Sweden's sovereign green bond framework

The framework for Swedish sovereign green bonds was developed in accordance with the guidelines in the Green Bond Principles: (1) use of proceeds and eligible green expenditures; (2) process for project evaluation and selection; (3) management of proceeds; (4) reporting; and (5) external reviews. 

(1) Examples of eligible expenditures are those aimed at mitigating climate change, strengthening biodiversity, promoting renewable energy projects or reducing carbon emissions in the transport sector. Not included are expenditures related to nuclear energy, fossil energy, new investments in large-scale hydro power or exclusively administrative appropriations. 

(2) The evaluation and selection process comprises three steps. First, the conditions for the use of the expenditure must fulfil certain criteria. The use must significantly contribute to at least one of the environmental quality objectives; and it must not significantly counteract another environmental quality objective; lastly, it must be highly likely that the use will contribute to long-term net positive environmental results and impacts. Second, the recommendation of eligible green expenditures is being prepared at the Government Offices. Third, the portfolio with eligible green expenditures is established through a government decision.

(3)  The Swedish National Debt Office is responsible for issuing Swedish sovereign green bonds. The proceeds are monitored and documented by the National Debt Office according to special procedures and administered within the regular liquidity and debt management .

(4) The Swedish National Debt Office must publish investor reports. 

(5) The Center for International Climate and Environmental Research, appointed by the Government Offices, has evaluated this framework and issued a second party opinion.