To prevent and mitigate pollution in the Arctic region
The Arctic Council Project Support Instrument (PSI) finances activities aimed at preventing and mitigating pollution with the Arctic region.
Finland, Iceland, Norway, Russia, Sweden, the US, the Sami parliament of Norway and the Nordic Environment Development Fund, which include contributions from all Nordic countries, the Nordic Council of Ministers and Nefco, contribute to the PSI. The fund is managed by Nefco.
The The Arctic Council Project Support Instrument is a voluntary, nonexclusive mechanism for financing specific priority projects approved by the Arctic Council and can use a broad range of funding arrangements including grants and revolving instruments. PSI finances primarily project preparation activities aimed at preventing and mitigating pollution in the Arctic region.PSI financing is primarily intended for project preparation activities, such as project identification and concept development, pre-feasibility studies, environmental impact assessments, business and financing plans, preparation of tender documents, tendering and evaluation. Also specific measures in the implementation phase of pilot and demonstration projects, including supplies of equipment and services, may be financed.
The key criteria used for determining whether a project proposal can be financed by PSI include:
- the project proposal has been approved by one of the working groups under the Arctic Council
- the project proposal will lead to concrete actions towards pollution prevention, abatement and elimination with measurable positive effects on the environment of the Arctic
- the project proposal’s potential for being replicated
- the capacity of the recipient to implement the project proposal according to plan
- the potential of PSI financing to leverage other financing
- the maturity of the project proposal
- a satisfactory risk assessment
- the availability of possibly required local approval(s).
PSI financing is available to project proposals initiated and approved by all Arctic Council working groups.