04.03.2026 | News
Our Annual Report for 2025 shows an active portfolio of 324 ongoing projects with a total value of over EUR 560 million, and positive result of the year despite challenging market conditions and global uncertainty. Our financed activities continued to generate positive environmental and social impact across regions, demonstrating our ability to turn ambition into action.
Nefco – the Nordic Green Bank – has released its 2025 Annual Report, highlighting continued progress in accelerating the green transition through both its own investments and donor-funded programmes (trust funds). We achieved strong results by supporting the growth of Nordic SMEs, advancing green recovery efforts in Ukraine, enabling the green transition of municipalities in Moldova, and financing climate initiatives in Sub‑Saharan Africa.
“The Nordic commitment to concrete climate and environmental action remains strong, even amid geopolitical uncertainty and economic pressure. Nefco continues to be seen as a trusted institution for translating that commitment into tangible results,” says Trond Moe, CEO of Nefco.
Owned by the five Nordic countries, our task is to accelerate the green transition – contributing to the implementation of the Nordic Vision 2030, which aims to make the Nordic region the most sustainable and integrated region in the world.
Nefco’s Annual Report comprises financial statements and a sustainability and impact report. Furthermore, Nefco publishes a separate Ethics and Compliance report. The reports are available here:
A diverse portfolio and positive result
At the end of 2025, Nefco managed 324 active projects:
- 69 loan and equity investments with a total value of EUR 200.5 million
- 255 projects financed through donor-funded programmes with a total value of EUR 362.2 million
In 2025, EUR 77.9 million was disbursed to ongoing projects. Most of our portfolio addresses climate change mitigation, with activities spanning energy, construction, water supply and waste management.
As of 31 December 2025, total equity amounted to EUR 149.4 million (compared to EUR 142.6 million in 2024), and donor funds under management reached EUR 843 million (up from EUR 686 million at the end of 2024).
Highlights from 2025:
- Boosting growth financing for Nordic companies: In 2025, we became the first international financial institution to sign a guarantee agreement with the European Investment Fund (EIF) under InvestEU, increasing access to financing for small and medium‑sized companies across the Nordic countries.
- Green recovery and transition in Eastern Europe: We continued to support Ukraine’s energy security and green recovery amidst the ongoing war. To date, we have raised over EUR 500 million from Nordic and EU donors to our Green Recovery Programme. We have also advanced the green transition in Georgia and Moldova through energy‑efficiency projects. Around 300,000 people across these three countries are expected to benefit from the projects we finalised in 2025.
- Clean energy and modern cooking: Nefco‑managed programmes in Sub‑Saharan Africa brought access to clean off‑grid energy or modern cooking solutions to around 4.5 million people at the end of the year.
- Promoting a healthier Baltic Sea: The Baltic Sea Action Plan Fund saw a record number of applications, leading to the agreement of eight new projects aimed at improving the ecological state of the Baltic Sea.
- EU Taxonomy alignment: 80% of Nefco’s investments were considered eligible or eligible and compliant with the EU Taxonomy’s substantial contribution criteria.
Challenging conditions and difficult cycles
For 20 years, Nefco has worked in Ukraine, and since Russia’s full‑scale invasion in 2022, we have supported Ukrainian municipalities in repairing, rebuilding and future‑proofing critical infrastructure and public service buildings under exceptionally difficult conditions. Despite ongoing challenges, we have maintained our crucial role in deploying funds from the EU and Nordic governments to support Ukraine’s green recovery.
“What strikes me most is the determination of our Ukrainian partners. Mayors and municipal officials continue to plan for the long term, even as their cities face ongoing attacks. They understand that recovery is not only about repair, but also transformation – and they trust Nefco to support that effort,” Moe adds.
Our work with Nordic SMEs was also tested in 2025 as difficult market conditions led to increased credit losses.
“Some companies we believed in did not survive. These setbacks are painful, and they are a reminder that financing green innovation means accepting real risk. But I want to be clear: in this segment of the market, failures will occur alongside successes. What matters is that we learn from experience, sharpen our risk frameworks and focus our support on Nordic companies offering robust solutions and the capacity to scale sustainably,” says Moe.
Yet the impact remains clear across our portfolio: Nordic companies are delivering real environmental benefits, energy‑efficiency is improving in Eastern European municipalities, and access to clean energy and modern cooking in Africa continues to expand.
Strategic clarity and confidence in the road ahead
Last year marked the end of Nefco’s strategic period for 2021–2025 at a time when the external environment had changed significantly. Despite these changes, climate change, pollution, biodiversity loss, and global uncertainty continue to call for bold, practical solutions. Throughout the year, we evaluated our previous strategy and the progress made. This work resulted in a new strategy framework for 2026-2030 that focuses on delivering lasting impact together with clients and partners in the Nordics and near regions with a clear focus on Eastern Europe.
“Together with our staff and Board, we’ve sharpened our focus and priorities for the years ahead. The outcome is a strategy that builds firmly on our identity as the Nordic Green Bank while responding to new realities. The direction is clear: greater focus, stronger partnerships and a continued emphasis on delivering positive impact with speed, quality and integrity. The road ahead will not be easy, but my confidence lies in our ability to collaborate, act and deliver – together,” Moe explains.
In the coming years, Nefco will continue to prioritise Ukraine’s green recovery and support Moldova’s green transition, while advancing environmental improvements across the Baltic Sea region. A key part of our work is also helping Nordic small and medium-sized companies scale up their green solutions. We do this through a commercial, market-based approach, aiming to support more – and larger – investments in more established SMEs.
Read more in our reports:
For further information, please contact:
Trond Moe, CEO, Nefco
trond.moe@nefco.int, +358 50 329 0860
Josefin Hoviniemi, Vice President Communications, Nefco
josefin.hoviniemi@nefco.int, +358 50 464 6995