

The NeCF and NorCaP project portfolios

consist of 13 and 12 ongoing projects re-

spectively. In total, 3.1 million CERs were

issued from these projects and delivered

to investors during 2017.

The second phase of the Nordic Part-

nership Initiative (NPI) related to a Na-

tionally Appropriate Mitigation Action

(NAMA) activity in the waste sector in

Peru, which started in 2016, has contin-

ued during 2017.This includes a number

of consulting assignments connected to

various aspect of the solid waste man-

agement in Peru. The studies address, in

particular, financing mechanisms, com-

posting, informal landfills, waste sector

information system, recycling as well as

matters related to possible carbon trading

under Article 6 of the Paris Agreement in

regard to Peru’s waste management. The

outcomes of the Article 6 study were dis-

cussed at a side event in connection with

the UNFCCC climate negotiations in Bonn

in May 2018 and will be made public later

during the year.

In 2017, the last 14 projects of the Nor-

dic Climate Facility (NCF) under NEFCO’s

administration were implemented and

ended. This facility is financed by the Nor-

dic Development Fund (NDF), and since

2009, NEFCO has administered the first

four calls for proposals. Eleven out of the

14 projects which were completed dur-

ing 2017 address both mitigation and

adaptation aspects. The greenhouse gas

emission reductions for the completed

projects in 2017 are expected to amount

to 134,000 tonnes of CO2 equivalent an-

nually. By the end of 2017, all 51 projects

from the first four calls under NEFCO’s

administration were ended. The total

value of the implemented project port-

folio is EUR 34.5 million, including the

required own co-financing of these pro-

jects. NCF grant funding related to these

projects amounted to EUR 18.7 million.

A total of approx. 285,000 people have

benefitted from the implemented projects

over the years, and 13,000 people, among

them 75% women, have had their liveli-

hoods improved or gained new income-

generating opportunities.

During the year, NEFCO also continued

to take an active part in the global climate

dialogue. For instance, NEFCO co-hosted

a Financing Day in the Nordic Pavilion at

COP23 in Bonn, including a side event re-

lated to the mobilisation of green invest-

ments for smart climate solutions, and

contributed to a number of new reports

within the climate financing field.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

FOCUS AREA

NEFCO has a long and successful track

record of financing projects connected to

green technologies and cleaner production.

Since 2015, green growth has been one of

NEFCO's main focus areas.

NEFCO’s new mandate, which entered

into force in June 2017, enables financing

of investments related to green growth also

outside Eastern Europe. The environmen-

tal priorities of the Nordic countries have

shifted over the years and the amendment

to the NEFCO Agreement will help the Cor-

poration to work with global environmen-

tal challenges identified and prioritised

by the Nordic governments. NEFCO’s aim

is to support the implementation and

up-scaling of Nordic environmental tech-

nologies and climate solutions on global

markets. Through the financing scheme

NEFCO Global, NEFCO can offer funding to

Nordic companies for internationalisation

and green investments carried out globally.

NEFCO also supports the internationali-

sation of Nordic small and medium-sized

enterprises (SMEs) through the Nordic

Project Fund (Nopef ). In 2017, the fund

approved feasibility study funding for 70

Nordic SMEs. Over the years, Nopef projects

have demonstrated strong commercial and

environmental results from its targeted

financial support for SME internationalisa-

tion. The annual customer survey among

Nopef clients shows that, on average, each

funded foreign establishment has created

13 new jobs, EUR 1 million in investments

and EUR 2 million in sales, with a major-

ity of projects directly benefitting Nordic

subcontractors. A growing portion of Nopef

projects are related to Nordic environmen-

tal technologies and climate solutions with

the potential to be scaled up in the project

countries.

Green growth

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

In 2017, NEFCO signed a loan agreement

with Belarusky Narodny Bank for the de-

velopment of an electric vehicles facility.

The aim of the facility is to promote electric

vehicles to consumers and legal entities in

Belarus, and to develop the electric vehicle

infrastructure in the country.

At the UN Climate Summit on 14 No-

vember in Bonn (COP23), NEFCO arranged

a discussion on how to mobilise green in-

vestments for smart environmental solu-

tions. A broad variety of innovative climate

solutions and alternatives for project fi-

nancing were presented by NEFCO and

its clients and partners. One conclusion

from the discussion was that international

financial institutions, such as NEFCO, are

valuable in that they have a catalysing ef-

fect in the early stages of project develop-

ment and facilitate demonstration and

up-scaling of existing technologies. Fur-

thermore, they effectively link different

interest groups, which is crucial in im-

plementing green projects. The discussion

was one of the side events at the Nordic

Finance Day, co-arranged by NEFCO, the

Nordic Investment Bank (NIB) and the

Nordic Development Fund (NDF) and ar-

ranged at the Nordic Pavilion organised by

the Nordic Council of Ministers.

During 2017, NEFCO also attended sev-

eral other events and seminars highlight-

ing green solutions and financing. Presen-

tations were held at Vaasa Energy week,

Cleantech Capital Day in Malmö, Nordic-

Baltic Conference on Climate Change,

Energy Security and Energy Solutions in

Riga, World Circular Economy Forum in

Helsinki, 6th Sweden-Ukraine Business

Forum in Kiev and the Baltic Sea festival

in Stockholm. NEFCO also participated in

the start-up event SLUSH in Helsinki in

November, which this year highlighted

clean and sustainable technologies.

PHOTO: JONAS HÄGGBLOM

A growing portion of Nopef

projects are related to Nordic

environmental technologies

and climate solutions with the

potential to be scaled up in

the project countries.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Report from

the Board of

Directors 2017

This year was characterised by the change

made to the NEFCO Agreement between

the Nordic countries, which entered into

force in June. Although the change does

not shift NEFCO’s focus away from Eastern

Europe, it does make investments possible

in other parts of the world. Investments

outside of Eastern Europe will only account

for a limited amount of activities, but will

open up better synergies with NEFCO’s

fund management activities, which is an

important part of the overall business ac-

tivities. Through the trust funds, NEFCO

was already funding projects globally be-

fore the change to the Agreement.

