The Government approved a draft law on the ratification of the framework agreement between Moldova and the Nordic Environment Finance Corporation (NEFCO) that was signed in Chisinau on June 21 this year. The document was adjusted to the objectives of the Eastern Europe Energy Efficiency and Environmental Partnership (E5P), IPN reports.
The agreement will take effect when it is ratified by Moldova’s Parliament and is signed for an indefinite period.
The Nordic Environment Finance Corporation (NEFCO) is an International Financial Institution established by the Nordic Governments in 1990. NEFCO provides results-based green financing. All projects to be financed by NEFCO need to be able to demonstrate that they will benefit the environment/climate in a cost-effective way. To ensure that these benefits will in fact materialize, financing is released in tranches against monitored milestone results.
The Eastern Europe Energy Efficiency and Environmental Partnership is a €180 million multi-donor fund managed by the EBRD and designed to promote energy efficiency investments in Ukraine and other Eastern Partnership countries. The E5P merges financial contributions from the European Union and a group of 21 nations. The contributions are used as grants to support municipal sector projects.
