New trust fund for energy efficiency in Georgia

The Danish Ministry of Foreign Affairs and NEFCO have signed an agreement aimed at setting up a trust fund that will provide financial support for energy-efficiency demonstration projects in Georgia. The total value of the newly established trust fund is DKK 11.7 million (approx. EUR 1.6 million).

The fund can provide funding for, for example, energy audit schemes, energy awareness campaigns, feasibility studies, energy management systems and technical assistance for energy-efficiency projects.

In 2014, NEFCO and the Georgian government signed a framework agreement that acknowledges NEFCO’s status as an international financial institution in Georgia. The framework agreement conforms to the objectives of the Eastern Europe Energy Efficiency and Environment Partnership (E5P) to extend operations to other countries in South-Eastern Europe and the Caucasus region.

“The trust fund signed today is a very welcome addition to NEFCO’s fund portfolio and we hope that it will enable us to initiate a range of new energy-efficiency projects in Georgia in the near future,” says NEFCO’s Senior Investment Manager Bo Nyhus.

Presently, the bulk of NEFCO’s investment operations are concentrated in Russia and Ukraine, which are the Corporation’s most important business markets. In 2014, some 33 per cent of all the projects financed by NEFCO’s main financial instruments covered investments in energy efficiency and renewable energy. NEFCO’s climate investments last year contributed to reduced emissions of carbon dioxide by 5.2 million tonnes.

NEFCO’s geographic mandate is currently subject to changes. The corporation’s legal department has also initiated negotiations on signing new framework agreements with the Moldovan and Armenian governments.

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