Updated NIB Environmental Bond Framework for low-carbon future

NIB recently published its new Climate Strategy, updated Sustainability Policy and updated NIB Environmental Bond Framework – all interlinked and supporting NIB’s efforts towards a low-carbon future.

NIB recently received a strong endorsement for its environmental financing efforts with the release of a “Dark Green” Second Opinion from S&P Global Ratings. This highest-level rating underscores NIB’s commitment to funding projects that align with strict environmental and climate sustainability criteria.

The Second Opinion was issued in connection with NIB’s updated Environmental Bond (NEB) framework, marking a significant enhancement of their green financing strategy.

NIB Environmental Bond Framework

Since  NIB’s Environmental Bond program inception in 2011, NIB has funded numerous projects focused on sustainability, issuing NEBs totalling EUR 8.5 billion. The updated framework includes stricter criteria for project selection, aligning with NIB’s broader Climate Strategy and the EU Taxonomy for sustainable finance. The projects funded by NEBs are diversified across sectors. The NEBs issued under the updated framework includes new categories like sustainable technology innovation and climate adaptation. Another change is including transmission under Renewable energy, while it used to be in its own category.

Below is a comparison of old vs new NEB categories:

Old NEB categories	New NEB categories
Renewable energy	Renewable energy (including transmission)
Clean transport solutions	Clean transport
Water management and protection	Water management and protection
Green buildings	Green buildings
Energy efficiency	Sustainable fuel production and infrastructure
Transmission, distribution and storage systems	Climate change adaptation
Resources and waste management systems	Sustainable technology, innovation, sustainable manufacturing and carbon capture storage

Based on the updated NEB framework, NIB issued its  largest Environmental Bond to date, a EUR 750 million issuance in September 2024, attracting a significant investor interest, highlighting the trust in NIB’s sustainability initiatives. The funds raised will be directed toward projects that provide tangible environmental benefits in line with the bank’s new NIB Environmental Bond Framework.

In 2024, NIB updated its Sustainability Policy. In its Sustainability Policy, NIB emphasises the integration of Environmental, Social, and Governance (ESG) principles across its financing activities. The updated NEB framework highlights new ESG performance requirements, ensuring that not only the projects but also the counterparts behind them meet robust sustainability criteria. This framework reflects the bank’s focus on driving climate resilience and adaptation across the Nordic-Baltic region

Late 2023 NIB also published it Climate Strategy. NIB’s Climate Strategy sets out clear goals to support the transition to a low-carbon economy. This is closely tied to its green bond issuance strategy, where NIB actively prioritizes projects with high environmental impact, such as sustainable fuel infrastructure and carbon capture technologies. ​

Overall, the combination of NIB’s updated Environmental Bond framework, high ratings from S&P Global, the update to the Sustainability policy and its comprehensive Climate Strategy reflect the institution’s leadership in green finance within the Nordic-Baltic region. These efforts position NIB as a key player in promoting sustainable economic growth through targeted financial instruments.