The City of Reykjavík has established a Green Framework for the issuance of green bonds to finance construction projects that, among other things, support the Sustainable Development Goals.
SDGs related to the project
Project description
The City of Reykjavík has established a Green Framework for the issuance of green bonds that the City was the first to issue on the Icelandic market. The Green Framework defines several important issues regarding the City's green bond issue: •What investments can be financed by the City of Reykjavík's green bonds •How the administrative process will ensure that only those projects that meet the requirements of the Green Framework will be financed with green bonds • How it will be ensured that funds are earmarked for selected green projects and kept separate from other funds • How the implementation, confirmation by external auditors and professional confirmation of the quality of the Green Framework will be reported Projects that can fall under the Green Framework include, for example, the development of the rapid transit system Borgarlína, the construction of cycling and walking paths, LED street lighting, charging stations for electric cars and more projects that save energy and reduce the emission of greenhouse gases
Objectives of the project
To finance projects that reduce greenhouse gas emissions, save energy, reduce waste generation, support sustainable land use and biodiversity. Also to ensure a sufficient supply of financing on affordable terms. The City of Reykjavík has established a Green Framework for the issuance of green bonds to finance construction projects that, among other things, support the Sustainable Development Goals.
When is the target expected to be achieved?
Green bonds were issued in 2018 and projects that can be financed with green bonds in 2019 have been selected. The issuance of green bonds can be expected to continue for the foreseeable future while financing is needed for projects supporting the sustainable development of the city.
Measurement of performance
An annual report detailing the environmental impact, including by how much greenhouse gas emissions were reduced.
Project progress
1 February 2021
In 2019, the green bond issue RVKG 48 was expanded by ISK 2,820 million. The funding was used to finance defined investments that fall under the Green Framework of the City of Reykjavík. At year-end 2020, a new green bond class (non-indexed) was created. These bonds were sold for ISK 3,820 million and continued to finance defined projects under the Green Framework. In connection with the City of Reykjavík's annual results, the Green Bond Impact Report was published, reviewing investments in terms of their effectiveness in the reduced emission of greenhouse gases. For details see.