SAMFUNNSANSVARSRAPPORT 2016 / SIDE 1
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 1
Kommunalbanken IMPACT REPORT 2016 REPORT IMPACT ENVIRONMENTAL ENVIRONMENTAL v
Water and Wastewater Management IN SHORT GREEN PORTFOLIO
Low-carbon transportation 54.6 % GREEN BONDS GREEN LOANS New green buildings 27.9% USD 1.00 bn USD 1.13 bn Water and wastewater FUNDING AQUIRED OUTSTANDING management 9.6 % THROUGH GREEN BONDS IN PROJECTS1 Waste management 4.9 %
Energy efficiency 1.2 %
Renewable energy 1.1 %
Sustainable land use 0.5 % IMPACT HIGHLIGHTS BASED ON KBN'S SHARE OF Climate change adaption 0.2 % PROJECT FUNDING
GHG emissions avoided + reduced 12 935.5 tonnes fo CO2e reduced2 23 374.1 annually tonnes of CO2e annually 18.5 GWh renewable energy produced annually 10 438,6 tonnes of CO2e avoided3 annually
57 140 tonnes added capacity of sustainable waste management 27.9 GWh energy reduced Efficiency measures + avoided in buildings 118 009 implemented in annually4 m2 of 89 046
sea floor 522 784 m2 of new green m2 of existing buildings restored buildings erected
Photo front page and page 5: Vemund Hagen 1. Exchange rate 1 USD= 8.6 NOK, 2. From projects within categories Energy Efficiency & Low-carbon Transportation 3. From projects within categories New Green buildings & Renewable energy 4. 18 893 473 kWh energy reduced from energy efficiency measures; 9 003 970 kWh energy avoided in New green buildings. SAMFUNNSANSVARSRAPPORT 2016 / SIDE 3
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 3 - - - - - It appears, however, that a changing climate is in is climate a changing that however, appears, It . 5 The weighted average maturity of our Green Loans average The weighted
page 6. page 5. Norway intends to fulfil this commitment through a collective delivery with the EU and its Member States. with the EU and its Member delivery collective a commitment through fulfil this to intends 5. Norway DEAR READER DEAR Lars Strøm Prestvik, Lars Strøm Officer, Chief Lending Norway KBN Kommunalbanken Norwegian local government decision makers alike. alike. makers decision local government Norwegian Projects funded by KBN green loans represent steps – small or great – towards the low-emis towards – great – small or steps represent loans green KBN funded by Projects within next the decades. to become committed Norwayhas society resource-efficient sion, the low-car with compatible is today of funded projects loans green our that is Our objective determined nationally Norway’s with is in line objective 2050. This for societybon envisioned 40 by emissions gas greenhouse reduce to us commiting Agreement, the Paris to contribution 2030 by 1990 levels to compared percent importance the we emphasise Recognizing this, today. made the efforts of regardless evitable otherwise or prepare biodiversity, protect resilience, climate improve to aiming projects of projects of these impact ahead. The the challenges of environment societies our and human nonetheless. value immense of is but quantify be to possible not may later, issuances three Today, issuers. green bond European the first of one was 2013, KBN In ever greater by marked market bond a green for working continue determined to are we and investors will the report international use hope be to of We integrity. and transparency ects, for KBN’s internal governance of green bonds and green loans and the presentation the presentation and loans green and bonds green of governance internal KBN’s ects, for are projects loan green eligible of categories Our eight loans. green our from the impact of governing and structures governance our about more read may 4. You page on preesented on documents projects of the benefits the environmental into insight provide to aim we the report With 64 from and benefits impact report compiles The bonds. green KBN’s funded through very from range projects 2016. The of the end to up loans green KBN’s funded by projects infrastructure projects. Norwegian ongoing the larger of local some small to and in impact to 500 USD) (546 4.7 million NOK from ranges project single one to disbursed amount The 9.71 billion was loans green outstanding of value Total USD). (613 million 5.27 billion NOK year-end. at USD) (1.13 billion NOK remaining maturity of our current Loan portfolio Green Average is 16.5 is 19.9 years. years. Our ambitions are reflected in our Green Bond Framework and the accompanying project project accompanying and the Framework Green our Bond in reflected are Our ambitions proj eligible for documents set a highstandard in 2016. The selection both criteria, updated KBN’s environmental impact report. report. impact environmental KBN’s We are proud to present to you the first edition of first the you to present to proud are We owned state company. Our vision is to be a long-term partner for local welfare. partner for be a long-term Our vision is to company. state owned thorities in Norway. KBN’s mandate is to provide the local government sector with stable and cost efficient long- and cost with stable sector the local government provide is to mandate KBN’s thorities in Norway. securities in the international issuing by is funded sector to the local government lending financing. KBN’s term KBN is assets, total by Measured of AAA/Aaa. rating credit possible maintaining the highest capital markets, municipalities. KBN is a wholly country’s to nearly all of the with loans financial institution largest third Norway’s KOMMUNALBANKEN NORWAY KOMMUNALBANKEN to the local au credit providing through services welfare important (KBN) finances Norway Kommunalbanken renewable energy energy renewable produced annually produced GWh Following KBN Green Bond Framework Framework Bond KBN Green Following be may Loans Green in June 2016, updated of projects: categories eight different to granted Investments in this category are intended to ensure sustainable, energy efficient and resource-saving resource-saving efficient and energy sustainable, ensure to intended are in this category Investments of ambitious reconstruction or of new include the construction management. Eligible projects waste minimise transport that systems collection biogas plants, waste management facilities; waste existing plants. fuels, and carbon capture run on renewable garbage trucks that requirements, Investments in this category are intended to improve local adaptation to climate change. This includes This change. climate to adaptation local improve to intended are category in this Investments and levels, avalanches, rising sea floods, landslides, manage urban runoff, to and installations facilities conditions. and climate changed weather other challenges due to The category includes new, climate-smart and energy efficient buildings. Eligible projects may satisfy may projects efficient buildings. Eligible and energy climate-smart includes new, category The or ‘Excellent’ the grading buildings or receive energy’ or ‘near-zero norms of ‘energy-plus’ industry verifiable a the building has Alternately, system. classification the BREEAM-NOR on ‘Outstanding’ In the assessment project. reference than in a built-to-code lower is 20 percent demand that energy consideration. into is also taken building materials of profile the environmental eligibility, of a project’s This category covers a range of projects that intend to ensure sustainable use of land. This may may use of land. This sustainable ensure to intend that of projects a range covers category This cleaning up of POPs and planting forests, of biodiversity, such as restoration include projects and public cycling walking, facilitating space, recreational land into other pollutants, developing solutions. transportation The purpose of projects in this category is to construct water and wastewater systems that are are that systems and wastewater water construct is to category in this purpose of projects The apply that and levels, precipitation and higher growth population accommodate to dimensioned Examples in wastewater. contained good use of the resources make to technologies innovative plants, treatment water networks, wastewater and water to upgrades significant are of projects in energy of biogas plants, and investment construction watercourses, to of discharges treatment networks. and wastewater water from recovery and heat such as fitting additional insulation, replacing windows, installing hot-water heating, heat pumps, heat heating, hot-water installing replacing windows, such as fitting additional insulation, efficiency. energy their improve to buildings Renovating systems. control operational central and oil and gas boilers. Replacing of fuels used. Examples with no fossil emissions, minimal or zero produce solutions that Transport charging parks, bicycle paths, cycle and pedestrian- systems, public transportation are projects run vehicles of non-fossil fuels, purchase renewable for fueling stations electric vehicles, points for fleet. municipal vehicle for Investments in this category are intended to reap the energy potential of the sun, the wind, the of the sun, potential the energy reap to intended are in this category Investments energy replace to and thereby carriers, energy renewable and other biomaterials the sea, ground, include gases. Projects greenhouse produce that sources fuels and other energy fossil from produced plants. heating district plants, fossil-fuel-free power wave wind farms, geothermal wells, solar farms, out phase and buildings existing of requirements energy the reduce category this within Projects measures energy-conservation include projects of Examples sources. energy fossil of use their PROJECT CATEGORIES PROJECT WASTE MANAGEMENT WASTE CLIMATE CHANGE ADAPTATION CLIMATE NEW GREEN BUILDINGS SUSTAINABLE LAND USE SUSTAINABLE WATER AND WASTEWATER MANAGEMENT AND WASTEWATER WATER LOW-CARBON TRANSPORTATION LOW-CARBON ENERGY EFFICIENCY ENERGY RENEWABLE ENERGY RENEWABLE
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 4
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 5
N/A 1 kWh = 0,380 kg CO2e kg = 0,380 1 kWh CO2e kg oil = 0,247 heating 1 kWh CO2e kg = 0,380 1 kWh CO2e kg car km = 0,193 1 fossils CO2e kg 1 electric car km = 0,076 N/A N/A N/A CONVERSION CONVERSION FACTOR - 1 kWh = 0,380 kg CO2e kg = 0,380 kWh 1 N/A Reduced Avoided Reduced N/A N/A N/A GREENHOUSE GAS EMIS GREENHOUSE GAS SIONS REDUCED/AVOIDED and are grateful for any comments any for grateful and are KBN’s impact calculations correspond to it’s share of financing share it’s to correspond impact calculations KBN’s as the baseline of our & regulations codes apply Norwegian We impact calculations. data ante on ex base our calculations We and 1&2 emissions scope covers Our reporting reductions emission separately emissions and avoided reduced report We and non-quantifiable impact both quantifiable consider We with international align our reporting We & initiatives Bond standards Green our reporting improve to strive continuously We
Avoided 1. 2. 3. 4. 5. 6. 7. 8. The reporting of environmental impact from projects financed by financed projects from impact of environmental reporting The principles: core the following to bonds adhere green KBN’s The principles are explained in greater detail in Appendix A. greater in explained principles are The and other emissions 2 e reduced (direct emissions) (direct e reduced 2 CORE PRINCIPLES OF PRINCIPLES CORE Increase in capacity Increase in capacity Increase included Area N/A kWh reduced, kWh CO avoided kWh CO Partly or avoided reduced QUANTIFIABLE, QUANTIFIABLE, DIRECT RESULT produced kWh KBN IMPACT REPORTING IMPACT KBN
