Green bonds – Finance a greener future

Gothenburg is a pioneer, as the first city in the world to finance green investments by issuing green bonds. It has become a vital tool to reach the city’s environmental and climate goals.

The initiative has received an award from the UN and contributed to the appointment of Gothenburg as the Swedish Climate Capital in 2015. These bonds are much like other bonds issued in the financial market, except for one significant difference. The funds generated are allocated exclusively to environmental projects that reduce harmful impact on climate and environment, enabling cities to reach climate goals. Two major successes The first Green Bonds issued in September 2013 generated almost USD 70 million for the City of Gothenburg. A second issue of Green Bonds followed in June 2014, generating more than three times as much. Enabling significant investments Thanks to Green Bonds, Gothenburg has invested in a new water treatment plant that includes the largest ’ultra filter’ in Scandinavia. Other major projects include GoBiGas – a large-scale biogas production plant for biogas vehicles – and investments in electric vehicles for use in government-owned companies and service organisations.