Green Bond framework
City of Gothenburg – Green Bonds Framework
An amount equal to the net proceeds of the issue of the Notes will be credited to a special budget account that will support the City of Gothenburg’s lending for Eligible Projects. So long as the Notes are outstanding and the special account has a positive balance, at the end of every fiscal quarter, funds will be deducted from the special account and added to the City of Gothenburg’s lending pool in an amount equal to all disbursements from that pool made during such quarter in respect of Eligible Projects.
“Eligible Projects” means a selected pool of projects funded, in whole or in part, by the City of Gothenburg that promote the transition to low carbon and climate resilient growth in line with the City’s Environmental Programme and Climate Strategy, and as determined by the City of Gothenburg. The Environmental Programme includes quantified environmental target, key measures to meet the targets and lists the responsible committees and bodies
Eligible Projects may include projects that target
(a) mitigation of climate change, including investments in low-carbon and clean technologies, such as energy efficiency and renewable energy programs and projects (“Mitigation Projects”)
(b) adaptation to climate change, including investments in climate-resilient growth (“Adaptation Projects”) or
(c) to a smaller extent (max 20%) projects which are related to a sustainable environment rather than directly climate related.
Eligible Projects include
- Renewable Energy (solar, wind, wave, bio, waste and hydro)
- Energy Efficiency
- Waste Management
- Water Management
- Smart grids
- Sustainable transportation (e.g. public transport, cycle and shipping infrastructure)
- Sustainable housing (e.g. infrastructure and construction)
- Environmental (max 20%)
- Biodiversity (e.g. development of new or restoration of nature conservation
- Water clearing facilities
- Air pollution
SELECTION OF ELIGIBLE PROJECTS
1) The City Council decides on the City’s Environmental Program and Climate Strategy. The City Council also decides on the companies’/administrations’ project investments.
2) The City Office (Urban Development and Treasury Departments) jointly select projects in accordance with the Environmental Program and/or Climate Strategy. The Urban Development Department possesses strategic knowledge on environmental issues.
3) Then, the Environment Administration, with its expertise in environmental issues, verifies the City Office´s selection.
4) Finally, the City Office (Treasury) presents the selected and verified projects for funding through the Green Bonds to the City Executive Board for final approval.
The Environment Administration monitors and reports on the implementation of the Environmental Programme and the Climate Strategy. Companies/departments regularly report on project status in relation to the Environmental Programme and Climate Strategy to the City Office (Urban Development/Treasury). The City Office will also monitor every project’s economic development as well as with suitable environmental indicators. The City Office (Treasury) reports back to investors through investor letters and annual reports.
To enable investors to follow the development and provide insight to prioritised areas the City of Gothenburg will provide an annual investor letter to investors including
1) a list of projects financed
2) a selection of project examples and
3) a summary of the City of Gothenburg’s Green Bond development.
The investor letter will be made publically available on the City of Gothenburg’s home page. In addition, the principle of free access to public records is applied.
Last updated: April 30, 2015