IMPACT REPORT 2018 / PAGE 1 2018

Kommunalbanken AS Kommunalbanken GREEN INVESTMENTS GREEN INVESTMENTS IMPACT REPORT IMPACT FINANCED WITH GREEN BONDS FINANCED WITH GREEN per 2 bn.

2.16 GREEN LOANS TO GREEN PROJECTS TO USD calculations for electricity using other emission factors factors electricity using other emission for calculations OUTSTANDING LENDING OUTSTANDING 2 calculations are based on an emission factor of 380 g CO of factor based on an emission are calculations

2 All CO in the recommended factor which is the emission electricity, of kWh Bonds Impact on Green Paper Position Issuers’ Public«Nordic Sector Reporting». CO 8 in this report. on p. can be found bn.

- of new green of new

2 m buildings erected 454 481

Per 31 December 2018. Exchange rate: 1 USD= 8.7 NOK 1 USD= 8.7 rate: Exchange 2018. 31 December Per 3 1.48 OUTSTANDING GREEN BONDS renewable renewable annually GREEN BONDS 111 USD GWh energy produced produced energy 41 energy reduced reduced energy + avoided annually + avoided GWh

of existing of existing

buildings 2 m implemented in implemented 3. 24,233 MWh energy reduced from energy efficiency measures; 16 763 16 efficiency measures; energy from reduced energy MWh 3. 24,233 refer to buildings, when compared green in new avoided energy MWh building code. the national to building built according ence 348 997 Efficiency measures measures Efficiency

added capacity e annually 2 management 52 463 of sustainable waste waste of sustainable Tonnes Tonnes of CO + reduced tonnes tonnes GHG emissions avoided avoided GHG emissions 64 769 management 309 237 Added capacity of capacity Added

2 e sustainable wastewater wastewater sustainable population equivalents population 2 1 e of CO 2. From projects within categories New Green buildings & Renewable buildings & Renewable Green New within categories projects 2. From management that Waste within the category as projects as well Energy, energy. or produce, the use of, reduce 2 CO - Tonnes Tonnes 48 641 avoided annually avoided 16 128 Tonnes of Tonnes reduced annually reduced IMPACT REPORT IMPACT s ESTIMATED ENVIRONMENTAL IMPACT IMPACT ENVIRONMENTAL ESTIMATED FROM KBN’S GREEN LOANS: KBN' 2.16 billion dollars, outstanding in green loans to investments that are aligned with are that investments to loans in green outstanding billion dollars, 2.16 and are rate interest a discounted given loans are Green Bond Framework. our Green sector. the local government in investments sustainable for meant as an incentive loans. green with KBN's financed projects presents report This By the end of 2018, KBN had a total 18.8 billion Norwegian kroner, equivalent to to equivalent kroner, billion Norwegian 18.8 a total KBN had of 2018, the end By 1. From projects within categories Energy Efficiency & Low-carbon Trans Low-carbon Efficiency & Energy within categories projects 1. From management Waste within the category as projects as well portation, impact. emission-reducing a direct have that

IMPACT REPORT 2018 / PAGE 2 IMPACT REPORT 2018 / PAGE 3 1.3 3% 0.8 4% 25.1 2.7% N/a N/a N/a 2.9% 2.0% 15.0 0.5% 0.5% 15% 73.7 12.5% 23% 23% 28.7% 50.2% 68% e per 2 Impact, tonnes CO million NOK 30 6 892 7 086 9 206 40 855

emissions 2 CO avoided/ reduced annually New green buildings green New energy Renewable efficiency Energy transportation Low-carbon management Waste management and wastewater Water land use Sustainable change adaptation Climate 92 332 92 87 655 87 517 287 367 321 367 554 036 5 389 633 5 389 2 348 562 9 430 727 18 787 553 18 787 Outstanding amounts to in NOK projects,

GREEN PORTFOLIO Project category Project TOTAL bond investors green to Impact attributable projects disbursed to outstanding total bonds divided by green outstanding Total Where of impact attributable to Green Bond USD 500 mn (02/11/2025) Green to of impact attributable Where Bond USD 500 mn (10/26/2020) Green to of impact attributable Where mn (11/29/2027) Bond NOK 750 Green to of impact attributable Where Bond NOK 600 mn (11/29/2032) Green to of impact attributable Where 450 mn (09/05/2023) Bond AUD Green to of impact attributable Where PROJECT PORTFOLIO & IMPACT OVERVIEW PORTFOLIO & IMPACT PROJECT buildings green New energy Renewable efficiency Energy transportation Low-carbon management Waste management and wastewater Water land use Sustainable change adaptation Climate - - 2018

(10/26/2020) Position

developed developed 2018 2017 500 mn. USD Green Bond 500 mn. USD Green Bond (11/29/2032) 600 mn. NOK Green lending green Outstanding ogy presented in the ogy presented Bonds on Green Paper Impact Reporting of Nordic a group by bond green public sector including KBN. issuers, KBN Norway’s impact report KBN Norway’s to according ing is conducted methodol the principles and 2017 (02/11/2025) 2016 2016 January 2019 Nordic Public Sector Issuers: Public Sector Nordic Paper Position Bonds on Green Impact Reporting Million USD 0 500 mn. USD Green Bond 500 mn. USD Green Bond (11/29/2027) mn. NOK Green 750 Bond (09/05/2023) Green 450 mn. AUD 500 1500 1000 OUTSTANDING GREEN BOND ISSUANCES AND GREEN PROJECT LENDING AND GREEN PROJECT GREEN BOND ISSUANCES OUTSTANDING 2500 SUMMARY 2000 17 21 41 37 33 26 29 49 46 - -

CASES Finnmark’s first care centre in mass timber mass in centre care first Finnmark’s building site Fossil-free being and manure waste Food fuel turned into solutions of tomorrow energy The old City Hall an for redu significantly power Shore-side shipping from cing emissions and metal of glass Home collection recycling increasing packaging environmental delivers Collaboration benefits neigh zero-emission first Norway’s bourhood flooding frequent to An answer 31 14 27 35 39 47 24 44 impact from 2 TABLE OF CONTENTS OF TABLE LIST OF PROJECTS OF LIST Climate change adaptation Climate New green buildings green New energy Renewable efficiency Energy transportation Low-carbon management Waste management and wastewater Water land use Sustainable 7 5 8 6 13 12 10 - - MAIN CONTENT MAIN reviewed by KBN but has not been verified by KBN or a third party. Calculations of CO of Calculations party. by KBN or a third KBN but has not been verified by reviewed We do by KBN. are done production energy renewable and measures efficiency buildings, energy that should be aware the reader however, provided; the quality of the information ensure to our best investments. impact from and environmental climate estimating to related is uncertainty there Key reporting principles reporting Key risk climate to Municipalities’ exposure Governance a contribu lending makes KBN's green Nations' the United achieving tion to Goals Development Sustainable has been information The customers. KBN’s from is collected about the projects Information KBN’s green project portfolio in portfolio project green KBN’s in 2018 fifty percent by creased bonds KBN green lending Green -

Cover image is from Greve Biogas in Biogas Greve image is from Cover about the plant on page 26. Read Vestfold. state company. Our vision is to be a Our vision is to company. state welfare. local partner for long-term Measured by total assets, KBN is Nor KBN assets, total by Measured financial institution largest third way’s nearly all of the country’s with loans to municipalities. KBN is a wholly owned in the international capital markets, capital markets, in the international credit possible maintaining the highest of AAA/Aaa. rating cost efficient long-term financing. efficient long-term cost the local government lending to KBN’s securities issuing is funded by sector AUTHORITIES IN NORWAY. IN NORWAY. AUTHORITIES the local provide is to mandate KBN’s and with stable sector government KOMMUNALBANKEN NORWAY (KBN) NORWAY KOMMUNALBANKEN WELFARE FINANCES IMPORTANT THROUGH PROVIDING SERVICES THE LOCAL CREDIT TO

IMPACT REPORT 2018 / PAGE 4 IMPACT REPORT 2018 / PAGE 5 - Sigbjørn Birkeland, Cheif Sigbjørn Birkeland, at Officer Financial Markets Jo Straube KBN. Photo: nn The amount of investment required to The amount of investment very successful transaction for KBN. change is enormous. up with climate catch Through its green KBN lending program, transition to to facilitate wants its customers’ cli as enabling as well society, a low-carbon a world-class to buy investors mate-conscious product. projects across Norway. Investor demand for Investor projects across Norway. green has grown bonds in recent strongly Norwegian KBN is the most active years. became the In 2018 we issuer of green bonds. Australian greenfirst issuer to use the Nordic is witnessing changesAustralia bond market. desire to contribute and a strong to its climate, resulted in a to climate-friendly investments - - KBN’s 2018 Environmental Impact 2018 Environmental KBN’s KBN has in this report for the firsttime green are issued in the in bonds KBN’s Report further builds Nordic on the joint KBN has of investment. guidelines for this type an importantplayed role in the development of international standards for impact reporting commit on the executive thanks to its position tee of the Green Bond Principles and its role in of the Nordic guide to impact the development reporting, in January updated 2019. which was Sustainable Development integrated the UN’s Goals into its impact reporting in order to contribution our greenhighlight the positive of these goals. bonds make to the achievement ternationalfinance capital markets and green - - - - of new 2 emissions. 2 of existing building stock of existing building 2 KBN’s green lending for investment in green for investment lending KBN’s Even if mainland Norway is not warming if mainland Norway Even capacity for 309,000 people The production of 107 GWh of local, energy renewable The construction of 444,431m green buildings for Energy efficiency improvements 348,997m and wastewater Capacity increases to water to new management systems equivalent § § § § § projects over the year. In total, its green lend In total, the year. projects over ing contributed to the reduction and avoid ance of 65,000 tonnes of CO welfare serviceslocal-government makes an important contribution to the transition to a to climate future and to adaptations low-carbon helped finance: have We change across Norway. § § § change adaptation measures in Svalbard. in Svalbard. measures change adaptation of the consequences as quickly as Svalbard, par there, change are also apparent climate higher and more intenseticularly as a result of are Norwegian municipalities precipitation. invested change and have confronting climate buildings and infrastructuresignificantly in It is therefore more climate-resilient. are that pleasing to see strong growth in demand for portfolio of out KBN’s green loans: KBN’s standing green loans grew by a sizeable 60% granting with KBN to 2017, in 2018 relative green for 84 loans totalling NOK 7.3 billion granted for important2018 was in climate

GREEN PROJECT PORTFOLIO PROJECT GREEN s

BY SIGBJØRN BIRKELAND BY

CHEIF FINANCIAL MARKETS OFFICER, KBN OFFICER, CHEIF FINANCIAL MARKETS

INCREASED BY FIFTY2018 BY INCREASED IN PERCENT KBN’ nature and population. One of the loans KBN One of and population. nature the century 10oC higher than will be almost 2100”). in Svalbard in 1971-2000 (“Climate major consequences for its This will have the rest of the Arctic. If human greenhouse Arctic. the rest of the as the same rate gas emissions continue at the average by year, increasing year today, the end of toward in Svalbard temperature The Arctic is warming about twice as fast asThe is located and Svalbard the rest of the world, is warmingin an area that more quickly than municipalities are stepping up their stepping municipalities are efforts. climate the large increase in KBN green in KBN green increase the large Norwegian that loans indicates are instrumental in adopting instrumental are a to Norway and transforming Indeed, carbon future. low resilient, but the consequences are local. are but the consequences of municipalities endeavours The Climate change is global, and policy change Climate national, mostly are responses ISIN XS1188118100 NO0010811276 XS1508672828 NO0010811284 AU3CB0256162 US50048MBX74 US50048MCD02 Aaa 2.125% 1.375% 2.700% 2.200% 2.000% COUPON AAA Projects and solutions that already realise the long-term vision of a low-carbon vision of a low-carbon the long-term realise already and solutions that Projects solutions and zero-emission this will entail Typically, future. and climate-resilient all activities. tino concerns environmental taht integrate structures governance wind. pojects such as solar or energy include renewable projects Ecample but are vision, the long term towards steps represent and solutions that Projects buildings with good include sustainable projects Example yet. there not quite ratings. efficiency energy (but not excellent) not by friendly but are environmentally are and solutions that Projects include energy projects vision. Example a part of the long term themselves result in short-term tat industry fossil-based in improvements efficiency and diesel-fueles buses. gas emissions, of greenhouse reductions and vision of a low-carbon the long-term in opposition to are that Projects future. climate-resilient BOND RATINGS 11/29/2027 11/29/2032 02/11/2025 10/26/2020 MATURITY 09/05/2023 DARK LIGHT GREEN GREEN GREEN BROWN MEDIUM USD 500 million USD 500 million NOK 750 million NOK 750 AUD 450 million AUD NOK 600 million AMOUNT ISSUED 11/29/2017 11/29/2017 02/11/2015 10/25/2016 09/05/2018 ISSUE DATE ISSUE - -

OUTSTANDING OUTSTANDING GREEN BONDS

at Japanese households in the Uridashi market. at green funding since 2010; the first years were aimed were years the first 2010; since funding green bond issued in 2013, matured in 2016. KBN has raised KBN has raised in 2016. matured in 2013, bond issued KBN’s first green bond issuance, a 3y USD 500 million bond issuance, green first KBN’s KBN GREEN BONDS GREEN KBN climate-resilient future already today” climate-resilient We are proud to have received the rating “dark green”, which is the green”, “dark the rating received are proud to have We the ma indicates This rating from CICERO. highest possible rating “projects green bonds are jority of projects financed through KBN’s realise the long-termand solutions that and vision of a low-carbon leading provider of independent, science-based evaluations of the evaluations science-based of independent, leading provider ro has assessed the environmental of green bond issuers, frameworks Green Bond Framework. of the June 2016 version of KBN’s bustness The Center for International Climate Research (CICERO), the The Center for International Research (CICERO), Climate THIRD PARTY EVALUATION THIRD PARTY In June 2016, KBN updated its Green Bond programme and was rewarded a rewarded and was Bond programme its Green KBN updated In June 2016, CICERO. by shading Dark Green KBN has been a repeat issuer of public green bonds since 2013. By the end By 2013. since bonds of public green issuer a repeat KBN has been to USD 1.48 billion. bonds amount Green outstanding the five of 2018,