PROJECT CATEGORY PROJECT SUSTAINABLE LAND USE SUSTAINABLE CHANGE ADAPTATION CLIMATE WATER AND WASTEWATER AND WASTEWATER WATER MANAGEMENT LOW-CARBON TRANSPORTATION LOW-CARBON MANAGEMENT WASTE ENERGY EFFICIENCY ENERGY NEW GREEN BUILDINGS ENERGY RENEWABLE on assumptions and methodical choices applied in this report, please refer to the section Calculation methods and core methods and core the section Calculation to please refer applied in this report, and methodical choices on assumptions in Appendix B. of categories assumptions This table summarises important features of the impact reported for each project category: which quantifiable impact(s) we quantifiable impact(s) which category: each project for of the impact reported table summarises important features This discussion thorough a more For apply. we factors and which conversion include this impact in aggregation, we how consider, MEASUREMENT APPROACHES MEASUREMENT - [email protected] TORUNN BRÅNÅ TORUNN Sustainability Adviser Sustainability Senior VP, Senior VP, [email protected] MARIUS RUUD at the time. The guidelines will be updated annually to annually The guidelines will be updated time. the at as advances as well changes in regulations accommodate and knowledge. technology in available DOCUMENTS GOVERNING issuance of KBN’s govern documents that The following green of the proceeds are available bonds and its allocation on our website: June 2016 updated - KBN Green Bond Framework, Supplementary guidelines for - KBN Green Bonds: and reporting, documentation updated project selection, 2016 May KBN GREEN COMMITTEE an advisory KBN has appointed a Green Committee, state group experts of environmental from academia, The mandate sector. and the local government institutions, KBN’s updating revising and Committee includes of the strategic and Selection Criteria; Green Bond Framework green funding and lending in KBN’s considerations general input and support providing and to program; The Committee to greenKBN in matters related finance. will start in the second quarter its work of 2017. The KBN Green Bonds: Supplementary guidelines for The KBN Green Bonds: and reporting documentation first were project selection, available issued in June 2016 on the basis of the knowledge http://www.kommunalbanken.no/media/231471/kbn-supplement-docu International Funding International http://www.kommunalbanken.no/media/231470/kbn-green-bond- 6. ment-for-project-selection-documentation-and-reporting.pdf 7. framework.pdf CONTACT POINTS CONTACT as updated in as updated 7 and an internal 6 [email protected] Chief Lending Officer Chief Lending LARS STRØM PRESTVIK LARS STRØM KBN GREEN GOVERNANCE GREEN KBN [email protected] THOMAS MØLLER THOMAS Head of Funding & IR scrutiny. documentation and reporting. Applications are assessed Applications and reporting. documentation in writing to facilitate transparency and retrospective controllers are sustainability professionals with relevant for decisions on applications All training and experience. green loans are made with reference to the KBN Green Supplementary guidelines for project selection, Bonds: initial recommendation of approve or reject. Our team or reject. of approve initial recommendation controllers then assesses the environmental of designated to uphold or overrule the recommendation application The environmental manager. made by the relationship category, which are designed to collect the appropriate category, are evaluated Applications for each project type. data who files an manager, relationship by the customer’s Under the KBN Green Bond Framework customers are required to apply for green loans June 2016, using a formal form application can be downloaded that formsThere are separate for each project from our website. governance structuregovernance the process of assessing to ensure whether projects are eligible is fair and transparent. KBN’s greenbonds are only as green as the projects to KBN’s have we this, Recognising the proceeds. allocate which we put substantial effort of detailed into producing a set eligibility criteria for each project category ALLOCATION OF GREEN FUNDS ALLOCATION
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 6
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 7 2030 compared to 1990 levels» to compared 2030 “Norway is committed to a target of an at least least an at of a target to is committed “Norway 40% reduction of greenhouse gas emissions by emissions gas greenhouse of 40% reduction Norway’s Nationally Determined Contribution to the Paris Agreement the Paris to Contribution Determined Nationally Norway’s Photo: NTB Scanpix Photo: e H 2 W NOK NOK k TONNES TONNES OF CO 3 421.5 8 976 687 687 8 976 3 046 189 343 3 046 189 2 708 622 604 2 708 Frogn helsebygg will be Norway’s first nursing home constructed out of mass timber out of mass constructed home nursing first Norway’s be will helsebygg Frogn and environmentally building being both healthy of a wooden and is a good example kommune. Frogn arkitekter/ Rønsen Jostein Photo: friendly. NEW GREEN BUILDINGS NEW GREEN
ENERGY AVOIDED ENERGY AVOIDED EMISSIONS GREENHOUSE GAS TOTAL DISBURSEMENTS TOTAL LOANS OUTSTANDING
BN SHARE BN K
Annual impact impact Annual LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 8
SAMFUNNSANSVARSRAPPORT 2016 / SIDE 8 Photo: NTB Scanpix Photo: SAMFUNNSANSVARSRAPPORT 2016 / SIDE 9
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 9 - Climate gas emissions from energy energy from gas emissions Climate and building mate consumption a to 50% relative by rials reduced the building satisfying reference minimum building requirements. carbon used low Construction building and recycled concrete materials. The office area of the building is area office The the ‘passive-house’ to constructed standard. RESULTS OTHER OTHER energy generated locally. locally. generated energy 420 pupils and also includes a culture 420 pupils and also includes a culture hall and library. with water roof’ covered ‘Green provide plants that collecting and a cooling in the winter insulation well as in the summer as effect and therefore absorbing rainwater the wastewater to discharge reducing system. for accommodation Residential people with disabilities. be to is known energy Delivered source using ground by reduced but boreholes, from heating measuring equipment is not yet quantify the amount of to in place Limited number of car parking number Limited cycle for good arrangements places, Low access. and public transport B) used in (class carbon concrete of the building. construction energy from gas emissions Climate and building materials consumption, 50% relative by reduced transport building satisfying a reference to requirements. the minimum building of timber in use Extensive of the building and its construction cladding. external building uses 2,500 m³ of timber. The by the GOOD’ as ‘VERY It is certified BREEAM-NOR classification. school building accommodates The 2015- 2017 PERIOD BUILDING BUILDING 2011- 2014 2014- 2016 2011- 2014 2015- 2017 2016- 2017 2013- 2014 2015- 2016 2011- 2014 Total: Total: 200 103 KBN share: 68 800 Total: Total: 989 174 KBN share: 131 169 Total: 84 640 KBN share: 43 640 Total: Total: 888 828 KBN share: 355 755 360 720 KBN share: 315 349 Total: 2 520 KBN share: 2 520 Total: Total: 2 431 390 KBN share: 2 431 390 Total: 125 660 KBN share: 125 660 Total: 000 1 224 KBN share: 521 1 041 Total: (KWH) ESTIMATED ENERGY ENERGY ESTIMATED ANNUALLY AVOIDED
Total: 31 800 000 Total: 26 000 000 Total: 000 000 235 Total: 45 000 000 Total: 800 000 47 Total: 77 600 000 Total: 000 540 700 (NOK) TOTAL COST Total: 000 000 277 Total: 226 000 000 97% / 97% 87% / 87% 52% / 52% 100% / 67% / 67% 85% / 46 200 000 26 000 000 77 600 000 (2016) 30 000 000 100% / 100% / 85% / 16 396 000 16 396 192 307 000 307 192 (2016) (2016) 277 000 000 277 459 505 000 459 205 442 000 (54 342 in 2016) KBN FINANCING (NOK) DESCRIPTION Co- location of the fire and ambulance and ambulance of the fire location Co- energy- a single to services emergency efficient building. Emergency services building - Rissa municipality building - Rissa services Emergency New school building constructed to the to school building constructed New standard. ‘passive-house’ for the data centre uses remote cooling cooling uses remote centre the data for in the adjacent seawater from extracted fjord. buildings. Water-borne heating system, system, heating buildings. Water-borne provided of heating level background the municipality’s from heat recycled by on is also located that centre IT data and cooling Air conditioning the site. City Hall site - Kristiansand municipality - Kristiansand City Hall site m2 of of 9,600 construction New of 5,600 m2 of and renovation space protected including historically space heating distributed through underfloor through distributed heating heating. Augestad nursery - Oppegård municipality nursery - Oppegård Augestad the to Nursery building constructed source Ground standard. ‘passive-house’ Sheltered housing constructed to to housing constructed Sheltered heat standard, the ‘passive-house’ heating. district by provided sections, accommodating 100 children. 100 children. sections, accommodating municipality - Oppgård residences Greverudåsen ‘passive-house’ standard. Heating and Heating standard. ‘passive-house’ boreholes, source ground from cooling heating water-borne through distributed Six system. ventilation and balance Ødegården nursery, Oppegård municipality Oppegård nursery, Ødegården the to Nursery building constructed Åsly school - Rissa municipality Åsly school - Rissa training, mentoring and rehabilitation and rehabilitation mentoring training, a the elderly and for centre a day centre, facility. catering Ullerud health centre - Frogn municipality - Frogn Ullerud health centre building in healthcare largest The in mass be constructed to Norway m² building will 12,000 The timber. 108 hospital beds, a accommodate boreholes and 300 m2 of high-efficiency m2 of high-efficiency and 300 boreholes in solar panels integrated photovoltaic construction. the roof definition) building to be constructed constructed to be definition) building 100% of in Norway. the public sector by local by provided requirement energy geothermal three from energy renewable photovoltaic solar panels. photovoltaic municipality Asker nursery, Kistefossdammen ‘plus-house’ (FutureBuilt first The innovative building techniques and building techniques innovative solutions. 80% of the facility’s technical by is provided consumption energy geothermal from energy local renewable solar panels and thermal boreholes, Swimming pool facility, Asker municipality Asker pool facility, Swimming energy-efficient most One of the with Norway, pools in swimming - - - - Water treatment plant for legionella plant for treatment Water tem hot water allows that bacteria 10° C. by be reduced to perature Constructed in part with recycled in part with recycled Constructed building materials. Construction of the building pri Construction building oritised climate-friendly trusses including roof materials, in timber. and supporting columns in Kristiansand location Central car. by access the need for reduces OTHER OTHER RESULTS The installation used in the build installation The climate-friendly ing is made from cellulose. Timber exterior cladding. cladding. exterior Timber Low carbon concrete in the foun carbon concrete Low and floors. A light sculpture dations whether children show changes to or is the nursery is energy-positive the electricity from taking power grid. 2011- 2013 2013- 2014 2013- 2015 BUILDING PERIOD 2014- 2015 2010- 2012 2010- 2011 2010- 2013 2014- 2015 2014- 2015 Total: Total: 84 630 KBN share: 59 241 Total: Total: 454 159 KBN share: 36 103 Total: Total: 582 887 KBN share: 215 255 Total: Total: 510 770 KBN share: 617 352 Total: Total: 331 067 KBN share: 40 064 Total: Total: 105 560 KBN share: 22 652 Total: Total: 123 578 KBN share: 70 872 Total: Total: 346 57 KBN share: 28 370 Total: Total: 1 500 000 KBN share: 125 1 349 ESTIMATED ENERGY ENERGY ESTIMATED ANNUALLY AVOIDED (KWH)
Total: 31 000 000 Total: 000 000 53 Total: 254 000 000 Total: 900 000 69 Total: 38 200 000 Total: 138 000 000 TOTAL COST (NOK) Total: 300 000 63 Total: 000 000 596 Total: 000 44 270 21% / 49% / 49% 37% / 37% 23% / 70% / 70% 90% / 69% / 69% 12% / 57% / 57% 93 700 000 700 93 12 000 000 21 700 000 21 700 15 000 000 18 898 000 18 898 536 870 000 870 536 43 700 000 43 700 16 700 000 16 700 KBN FINANCING (NOK) 25 389 000 25 389 DESCRIPTION
