Sparebanken Norge updates green bond framework for low-emission economy

Sparebanken Norge has updated its Green Bond Framework 2025 to bolster financing and refinancing for assets supporting Norway's transition to a low-emission economy. This initiative aligns with the bank's strategy to achieve net-zero emissions by 2040, encompassing indirect emissions from its loan portfolio, and follows its recent merger of Sparebanken Vest and Sparebanken Sør. The framework, which supports lending for energy-efficient residential and commercial buildings and renewable energy projects in Norway, is consistent with the 2025 ICMA Green Bond Principles.

The updated framework emphasizes transparency, disclosure, and integrity in the green bond market. It integrates EU Taxonomy considerations and robust governance, with ING acting as sole green structuring advisor. Moody’s provided a Second Party Opinion, including a Taxonomy alignment assessment, while Multiconsult will offer a technical assessment of eligible green assets.

Eligible loans under the framework include those for residential buildings built post-2021 meeting NZEB-10% criteria or older buildings with an EPC A label or within the top 15% low carbon buildings in Norway. Similar criteria apply to commercial buildings, alongside provisions for refurbished buildings demonstrating at least a 30% improvement in energy efficiency. Renewable energy projects, specifically hydropower in boreal regions, are also eligible if they meet criteria such as being run-of-river plants, having power density above 5W/m2, and lifecycle emissions below 100g CO2e/Kw.