2019 turned to be a good year for Kommuninvest’s Green Bonds. According to the Green Bonds Impact Report, December 2019, which is released today, 329 green investments together contributed to avoid or reduce annual CO2 emissions by around 611 000 tonnes. This corresponds to emissions from approximately 416 000 cars.
The green part of Kommuninvest’s loan portfolio grew at a fast pace. As of year-end 2019, there were 329 green investment projects in 148 municipalities and regions, an increase from 229 projects in 2018. A total of SEK 40,3 billion had been disbursed in Green Loans, compared to the 2018 number of SEK 25,8 billion. The share of Green Loans in the total loan portfolio had risen to 9,9 per cent, up from 7,4 per cent at year-end 2018.
Despite fast growth, the calculated CO2 savings came in 50 000 tonnes lower than in 2018. This is due to an altered basis for the calculation. Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting, which is produced in a collaborative effort led by Kommuninvest, functions as a general guidance for the impact report. In line with specific changes to these guidelines, the emission factor for electricity has been reduced from 380 g CO2e/kWh to 315 g CO2e/kWh.
The impact report covers all municipal and regional investments projects that are financed within the Green Bonds Framework. The report is accompanied by an Excel file where all projects can be studied in detail.
For this year’s edition of the impact report, a specific in-depth analysis was carried out on the green benefits of investment projects in water and wastewater management. This is a project category which at present makes up around 15 per cent of the Green Project Portfolio, but where investment volumes are expected to see a significant increase in the future. The effects of these projects are relatively strong across a broad spectrum of sustainability factors.
– I am pleased to see that our green financing delivers fast growth and solid effects. Many municipalities and regions have taken leading positions in their sustainability efforts. The quality of the sustainability investments is generally very good. To us, impact reporting is a fundamental part of our work on Green Bonds. Everybody involved should be able to do careful scrutiny and to stay confident that the project portfolio continuously meets high demands, says Tomas Werngren, CEO at Kommuninvest.
 The calculation is based on an annual mileage of 12 000 kilometers and statistics on average emissions from new cars in Sweden in 2018: 122,2 g CO2 per km in mixed driving conditions. Source: Swedish Transport Agency.
Key points of the report
As of 31 December 2019, with figures for 2018 in brackets
• The expected annual emission saving is calculated at 610 596 (662 390) tonnes CO2, of which 572 901 (638 932) tonnes CO2 are seen as avoided emissions and 37 695 (23 458) tonnes CO2 as reduced emissions. Avoided emissions refers to an alternative reference scenario. Reduced emissions refers to a direct or absolute reduction in running operations.
• The largest contributions to emission savings come from projects in the renewable energy, energy efficiency and clean transportation project categories
• There are 329 (227) eligible green investment projects, with SEK 40,3 (25,8) billion in Green Loan disbursements and SEK 61,8 (39,7) billion in Green Loan commitments
• 148 (109) municipalities and regions have taken up Green Loans, which represents 51 (38) per cent of all Kommuninvest members
• Six Green Bonds were outstanding, in USD and SEK, for a total amount of SEK 36.6 (20.4) billion
• Total annual renewable energy generation from financed projects is calculated at 2,9 (3,0) TWh. Energy savings from energy efficiency projects amount to 110.8 (110.8) GWh and from green buildings to 40,5 (33,9) GWh.
• The specific in-depth analysis of projects in water and wastewater management shows, i a, that the emissions of nitrogen, phosphorus and oxygen-consuming substances (BOD) are reduced by more than 380 tonnes, corresponding to 22-29 per cent
• The share of Green Loans in the total loan portfolio was 9,9 (7,4) per cent. The share of Green Bonds in the total amount of outstanding debt was 8,1 (5,1) per cent.
Head of Sustainability
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Head of Communications
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