The new geographical mandate will, in

particular, set more focus on collabora-

tion with the Nopef fund, as projects that

have already received support from Nopef

may in the future be eligible for continued

funding from NEFCO. Nopef funds feasi-

bility studies that support Nordic compa-

nies in their internationalisation as well

as helping them to launch Nordic environ-

mental technology and climate solutions

on new international markets outside the

EU/EEA; in 2017, the fund granted funding

to 70 Nordic small and medium-sized en-

terprises (SME).

The situation in NEFCO’s focus area,

Eastern Europe, remains challenging. The

economic turbulence that has continued

for a number of years did, however, sta-

bilise somewhat during the year, and led

to NEFCO seeing increasing demand for

funding, most of all in Ukraine, towards

the end of the year. In all the project activ-

ities, 123 projects were approved during the

year to a total value of EUR 50.8 million.

Within the Investment Fund, NEFCO’s

authorised capital, 15 new investments

were approved to a total value of EUR 38.5

million, and at the end of the year, the

company had a total of 66 active projects

with commitments totalling EUR 224.8

million. Payments are made with a certain

delay and thus a larger amount of NEFCO's

The amended

NEFCO Agreement

entered into force

during 2017 and

opens up for

investment activities

also outside Eastern

Europe.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

Belarus

New facility for

electric vehicles

In 2017, NEFCO and the

Belarusky Narodny Bank

(BNB-bank) signed a loan

agreement for the develop-

ment of an electric vehicles

facility. The aim of the

loan facility is to promote

electric vehicles in Belarus

and to develop the electric

vehicle infrastructure in the

country. NEFCO will provide

up to EUR 2.5 million to

BNB-bank under the joint

financing facility for a period

of up to five years. The loan

programme will finance

purchases of electric vehi-

cles, hybrid cars, charging

stations, and other technical

equipment by legal entities

and private customers.

BNB-bank will also lease

vehicles to legal entities

and individuals through the

facility.

NEFCO

2017

PHOTO: BNB-BANK

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

resources are already allocated than what

is stated in the company’s Statement of

financial position.

From an environmental perspective, it

is climate-related investments and projects

that dominate. Like in previous years, ener-

gy efficiency measures make up the largest

single category, but there has also been a

positive increase in the number of projects

related to renewable energy production.

NEFCO’s administration also manages

a number of other funds, not just for its

owners but also for non-Nordic contrib-

utors and investors. NEFCO also acts as

an implementing agency for a number

of projects involving major international

funds, such as the Eastern Europe Energy

Efficiency and Environment Partnership

(E5P) and the Northern Dimension Envi-

ronmental Partnership (NDEP). During the

year 2017, both the Arctic cooperation and

the Northern Dimension Environmental

Partnership (NDEP) have created an ex-

pectation that NEFCO will identify small

and medium-sized projects in Northwest

Russia, which would lead to reduction of

mainly so-called ‘black carbon’ (dust, par-

ticles etc.), but also of hazardous waste into

the Baltic Sea. This work will begin in 2018.

Two new funds were set up during the

year – a Nordic pilot scheme for environ-

mental and climate work on collaborative

projects in Northwest Russia, and a Finnish

initiative funding projects in the areas of

energy efficiency, renewable energy and al-

ternative energy sources in Ukraine. At the

end of 2017, NEFCO managed a total of 35

funds with a total value of EUR 353 million.

Over the years, NEFCO has grant-

ed funding to over 715 small and medi-

um-sized, private and public sector proj-

ects across different sectors in 47 countries.

Furthermore, Nopef, since the administra-

tion of the fund was transferred to NEFCO

in 2014, has provided support to more than

285 Nordic small and medium-sized enter-

prises (SME) in their internationalisation

in 52 countries.

The financial and environmental re-

sults from operations were both in line

with expectations. The high risk in the

Investment Fund’s countries of operation

and the low interest level meant that the

operations returned a relatively modest

profit, like in the previous years. Details of

the environmental result are presented in

the Environmental status report.

EVALUATION OF THE ENVIRONMENTAL

EFFECTS OF THE PROJECTS

—

The environmental effects of each project

are assessed using the procedure that has

been developed gradually within NEFCO.

The expected environmental effects are

analysed before a decision is made on the

funding; NEFCO then follows up the actu-

al effects. On average, the environmental

impact of the projects covered by the In-

vestment Fund and by the Environmental

Development Fund show a positive level

as expected. Of the 81 active projects that

were analysed, 39 are classified as projects

that have exceeded the environmental ex-

pectations, 14 are at the expected level, 28

are yet to meet expectations and, in nine

At the end of 2017,

NEFCO managed

a total of 35 funds

with a total value

of EUR 353 million.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

cases, it is not yet possible to draw con-

clusions or the reporting for these is not

yet available.

NEFCO also systematically assesses

the environmental cost-effectiveness of

the projects in relation to the costs in the

Nordic countries in order to achieve corre-

sponding emission reductions. On average,

the cost of emission reductions in NEFCO’s

projects is about one-eighth of the cor-

responding cost in the Nordic countries

generally.

STAFF

—

At the end of 2017, 32 persons worked di-

rectly for NEFCO, four of whom are em-

ployed at the representation office in Kiev,

Ukraine. There are also advisers who work

for NEFCO on a consultancy basis.

Helsinki, 8 March 2018

Harald Rensvik

Chair

Jessica Andersson

Vice Chair

Søren Bukh Svenningsen

Ann-Britt Ylinen

RESULT

—

The annual accounts show a profit of EUR

483,228. In accordance with previous prac-

tice, the Board proposes that the profit be re-

turned to the business as retained earnings.

Danfríður Skarphéðinsdóttir

Magnus Rystedt

Director

This is a shortened

version of the Report from

the Board of Directors 2017.

The full report is available at

www.nefco.org/news-media/

publications-reports/annual-

reports

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Environmental

status report

2017

This report summarises the environmental

results in NEFCO’s funds and focus areas:

The Arctic and Barents Regions, the Bal-

tic Sea, Climate change, and Green growth.