Bruket cultural centre - Malvik municipality centre cultural Bruket heating providing 62,568 kWh of energy of energy 62,568 kWh providing heating annually. A venue for concerts, events and events concerts, for A venue the to Constructed space. rehearsal source ground standard, ‘passive-house’ School constructed to the ‘passive- to School constructed 500 Capacity for house’ standard. pupils. Fagerholt school - Kristiansand municipality school - Kristiansand Fagerholt building with solar panels on part of the with heating source Deep water roof. pump. heat water-to-water Øvre Sletteheia nursery - Kristiansand municipality nursery - Kristiansand Sletteheia Øvre as low-energy Nursery constructed School constructed to the ‘passive- to School constructed 200 pupils. capacity for house’ standard, Torridal school - Kristiansand municipality school - Kristiansand Torridal of thermal solar panels on the roof. In of thermal solar panels on the roof. summer months, the panels provide requirements. energy all the building’s in six classes. 100 children Capacity for Møllestua nursery - Kristiansand municipality - Kristiansand nursery Møllestua nursery with local ‘Passive-house’ 300 m2 of from production energy solar panels and 26 m2 photovoltaic from waste water and ventilation. and ventilation. water waste from Low-energy facility housing a housing facility Low-energy centre, sports pool, fitness waterpark, Low- facilities. sports hall and related recycling with heat building energy stipulated in the building regulations. stipulated municipality - Kristiansand Aquarama and club room facilities for the local for facilities and club room building is constructed The sports club. and its standard, ‘passive-house’ the to than be less to is calculated load energy requirement energy 50% of the standard Hellemyr - Multi-use sports hall - Kristiansand municipality sports hall - Kristiansand - Multi-use Hellemyr range shooting with miniature Sports hall Hommelvik care home - Malvik municipality Hommelvik care ‘passive-house’ standard. Ground source source Ground standard. ‘passive-house’ of energy kWh 202,400 providing heating annually. Care home building constructed to the to home building constructed Care Administration building constructed to to building constructed Administration the new for standard the ‘passive-house’ and environmental sorting facility waste park. Administration building - Romerike avfallsforedling IKS avfallsforedling building - Romerike Administration LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 10
SAMFUNNSANSVARSRAPPORT 2016 / SIDE 10 SAMFUNNSANSVARSRAPPORT 2016 / SIDE 11
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 11 OTHER OTHER RESULTS Compact urban school centrally urban school centrally Compact reducing in Drammen, located demand. transport in mass Constructed timber. Part timber construction. Central Central timber construction. Part demand. transport reduces location is extremely low for the conditions in the conditions for low is extremely northern Norway. Energy consumption of 105 kWh/m2 of 105 kWh/m2 consumption Energy Makes use of a source of heating of heating use of a source Makes waste. otherwise go to would that BUILDING PERIOD 2009- 2010 2009- 2010 2015- 2016 2010- 2012 2013- 2014 2009- 2012 Total: Total: 990 61 KBN share: 51 702 Total: 211 700 KBN share: 140 431 ESTIMATED ENERGY ENERGY ESTIMATED ANNUALLY AVOIDED (KWH) 372 000 372 KBN share: 359 935 Total: Total: Total: Total: 445 326 KBN share: 433 986 Total: 60 400 KBN share: 34 191 Total: Total: 905 025 KBN share: 828 777
Total: 28 200 000 Total: 600 000 47 TOTAL COST (NOK) Total: 254 500 000 Total: 200 000 241 Total: 000 000 370 Total: 109 200 000 57% / 57% 97% / 97% 97% / 97% 66% / 83% / 248 019 167 019 248 176 15 963 160 000 000 39 700 000 700 39 KBN FINANCING (NOK) 358 000 000 358 100 000 000 (2016) 92% / 92% DESCRIPTION The new school replaces a number replaces school new The energy of old buildings and reduces significantly. consumption Kirkenes junior and infant school - Sør-Varanger municipality school - Sør-Varanger junior and infant Kirkenes Fjell nursery - Drammen municipality Fjell nursery - Drammen Marienlyst school - Drammen municipality school - Drammen Marienlyst Energy-efficient building. Energy-efficient Multi-use sports hall and year-round year-round Multi-use sports hall and heating 97% of pitch. artificial grass from heating district needs supplied by aluminium factory. Alcoa the nearby Alcoa environmental park - Farsund municipality - Farsund park environmental Alcoa Hokksund Junior School - Øvre Eiker municipality Eiker Hokksund Junior School - Øvre Sandfjæra nursery - Malvik municipality nursery Sandfjæra ground source (borehole) heat pump. pump. heat (borehole) source ground Nursery constructed to the ‘passive- to Nursery constructed 90 with capacity for house’ standard, low-temperature by Heated infants. with underfloor heating waterborne First school in Norway constructed constructed school in Norway First with standard, the ‘passive-house’ to 560 pupils. Heating capacity for heating a mini district from provided exchangers. via heat system with capacity for 405 pupils. 405 pupils. with capacity for Junior school constructed to to Junior school constructed standard the ‘passive-house’ Energy-efficient nursery building with nursery building with Energy-efficient 160 infants. capacity for e 2 NOK NOK KWH TONNES TONNES OF CO 7 179.5 18 893 473 473 18 893 120 322 848 128 705 000 128 705 ENERGY EFFICIENCY ENERGY
ENERGY SAVING ENERGY EMISSIONS REDUCTION IN GREENHOUSE GAS TOTAL DISBURSEMENTS TOTAL LOANS OUTSTANDING
BN SHARE BN K
Annual impact impact Annual LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 12
SAMFUNNSANSVARSRAPPORT 2016 / SIDE 12 SAMFUNNSANSVARSRAPPORT 2016 / SIDE 13
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 13 ) 2 Total: Total: 000 350 KBN share: 196 043 17 324 Total: Total: 17 324 KBN share: Total: Total: 23 731 KBN share: 21 574 Total: Total: N/A KBN share: N/A Total: Total: 14 172 KBN share: 6 298 Total: 34 700 KBN share: 21 632 Total: Total: 32 857 KBN share: 32 857 Total: Total: 50 000 KBN share: 35 674 HEATED SURFACE AREA SURFACE HEATED (M 1 553 817 1 553 Total: 16 000 000 KBN share: 973 8 961 Total: Total: 13 200 KBN share: 13 200 Total: 704 2 007 KBN share: 704 2 007 Total: 810 192 KBN share: 282 175 Total: 817 1 553 KBN share: Total: Total: 1 818 250 KBN share: 808 052 Total: 758 2 324 KBN share: 288 1 449 Total: Total: 5 500 000 KBN share: 157 3 924 ESTIMATED ANNUAL ANNUAL ESTIMATED SAVING ENERGY (kWh) 2016 2012- 2016 2012- 2007 - 2007 2016- 2017 2016- 2014-2016 2014-2014 2014-2015 2016- 2018 2016- BUILDING PERIOD
TOTAL COST (NOK) Total: 5 000 000 Total: 4 400 000 Total: 300 000 97 Total: 480 000 Total: 600 000 35 Total: 165 12 477 Total: 20 500 000 Total: 21 000 000 91% / 100% / 44% / 56% / 5 545 000 (2016) 54 500 000 12 780 000 12 780 (2016) 5 000 000 480 000 (2016) 100% / 62% / 100% / 71% / 4 000 000 25 400 000 (2016) 21 000 000 (8 000 000 in 2016) KBN FINANCING (NOK) - ction in energy ction in energy 45% redu DESCRIPTION five buildings through an energy an energy buildings through five (EPC). 39% contract performance consumption in energy reduction EPC contract - Rissa municipality - Rissa EPC contract in efficiency energy Improving consumption. municipal buildings through an energy an energy municipal buildings through (EPC). Project contract performance energy carrying out 57 involves 11 municipal across measures savings buildings. Reducing energy consumption in consumption energy Reducing reduction in energy consumption. in energy reduction out fossil fuel heating in municipal fuel heating out fossil oil reduced buildings. Use of heating alone This kWh). 98% (4,208,144 by 1,052 by emissions climate reduces 35% of CO2-equivalents. tonnes Improving energy efficiency - Kristiansand municipality - Kristiansand efficiency energy Improving by phasing efficiency energy Improved municipality’s buildings to a central a central to buildings municipality’s system. control operational Central operational control system - Oppegård municipality - Oppegård system control operational Central to link the project efficient Energy an energy performance contract (EPC). (EPC). contract performance an energy consumption in energy reduction 27% Jevnaker EPC-project - Jevnaker municipality - Jevnaker EPC-project Jevnaker through consumption energy Reducing LED bulbs. Street lighting - Bardu municipality lighting - Bardu Street 10% of bulbs used in street the municipality’s with be replaced lighting to plants to be phased out. 42% reduction be phased out. 42% reduction plants to consumption. in energy Reducing energy consumption through through consumption energy Reducing (EPC). contract performance an energy nine buildings and a water Involves oil burning heating plant. Two treatment EPC-project - Spydeberg municipality - Spydeberg EPC-project Energy efficiency - Rendalen municipality Rendalen - efficiency Energy water. Phasing out of fossil fuel energy fuel energy of fossil Phasing out water. in a number of buildings. 30% sources consumption. in energy reduction The project includes a number of inno project The solutions such as using surplus vative a skating in production ice from heat pool swimming heat to rink facility Asker ENØK (energy efficiency) measures - Asker municipality - Asker measures efficiency) ENØK (energy Asker 2e NOK NOK KWH TONNES TONNES OF CO 7 017.1 102 161 247 247 161 102 18 466 222 112 255 000 RENEWABLE ENERGY RENEWABLE
ENERGY PRODUCTION ENERGY TOTAL DISBURSEMENTS TOTAL LOANS OUTSTANDING AVOIDED GREENHOUSE GAS EMISSIONS GREENHOUSE GAS AVOIDED
BN SHARE BN K
Annual impact impact Annual LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 14
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 15 - - OTHER OTHER RESULTS facility’s 2,100 subscribers. 2,100 facility’s station transfer waste The solely on renewable will rely The energy. locally produced in will be converted station use only electric to due course handling waste powered machinery. Electric-powered waste waste Electric-powered be to vehicle collection collect to in 2017 purchased the from recycling for waste The new installation has a max installation new The duty of 2 MW, imum heating the capacity of the and extends in Nordfjordeid system seawater can also system 50 %. The by cooling. free produce Hamos has initiated collabora Hamos has initiated tion with SINTEF Technology investigate and Society to using thermal storage energy wells. will be fed Biogas production gas network. the regional into complete. is not yet project The Further NOK 284 million green approved the project loan for in 2017. 2016- 2016- 2017 2016 2016- 2016- 2018 2016- 2018 2015- 2015- 2016 BUILDING PERIOD Total: Total: 4 800 000 KBN share: 4 800 000 Total: Total: 000 000 89 KBN share: 304 13 529 Total: Total: 30 000 KBN share: 13 235 Total: 85 000 KBN share: 11 591 112 092 Total: Total: 000 193 KBN share: ESTIMATED ANNUAL ANNUAL ESTIMATED PRODUCTION ENERGY (kWh)
Total: 200 000 24 Total: 17 000 000 Total: 22 000 000 Total: 000 4 700 Total: 546 000 000 TOTAL COST (NOK) 44% / 15% / 100% / 14% / 58% / 7 500 000 (2016) 83 000 000 (2016) 000 4 700 3 000 000 (2016) 14 055 000 (2016) KBN FINANCING (NOK) DESCRIPTION Extension of seawater heating system system heating of seawater Extension in Nordfjordeid. heating") ("fjord-based water- the for water heats installation The a seawater through system based heating exchanger. heat Eid Fjordvarme settlement tanks (2 x 4,000 m³), gas upgrade m³), gas upgrade settlement tanks (2 x 4,000 building. 8 MW and administration facility the for heat steam produce to biofuel facility and residue biogas plant using dewatered timber. waste Biogas plant at Grødaland in Hå municipality. in Hå municipality. Grødaland Biogas plant at and dewatering pre-treatment Collection, thermal hydrolysis, sludge, for facility Biogas plant at Grødaland - IVAR IKS - IVAR Grødaland Biogas plant at 600 m2 of solar panels on the walls and 600 m2 of solar panels on the walls hall (recycling facility of a recycling roof facilities). and associated Frøya recycling facility - Hamos forvaltning IKS - Hamos forvaltning facility recycling Frøya 200 m2 solar panel installation on the 200 m2 solar panel installation station. transfer cladding of a waste external Orkdal waste transfer station - Hamos forvaltning IKS - Hamos forvaltning station transfer waste Orkdal electric power from 1,200 m2 of solar panels from electric power is power mini wind turbines. Surplus and four use. later for in batteries stored Sandbakken recycling facility - Hvaler municipality - Hvaler facility recycling Sandbakken its own generates that facility Recycling 2e NOK NOK TONNES TONNES OF CO 5 756 5 307 084 120 5 307 5 308 758 000 5 308 758 - - LOW-CARBON TRANSPORTATION LOW-CARBON TOTAL DISBURSEMENTS TOTAL OUTSTANDING LOANS OUTSTANDING
