Arctic Council Project Support Instrument
The Arctic Council Project Support Instrument (PSI) is a voluntary, non-exclusive mechanism that may make use of a broad range of funding arrangements, including grants and revolving instruments. The instrument is administered by NEFCO and the fund provides financing for priority pollution mitigation projects approved by the Arctic Council.
The PSI provides financing for pollution prevention, hazardous waste management, climate change mitigation, cleaner production, energy efficiency as well as decreasing and eliminating the release of hazardous substances, such as mercury, into the environment. Focus areas of the PSI are, for example, the sectors of short-lived climate pollutants including reduction of black carbon, methane, HFC emissions, waste management, e.g. destruction of polychlorinated biphenyls (PCB) and pesticides and reducing release of heavy metals.
Can I apply for funding?
Yes, if you have a project that needs additional financing to reduce pollution of the Arctic. The key criteria used for determining whether a project proposal can be financed by PSI include:
- the project proposal has been approved by the Arctic Council
- the project proposal will lead to concrete actions towards pollution prevention, abatement and elimination with measurable positive effects on the environment of the Arctic
- the project proposal’s potential for being replicated
- the capacity of the recipient to implement the project proposal according to plan
- the potential of the PSI financing to leverage other financing
- the maturity of the project proposal
- a satisfactory risk assessment
- the availability of possibly required local approval(s).
All financed projects are to be action-oriented.The PSI financing is primarily intended for project preparation activities, such as project identification and concept development, pre-feasibility studies, environmental impact assessments, business and financing plans, preparation of tender documents, tendering and evaluation. Also specific measures in the implementation phase of pilot and demonstration projects, including supplies of equipment and services, may be financed.
The current contributions to the PSI funds in the form of deposits, pledges and indications stand at EUR 12.9 million and include contribution from Finland, Iceland, Norway, Russia, Sweden, the US, the Sami parliament and NEFCO. The PSI is open for new contributors and contributions. All Arctic Council members, observers and other interested parties can contribute to the PSI. Contributions are made through NEFCO as the PSI Fund Manager, and formalized by a funds administration agreement.
For additional information, please contact Senior Investment Manager Ulf Bojö by e-mail at Ulf.Bojo [at] nefco.fi or by phone on +358 10 6180 637.