KommuneKredit’s financing supports the ambitious green transition of Danish municipalities and regions
Since 2017, KommuneKredit’s Green Committee has approved 504 green loans worth DKK 22.4 billion in total to support the green transition in local and regional Denmark. The estimated annual CO2 reduction attributed to the projects financed with proceeds from KommuneKredit’s green bonds amounts to approximately 1.74 mega tonnes, which is equivalent to the annual emission of approximately 100,000 Danish citizens.
On May 26, KommuneKredit published its new Green Bond Impact Report. The report shows that the association’s members – the Danish municipalities and regions – continuously put great efforts into realising their sustainability ambitions.
In 2020, KommuneKredit’s Green Committee approved 94 new green loans as eligible for our green bonds with a total project cost of more than DKK 3 billion. A major part of these loans financed projects in district heating and water management, while a lesser part financed clean public transportation and energy efficiency. Managing Director and Chairman of KommuneKredit’s Green Committee, Henrik Andersen, is pleased that KommuneKredit has been able to contribute to the local and regional sustainable investments:
“At KommuneKredit, we applaud our members and customers for their high sustainability ambitions and for accelerating progress towards a low-carbon society through local projects with tangible impact. We also thank our green bond investors for the continued support of Denmark’s green transition”.
Supporting green transition across Denmark
KommuneKredit issues green bonds to provide financing for the green transition across Denmark. Since the inaugural green bond in 2017, the association has issued green bonds annually and has consistently experienced high demand from both national and international investors.
As a basis for these green bond issues, KommuneKredit has approved a total of 504 green loans to projects across most of Denmark’s 98 municipalities. The estimated annual CO2 reduction/avoidance attributed to KommuneKredit’s green loans for these projects amounts to approximately 1.74 mega tonnes, which is equivalent to the annual emission of approximately 100,000 Danish citizens.
Increase in volume of sustainable financing
The members of KommuneKredit have high ambitions for the sustainable transition of local communities. At the same time demand for green bonds and sustainable investments is rising worldwide.
Providing sustainable financing is a cornerstone in the association’s daily work and an integrated part of the 2025 strategy, which is set to futureproof KommuneKredit as a well-run, accessible and sustainable financial institution that finances local governments’ investment in infrastructure and a sustainable transition at the lowest possible cost. Henrik Andersen continues:
“It is our ambition to increase the volume of sustainable financing and over the coming years to expand the types of investments eligible for our green financing conditional upon regulation and the political desire to finance the transition”.
See the total list of green projects that KommuneKredit finances here.