IMPACT REPORT 2018 / PAGE 6 IMPACT REPORT 2018 / PAGE 7 - - - of new 2 of existing buildings 2 the Bergen Light Rail system. 176 projects carried out by 94 mu county authorities and nicipalities, companies publicly-owned 85 new projects in 2018 range from a loan The investments for new LEDtotalling NOK 150,000 street lighting in Surnadal through to a loan of NOK 5.3 billion to finance Construction of 444,431 m green buildings to Energy efficiency improvements 348,997 m Increase in water and wastewater and wastewater Increase in water to ca capacity equivalent treatment pacity for 309,000 additional people Production of 107 GWh of local, energy renewable Important change adapta climate from Brynetions in locations in the in the north to Svalbard west § § § § § § § § KBN'S PORTFOLIO OF GREENKBN'S PORTFOLIO FINANCED ... HAS LOANS § § § THE PROJECTS MAKE AN THE PROJECTS TO CONTRIBUTION IMPORTANT TO RESPONDING AND ADAPTING CHANGE THROUGHOUT CLIMATE NORWAY: § § § § § 50.2% 2018 EN P RE RO G J E C 2017 T

S

0.5%

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2016

B I

2.9%

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I

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0.5%

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K 2015 12.5% 0 1000 7000 2000 2.7% 5000 3000 8000 DISBURSED GREEN LOANS, PER YEAR DISBURSED GREEN LOANS, 6000 4000 Million NOK 28.7%

-

NEW GREEN BUILDINGS ENERGY RENEWABLE EFFICIENCY ENERGY TRANSPORTATION LOW-CARBON MANAGEMENT WASTE MANAGEMENT AND WASTEWATER WATER LAND USE SUSTAINABLE CHANGE ADAPTATION CLIMATE Green loans are made available at a at Green loans are made available charged than the rate interest rate lower on KBN's normal loans. KBN experienced strong growth in de Between mand for green loans in 2018. the end of 2017 and the end of 2018, green of the the outstanding value loan portfolio increased by 50%. GREEN LENDING GREEN KBN’s website. website. KBN’s for each of the categories. The The each of the categories. for on document is available criteria Investments are assessed in assessed are Investments set with a criteria accordance criteria specifies separate that projects that fall into any of the any into fall that projects eight categories: following Green loans are available for available loans are Green KBN has offered green loans, green KBN has offered of green the issuance by financed 2010. bonds, since All the funding raised by KBN's green bond issues is used issues bond green KBN's by raised All the funding loans. as green customers to lending for exclusively - - - 87 e - - 874 2 - 1 139 5 053

3 7 153 tonnes 7 153 0.047 per kilowatt per kilowatt 2 236 2 381 3 102 13 761 emissions using an 2 equivalents per kWh) equivalents 2 2 19 480 tonnes 0.128 0.128 e emissions or amount of CO e emissions 2 700 7 067 9 208 40 854 https://www.asplanviak.no/aktuelt/2016/02/03/nordisk-stro 1 https://www.asplanviak.no/aktuelt/2016/02/03/nordisk-stro 57 829 tonnes 57 emissions avoided in tonnes using different emis using different in tonnes avoided emissions of CO (KG sions factors 0.38 Reduction in CO Reduction From 2018, our reporting to also indicates From 2018, Develop Sustainable which of the UN’s ment Goals the various project categories make a contribution. emissions factor for the continental EU This factor has been selected plus Norway. a common factorbecause of a desire for to the elec counties, be applied to all Nordic are closely con tricity of which networks this In 2018, Europe. nected to the rest of factor 380 grams was of CO The table to the right more provides hour. impactinformation on the environmental of the green project portfolio if different emission factors are applied. is converted into CO is converted §

§ - 1 819 1 835 107 510 107 - 111 164 MWh Renewable en Renewable produced ergy in MWh

- 22 - 16 763 16 763 24 233 24 41 018 MWh 018 41 avoided in MWh avoided Reduction inReduction con energy sumption/ener gy consumption /kWh: Norwegian Supply Mix, rolling five-year interval. Source: Asplan Viak Asplan Source: interval. five-year Supply Mix, rolling Norwegian /kWh: /kWh: Nordic Supply Mix, rolling five-year interval. Source: Asplan Viak Asplan Source: interval. five-year Supply Mix, rolling Nordic /kWh: 2 2 /kWh: Continental EU plus Norway, based on national emissions factors gathered by the international financial institutions behind the financial institutions the international by gathered factors emissions based on national EU plus Norway, Continental /kWh: 2 Our reporting around the net is centred to the either relative benefit of each project completion priorsituation the project’s to as appropriate. or to a reference scenario, use the relevant As reference scenarios we Norway’s e.g. regulatory requirements, (TEK). regulations building Our reporting to emissions and is limited fall that emissions reductions under Scopes direct greenhouse gas emis i.e. 1 and 2, sions and indirect greenhouse emissions gas as defined from the production of energy, in the Greenhouse Gas Protocol. whether used as part of a Electricity, or its through a project, saved project, through a project, consumption avoided § § § Category Total Renewable energy Renewable buildings green New management Waste Energy efficiency Energy 1. 0.38 kg CO kg 1. 0.38 cf. Paper, Position in the Nordic recommended factor is the emissions document. This impact reporting” for framework a harmonized towards “Working on this calculation. information more for Paper in the Position p.23 CO kg 2. 0.128 em-blir-renere/ CO 3. 0.047kg em-blir-renere/ § § § CALCULATIONS GHG IMPACT GRID FACTORS: using different calculated reduced/avoided and energy production energy renewable From electricity for factors emissions - - - -

indicators have also been developed for also been developed indicators have each individual project category. All investments we finance with we green All investments bonds form part of a combined green what 3 shows The table on p. portfolio. proportion of this portfolio each of KBN's green bond issues has financed. report the expected impact of projects We in future report may actu we but (ex ante), al impacts (ex post). report the such as on key indicators, We amount of greenhouse that gas emissions the amount by which will be avoided, greenhouse reduced, gas emissions will be or the amount by which energy consump Separate as relevant. tion will decrease, Our reports include information the pro at categoryand portfolio level level. ject level, report impact we Each environmental to the proportionrelates of the project we half we provided If, for example, financed. we report half of the financing for a project, impact. environmental the project’s § § § § § § § § that the reportingthat for even process is manageable small organisations. relatively PRINCIPLES IMPORTANT THE MOST ARE: FOR OUR REPORTS § § The principles set out in the Position Paper The principles set out in the Position to com organisations are intended to enable and consistentmit to delivering transparent impact reportingenvironmental to is useful that while ensuring and other stakeholders, investors

https://www.kommunalbanken.no/media/545579/npsi_position_ KEY REPORTING PRINCIPLES REPORTING KEY *) paper_2019_final.pdf impact reporting. Paper on Green Bonds Impact on Green Paper as which KBN uses Reporting”*, its environmental the basis for KBN contributed to “Nordic “Nordic to KBN contributed Position Issuers: Public Sector

Reporting January 2019 Impact on Green Bonds on Green Nordic Public Sector Issuers: Public Sector Nordic Paper Position

IMPACT REPORT 2018 / PAGE 8 IMPACT REPORT 2018 / PAGE 9

will be involved in the change. will be involved TARGETS CLIMATE NORWAY reduction of greenhouse gas emission by 2030 2030 by gas emission of greenhouse reduction aims law climate Norway’s levels*. 1990 to compared 2050.” society by emission a low achieve to the municipal sector this, it is critical that get to To “Norway is committed to a target of an at least 40% 40% least of an at target a to committed is “Norway * Norway’s climate law climate * Norway’s - Physical riskPhysical concerns the costs associated climate damage caused by with physical risk Physical can either be acute change. risk to relates Acute physical or chronic. which is to say storms weather, and severe change Climate events. extreme weather Chronic physical risk refersChronic physical to the long-term effects of a PHYSICAL RISK PHYSICAL declared unfit for settlement due to the risk of flooding and Over deteriorate. quality may water An area’s slush avalanches. become a problem. rising may the longer term, sea levels means that such events will happen more frequently. Munic more frequently. will happen such events means that and buildings ensure that plans that ipalities need to produce other infrastructure more extreme weather. can withstand elsewhere in the world. and both in Norway changed climate, be significantly The conditions needed to produce food may be may Areas intended for residential development impacted.

Liability risk Physical risk Physical risk Transition

TO CLIMATE RISK CLIMATE TO MUNICIPALITIES’ EXPOSURE MUNICIPALITIES’ • • • Climate risk can be divided into: Climate about climate risk involves reversing this perspective: What will climate will climate What this perspective: reversing risk involves about climate business and for society mean for policies climate change and stricter and industry? public sector organisations have done on climate change has been done on climate have organisations public sector Talking gas emissions. greenhouse can cut their own they about how BY THE NORWEGIAN CLIMATE FOUNDATION CLIMATE THE NORWEGIAN BY and businesses that of the work proportion large a very Up until now, by large and small communities. Local authorities have to come to to come to have authorities Local and small communities. large by with this. terms Climate policies and the consequences of climate change will be felt will be felt change of climate and the consequences policies Climate

IMPACT REPORT 2018 / PAGE 10 IMPACT REPORT 2018 / PAGE 11 - - - - in the first half of Liability risk to claims for compen relates can result that and legal proceedings sation from decisions or failures to take decisions pol to climate related are in some way that Different versions change. icies and climate are legal proceedings of climate-related In 2018 we entered into a collaboration with the entered into a collaboration In 2018 we In 2019 KBN will map its own exposure to cli In 2019 KBN will map its own KBN’S WORK ON CLIMATE RISK ON CLIMATE KBN’S WORK to local authorities of loans As the main provider in KBN wishes to shed a light on climate-related Norway, risks exposed. to which municipalities are Center for International ResearchCICERO Climate to develop Foundation and the Norwegian Climate exposure municipalities’ about and share knowledge developing involves The collaboration risk. to climate municipalities and an riska climate tool for Norway’s as setting up a news as well information pamphlet, The tool will be published on risk. letter on climate Kommunalbanken.no/Klimarisiko 2019. riskmate with a view to reporting in accordance with risk-related Climate factors will TCFD framework. the also to a larger extent be considered in the assessment of green loan applications. LIABILITY RISK being brought around the world. This is relevant to Norwegian This is relevant the world. being brought around making adaptations which are responsible for municipalities, network wastewater a functioning providing change, to climate and managing surface water. - - market market also creates risk. Cheap solar energy is Cheap solar energy risk. also creates technology to change, with new markets for low-carbon tech with new markets for low-carbon to change, New on the one and regulations of policies The combination is also an reputation or product’s company A sector, outcompeting fossil fuel energy in many parts of the world. parts energy in many outcompeting fossil fuel of the world. Electric cars engine will cause the combustion to disappear time. over on the other is causing hand and new technology conditions the same time as old technologiesnologies at created being risk Climate thus represents both a threat decrease in value. and an opportunity in terms creation. of jobs and value force or environ Attracting the best work important factor. consumers can be difficult for a company mentally aware do Municipalities that highly dependent on fossil fuels. is that risknot adjust are at of becoming less attractive. - can be decisions at the global level level the global can be decisions at sions, e.g. by significantly reducing fossil by significantly e.g. sions, represent a massive This will fuel usage. framework will alter the adjustment that Transition risk concerns the changes Transition moves world will take place as the that its greenhouse cutting gas emis towards Policies and regulations Policies TRANSITION RISK TRANSITION cities. by Norway or by the EU/EEA. Decisions taken at the local Decisions taken at or by the EU/EEA. by Norway decisions to or regional can also be very e.g. important, level ban certain types of fuel or to restrict driving and in towns groups: policies and regulations, technology, markets and technology, policies and regulations, groups: reputation. or alternatively decisions taken Agreement, such as the Paris in which businesses operate at both the micro and macro both the at operate in which businesses risk different into four often broken down is Transition levels. from industry organisations, environmental organisations, organisations, environmental from industry organisations, * KBN’s Green Bond Framework, which also defines the processes for the which also defines the granting Green Bond Framework, KBN’s has undergone a they are reported, how of funds and the payment of green loans, third-party Center for International Research. review from the CICERO Climate the which signifies that ‘Dark green’, framework KBN’s has rated CICERO targets. KBN finances are in line with the 2050 climate investments criteriawasawarded green loans defines which projects can be set that KBN’s committeeThis committee of green experts. with KBN’s produced in collaboration consists of specialists The committee sector. agencies and the local government government relevant the set of criteria. to update to assess the need meets yearly 1. 2. * In 2018 KBN’s green expert committee comprised representatives from the Norwegian Environment Agency, the state-owned enterprise Enova, Enova, enterprise the state-owned Agency, Environment the Norwegian from representatives comprised committee expert green KBN’s * In 2018 Resource Emission and the Zero and Regional Authorities Local of Association the Norwegian Municipality, Asker Municipality, County Hordaland foundation. a climate (ZERO), Organisation QUALITY CONTROL QUALITY it although therefore internal, The process is be quick. to process has greenThe approval loan process consists of the following: The quality-control has good quality-control routines.

lending portfolio. the environment and sustainability. Two of the four climate controllers of the four climate assess the Two and sustainability. the environment the verdict as to whether or not to approve and prepare a final recommendation of within three days a response to its application The customer receives application. its receipt by KBN. interest the customer is offered a green loan with a lower If the project is approved, green is included in KBN’s the project accepted, Once the loan has been rate. set of criteria for green loans and writes on whether or not the a recommendation should be approved. application to are forward recommendation and the account manager’s The application function always control The climate internal controllers. panel of climate KBN’s matters, of or training in climate special knowledge comprises four people who have The customer submits an application for a green an application The customer submits KBN for one or more loan to form application The customer completes a separate for each specific projects. much documentary as to provide evidence as Applicants have project category. possible for the information are required to include in the application. they account The customer’s customer team. by KBN’s is received The application the project is in line with KBN’s manager makes an initial assessment of whether GOVERNANCE 4. 3. 2. APPROVAL PROCESS APPROVAL 1. In order for an investment to receive financing through KBN’s green bonds, it must go through an approval process for green for green process an approval go through bonds, it must green KBN’s through financing receive to an investment for In order levels. several at quality-checked are and criteria process approval loans. The

