When KommuneKredit issues green bonds for national and international investors seeking secure and sustainable investments, the proceeds of these are earmarked for green loans which are dedicated to climate and environmentally friendly projects.
På denne side:
We use the net proceeds from our green bonds to finance both new and existing green loans within our six green loan categories. The green loans form part of our green loan portfolio, which is used as the basis of our green bond issuance. We pre-finance green loans until the total disbursed green loan volume enables a green bond issue and as such deploys a bottom-up approach to green financing.
We report on the share of new financing and refinancing by aligning with the Nordic Position Paper approach.
We offer green loans to the district heating sector for energy-efficient district heating or the production of renewable energy for district heating that contributes to energy savings.
We offer green loans for water projects when it involves investments in drinking water and pipeline installations from the water company to the consumer, contributing to, for example, higher supply security, better drinking water quality, reduced water loss, and energy savings.
We offer green loans for waste management initiatives that contribute to sorting or reducing waste volumes.
We offer green loans for financing green buildings, whether it involves new construction, acquisitions, or energy-saving measures that lead to energy-efficient and/or climate-friendly buildings.
We offer green loans for clean transportation when the investment contributes to electrifying regional and municipal transport both on land and water.
We offer green loans for climate adaptation when it involves improving and strengthening the resilience of Danish local communities against current and future climate changes.
Each year, KommuneKredit reports on the environmental impacts of our green loans. We align our reporting with the Nordic Public Sector Issuers - Position Paper on Green Bond Impact Reporting (2024) and apply a portfolio-based approach, reporting on impact at an aggregate level. Additionally, the allocation reporting is reviewed by independent auditors.
See our latest Green Bond Impact Reports
The extrenal members. From left: Hans-Martin Friis Møller, Senior Consultant, Kalundborg Utility; Trine Lidegaard Holmberg, CEO, ARGO; Carl Hellmers, CEO, Fredericia Utility.
Our Green Bond Committee is mandated to approve or reject the preliminary green loans presented to them under the Green Bond Framework 2022. The Committee has five members, three of whoom are external experts. Furthermore, we have two alternate internal members. The external members are employed in the Danish local government sector or in industries relevant to the sector. They have expert knowledge of the sectors proposed to be eligible for lending under the framework, including extensive knowledge of environmental matters, climate change and/or climate adaptation.
Read more about our Green Bond CommitteeIf you would like to know more about treasury and sustainable financing in KommuneKredit, please feel free to contact us.
