Debt Office publishes report on Sweden's sovereign green bond

Press release 22 November 2021

The Swedish National Debt Office is today publishing a report on how the funds raised with the sovereign green bond have been allocated, and how they contribute to fulfilling Sweden’s environmental and climate objectives.

In June 2020, the Government adopted Sweden’s sovereign green bond framework and the appropriations in the central government budget to which the first issuance would be linked. In the framework, it is described how the eligible expenditures are defined, selected, presented and reported. The framework has been classed “dark green” – the highest score – by the reviewer, Cicero. The Debt Office carried out the issuance of SEK 20 billion in September 2020.

One of the most important aspects of issuing a green bond is reporting back on how the funds have been allocated, and on the environmental and climate benefits they are expected to generate. Investors must be given a clear picture of Sweden’s goals and the actions of the central government to reduce carbon emissions and promote sustainable development,” comments Hans Lindblad, Director General of the Debt Office. 

The investor report presents how the proceeds are distributed among the different eligible areas of expenditure in the central government budget for 2019 and 2020. The report also outlines the environmental impacts of the green expenditures wherever such information is available. The Debt Office’s compilation is based on the existing reporting of the Swedish Environmental Protection Agency and other responsible agencies.

The proceeds from the issuance in September 2020 have been allocated between the categories in the global Green Bond Principles according to the table below. The majority has been allocated to Clean transportation, including for example railway maintenance and climate bonus for purchasing plug-in electric vehicles. Within railway maintenance, greater traffic and improved punctuality can be noted. In the first six months of 2020, plug-in electric vehicles and natural gas vehicles made up 25 per cent of all newly registered cars. The transportation sector represents one third of Sweden’s total carbon emissions and thus has a crucial role to play in the transition.

Other categories include expenditures for:

  • Climate investments in industry, where fossil-free steel production projects have the potential to reduce Sweden’s total carbon emissions by 10 per cent annually.
  • The Climate Leap, with granted measures such as charging infrastructure, biogas facilities and replacing oil with biofuel in industry and real estate. Climate Leap measures are expected to cut emissions by over 500,000 tonnes of carbon dioxide equivalents annually.
  • Subsidies for the production of manure-based and other fossil-free biogas. Estimates show that the subsidy has generated a reduction in emissions of almost 400,000 tonnes of carbon dioxide equivalents.
(according to the Green Bond Principles)
(% of the issue amount)

Renewable energy and energy efficiency


Pollution prevention and control


Environmentally sustainable management of living natural resources and land use


Terrestrial and aquatic biodiversity conservation


Clean transportation


Sustainable water and wastewater management


By publishing the investor report, the Debt Office has completed the initial Government assignment to issue a green bond. The Debt Office will now analyse possible future green bond issuances within the framework and the objective for overall central government borrowing. The Government has announced that it intends to make a decision early in 2022 on the green expenditures that will be considered eligible in the central government budget.

Read the report in full here

The General Director comments Sweden’s first sovereign green bond (in Swedish)

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