GREENHOUSE GAS EMISSIONS REDUCED OR AVOIDED EMISSIONS GREENHOUSE GAS
BN SHARE BN K Annual impact impact Annual
Bybanen, an electric light rail service is repre service an electric light rail Bybanen, friend environmentally senting an efficient and in Bergen. service ly public transport LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 16
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 17 - 3,044 people live within a 20 minute minute within a 20 people live 3,044 the lift. from journey cycle Annual reduction in local air pollu Annual reduction NOx kg 22,619 SOx, kg tion: 23,891 PM2.5. and 5,851 kg car fuel driven fossil 29,000 with electric replaced kilometres in a reduction resulting vehicles, of CO2- of 3,364 kg in emissions annually. equivalents Making arrangements for the for Making arrangements owners municipality and private part forms use electric vehicles to be to target of the municipality’s 2030. by climate-neutral OTHER OTHER RESULTS 2014 2015- 2016 2016- 2017 2008- 2017 2013- 2014 BUILDING PERIOD - 2 2 TOTAL IMPACT Total estimated estimated Total number of people: 3 044 KBN share: 1 060 Improved conditions conditions Improved and bikers for pedestrians estimated Total in green reduction house gas annually: CO tonnes 5 753 KBN share: CO tonnes 5 753 estimated Total number of car-km because of reduced the investment: 29 000 KBN share: 29 000 Total estimated estimated Total number of people: 30 KBN share: 14
TOTAL COST (NOK) Total: 1 050 000 Total: 7 300 000 Total: 5 270 000 000 Total: 000 8 700 Total: 64 500 000 48% / 98% / 35% / 35% 100% / 100% / 499 000 499 (2016) 8 509 000 22 450 000 (2016) 7 300 000 KBN FINANCING (NOK) 5 270 000 000 5 270 - - DESCRIPTION station. Objective is to reduce car car reduce is to Objective station. as use of the train use and increase and walking. as cycling well Mountain lift to train station - Holmestrand municipality - Holmestrand station train Mountain lift to residential plateau m lift from 70 train Holmestrand to down area replaced with electric vehicles. replaced 29 vehicles used by the used by 29 vehicles service care home municipality’s journeys in 2015. in 2015. journeys municipality - Oppegård service care the home for vehicles Electric-powered Electric light rail service, repre service, Electric light rail environ senting an efficient and mentally friendly public transport light rail Bergen in Bergen. service passenger 9,987,000 recorded Bergen Light Rail - Bergen bomselskap Light Rail - Bergen Bergen 530m of footpaths and cycle and cycle of footpaths 530m parking, improved cycle tracks, of electric purchase tracks, cycle bicycles. Footpath and cycle track - Oppegård municipality - Oppegård track and cycle Footpath comprises 14 charging points at points at 14 charging comprises charging fast hall and two the town the in other locations points at municipality. Improvements to infrastructure for for infrastructure to Improvements of electric cars and plug-in charging part of the project cars. This hybrid Electric vehicle charging points - Hvaler municipality points - Hvaler charging Electric vehicle NOK NOK ONNES T 57 140 57 473 512 856 473 508 328 290 WASTE MANAGEMENT WASTE
ADDED CAPACITY ADDED CAPACITY TOTAL DISBURSEMENTS TOTAL LOANS OUTSTANDING
BN SHARE BN K impact impact
ROAF upgraded their facility with state-of-the-art with state-of-the-art their facility upgraded ROAF sorting equipment serving 126,500 households. waste E Jensen /Tom ROAF Photo: LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 18
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 19 - OTHER OTHER RESULTS Sorting machinery can separately Sorting machinery can separately optical Laser types of plastic. sort five waste bagged food divert sorting to biogas production. to for the landfill in order to make use to make the landfill in order for by the landfill off of the gases given the to discharges and reduce waste atmosphere. and sells growing produces Sirkula waste garden medium made from environ replace can be used to that growing peat-based mentally hostile of growing tonnes medium. 2,000 in 2016. medium produced previously was waste organic Wet with residual together incinerated and made separated but is now waste, biogas production. for available Replaces the previous composting composting the previous Replaces in capacity for increase 67% facility. it making waste, organic treating of waste sources new treat to possible fish production from such as waste otherwise not be put to would that use. the will improve sorting facility The 100%. 7% to from of plastics recovery be will now waste plastic Separated the within granules into extruded waste plastic whereas facility Forus for Germany sent to previously was processing. with is fully financed project The but due to KBN, lending from green is a change in the legal entity that as part of a change in the borrower the loans in 2015, structure corporate project a new to converted were lent number and the amounts already the lending lists. from deleted were has been established A biogas facility 2011- 2017 2016- 2019 2012- 2014 2010- 2015 2010- 2015 2013- 2015 2015- 2018 2010- 2015 BUILDING BUILDING PERIOD N/A N/A N/A N/A Total: Total: 26 000 KBN share: 3 447 Total: Total: 20 175 KBN share: 2 842 INCREASE IN INCREASE CAPACITY (TONNES) Total: Total: 30 000 KBN share: 30 000 Total: Total: 20 000 KBN share: 18 851
Total: 000 7 275 Total: 000 553 72 TOTAL COST (NOK) Total: 000 19 393 Total: 18 800 000 Total: 620 000 000 Total: 109 500 000 Total: 220 000 000 Total: 234 000 000 96% / 58% / 13% / 14% / 94% / 78% / 78% 82% / 6 978 926 6 978 (2016) 82 200 000 31 000 000 100% 56 597 769 56 597 (2016) 17 720 671 17 720 (2016) 15 830 924 (2016) 64 000 000 234 000 000 KBN FINANCING (NOK) DESCRIPTION households. This is the first facility in the facility is the first households. This sorting of use fully automatic to world waste. residual from plastic New waste sorting facility - Romerike avfallsforedling (ROAF) avfallsforedling - Romerike sorting facility waste New with state-of-the-art facility large New sorting equipment serving 126,500 waste consumption for the facilities as a whole as the facilities for consumption kWh. 30,000 by reduced Three new recycling facilities, new new facilities, recycling new Three of building and renovation administration Solar panels on the sorting facility. waste building, making of the administration roof Annual energy neutral. it virtually energy New recycling facilities - Søre Sunnmøre Reinhaldverk Sunnmøre - Søre facilities recycling New considerable risk of spread of non-native of non-native risk of spread considerable to will be extended facility plant types. The and facility recycling include a high-tech outlet. resale Gålåsholmen - SIRKULA IKS Gålåsholmen - SIRKULA waste If garden waste. garden for Facility is there is disposed of in the countryside serving 42,000 subscribers. serving 42,000 Recycling facilities - SIRKULA IKS - SIRKULA facilities Recycling facilities recycling of five Upgrading the facility more reliable with greater with greater reliable more the facility sorting capability so capacity and better going waste of residual the proportion that reduced. landfill is to Upgrading of the Heggvin waste of the Heggvin waste Upgrading facility including new management facility: treatment environmentally-friendly for and ash, EPS plastics of sand sludge, will make upgrading The waste. hazardous Heggvin waste management facility - SIRKULA IKS - SIRKULA facility management Heggvin waste Equipment for waste collection from from collection waste for Equipment in Hedmark county. customers 42,000 Waste collection - SIRKULA IKS - SIRKULA collection Waste a very high recycling rate of 75%. of 75%. rate high recycling a very Forus waste sorting facility - IVAR IKS - IVAR sorting facility waste Forus 20 sorting sorting facility. waste large New ensure to detection machines with infrared Facility that prepares organic waste for for waste organic prepares that Facility biogas production. Pre-treatment facility for organic waste - IVAR IKS - IVAR waste organic for facility Pre-treatment p.e NOK NOK 219 051 931 216 552 552 216 931 1 025 195 000 195 1 025 WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER
ADDED CAPACITY TOTAL DISBURSEMENTS TOTAL LOANS OUTSTANDING
BN SHARE BN K impact impact
Due to population growth, growth, population Due to their facility has upgraded IKS IVAR solutions. with climate-friendly Brånå KBN/Torunn Photo: LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 20
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 21 - - - - - OTHER OTHER RESULTS Reduction in pumping station energy energy pumping station in Reduction kWh 75,000 consumption: Steps have been taken to ensure secu ensure to been taken have Steps including the region, rity of supply for for system a zone supply, dual water backup and emergency pressure water all pumping supply for electric power stations. with will be constructed facility The particular emphasis on efficient for including preparation use, energy has set IKS using solar panels. HIAS be climate to the facility for a target 2020. by neutral The treatment plant is designed to to plant is designed treatment The the from biogas production facilitate sludge waste. residual treatment comprehensive More treatment including ozone processes, to necessary are that and bio filtration quality and water satisfactory ensure anticipated to in response hygiene conditions climatic and wetter warmer in the future. Treatment efficiency in terms of BOD in efficiency Treatment demand) improved oxygen (biological reduced 90%, discharges to 45% from Treatment per annum. tonnes 1,000 by (chemical COD terms of in efficiency 35% from demand) improved oxygen 2,500 by reduced discharges 85%, to per annum. tonnes m of waste of 3,114 Refurbishment of water pipe and 3,258 m water supply pipe. the vulnerable pipeline provides This with a dual island communities and this is particularly supply, water of ensuring a important in terms supply. backup the previous replaces project This plant with biologi chemical treatment the treat improves This cal treatment. material organic ment of dissolved as ensuring higher production as well the biogas facility. from The new pipeline will avoid the risk of pipeline will avoid new The pollution and leaks and the consequent a vul of Mjøsa, which has eutrophication drinking and provides ecosystem nerable is project The people. 80,000 for water with NOK in 2018, completion due for be to investment million of remaining 55.7 and 2018. carried out in 2017 also includes an upgrading project The as sludge waste, from biogas for facility to pipework and renovated as new well to in order facility treatment the waste the risk of leaks and consequent avoid Mjøsa. lake pollution of the inshore 2015- 2021 2011- 2012 2012- 2018 2011- 2012 2015- 2018 2011- 2016 2014- 2017 2015- 2016 2013- 2015 2012- 2014 2012- 2016 2010- 2015 BUILDING BUILDING PERIOD 8 Total: Total: 36 000 KBN share: 8 082 Total: Total: 80 000 KBN share: 314 63 Total: 100 000 KBN share: 8 500 Total: 5 900 KBN share: 5 900 Total: 7 000 KBN share: 4 694 Total: Total: 100 000 KBN share: 000 92 Total: 4 500 KBN share: 4 500 Total: 160 000 KBN share: 32 061 INCREASE IN INCREASE CAPACITY (P.E)