NEFCO’s environmental reporting

covers the Investment Fund (IF) and NMF

Credits (Energy Saving Credits, ESC, and

the Cleaner Production Facility, CPF) as

well as the Nordic Energy Efficiency and

Humanitarian Support Initiative for

Ukraine (NIU). NEFCO also administers

several trust funds on behalf of different

donors and investors for the support of

environmental and climate projects.

NEFCO’S ENVIRONMENTAL PURPOSE

—

Direct and indirect impacts

Environmental benefits can be achieved

as a direct consequence of investments

and indirectly by supporting companies

manufacturing environment-related

products or services. The direct environ-

mental impacts are reported by the pro-

jects. The indirect environmental impacts

are normally calculated based on reporting

by the project companies, e.g. production

of equipment.

Demonstration value impacts

NEFCO’s financing is targeted at small and

medium-sized private and public projects

(SMPs) with demonstration value. Many

of the numerous SMPs financed by NEF-

CO over the years are characterised by a

pioneering spirit and aimed at testing the

application of Nordic solutions – with up-

scaling possibilities – in local, non-Nordic

circumstances.

The support of Nopef in the interna-

tionalisation of green growth companies

benefits the environment and climate, and

creates new jobs in the Nordic countries

and those in which the companies choose

to establish themselves. The majority of the

Nopef-financed projects address energy

efficiency or renewable energy.

Projects with a high demonstration

value have the potential for environmen-

tal impacts that are orders of magnitude

greater than NEFCO’s investment. Howev-

er, these impacts are not calculated as they

are uncertain and could be a long way in

the future. One example is NEFCO’s work

to enhance the Baltic municipalities in the

1990s. Compared with the situation then,

the municipalities have developed great-

ly. With its activities in the 1990s, NEFCO

played a small role in enabling this success.

Additionality

In general, NEFCO seeks projects with

high additionality, meaning that projects

with NEFCO financing have a significantly

higher probability of achieving the envi-

ronmental targets as well as reducing the

time for the implementation (it could be ar-

gued that in some cases they may never be

implemented without NEFCO financing).

NEFCO’s additionality is high. NEFCO

plays an important role in providing fi-

nancing for small projects and risky geo-

graphical areas like Ukraine. In 2017, the

increase in the number of completed mu-

nicipal ESCs and private sector CPF pro-

jects reporting environmental impacts

increased by 23 per cent. Public energy-

efficiency projects generate environmen-

tal/climate benefits and positive economic

returns at the same time to the munici-

palities.

NEFCO is also seen as a financier and

co-financier that gives projects a high en-

vironmental status.

ACCOUNTING PRINICIPLES

—

NEFCO has requested annual environmen-

tal status reports from every project since

1990 when NEFCO was established. The

environmental and financial data from the

individual projects, as outlined above, are

presented in more detail in this Environ-

mental Status Report 2017.

NEFCO

2017

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Table 1.

Indicator

per year

Reductions in IF and NMF Credits

Active and

ended projects

2017

Active and

ended projects

2016

Ptot, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

Ptot agriculture, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

Ntot, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

Ntot agriculture, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

BOD, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

SS, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

27,942

5,943

21 %

28,588

6,081

32,814

7,242

22 %

33,734

7,398

35 %

4,227

814

19 %

4,164

790

13 %

136

924

175

19 %

953

179

Abbreviations

BOD Biochemical oxygen demand

CO2 Carbon Dioxide

MWh Megawatt hours

Nox Nitrogen oxides

Ntot Nitrogen total

Ptot Phosphorus total

SO2 Sulphur oxides

SS Suspended solids

t/a Tonnes annually

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Harmonised approaches in project

impact accounting

The International Financial Institutions¹

(IFIs) have been working together to agree

on a harmonised approach to project-level

greenhouse gas (GHG) accounting. The ra-

tionale for this work is to harmonise GHG

accounting during project appraisal. The

purpose is to establish minimum require-

ments for undertaking this work, all of

which each IFI can optionally exceed with

additional considerations and reporting.

Environmental benefits gained through

completed Investment Fund and NMF

Credit projects or in which NEFCO’s in-

volvement has ceased are calculated as

total emission reductions. The assessment

of the environmental performance of pro-

jects is calculated with the realised an-

nual reductions and the expected annual

reduction based on the project baseline

prior to implementation. The assessment

is normally expressed in a mass unit (e.g.

kg, tonnes) on an annual basis. For the pur-

poses of comparison, the data are shown as

reductions or savings per annum.

In order to avoid double-accounting

with co-financiers, the emission reduc-

tions are also given as prorated to NEF-

CO’s share of the financing.

The harmonised approaches encourage

reporting of long-term project impacts.

The report on the estimated results of a

project’s economic life aims to provide

users with a basis for understanding the

impact of the project over its economic

lifetime. NEFCO’s environmental data-

base also takes into account projects in

which its involvement has ceased. In its

environmental monitoring, NEFCO ap-

plies an annual linear depreciation rate

of 5 per cent on all actual reductions as

of the beginning of the year of the final

repayment. This method was first applied

in 2011.

¹ International Financial Institution Framework

for a Harmonised Approach to Greenhouse Gas

Accounting, November 2015

Table 2.

CO2 emission reductions in NEFCO’s portfolio

Active and

ended projects

2017

Active and

ended projects

2016

NEFCO FUNDS (IF, CPF, ESC, NIU)

CO2, t/a

Sum of Reduction

Sum of NEFCO’s share of reduction

NEFCO’s share

Climate Funds (NeCF and NorCaP)

CO2 (CER)

3,072,164

4,118,274

1,229,606

280,561

23 %

1,088,605

262,659

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO’S ENVIRONMENTAL REPORTING

—

To add transparency in NEFCO’s environ-

mental reporting, the following data are

given:

● Environmental impacts for the whole

project/fund results including lifetime

impacts (20 years after involvement

with 5 % depreciation per year)

● NEFCO share of the project/fund results

with lifetime impacts

● Project/fund results without lifetime

impacts

Environmental benefits can be achieved

as a direct consequence of investments

but also indirectly as NEFCO supports

companies manufacturing environment-

related products.

NEFCO's

investments

reduced direct

carbon dioxide

emissions by

approx. 4.3 million

tonnes in 2017

Table 3.

