Environmental impact calculation method
KBN calculates the environmental impact of projects that are financed with a green loan using the principles set out in Nordic Public Sector Issuers: Position Paper on Green Bonds Impact Reporting.
The aim of these principles is to ensure transparent and consistent environmental impact reporting without imposing disproportionately large administrative costs on reporting organisations. Calculations of this type are subject to significant uncertainty and need to be treated accordingly.
Key reporting principles
We only report the environmental impact of the share of the project that has been financed by KBN.
Reductions in tonnes of CO2 produced are calculated for projects in the energy efficiency and low carbon transportation categories, as well as for projects in the waste management category that directly reduce emissions.
The number of tonnes of CO2 emissions prevented is calculated for projects in the buildings and renewable energy categories, as well as for waste management projects that reduce energy consumption or generate their own energy.
KBN applies the grid factor of 19g CO2e/kWh calculated by the Norwegian Water Resources and Energy Directorate (NVE). NVE calculates emissions from electricity consumed in Norway annually, which may cause minor changes in applied grid factor in the future.
KBN has previously applied the grid factor recommended in “Nordic Public Sector Issuers: Position paper on Green Bonds Impact Reporting” (PDF 2024), but transitioned to the NVE factor in 2022.
KBN’s environmental impact reporting is limited to emissions and emissions reductions that fall under Scopes 1 and 2, i.e. direct and indirect emissions from energy production, as defined in the Greenhouse Gas Protocol.
We report on the basis of the estimated impact (ex ante) of projects, but we may in future report on actual impacts (ex post).
Our reporting is centred around the net benefit of each project relative either to the situation prior to the project’s completion or to a reference scenario, as appropriate. As reference scenarios we use the relevant regulatory requirements, e.g. Norwegian building regulations (TEK).