Total: 14 500 000 Total: 000 295 92 Total: 16 000 000 Total: 058 000 157 Total: 420 000 193 Total: 125 000 000 Total: 122 000 000 Total: 000 000 35 Total: 000 000 170 TOTAL COST (NOK) Total: 000 000 520 Total: 000 000 350 Total: 1 100 000 000 10 9 92% / 92% 100% / 2% / 100% / 79% / 79% 100% / 9% / 100% / / 67% 20% / / 79% 100% / 115 000 000 (5 000 000 in 2016) 16 000 000 (2016) 000 295 92 8 580 000 124 000 000 124 (44 000 000 in 2016) 420 000 193 in 2016) 573 069 (27 14 500 000 114 000 000 (2016) 104 200 000 000 700 27 122 000 000 93 500 000 93 KBN FINANCING (NOK) - DESCRIPTION from the inshore lake Mjøsa is being adversely affected affected Mjøsa is being adversely lake the inshore from in the process treatment water The change. climate by with direct will include chemical treatment facility new and chlorination. UV treatment filtering, New water treatment facility - HIAS IKS - HIAS facility treatment water New the Hamar is needed for facility treatment water A new and growth of population levels high due to area extraction for available because the quality of water Upgrading of water extraction, water supply and water supply and water water extraction, of water Upgrading quality and adequate good water ensure to treatment of population with high levels capacity in a region patterns. changing precipitation and growth phosphorus and other fertiliser materials that cannot be that materials phosphorus and other fertiliser system. chemical treatment the current by separated IKS - HIAS supply and treatment Water Upgrading of the main HIAS wastewater treatment treatment wastewater HIAS of the main Upgrading and growth population accommodate to in order facility Introduction activity in the area. industrial increased separates that process of a fully biological treatment increased precipitation in the region. The pipeline is The in the region. precipitation increased extensive m, and is the most 70 a depth of 30 to laid at in Norway. pipeline project underwater IKS - HIAS transport and waste facility treatment water Waste 25 km underwater pipeline that will double the pipeline that 25 km underwater Norway’s through of wastewater transfer capacity for became necessary (Mjøsa). This lake inshore largest and growth of population the high level due to facility in response to increasing treatment volumes volumes treatment increasing to in response facility and industrial in population increases caused by activity. Upgrading of the Nærbø wastewater treatment facility - IVAR IKS - IVAR facility treatment wastewater of the Nærbø Upgrading treatment of the Nærbø wastewater Upgrading Water treatment - IVAR IKS - IVAR treatment Water which is the main facility, of the Langevatn Upgrading The region. the Stavanger for facility treatment water population anticipated is dimensioned for facility 2050. by residents of 100,000 growth flotation stage in order to handle a high level of to handle a high level stage in order flotation users. industrial from wastewater normal loan from KBN. normal loan from IKS plant - IVAR treatment Expansion of the Grødaland large plant with a new Expansion of the treatment Expansion of the Nord-Jæren central treatment facility facility treatment central Expansion of the Nord-Jæren Includes a growth. population strong due to required that factory as a fertiliser biogas plant, as well separate biological residue. the pellets from fertiliser produces by a is financed cost of the overall remainder The undersea pipeline. undersea pipeline. IKS - IVAR Nord-Jæren facility, treatment wastewater Central Water supply- IVAR IKS IVAR supply- Water in communities the island supply to dual water New a 20 km municipalities from and Finnøy the Rennesøy Refurbishment of wastewater system and improve system of wastewater Refurbishment of water Upgrading supply network. water ments to of UV treatment. including installation supply facility, energy used to pump water relative to the previous the previous to relative pump water to used energy connection. municipality - Oppegård 2013-2015 management improvements and wastewater Water Water pipeline Nordli to Finnkroken - Bardu municipality - Bardu Finnkroken to pipeline Nordli Water the water secure to plants water connect Pipe line to use Makes and Målselv municipalities. Bardu supply for the reduce to drastically in height of the difference Treatment plant for waste water from five five from water waste plant for Treatment municipalities. Tønsberg wastewater treatment plant treatment wastewater Tønsberg 8. p.e = Population equivalent 9. Green Loan funding is approved for the entire project. Remaining funding is to be obrained in 2018-2019 10. Remaining funding obtained through ordinary KBN Loans. ordinary through Remaining funding obtained 10. in 2018-2019 be obrained Remaining funding is to project. the entire for funding is approved Loan Green 9. equivalent = Population 8. p.e Underwater pipeline Furnesfjorden - HIAS IKS - HIAS pipeline Furnesfjorden Underwater NOK NOK OTHER OTHER RESULTS Risk of rock avalanche up to 3 up to avalanche Risk of rock million m³. 31 917 394 31 917 394 23 700 080 23 700 2011- 2017 BUILDING PERIOD
TOTAL COST (NOK) Total: 220 000 000 15% / 31 917 394 (NOK) KBN FINANCING CLIMATE CHANGE ADAPTATION CLIMATE TOTAL DISBURSEMENTS TOTAL OUTSTANDING LOANS OUTSTANDING DESCRIPTION
Monitoring and avalanche warning system system warning and avalanche Monitoring ‘Mannen’, a mountainside with high for risk. avalanche Avalanche risk monitoring - Rauma municipality risk monitoring Avalanche “Mannen” - a mountainside with high avalance risk is now risk is now “Mannen” - a mountainside with high avalance Ruud / NTB scanpix Vidar Photo: closely. monitored LIST OF PROJECTS OF LIST
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 22
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 23 NOK NOK OTHER OTHER RESULTS and other species in the ocean, and and other species in the ocean, the for local environment a better human population. Extracted 653 kg PAHs and 3.8 kg and 3.8 kg PAHs kg 653 Extracted in persistant reduction PCBs. 75% will create pollutants. Project organic fish for living conditions unpolluted 2009- 2012 48 686 470 48 686 470 BUILDING PERIOD 45 730 960 45 730 2 2 AREA IMPROVED 118 009 m Total: Total: 310 550 m KBN share:
TOTAL COST (NOK) Total: 129 104 000 Tromsø Havn, where a major project to rehabiliate polluted sea floor has resulted in a resulted sea floor has polluted rehabiliate to a major project where Havn, Tromsø / Samfoto Bjørn Jørgensen pollutants. Photo: organic persistant in 75% reduction 38% / SUSTAINABLE LAND USE SUSTAINABLE 48 686 470 (NOK) KBN FINANCING TOTAL DISBURSEMENTS TOTAL OUTSTANDING LOANS OUTSTANDING DESCRIPTION sea floor in Tromsøysund. 95,000 m3 of 95,000 Tromsøysund. sea floor in seafloor sediment has been contaminated cylinders steel up and sealed into dredged of an will be used in the construction that facility. quay expanded ’Clean Tromsøysund’ project - Tromsø Havn KF Havn - Tromsø project ’Clean Tromsøysund’ polluted rehabilitate to Major project
IVAR IKS IVAR -- Biogas plant in Grødaland
Photo: IVAR IKS IVAR Photo: CASES
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 24
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 25 * % . NOK NOK 15,2 e if the same amount 2 13.53 GWh 13.53 83 200 000 83 200 000 546 000 000 546 000 IVAR is involved in the RECOVER research project along research project in the RECOVER involved is IVAR in leading research and consulting organisations with several the resources found how This project is investigating Norway. can best be and nutrients, heat such as energy, in wastewater, in Nordic conditions. recovered grantedThe project was a complete. The biogas plant is not yet green loan of NOK 284 million in 2017. equivalent to 5,195 tonnes of CO tonnes 5,195 to equivalent as electricity. produced was of energy KBN’s share of the climate impact is calculated on the basis of the amount of green lending provided at the end of 2016. It 2016. the end of at lending provided green the amount of basis of on the impact is calculated the climate of share KBN’s is disbursed 2017 for a loan agreed once tonnes 23,017 of gas saving and an annual greenhouse GWh 59.63 to will increase PROPORTION OF TOTAL FINANCING REPRESENTED BY GREEN LOANS REPRESENTED BY FINANCING OF TOTAL PROPORTION PRODUCTION ENERGY TOTAL COST DISBURSED IN 2016 * IVAR INTERMUNICIPAL COMPANY: GRØDALAND BIOGAS PLANT BIOGAS GRØDALAND COMPANY: INTERMUNICIPAL IVAR pellets that are clean and simple to transport long distances pellets that over Vietnam! – the factory as has customers as far even away The biogas plant has been designed to ensure maximal recovery which are phosphorusof the nutrients and potassium, nitrogen, fertilizer its own has built factory that important IVAR fertilizers. compresses the dry residue from biogas production into fertilizer the district heating output, is included in the calculation of the is included in the calculation the district output, heating annual energy production. for the surrounding industrial estate. The biomass plant’s output plant’s biomass The the surroundingfor industrialestate. of around 39 and will produce heat will be around 8 megawatts, hours of which 15 gigawatt will be used hoursgigawatt a year, which is to say energy, Only the delivered for the biogas plant. a separate biomass plant in which dewatered residue from biogas residue from biomass plant in which dewatered a separate timber can be burntproduction and shredded waste to produce for both the biogas plant and for a districtheat system heating The biogas plant, which will be completed in 2017, will at full will at which will be completed in 2017, The biogas plant, hours biogas from gigawatt 65 approximately produce production and instead Biogas production requires steam heating, annually. is building IVAR energy to produce this heat, of using delivered water back to the fjord. It sells its energy in the form of biogas back to the fjord. water and delivers its nutrientand district fertilizer output as heating, fertilizerpellets produced in its own factory. IVAR IKS, a water, wastewater and waste disposal company in company disposal waste and wastewater water, a IKS, IVAR of three things: itself as a provider sees region, the Stavanger It sends clean energy and nutrients for the soil. clean water, ASKER ASKER MUNICIPALITY -- Buildings that pave the way pave -- Buildings that
Photo: KBN / Torunn Brånå KBN / Torunn Photo: CASES
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 26
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 27 % % NOK NOK NOK NOK 697 48.5 100 100 tonnes of CO2 equivalents of CO2 tonnes tonnes of CO2 equivalents of CO2 tonnes 77 600 000 77 600 000 77 600 000 277 000 000 277 000 000 277 For more information about how we calculate the climate impact of our projects, see page 36. our projects, of impact the climate calculate we about how information more For Annual greenhouse gas saving of gas saving Annual greenhouse used in its construction, which will help reduce the emissions the reduce help will which construction, in its used use for ready be will pool The materials. building the by caused in April 2017. as the building, and will make the most of the high-quality as the building, bicycle parking facilities and the fact the nursery that is only a short when delivering and collecting distance to the train station their children. POOL COMPLEX SWIMMING ENERGY-EFFICIENT Asker Municipality started pool planning a new swimming When there that discovered team planning the Holmen, in complex friendly for solutions examples of environmentally few good were which generally use a large amount pool complexes, swimming standard passive-house a separate not even There was of energy. team The municipality’s pools. housing swimming for buildings featuringdesign a to led This innovative. be to had therefore 15 geothermalthermaland around 1,000m2 of solar boreholes the In addition, and the water. collectors the building to heat engineers solar panels chose to put 650m2 of photovoltaic pool’s will which and on its south-facingbuilding roof of the on the side, electricity consumption. the building’s of around 12% provide complex is swimming pool most energy-efficient The country’s facilityhigh-quality a measuringpool main 8-lane an with 25m and a café, a social area a sports hall, pool, an exercise by 21m, concrete is being area on the roof. Low-carbon a play as as well Annual greenhouse gas saving of of gas saving Annual greenhouse CLIMATE IMPACT CLIMATE PROPORTION OF TOTAL FINANCING REPRESENTED BY GREEN LOANS GREEN BY FINANCING REPRESENTED TOTAL OF PROPORTION GREEN LOAN APPROVED IN 2016 APPROVED GREEN LOAN DISBURSED AMOUNT OF GREEN LENDING TOTAL CLIMATE IMPACT CLIMATE PROPORTION OF TOTAL FINANCING REPRESENTED BY GREEN LOANS REPRESENTED BY FINANCING OF TOTAL PROPORTION