IMPACT REPORT 2018 / PAGE 12 IMPACT REPORT 2018 / PAGE 13 SUSTAINABLE LAND USE SUSTAINABLE safe, facilitate to help that land-use projects finance We healthy and promote places and sustainable inclusive ecosystems. CHANGE ADAPTATION CLIMATE equip helps to change adaptation in climate Investment and other weather with extreme cope local societies to change. of climate consequences Green lending finances investments such as biogas investments finances lending Green that buildings for sources heating and renewable facilities fuels. fossil replace help to EFFICIENCY ENERGY reduce to help that measures efficiency Energy the for energy and release gas emissions greenhouse of other sectors. electrification TRANSPORTATION LOW-CARBON support the electrification that projects lending finances Green both on land and and goods transport of public transport and cyclists. pedestrians for facilities as providing as well water, MANAGEMENT WASTE help to that facilities management in waste Investment climate- more and facilitate of recycling the rate improve resources. friendly management of waste MANAGEMENT AND WASTEWATER WATER of availability the to ensure help finance we projects The wastewater. pollution from reduce and drinking water safe NEW GREEN BUILDINGS GREEN NEW energy reduce to help finance buildings we The sustainable of more support the use and consumption building materials. ENERGY RENEWABLE -

https://www.kommunalbanken.no/media/545579/npsi_posi

categories" in the Nordic Public Sector Issuers: Position Paper on Green Bonds Impact on Green Paper Position Issuers: Public Sector in the Nordic categories" Reporting. See page 20: tion_paper_2019_final.pdf * This summary has been produced on the basis of "SDG mapping – Nordic position paper "SDG mapping – Nordic on the basis of summary has been produced * This NATIONS' SUSTAINABLE SUSTAINABLE NATIONS' GOALS DEVELOPMENT ACHIEVING THE UNITED THE ACHIEVING LENDING MAKES A MAKES LENDING TO CONTRIBUTION KBN'S GREEN KBN'S report. detailed objectives are supported by the by supported are detailed objectives in the can be found of project categories in this on each category commentary of project financed by green lending*. by green financed of project of which on our analysis Information The following table explains which table explains following The Goals are Development Sustainable categories the various by supported Development Goals. Development make an important contribution whenan important contribution make work local communities Norwegian supporting the UN's Sustainable towards sustainability of the projects that are are that of the projects sustainability from lending by green be financed to these projects means that KBN. This We set strict requirements for the for requirements set strict We - By 2030, achieve the achieve 2030, By By 2030, double the 2030, By Ensure access to affordable, affordable, to access Ensure and modern sustainable reliable, energy 7.3 Target in of improvement global rate efficiency energy consumption sustainable Ensure patterns and production 12.2 Target and effi management sustainable resources cient use of natural UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN BUILDINGS NEW GREEN TO e 2

9 962 842 MWh MWh CO tonnes 1 835 NUMBER OF PROJECTS FINANCED, 2018 16 815 7 086 46 NUMBER OF PROJECTS FINANCED, TOTAL 73 *In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish bond investors green bonds. Hence, with green financed was portfolio Loans Green outstanding KBN’s of 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. impacts should depart from of their share calculate other. the to one year from vary KBN GREEN LOANS TO NEW GREEN BUILDINGS TO KBN GREEN LOANS in 1000 NOK outstanding, Total GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED use avoided Energy produced Energy avoided GHG emissions - - - , or it is con

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https://dibk.no/byggere

PROJECTS NEW GREEN BUILDINGS GREEN NEW the individual buildings, compared to the individual buildings, compared building in the national requirements quantify the do not currently We code. material impact of sustainable climate concrete or recycled steel. steel. or recycled concrete based impact is calculated Reported efficiency of energy on the relative in the national building code in the national mainly with the use of low-emis structed low-carbon such as wood, sion materials two main criteria: The building should The main criteria: two demand net energy an estimated have requirements below is 20 per cent that New buildings financed by KBN’s green green by KBN’s buildings financed New one out of least with at loans comply energy frames in § 14-2. Requirements for energy efficiency in energy for in § 14-2. Requirements frames energy See regulations. Building Technology glene/byggteknisk-forskrift-tek17/14/14-2/ 1. - INet energy demand in the building is compared with the demand in the building is compared 1. - INet energy

IMPACT REPORT 2018 / PAGE 14 IMPACT REPORT 2018 / PAGE 15 - - - 22 22 42 46 46 158 75.4

GHG emissions avoided ------

93 413 93 144 245 Energy pro- Energy annually, duced in kWh -

111 079 54 092 122 041 58 500 58 500 322 341 120 000 Project Project planning phase Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually Project planning phase 2 4718 1300 1300 3485 6700 3000 10200 18000 30000 Heated Heated in m area 2% 11% 22% 25% 79% 24% 29% 100% 100% 100% KBN financing 94 200 94 000 40 000 40 000 341 000 341 735 500 735 190 000 100 000 457 000 457 1 340 500 Total cost cost Total (1000 NOK) - 21 700 10 000 24 000 24 40 000 40 000 179 200 179 150 000 100 000 100 000 100 000 Outstand ing green loan (1000 NOK) 21 700 10 000 24 000 24 40 000 40 000 179 200 179 150 000 100 000 100 000 100 000 Disbursed loan green (1000 NOK) building will as a minimum be BREEAM-NOR Good". as "Very certified built places A dementia village with 158 institutional will be building The standard. the passive-house to and will have system heating a district to connected site. construction solar panels. Fossil-fuel-free its own housing with 15 units and a dementia Sheltered and Heating with 28 places. 24/7 staffed facility geothermal wells. through cooling grass playing field and outdoor sports facilities, as sports and outdoor field playing grass with 150 places. centre care as a residential well will that model project is a FutureBuilt centre The the with as "Excellent", be BREEAM-NOR certified certified. and plus-energy be Outstanding option to timber with 104 home in mass care A new home for as premises as well rooms, residential 90% of heat centre. care and a day services care met with the remainder bio energy, demand met by air conditioning. from recovered heat by with 96 dementia centre residential New a further for provision care apartments and day with the primary timber, Built in mass people. 24 being geothermal wells of heating source underfloor heating. via waterborne distributed than a TEK16 energy 20% less require to Structure building. reference with timber elementary school built in mass A new Primary 600 pupils and 80 employees. for space distributed is geothermal wells of heating source underfloor heating. via waterborne and compliance timber structure Mass nursery. New planned. standard with passive-house and compliance timber structure Mass nursery. New planned. standard with passive-house 250 elementary school dimensioned for New with and compliance timber structure pupils. Mass planned. standard the passive-house The 160 children. for nursery with space New Description an elementary school will include that A local centre for nursery a year, forms in each parallel with five sports hall, an artificial a multi-use 300 children, - 2018 2018 2019 2019 2019 2022 2020 2020 2020 2020 Com pletion - 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment Skoklefall sheltered sheltered Skoklefall housing units school nursery Jarenga Carpe Diem dementia village Lø nursery Lø nursery Mære elementary Mære dementia centre dementia centre school Kongeveien Hovli care home care Hovli Bergheim Oksenøya centre centre Oksenøya Project name Project Customer Nesodden municipality Bærum municipality Bærum municipality Steinkjerbygg KF Steinkjerbygg Steinkjerbygg KF Steinkjerbygg KF Steinkjerbygg Halden municipality Halden municipality Søndre Land Søndre municipality Bærum municipality NEW GREEN BUILDINGS GREEN NEW 18 19 7.6 6.3 973 13.6 13.6 34.2 86.5 165.5

GHG emissions avoided ------

74 144 74 Energy pro- Energy annually, duced in kWh

16 571 19 910 47 347 89 933 89 35 850 35 35 906 35 361 461 361 50 045 227 500 227 2 560 585 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually 2 1134 1100 2715 5851 2098 2640 9200 8300 6500 10130 Heated Heated in m area 71% 91% 37% 23% 28% 95% 42% 45% 94% 100% KBN financing 153 100 153 44 200 28 000 94 000 126 800 147 000 147 109 000 526 000 526 356 000 356 250 000 Total cost cost Total (1000 NOK) - 25 572 25 000 67 000 67 47 000 47 62 000 20 000 144 000 100 000 250 000 500 000 Outstand ing green loan (1000 NOK) 25 900 25 000 32 000 67 000 67 47 000 47 62 000 144 000 100 000 250 000 500 000 Disbursed loan green (1000 NOK) public library, a cultural venue and a sports hall. venue a cultural public library, greenhouse 30% less least at generate to Structure energy 40% less consume and to gas emissions building. reference than a standard hall football multi-use sports hall and Combined LED lighting system outdoor heating, with district surface. artificial grass and granule-free with an environmentally centre A knowledge fjord- uses solar panels and friendly vision that in used extensively Timber based heating/cooling. process. construction such as solar panels and geothermal wells will be geothermal wells such as solar panels and with the will comply emphasised, and the building standard. passive-house municipal with co-located health centre New waterborne building with Energy-efficient services. an air-to- by provided room every in almost heating pump. heat water the passive-house building built to administration A new with in timber friendly façade Environmentally standard. of meet a significant proportion will solar panels that lighting and electric car charging needed for the energy with a compared requirement energy points. 50% lower building. reference standard the passive-house school building built to New super 400 pupils. The for dimensioned standard timber and glulam. made of mass largely structure usage 25% material from gas emissions Greenhouse building. reference with a standard compared lower to the passive- nursing home built energy-efficient New, heating/cooling. with fjord-based house standard, sq.m.) pool (5,600 swimming of existing Upgrading in building will, sq.m.). The (2,700 and extension demand in energy reduction an estimated have total, project. a reference to compared percent of 35 ten and meeting places bank premises, Library, timber with building in mass apartments. Iconic pumpvia a heat water and hot underfloor heating of heat. as the source wells with energy as a as well 540 pupils, School dimensioned for Description three having from school will be expanded The for space with forms, four to in each year forms solutions friendly Environmentally pupils. 728 - 2018 2018 2019 2019 2019 2019 2019 2020 2020 2020 Com pletion - 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment Flatåshallen Sagastad centre knowledge and apartment complex elementarySkaun school and cultural venue Ulvik nursing home Østfoldbadet pool swimming and outdoor complex swimming Combined bank, library New Steikjner Steikjner New elementary school with sports hall Kveldrov health Kveldrov centre administration New building, booth weighbridge access and vehicle Renovating Renovating Slemdal school Project name Project Customer Eid Industrihus KF Eid Industrihus Flatås idrettslag Flatås Skaun municipality Skaun Nord-Odal municipality Østfoldbadet AS Østfoldbadet Ulvik council Steinkjerbygg KF Steinkjerbygg Agder Renovasjon Renovasjon Agder IKS Kvæfjord Kvæfjord municipality The City of Oslo City The NEW GREEN BUILDINGS GREEN NEW

IMPACT REPORT 2018 / PAGE 16 IMPACT REPORT 2018 / PAGE 17

- 311

-

535 457 282 944 ALTA MUNICIPALITY ALTA TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, ALTA CARE CENTRE, ALTA

SHARE FINANCED WITH GREEN LOAN OUTSTANDING YEAR OF COMPLETION: 2020 YEAR OF COMPLETION: 333

898 of mass timber will be of mass timber will be 3 Illustration: Stein Halvorsen Arkitekter AS Arkitekter Halvorsen Stein Illustration: % e 2 37 ESTIMATED IMPACT IMPACT ESTIMATED (SHARE FINANCED WITH GREEN LOAN) kWh/year avoided, use Energy kWh/year produced, Energy avoided, GHG emissions CO tonnes FINNMARK’S FIRST FINNMARK’S IN CENTRE CARE TIMBER MASS solutions, including energy wells that will that including energy wells solutions, energy total meet 50% of the building’s The centre will make a requirements. good contribution to the sustainable society of the future. When Alta municipality decided to build to build Alta municipality decided When middle of town, a new care centre in the friendly it chose to use environmentally centre consists The care mass timber. units and 108 of 60 sheltered housing nursing home places spread across a total a that calculated It is buildings. of five total of 4,000m required. will help reduce The use of mass timber and mass tim greenhouse gas emissions, ber is manufactured in a more energy- mate and is a renewable way efficient The It is also cheap to manufacture!rial. benefit from modern will building energy

CASE - 5 1.4 60 228 37,7 85.3 62.8 101.7 185.9

GHG emissions avoided ------

73 466 73 Energy pro- Energy annually, duced in kWh - 3 583

13 373 194 161 165 231 99 094 157 955 157 489 271 489 224 450 224 600 046 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually - 2 8572 8682 2095 9650 7800 10591 6800 4400 13898 Heated Heated in m area - 4% 61% 38% 63% 54% 43% 96% 30% 100% KBN financing - 261 362 261 520 100 520 135 000 135 128 000 384 286 475 000 475 390 500 390 350 000 350 360 000 Total cost cost Total (1000 NOK) - - 5 416 54 473 144 793 210 320 219 500 144 800 160 000 360 000 500 000 Outstand ing green loan (1000 NOK) - 5 575 54 473 144 793 210 320 219 500 144 800 160 000 360 000 500 000 Disbursed loan green (1000 NOK) . 2 Renovating a protected centrally located building located centrally a protected Renovating the passive- building to a new and constructing school's capacity will be The house standard. 870. 480 pupils to from expanded housing units, a day sheltered of 72 Construction home as a base for as well and a café, centre care timber will be in mass Structure services. care with and will comply concrete and low-carbon by provided Heating standard. the passive-house heating. district Residential care centre with 132 institutional places, places, with 132 institutional centre care Residential also have will area The and a café. centre care a day transitional housing units and two sheltered ten a to buildings will be connected homes. The the and built to system and cooling heating district standard. passive-house forms parallel elementary school with four A new as will be BREEAM-NOR certified that in each year building will be built with minimal Good". The "Very the municipality that a measure fuel usage, fossil of CO 83 tonnes will save anticipates New school building for 420 pupils with a sports 420 pupils school building for New timber. pool. Built in mass hall and a swimming pupils built in 740 school dimensioned for New The standard. the passive-house to timber mass network heating the district to school is connected heating. and uses waterborne pupils. Mass 350 for space have school will The the passive-house built to timber structure, planned. BREEAM-NOR certification standard. 420 pupils with a sports for school with space New timber. hall built in mass 800 pupils elementary school dimensioned for New and steel recycled concrete, built in low-carbon in the facade. Solar cells wood. sustainable Description the passive-house to hall constructed sports New heat based on a seawater system Heating standard. pump and solar collectors. - 2018 2018 2019 2019 2019 2019 2019 2019 2020 2020 Com pletion - 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment Sheltered housing Sheltered units, Edvard Griegs vei Renovating and Renovating Hasle extending school Lindelia residential Lindelia residential centre care Bekkestua elementary school Bergerbakken Bergerbakken school with sports hall elementary Levre school pool Lade school with sports hall school and Ydalir nursery Idrettshall i Idrettshall Lystlunden school Flesberg with sports hall and swimming Project name Project Customer Oppegård municipality Oslo kommune Bærum kommune Bærum municipality municipality municipality Bærum Elverum Elverum municipality Jevnaker Trondheim Trondheim municipality municipality Horten Horten municipality Flesberg NEW GREEN BUILDINGS GREEN NEW

