NIB and NEFCO sign European Principles for the Environment

On 30 May 2006, the Nordic Investment Bank, the Nordic Environmental Finance Corporation and three other leading European multilateral financial institutions signed the European Principles for the Environment. This initiative is aimed at establishing a common approach to environmental management associated with the financing of projects. By signing the Principles, the five financial institutions commit themselves to further promoting sustainable development and harmonisation of environmental principles, practices and standards of the European Union.

The Principles will serve as an effective mechanism for targeting areas in need for improvement and allow the financial institutions to better manage credit and project risk related to the environment. The new document is from now on a reference for projects located within the EU, the European Economic Area and the EU candidate countries. In all other countries, projects should comply with the Principles with regard to local conditions.

Besides NIB and NEFCO, the European Principles for the Environment were adopted by the European Investment Bank, the European Bank for Reconstruction and Development and the Council of Europe Development Bank.