NIB seminar in Almedalen Week: Now is the time to invest in the Baltic Sea (video added)

At a NIB seminar held today in Almedalen Week, it was concluded that environmental investments in the Baltic Sea should be made now in order to avoid higher costs in the future.

The seminar, titled “Can the saving of the Baltic Sea be financed?” was held in Visby, on the Swedish island of Gotland.

Many new environmental projects will be developed in national implementation of the HELCOM Baltic Sea Action Plan. A new NIB-NEFCO trust fund (see press release) will help to make them bankable.

“To make environmental projects bankable is a bigger challenge than one might think. Projects must not only be well-defined and documented. A reliable counterpart also has to be identified that represents acceptable risk and return. This is where the new trust fund for the Baltic Sea will work as a catalyst. It will make resources available which are needed to prepare projects so that they can also be financed,” said Johnny Åkerholm, NIB President and CEO, who spoke at the seminar.

The other speakers were Anders Alm, the Swedish delegate in HELCOM, and Erik Båsk, Secretary General of the John Nurminen Foundation.

In his comments, Mr Alm addressed the new initiatives: “When the national implementation plans will be ready, there will be a large portfolio of possible projects. Sweden and Finland have decided to co-finance the NIB-NEFCO technical assistance fund to transform these ideas into projects which financial institutions can consider. It is also very positive to see the engagement of many private investors who are interested in saving the Baltic Sea,” he added.

Mr Båsk emphasised the importance of concrete action, cost-effectiveness, having a measurable and fast impact together with a clear focus as criteria for selecting projects for financing. He sees wastewater treatment projects in St. Petersburg as an example where these conditions are met.

The panellists concluded that political will for the clean-up of the Baltic Sea is not lacking. “EU Baltic Sea Strategy in high on the agenda during the Swedish EU Presidency. This is a very important instrument for supporting the implementation of the Baltic Sea Action Plan,” Mr Alm noted.

The impact of the current economic crisis was also discussed.

“On the one hand, it is clear that economic problems are having an adverse effect on the implementation of environmental projects in the Baltic Sea area. On the other hand, this would be the most favourable time to stimulate economies by channelling public resources to such initiatives. There is an obvious need for it, plans are ready and it would stimulate sectors which have been hit hard by the crisis—such as the construction industry,” Mr Åkerholm pointed out.

“It will of course cost money to implement the BSAP but these costs must be compared with the scenario of non-action. It is important to invest in the environment, especially in times of economic distress,” Mr Alm noted.

Mr Båsk pointed out that there is also a lot of demand for private money for the Baltic Sea. “There are some ‘grey zones’. The projects we are financing have significant environmental effects but they are too small in financial terms for bigger financial institutions,” he concluded.