TOTAL AMOUNT OF GREEN LENDING DISBURSED AMOUNT OF TOTAL IN 2016 APPROVED GREEN LOAN HOLMEN SWIMMING POOL HOLMEN SWIMMING KISTEFOSSDAMMEN NURSURY KISTEFOSSDAMMEN from the building materials as well. When the nursery is complete materials as well. from the building parents will be as climate-smart the hope is that in March 2017, and geothermal boreholes will more than cover the building’s the building’s and geothermal boreholes will more than cover Timber the course of a year. modest energy requirements over friendly prioritised materials environmentally other and were when constructing so as to reduce the emissions the building it will produce more power over the course than it of a year over it will produce more power structureThe distinctive is energy-efficient and requires uses. half as much energy as the requirement in the approximately 300m2 of solar cells on the roof regulations. applicable building Kistefossdammen Nursery is likely to become the first public that which is to say in Norway, sector plus-house building a new nursery in Kistefossdammen, both of which were financed new nurserya were which of both Kistefossdammen, in are good examples of this. using green loans from KBN in 2016, POWER OWN ITS CREATES THAT NURSERY These targets commit Asker to thinking about the energy These targets commit impact of all the supply and environmental energy consumption, and in Holmen pool swimming new A invests. it which in projects 2020 it intends to have reduced its delivered energy, which is which energy, reduced its delivered it intends to have 2020 by 30% does not come from local sources, energy that to say in 2007. level to the relative Asker Municipality, which is adjacent to Oslo and has 60,000 which is adjacent to Oslo Asker Municipality, The municipality ambitions. has high environmental residents, by and 2030, by climate-neutral being of target itself a set has BERGEN LIGHT RAIL -- Low-carbon transportation in Bergen transportation -- Low-carbon
Photo: Paul S. Amundsen Paul Photo: CASES
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 28
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 29 Photo: Prillen (CC) Photo: % NOK 100 5 753 5 753 10 168 5044 15 817 NET GAIN PER YEAR 18 966 tonnes of CO2 equivalents of CO2 tonnes 610 096 610 302 637 012 949 NET GAIN OVER NET GAIN OVER 60 YEARS 937 937 1 137 1 137 5 270 000 000 5 270 becoming the preferred after factoring produced during in the emissions the construction phase. the light rail service a significant positive In addition, is having Bergen has on several effect on air quality locally in Bergen. occasions each winter in recent years been ranked as one of too factors: the most polluted cities in Europe due to two which are principally high emissions of NOx and PM2-10, leads that atmospheric and an inversion traffic, due to heavy Bergen which in valley the from dissipating not emissions to to a net annual gain equivalent show Calculations is situated. 22,619 kg of NOx and 5,851 kg of PM2.5. 23,891 kg of SOx, greater for Bergen as a city because of the The impact is even volumes in contribution to reducing traffic Bergen Light Rail’s conditions. the area affected by inversion driver for urban Bergen Light Rail has become a positive Constructionand of commercial in the city. development around the being concentrated is now residential buildings the Bergen Light Rail is which means that route, service’s Annual avoided GHG emissions of GHG emissions Annual avoided 1 357 192 1 357 106 351 149 1 239 1 433 461 EMISSIONS SAVINGS SAVINGS EMISSIONS DURING OPERATION EMISSIONS FROM EMISSIONS CONSTRUCTION 524 524 95 95 096 747 48 469 290 137 (kg) kg) as alternative means of transport produce less emissions. We have, in accordance with Asplan Viak’s recommendation, chosen to chosen to recommendation, with Asplan Viak’s in accordance have, We emissions. less produce transport means of as alternative gain the environmental this period, which means that equally over the 60 years during gains accumulated the environmental spread impact when modelling the climate that also note We here. higher than stated Light Rail is in reality the Bergen in 2016 by delivered Light although Bergen emissions, CO2 386 g of electricity produced of 1 kWh producing that assumed Light Rail, the Bergen we of upon is available the calculations on the basis for information the electricity it uses. More origin for of Rail guarantees purchases and the model. the report send you to will be happy we request; Calculations of the environmental gain delivered by the Bergen Light Rail are based on a simplified life-cycle analysis of emissions of emissions analysis Light Rail based on a simplified life-cycle the Bergen are by gain delivered the environmental of Calculations for Asplan Viak by carried out in 2016 and were scenario, an alternative to relative 60 years it for and operating constructing from used, with these becoming are powered primarily fossil-fuel are that transportation means of other scenario, KBN. In the alternative This perspective targets. emissions national Light of the Bergen Rail in line with Norway’s the life over electrified increasingly and will then decline of its life, start at the Light the Bergen Rail will be greatest benefit from the environmental means that therefore VOC VOC x (kg) x (kg)
SO NO PM 2,5 ( NM OTHER POLLUTANTS OTHER CLIMATE IMPACT CLIMATE PROPORTION OF TOTAL FINANCING REPRESENTED BY GREEN LOANS GREEN BY FINANCING REPRESENTED TOTAL OF PROPORTION TOTAL AMOUNT OF GREEN LENDING PROVIDED 2010-2016 GREEN LENDING PROVIDED AMOUNT OF TOTAL BERGEN LIGHT RAIL BERGEN LIGHT net climate gain of 5,753 tonnes of CO2 equivalents per year per year gain of 5,753 tonnes of CO2 equivalents net climate overtaken by emissions savings once it entered operations. The once it entered operations. overtaken by emissions savings atmospheric electric emissions far generates system train lower the Bergen Light Rail delivers a as the table shows, than buses: simplified environmental assessment of the project from a life- simplified environmental comparing it with a scenariocycle in which it had perspective, although constructing that This assessment shows not been built. quickly these were emissions, the Bergen Light Rail generated attributed to the Bergen Light Rail. attributed to the Bergen Light Rail. carried have out a we Viak, Asplan With the assistance of public transport offer in Bergen. The service routes replaces bus public transport offer in Bergen. despite and is causing more people to choose public transport: of car traffic the volume growth Bergen region, in the population which can largely be to and from the city centre has decreased, by our green loans. the Bergen Light With 9,987,000 passenger journeys in 2015, friendly backbone of the Rail has become the environmentally construction phases of the Bergen Light Rail project. The total construction phases of the Bergen Light Rail project. the periodamount lent of NOK 5.270 billion in up to 2016 single project financed makes the Bergen Light Rail the largest Since 2010 KBN has provided greenSince 2010 KBN has provided loans to finance the three - - . - 12 . Fossil energy Fossil . 13 , buildings of this type buildings , 11 KBN’s Green Loans portfolio does not include projects such as KBN’s plants and wind farms. hydropower in Norway consumed 229 kWh per square metre of heated floor space in per square metre of heated consumed 229 kWh in Norway in than lower significantly is which available), not are figures (newer 2011 (with the exception a comparable climate European countries have that (304 kWh/m2/ including Sweden 196kWh/m2/year), of Denmark at the Estonia (443 kWh/m2/year), Finland (299 kWh/m2/year), year), and BelgiumNetherlands (326 kWh/m2/year) (554 kWh/m2/year) regulations, building to Norway’s this is related can assume that We The applicable which are strict in Norway. and apply to all new buildings on technical requirements for (the Regulations regulations building which contain stricter requirements from 2017) TEK10, works, building 115/kWh/m2/ buildings can consume a maximum of office that state buildings is used in Norwegian The energy mix that for example. year, with electricity (84%) is also far other countries, cleaner than in many and district (12%) the dominant energy carriers heating carriers in 2015, represented 2.5% of the energy consumed by buildings the proportionbut represented by such sources is falling sharply as we complete ban on the use approach 2020 and the Norwegian Parliament’s of fossil oil as an energy carrier in buildings. where solutions do not exceed the Norwegian even In other terms, beneficial moderate a marginlarge a by guidelines have therefore and they are models, calculation impact according to our environmental important projects from an international perspective because they the are at contribute of a market for solutions that to the creation forefront internationally. ACT GOVERNMENT OF THE LOCAL LIMITATIONS which impos Act, by the Local Government clients are regulated KBN’s fund county may a municipality or as to which investments es limitations of electricity Commercial activities such as the generation through debt. Because of this, not be funded through municipal loans. for sale may The following information for serviceThe following on buildings providers offers Norway according to Statistics examples of this: https://www.ssb.no/energi-og-industri/artikler-og-publikasjoner/energi https://www.enova.no/innsikt/rapporter/byggstatistikk-2015/sammen http://www.entranze.enerdata.eu/#/total-unit-consumption-per-m2-in- 11. bruk-i-bygninger-for-tjenesteytende-virksomhet-2011 12. non-residential-at-normal-climate.html 13. drag/1150/0/ from public investments in Norway public investments from MEASURING ENVIRONMENTAL IMPACT IMPACT ENVIRONMENTAL MEASURING of technology and innovation they employ. they of technology and innovation cannot choose solutions that do not meet these minimum requirements. do not meet these minimum requirements. cannot choose solutions that the Norwegian guidelines are like to emphasise that would we However, the projects in and that strict from an internationalrelatively perspective, our green portfolio are of a very below high quality in terms of the level CALCULATING A PROJECT’S IMPACT A PROJECT’S CALCULATING KBN uses the minimum requirements in Norwegian guidelines as impact of an investment the baseline for assessing the environmental municipalities and county authoritiesbecause Norwegian naturally required of the municipality or county authority by the relevant national required of the municipality or county authority national by the relevant guidelines. FOR A BASELINE GUIDELINES AS NORWEGIAN relative to a reference scenario the minimum in which the project satisfies relative The basic criterion or regionalrequirements in the national guidelines. the is that green interest rate at KBN’s to be financed for investments is than ambitious more significantly be must selected is that solution environmentally friendly solution. For example, if a municipality chooses example, For friendly environmentally solution. produces energy locally through the use of home that a retirement to build because the municipality this is that need to assume we cells, photovoltaic impact a project’s calculate basis we On this needs a retirement home. We choose to assume as the basis for our calculations what we think is think we what our calculations choose to assume as the basis for We a that scenariothe most probable alternative to each green investment: ambition to find an be made without any would comparable investment necessity use resources such as energy, water and building materials, materials, and building water necessity use resources such as energy, duringemissions Compared generate and constructionthe phase. of the many made, never was with a scenario in which the investment footprint. climate a net positive finance will still have we investments ABOUT THE TERM ‘IMPACT’ ABOUT THE TERM ‘IMPACT’ green infrastructurebuildings and finance loans transport, for KBN’s management in Norwegian municipalities and waste wastewater water, by assets that in physical These are investments and county authorities.
