Discuss green bonds with NIB at Folkemødet

On Friday 12 June, you are welcome to take part in a panel debate discussing how capital markets can contribute to sustainable, green economies. The debate is part of Denmark’s “People Meeting”, or Folkemødet, and is arranged in cooperation with the Nordic Council and the Nordic Council of Ministers in the town of Allinge on the Danish island of Bornholm.

The idea of Folkemødet is for people and politicians to meet and debate current political issues.

NIB’s vision is for a prosperous and sustainable Nordic–Baltic region. We work towards that goal by financing projects that improve competitiveness and the environment of the Nordic and Baltic countries.

As people have become more aware of the need for sustainable development of our societies, economies and the environment, so have the financial markets. The market for green bonds has experienced strong growth during the last three years. However, there are differences in opinion, and we ask whether green bonds can make a difference or if it is just marketing.

NIB issues NIB Environmental Bonds (NEB, read more) and the proceeds have been used to finance 22 projects, of which Dong Energy’s Anholt offshore wind farm was the first, in 2012. The debt obligations carry no project risk and are issued under NIB’s standard debt issuance programmes.

Henrik Normann, President and CEO of NIB, says: “Sure, we issue green bonds, but the projects they finance do not currently receive anything extra compared to if the project was financed by ordinary bonds. In the future, however, some investors might be willing to pay a premium for green bonds that could be passed on to projects that do have a positive impact on the environment.”

We also ask whether there is a link between profit optimisation and sustainable investments, or if these are still dependent on subsidies. And, can renewable energy be an economic substitute for conventional forms of energy in the long term? When it comes to “stranded assets”, are oil investments “out” and only green energy investments “in”?

“Should NIB finance better cement production or simply invest in wind turbines? If NGOs succeeds in pressuring pension funds to only invest in green projects, then that would clearly kill the economy. Shall we feel good or shall we actually make a difference?” asks Mr Normann.

We look forward to the discussion together with our panellists, who are:

Connie Hedegaard, Chair, KR Foundation, former European Commissioner for Climate Action

Gitte Seeberg, Secretary General, Danish branch of WWF, former member of Folketinget and the European Parliament

Peter Damgaard Jensen, CEO, PKA

Jens-Christian Stougaard, Director – SRI, PensionDanmark

Henrik Normann, President & CEO, Nordic Investment Bank

A presentation about green bonds will be given by Lars Eibeholm, Head of Treasury, NIB, and journalist Lene Johansen will act as moderator.

If you are in Allinge on Friday 12 June,

you are most welcome to take part in the debate,

1–2 pm at the Nordic tent, Cirkuspladsen C 23.