IMPACT REPORT 2018 / PAGE 18 IMPACT REPORT 2018 / PAGE 19 15 1.5 311 74.9 69.7 23.6 29.4 0.35 141.8 45.53 84.68 432.51

GHG emissions avoided ------

76 186 76 538 611 538 120 369 535 457 Energy pro- Energy annually, duced in kWh 909 4 019

197 191 197 77 275 62 075 119 827 39 508 39 107 184 107 222 839 252 666 252 599 586 599 282 944 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually 2 854 3174 1750 1750 1200 6374 5650 4800 16863 10750 10300 18 559 Heated Heated in m area 57% 27% 37% 87% 85% 38% 39% 98% 34% 66% 94% 60% KBN financing 34 700 27 000 27 84 003 62 000 122 600 128 800 319 500 368 500 755 000 755 367 000 367 898 000 898 230 000 Total cost cost Total (1000 NOK) - 72 717 72 25 412 29 363 88 288 314 197 70 346 70 20 945 49 790 49 333 917 99 000 243 004 243 455 000 Outstand ing green loan (1000 NOK) 74 471 71 355 21 300 89 784 89 49 790 49 26 000 99 000 30 000 319 500 245 856 245 336 000 455 000 Disbursed loan green (1000 NOK) The school has been dimensioned for school has The timber structure, Mass pupils. 700 approximately the plus-house standard. built to 168 timber structure. with a mass centre Care will meet 50% of heating Ground-source places. requirements. energy housing building with 16 sheltered timber Mass used. heating units. District Description sports hall, school with a multi-use A new timber. pupils. Built in mass 195 for dimensioned mass timber and heated using a heat pump. using a heat timber and heated mass 450 pupils with a sports school building for New passive-house built to timber structure hall. Mass Good". as "Very certified BREEAM-NOR standard. as a public as well 315 pupils School building for passive- built to timber structure, Mass library. house standard. timber with housing units built in mass sheltered Eleven pumps using heat Heated facilities and garages. staff network. heating district a fjord-based to connected New school building with space for 900 pupils for school building with space New timber as a multi-use sports hall. Mass as well standard. the passive-house built to structure, Good". as "Very BREEAM-NOR certified timber dimensioned school building in mass A new 60 pupils.for 1,200 pupils. school for upper secondary A new made out of timber. and roof walls Structure, as building will be BREEAM-NOR certified The definition FutureBuilt's and will satisfy "Outstanding" the use of solar building through of an energy-plus among other measures. panels on the roof, timber in mass school secondary lower A new school replaces pupils. The 720 dimensioned for schools and is secondary lower previous four Good". as "Very BREEAM-NOR certified the through Flå nursery has been extended in sections. Constructed new of four construction - 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2020 2020 Com pletion - 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment with sports hall centre Alta care "Otta brygge": peopleHomes for with disabilities Kvænangen Kvænangen lower elementary and schoolsecondary with sports hall upper New school secondary Project name Project New Kolvereid Kolvereid New school housing Sheltered units Flå nursery Hoppern New school with sports hall New Horten upper Horten New school secondary lower Kongsvinger school secondary "School of the future" school Leangen Customer Alta municipality Sel municipality Tvedestrand Tvedestrand municipality Kvænangen Kvænangen municipality NEW GREEN BUILDINGS GREEN NEW municipality Eid municipality Nærøy Nærøy Flå municipality municipality Moss Kongsvinger Kongsvinger municipality municipality county Vestfold authority Lyngen Lyngen Sør-Odal municipality 4 72 1.6 141 71.1 13.4 42.7 137.8 133.2

GHG emissions avoided ------

21 609 106 350 Energy pro- Energy annually, duced in kWh 4 247

10 335 35 384 35 112 244 264 811 189 474 189 329 013 362 510 187 034 187 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually 2 132 838 1132 5574 8736 3770 8036 12000 10300 Heated Heated in m area 81% 16% 97% 33% 95% 95% 39% 69% 96% KBN financing 3 500 58 300 30 000 297 625 297 212 000 145 000 522 800 522 520 000 520 350 000 350 Total cost cost Total (1000 NOK) - 2 417 56 343 48 220 10 000 137 100 137 205 263 202 244 202 284 000 500 000 Outstand ing green loan (1000 NOK) 2 500 49 638 10 000 211 902 137 100 137 58 000 210 300 284 000 500 000 Disbursed loan green (1000 NOK) New elementary school constructed to the passive- the to elementary school constructed New Heating 580 pupils. for space with house standard school has pumps. The based on geothermal heat school garden. and its own areas lots of outdoor the passive- homes built to municipal Two in the enrolled students by house standard Upper Åfjord at program building construction in this School, giving the pupils training Secondary technique. construction energy sources. sources. energy the passive- nursery built to 200-place A new to connected building will be The house standard. and will use district waste for facility vacuum a new solar panels. as its own as well and cooling heating off and drop to it easy make It will be designed to and bike. metro by children collect 654 for elementary school dimensioned A new will permit expansion that structure pupils. Flexible with the passive- building will comply The in future. for rating an 'A' and will have house standard efficiency. energy sports hall. 800 pupils and a multi-use School for the passive-house built to timber structure, Mass standard. 400 pupils. school for secondary lower New cladding in building with outer Energy-efficient geothermal demand met by 90% of heat ore-pine. heating. housing with sheltered Apartment complex in mass units and municipal homes constructed cladding. The timber and clad in locally produced and rail municipality emphasised local materials using excess building is heated The transportation. smelting plant. a nearby from heat 800 pupils. Mass school for upper secondary New in the building, including timber used throughout "low- Energy-efficient, load-bearing structures. using and cooled Heated system. ventilation tech" 32 geothermal wells. Description low energy building built with office New Heating materials. and low-emission consumption as water pumps with air and heat need met by - 2017 2017 2017 2017 2017 2018 2018 2018 2018 Com pletion - 2017 2017 2017 2017 2017 2018 2018 2018 2018 Last disburse ment Passive house Passive upper for project school secondary pupils secondary school secondary school Granly Rosenvik public Rosenvik housing complex upperRomsdal Ytre Enebakk Ytre school Hommelvik lower school secondary New Holmen New school with sports hall New harbour New building in Molde Nansenparken nursery Project name Project Customer Åfjord municipality Åfjord Horten Horten municipality Møre and Romsdal Møre Authority County municipality Orkdal Orkdal municipality Malvik municipality Enebakk The City of Oslo The Bærum municipality Molde og Romsdal Molde og Romsdal Molde IKS/ Havn KF Havnevesen NEW GREEN BUILDINGS GREEN NEW

IMPACT REPORT 2018 / PAGE 20 IMPACT REPORT 2018 / PAGE 21

60 - -

- 157 955 157 SCHOOL

. 2 Foto: Illustrasjon, iStock Illustrasjon, Foto: TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, BÆRUM MUNICIPALITY

BEKKESTUA ELEMENTARY, BEKKESTUA YEAR OF COMPLETION: 2019 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING

350 220 % e , it set a requirement in the it set a requirement in the , 2 2 63 ESTIMATED IMPACT IMPACT ESTIMATED (SHARE FINANCED WITH GREEN LOAN) kWh/year use avoided, Energy avoided, GHG emissions CO tonnes FOSSIL-FREE FOSSIL-FREE SITE BUILDING will be BREEAM-NOR certified. This will be BREEAM-NOR certified. project is a good example of the munic of procurement ipality using its power to speed up the shift to environmentally friendly solutions. When Bærum the to build decided largest elementary school, municipality’s a total floor area of which will have 10,000m to be site building tender process for the tradi This means that fossil-fuel-free. as machines will have tional diesel-driven far as possible to be replaced by electric run that machines and machines on heaters and dehumid and that biofuels, to ifiers run on district will have heating, This or bio energy. hydrogen electricity, a to deliver is enabling the municipality is 90-95% fossil- site that building the greenhousefuel-free and has cut gas emissions from the construction process 83 tonnes of CO by an estimated itself is energy efficient and The building

CASE 7.3 142 12.9 27.2 23.9 56.3 60.3 113.6 231.3 395.8 892.6

GHG emissions avoided ------

42 883 Energy pro- Energy annually, duced in kWh

19 197 71 607 33 952 62 809 148 183 115 900 373 782 373 298 828 608 674 1 041 521 1 041 2 348 970 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually 2 4121 1220 1488 1200 5532 5056 7200 13071 5500 2000 12000 Heated Heated in m area 18% 61% 10% 92% 85% 85% 59% 95% 95% 68% 20% KBN financing 77 600 47 800 47 63 300 63 69 900 69 45 000 138 000 109 200 277 000 277 235 000 235 226 000 540 700 Total cost cost Total (1000 NOK) - 12 712 14 153 27 388 27 73 720 73 37 034 37 40 478 46 640 192 307 192 263 150 263 370 274 100 000 Outstand ing green loan (1000 NOK) 51 100 16 700 15 000 77 600 43 700 46 200 30 000 192 307 192 459 505 459 277 000 277 100 000 Disbursed loan green (1000 NOK) heating. Free cooling for the data centre and centre the data for cooling Free heating. from seawater buildings is based on using cold Byfjorden. the passive-house Nursery building built to building The 100 children. for with space standard wells. using energy and cooled is heated artificial grass Multi-use sports hall and year-round needs supplied of the heating with 97% pitch, aluminium Alcoa the nearby from heat excess by building. Energy-efficient factory. Norway (FutureBuilt's definition). Supplied with (FutureBuilt's Norway and wells energy from energy 100% local renewable solar panels. integrated swimming energy-efficient most One of Norway's is consumption energy pools. 80% of the facility's geothermal from energy local renewable met by panels and solar thermal panels. pumps, solar heat be to in Norway health centre largest The building includes The timber. in mass constructed and a learning, mastery a 108-bed nursing home, the elderly for centre a day centre, rehabilitation kitchen. and a central in onestations and ambulance of fire Co-location building. energy-efficient school secondary elementary and lower A new 400 pupils. Meets the passive-house for with space standard. the passive-house 500 pupils built to School for standard. cladding in timber, Elementary school with outer The school standard. the passive-house satisfies 200 pupils. for has space and building materials Built using climate-friendly standard. the passive-house satisfies buildings, of existing buildings and renovation New heat buildings. The including some protected the from recovered heat demand is met by district as by as well centre municipality's data Description a built to 100 children, for space Nursery with is the first The building in timber. extent significant in the public sector building built by plus-energy - 2017 2017 2017 2015 2015 2016 2016 2016 2014 2014 2014 Com pletion - 2015 2015 2016 2016 2016 2014 2014 2014 2014 2014 2014 Last disburse ment Alcoa Alcoa park environmental Town Hall Quarter Town nursery Ødegården Fagerholt school Fagerholt school Torridal multi-use Hellemyr sports hall Emergency Emergency building services Åsly school New Holmen swimming Holmen swimming pool Ullerud health centre Kistefossdammen Kistefossdammen nursery Project name Project Customer Farsund Farsund municipality Oppegård municipality Kristiansand Kristiansand municipality Kristiansand municipality Kristiansand Kristiansand municipality Kristiansand Kristiansand municipality municipality Fosen Indre municipality Indre Fosen Fosen Indre Frogn municipality Frogn Asker municipality Asker Asker municipality Asker NEW GREEN BUILDINGS GREEN NEW

