Update from the Nordic Environment Finance Corporation (NEFCO) on the Arctic Council Project Support Instrument (PSI)

Abstract

"The Arctic Council Project Support Instrument (PSI) focuses on actions against pollution and strengthens the Arctic Council work on environment protection including climate change. The PSI is a voluntary, non-exclusive mechanism for financing specific priority projects that have already been approved by the Arctic Council. For the period up to 2019, about 40 per cent of the pledged PSI resources have been allocated for hazardous waste management, 25 percent for mitigating release of mercury, and 20 percent for projects dealing with clean production, energy efficiency, and short-lived climate pollutants.

A total of EUR 15.86 million have been pledged for the PSI from the contributors Finland, Iceland, Norway, the Russian Federation, Sweden, the United States of America, NEFCO and the Sami Parliament. By December 2015, EUR 12.73 million had been deposited into the PSI accounts. The target for making PSI operational was EUR 3 million. Since PSI operationalisation, in 2014, eight Arctic Council projects have been completed or are near completion with PSI assistance.

For 2016, the PSI will be addressing a pipeline of approximately 31 projects with a total cost estimate of about EUR 58 million. PSI allocations up to 31 December 2015 amounted to EUR 2.3 million of which EUR 0.7 million have been disbursed. Overall, a total of EUR 10.45 million are available for further allocations by the PSI Committee at its Fifth Meeting to be held on 22 March 2016."