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Fund to tackle environmental and nuclear waste problems in Northern Europe launched: Pledging Conference raises €110million
The Support Fund of the Northern Dimension Environmental Partnership (NDEP) was launched today in Brussels, at a pledging conference co-chaired by External Affairs Commissioner Chris Patten, Russia's Vice-Minister of Finance, Sergey Kolotukhin, and the President of the European Bank for Reconstruction and Development (EBRD), Jean Lemierre. The Russian Federation, the European Commission and five countries announced initial contributions totalling € 110 million to the Support Fund of which €62 million are earmarked for nuclear projects. The European Commission pledged €50 million, while Russia, Denmark, Finland, Netherlands, Norway and Sweden each pledged €10 million. A number of other countries indicated that they may soon be able to come forward with additional contributions. The launch of the fund was conditional on €100 million being raised: this target was met, indeed exceeded.
The launch of the NDEP Support Fund marks a milestone in the process of improving the environment in the Northern Dimension Area. It will also be an important step in the context of the G8 Global Partnership against the Spread of Weapons and Materials of Mass Destruction. The fund will be used to leverage loans to tackle the legacy of environmental problems and nuclear waste in north-west Russia. The contamination that has its source here, spreads far beyond Russia's borders, and is a matter for international concern, throughout the areas around the Baltic and Barents seas, and beyond.
The Steering Group of the NDEP - the European Commission, Russia, the EBRD, the Nordic Investment Bank (NIB), the European Investment Bank (EIB) and the World Bank - has agreed on 12 priority projects with a total cost estimated at €1.3 billion. In each case, a lead international financial institution (IFI) has been identified. These 12 projects will improve the environment in north-west Russia and the surrounding area, by reducing water and air pollution, protecting in particular the marine environment, and reducing the spread air pollutants in Northern Europe. The Steering Group has also prepared a priority list of nuclear waste management projects, with an estimated cost of approximately €500 million. This is a first step towards dealing with the legacy of spent nuclear fuel and radioactive waste in the Barents Sea region, which is the largest repository of such waste in the world.
The EBRD will manage the Fund on behalf of its Assembly of Contributors. The Fund will remain open for grant contributions from all countries, and today's pledging conference should be regarded only as a first step. There will be two 'windows' to the fund. The Environmental window will exist to provide sufficient capital to soften the conditions under which commercial loans can be granted to Russia to address the projects identified. Here, money pledged to the fund can be expected to have a 'multiplier effect' of roughly 4 -500%. The Nuclear window will operate differently, since experience shows that commercial loans are rarely available for this kind of project.
Donors stressed that the conclusion of the MNEPR agreement (Multilateral Nuclear Environment Programme in Russia) is a crucial precondition to initiate NDEP nuclear-related operations.
Background
The NDEP is a partnership of the European Commission, Russia, the EBRD, EIB, NIB and the World Bank, and is strongly supported by EU Member States. It was launched in 2001 as an aspect of the Northern Dimension. The Northern Dimension was initiated in 1997, to address the specific challenges of the Baltic Sea region, the Arctic Sea region and North West Russia.
The NDEP exists to tackle the environmental problems and risks from radioactive waste, arising in north-west Russia. Its objective is to promote co-ordination between Russia, donors and international financial institutions, making it easier to raise funds for priority projects. The NDEP Support Fund mobilises grant funds from donors, to leverage long-term loans from the IFIs.
Website : http://europa.eu.int/comm/external_relations/north_dim/ndep/index.htm
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