The Nordic Investment Bank promotes sustainable growth of its member countries by providing long-term complementary financing, based on sound banking principles, to projects that strengthen competitiveness and enhance the environment.
Defining sustainable growth
Sustainable growth aims to achieve long-term growth without significant or permanent damage to the environment and the economy's natural productive capacity. The sustainable growth perspective looks ahead and seeks to ensure that there are resources for growth in the future.
One of the two pillars of NIB's mandate is to strengthen the competitiveness of its member countries. Competitiveness is seen as a country's ability to achieve a sustainably higher level of wealth and prosperity, normally defined as a higher level of gross domestic product per capita.
By this definition, competitiveness can be improved either by raising the total value of products and services produced or by producing more per given input of labour or capital. In the short run, a multitude of factors affect a country's competitiveness. In the long run, it is mainly determined by the added value a country can provide with its human and physical capital in producing goods and services.
Competitiveness on a national level is a dynamic process. It is not a zero-sum game. Hence, in the long run, if one economy improves its competitiveness it is normally to the benefit of other countries too. An economy is an aggregation of many producing units. It is, therefore, unlikely to become more competitive unless its companies strengthen their competitiveness.
To strengthen the competitiveness of its member countries, NIB provides loans for:
Enhancing the environment is the other of the two pillars. All of the following contribute to sustainable development: preserving, protecting and improving the quality of the environment, protecting human health, the prudent and rational use of natural resources and promoting measures at the international level to deal with regional and worldwide environmental problems. NIB recognises that taking environmental and social aspects into account is part of good business.
NIB's environmental focus areas are: cleaner production and resource management; environmental technology; emission reductions; and renewable energy. In its evaluation of environmental impacts, NIB takes into account these focus areas and quantitative assessments of environmental benefits. An economic and environmental review performed on all projects considered for financing are important factors when the Bank decides whether or not to finance a project.
NIB commits itself to act as a good corporate citizen and will pursue improvements on a permanent basis in its operations and in applying best practices in environmental management in its internal operations. The Bank furthermore works together with other international financial institutions (IFIs) and organisations in order to promote sound, coordinated and effective approaches to environmental issues.
NIB has provided a EUR 61 million loan to DNB Bank ASA. The funds will be onlent to finance one of northern Europe’s largest onshore wind farms, in Jädraås, eastern Sweden.
22 May 2013
NIB and Latvia’s state railway company have signed a new loan for upgrading a railway section in the country’s east-west transport corridor.
22 May 2013
NIB has issued its fourth increase, AUD 100 million, to its 10-year Kangaroo issue due 19 April 2022.
15 May 2013