The positive trend for Kommuninvest’s green financing continued in 2021. According to the Green Bonds Impact Report, December 2021, which is presented today, the 491 green investment projects that are financed by Kommuninvest’s Green Bonds together contribute to around 603,000 tonnes annually in avoided or reduced CO2 emissions.
The Green Loan portfolio grew at a more rapid pace than Kommuninvest’s traditional lending. At the end of 2021, it included 491 eligible green investment projects. A total of SEK 58.1 billion had been disbursed in Green Loans. The green share of the total loan portfolio increased to 12.6 per cent.[1]
The impact reporting adheres to guidelines established within the Nordic collaboration that was initiated by Kommuninvest and has resulted in Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting. The reporting includes all investments projects financed by Green Loans within the Green Bonds Framework. All projects can be studied in detail in an Excel file attached to the report.
– Our green financing continues to deliver good results. With a persistent increase in volume and many truly innovative investment projects, the trend is positive. Municipalities and regions are taking a great deal of responsibility for driving the green transition required to ensure a sustainable development path in the long term, says Tomas Werngren, CEO at Kommuninvest.
Key points of the report
As of 31 December 2021, with data for 2020 in brackets
- The expected annual emission saving is calculated at 602,522 (642,875) tonnes CO2, of which 575,127 (604,532) tonnes CO2 are seen as avoided emissions and 27 395 (38,343) 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 fact that the climate benefit decreases despite an increased green lending volume is explained by a few projects where the volumes of renewable energy production decreased in 2021 compared with the year before or alternatively that the share of financing provided by Kommuninvest was reduced.
- The largest contributions to emission saving come from projects in the renewable energy, energy efficiency and clean transportation categories
- There were 491 (416) eligible green investment projects, with SEK 58.1 (9) billion in Green Loan disbursements and SEK 81.3 (74.7) billion in Green Loan commitments
- The Green Loan Ratio, ie. Green Loans in relation to the total loan portfolio, was 12.6 (11.7) per cent. The Green Bond Ratio was 10.8 (8.9) per cent.
- Seven Green Bonds were outstanding, in USD and SEK, for a total amount of SEK 54.6 (43.6) billion
- Total annual renewable energy generation from financed projects is calculated at 2.4 (3.1) TWh. Energy savings from energy efficiency projects amount to 82.1 (111.5) GWh and from green buildings to 56.1 (49.4) GWh.
[1] 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.
Report and attachment
The data in the table “Impact attributable to green bond investors”, on page 3, has been revised in an updated version of the report.
Green Bonds Impact Report, December 2021 updated
Green Bonds Project by project reporting December 2021 (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 73 068 45 45
E-mail: david.ljung@kommuninvest.se
