NIB and the Nordic Environment Finance Corporation (NEFCO) have signed a new 15-year loan programme of EUR 25 million for financing energy efficiency and renewable energy projects in Eastern Europe, primarily in Ukraine.

NEFCO exclusively finances environmental and climate-related investments, and focuses on small and medium-sized projects that have demonstration value and scale-up possibilities.

The loan programme agreed with NIB will target municipal energy efficiency investments and renewable energy projects that involve know-how from Nordic actors. Thus far, eligible projects within wind and solar power have been identified in Ukraine.

“Ukraine is currently one of the most energy intensive countries in Europe and requires investments to modernise its infrastructure and increase its utilisation of renewable energy sources. The country aims to get 11% of its energy needs from renewable sources by 2020. This new funding enables us to further contribute to the green transition in Eastern Europe,” says Trond Moe, NEFCO Managing Director.

“NEFCO’s knowledge of the regional energy market, along with the long-term financing provided by NIB, allows us to support investments in renewables and energy efficiency in Eastern Europe. Our cooperation will also provide new opportunities for Nordic companies to export technological solutions to the Ukrainian energy sector”, says Henrik Normann, NIB President & CEO.

This is the second loan programme agreed between NEFCO and NIB. The first loan was signed in 2017 for financing the “Ukraine Higher Education Project – Energy Efficiency in Universities”.

NEFCO is an international financial institution owned by the Nordic countries Denmark, Finland, Iceland, Norway and Sweden. NEFCO finances green growth investments in fields such as energy efficiency, clean energy production and wastewater treatment to generate positive environmental effects.