Kommuninvest’s Green Bonds contribute to cutting CO2 emissions by 643 000 tonnes annually

Kommuninvest today publishes its yearly Green Bonds Impact Report, December 2020. The report shows that the CO2 effects are strong. The 416 green investment projects that are financed by Kommuninvest’s Green Bonds together contribute to avoiding or reducing annual CO2 emissions by around 643 000 tonnes. This corresponds to emissions from approx. 413 000 cars.[1] 

Green lending continued to grow at a rapid pace. At the end of 2020Kommuninvest had built up a loan portfolio of 416 eligible green investment projects. A total of SEK 51.9 billion had been disbursed in Green Loans. The green share of the total loan portfolio had increased to 11.7 per cent.[2] 

The impact reporting covers all municipal and regional investments projects that are financed by Green Loans within the Green Bonds Framework. The report is accompanied by an Excel file where all projects can be studied in detail. The reporting is done in accordance with guidelines established within the Nordic collaborative effort that was initiated by Kommuninvest and has resulted in Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting. 

– The dynamics of green financing is strongDespite the Corona pandemic, volumes have continued to grow. I am impressed by the bold sustainability work carried out by Swedish municipalities and regions. The quality of the green investment projects is consistently very good and there are several positive examples of high levels of innovationsays Tomas Werngren, CEO at Kommuninvest.

[1] The calculation is based on an annual mileage of 12 000 kilometers and on the forecasted weighted average value for 2020 according to the Swedish Transport Administration’s ”Handbok för vägtrafikens luftföroreningar” (2019). 

[2] Data on the number of projects, disbursed loan volume and Green Loan Ratio differ from the information in the Annual Report. This is because a number of projects during the reporting period January-February 2021 have been found to no longer meet the framework requirements and cases where the financing relates to the same physical investment project. 

 

Key points of the report 

As of 31 December 2020, with figures for 2019 in brackets.

  • The expected annual emission saving is calculated at 642 875 (610 596tonnes CO2, of which 604 532 (572 901tonnes CO2 are seen as avoided emissions and 38 343 (37 695tonnes CO2 as reduced emissions. Avoided emissions refers to aalternative 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 416 (329) eligible green investment projects, with SEK 51.9 (40.3) billion in Green Loan disbursements and SEK 73.0 (61.8) billion in Green Loan commitments 
  • Six Green Bonds were outstanding, in USD and SEK, for a total amount of SEK 43.6 (36.6) billion 
  • Total annual renewable energy generation from financed projects is calculated at 3.1 (2.9) TWh. Energy savings from energy efficiency projects amount to 111.5 (110.8) GWh and from green buildings to 49.4 (40.5) GWh. 
  • The Green Loan Ratio, ie. Green Loans in relation to the total loan portfolio, was 11.7 (9.9) per cent. The Green Bond Ratio was 8.9 (8.1) per cent. 

 

Attachments 

Green Bonds Impact Report, December 2020

Green Bonds Project by project reporting, December 2020 (excel)

 

Contact information 

Björn Bergstrand, Head of Sustainability, tel: +46 708 86 94 76, e-mail: bjorn.bergstrand@kommuninvest.se 

David Ljung, Head of Communications, tel: +46 730 68 45 45, e-mail: david.ljung@kommuninvest.se