Nordic Investment Bank (NIB) Unveils Ambitious Climate Strategy at COP28

Nordic Investment Bank (NIB) Unveils Ambitious Climate Strategy at COP28

(IN BRIEF) In a groundbreaking move at COP28, the Nordic Investment Bank (NIB) has introduced a robust climate strategy, pledging to chart a sustainable future. This forward-looking strategy commits NIB to concrete, science-based targets aligned with the Paris Agreement, with a primary focus on reducing greenhouse gas emissions through its financing activities and operations. With ambitious goals set for substantial emissions reductions by 2030, NIB aims to align with the EU’s climate neutrality objectives and the more stringent targets of its member countries. The strategy highlights NIB’s role in fostering a just transition to a net-zero emissions future by 2050 and building resilience to climate-related risks, underpinned by its commitment to cease financing fossil fuel energy generation.

(PRESS RELEASE) HELSINKI, 4-Dec-2023 — /EuropaWire/ — NIB has launched a new climate strategy, setting an actionable path towards a sustainable future at the COP28, the latest global climate conference. This strategy commits NIB to concrete, science-based targets that align with the Paris Agreement, reducing greenhouse gas emissions through its financing activities and operations. By setting its own climate targets, NIB will be better placed in supporting the decarbonisation goals of its Nordic and Baltic member countries.

NIB’s climate strategy sets ambitious targets, including a significant reduction in emissions by 2030, to align with the EU’s climate neutrality goals and the more stringent aims of its member countries. Detailed targets and the full scope of NIB’s climate action plan are outlined in the strategy, highlighting the Bank’s role in supporting a fair transition to net-zero by 2050 and foster resilience to climate-related risks.

“NIB is committed to accelerate the climate action, setting ambitious science-based targets for 2030, including a 55% reduction in emissions to support the EU’s climate neutrality goals. We will submit our targets for approval from the Science Based Target initiative (SBTi) to ensure that our efforts are aligned with the latest scientific evidence. We are also dedicated to collaborating with other financial institutions to further a sustainable future,” says Luca De Lorenzo, Head of Sustainability & Mandate at NIB.

With NIB’s member countries at various stages of their transition, NIB commits to providing sustainable finance to help meet and exceed their environmental ambitions.

NIB’s financed emissions will be reduced to align with the 1.5°C global warming scenario, with lending targets set against science-based and sector-specific decarbonisation pathways:

• The bank has set targets for sectors such as power and heat, aiming for a 53% reduction to 30 gCO2/kWh by 2030, and has set specific decarbonisation goals in carbon-intensive raw materials such as steel, cement and aluminium.
• To facilitate a broad-based transition to net-zero, the bank will focus on both ‘fast-lane’ sectors with green solutions and ‘slow-lane’ sectors, addressing the challenges faced by industries with fewer low-carbon options.
• For capital goods and consumer retail, NIB aims for on-balance exposure with the SBTi target coverage of 80% and 76%, respectively, by 2030.
• Commercial real estate is targeted for a 30% reduction in emissions to 6.0 kgCO2/m2 by 2030.
• NIB recognises the essential role of airports in regional productivity and, while not setting specific decarbonisation targets, actively supports the shift towards sustainable, net-zero airports. This strategy balances the current challenges in decarbonising air transport with the economic importance of airports, reflecting NIB’s mission to finance projects that improve productivity and benefit the environment.

• Operations-wise, NIB is targeting a 35% reduction in its direct emissions (i.e., scopes 1 and 2) by 2030 from the 2022 base year.

NIB focuses on climate change mitigation, prevention, adaptation, circular economy, and pollution reduction. In 2021, NIB stopped financing fossil fuel energy generation, including upstream activities and processing. Further information of NIB’s Climate strategy and annual reporting are available at www.nib.int.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

Media Contacts:

Luca De Lorenzo
Head of Sustainability & Mandate at NIB
+358 010 618 0297
Luca.DeLorenzo@nib.int

Jukka Ahonen
Senior Director, Head of Communications
+358 10 618 0295
jukka.ahonen@nib.int

SOURCE: Nordic Investment Bank