KommuneKredit provides financing for the green transition of Danish municipalities and regions by issuing green bonds

The local and regional investments in green transition in Denmark, that are among others financed by means of KommuneKredit’s green bonds, are expected to contribute to an annual CO₂ reduction of 665,000 tonnes. This is equivalent to the annual emission of approximately 35,000 Danish citizens. KommuneKredit launched its inaugural green bond in 2017, and by year end 2019 the value of disbursed loans amounted to DKK 13.7 billion.

KommuneKredit has just published its Green Bond Impact Report 2020. The report shows that the green transition of the Danish municipalities and regions, partly financed by KommuneKredit’s green loans, is well under way. In 2019, KommuneKredit’s Green Commitee approved 81 new green loans with a total construction cost of nearly DKK 2 billion. Most of the loans financed projects in district heating and water and waste water management, while a lesser part financed energy saving measures. CEO Jens Lundager is pleased that the association supports local green transition:

“At KommuneKredit we are proud that, in addition to our traditional financing, our green bonds underpin the green ambitions of the municipalities and regions. Projects across Denmark contribute to an annual CO₂ reduction of 665,000 tonnes.”

Green loans to increase

Sustainability is one of the cornerstones of KommuneKredit’s business. In relation to the green transition it is therefore natural for us to underpin the ambitions of the world around us. Jens Lundager expects to see an increase in green loans in the future:

“Concurrently with the increasing demand for green solutions, I expect that green loans will make up an even greater share of our total lending.”

See the list of projects that KommuneKredit finances with green bonds.

Highlights from KomuneKredits Green Bond Impact Report 2020