Air pollution emission reductions in IF, CPF, ESC and NIU

Active and

ended projects

2017

Active and

ended projects

2016

TOTAL IF, CPF, ESC, NIU

Indicator/year

NOx, t/a

Sum of reduction

Sum of NEFCO’s share of reduction

1,897

895

47 %

2,188

1,099

SO2, t/a

Sum of reduction

Sum of NEFCO’s share of reduction

3,623

1,268

35 %

Dust/particulates

Sum of reduction

Sum of NEFCO’s share of reduction

1055

214

20 %

1,169

233

4,021

1,421

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

ENVIRONMENTAL PERFORMANCE

—

In total, 96 % of the projects in the Invest-

ment Fund (IF) and NMF credits (Energy

Saving Credits, ESC, and Cleaner Produc-

tion Facility, CPF), and the Nordic Energy

Efficiency and Humanitarian Support

Initiative for Ukraine (NIU) reported their

environmental results in 2017.

THE BALTIC SEA

—

According to NEFCO’s environmental

status reports, the Corporation succeed-

ed in reducing discharges of phosphorus

from wastewater treatment plants by 924

tonnes in 2017, when taking into account

the whole projects, and phosphorous dis-

charges removed from agriculture of 63

tonnes. The total phosphorous discharge

reduction of 987 translates into discharges

of untreated wastewater from approx. 1.35

million people. NEFCO’s pro rata share of

the reduction is 183 tonnes P/year equalling

wastewater from approx. 250,000 people.

The corresponding figure for nitrogen was

4,292 tonnes N/year and NEFCO’s share 837

tonnes N/year.

CLIMATE CHANGE

—

The climate investments and carbon fi-

nancing reduced direct carbon dioxide

emissions by 4.3 million tonnes.

The bulk of NEFCO’s investment activi-

ties are related to renewable energy and

energy-efficiency measures. Moreover,

most projects co-financed by NEFCO in

the industrial sector included energy-ef-

ficiency measures with tangible climate

emission reductions.

The climate investments in 2017 re-

duced carbon dioxide emissions by 1.2

million tonnes directly, of which NEFCO’s

share was 22 per cent or 270,000 tonnes.

In terms of energy-efficiency measures,

NEFCO managed to reduce energy con-

sumption by 1.68 gigawatt-hours directly.

The increased electricity consumption

in NIU is caused by new buildings. The

total CO2 emission reductions and energy

savings from IF, ESC, CPF and NIU are

presented in Table 2.

NEFCO’S ENVIRONMENTAL GUIDELINES

—

As NEFCO’s environmental guidelines were

launched in 2008, the document has been

revised to reflect current practices more

accurately. The revised NEFCO Environ-

mental and Sustainability Guidelines were

approved in 2017.

NEFCO 2.3.2018

Anja Nystén

Magnus Rystedt

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Emission

reductions

in 2017

Total emission

reductions in NEFCO

financed projects

CO2

direct + CER

4.3 million tonnes

11.3 million people

travelling from

Stockholm to Barcelona

and back by aircraft

SOx

3,623 tonnes

91% of the Danish

and Norwegian

emissions in 2015

Symbols: 'Tap'

by Kenneth Von Alt,

'Lightning' by Ryan

Oksenhorn from

thenounproject.com

collection

* CER = certified

emissions reductions

987 tonnes

Annual untreated

wastewater from

1.4 million people in

Helsinki and Oslo

Energy

1.68 GWh

Annual heating of

approx. 80,000 Finnish

detached houses

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

(Amounts in EUR)

2017

2016

Statement of

comprehensive

income

1 January - 31 December

Income

Interest income, placements with

credit institutions

Interest income, debt securities

Interest income, lending

Interest income, total

Interest expense

Net interest income

-135,911

83,400

3,475,314

3,422,803

-178,626

3,244,177

77,931

83,638

2,864,083

3,025,653

Net result of financial operations

Lending fee income

Other income

Total income

-836,585

547,203

3,448,631

6,403,426

-134,986

422,931

3,974,708

7,288,305

Operating expenses

Administrative expenses

Depreciation and write-down in value

of tangible and intangible assets

Foreign exchange gains and losses

Impairment of loans / reversals

Total operating expenses

5,525,358

21,932

372,908

5,920,198

5,593,207

35,807

-132,996

1,250,000

6,746,018

RESULT FOR THE YEAR

TOTAL COMPREHENSIVE INCOME

483,228

542,287

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

(Amounts in EUR)

31/12/2017

31/12/2016

Statement

of ﬁnancial

position

31 December

ASSETS

Cash and cash equivalents

Placements with credit institutions

Total, cash and cash equivalents and

placements with credit institutions

21,143,046

58,445,862

79,588,908

9,300,424

68,251,944

77,552,368

Debt securities

Investment assets

Other placements

Loans outstanding

Other receivables

Accrued interest

Intangible assets

Tangible assets

TOTAL ASSETS

10,373,315

15,361,841

3,444,928

54,324,738

202,074

730,676

1,936

164,028,416

10,289,601

16,289,044

3,509,410

49,012,193

1,323,272

784,285

23,834

158,784,040

LIABILITIES AND EQUITY

Liabilities

Long-term debt

Other liabilities

Accrued interest

Total liabilities

5,495,670

757,003

85,438

6,338,110

1,576,963

Equity

Paid-in capital

Reserve for investment/credit losses

Operational fund

Retained earnings

Result for the year

Total equity

113,406,560

24,557,177

4,500,000

14,743,340

483,228

157,690,305

113,406,560

24,557,177

4,500,000

14,201,053

542,287

157,207,077

TOTAL LIABILITIES AND EQUITY

164,028,416

158,784,040

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Result for the year

Reserve for

investment/credit

losses

Retained earnings

Operational fund

Paid-in capital

Changes in

equity

(Amounts in EUR)

