Post on 02-Aug-2020
NORDIC
ENVIRONMENT
FINANCE
CORPORATION
NEFCO and Nopef grant
funding for feasibility
studies in Central Asia
Matchmaking between Nordic and Baltic SME's and clusters for joint exportability in Central Asia
Riga, 20.4.2017
Mikael Reims
Senior Manager
Nordic Environment Finance Corporation (NEFCO)NORDIC
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FINANCE
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NEFCO in brief
● The Nordic Environment Finance Corporation (NEFCO) is an
International Financial Institution established by the Nordic
Governments in 1990.
● NEFCO was created – after the collapse of the Soviet Union – in
order to support the Nordic countries’ efforts to increase
environmental awareness in Eastern and Central Europe
● NEFCO provides results-based green financing by providing
financing to projects that reduced emissions harmful to the
environment.
● Funds to a total value of approx. EUR 470 million and approx. EUR
156 million in own capital
● Headquartered in Helsinki with 30 employees representation in
Russia and Ukraine
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NEFCO's financial instruments● Loans and equity
Loans on market terms and, in special cases, on favorable terms to private and
public companies as well as municipalities. Share capital in companies for
environmental investments of interest to the Nordic countries.
● Buyers credits
Export credits for environmental projects in Eastern Europe
● Project support / grants
Project financing in the Arctic, Barents and Baltic Sea area
● Grants for internationalisation
Conditional loans for feasibility studies for the internationalisation of Nordic SME's
● Fund management
Funds for the implementation of climate investments and green projects
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Where we are● NEFCO invests its own capital through its
Investment Fund, and manages some 30
trust funds governed by different
geographical mandates.
● NEFCO’s Investment Fund is focused on
projects in Eastern and Central Europe
● Key areas Russia, Ukraine, Belarus,
Estonia, Latvia, Lithuania, Poland
Armenia, Georgia and Moldova,
● Opportunities in Central Asia through
NEFCO new mandate signed 14.12.2016
● A global presence through Trust Funds
related to climate and Green growth
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● NEFCOs new strategy will enable to explore new
projects outside Eastern Europe by providing
loan capital and equity globally for relevant green
growth investments of interest to the owner
countries Denmark, Finland, Iceland, Norway and
Sweden
● Targeting the reduction of pollutants affecting the
Baltic Sea and the Arctic and Barents regions,
and
● To enhance existing activities and initiate new
interventions related to further prevent Climate
Change
● The promotion of Green Growth
● Focus on small and medium-sized projects
Focus areas for NEFCO
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Nordic Project Fund (Nopef)Grants for internationalisation● Nopef established by the Nordic countries 1982, part of NEFCO since 2014
● Objective to strengthen the international competitiveness of Nordic SME's
● Focus on Green Growth
● Grants for feasibility studies outside EU/Efta
● Funded by the Nordic Council of Ministers
● Over 100 million EUR in funding for some 2900 projects
● Contributed to the internationalisation of 1000 Nordic SME's
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Nopef accumulatedproject activity 1982-2016
-
20
40
60
80
1 00
0
500
1000
1500
2000
2500
3000
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Granted funds Mill EUR Number of projects
Mill EURNumber of projects
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46
19
34
5
4
2 9
6
3
5
10
3
14
6
5
3
5
3
22
2
2
23
4
2
34
A global project presence229 co-financed projects by Nopef since 2014
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Why support for SME internationalisation matters
● The SME sector represent 67 % of private sector
jobs and 85 % of job creation in the Nordic
region
● An estimated 90% of global growth this year will
originate from outside the EU
● Emerging economies could account for 60% of
world GDP by 2020
● Internationally active SME's show higher growth
in jobs and turnover
● Strong relationship between internationalisation
and innovation
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Source: EU Commission, IMF
Photo: Shutterstock
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Financial
constraints
Capability
and skills
shortages
Relationship gaps
Regulatory and
market barriers
Challenges and barriers for SME-internationalisation
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Project proposal
• Business idea
• Target country
• Market screening
• Country selection
Project evaluation
• Market analysis
• Risk analysis
• Stakeholders
• Investments
• Profitability
• Due diligence
• Environmental
Business Plan
• Financing
• Organisation
• Management
• Funding
• Legal
• Logistics
• Infrastructure
• Localisation
GO or NO-GO
Start-up
• Subsidiary
• Joint Venture
• Acquisition
• Pilot installation
• Agreements
• Product launch
• Business development
Nopefs role in the internationalisation process of SME's
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Nopefs added value to SME's
● A unique financing instrument for Nordic SME's
● Support in an early stage of internationalisation
● Risk sharing on new demanding markets
● A more informed investment decision
● Information och advice based on 30-years of experience
● Transfer of business models, solutions and best practices
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Nopef grant funding for feasibility studies in Central Asia
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• Funding for feasibility studies aiming at establishment of
permanent business activities in Central Asia
• Interest-free conditional loans of up to 40% of the approved
feasibility study costs for a maximum amount of EUR 50,000
• Salaries, travel, consultants, legal,
• Market research, risk analysis, business plan
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Nopefs project criteria
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• SME´s with operation in the Nordic region and
• Commercially proven products or services
• Clearly defined and financially viable projects
• Investments and establishment of permanent business activities
• Total de minimis support received over a 3 year period not
exceeding EUR 200 000
• Positive environmental impact and promotes Green growth
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Nopefs focus on Green Growth
OECD:
Green growth means promoting economic growth while reducing
pollution and greenhouse gas emissions, minimising waste and
inefficient use of natural resources, and maintaining biodiversity.
