Gothenburg is Nordic leader on “green bonds”
Electric vehicles for municipal employees. The largest water purification facility in Scandinavia. Biogas technology to produce renewable energy. Richard Forster reports for Cities Today that Gothenburg, Sweden funded these eco-friendly initiatives with “green bonds.”
The city, located on Sweden’s west coast, is considered a pioneer in this area. In September 2013, Gothenburg became the first Nordic metropolis to issue a green bond (valued at $69 million), the article says. In June 2014, the city issued another green bond that raised $264 million.
The strategy allows Sweden’s second largest city to meet environmental objectives that include climate resilience and a transition away from fossil fuels. Magnus Borelius, head of Group Treasury for Gothenburg, tells the publication that the city hopes to issue at least one green bond a year.
According to Brelius, green bonds are like other bonds used to finance infrastructure, except that the city must “report on the impact of th eissue and how the proceeds will be used.”