Equity as of 1 January 2016

Appropriation to the retained earnings

Appropriation to the reserve for

investment/credit losses

Appropriation to the Operational fund

Paid-in capital

Result for the year

Equity as of 31 December 2016

113,406,560

24,557,177

4,500,000

13,150,650

1,050,403

-1,050,403

156,664,790

542,287

113,406,560

24,557,177

4,500,000

14,201,053

542,287

157,207,077

Equity as of 1 January 2017

Appropriation to the retained earnings

Appropriation to the reserve for

investment/credit losses

Appropriation to the Operational fund

Paid-in capital

Result for the year

Equity as of 31 December 2017

113,406,560

24,557,177

4,500,000

14,201,053

542,287

-542,287

157,207,077

483,228

113,406,560

24,557,177

4,500,000

14,743,340

483,228

157,690,305

Proposed allocation of the year’s result:

2017

2016

Appropriation to the retained earnings

RESULT FOR THE YEAR

483,228

542,287

NEFCO

2017

Total

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Cash ﬂow

statement

1 January - 31 December

(Amounts in EUR)

2017

2016

Cash flows from operating activities

Result for the year

Depreciation and write-down in value of tangible and intan-

gible assets

Value adjustments, investment assets

Capital adjustments, other placements

Impairments, lending

Change in accrued interests, assets

Change in accrued interests, liabilities

Lending

Disbursements

Repayments

Prepayments

Capitalisations

Exchange rate adjustments

Change in investment assets

Cash flows from operating activities

-15,187,493

3,715,769

6,970,441

-1,163,194

351,933

-72,797

-3,676,654

-15,024,479

5,465,300

3,000,000

-435,645

-867,673

-1,711,500

-7,486,766

483,228

21,932

1,000,000

64,482

53,609

85,438

542,287

35,807

209,000

62,169

1,250,000

-12,033

Cash flows from investing activities

Change in placements with credit institutions

Change in debt securities

Change in other receivables and liabilities, net

Net cash flows from investing activities

9,806,083

-83,714

301,238

10,023,607

14,320,757

-83,265

-198,975

14,038,517

Cash flows from financing activities

Change in long-term debt

Net cash flows from financing activities

5,495,670

Change in cash and cash equivalents

The cash flow statement

has been prepared using

the indirect method, and

cash flow items cannot

be directly concluded from

the statements of financial

positions.

11,842,622

6,551,751

Opening balance for cash and cash equivalents

Closing balance for cash and cash equivalents

9,300,424

21,143,046

2,748,672

9,300,424

Additional information to the statement of cash flows

Interest income received

3,476,412

3,013,620

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Independent

Auditor's

Report

TO THE CONTROL COMMITTEE OF

THE NORDIC ENVIRONMENT FINANCE

CORPORATION

—

Independent Auditor’s Report on the

Audit of the Financial Statements

Opinion

In our capacity as auditors appointed

by the Control Committee of the Nordic

Environment Finance Corporation we

have audited the accompanying financial

statements of the Corporation for the year

ended 31 December, 2017. The financial

statements comprise the statement of

financial position as at 31 December 2017,

and the statement of comprehensive

income, statement of changes in equity

and statement of cash flows, a summary of

significant accounting policies and other

explanatory notes.

In our opinion the financial statements

give a true and fair view of the Corporation’s

financial performance, financial position

and cash flows in accordance with

International Financial Reporting Standards

(IFRS) as issued by the International

Accounting Standards Board.

Basis for Opinion

We conducted our audit in accordance with

International Standards on Auditing (ISAs).

Our responsibilities under those standards

are further described in the

Auditor’s Respon-

sibilities for the Audit of the Financial Statements

section of our report.

We are independent of the Corporation

in accordance with International Stand-

ards on Auditing, and we have fulfilled our

other ethical responsibilities in accord-

ance with these requirements.

We believe that the audit evidence we

have obtained is sufficient and appropri-

ate to provide a basis for our opinion.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

The Baltic

countries

Equity investment

in the Baltics

NEFCO will invest EUR

3 million in the BaltCap

Infrastructure Fund, which

is a EUR 100 million fund.

The fund will focus primarily

on investments related to

renewable energy, energy

efficiency and transport as

well as social infrastructure

projects. In addition to

economic development, the

projects will bring major

environmental benefits and

savings. This private equity

fund, the first of its kind in

the region, will contribute

to the implementation of

infrastructure projects in all

three of the Baltic countries:

Estonia, Latvia and Lithuania.

NEFCO

2017

PHOTO: 4ENERGIA

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Responsibilities of the Board of

Directors and the Managing Director

for the Financial Statements

The Board of Directors and the Managing

Director are responsible for the preparation

of financial statements that give a true and

fair view in accordance with International

Financial Reporting Standards (IFRS) as is-

sued by the International Standards Board.

The Board of Directors and the Managing

Director are also responsible for such inter-

nal control as they determine is necessary

to enable the preparation of financial state-

ments that are free from material mis-

statement, whether due to fraud or error.

In preparing the financial statements,

the Board of Directors and the Managing

Director are responsible for assessing the

Corporation’s ability to continue as a going

concern, disclosing, as applicable, matters re-

lating to going concern and using the going

concern basis of accounting. The financial

statements are prepared using the going

concern basis of accounting unless there is

an intention to liquidate the Corporation

or cease operations, or there is no realistic

alternative but to do so.

Auditor’s Responsibilities for the Audit

of the Financial Statements

Our objectives are to obtain reasonable as-

surance on whether the financial statements

as a whole are free from material misstate-

ment, whether due to fraud or error, and to

issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level

of assurance, but is not a guarantee that an

audit conducted in accordance with ISAs

will always detect a material misstatement

when it exists. Misstatements can arise from

fraud or error and are considered material

if, individually or in aggregate, they could

reasonably be expected to influence the eco-

nomic decisions of users taken on the basis

of the financial statements.

As part of an audit in accordance with

ISAs, we exercise professional judgement

and maintain professional scepticism

throughout the audit. We also:

● Identify and assess the risks of mate-

rial misstatement of the financial

statements, whether due to fraud or

error, design and perform audit pro-

cedures responsive to those risks, and

obtain audit evidence that is sufficient

and appropriate to provide a basis for

our opinion. The risk of not detecting a

material misstatement resulting from

fraud is higher than for one resulting

from error, as fraud may involve col-

lusion, forgery, intentional omissions,

misrepresentations, or the override of

internal control.

