The Nordic Environment Finance Corporation (NEFCO) is an International Financial Institution established by the Nordic Governments in 1990. NEFCO provides results-based green financing. 

NEFCO was created – after the collapse of the Soviet Union – in order to support the Nordic countries’ efforts to increase environmental awareness in Eastern and Central Europe by providing financing to projects that reduced emissions harmful to the environment. The reasoning was that it made more sense – financially speaking – to support new investments in line with the environmental priorities of the Nordic countries in Eastern Europe – adjacent to the Baltic Sea – compared with the rising marginal cost of introducing increasingly stringent requirements at home, since pollutants do not recognise national borders. Cost-efficiency remains a hallmark of NEFCO’s activities.