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UNCLAS HELSINKI 001236 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: ENRG SENV EUN FI
SUBJECT: BEST PRACTICES FROM FINLAND'S ENERGY AND 
 ENVIRONMENT PARTNERSHIP IN CENTRAL AMERICA 
 
 
¶1.  (U) Summary:  In 2002, Finland established a unique Energy 
and Environment Partnership with Central America, inspired by 
 U.S. private-public partnership concepts, which aims to reduce 
greenhouse gas emissions by promoting the sustainable use of 
renewable energy sources and clean technologies.  To date, the 
 Government of Finland has pledged 7 million euros to support 
over 100 promising renewable energy projects in Central 
America that would otherwise lack necessary funding. 
Finland has created a streamlined approval process that relies 
 upon locally employed staff in Central America and a Steering 
Committee of Finnish and Central American government 
 officials charged with evaluating the financial feasibility 
 and impact of each project.  End summary. 
 
¶2.  (U) The Finnish Ministry for Foreign Affairs (MFA) in 
coordination with the Central American Commission on 
Environment and Development (CCAD) and the Central 
American Integration System (SICA) launched the Energy 
and Environment Partnership with Central America (EEP) 
 to support the development of renewable energy projects 
 in the seven Central American countries: Belize, Costa Rica, 
El Salvador, Guatemala, Honduras, Nicaragua and Panama. 
According to Dr. Markku Nurmi, Director General for 
Sustainable Development at the Finnish Ministry of 
Environment, Finland sees the EEP as a tool for reducing 
greenhouse gas emissions and mitigating the negative effects 
of climate change.  Considered part of Finland's global 
sustainable development aid, Nurmi said U.S. leadership on 
private-public partnerships encouraged Finland to propose 
the EEP during the 2002 United Nations World Summit on 
Sustainable Development in Johannesburg.  The EEP is 
actively working to identify and implement sustainable 
development projects using renewable energy sources 
such as biofuels, hydroelectric, solar, wind, and geothermal 
technologies. 
 
EEP Project Funding and Meetings 
-------------------------------- 
 
¶3.  (U) The Finnish MFA has pledged 7 million euros to 
support over 100 renewable energy feasibility studies and 
pilot programs throughout Central America.  The EEP 
primarily interacts directly with companies interested in 
pursuing energy projects, rather than governments in the 
region.  The EEP has been especially effective in promoting 
small and medium-sized energy projects that often are 
overlooked by traditional funding sources such as local banks. 
In each case, following an initial project feasibility study, the 
EEP works with regional financial institutions to secure funding. 
Financing is currently proceeding for the first energy producing 
project, a wind farm in Guatemala that is expected to be 
operational in 2009. 
 
¶4. (U) The EEP also sponsors biannual meetings for government 
 and private sector stakeholders on key renewable energy topics. 
A February 2007 meeting in Guatemala will include workshops 
 on financing renewable energy projects, as well as discussions 
on converting sewer waste into burnable gas.  An October 
2007 meeting in Belize will focus exclusively on energy from 
sewer waste.  Finland welcomes U.S. participation at any 
EEP meetings.  Additional information can be found at: 
http://www.sica.int/busqueda/busqueda_basica. aspx?Id 
Cat=47&IdMod=8&IdEnt=117&Idm=2&IdmStyle=2 
 
Secrets to Success: Finland's Partnership Strategy 
 
SIPDIS 
--------------------------------------------- ----- 
 
¶5. (U) With over 100 projects under way, the EEP has been 
successful in generating projects largely because of Finland's 
pragmatic strategy that focuses on results rather than red tape. 
Nurmi said the first step is to employ local professionals (rather 
than sending Finns to Central America) who can evaluate 
proposals while working side-by-side with project coordinators. 
 Second, before funding is granted, each project must be 
approved by a Steering Committee that includes government 
representatives from the Environment and Energy Ministries 
of the seven countries in the region and Finland.  Government 
involvement on the Steering Committee guarantees high-level 
government support without extra layers of bureaucracy. 
Third, all project proposals are evaluated locally using a 
pragmatic, results-driven scale that measures the economic, 
social and environmental impact of each project, as well the 
possibility of replicating the project elsewhere.  If a project 
cannot be shown to be financially feasible and self-supporting, 
 
it is quickly eliminated from consideration.  Fourth, the EEP 
is administratively lean, removing barriers that would 
typically discourage small to medium-sized projects. 
 
¶6. (U) Comment: The Energy and Environment Partnership 
exemplifies the typical pragmatic Finnish approach; one 
that focuses on "rolling up your sleeves and getting something 
 done."  Similar to the U.S. approach, the EEP uses technology 
to address climate change issues on a regional basis.  End comment. 
 
WARE