NIB Revamps Environmental Bond Framework to Propel Low-Carbon Initiatives

NIB Revamps Environmental Bond Framework to Propel Low-Carbon Initiatives

(IN BRIEF) NIB has announced its updated Environmental Bond Framework, along with a new Climate Strategy and Sustainability Policy, all aimed at promoting a low-carbon future. The bank received a “Dark Green” Second Opinion from S&P Global Ratings, affirming its commitment to financing environmentally sustainable projects. Since launching its Environmental Bond program in 2011, NIB has issued bonds totaling EUR 8.5 billion, with the revised framework introducing stricter project selection criteria and expanding funding categories to include sustainable technology innovation and climate adaptation. The recent issuance of a EUR 750 million Environmental Bond demonstrates strong investor interest in NIB’s sustainability efforts. NIB’s updated policies emphasize the integration of Environmental, Social, and Governance (ESG) principles across its financing, ensuring that funded projects meet rigorous sustainability standards. These initiatives solidify NIB’s role as a leader in green finance in the Nordic-Baltic region and support the transition to a more sustainable economy.

(PRESS RELEASE) HELSINKI, 10-Oct-2024 — /EuropaWire/ — The Nordic Investment Bank (NIB) has unveiled its enhanced Environmental Bond Framework, coinciding with the launch of its updated Climate Strategy and Sustainability Policy. These developments are intricately linked and designed to bolster NIB’s commitment to fostering a low-carbon future.

Recently, NIB received high praise for its environmental financing initiatives, securing a “Dark Green” Second Opinion from S&P Global Ratings. This top-tier rating emphasizes NIB’s dedication to financing projects that adhere to stringent environmental and climate sustainability standards. The Second Opinion accompanies NIB’s updated Environmental Bond framework, signifying a substantial advancement in its green financing strategy.

Since the inception of its Environmental Bond program in 2011, NIB has financed numerous sustainability-oriented projects, totaling EUR 8.5 billion in issued bonds. The revised framework introduces stricter criteria for project selection, aligning closely with NIB’s comprehensive Climate Strategy and the EU Taxonomy for sustainable finance. The scope of projects financed by these bonds has expanded across various sectors, now encompassing categories such as sustainable technology innovation and climate adaptation. Additionally, the updated framework merges the category of renewable energy with transmission, which previously stood alone.

Comparison of NEB Categories:

Old NEB Categories:

  • Renewable energy
  • Clean transport solutions
  • Water management and protection
  • Green buildings
  • Energy efficiency
  • Transmission, distribution, and storage systems
  • Resources and waste management systems

New NEB Categories:

  • Renewable energy (including transmission)
  • Clean transport
  • Water management and protection
  • Green buildings
  • Sustainable fuel production and infrastructure
  • Climate change adaptation
  • Sustainable technology, innovation, sustainable manufacturing, and carbon capture storage

Reflecting the changes in the NEB framework, NIB issued its largest Environmental Bond to date, a EUR 750 million issuance in September 2024, which garnered significant investor interest, showcasing confidence in NIB’s sustainability initiatives. The proceeds from this issuance will fund projects that yield tangible environmental benefits aligned with the newly established Environmental Bond Framework.

In 2024, NIB also refined its Sustainability Policy, emphasizing the incorporation of Environmental, Social, and Governance (ESG) principles throughout its financing operations. The updated NEB framework introduces new ESG performance requirements, ensuring that both the projects and the organizations behind them adhere to rigorous sustainability standards. This framework underscores NIB’s commitment to enhancing climate resilience and adaptation across the Nordic-Baltic region.

Furthermore, late in 2023, NIB launched its Climate Strategy, which outlines specific goals to facilitate the transition to a low-carbon economy. This strategy is closely linked to its green bond issuance approach, where NIB prioritizes projects with significant environmental impact, including sustainable fuel infrastructure and carbon capture technologies.

Together, NIB’s revised Environmental Bond framework, favorable ratings from S&P Global, updates to the Sustainability Policy, and comprehensive Climate Strategy reflect its leadership in green finance within the Nordic-Baltic region. These initiatives position NIB as a crucial contributor to promoting sustainable economic growth through targeted financial instruments.

Media Contact:

info@nib.int
Tel +358 10 618 001
Fax +358 10 618 0

SOURCE: Nordic Investment Bank

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