Almedalen Week 2016: Risks and opportunities of green financing

Debating risks and opportunities of green financing at Almedalen Week 2016. Photo: Jukka Ahonen

At this year’s Swedish debate festival Almedalen Week on the Baltic Sea island of Gotland, Sweden’s Savings Banks Association and NIB arranged a panel discussion on the risks and opportunities of green financing.

The panel included Maria Wetterstrand, a renowned Swedish Green Party politician and Member of Parliament in 2001–2011; Carina Lundberg Markow, Head of Corporate Governance at Folksam Mutual; Bo Lundgren, Chairman of the Savings Banks Association; and Thomas Wrangdahl, NIB’s Head of Lending.

Photos by Kerstin Olby, Sparbankernas Riksförbund

What are the political priorities in Sweden after COP21? What is the role of financing?

Maria Wetterstrand, Member of the Swedish Parliament for the Green Party in 2001–2011:

The role of being a forerunner is very important for Sweden. We need to decrease emissions and at the same time support economy and growth. Industry and transportation are the most important sectors. You cannot overestimate the role of the financial sector. Green financing is needed, which the financial sector has ignored for too long.

Green financing – what is the contribution of local savings banks?

Bo Lundgren, Chairman of Sweden’s Savings Banks Association

Local savings banks often finance municipality investments that contribute to energy saving and improved environmental management. In the lending process consideration is also given to environmental factors.

How can an international financial institution, such as NIB, promote green financing, make funds available for projects supporting sustainable development?

Thomas Wrangdahl, First Vice-President, Head of Lending at NIB

NIB has a very clear mandate from its owner countries to support environmental projects. Last year alone, NIB’s loan financing to such projects exceeded EUR 1 billion. In the past five years, a sheer amount of close to EUR 2 billion has been raised by issuing NIB Environmental Bonds for financing projects aimed at sustainable development in the Nordic Baltic region. Finally, we have invested recently in green bonds issued by other corporates and institutions in our member countries. This is an important complement to NIB’s lending activities.