● Obtain an understanding of internal

control relevant to the audit in order

to design audit procedures that are

appropriate in the circumstances, but

not for the purpose of expressing an

opinion on the effectiveness of the

Corporation’s internal control.

● Evaluate the appropriateness of

accounting policies used and the

reasonableness of accounting esti-

mates and related disclosures made by

management.

● Conclude on the appropriateness of

the Board of Directors’ and the Manag-

ing Director’s use of the going concern

basis of accounting and based on the

audit evidence obtained, whether a

material uncertainty exists related

to events or conditions that may cast

significant doubt on the Corporation’s

ability to continue as a going concern.

If we conclude that a material uncer-

tainty exists, we are required to draw

attention in our auditor’s report to

the related disclosures in the financial

statements or, if such disclosures are

inadequate, to modify our opinion.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Our conclusions are based on the au-

dit evidence obtained up to the date of

our auditor’s report. However, future

events or conditions may cause the

Corporation to cease to continue as a

going concern.

● Evaluate the overall presentation,

structure and content of the financial

statements, including the disclosures,

and whether the financial statements

represent the underlying transactions

and events so that the financial state-

ments give a true and fair view.

We communicate with those charged with

governance regarding, among other matters,

the planned scope and timing of the audit

and significant audit findings, including any

significant deficiencies in internal control

that we identify during our audit.

OTHER REPORTING REQUIREMENTS

—

Other Information

The Board of Directors and the Managing

Director are responsible for the other infor-

mation. The other information comprises

the report of the Board of Directors. Our

opinion on the financial statements does

not cover the other information.

In connection with our audit of the fi-

nancial statements, our responsibility is to

read the other information and, in doing so,

consider whether the other information is

materially inconsistent with the financial

statements or our knowledge obtained in the

audit, or otherwise appears to be materially

misstated. Our responsibility also includes

considering whether the report of the Board

of Directors has been prepared in accordance

with the applicable laws and regulations.

In our opinion, the information in the

report of the Board of Directors is con-

sistent with the information in the fi-

nancial statements and the report of the

Board of Directors has been prepared in

accordance with the applicable laws and

regulations.

If, based on the work we have per-

formed, we conclude that there is a ma-

terial misstatement of the report of the

Board of Directors, we are required to re-

port that fact. We have nothing to report

in this regard.

Report on the other requirements

In accordance with the Terms of

Engagement our audit also included a

review whether the Board of Directors’ and

the Managing Director’s administration

have complied with the Statutes of the

Corporation. It is our opinion that the

administration of the Board of Directors

and the Managing Director complied

with the Statutes of the Corporation.

Helsinki, 8 March 2018

Marcus Tötterman

Authorised Public Accountant

KPMG Oy Ab

Töölönlahdenkatu 3A

00100 Helsinki

Finland

Anders Tagde

Authorised Public Accountant

KPMG AB

Vasagatan 16

111 20 Stockholm

Sweden

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Statement

by the Control

Committee

STATEMENT BY THE CONTROL

COMMITTEE OF THE NORDIC

ENVIRONMENT FINANCE

CORPORATION ON THE AUDIT OF THE

ADMINISTRATION AND ACCOUNTS OF

THE CORPORATION

—

To the Nordic Council of Ministers

In accordance with section 9 of the statutes

of the Nordic Environment Finance

Corporation, we have been appointed

to ensure that the operations of the

Corporation are conducted in accordance

with the Statutes and to bear responsibility

for the audit of the Corporation. Having

completed our assignment for the year

2017, we hereby submit the following

report.

The Control Committee met during

the financial year as well as after the

Corporation’s financial statements had

been prepared, whereupon the necessary

control and examination measures were

performed. The Corporation’s Annual

Report was examined at a meeting in

Helsinki on 8 March 2018, at which time

we also received the Auditors’ Report

submitted on 8 March 2018 by the

authorised public accountants appointed

by the Control Committee.

Following the audit performed, we note that:

● the Corporation’s operations during

the financial year have been conduct-

ed in accordance with the Statutes,

and that

● the financial statements as at 31

December 2017 provides a true and

fair view of the financial position as

at December 31st 2017, as well as on

the result of the operations and cash

flows during year 2017. In accordance

with the statement of comprehensive

income the profit for 2017 amounts to

EUR 483 228.

We recommend to the Nordic Council of

Ministers that:

● the result for year 2017 will be treated

as proposed by the Board of Directors,

● statement of comprehensive income

and statement of financial position

will be adopted, and

● the Board of Directors and Manag-

ing Director will be discharged from

liability for the administration of the

Corporation’s operations during the

accounting period examined by us.

Helsinki, 8 March 2018

Jan-Erik Enestam,

Chairman

Staffan Danielsson

Vilhjálmur Árnason

Arto Pirttilahti

Sjúrður Skaale

Michael Tetzschner

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

Ukraine

Implementation

of energy-

efficiency

measures in

public buildings

Grant agreements with

the cities of Druzhkivka,

Pershotravensk and Svatove

for energy-efficiency

measures in public buildings

were signed in 2017. The

projects will be financed by

the Nordic Energy Efficiency

and Humanitarian Support

Initiative for Ukraine (NIU).

All the projects aim to

improve the environment

for the schoolchildren

and to reduce the energy

consumption of the cities.

The projects are expected to

reduce the CO2 emissions by

approximately 1,000 tonnes

annually. Altogether, almost

2,600 schoolchildren will

benefit from the planned

repairs. NEFCO has financed

25 projects in 20 cities and

approved financing for

EUR 12 million since the

establishment of the NIU

funding programme in 2014.

