Our Green Bond Impact
The objective of this report is to promote transparency and integrity in regard to the impact of the Norwegian local government projects financed under KBN’s Green Bonds Framework by the end of 2016. KBN has acquired USD 1.00 billion through green bond funding and has a portfolio of green loans of USD 1.13 billion.
In 2013, KBN was one of the first European green bond issuers. Today, three issuances later, we are determined to continue working for a green bond market marked by ever greater transparency and integrity. We hope the report will be of use to international investors and Norwegian local government decision makers alike, says Lars Strøm Prestvik, Chief Lending Officer, KBN Kommunalbanken Norway.
The report compiles impact and benefits from 63 projects funded by KBN’s green lending program. The projects range from quite small and local in scope, to some of the larger ongoing Norwegian infrastructure projects. KBN’s objective is to ensure that the projects in the green portfolio today is compatible with the low-carbon society envisioned for 2050. KBN’s green loans finance buildings and infrastructure for transport, water, wastewater and waste management in Norwegian municipalities and counties.
- 12 935.5 tonnes of CO2 reduced annually
- 10 438.6 tonnes of CO2 avoided annually
- 18.5 GWH renewable energy produced annually
- 9 GWH energy reduced + avoided in buildings annually
- 118 009 m2 of sea floor restored
- 56 311 tonnes added capacity of sustainable waste management
The impact report gives an overview of all the projects included in our green portfolio as well as their impact. The report also presents selected cases where the impact of these projects are broadly presented.
The report has been well received the investor community:
“As an investor in the KBN Green Bond we are very pleased with this convincing report - transparent with very specific and detailed information, at the same time easy to understand. Especially the use of indicators like GHG reduction, energy savings and renewable energy generation helps to understand the impact achieved with green bonds. We hope that other issuers are inspired to follow.”
- Doris Kramer, Head of Investment Strategies and Sustainability at KfW
“We welcome KBN's very comprehensive report. Priority sectors such as renewable energy, energy efficiency and green transport are disclosed as receiving disbursements. We also greatly appreciate very specific data such as energy savings, KBN's share of the project and GHG emissions reduced. Additionally, the examples of specific projects are of particular value, as in the final analysis it is the impact on the real economy which makes the important difference."
- Chris Wigley, Senior Portfolio Manager at Mirova
“Kommunalbanken continues to be a leading issuer of green bonds in Europe. We welcome the improvements made to its green bond framework which made it more transparent for investors to better understand the projects with which the bond proceeds are financing. We invested in the 2016 issued green bond.”
- Yo Takatsuki, Associate Director, Governance and Sustainable Investment at BMO Global Asset Management
Note: The PDF version of the impact report was updated in September 2017 in order to correct a few typing errors. The key figures of the report have not been amended.