Portfolio overview

Nefco only finances projects that generate positive environmental or climate-related impacts and the majority of the active portfolio is related to climate change mitigation. The largest sectors are energy (including energy-efficiency in buildings and renewable energy), construction and real estate, water supply and waste management, manufacturing, transport, and information and communication.

At the end of 2023, our active portfolio comprised 324 projects. Of these, 83 were Nefco investments and 241 were trust fund projects. During the year, 70 projects ended and 105 new ones were agreed. 

83

Investments
Loan and equity-type financing with Nefco capital

241

Trust fund projects
Financed by various donors with soft loans, grants and results-based financing

At the end of 2023, Nefco had a total of 83 active investments. Our investments related to the transition to a circular economy have increased over recent years, although the majority are still related to climate change mitigation. Energy is the largest sector, followed by construction and real estate, and manufacturing.

An assessment of Nefco’s investments as of 2022, using the objectives defined before November 2023 (Climate Change Mitigation and Adaptation), shows that 73% of the portfolio is EU Taxonomy eligible.

The main challenge in achieving full alignment lies in the fact that our SME clients often encounter difficulties in complying with the DNSH (Do No Significant Harm) criteria for Climate Change Adaptation and the MSS (Minimum Social Safeguards) criteria. This is a common issue for SMEs, which are not yet required to comply with the Taxonomy requirements. However, the EU is aiming to expand the requirements to encompass SMEs as well in the coming years. Thus, as a green financier Nefco strives to bolster its clients’ sustainability strategies and reporting capacities, as it is an opportunity for them to prepare for the future and build competitive advantages. 

At the end of 2023, we had a total of 241 active trust fund projects. There was a rising trend in projects related to climate change mitigation and sustainable use and protection of water and marine resources. The number of projects related to the transition to a circular economy has also increased, from 7 projects in 2021 to 26 in 2023.

Further information about the portfolio and EU Taxonomy assessment can be found in Nefco’s Annual Report 2023.