Green Growth Investments Ulf Boj Senior Investment Manager

Green Growth Investments Ulf Bojö Senior Investment Manager Nordic Environment Finance Corporation

Geographic mandate NEFCO in brief • International financial institution established by the Nordic countries • Funds to a total value of EUR 501 million • Headquartered in Helsinki with 37 employees • Locally contracted staff in Russia and Ukraine Helsinki

What does NEFCO do? We finance small and medium sized projects through loans and equity primarily in Eastern Europe. Geographical mandate under discussion. Sustainability. All projects must have a positive environmental impact. They must be cost efficient (comparison with Nordic Shadow prices) and environmentally relevant (Nordic Perspective) projects. Public sector – waste water – Baltic Sea some 40 WWTPs, District heating, Energy efficiency in public buildings Private sector – Industry, agriculture, renewables. Resource and energy efficiency , reduction or elimination of harmful emissions.

Carbon Finance and Funds (CFF) NEFCO Carbon Fund (Ne. CF) • Global public-private partnership carbon procurement vehicle • Launched by NEFCO in 2008 NEFCO Norwegian Carbon Procurement Facility (Nor. Ca. P) • Established on behalf of Norway in end 2013 • For procurement of CERs from vulnerable projects (i. e. mainly projects with no other revenue streams than CER income) • Using competitive Calls for Proposals • First Call: 10 projects contracted amounting to 18. 8 million CERs • Second, joint Call under Nor. Ca. P /Ne. CF closed in December 2014 – final selection in process.

Our environmental results in 2014

Ukraine: High Energy Intensity Ukrainian energy use is currently 3 times higher than the EU average per unit of GDP Energy Intensity of GDP, 2011 Ukraine: 0. 45 EU: 0. 15 World: 0. 20 0. 18 Source: IEA

Other initiatives Reduction of Fuel Subsidies on a National Level • Ukraine – Until recently 8 percent of GDP used for fossil fuel subsidies in e g district heating • Global fossil fuel subsidies - 550 Billion USD • NEFCO active in Nordic Council of Ministers Working Group "Fossil Fuel Subsidy Reform". Reform on national level to reduce subsidies and develop a diverse and sustainable energy system in interested countries. Work in progress.

Nordic Financial Institutions and Sustainability • A lot is being done both in public and private sector in the Nordics. Sustainability almost always considered to some extent in the investment process. • NEFCO • SEB –Global pioneer in Green Bonds • NIB – last week 1 billion SEK Environmental Bond • Almi, 4 000 projects, Vinnova, 2 400, Swedish Energy Agency • SEK, EKN Should we do more? -YES! What? - Let's discuss.

Tack! Ulf Bojö Internet: www. nefco. org