IMPACT REPORT 2018 / PAGE 22 IMPACT REPORT 2018 / PAGE 23 8 7.3 8.8 0.5 15.2 13.4 399 92.2 40.2 116.3 20.0

GHG emissions avoided ------

Energy pro- Energy annually, duced in kWh

2 066 19 107 23 120 35 239 53 687 53 39 988 39 22 003 242 521 242 105 692 305 945 1 049 121 1 049 Estimated annual impact, KBNs share annual impact, Estimated Energy avoided annually 2 755 1261 920 420 1082 1050 6454 7300 6000 12400 15000 Heated Heated in m area 4% 32% 82% 82% 47% 38% 42% 54% 43% 70% 50% KBN financing 31 800 31 000 44 270 28 200 38 200 26 000 241 200 241 254 500 370 000 370 596 000 596 203 000 203 Total cost cost Total (1000 NOK) - 8 921 8 475 21 315 19 233 14 657 13 240 14 648 120 419 418 528 418 138 599 304 300 Outstand ing green loan (1000 NOK) 25 216 18 799 15 963 16 396 21 700 10 000 26 000 248 019 248 536 680 536 160 000 358 000 358 Disbursed loan green (1000 NOK) Nursery building built to the passive-house the passive-house Nursery building built to building The 36 children. for with space standard distributed using geothermal energy is heated heating. under-floor through facility and bathing pool swimming Low-energy various public sports hall, and centre, with a fitness heating building uses district The health services. ventilation. from recovery and heat with functional people housing for Sheltered standard, the passive-house impairments. Built to heating. using district heated the passive-house built to building Administration sorting and with a new in connection standard in part with recycled Constructed facility. recycling building materials. building with as a low-energy Nursery constructed using deep Heated solar panels on parts of the roof. pump. heat holes with a water-to-water bore water buildings a number of old school replaces new The significantly. consumption energy and reduces the passive-house Elementary school built to timber 405 pupils. Part for with space standard construction. Description the home built to nursing existing to Extension 32 for Accommodation standard. passive-house heating. source Ground residents. solar captors. Low-carbon concrete in foundations in foundations concrete Low-carbon solar captors. and floor. the timber to mass built in 90 children Nursery for low- using Building heated standard. passive-house well as underfloor heating, waterborne temperature geothermal wells. to pump connected a heat as by the to be constructed to school in Norway First 560 pupils. Heat for Space standard. passive-house system. heating district a mini demand met by Passive-house nursery for 100 children. The The 100 children. nursery for Passive-house for terms of energy building is self-sufficient in solar panels and use of thanks to some of the year - 2011 2012 2012 2012 2015 2013 2013 2014 2014 2010 2010 Com pletion - 2011 2011 2011 2011 2012 2012 2012 2013 2013 2014 2014 Last disburse ment Kirkenes Kirkenes elementary and secondary lower school Hokksund elementary school Administration Administration building Sletteheia Øvre nursery Aquarama water water Aquarama park Greverudåsen housing sheltered New wing Høyås Høyås wing New nursing home nursery Augestad Project name Project Marienlyst school Marienlyst Møllestua nurseryMøllestua Fjell nursery Customer Øvre Eiker Eiker Øvre municipality municipality Kristiansand Kristiansand municipality Sør-Varanger avfallsforedling avfallsforedling IKS Oppegård municipality Romerike Kristiansand Kristiansand municipality municipality Oppegård municipality Oppegård NEW GREEN BUILDINGS GREEN NEW Drammen Drammen municipality Drammen Drammen municipality municipality Kristiansand Kristiansand - By 2030, increase sub increase 2030, By Ensure access to affordable, affordable, to access Ensure and modern sustainable reliable, energy 7.2 Target of renewable the share stantially mix global energy in the energy UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN ENERGY RENEWABLE TO e 2 554 036

MWh CO tonnes NUMBER OF PROJECTS FINANCED, 2018 40 855 107 510 107 3 NUMBER OF PROJECTS FINANCED, TOTAL 8 *In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish investors bond green bonds. Hence, with green financed was portfolio Loans Green outstanding of KBN’s 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. of impacts should depart from their share calculate the other. to one year from vary KBN GREEN LOANS TO NEW RENEWABLE ENERGY NEW RENEWABLE TO KBN GREEN LOANS in 1000 NOK outstanding, Total GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED produced Energy avoided GHG emissions

and substitutes electricity and substitutes 1

PROJECTS RENEWABLE ENERGY RENEWABLE assumption that produced energy is energy produced that assumption emission-free otherwise stated. the grid, unless from heating systems, we allow mineral-based mineral-based allow we systems, heating security reasons. solutions for back-up based on the are Impact estimates replace energy sources that produce produce that sources energy replace be must projects gases. The greenhouse district For in their operations. fossil-free the ground, the sea, biomaterials and the sea, biomaterials the ground, carriers, as well energy other renewable to thereby Such investments as waste. KBN finances investments that reap the that investments KBN finances of the sun, the wind, potential energy 1. - In scopes 1 and 2 as defined by the Greenhouse Gas Protocol, Protocol, Gas by the Greenhouse 1 and 2 as defined 1. - In scopes this report. by covered scopes the emission which are

IMPACT REPORT 2018 / PAGE 24 IMPACT REPORT 2018 / PAGE 25 - 5 17 112 40 484 1 706 17 496 20 995 Estimated an Estimated nual reduction in greenhouse gas emissions 11 912 44 384 104 619 295 000 295 1 272 727 4 489 927 4 489 46 041 667 46 041 55 249 828 55 249 Expected annual energy production, kWh - - - 12 47 548 303 2 705 Estimated impact, KBN share Estimated Installed kW capacity, 71% 61% 54% 54% 39.71% 52.22% 62.08% 98.33 % Proportion Proportion by financed loan green 2 800 6 600 12 900 17 000 24 200 24 22 000 546 000 240 000 240 Total cost Total - 13 118 2 753 6 978 6 750 11 488 4 000 170 000 170 338 948 Green loan Green outstand ing (1000 NOK) 7 385 7 500 2 800 4 000 14 055 12 500 170 000 170 367 200 367 Total Total disbursed loan green (1000 NOK)

2 of 2 solar panel plant on its 2 as adaptations to enable 15% of biofuel to come from chippings from come enable 15% of biofuel to to as adaptations reception waste a nearby timber from waste from produced facility. little- for on bio pellets. Replacement plant based heating A new used gas boiler. households from based on biowaste biogas producing for Facility primarily product biogas The manure. as as well and industry trucks and other refuse busses, used by fuels fossil replaces heating. be used for but can also secondarily vehicles, water fjord based on low-temperature system heating District than 100,000m more supplies that exchangers and heat Nordfjordeid. buildings in central waste sludge, based on sewage biogas producing A plant for heat steam Biofuel plant for waste. and other organic food and timber waste. bio residue based on de-watered production facility. recycling waste of a new roof and Solar panels on walls 1,200m through energy own its produces that centre A recycling is power excess wind turbines. The micro of solar panels and four used when required. and can be in batteries stored with a 200m facility transfer Waste electric machinery needs replacing, the facility's When façade. loaders will be purchased. Description plant. heating district the capacity of a biofuel-based Increasing well as a boiler, and refurbishing system the feeding Improving - 2017 2017 2017 2017 2018 2018 2016 2016 Com pletion - 2017 2017 2017 2018 2018 2018 2016 2016 Last disburse ment Sandbakken Sandbakken centre recycling waste Orkdal facility transfer district heating district biogas Grødaland plant recycling Frøya centre New energy plant energy New area City Hall for biogas: "The Greve magic factory" Fjord-based Sorting facility for for Sorting facility for timber waste bio energy Project name Project Customer Customer HAMOS IKS Forvaltning HAMOS IKS Forvlatning municipality Hvaler IVAR IKS IVAR Eid Fjordvarme KF Eid Fjordvarme Tønsberg Tønsberg municipality Time municipality Time Dyrøy energi AS energi Dyrøy RENEWABLE ENERGY RENEWABLE PROJECTS ENERGY EFFICIENCY ENERGY

- 17 496 46 041 667 46 041 GREVE BIOGAS: Photo: Greve Biogass Greve Photo: TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, “THE MAGIC FACTORY”, FACTORY”, “THE MAGIC

TØNSBERG MUNICIPALITY TØNSBERG YEAR OF COMPLETION: 2017 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 170

240 % e 2 71 ESTIMATED IMPACT IMPACT ESTIMATED (SHARE FINANCED WITH GREEN LOAN) kWh/year produced, Energy avoided, GHG emissions CO tonnes FOOD WASTE AND WASTE FOOD BEING MANURE FUEL INTO TURNED the factory is a good step in the global energy. renewable shift towards “The magic factory” in Vestfold is at the is at Vestfold “The magic factory” in production in cutting edge of bio energy The facility conjures up biogas Norway. litres of diesel to 6.5 million equivalent and 65 food waste from 60 000 tonnes of also produc while 000 tonnes of manure, This bio-fertiliser. ing 110 000 tonnes of fertiliserhas helped cut synthetic sales in a year. by 2 500 tonnes Vestfold The facility has made it possible for the refuse trucks to run and buses on area’s biogas Greve and manure. food waste is helping to reduce greenhouse gas is being Value emissions and air pollution. and as a resource, waste by using created

CASE

IMPACT REPORT 2018 / PAGE 26 IMPACT REPORT 2018 / PAGE 27 - - - By 2030, upgrade infra upgrade 2030, By By 2030, double the 2030, By with all countries taking action inwith all countries with their respective accordance capabilities Ensure access to affordable, affordable, to access Ensure and modern sustainable reliable, energy 7.3 Target in of improvement global rate efficiency energy pro infrastructure, Build resilient industrialization sustainable mote innovation and foster 9.4 Target industries and retrofit structure with them sustainable, make to efficiency resource-use increased adoption of clean and and greater sound technol environmentally processes, ogies and industrial UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN EFFICIENCY ENERGY TO e 2 367 321 367

MWh CO tonnes NUMBER OF PROJECTS FINANCED, 2018 9 206 24 233 24 8 NUMBER OF PROJECTS FINANCED, TOTAL 21

*In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish investors bond green bonds. Hence, with green financed was portfolio Loans Green outstanding of KBN’s 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. of impacts should depart from their share calculate the other. to one year from vary KBN GREEN LOANS TO ENERGY EFFICIENCY ENERGY TO KBN GREEN LOANS in 1000 NOK outstanding, Total GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED savings Energy avoided GHG emissions

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PROJECTS ENERGY EFFICIENCY ENERGY energy consumption before the invest before consumption energy use after energy the estimated ment, to investment. energy sources and other unsustainable sources energy solutions. energy comparing by Impact is calculated energy consumption by at least 25 per least at by consumption energy prior to the situation to compared cent out fossil phase and/or the investment ing infrastructure is an important step is an important step ing infrastructure society. a low-carbon to on the way reduce that investments KBN finances Improving the energy efficiency efficiency of the energy Improving buildings and energy-demand existing - - - 19 97 24 48 30 2.6 212 501 328 944 ) 2 Estimated an Estimated nual reduction in greenhouse gas emissions of(tonnes CO - - 6 745 79 657 79 62 286 126 157 50 000 255 667 558 789 864 000 1 319 650 2 485 216 Reduction inReduction annual energy requirements (khW) - - - - 766 3 120 5 018 8 401 2 776 3 300 12 786 10 286 Estimated impact, KBN share impact, KBN share Estimated Heated area surface included in the project (KBN) 91% 73% 78% 95% 68% 68% 98% 46% 80% 80% 80% 100% 100% Proportion Proportion by financed loan green 150 600 1 813 1 500 5 750 7 300 2 000 2 000 12 477 4 000 15 000 24 700 24 225 000 Total cost Total - 143 600 1 195 1 235 1 593 1 600 3 325 9 056 3 900 4 000 14 750 22 500 175 000 175 Green loan Green outstand ing (1000 NOK) 150 600 1 230 1 620 1 300 1 600 9 056 3 500 4 000 4 000 15 000 22 500 175 000 175 Total Total disbursed loan green (1000 NOK) buildings. heat heating, waterborne includes project that efficiency Energy municipal administration lighting in Siratun's pumps and new building. of Surnadal's municipal efficiency the energy Increasing building, elementary school and other municipal administration buildings. lights with LED fittings. street Replacing Introduction of district heating and new technology for technology and new heating of district Introduction a will produce improvements These management. temperature 70%. of around consumption in energy reduction will reduce that management system and LED technology New 25%. over by consumption energy of oil replacement through improvements efficiency Energy operational and a central heating with geothermal heating system. control reuses heat pump that heating/cooling efficient and more A new system. the cooling from municipal at will be implemented measures Energy-saving project (EPC). The contract performance buildings as an energy of varying measures implementing 60 energy-saving involves purpose-built buildings in the municipality. across sizes lighting with LED lighting. road traditional Replacing lighting. energy-efficient with more lighting replaced Old street consumption. energy will reduce that system control New to LED Old light fittings outside municipal buildings upgraded lighting. in with bio heating replaced system oil heating Traditional Description - 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2019 2019 2020 Comle tion - 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment Energy efficiency Energy for measures municipal buildings LED lighting LED outdoor LED outdoor lighting Bio heating energy Siratun project efficiency energy efficiency energy lighting of road lighting LED street Inn Trøndelag and healthcare centre emergency cooling pump at cooling Kulturhuset Energy-saving 11 across measures municipal buildings the Improving Replacing street street Replacing lighting for solution Energy new Flatanger's nursing and caring centre Heating/ Renovation of Renovation City Hall Gjøvik Project name Project Customer Customer municipality municipality Surnadal Utsira municipality Utsira Surnadal Rømskog Rømskog municipality Horten Horten municipality Nesodden municipality KF Steinkjerbygg Bærum municipality Rendalen municipality Surnadal municipality Flatanger municipality Sel municipality Gjøvik Rådhus AS Gjøvik ENERGY EFFICIENCY ENERGY

IMPACT REPORT 2018 / PAGE 28 IMPACT REPORT 2018 / PAGE 29

- - 944 - - 2 485 216 CITY HALL, - Illustration: Kontur AS Kontur Illustration: GJØVIK RÅDHUS AS GJØVIK TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, RENOVATION OF GJØVIK GJØVIK OF RENOVATION

175 YEAR OF COMPLETION: 2018 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 225

% e 2 78 ESTIMATED IMPACT IMPACT ESTIMATED (SHARE FINANCED WITH GREEN LOAN) kWh/year use avoided, Energy avoided, GHG emissions CO tonnes THE ENERGY SOLU ENERGY THE TOMOR OF TIONS OLD AN FOR ROW CITY HALL City Hall will meet the requirements of effi tomorrow in terms of functionality, and is an exam ciency and adaptations, in can be renovated a building ple of how beneficial manner. an environmentally When Gjøvik Rådhus AS realised the AS Rådhus When Gjøvik and design indoor climate City Hall’s it decided on a needed improving, of renovation technical comprehensive It set ambitious targets the building. energy con with regard to quality, The project is sumption and recycling. the building subject to targets to ensure “Very is BREEAM-NOR certified as The new solution replaces oil Good”. and electric boilers with district heating. technology will help Central operating and air quality and temperatures improve The will reduce energy consumption.