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 31 in a greener future. With Ødegården kindergarten, Oppegård Oppegård kindergarten, Ødegården With future. in a greener its to building technology innovative has brought municipality Brånå Torunn KBN / Photo: citizens. youngest KBN’s Green Loans incentivise Norwegian municipalities to invest invest to municipalities Norwegian incentivise Loans Green KBN’s - ISIN XS1508672828 XS1188118100 COUPON 000 1.375 000 2.125 Projects that are in opposition to the long-term vision of a low- the long-term in opposition to are that Projects future. carbon and climate-resilient Projects and solutions that represent steps towards the long towards steps represent solutions that and Projects projects Example yet. there not quite vision, but are term buildings with good (but not excellent) include sustainable ratings. efficiency energy friendly but environmentally are and solutions that Projects vision. Example a part of the long term themselves not by are fossil-based in improvements efficiency energy include projects gas of greenhouse reductions in short-term result tat industry and diesel-fueles buses. emissions, Projects and solutions that already realise the long-term vision long-term the realise already that solutions and Projects this will Typically, future. and climate-resilient of a low-carbon taht structures solutions and governance entail zero-emission Ecample activities. all tino concerns environmental integrate pojects such as solar or energy renewable include projects wind. BROWN DARK GREEN MEDIUM GREEN LIGHT GREEN http://www.cicero.uio.no/en/posts/news/cicero-grades-climate-friend 14. ly-bonds-with-shades-of-green MATURITY 2020 26 OCT, 26 OCT 2020 dark KBN GREEN BONDS GREEN KBN AAA COMPOSITE AMOUNT ISSUED USD 500 MILLION USD 500 MILLION Aaa 14 AAA BOND RATINGS 26 OCT, 2016 26 OCT, 2015 NOV, 02 ISSUE DATE ISSUE OUTSTANDING GREEN BONDS OUTSTANDING KBN’s first green bond issuance, a 3y USD 500 million bond issued in 2013, matured in 2016. KBN has raised KBN has in 2016. matured in 2013, a 3y USD 500 million bond issued bond issuance, green first KBN’s at Japanese households in the Uridashi market. aimed were years the first 2010; funding since green ”, which is the highest possible rating from from rating possible ”, which is the highest THIRD PARTY THIRD PARTY EVALUATION term vision of a low-carbon and climate-resilient and climate-resilient vision of a low-carbon term today” already future green the majority of indicates rating This CICERO. bonds green KBN’s through financed projects long- the realise that solutions and “projects are of green bond issuers, has assessed the has assessed bond issuers, of green of the June 2016 robustness environmental We Bond Framework. Green of KBN’s version “ the rating received have to proud are The Center for International Climate Research Research Climate International for Center The independent, of provider leading the (CICERO), of the frameworks evaluations science-based
ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 32
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 33 “Kommunalbanken continues continues “Kommunalbanken green of be a leading issuer to welcome We bonds in Europe. its made to the improvements which bond framework green for transparent made it more understand better to investors with which the bond the projects We financing. are proceeds green issued in the 2016 invested bond.” Yo Takatsuki, Associate Director, Director, Associate Takatsuki, Yo Investment and Sustainable Governance Management BMO Global Asset at Chris Wigley, Senior Portfolio Senior Portfolio Chris Wigley, Mirova Manager at disbursements. We also greatly appreciate appreciate also greatly disbursements. We such as energy specific data very and the project of share KBN’s savings, Additionally, reduced. GHG emissions of are specific projects of the examples it final analysis as in the particular value, which economy is the impact on the real the important difference.” makes “We welcome KBN’s very comprehensive comprehensive very KBN’s welcome “We such as renewable Priority sectors report. green and efficiency energy energy, disclosed as receiving are transport Strategies and Sustainability at KfW KfW at and Sustainability Strategies achieved with green bonds. We bonds. We with green achieved inspired are issuers other hope that follow.” to Head of Investment Doris Kramer, the use of indicators like GHG like indicators the use of and savings energy reduction, generation energy renewable the impact understand helps to convincing report - transparent - transparent report convincing specific and detailed with very the same time at information, Especially understand. to easy “As an investor in the KBN Green KBN Green in the an investor “As this pleased with very are Bond we INVESTOR QUOTES INVESTOR Photo: Vemund Hagen Vemund Photo: provides a summary provides of the conversion page 5 WE CONSIDER BOTH QUANTIFIABLE AND NON- QUANTIFIABLE BOTH WE CONSIDER IMPACTS QUANTIFIABLE in projects in greenKBN can provide financing for investment finance we Not all the projects that eight different categories. an easily quantifiable impact on through a green loan have in the form or climate the environment of a direct or indirect in emissions. reduction or saving upgrades water to finance major innovative we example, For which are important infrastructure, in termsand wastewater of change and from a public health perspective. adapting to climate both difficult and imprecise to ascribe an however, It is, An exception to this is the light rail service in Bergen (NOK had an independent simplified have for which we 5.27 billion), also took impact assessment carried which environmental out, during emissions generated the construction phase into account. due to this project. Some scope 3 emissions are thus included EMISSIONS AND AVOIDED REDUCED WE REPORT SEPARATELY finance help reduce existing greenhouse Some of the projects we other projects lead while gas emissions directly or indirectly, that indirectly avoided to emissions being either directly or scenario been emitted in a reference otherwise have would aggregate and reductions emissions We savings”). (“emissions understand it can useful to see the that as we separately, savings impact. types of environmental these two difference between a large proportionIt is to be noted that emissions of indirect energy come from reducing and avoiding reductions and savings use the same conversion We principally electricity. consumption, factor electricity for converting into greenhouse gas emissions regardless of whether electricity is being used or electricity More information is available consumption reduced or avoided. section. “Emissions factor for electricity” in the The table on factors used by KBN. - Scope 1: Direct greenhouse gas emissions from sources that - Scope 1: at as combustion such the company, by or controlled are owned vehicles; facilities fuel consumed by company or Indirect greenhouse generation gas emissions from the - Scope 2: of electricity purchased by the company; such as from Other indirect greenhouse gas emissions, - Scope 3: by consumed servicesand goods of materials, production the etc. reporting Scope 3 is an optional category. the company. have we impact of a project, the environmental When calculating on direct emissions and emissions savings based our calculations (scope emissions savings (scope 1) and on indirect emissions and fall that under scope 3 have Emissions and emissions savings 2). impact report. of KBN’s not been included in this version APPENDIX A APPENDIX : 15 IMPACT REPORTING IMPACT CORE PRINCIPLES OF KBN’S OF KBN’S PRINCIPLES CORE . 16 The Greenhouse Gas Protocol divides the emissions generated The Greenhouse Gas Protocol divides the emissions generated by projects into three categories or scopes OUR REPORTING COVERS SCOPE 1&2 EMISSIONS AND 1&2 EMISSIONS SCOPE OUR REPORTING COVERS REDUCTIONS EMISSION assumption that it will be used as designed. We do not currently We it will be used as designed. assumption that This is about projects once they are in use. collect ex post data impact reporting principle in line with the seventh of the IFI’s harmonization initiative WE BASE CALCULATIONS ON EX ANTE DATA CALCULATIONS WE BASE green loans is computed of KBN’s impact The environmental impact on the estimated on the project’s using ex ante data not to be updated in line with changes to the regulations, as in line with changes to the regulations, not to be updated performance relative compared to the building it is a project’s carried assess. the time the project was at regulations we out that difference between the estimated energy consumption of the energy consumption the estimated difference between These regulations. and the applicable building as built building however, think, We regular intervals. at updated are regulations it is correctthat scenario for the reference for such buildings Where an emissions factor for electricity is involved in calculating in calculating Where an emissions factor for electricity is involved will be the impact calculation impact, environmental a project’s of the emissions factor. the value update when we updated as the is assessed impact of new buildings The environmental out such accounting for all investments. This report therefore out such accounting for all investments. of KBN’s impact annual environmental documents the estimated green investments. age, and that the impact of an investment will therefore decrease of an investment the impact and that age, the resources to carry KBN does not have a certain out at rate. finance, to each individual project we such analysis in relation similarly do not currently our customersand we expect to carry Time is an important the calculating parameter when life cycleAdvanced models impact of a project. environmental materials and structurestake into account that deteriorate with portfolio. THE AS & REGULATIONS CODES NORWEGIAN WE APPLY CALCULATIONS IMPACT OF OUR BASELINE the entire lifetime of the loan that was used to finance it. In it. used to finance was loan that of the entire lifetime the impact of a project is removed the environmental other terms, for is or entirety its in back paid is loan the when total the from portfolio of green from KBN’s lending other reasons removed which is to say on the basis of estimates. on the basis of which is to say aggregated impact report for remains in KBN’s An investment is financed using a combination of a is financed using a combination green loan and an ordinary share of the impact for KBN’s only calculate we loan from KBN, the proportion is financed by the of the project that green loan. ex ante, impact of investments environmental the calculate We When a project financed by a When a project financed a quantifiable green loan has share KBN’s calculate we environment, or impact on the climate cost of the impact on the basis of the proportion of the overall If a project is financed by KBN when the loan is that granted. KBN’S IMPACT CALCULATIONS CORRESPOND TO ITS SHARE ITS TO CORRESPOND CALCULATIONS IMPACT KBN’S OF FINANCING
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 35 - - - - page 25 that in 2016 initiated discussions regarding a discussions in 2016 initiated that 17 We welcome any feedback, comments or suggestions on our work comments or suggestions on our work feedback, any welcome We on green should Please get in touch bonds and impact reporting. Green Bond Environmental thoughts on the KBN any have you Impact Report future reports. 2016 or on any KBN forms part of a group public sector issuers of Nordic of green bonds This initiative greencommon approach to bond impact reporting. a common Nordic position on the issues stems from the belief that be beneficial to other may well as green bond issuers as involved sharing that issuersThe believe also community. investor the to will benefit them all as individual experiences and know-how transparent, a develop The purpose is to of our work issuers. harmonized approach to reporting and relevant from the impact a practical guide ambition is to develop The group’s green bonds. aims to publish in the which it for Nordic green bond issuers, an effect have may The outcome of this work second half of 2017. report we impact in the future. on how www.ghgprotocol.org/files/ghgp/public/ghg-protocol-revised.pdf www.ghgprotocol.org/files/ghgp/public/ghg-protocol-revised.pdf 17. Participants (FI=Finland, NO=Norway, SE=Sweden): City of Göteborg (SE), Kommunalbank City of Göteborg SE=Sweden): (FI=Finland, NO=Norway, Participants 17. (SE), Municipality Municipality of Borås (FI), Finance (SE), Municipality Kommuninvest en (NO), SLL (SE), Swedish Council, County (SE), Stockholm (SE), Municipality of Örebro of Norrköping SEK (SE) Corporation, Export Credit 15. Decem Impact Reporting”, for Framework a Harmonized Towards Bonds: Working 16. “Green de Développement Française Agence Bank (AfDB), Development signed: African ber 2015, and Development Reconstruction Bank for European Bank (ADB), Asian Development (AFD), Bank (IDB), Interna Development Bank (EIB), Inter-American Investment European (EBRD), Corporation Finance International (IBRD), and Development Reconstruction tional Bank for voor Nederlandse Financierings-Maatschappij (KfW), für Wiederaufbau Kreditanstalt (IFC), (NIB). Bank Investment and Nordic (FMO), Ontwikkelingslanden OUR REPORTING WITH INTERNATIONAL GREEN OUR REPORTING WITH INTERNATIONAL at the forefront of developments in this area, we recognise the we in this area, the forefront of developments at in the field. with other organisations benefits of cooperating WE CONTINUOUSLY STRIVE TO IMPROVE OUR REPORTING OUR REPORTING IMPROVE TO STRIVE WE CONTINUOUSLY FOR ANY COMMENTS AND ARE GRATEFUL Reporting impact of proceeds from green the environmental work to be we Although and fast-moving field. bonds is a novel Impact Reporting” and “IFI Approach to GHG Accounting for Approach to GHG “IFI and Impact Reporting” Energy Projects” Renewable see below A joint Nordic issuer discussion on impact reporting; - - ICMA Green Bond Principles Taxonomy Bonds Climate Bonds Initiative’s The Climate - a Harmonized for Framework Towards “Working The IFI’s - and its reporting projects it impact of the on the environmental the following with to the best of our knowledge, finances comply, international initiatives: WE ALIGN & INITIATIVES BOND STANDARDS proceeds, the of allocation its greenof issuance bonds, KBN’s possible. However, it is more important to note the quality of these However, possible. unfortunatelythis can although and be quantified not projects, aggregated in the same way. path projects) in the Low-carbon transportprojects) in the Low-carbon path category are simply impact provided. described environmental with no quantified new capacity or increases existing creates Where an investment this is quantified to the extent a plant or facility, capacity at Projects in the Waste management, Water and wastewater and wastewater Water management, Waste Projects in the adaptation change Climate and use land Sustainable management, cycle and footpath as some projects (typically categories as well the Low-carbon transportthe Low-carbon emissions quantifiable category have projects represent approximately These or reductions. savings 85% of the projects in our portfolio in NOK terms. differentiate the portiondifferentiate lending portfolio of our delivers that reductions from the portionquantifiable emissions of our portfolio builds Green new the Energy efficiency, Projects in not. does that projects in as some energy categories as well and Renewable environmental impact in the form impact in the in environmental saving of a reduction or therefore We greenhouse gas emissions to projects of this sort. - measures capacity after capacity after financed measures financed consumption after after consumption Estimated energy energy Estimated equivalents (source: AEA: UK AEA: (source: equivalents - - 2 ENERGY SAVED SAVED ENERGY INCREASE IN CAPACITY IN CAPACITY INCREASE ENERGY EFFICIENCY ENERGY equivalents (weighted average of mainland EU mainland of average (weighted equivalents 2 Energy Energy measures consumption consumption Capacity before Capacity before before measures before WATER AND WASTEWATER MANAGEMENT AND WASTEWATER WATER Assumptions litres 250 water/wastewater: of (PE) equivalent population 1 fig per 24 hours its own where the customer has not provided constitutes a PE. ure for what Assumptions