The agricultural sector from NEFCO

1

• The agricultural sector from NEFCOs perspective
  

2

• NEFCO
• a regional international financial institution
• established in 1990 by the 5 Nordic countries
• has as its purpose to promote cost effective
  solutions to reduce the environmental load from
  the adjacent region
• finances projects primarily in the Baltic Sea
  region and in NW Russia
• mainly focuses on small and medium sized projects
• provides equity financing, loans, soft loans,
  contingency financing and in some cases grants

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• AGRICULTURE ENVIRONMENT
• - The agricultural sector is a significant
  source of emissions (primarily nutrients and
  pesticides)
• - In the Baltic Sea the nutrient load is the
  single most important element of the
  environmental load
• - In all countries of the Baltic Sea region
  agricultural emissions remain a problem

4

• - Experience shows that it is difficult and
  time-consuming to reach significant reductions of
  agricultural emissions
• - A wide range of measures is required involving
  development of best practice methods investment
  in appropriate equipment and technology

5

• NEFCO ACTIVITIES
• - A limited number of pilot demonstration
  projects in the agricultural production and food
  industry sectors
• - Positive experience from successful Polish
  program (NEFCO involvement through NEDF grant and
  EC-Phare-LSIF grant managed by NEFCO)

6

• - Small scale loan scheme for Estonia, Latvia,
  Lithuania under preparation in co-operation with
  the World Bank, GEF and Swedish BAAP
• - Development of agricultural credit is of
  importance as a means of non-subsidized
  financing. Subsidies will always cover only part
  of the costs
• - All financing (subsidies as well as loans)
  should integrate sustainability criteria
• - Effective monitoring important for
  fulfilling sustainability

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STEPS FORWARD - Set realistic goals and
timetables - Partial, stepwise solutions are
necessary - Select cost effective technical
solutions - Capacity building and training are
critical