Environmental review

Finnvera’s environmental review assesses the project’s environmental performance. The review is based on the envi-ronmental studies for the project, benchmarking against the environmental standards of the host country, and the interna-tional environmental standards.

As a rule, the environmental review carried out by Finnvera covers the entire project even if the export credit guarantee was only granted to a part of the project or to an individual equipment delivery associated with a project. If sufficient grounds are given, the assessment may cover all the activities directly related to the project (e.g. an old industrial facility), if these activities are deemed to involve significant environmental risks, or credit risks arising from environmental issues.

The environmental category issued by Finnvera will determine what type of background information is required for the project:

A: An Environmental Impact Assessment (EIA) has been conducted. The EIA report should include the items referred to in Annex 2 to the OECD recommendation. In addition to the assessment of environmental im-pacts, the EIA should involve consulting the local population and other relevant parties, and an Environmental Management Plan.

B: Environmental review is based on the environmental studies on the project, replies given to questions re-garding environmental impacts, and, when necessary, additional studies conducted by independent experts.

C: Does not require environmental studies. However, action may be taken on a case-by-case basis such as checking the validity of an environmental permit.

The owner of the project company and/or the main supplier of the project and/or sponsor of the project and/or exporter are responsible for ensuring that the background studies required by the environmental classification are conducted. The export credit guarantee applicant is responsible for submitting the information to Finnvera.

The project’s environmental performance will be benchmarked against the requirements of local legislation and interna-tional environmental standards. For benchmarking purposes, the technical standards and the relevant safeguard policies of the World Bank Group are used. The project must meet the requirements of local legislation and the international standards, if these are more stringent than the local legislation.

If the project is carried out in the EU and in compliance with the EU legislation, Finnvera will principally make a limited review of the project. The same will apply on a case-by-case basis, if the project is carried out in another country in compli-ance with the legislation of the country in question, when the legislation is comparable to that of the EU. However, all as-sessments, studies and any environmental permits must be made available to Finnvera on request.

Attachments:
OECD environmental agreement (PDF)