CASE PROJECTS LOW-CARBON TRANSPORTATION LOW-CARBON - - 56 521 539 696 1 417 2 712 1 060 ) 2 Estimated an Estimated nual reduction in greenhouse gas emissions of(tonnes CO 12 148 551 7 136 133 1 418 508 1 418 1 832 428 1 370 949 1 370 3 727 949 3 727 2 790 000 2 790 Reduction inReduction annual energy requirements (khW) - 15 815 18 284 29 989 33 890 20 463 156 103 28 000 Estimated impact, KBN share impact, KBN share Estimated Heated area surface included in the project (KBN) 91% 91% 77% 93% 59% 68% 45% 90% Proportion Proportion by financed loan green 480 5 000 4 400 21 000 97 300 97 23 600 35 600 35 20 500 Total cost Total - 448 4 565 19 167 3 390 21 240 24 130 24 12 089 43 397 Green loan Green outstand ing (1000 NOK) 480 5 000 4 000 12 780 21 000 23 600 25 400 54 500 Total Total disbursed loan green (1000 NOK) Increasing the energy efficiency of 18 buildings through an through of 18 buildings efficiency the energy Increasing fuels Phasing out the use of fossil contract. performance energy consumption, upgrading energy buildings, monitoring in five recovery. heat and water-to-air ventilation a number of innovative involving project efficiency Energy an ice for ice producing from heat waste solutions, such as using usage fuel phasing out fossil pool and a swimming heat rink to buildings. several from lights with street of the municipality's traditional 10% Replacing LED fittings. of a number of long-use efficiency the energy Improving of operation stable more solutions will ensure buildings. New equipment. technical of nine municipal buildings and efficiency the energy Improving of energy a range involves project plant. The treatment a water the installation such as additional insulation, measures, efficiency and system monitoring pumps and setting up an energy of heat system. control operational a central fuels in a fossil and phasing out of efficiency energy Improved 98%, by reduced oil consumption Heating municipal property. gas emissions. in climate reduction a significant representing fuel fossil and phasing out improvements efficiency Energy oil reduced of heating usage in municipal buildings. Consumption gas emissions. reducing greenhouse 98%, significantly by the municipality's connect will project that efficiency Energy system. control operational a central purpose-built buildings to Description - 2017 2015 2018 2016 2016 2016 2016 2014 Comle tion - 2017 2015 2016 2016 2016 2016 2014 2014 Last disburse ment Central operational operational Central system control Improving energy energy Improving through efficiency an EPC contract efficiency Energy and improvements phasing out of oil heating Improving energy energy Improving with efficiency an EPC contract efficiency Energy improvements (EPC) in buildings and a water plant treatment Energy efficiency Energy public for project buildings lighting LED street EPC project Project name Project Customer Customer municipality Oppegård municipality Kristiansand municipality Indre Fosen Fosen Indre Spydeberg Spydeberg municipality Jevnaker Jevnaker municipality Bardu municipality Bardu municipality municipality Asker Sandefjord Sandefjord ENERGY EFFICIENCY ENERGY

IMPACT REPORT 2018 / PAGE 30 IMPACT REPORT 2018 / PAGE 31 ------By 2030, provide provide 2030, By By 2030, upgrade infra upgrade 2030, By By 2030, reduce the reduce 2030, By Develop quality, reliable, reliable, quality, Develop environmentally sound technol environmentally processes, ogies and industrial taking action inwith all countries with their respective accordance capabilities resil safe, cities inclusive, Make ient and sustainable 11.2 Target acces affordable, safe, to access transport sible and sustainable road all, improving for systems public expanding notably by safety, with special attention transport, the needs of those in vulner to children, women, able situations, persons with disabilities and older persons 11.6 Target environmental per capita adverse pay impact of cities, including by air quality to ing special attention and municipal and other waste management Build resilient infrastructure, pro infrastructure, Build resilient industrialization sustainable mote innovation and foster 9.1 Target infra and resilient sustainable and including regional structure, to infrastructure, transborder development support economic with a focus and human well-being, equitable access and on affordable all for 9.4 Target industries and retrofit structure with them sustainable, make to efficiency resource-use increased adoption of clean and and greater UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN LOW-CARBON TO TRANSPORTATION

Photo: Paul Sigve e 2

5 389 633 5 389 tonnes CO tonnes NUMBER OF PROJECTS FINANCED, 2018 9 206 8 NUMBER OF PROJECTS FINANCED, TOTAL 18 *In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish investors bond green bonds. Hence, with green financed was portfolio Loans Green outstanding of KBN’s 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. of impacts should depart from their share calculate the other. to one year from vary KBN GREEN LOANS TO NEW LOW-CARBON TRANSPORTATION NEW LOW-CARBON TO KBN GREEN LOANS in 1000 NOK outstanding, Total GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED emissions Reduced/avoided

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PROJECTS LOW-CARBON TRANSPORTATION LOW-CARBON land and on water, as well as infrastruc as well land and on water, and bicycles. pedestrians for ture sector must be reduced dramatically dramatically be reduced must sector KBN finances years. few the next over on projects transportation fossil-free For Norway to meet its climate com meet its climate to Norway For the transport from mitments, emissions ------26 331 - 207 Estimated im Estimated pact, KBN share annual Estimated in green reduction house gas emissions (tonnes) 18% 91% - 57% 57% 27% 79% 58% 62% 29% 80% 100% Proportion fi Proportion green by nanced loan 400 8 158 1 500 1 400 2 400 9 600 11 500 18 500 26 833 10 000 43 000 Total cost (1000 cost Total NOK9 - 315 640 800 1 367 7 130 2 378 7 644 3 400 15 333 10 000 25 000 Green loan out Green (1000 standing NOK) 320 640 800 1 367 7 869 2 642 7 300 3 500 15 333 10 000 25 000 Total disbursed Total (1000 NOK)

2 is estimated that these will be used by 10,000 people. 10,000 used by these will be that is estimated points. 32 charging installing use of electric cars by Facilitating municipal employees, for of 88 electric bikes Procurement reducing car usage. significantly potentially Description houses. It holiday with many in area points of charging Installation Purchasing of 24 biogas cars for the municipal car fleet. CO the municipal car fleet. biogas cars for of 24 Purchasing project. station as part of the filling impact is recognised for municipal and for liquefied biogas (LBG) station filling Energy and waste food from biogas is produced The vehicles. private biogas plant. Greve sludge at sewage Installation of two shore-side power systems with six quay posts. posts. with six quay systems power shore-side of two Installation green to fuels using fossil from move to vessels docked help Will in local pollution. Reduction energy. by for municipal employees vehicles Expanding the fleet of electric and emissions reduce car fleet helps electric cars. The 35 around mileage per car is estimated average The up parking spaces. frees km/year. be 15,000 to in central path and cycle a foot into of roadway Conversion to for people it easier to make and car traffic reduce Surnadal to will be school transport Free school and work. to or cycle walk and 500 pupils will use of the footpath, as a consequence reduced day. every the footpath cycling will help promote that path of a 4-4.5km coastal Creation activities. as leisure as well and walking and walk to it safe make that paths and cycle of foot Creation school. A bridge to is also a route that road along a county cycle side. and west lanes on the east cycle connects water over use on four supply for power mobile shore-side Container-based, quays. - 2017 2018 2018 2018 2018 2018 2018 2019 2019 2019 2020 Com pletion - 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment Electric bikes Electric bikes municipalfor employees Charging station station Charging electric cars for station Charging electric cars for Project name Project energy filling energy and gas station operations Shore-side power power Shore-side supply Biogas cars of Construction recreational area area recreational path Coastal and cycle Foot paths Replacing municipal car fleet Svartvatnet: and footpath Shore-side power power Shore-side supply in central an and Stavanger terminal in offshore Risavika Customer Customer Nesodden municipality Nesodden municipality Sel municipality LOW-CARBON TRANSPORTATION LOW-CARBON Horten Horten municipality Harstad havn KF havn Harstad Horten municipality Time municipality Time Nesodden municipality Surnadal kommune municipality Bærum Stavangerregionen Stavangerregionen IKS Havn

IMPACT REPORT 2018 / PAGE 32 IMPACT REPORT 2018 / PAGE 33

- - Photo: Illustration, iStock Illustration, Photo: TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, YEAR OF COMPLETION: 2019 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 15,3 26,8 CENTRAL STAVANGER AND AN CENTRAL STAVANGER SHORE-SIDE POWER SUPPLY IN SUPPLY SHORE-SIDE POWER emissions per year. 7% of the emissions per year. 2 STAVANGERREGIONEN HAVN IKS HAVN STAVANGERREGIONEN % OFFSHORE TERMINAL IN RISAVIKA, OFFSHORE TERMINAL IN RISAVIKA, 57 SHORE-SIDE SHORE-SIDE SIGNIFI POWER REDUCING CANTLY FROM EMISSIONS SHIPPING shore-side power supply systems with a total shore-side power The facilities will help posts. of six quay from using fossil fuels docked ships to move to green by a local power energy delivered measure will also benefit theThe company. and climate! local environment The shipping industry’s activities along the activities along The shipping industry’s for sizeable are responsible coast of Norway greenhouse gas emissions and significant A research local air pollution in port towns. report shore-based that has demonstrated supplies in the 28 largest ports inpower the country save 356 000 would Norway tonnes of CO greenhouse gas emissions produced by the shipping industry are produced by docked IKS is tak Stavangerregionen Havn ships. two approach and building ing a proactive

CASE PROJECTS WASTE MANAGEMENT WASTE - - - - 3 - 573 - 5 753 Estimated im Estimated pact, KBN share annual Estimated in green reduction house gas emissions (tonnes) 31% 81% 19% - 73% 82% 44% 100% Proportion fi Proportion green by nanced loan 1 050 8 700 7 300 8 500 31 855 64 500 5 270 000 5 270 Total cost (1000 cost Total NOK9 - 465 6 175 7 103 5 887 19 916 6 080 5 270 000 5 270 Green loan out Green (1000 standing NOK) 499 7 290 8 509 6 500 6 400 24 650 24 5 270 000 5 270 Total disbursed Total (1000 NOK) emissions and local air and emissions 2 vessels along four public quay fronts. The electricity is generated electricity is generated The fronts. public quay along four vessels in the municipality. wind turbines located installed newly by CO reduce will port electrification The noise. as reducing pollution, as well the school connecting paths and cycle of foot 700m of Creation will that areas residential building to and municipal administration and employees. 200 school children approximately be used by of electric cars and charging for infrastructure to Improvements hall town the points at 14 charging cars, comprising plug-in hybrid in the municipality. other locations points at charging fast and two to plateau mountain connecting of lift service Installation make lift will The station. train Holmestrand leading to underpass within people who live 3,000 for attractive more train by travelling ride of the station. cycle 20 minutes' with replaced service the municipality's home care 29 cars used by electric cars. an efficient and representing service, Electric light rail The in Bergen. service public transport friendly environmentally in 2017. journeys 12.6 million passenger line delivered parking, and bicycle paths and cycle of foot of 530m Creation of electric bikes. procurement lanes and bike improving Description large 44 up to for points supply and charging power Shore-side - 2017 2017 2017 2018 2016 2014 2014 Com pletion - 2017 2017 2016 2016 2014 2014 2014 Last disburse ment Bergen light rail Bergen and cycle Foot paths Mountain lift to Mountain lift to station train theElectric cars for service home care Foot and cycle cycle and Foot paths Electric vehicle points charging in community for Hvaler Electrification Project name Project Customer Customer Oppegård municipality Oppegård municipality AS Ferde municipality Holmestrand Holmestrand Hvaler municipality Hvaler Rømskog Rømskog municipality Båtsfjord Havn KF Havn Båtsfjord LOW-CARBON TRANSPORTATION LOW-CARBON

IMPACT REPORT 2018 / PAGE 34 IMPACT REPORT 2018 / PAGE 35 - - - - By 2020, achieve the achieve 2020, By By 2030, reduce the reduce 2030, By By 2030, substantially 2030, By reduce their release to air, water water air, to their release reduce their minimize to and soil in order on human health impacts adverse and the environment 12.5 Target through generation waste reduce recycling reduction, prevention, and reuse Make cities inclusive, safe, resil safe, cities inclusive, Make ient and sustainable 11.6 Target per capita environmental adverse pay by impact of cities, including air quality to ing special attention waste and municipal and other management consumption sustainable Ensure patterns and production 12.4 Target manage sound environmentally all wastes ment of chemicals and in cycle, their life throughout interna with agreed accordance and significantly tional frameworks, UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN MANAGEMENT WASTE TO tonn 517 287

52 463 NUMBER OF PROJECTS FINANCED, 2018 4 NUMBER OF PROJECTS FINANCED, TOTAL

16

*In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish investors bond green bonds. Hence, with green financed was portfolio Loans Green outstanding of KBN’s 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. of impacts should depart from their share calculate the other. to one year from vary KBN GREEN LOANS TO WASTE MANAGEMENT WASTE TO KBN GREEN LOANS in 1000 NOK outstanding, Total GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED in capacity Increase

PROJECTS WASTE MANAGEMENT WASTE regional context of the project. of context regional the investment should represent best should represent the investment management and within waste practice the consideration into taken -treatment, so that the resources found in waste in waste found the resources so that possible be utilised in the best may loan, a green be eligible for To way. KBN finances investments that ensure ensure that investments KBN finances management of waste, sustainable ------e 2 e 2 Expected annual energy annual energy Expected kWh 1 818 947 production: CO Reduced/avoided CO annually: 30 tonnes Other comments ------455 2 313 4 286 16 400 Estimated impact, KBN share impact, KBN share Estimated in capacity Increase 7% 31% 91% 87% 82% 93% 86% 48% 64% 60% Proportion Proportion by financed loan green 817 3 450 3 800 2 000 19 303 18 800 14 400 32 250 36 000 90 000 Total cost Total - 393 6 197 1 850 12 317 3 456 2 070 11 020 28 176 15 326 12 343 Green loan Green outstand ing (1000 NOK) 400 6 523 17 721 2 070 3 600 2 000 11 400 31 979 14 452 14 400 Total Total disbursed loan green (1000 NOK) Upgrading five recycling facilities for waste from from waste for facilities recycling five Upgrading customers. 40,000 which will waste, garden for facility Reception recycling include high-tech to be expanded later will function as a recycling facility equipment. The including products outlet for and re-sale centre Sirkula. by produced compost Building a waste reception facility to improve improve to facility reception Building a waste optimise to and work waste disposal of hazardous plant so it is operational landfill gas the existing and carbon dioxide help reduce all times. Will at methane emissions. and and glass waste food for scheme Collection recycling at as measures as well metal packaging, recycling. increase to centres increase to as part of work centre recycling New rate. recycling with the facility waste a new for study Feasibility as good least is at of ensuring Longyearbyen target management as waste environment and resource at out be moved to facility new The mainland Norway. with a new in accordance of the town of the centre plan. municipal zoning sorting system with a better centre recycling A new and better rate a higher recycling will ensure that waste will process facility The utilisation. resource 650 households. from This timber waste. solution for logistics A new to timber taken store to it possible solution makes larger longer periods so that for centre a recycling of by instead boat by loads can be transported lorry as today. 42,000 from waste collecting for Equipment in Hedmark county. customers Description increase to as part of work station recycling New rate. recycling - 2017 2017 2017 2015 2018 2018 2018 2018 2018 2019 Com pletion - 2017 2017 2017 2017 2018 2018 2018 2018 2016 2016 Disburse ment year Waste collection Waste facilities Recycling Gålåsholmen centre solution Logistics recycling for timber Feasibility study Feasibility waste a new for facility recycling a Building to landfill gas plant landfill to of Introduction collection new scheme Pasadalen centre recycling New recycling recycling New in Heidal facility centres, Recycling facility reception and modifications Project name Project Customer Sirkula IKS Sirkula Sirkula IKS Sirkula Sirkula IKS Sirkula Simas IKS Dyrøy municipality Dyrøy Community Council Renovasjon i Renovasjon IKS Grenland Longyearbyen Ålesundregionen Ålesundregionen Interkommunale IKS Miljøselskap (ÅRIM) Interkommunale Interkommunale IKS Miljøverk Sel municipality Haugaland WASTE MANAGEMENT WASTE

