1. Nordic Environment Finance Corporation Kari Homanen Executive Vice President

2. NEFCO in brief International Financial Institution (IFI), established by the Nordic countries in 1990 Loans and equity investments for environmental projects Funds to a total value of EUR 500 million Managing special funds for the Nordic countries, USA, Germany, the Netherlands, Russia, EU and GEF. Headquartered in Helsinki, Finland with 40 employees Local offices St. Petersburg & Kiev Helsinki Geographic mandate

3. Operational coverage NEFCO’s key operational countries: Belarus, Estonia, Latvia, Lithuania, Georgia, Poland, Ukraine and Russia. on-going Framework Agreement negotiations with Armenia and Moldova Case-by-case projects in China Nopef & climate funds operating globally 3

4. Criteria for projects The project has to deliver measurable reductions of environmentally harmful emissions Only financially viable, bankable investments Tested technology must be applied The project has to be environmentally cost efficient and contain a Nordic interest 4

5. Types of projects Energy efficiency measures Modernisation of industrial production processes Raw material and resource savings Wastewater treatment and waste management District heating modernisation Renewable energy—biomass, wind energy, geothermal energy, small scale hydro power 5

6. Why co-operate with NEFCO? NEFCO offers a wide range of different financial instruments, loans and equity NEFCO financing reduces the project risks NEFCO has long and solid experience in project financing in Eastern Europe NEFCO provides environmental expertise NEFCO has local offices in Russia and Ukraine NEFCO provides networks to environmental players 6

7. Indicators

8. Environmental results

9. Distribution by sector and country 9

10. Historical developments

11. NEFCO financing possibilities 11 Nopef

12. NEFCO Investment Fund (IF) The main financing fund of NEFCO Investment Fund size is EUR 150 million Nordic ownership or interest Finances public / private projects Small and medium sized projects Grant options through NDEP/E5P Flexible investment strategy, loan or equity Procurement of goods and services financed by NEFCO shall be open and fair Annual financial and environmental reporting required 12

13. Terms for the Investment Fund Commercial terms with equity or loans Nordic involvement is a requirement Exposure up to EUR 5,000,000 per project NEFCO's equity contribution can be up to 33% of the total equity Total NEFCO loans up to 50% of the total project cost Maturity up to 10 years Exit for equity investments after 5-7 years. 13

14. The BSAP Fund The Fund was set up in 2010 to speed up the implementation of the BSAP plan NIB and NEFCO are joint managers of the Fund. Sweden has committed SEK 90 million (EUR 9 million) and Finland EUR 2 million The Fund has approved nearly 40 projects per today The projects are spread across the Baltic Sea Region from Russia, Poland, Estonia to Sweden and Finland as well as the Baltic Sea catchment area in Belarus

15. BSAP Projects Biogas production with nutrient recycling Best agricultural practices Pyrolysis and nutrient recycling Deepwater oxygenation Nutrient Retrieval from seabeds Waste water treatment plants Small scale sanitation plant Leakage prevention Alternative fuels Harbour facilities Information centres

16. Speeding up wastewater treament investments WWTP renovations: Feasibility studies, technical documentation and project preparation Estonia Meriküla, Türisalu, Muuga ( 2…15 mEUR cofinancing) Märjamaa, Aespa and Vilivere, Keila Russia Sosnovyi Bor, St Petersburg (small WWTP implementation support ) Sweden Kalmar (studies)

17. Climate Case: Biogas production in Estonia Manure treatment in Oisu, Estonia Production of biogas by Biofund OÜ Project owners: Nelja Energia and Vardar Eurus Estimated reduction of phosphorus: 29.2 tonnes per year Estimated reduction of nitrogen: 27.5 tonnes per year 17

18. Climate Case: Wastewater treatment in Kaliningrad Modernisation of the wastewater treatment plant serving the towns Svetlogorsk, Zelenogradsk and Pionersk Financiers: OKOS, NEFCO, Sweden and the EU Extensive programme covering 20 locations Reductions of phosphorus: 9 tonnes per year The plant is now fully operational and meets HELCOM's standards

19. Climate Case: Improving manure treatment in Nurma, Russia Pig farm some 55 kilometers east of St. Petersburg 80,000 pigs at the farm NEFCO's loan disbursed from the Facility for cleaner production Improved manure treatment reduces the discharges phosphorus by some 129 tonnes per year Savings in water consumption: 230 000 m³ 19

20. Climate Private Sector Case: Production of bioenergy in Grodno, Belarus Rindibel was established in 2008 as a joint venture between Rindi Energi, Volkovysk LesHos, Grodno State Industrial Forestry Association and NEFCO to turn currently unutilized forestry waste into marketable bio-fuel and to provide modern forestry services to local forestry associations.

21. Kari Homanen Executive Vice President Nordic Environment Finance Corporation www.nefco.orgwww.nefco.org, twitter.com/NefcoNordic youtube.com/nefcofinland Thank You !