Danish Environmental Support Fund for Eastern Europe

1. Introduction

Background

In April 1991, the Act on Subsidies for Environmental Activities in Eastern European Countries was adopted by the Danish Parliament and the Danish Environmental Support Fund for Eastern Europe (DESF) was established.

DESF

In 1993, the Danish Environmental Support Fund was incorporated into the new Environment and Disaster Relief Facility (EDRF), a new Danish programme for support to environment and disaster areas. The point of departure was the implementation of the decision to use an increasing amount of funds to support environmental and disaster issues.

Subsequently, the "Strategy for Environmental Activities in Eastern Europe" was drawn up and has since been the basis for environmental assistance in Eastern Europe. The DESF is administered by the Danish Environmental Protection Agency (DEPA), an agency within the Danish Ministry of Environment and Energy.

Danish assistance

Since the enactment in 1991 and the announcement of the Government Order regarding financial support to these activities, the Danish Environmental Protection Agency has provided financial support to some 500 environmental projects at a total amount of DKK 1.2 billion.

In each individual country, a co-operation agreement and a country programme has been drawn up. Denmark co-operates in the environmental field with 12 Eastern European countries, including countries in the former Soviet Union. Danish environmental assistance and environmentally related assistance are primarily targeted at the Central and Eastern European countries which are situated close to Denmark, including Poland, the Baltic States and the Baltic areas of Russia.

In 1998, the DESF facility amounts to DKK 411 million, administered by the DEPA. Within the DESF framework, the Danish National Forest and Nature Agency is responsible for biodiversity and sustainable forestry projects.

In addition to the DESF facility, DKK 141 million is allocated to sector integrated environmental assistance administered by a number of appropriate ministries and agencies. The Danish Energy Agency within the Ministry of Environment and Energy holds DKK 62 million from this arrangement for activities such as energy efficiency etc.

As part of the Danish bilateral environmental activities in Eastern Europe and therefore of the above-mentioned EDRF, the Green Investment Facility under the Investment Fund for Central and Eastern Europe (the IØ Fund) will, in 1998, have DKK 70 million additional to the amount of DKK 259 million allocated during 1995 to 1997. Furthermore, a new environmental soft loan scheme will be available as a special facility under the Export Credit Facility. A sum of DKK 45 million will soften environmental loans in the magnitude of DKK 145 million for Central and Eastern Europe.

Application v. tender

Originally, the DESF required an application from a partnership between a Danish applicant and a partner in the recipient country. This project proposal had to obtain approval from the recipient country authorities. These applications were the basis of priority discussions between Denmark and the recipient countries. In 1995 this model was supplemented with tenders for activities which are given priority by Denmark and the recipient country.