The Swedish city of Gothenburg has received a high 67% rating for its green bond scheme.
It’s the first ever municipal green bond to be ranked under S&P Global Ratings’ Green Evaluation framework.
This mark means the SEK1 billion (£90m) of green bonds, issued in June 2016, falls into the E2 category on the scale of E1 (highest) to E4 (lowest).
The overall score reflects an average rating of 56% in Transaction Transparency, 94% in Governance and 69% in Climate Mitigation.
The financing evaluated also achieved a strong overall Environmental Impact score because the proceeds will go to projects with high decarbonisation potential.
The green bonds proceeds are targeted at financing improvements in renewable energy, energy efficiency, public transportation, waste management, water treatment and sustainable housing.
One of the projects financed through the green bond so far includes a residential housing development targeting annual energy savings (MWh) of 33% and meeting environmental requirements on construction processes, materials and energy usage.
Another building development aims at keeping energy use less than 45 kWh/m² per year for water heating and other services, which is 60% lower than the requirements set by the Swedish National Board of Housing, Building and Planning.
It has also funded a light rail project, which focuses on increased capacity and energy efficiency in the City of Gothenburg’s public transportation. One effect of the new trams is almost 30% less energy used per passenger.