emissions an represent to assumed is kWh 1 of saving energy An producing 1kWh from the emissions to equivalent reduction i.e. in Europe, of electricity to the electricity network delivered CO of kg 0.380 harmonised based on the IFI’s combined margin, + Norway, Appendix C. grid See factor database). oil is assumed to generate 1 kWh of energy from heating emissions of 0.247 kg of CO for 2010). Greenhouse Gas Inventory emissions within zero energy sources have Local renewable scopes 1 and 2. Formula Energy efficiency is calculated as the improvement of energy Energy efficiency as the improvement is calculated compared to a baseline of actual energy consumption use, data. Formula ------APPENDIX B APPENDIX of heated of heated 2 . m floor space 18 ) of heated of heated 2 Estimated Estimated of consumption energy delivered per m floor space ENERGY AVOIDED AVOIDED ENERGY ASSUMPTIONS OF CATEGORIES OF ASSUMPTIONS of 2 CALCULATION METHODS AND CORE CORE AND METHODS CALCULATION NEW GREEN BUILDINGS heated floor space heated Energy Energy limit consumption in the building per m codes ( Formula Assumptions Norway, combined margin, based on the IFI’s harmonised based on the IFI’s combined margin, Norway, Appendix C. grid See factor database). Producing 1 kWh of electricity that is delivered to the elec Producing 1 kWh of electricity delivered is that 0.380 kg tricity in Europe is assumed to generate network of mainland EU + average (weighted of CO2 equivalents aggregated, but a shorta but description proj each for aggregated, provided is ect. New buildings financed by a New buildings from KBN tend to green loan other climate-smart qualities in addition to only using have low-car using such as being built a small amount of energy, The impact of these qualities is not materials. bon building been used and to what extent for each reference scenario. scenario. for each reference extent to what been used and 84% of energy consumption in Norwe According to Enova, from electricitygian was in 2015 buildings greenhouse gas emissions avoided using the emissions factorgreenhouse gas emissions avoided do This is because we for electricity apply we production. energy carriers on what detailed data have not have would When we aggregate the environmental impact for the Green for the impact aggregateenvironmental the we When into a the energy avoided convert we category, new builds fore calculate the difference between delivered energy and delivered the difference between fore calculate regu limit in the building energy consumption the relevant impact. as the basis for the environmental lations from boreholes. We count this energy as emission-free, as we as we count this energy as emission-free, We from boreholes. by currently from sources covered only include emissions there We Protocol. Gas Greenhouse the 2 of and 1 scopes Many of the new environmentally friendly buildings that we we friendly that buildings of the new environmentally Many such as en energy, finance use locally produced renewable solar cells or ground source heating ergy from photovoltaic accordance with the applicable energy consumption limit in accordance with the applicable energy consumption the Regulations TEK10, (currently regulations the building works). on technical requirements for building New green are incorporated in terms buildings en of their building constructed to a reference in ergy efficiency relative
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 37 factor for for factor electricity ADAPTATION the emissions the emissions CLIMATE CHANGE CLIMATE GHG EMISSIONS AVOIDED GHG EMISSIONS RENEWABLE ENERGY RENEWABLE year Number of LAND USE produced per produced kWh of energy of energy kWh SUSTAINABLE SUSTAINABLE No general assumptions are made for Climate change No general assumptions are made for Climate and sustainable land use. adaptation Formula There are many ways of calculating the emissions from alternative from emissions the of calculating ways many are There energy produced renewable The of producing energy. ways oil, heating electricity, replace finance may facilities we at that district produced using renewable heating diesel, conventional using the emissions or fossil energy carriers In view of this, etc. factor for electricity represents a conservative the calculation for lifetime, a project’s over that however, think, We estimate. electricity alternative source of energy to will become the main electricityusing that and consequently is energy, produced locally the best option. Assumptions electricitythe to electricityof kWh 1 Producing delivered is that of CO2 0.380 kg Europe is assumed to generate in network of mainland EU + Norway, average (weighted equivalents harmonised grid based on the IFI’s factorcombined margin, Appendix C. See database). The environmental impact of producing renewable energy that energy that impact of producing renewable The environmental no emissions (under scopes 1 and 2) is accounted for as generates producing of way alternative an to relative reduction emissions an use the emissions factor for We the same amount of energy. electricity to the grid delivered emissions reductions. to calculate https://www.enova.no/innsikt/rapporter/byggstatistikk-2015/sammendrag/1150/0 https://www.enova.no/innsikt/rapporter/byggstatistikk-2015/sammendrag/1150/0 18. ) ) annual distance travelled annual distance travelled capacity after capacity after financed measures financed emissions emissions factor relevant relevant emission factor - INCREASE IN CAPACITY IN CAPACITY INCREASE WASTE MANAGEMENT WASTE GHG EMISSIONS REDUCED GHG EMISSIONS measures Consumption per Consumption km using chosen alternative fossil fuel car or fossil diesel bus Consumption per km Consumption using a conventional a e.g. alternative, Capacity before Capacity before LOW-CARBON TRANSPORTATION LOW-CARBON ( ( Assumptions No general assumptions Formula Gas Protocol). Gas Protocol). at 0.380 kg of CO2e/kWh (reference: (GLO) E13.2). 0.380 kg of CO2e/kWh (reference: at per km can 0.193 kg of CO2 equivalents and diesel: Petrol The (reference: be used if consumption in litres is not known Greenhouse Economics, Transport Norwegian Institute of harmonised grid factor database). See Appendix C. Appendix harmonised grid See factor database). = 0.076 kg per km Electric 0.199 kWh of energy per km cars: Assumptions of CO2- 0.380 kg Electricity from the electricity network: of average produced (weighted emissions per kWh equivalent based on the IFI’s combined margin, mainland EU + Norway, Formula so that the reader may apply the reader may so that 2 . The IFI grid regularly in order factor will be updated database in real emissions from electricity development to capture any gridour update to aim factor accordingly, We generation. the gridmeaning that factor apply in our 2017 impact report we gridThe updated factor will than this year’s. is likely to be lower regardless of the year be applied to all projects in our portfolio, of disbursement. to the question of there is no single answer KBN recognises that report we all electricity figures in both grid savings Hence, factors. CO and tonnes of kilowatt-hours also like to emphasise would We an alternative preferred factor. reducing the amount of electricitythat a project consumes not in the grid freeing capacity for reducing emissions; only involves own new electrification in its projects is a target right. for mainland Europe in the future when variable renewable variablefor mainland Europe in the future when renewable At present, production. share of energy up a large energy makes are part the European energy system of which we uses however, in this Including sources. energy fossil of amounts considerable us with quite a high grid to leaves factorthe equation (relative Norwegian grid factor) of an isolated, makes that calculations some of the projects in our portfolio environmentally look more while for factor, appealing than when multiplied by a national other projects the effect is the opposite. Appendix A APPENDIX C APPENDIX 19. 50/50 weighing of built margins and operating margins. margins. and operating built margins of weighing 50/50 19. the IFIs upon request. from Available 20. 21. See FROM ELECTRICITY CALCULATING EMISSIONS EMISSIONS CALCULATING . Other parties Nordic issuer to the Joint . of 26 EU member states in mainland states member EU 26 of 20 19 the Nordic energy system today and may serve as the ‘battery’ ‘battery’ serve and may as the the Nordic energy system today We decided to apply a Europe-based grid factor because the We Norwegian electricity market is highly integrated with the Nordic with new connections constantly being and European markets, The regional electricity market is the cornerstone of established. database of griddatabase factors discussion on impact reporting system boundary apply the same methodology. and calculation hour of electricity generated. The factor is a weighted average of average The factoris a weighted electricityhour of generated. marginscombined the harmonised and is based on the IFI’s Europe and Norway, For the purposes of reportingFor and reductions emissions savings apply a European mix we to electricityin relation consumption, emission factor of 380 grams per kilowatt- of CO2 equivalents assessed. The question is therefore what emissions factorsemissions what therefore is question The should assessed. or are produced the emissions that apply when calculating we avoided? other importantother partan inevitable is our societies in functions generating However, world. of the transition to a low-carbon electricity taken and these are naturally also produces emissions of projects is impact into account when the environmental financed through KBN’s green loans, while saving electricity saving while is loans, green KBN’s through financed The in our portfolio. one of the main ambitions of other projects transportation systems and systems, electrification of heating Electricity is an important are the projects that of many input in
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ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 39 ------1933 (the “Securities Act”) or under the securities laws of any state of the United States and may not be offered offered be not may and States United the of state any of laws securities the under or Act”) “Securities (the 1933 the from exemption an U.S. persons, unless or benefit of the account or for or to States, or sold in the United with all or sale is made in accordance and such offer is available Securities Act of the requirements registration other jurisdiction. and any States of the United state of any applicable securities laws sional experience in matters relating to investments who fall within the definition of “investment professionals” in professionals” of “investment within the definition who fall investments to relating in matters sional experience 2005 (the “Order”) or Order 2000 (Financial Promotion) Act and Markets article 19(5) of the Financial Services associ unincorporated bodies corporate, (high net worth (d) to within Articles 49(2)(a) persons falling (iii) are “Rele as to referred being persons such (all Order the of etc.) trusts value high of trustees partnerships, ations, Any Persons. not Relevant persons who are on by on or relied not be acted document must This Persons”). vant Persons Relevant to only available is relates document this which to activity or investment investment security, Persons. and will be engaged in only with Relevant of Securities Act States under the United be registered will not been and not have herein discussed securities The stances, including the possible risks and benefits of purchasing any such securities. By accepting receipt of this receipt By accepting such securities. any of purchasing risks and benefits including the possible stances, its advisers, individually or through either it possesses, that represent to will be deemed document the recipient any security discussed or sale of any purchase in involved the risks to understand expertise investment sufficient rates a change in exchange currency, other than an investor's in a currency If a security is denominated herein. in that investor and any the security, from, derived income or the value of, or the price affect adversely may security described in this document are of any availability and risk. Prices currency assumes security effectively notice. change without subject to profes Kingdom or (ii) have outside the United persons who (i) are at or directed document is only made to This legal, tax, accounting or regulatory issues discussed herein. Analyses and opinions contained herein may be may herein and opinions contained Analyses herein. discussed issues or regulatory legal, tax, accounting herein Nothing contained expressed. or opinions can change the analyses if altered, that, based on assumptions or rate currency, credit, security, of any performance future as to or warranty representation any shall constitute results. of future indicative is not necessarily performance past Furthermore, measure. or economic other market loss any for liability disclaim AS Kommunalbanken by retained dealer or arranger any and AS Kommunalbanken on, this document. or reliance use of, with a recipient’s arising out of or in connection make must investors and potential all investors not be suitable for may herein be discussed may Securities that and circum objectives in light of their own transaction of any of the appropriateness an independent assessment ness, accuracy reasonableness or completeness of the information and opinions. There is no obligation to update, update, to is no obligation and opinions. There of the information or completeness reasonableness accuracy ness, fore opinion, projection, information, if any otherwise notify the recipient modify or amend this document or to inaccurate. changes or subsequently becomes herein set forth or estimate cast Such forward-looking statements. forward-looking constitute that includes statements herein information The may results Actual risks and uncertainties. and involve performance of future not guarantees are statements risks and uncertainties. result of as a differ financial, investment, any to in relation independent advice seek its own advised to is strongly Each recipient offer of any security. Any purchase of any security must be made solely on the basis of the information contained be made solely on the basis of the information security must of any purchase Any security. of any offer in the Prospectus. re The securities States. in the United for sale of securities an offer Nothing in this document shall constitute as amended of 1933, Securities Act under the U.S. not been registered have in this document (if any) to ferred exemption or an registration absent States the United in or sold offered not be and may (the "Securities Act"), States. the securities in the United of will be no public offering There under the Securities Act. registration from to believed sources been obtained from and have be reliable to believed are opinions herein and information The correct the fairness, to or implied, is made with respect express or warranty, but no representation be reliable, reviewed, approved or endorsed by any arranger or dealer retained by Kommunalbanken AS. This document document This AS. Kommunalbanken by retained or dealer arranger any or endorsed by approved reviewed, an of part form or constitute not do document this of contents The only. purposes information for provided is any for sale in any securities for or subscribe to purchase offer of any solicitation or any to sell or issue offer matter subject to the related may be that security or other financial instrument of any offering jurisdiction. Any (a “Prospectus”) final prospectus and distinct separate will be made pursuant to of this document (a “security”) In such Prospectus. any by in its entirety will be superseded herein contained and in such case the information and this document in terms material all not contain it may document is a summary only, addition, because this the Prospectus, consult should recipient decision. The investment any the basis for form and of itself should not proposed about any information complete more for or dealer, an arranger from be available may of which a copy DISCLAIMER not been It has AS. of Kommunalbanken and is the sole responsibility by has been prepared document This ENVIRONMENTAL IMPACT REPORT 2016 / PAGE 40
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