All agreed loans

Denmark. The Bank of Greenland

Date of loan: 22 Feb 2011
Country: Denmark
Customer: The Bank of Greenland
Amount in DKK: DKK 25 million
Amount in EUR: EUR 3.35 million
Maturity: 10 years
NACE sector / loan type: Financial intermediation, except insurance and pension
Business area: Financial institutions and SMEs

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for financing the Bank of Greenland's new environmental loan facility for investments in energy efficiency.

Around 40% of all energy consumption in Greenland derives from heating buildings. Qualifying projects will include investments in improved insulation of private homes and their heating systems, for example, replacement of boilers and connection to district heating systems. Installation of new windows, heat pumps and solar panels, and improvements of air conditioning systems are other examples of eligible projects.

The Bank of Greenland was established in 1967 by a group of Danish banks, and is the main bank in Greenland.

Fulfilment of NIB's mandate

The proposed loan will reduce diffuse carbon dioxide emissions. The emissions are substantial but due to the large number of households they are difficult to address. The total reduction of carbon dioxide emissions may not be high in absolute terms but it is an important contribution to carbon dioxide emission reduction. Although the proposed amount is small by NIB's normal standards, the loan fits well under NIB's environmental mandate and declared interest in the Arctic region.  

Sustainability summary

The loan facility is aimed at private households in Greenland. It focuses on renovation projects for existing buildings that either reduce emissions to air and also improve the building's energy efficiency, or replace fossil fuel based energy with renewable energy.

Press release

NIB finansierer Grønlandsbankens miljølån