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Energy and material efficiency
Renewable energyInfrastructure and
Grids Building technology
Recycling and Waste management
Water treatment
Air and ventilation technology
Environmental Control and monitoring
Automation and Control Technology
Materials handling and Logistics
Intelligent Systems and Green ICT
Response and Safety Technology
Focus on Green Growth Business areas for Nopef funding in Central Asia
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CASE STUDY
FERTILISERS FROM ORGANIC WASTE IN CHINA• The Norwegian company HØST AS has innovated
processes to reuse organic waste by converting it
into energy, fertiliser, soil and soil amendments.
• Yunnan Sino-Norway Bio-Engineering Co. Ltd.
assists the Chinese authorities in handling organic
waste, addressing water pollution and mitigating
greenhouse gas emissions.
• The plant has an annual production capacity of up to
50,000 tonnes of fertiliser.
• The project was initiated after a feasibility study co-
financed by the Nordic Project Fund.
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CASE STUDY
ENERGY CONSULTING SERVICES IN GEORGIA• Established in 2008 and today on of Iceland's leading
engineering and consulting companies
• LP-VERKIS was established in January 2016 by
Icelandic firms Landsvirkjun Power and Verkís
Consulting Engineers, following eight years of
cooperation on hydropower projects in Georgia.
• LP-Verkis LLC provides design and consulting services
in the field of hydropower, geothermal energy and
infrastructure as well as power plant operation,
rehabilitation and maintenance services based on
decades of Icelandic and international experience
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CASE STUDY
MICRO TURBINES FOR INDUSTRIAL USE IN BELARUS
• Aurelia Turbines Oy established in 2013 in order
commercialize technology developed in Lappeenranta
University of Technology, Finland within micro turbines
• Aurelia’s combustion process has been developed to use
renewable and other non-standard fuels.
• Belarus has a huge demand for improvements of existing
energy infrastructure, end customers include small
industries, energy companies, utilities, oil and gas sector
• A Joint Venture and agreement on delivery of five turbines
has been signed in 2016
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CASE STUDY
CONSULTING WITHIN THE TELECOMS SECTOR IN MYANMAR
• Telcon A/S established 2005 to deliver services and
consulting within the telecoms sector
• Telcon offer everything from site acquisition to project
management as well as maintaining contact to
landowners and authorities.
• Demand for improved energy efficiency in the telecoms
sector in Myanmar.
• Established offices with 30 employees in Yangon,
Myanmar following feasibility study co-funded by Nopef
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CASE STUDY
BIOENERGY PLANT FOR HEAT AND POWER TO CHINA• Nordautomation Oy was founded 1991 to serve the
wood processing industry an has long experience in
mechanical, electrical and automation engineering.
• Has developed is a multi-biofuel power plant that
produce heat and also electric power
• In China, there are a lot of different solid waste
(plastic, food and animal residues) and land biomass
(straw, husk, woodchip), which can be utilized
• Nordautomation has signed JV agreement to build a
pilot plant for testing and in time to make required
preparations for starting series production
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Checklist for Nopef feasibility study grants
✓ The applicant is an SME with operations in the Nordic region
✓ Commercially established products or services
✓ Within Nopefs Green growth mandate
✓ The project targets a permanent business establishment
● Funding applications are accepted continuously
● The application process on average takes 5-6 weeks
● Start by visiting www.nopef.com and sending a contact request
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Thank you for listening!
Mikael Reims
Senior Manager, NEFCO
Riga, 20.4.2017