Green bonds
Reykjavík City has established a Green Bond Framework for issuing green bonds and is the first to issue these bonds on the Icelandic market before Icelandic companies.
The Green Bond Framework
Reykjavík City updated its Green Bond Framework in April 2023
The Green Bond Framework defines important issues regarding the City's green bond issue, such as:
- The investments that can be financed by the City of Reykjavík with green bonds
- The administrative arrangements that will ensure that only projects that meet the requirements of the Green Bond Framework will be financed with green bonds
- How to ensure that the funds are earmarked for selected green projects and kept separate from other funds
- How to report on the implementation
- How to obtain the approval of external auditors
- How to obtain professional confirmation of the quality of the Green Bond Framework.
Professional verification
In April 2023, Reykjavík City received professional verification of its updated Green Bond Framework from CICERO (Center for International Climate Research). Most European green bond issuers seek assessment from this center, which is a leader in international climate research and the fight against climate change. According to CICERO's assessment, Reykjavík City's Green Bond Framework received a Medium Green rating, with all subcategories and projects earning either Medium Green or Dark Green ratings. Since issuing its previous opinion, CICERO has revised its assessment methodology for green buildings. Despite ambitious plans, a Medium Green rating is now considered to better reflect their environmental impact.
Projects
Possible projects covered by the Green Bond Framework include the development of the City Line, the construction of bicycle and pedestrian paths, LED street lighting, electric car charging stations, and other projects to save energy and reduce greenhouse gas emissions.
Rating
Special consideration is given to the City's administrative arrangements, which receive the highest rating of Excellent.
Key documents
- City of Reykjavik - Green Financing Framework - May 2023
- City of Reykjavík - Green Bond Framework
- RVKG 48 1 Terms of Bond
- RVKNG 40 Terms of Bond
- Green Bond Impact Report - Independent Auditor's Assurance Report 2024
- Green Bond Impact Report - Independent Auditor's Assurance Report 2023
- Green Bond Impact Report - Independent Auditor's Assurance Report 2022
- Green Bond Impact Report - Independent Auditor's Assurance Report 2021
- Green Bond Impact Report - Independent Auditor’s Assurance Report 2020
- Green Bond Impact Report - Independent Auditor’s Assurance Report 2019
- Green Bond Impact Report - Independent Auditor’s Assurance Report 2018
- City of Reykjavík - Financial Statement 2019
- City of Reykjavík - Financial Statement 2018
- CICERO's Second Opinion on the City of Reykjavík Green Bond Framework April 2023
- CICERO's Second Opinion on the City of Reykjavík Green Bond Framework
- Case Study: City of Reykjavík Green Bond Issue from Fossar
- Case Study: "First green bond issuer" from Circular