NEFCO

2017

PHOTO: PATRIK RASTENBERGER

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Approved

projects

2017

NEFCO INVESTMENT

FUND – IF (15)

Energy efficiency in pub-

lic buildings in Lutsk,

Ukraine

Land-based fish-farming

with ecological water

recirculation in Latvia

Rehabilitation of the

district heating system in

Horishni Plavni in Ukraine

ENERGY SAVINGS

CREDITS – ESC (9)

Energy efficiency

Production of solar power

in Lviv region of Ukraine

Production of solar power

in China

Introduction of sustain-

measures in budget

buildings in the City of

Kamianske, Ukraine

Energy efficiency

measures in the street

lighting system in Bila

Tserkva, Ukraine

Energy efficiency

measures in two

educational buildings in

Chortkiv, Ukraine

Energy efficiency

measures in an

educational facility in

Baranivka, Ukraine

Infrastructure Fund for

public and private en-

vironmental projects in

the Baltic countries

able solutions and produc-

tion of energy-efficient

equipment in China

Modernisation of industry

Modernisation of a hotel

building (LEED-certified)

in Odessa, Ukraine

Facility for renew-

able energy and energy

efficiency projects in

Armenia

Introduction of sus-

tainable solutions and

production of energy

efficient equipment in

Russia

Energy efficiency in pub-

lic buildings in Georgia

Production of solar

power in Ukraine

Collection and recycling

of waste oil in Russia

processes in Russia

Credit line to finance Nor-

dic deliveries in NEFCO's

countries of operation

NORDIC ENVIRONMENTAL

DEVELOPMENT FUND

– NMF (3)

Support for costs incurred

guaranteeing, project

managing and preparing

for the Ukraine Higher

Education project

Modernisation of street

lighting in Balakleya,

Ukraine

Modernisation of street

lighting in Pokrov,

Ukraine

Energy efficiency measures

Support for project origi-

nation and implementa-

tion for public and private

projects

in a school and modernisa-

tion of street lighting in

Kropyvnytskyi, Ukraine

Modernisation of street

Financing of guarantee

fees for municipal projects

in Ukraine

lighting in Bilhorod-

Dnistrovskyi, Ukraine

Energy efficiency

measures in a

kindergarten in Nikopol,

Ukraine

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CLEANER PRODUCTION

FACILITY – CPF (4)

Energy efficiency meas-

ures in Mykolaiev, Ukraine

Modernisation of the dis-

trict heating production

in Poltava, Ukraine

Modernisation of district

heating in the DWS area

of Kiev, Ukraine

Modernisation of the

district heating in the city

of Dnipro, Ukraine

BARENTS HOT SPOTS

FACILITY – BHSF (5)

Demonstration project

for small-scale waste

management in remote

settlements in Kenozero,

Archangelsk

Demonstration project for

full-scale integrated waste

management in Severod-

vinsk, Archangelsk

Survey for existing small

wind power installations

in Archangelsk

Survey for oil pollution in

Katunino in Archangelsk

NDEP & Black Carbon sup-

port for project develop-

ment in one pilot region

in Barents

NORDIC PROJECT FUND –

NOPEF (70)

INVESTMENT FUND

Distribution by sector

Distribution by

project country

ARCTIC COUNCIL

PROJECT SUPPORT

INSTRUMENT – PSI (6)

BALTIC SEA ACTION PLAN

– BSAP (2)

PROGRAMME FOR

ENVIRONMENT AND

CLIMATE COOPERATION

– PECC (9)

Energy 36.1 %

Industry 36.6 %

Water 20.7 %

Agriculture 5.5 %

Waste 2.2%

Ukraine 23.7 %

Russia 39.4 %

Baltic States 20.0 %

Belarus 5.8 %

Poland 8.4 %

Georgia/Moldova 1.9 %

Slovakia & Czech Rep. 0.8 %

Distribution by Nordic

country

Sweden 28.3 %

Finland 27.2 %

Denmark 20.2 %

Nordic 11.2 %

Norway 11.1 %

Iceland 2.0 %

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NORDIC ENVIRONMENTAL

DEVELOPMENT FUND (NMF)

Distribution by sector

NORDIC PROJECT FUND

(NOPEF)

Distribution by sector

Energy 41.0 %

Industry 28.0 %

Water 13.0 %

Waste 11.0 %

Agriculture 7.0 %

Industry 36.0 %

Energy 34.0 %

Agriculture 16.0 %

Water 9.0 %

Waste 5.0 %

Distribution by

project country

Distribution by region

Russia 45.0 %

Ukraine 29.0 %

Baltic States 17.0 %

Belarus 6.0 %

Other 2.0 %

Poland 1.0 %

Asia 41.0 %

North America 25.0 %

Europe 13.0 %

Africa 12.0 %

South America 8.0 %

Australia 1.0 %

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CASE STUDY

South Africa

Innovative plastic

recycling from the

fishing industry

The Danish company Plastix

A/S has developed an innova-

tive solution related to plastic

recycling and is a forerunner in

its field and when it comes to

circular economy. The market

is today dominated by so-called

virgin plastics. Plastix is, however,

able to produce its green plastic

with up to 95% less emissions

compared to production of virgin

plastics.

Plastix has developed a technol-

ogy to recycle old fishing nets and

trawls as well as plastic fibre and

rigid waste plastic to make new

plastic ‘granulate’ material for the

plastics industry. The company

delivers its material to all types

of plastic producers. Currently

Plastix is developing the possibil-

ity to reuse more plastic waste

that needs to be processed and

a broader assortment of plastic

raw material, as the demand for

recycled plastic raw material is

increasing.

Plastix has registered a local

subsidiary in South Africa reTrawl

South Africa Ltd with the aim of

obtaining plastic raw material,

such as discarded nets, trawls and

other fishing gear, from the South

African market. It was established

following a feasibility study that

was co-financed by Nopef.

