Arctic Council Project Support Instrument
The Arctic Council Project Support Instrument (PSI) is a special purpose fund to finance activities aimed at preventing pollution in the Arctic region. The PSI financing is intended for the projects approved by the Arctic Council, an intergovernmental forum established in 1996 to promote cooperation, coordination, and interaction between the Arctic states, Arctic indigenous peoples, and other inhabitants of the Arctic for sustainable development and environment protection. The AC’s activities are conducted in six working groups:
- Arctic monitoring and assessment programme;
- Arctic contaminants action programme;
- Conservation of Arctic flora and fauna;
- Emergency prevention, preparedness and response;
- Protection of the Arctic marine environment;
- Sustainable development working group.
History of PSI
A decision to establish a special purpose fund was adopted in 2002, and the Arctic Council Project Support Instrument Guidelines were approved in 2005.
PSI became operational in 2014, and in 2016 the fund’s pilot phase was extended until the end of 2021.
The PSI contributors are:
- Russian Federation,
- United States of America,
- Sami Parliament of Norway,
The fund manager is the Nordic Environment Finance Corporation.
At the pilot phase, PSI offers only grants but later other forms of financial support will be added: contingent grants and concessional loans.
To be funded, projects should have the demonstration potential, i.e. provide for sharing experience and disseminate results in accordance with the Arctic Council’s policy.
The key funding criteria for PSI are:
- the project proposal has been approved by the Arctic Council;
- the project provides for specific actions with measurable positive effects;
- the project proposal demonstrates the potential for replication;
- the recipient possesses the necessary qualifications and resources to implement the project;
- the PSI will not be the only source of financing;
- the project proposal is mature;
- the risk level is acceptable;
- necessary local permissions and approvals are available.
The PSI financing is primarily intended for the prevention, limitation, and elimination of environment pollution. The PSI aims at significant improvement of the environment through pilot and demonstration projects which may be later replicated and extended.
PSI finances the Project, “Phase-out of Fluorinated Greenhouse Gases and Ozone-Depleting Substances at Fish and Seafood Processing Enterprises of the Murmansk Oblast (Arctic Zone of the Russian Federation).” The project budget is formed by the PSI grant and co-financing.