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

ENVIRONMENT

FINANCE

CORPORATION

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

2

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016NEFCO

3

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016

4

NEFCO

NORDIC

ENVIRONMENT

FINANCE

CORPORATION 22.8.2016NEFCO

5

● 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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

13.1.2017

6

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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016

7

NEFCO

3

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016NEFCO

8

Source: EU Commission, IMF

Photo: Shutterstock

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

Financial

constraints

Capability

and skills

shortages

Relationship gaps

Regulatory and

market barriers

Challenges and barriers for SME-internationalisation

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016 NEFCO

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016

11

NEFCO

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

Nopef grant funding for feasibility studies in Central Asia

22.8.2016NEFCO

12

• 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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

Nopefs project criteria

22.8.2016NEFCO

13

• 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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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.

22.8.2016NEFCO

14

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016NEFCO

15

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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.

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

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

22.8.2016NEFCO

21

NORDIC

ENVIRONMENT

FINANCE

CORPORATION

Thank you for listening!

Mikael Reims

Senior Manager, NEFCO

Riga, 20.4.2017