NEFCO

2017

PHOTO: PLASTIX A/S

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NEFCO

numbers

2017

Approved projects:

Worth EUR

123 50.8

Total value of funds

administered in 2017 EUR

New investments

in 2017 worth EUR

million

466

Approved renovations for

school buildings and day-care

centres that will benefit over

million

38.5

NEFCO's

projects were

approved in

million

Approved energy-

efficiency measures

to be installed in

At the end

of 2017 NEFCO

administered

000 74

children, teachers and visitors

public buildings

NEFCO

2017

37 35

countries

funds

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Personnel and

Board members

BOARD OF DIRECTORS

DENMARK

Søren Bukh Svenningsen

Head of Division,

The Environmental

Protection Agency/

Ministry of the Environment

and Food

Mikkel Hagen Hess

Deputy Head of

Department, The Trade

Council/Ministry of Foreign

Affairs, Alternate

(until 20.6.2017)

Morten Kruse

Global Anchor, Ministry of

Foreign Affairs, Alternate

(from 14.4.2018)

FINLAND

Ann-Britt Ylinen

Director, Ministry of the

Environment

Kristiina Isokallio

Director, Ministry of the

Environment, Alternate

ICELAND

Danfríður Skarphéðins-

dóttir

Head of Division, Ministry

for the Environment and

Natural Resources

Íris Bjargmundsdóttir

Head of Division, Minis-

try for the Environment

and Natural Resources,

Alternate

NORWAY

Harald Rensvik

Secretary General, Ministry

of Climate and Environment

(until 31.3.2018)

Anne Berteig

Senior Adviser, Ministry of

Climate and Environment

(from 1.4.2018)

Jan Thompson

Senior Adviser, Ministry of

the Environment, Alternate

(until 31.12.2018)

Ingrid Lillehagen

Senior Adviser, Ministry of

Climate and Environment,

Alternate (from 1.4.2018)

SWEDEN

Jessica Andersson

Senior Advisor, Ministry of

the Environment and Energy

Mikael Benthe

Deputy Director, Ministry

for Foreign Affairs, Alternate

(until 31.7.2017)

Gabriel Hjort

Desk Officer, Ministry for

Foreign Affairs, Alternate

(from 13.12.2017)

OBSERVERS

Björn Fritjofsson

Senior Adviser,

Nordic Council of Ministers

(until 31.3.2018)

Anders Hedberg

Senior Advisor, Nordic

Council of Ministers

(from 1.4.2018)

Søren Kjær Mortensen

Senior Director, Head of

Origination, Nordic

Investment Bank

↓

Søren Bukh Svenningsen

Ann-Britt Ylinen

Danfríður Skarphéðinsdóttir

Harald Rensvik

Jessica Andersson

PHOTOS: PATRIK RASTENBERGER

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

CONTROL COMMITTEE

Chairman

Bill Fransson

Director (until 7.3.2018)

Chairman

Jan-Erik Enestam

Minister, Independent

Consultant (from 8.3.2018)

Denmark

Sjúrður Skaale

Member of Parliament

Finland

Arto Pirttilahti

Member of Parliament

Iceland

Teitur Björn Einarsson

Member of Parliament

(until 23.1.2018)

Vilhjálmur Árnason

Member of Parliament

(from 24.1.2018)

Norway

Michael Tetzschner

Member of Parliament

Sweden

Staffan Danielsson

Member of Parliament

(from 1.11.2017)

AUDITORS

Marcus Tötterman

Secretary to the

Control Committee,

Authorised Public

Accountant,

KPMG Finland Helsinki

Anders Tagde

Authorised

Public Accountant,

KPMG Stockholm

Sweden

PERSONNEL

Magnus Rystedt

Managing Director

Johanna Ahlström

Legal Counsel

(maternity leave from

February 2018)

Husamuddin Ahmadzai

Special Adviser, Environ-

ment and Technology

Mia Alén

Financial Controller

Tita Anttila

Vice President, Head of

Legal and Project Adminis-

tration, Chief Counsel

Vivi Avikainen

Project Officer

Amund Beitnes

Senior Investment

Manager

Ulf Bojö

Senior Investment

Manager

Aliona Fomenco

Project Manager

Henrik Forsström

Senior Adviser

Dennis Hamro-Drotz

Investment Manager

(from October 2017)

Kari Homanen

Executive Vice President

(until January 2018)

Josefin Hoviniemi

Communications Manager

(from April 2018)

Kari Hämekoski

Manager

Andriy Katashov

Technical Adviser -

Representative

Office in Kiev, Ukraine

Ritva Kauppi

Senior Legal Counsel

(from January 2018)

Helle Lindegaard

Vice President,

Head of Trust Funds and

Climate, Senior Legal

Counsel

Iryna Lyashenko

Investment Specialist

- Representative Office

in Kiev, Ukraine

Tetiana Lytvyn

Investment Specialist -

Representative Office

in Kiev, Ukraine

Helena Lähteenmäki

Senior Investment Manager

Trond Moe

Executive Vice President,

Investment Operations

(from February 2018)

Ronny Nilsson

Senior Adviser

Tina Nyberg

Project Officer

Alexander Nybonn

Trainee

(from October 2017)

Bo Eske Nyhus

Senior Investment Manager

Anja Nystén

Senior Manager

Environmental Affairs

Lia Oker-Blom

Communications and

Administration Officer

Søren Rasmussen

Investment Officer

(from March 2017)

Mikael Reims

Senior Manager

Bia Saarinen

Assistant / Paralegal

Maija Saijonmaa

Project Manager

(maternity leave until

April 2018)

Julia Shevchuk

Chief Investment Adviser -

Representative Office

in Kiev, Ukraine

Heli Sinkko

Project Manager

(maternity leave until

August 2017)

Tua Skand

Financial Controller

Mia Ståhle-Lauritzon

Financial Controller /

Financial Analyst

Thor Thorsteinsson

Senior Financial Manager

Marina Westerholm

Executive Assistant to

the Managing Director

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

Editor: Lia Oker-Blom

Design: Werklig

(www.werklig.com)

Cover photos:

Jonas Häggblom

Printing house:

Grano,

Helsinki 2018

This NEFCO

publication

has been

printed on

FSC-certified

paper.

NEFCO

2017

EFK, Alm.del - 2017-18 - Bilag 301: Nordic Environment Finance Corporation - Annual Review 2017 fra NEFCO

NORDIC ENVIRONMENT

FINANCE CORPORATION

Street address: Fabianinkatu 34

Postal address: P. O. Box 241

FI-00171 Helsinki, Finland

tel: +358 10 618 003

www.nefco.org / [email protected]

twitter.com/NefcoNordic

instagram.com/nefco_nordic/

linkedin.com/company/nefco

NEFCO

2017