IMPACT REPORT 2018 / PAGE 36 IMPACT REPORT 2018 / PAGE 37

- - - - - MILJØSELSKAP IKS MILJØSELSKAP TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, COLLECTION SCHEME,COLLECTION Photo: ÅRIM/Kristin Støylen ÅRIM/Kristin Photo: INTRODUCTION OF NEW from rubbish. YEAR OF COMPLETION: 2018 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 12,3 14,4 of resources possible % ÅLESUNDREGIONEN INTERKOMMUNALE ÅLESUNDREGIONEN INTERKOMMUNALE 86 HOME COLLEC HOME GLASS OF TION AND PACKAG METAL INCREASING ING RECYCLING their rubbish to a greater extent when Glass bin for it. a dedicated they have resources that and metal are valuable can be recycled endlessly without losing collection scheme is a good ÅRIM’s value. measure for extracting the largest amount In the Ålesund region, ÅRIM, an environ ÅRIM, Ålesund region, In the a collection is introducing ment company, metal packagingscheme for glass and The scheme municipalities. across twelve people that it seems is delivering results: out 30% bin separate a separate who have more packaging from their rubbish than if there is a degree of uncer Even before. tainty surrounding the figures because they are from the introductory the period, sep people has concluded that company and metal packaging out glass arate from

CASE PROJECTS WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER - - - - - e e 2 2 annually: 21 983 kWh Other comments CO Reduced/avoided CO annually: 8 tonnes used of energy Reduction - - - 2 979 2 470 23 560 Estimated impact, KBN share impact, KBN share Estimated in capacity Increase 11% 12% 71% 15% 73% 79% Proportion Proportion by financed loan green 72 553 72 70 000 70 109 500 234 000 220 000 620 000 Total cost Total - 51 786 10 368 71 044 26 937 80 239 183 767 Green loan Green outstand ing (1000 NOK) 11 500 31 000 60 793 82 200 84 000 234 000 Total Total disbursed loan green (1000 NOK) A new waste treatment facility for environmentally environmentally for facility treatment waste A new and ash, polystyrene sludge, sand treating so landfill site Associated waste. hazardous reduce can be used and so landfill gasses that emissions. New waste. for sorting facility large A new, high material a very will ensure technology the recovery and will increase of 75% rate recovery 100%. 7% to from materials of plastic waste. organic wet composting for facility New administration a new centres, recycling new Three The the sorting facilities. building and upgrading panels on its solar building will have administration will This and will be virtually energy-neutral. roof by consumption annual energy the facilities' reduce kWh. 30,000 biogas for waste organic prepares that A facility plant. composting previous Replaces production. capacity for the intake increases facility The including the with benefits 67%, by waste organic is for which there waste of using fish possibility otherwise no use. sorting with hi-tech sorting facility Big, new to world in the is the first facility equipment. The entirely waste residual from materials sort plastic automatically. Description - 2017 2017 2015 2018 2019 2014 Com pletion - 2015 2015 2015 2013 2016 2014 Disburse ment year facility for organic organic for facility waste sorting facility New New recycling recycling New centres Pre-treatment Forus waste waste Forus sorting facility composting New facility Heggevin waste waste Heggevin facility treatment Project name Project Customer Avfallsforedling Avfallsforedling IKS Romerike Romerike IVAR IKS IVAR Vefas IKS Vefas Sunnmøre Søre IKS Reinhaldsverik IVAR IKS IVAR Sirkula IKS Sirkula WASTE MANAGEMENT WASTE

IMPACT REPORT 2018 / PAGE 38 IMPACT REPORT 2018 / PAGE 39 - - - - -

By 2025, prevent and prevent 2025, By By 2030, improve water water improve 2030, By By 2030, substantially 2030, By By 2030, achieve achieve 2030, By increase water-use efficiency water-use increase and ensure all sectors across and supply withdrawals sustainable water address to of freshwater reduce and substantially scarcity the number of people suffering scarcity water from use the and sustainably Conserve seas and marineoceans, resources 14.1 Target marine pollu reduce significantly tion of all kinds, in particular from land-based activities, including marine debris and nutrient pollu tion Ensure access to water and sani water to access Ensure all for tation 6.1 Target to and equitable access universal water drinking and affordable safe all for 6.3 Target pollution, reducing quality by dumping and minimiz eliminating chemicals of hazardous ing release halving the propor and materials, and wastewater tion of untreated recycling increasing substantially globally reuse and safe 6.4 Target UN SDG TARGETS SDG TARGETS UN AND WATER TO RELEVANT MANAGEMENT WASTEWATER population population equivalents

2 348 562 309 237 NUMBER OF PROJECTS FINANCED, 2018 13 NUMBER OF PROJECTS FINANCED, TOTAL 33 *In 2018, 68 percent of KBN’s outstanding Green Loans portfolio was financed with green bonds. Hence, green bond investors who wish to who wish investors bond green bonds. Hence, with green financed was portfolio Loans Green outstanding of KBN’s 68 percent *In 2018, may green bonds through loans financed green of outstanding The share these figures. of impacts should depart from their share calculate the other. to one year from vary ESTIMATED ANNUAL IMPACT ATTRIBUTABLE TO GREEN LOANS* TO ATTRIBUTABLE IMPACT ANNUAL ESTIMATED in capacity Increase KBN GREEN LOANS TO WATER AND WASTEWATER MANAGEMENT AND WASTEWATER WATER TO KBN GREEN LOANS in 1000 NOK outstanding, Total

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PROJECTS WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER be found under the category Renewable Renewable under the category be found Energy. water and wastewater, and adapt the and wastewater, water the changing cli to system wastewater which main purpose is to Projects mate. may wastewater from energy generate finances investments that utilise modern that investments finances safety, water improve to technology of the treatment from emissions reduce lower-quality water resources, Norway Norway resources, water lower-quality infra need of upgraded is in pressing KBN and wastewater. water for structure Facing a future with more heavy heavy with more a future Facing but also longer dry periods and rainfalls, - - - - - 30 104 1071 200 3577 17703 Estimated Estimated impact, KBN share Capacity increase 11% 51% 35% 26% 26% 98% 48% 80% 100% 100% 100% Proportion Proportion by financed loan green 600 11 500 14 100 18 602 112 056 27 000 27 32 000 40 000 274 000 274 275 000 275 456 000 Total cost cost Total (1000 NOK) - 585 8 200 8 900 7 000 11 500 14 100 12 000 161 447 161 40 000 219 494 140 000 Green loan Green outstand ing (1000 NOK) 600 8 200 8 900 7 000 11 500 14 100 12 000 40 000 163 600 163 246 268 246 140 000 Total Total disbursed (1000 NOK9 A new, modern waterworks for a section of the municipality which has not previously had the municipality which has not previously a section of for modern waterworks A new, has had area The network. of a wastewater as construction as well a municipal waterworks, change. climate supply due to with its water problems and systems and biological treatment plant is being built with chemical treatment new The discharge lower to will lead This phosphorus and bacteria. for requirements release has strict will automate Management systems Krøderfjorden. and the local environment to levels between will be installed pipeline A 3km underwater some aspects of the plant's operations. facility. treatment the new to wastewater take to and Bjøre Noresund of sewage treatment in the municipality. The new network will also collect grey water that water grey will also collect network new The in the municipality. treatment of sewage land disposal. to went previously local capacity and reduce greater will provide that facility and wastewater joint water New change and local climate climate for with allowance is dimensioned facility The discharges. measures. change adaptation a dual installing comprises project The supply in the Hamar region. the water Upgrading all for power back-up emergency and pressure water for system zone a new supply, water pumping stations. capacity. increase to wells new Drilling of two pumps and solutions such as heat recovery plan with energy treatment wastewater A new solar panels. management. and wastewater water upgrade to of measures of a range Implementation in increases future account into take of 1.4 to factor Dimensioned using a climate treatment wastewater the from separately processed water with runoff precipitation, system. 1980 which does not satisfy from dates that a facility replace will facility treatment A new in the the amount of phosphorus contained will reduce facility The requirements. current conversion will be sent for the facility by sludge produced 90%. The least at by water feed compost. into water. of runoff levels increased address to system the capacity of the wastewater Increasing for pipe a separate installing wastewater, and water runoff include separating measures The control. to improve system control operational central and setting up a water, runoff that of wastewater supply security and the treatment water will enhance that Upgrades with cope to be increased to Dimensions of pipe network untreated. released is currently of precipitation. in levels increase Description standard the improve which will significantly and wastewater sewage for network pipe New - 2021 2021 2021 2018 2018 2018 2019 2019 2022 2020 2020 Com pletion - 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 Last disburse ment New Noresund Noresund New plant treatment and underwater pipeline Upgrades to to Upgrades management and of water wastewater and Kvanne Stangvik waterworks New wastewater wastewater New facility treatment water Refurbishing and wastewater pipes Storanipa Storanipa wastewater facility treatment to Upgrades management and of water wastewater for Trondheim and Trondheim for Klæbu Water and transportation treatment Drilling of new wells New wastewater wastewater New network and Joint water facility wastewater Project name Project Customer municipality Krødsherad municipality Surnadal municipality Lyngen municipality Skjervøy Skjervøy Grane municipality Grane og Renovasjon AS AS og Renovasjon (FjellVAR) Nesodden municipality Rødven Vassverk Vassverk Rødven SA Avløp Fjell Vatn, Hias IKS Trondheim Trondheim municipaliy Rømskog Rømskog municipaliy WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER

IMPACT REPORT 2018 / PAGE 40 IMPACT REPORT 2018 / PAGE 41

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TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, KLÆBU WATER AND KLÆBU WATER SHARED TRONDHEIM- WASTEWATER FACILITY, WASTEWATER TRONDHEIM MUNICIPALITY TRONDHEIM MUNICIPALITY YEAR OF COMPLETION: 2021 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 140 270 % 51 Photo: Carl-Erik Eriksson, Trondheim Municipality Trondheim Carl-Erik Eriksson, Photo: ESTIMATED ANNUAL IMPACT IMPACT ANNUAL ESTIMATED (SHARE FINANCED WITH GREEN LOAN) capacity in Increase COLLABORA DELIVERS TION ENVIRONMENTAL BENEFITS make the river Nid cleaner by reducing discharge into it and will facilitate the small private future task of improving which will in turndrainage arrangements, help the streams become habitable for fish again. The capacity of the water and wastewater and wastewater The capacity of the water Trond of systems of the municipalities needed increasing, heim and Klæbu also needed of treatment while the level met requirements were These improving. facility a new treatment and by creating larger facilitytransfer pipelines to a in Trondheim. example of the The project is a good The shared benefits of collaboration. the challenge of having solution solves reserves and makes the water adequate also helps to It supply more secure. water

CASE - - - - 385 1157 2 371 3 189 4 518 10503 59243 36 900 Estimated Estimated impact, KBN share Capacity increase 7% 13% 77% 36% 88% 45% 64% 94% 90% 90% 100% 100% Proportion Proportion by financed loan green 5 400 21 500 13 500 15 000 10 000 79 690 79 65 000 50 000 60 000 132 000 350 000 350 600 000 Total cost cost Total (1000 NOK) - 3 744 9 750 4 860 28 875 10 450 15 000 38 270 58 455 115 533 43 926 10 000 564 217 Green loan Green outstand ing (1000 NOK) 3 900 5 400 11 000 39 100 39 15 000 47 280 47 62 092 10 000 10 000 116 600 30 000 593 000 593 Total Total disbursed (1000 NOK9 The project as a whole is about reducing emissions from small wastewater systems with systems wastewater small from emissions as a whole is about reducing project The facilities. treatment for space limited biogas. produce sludge and to process equipped to facility treatment wastewater A new retention and four pumping stations seven network, pipe also includes a 35km project The manage rainwater. basins to with direct of chemical treatment will consist facility new the at process treatment water The because the required is process treatment A new and chlorination. UV treatment filtration, change. by climate affected Mjøsa is being adversely in lake water quality of the untreated shared pipe by laying 6km of pipe for surface water and 7km for wastewater. and 7km for water surface 6km of pipe for laying pipe by shared facility The drinking water. producing for facility treatment water future-oriented A new, long-distance large-scale alternative the need for and avoids good use of resources makes be built. pumping solutions to with problems experienced previously who have inhabitants of Dyrøya, for waterworks New the purity of their water. and greater sludge separator 1990 with a new from dates that facility a treatment Upgrading gas clean-up. waste for System measures. among other capacity, reduces that system facility with high-pressure treatment sewage efficient energy New material. of soil improving sludge will be used in the production sludge output. The of 2.8km of Replacement levels. in precipitation increase address and up-sizing to Upgrading pumping stations. associated as replacing main, as well main and 5.4km of wastewater water of Life University with the Norwegian in collaboration study feasibility Research-based treatment of different including assessment facility, treatment a new regarding Sciences solutions and dimensions. waterworks. Nordfjordeid for source water as a new Lake Hornindalsvatn Developing in and an increase growth population address to facility treatment Expanding a water the facility's and increasing stage a biological treatment demand. Installing treatment water its expansion. as facilitating as well capacity, project development research-based of a stage metals is the first of heavy removal The and Technology. of Science University with the Norwegian in collaboration being undertaken Description Replacing a runoff. water surface by presented challenges growing address to Measures - 2021 2021 2017 2017 2017 2018 2018 2018 2018 2018 2016 2019 Com pletion - 2017 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2016 Last disburse ment New water water New in facility treatment Hamar Research-based Research-based solution treatment wastewater New facility treatment into new treatment treatment new into facility Hornindalsvatn as new Lake municipal water supply Holmestrand facility treatment Skeie treatment treatment Skeie facility water Upgrading and wastewater infrastructure study Research facility Dyrøy New waterworks Hjeltnes wastewater facility treatment Separating and Separating strengthening wastewater network treatment Water Project name Project Customer HIAS IKS HIAS Midtre Romerike Romerike Midtre avløpsselskap (MIRA IKS) Søndre Helgeland Søndre IKS Miljøverk Holmestrand Holmestrand municipality Eid municipality Søndre Follo Follo Søndre IKS Renseanlegg municipality Balsfjord municipality Hægebostad Hægebostad Dyrøy municipality Dyrøy Ulvik council Lindås municipality Bærum municipality WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER

IMPACT REPORT 2018 / PAGE 42 IMPACT REPORT 2018 / PAGE 43 - - - 7381 4200 4 425 4 428 25 831 74 536 74 47 486 47 Estimated Estimated impact, KBN share Capacity increase 7% 16% 75% 73% 85% 83% 83% 63% 93% 59% Proportion Proportion by financed loan green 14 500 92 295 92 16 000 35 000 35 214 058 189 500 189 133 000 170 000 170 520 000 520 1 100 000 Total cost cost Total (1000 NOK) - 81 187 10 875 14 933 110 147 78 876 20 775 83 950 157 375 157 107 530 107 156 606 Green loan Green outstand ing (1000 NOK) 14 500 92 295 92 16 000 27 700 27 93 500 93 181 000 114 000 126 500 189 500 189 104 200 Total Total disbursed (1000 NOK9 same time for biogas production from sewage sludge. sewage from biogas production same time for commercial activity in the Hamar area. Introducing an entirely biological treatment process process biological treatment an entirely Introducing activity in the Hamar area. commercial the current bonded due to chemically are and other nutrients that phosphorus releases that process. chemical treatment Mjøsa. lake capacity through transfer the wastewater doubles pipeline that underwater New of Mjøsa, which has a vulnerable the risk of leaks and eutrophication avoid pipeline will The people. 80,000 for of drinking water and is a source ecosystem and Bardu supply for water secure and to waterworks existing connect pipeline to New energy reduce to drastically in height difference use of natural Målselv municipalities. Makes in the energy kWh of 75,000 solution. Reduction previous to relative pump water used to the pumping station. for requirement supply network. water to and improvements system of wastewater Refurbishment of UV treatment. including installation of waterworks, Upgrading and bio treatment ozone including process treatment extensive of a more Introduction in standards hygiene quality and water satisfactory to ensure essential are that filtration in the future. conditions climatic and wetter of warmer anticipation replaced process chemical treatment Previous growth. population strong Expansion due to produces that factory as a fertiliser biogas plant as well Separate with biological treatment. residue. biological pellets from fertiliser municipalities, via and Finnøy in Rennesøy the island communities to supply dual water New a 20km undersea pipeline. will significantly increase municipalities that five from wastewater plant for treatment New emissions. capacity and reduce treatment of growth population with expected it can cope so that facility a treatment Upgrading 2050. people by 100,000 to stage in order flotation large with a new, facility treatment Expansion of the existing the being made at activities. Arrangements industrial from of wastewater handle a high level Description and increased growth population address to facility main treatment HIAS's Upgrading - 2017 2012 2012 2015 2018 2018 2018 2016 2016 2014 Com pletion - 2012 2012 2015 2016 2016 2016 2014 2014 2014 2014 Last disburse ment treatment facility treatment Expansion of Grødaland facility treatment Jæren Jæren Dual water islandsupply for communities treatment New facility Nærbø New and wastewater and wastewater infrastructure water Langevatn facility treatment treatment Central Nord- for facility pipeline under Furnesfjorden pipeline Water to Nordli from Finnkroken water Upgrading Upgrading Upgrading facility treatment Underwater Project name Project Customer IVAR IKS IVAR Renseanlegg IKS Renseanlegg IKS IVAR Tønsberg Tønsberg IVAR IKS IVAR IKS IVAR IVAR IKS IVAR Oppegård municipality Bardu municipalityBardu HIAS IKS HIAS HIAS IKS HIAS WATER AND WASTEWATER MANAGEMENT WASTEWATER AND WATER - - - - - By 2020, sustainably 2020, By By 2030, enhance 2030, By By 2030, provide provide 2030, By By 2020, ensure the ensure 2020, By resources 14.2 Target marine and manage and protect sig avoid to ecosystems coastal impacts, including nificant adverse their resilience, strengthening by their restoration action for and take and healthy achieve to in order oceans productive manage forests, Sustainably halt and desertification, combat halt land degradation, reverse loss biodiversity 15.1 Target and restoration conservation, and use of terrestrial sustainable and ecosystems inland freshwater in particular forests, their services, mountains and drylands, wetlands, inter under in line with obligations agreements national Make cities inclusive, safe, resil safe, cities inclusive, Make ient and sustainable 11.3 Target urbaniza and sustainable inclusive participatory, tion and capacity for human and sustainable integrated manage settlement planning and ment in all countries 11.7 Target inclusive safe, to access universal and public green and accessible, women in particular for spaces, older persons and and children, persons with disabilities use and sustainably Conserve seas and marinethe oceans, UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN USE LAND SUSTAINABLE TO 87 655 87

NUMBER OF PROJECTS FINANCED, 2018 1 NUMBER OF PROJECTS FINANCED, TOTAL 2 KBN GREEN LOANS TO SUSTAINABLE LAND USE SUSTAINABLE TO KBN GREEN LOANS in 1000 NOK outstanding, Total

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PROJECTS SUSTAINABLE LAND USE SUSTAINABLE may finance projects where areas are are areas where projects finance may and both nature for with care developed the climate. tions should be seen in connection and change adaptation with climate loans green KBN’s systems. eco healthy In order to achieve a climate-resilient, a climate-resilient, achieve to In order reduc emission society, low-carbon

IMPACT REPORT 2018 / PAGE 44 IMPACT REPORT 2018 / PAGE 45 ) 100 000 2 300 000 Area the Area project includes (m 32% 33% Proportion Proportion by financed loan green 129 104 140 000 Total cost Total - 42 655 45 000 Green loan Green outstand ing (1000 NOK) 48 686 110 000 Total Total disbursed loan green (1000 NOK) will be built as part of a Zero Emission Neighbourhood (ZEN), meaning developers will have will have meaning developers Neighbourhood (ZEN), Emission Zero will be built as part of a requirements. environmental strict meet to reduce will help to project The seabed outside Tromsø. clean the polluted to Major project 75%. pollutants by of organic the level Description The Elverum. of central distance within walking friendly district environmentally A new, It sale. for areas residential and preparing adaptations infrastructure comprises investment - 2019 2016 Com pletion - 2018 2016 Last disburse ment Tromsøysund" Ydalir: District District Ydalir: in of the future Elverum "Clean Project Project name Project Customer Tromsø Harbour Tromsø Elverum Elverum AS Tomteselskap SUSTAINABLE LAND USE LAND SUSTAINABLE PROJECTS CLIMATE CHANGE ADAPTATION CHANGE CLIMATE

- - - - - Photo: Elverum Vekst Elverum Photo: TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, FUTURE IN ELVERUM, FUTURE IN ELVERUM, ELVERUM MUNICIPALITY ELVERUM tioning to a low-car bon society. YDALIR: DISTRICT OF THE OF DISTRICT YDALIR: important to transi 45 YEAR OF COMPLETION: 2019 YEAR OF COMPLETION: SHARE FINANCED WITH GREEN LOAN OUTSTANDING 140 such as Ydalir will be such as ELVERUM TOMTESELSKAP AND TOMTESELSKAP ELVERUM % 32 NORWAY’S FIRST NORWAY’S ZERO-EMISSION NEIGHBOURHOOD forward-looking forested municipality of forward-looking Elverum is inspiring others to think about green issues and efficiency. innovation, Buildings are responsible for approxi of energy consumption in 40% mately and therefore land use projects Norway, Elverum municipality has seen strong and growth in recent decades, population space for new resi finding it is now sand quarry an old dents by converting An district. climate-neutral into a new, energy-efficient elementary school and nursery and, will open in autumn 2019 the course of the next 10-15 years, over 800 and 1,000 residential units between standard to the passive-house will be built zero-emis seven This is one of or better. for will function as pilots sion areas that Emission “Zero a research project called being undertaken by Neighbourhoods” University of Science the Norwegian The and and Technology SINTEF.

CASE

IMPACT REPORT 2018 / PAGE 46 IMPACT REPORT 2018 / PAGE 47 - - - - By 2030, significantly 2030, By Strengthen resilience resilience Strengthen Strengthen the capacity Strengthen by disasters, including water-re including disasters, by on with a focus disasters, lated the poor and people in protecting situations vulnerable combat to action urgent Take change and its impacts climate 13.1 Target cli capacity to and adaptive and natural hazards mate-related in all countries disasters Ensure healthy lives and promote and promote lives healthy Ensure all ages all at for well-being 3d Target in particular devel of all countries, early warning, for oping countries, and management of risk reduction and global health risks national resil safe, inclusive, cities Make ient and sustainable 11.5 Target and the number of deaths reduce and affected the number of people the direct decrease substantially global to relative losses economic caused product domestic gross UN SDG TARGETS RELEVANT RELEVANT SDG TARGETS UN CHANGE CLIMATE TO ADAPTATION 92 332 92

NUMBER OF PROJECTS FINANCED, 2018 2 NUMBER OF PROJECTS FINANCED, TOTAL 5 KBN GREEN LOANS TO CLIMATE CHANGE ADAPTION CLIMATE TO KBN GREEN LOANS in 1000 NOK outstanding, Total

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PROJECTS CLIMATE CHANGE ADAPTATION CHANGE CLIMATE includes projects which main purpose is includes projects change adaptation. climate quences of climate change, be it acute change, of climate quences changing chronically or events weather category This conditions. climate Local authorities are at the frontline in the frontline at authorities are Local conse the negative against the battle 19% 24% 62% 68% 96% Proportion Proportion by financed loan green 3 200 000 4 000 000 28 000 000 20 000 000 210 000 000 Total cost Total 773 2 161 12 398 27 000 27 50 000 Green loan Green outstanding (1000 NOK) 800 2 275 - 13 050 27 000 27 50 000 Total dis Total bursed green loan (1000 NOK) Opening of a brook that previously ran in a pipe. The measure increases the capacity of the increases measure The pipe. in a ran previously that Opening of a brook a walk. go for in which to area attractive a more and creates rainwater divert to brook The new road. and of dam crest elevation and system flood diversion of a new Construction roads. flooding of nearby supply and prevent water a safe will ensure spillway being from along the river the areas protect that measures Landslide and flood prevention of floods. in the event out hollowed Description cellars and fields. Measures of flooding continual to response in adaptations change Climate tanks to 70 basin and replacing a retention include developing been implemented have that wastewater. from water surface separate Seven siren masts to alert the population of Sykkylven of potential tsunamis caused by tsunamis caused by of potential of Sykkylven alert the population to masts siren Seven mountain terrain. unstable from rockslides - 2017 2017 2017 2019 2022 Com pletion - 2017 2017 2017 2018 2018 Last disburse ment New spillway, spillway, New Isdammen Lake Landslide Norddal prevention, river Typhoon/tsunami alert system Surface runoff Surface inmanagement Bryne Opening of brook Dælibakken Project name Project Customer Customer Åfjord municipality Åfjord Longyearbyen Longyearbyen Council Community Time municipality Time Bærum municipality CLIMATE CHANGE ADAPTATION CHANGE CLIMATE Åknes/Tafjord Åknes/Tafjord IKS Beredskap

IMPACT REPORT 2018 / PAGE 48 IMPACT REPORT 2018 / PAGE 49

IN BRYNE, IN BRYNE, Photo: Illustration iStock Illustration Photo: TOTAL COST, MILLION NOK GREEN OUTSTANDING MILLION NOK LOAN, TIME MUNICIPALITY 50 SHARE FINANCED WITH GREEN LOAN OUTSTANDING YEAR OF COMPLETION: 2022 YEAR OF COMPLETION: 210 SURFACE RUNOFF MANAGEMENT RUNOFF MANAGEMENT SURFACE % 24 AN ANSWER ANSWER AN FREQUENT TO FLOODING implemented a range of measures to take the pressure off the pipe systems. The measures will be both financially beneficial – and will also help protect the areas. natural municipality’s Climate change is leading to heavier change is leading to heavier Climate in that and more frequent precipitation turn in causes surface challenges water When precipitation the form of floods. the drain, down way does not find its damage to the it can cause extensive in the infrastructure and, environment, Without health. to people’s worst cases, this can be very measures, preventative costly. Bryne has area that is a flat in Rogaland and wastewater had problems with water entering as flooding into cellars as well fields the centre of town. right outside Time municipality has In response,

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This document is only made to or directed at or directed document is only made to This Kingdom or outside the United persons who (i) are relating in matters experience professional (ii) have within the definition of who fall investments to the in article 19(5) of professionals” “investment 2000 (Financial Act and Markets Financial Services 2005 (the “Order”) or (iii) are Order Promotion) (high (d) to within Articles 49(2)(a) persons falling asso unincorporated bodies corporate, net worth trusts of high value partnerships, trustees ciations, to (all such persons being referred of the Order etc.) not be document must This Persons”). as “Relevant - - - possible risks and benefits of purchasing any such any risks and benefits of purchasing possible of this document receipt accepting securities. 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