NIB calculates the total net emissions of greenhouse gases for all the projects it finances. Emissions can either occur directly, e.g. via fuel combustion or production process emissions, or indirectly through purchased electricity or heat. NIB prorates the emission to its share of the financing in order to avoid double-accounting with co-financiers.

The carbon footprint information of all projects is reported to NIB’s decision makers in the credit committee and Board of Directors prior to loan decisions.

The major international financial institutions agreed on a harmonised approach to project-level greenhouse gas accounting in 2012. Since then, technical working groups have developed sector-specific accounting principles for renewable energy, energy efficiency and for the transport sector. NIB is actively participating in the working groups.

The majority of the environmental loans agreed in 2016 related to projects promoting climate change mitigation in the member countries. These comprised loans to improve energy efficiency of public and commercial buildings, including one green R&D building, and public rail transport infrastructure.

Loans were also agreed for renewable energy generation projects in hydropower, biomass-fuelled heat and power plants for municipalities and as part of new pulp mills.

Energy projects financed by NIB in 2016 will add 1.5 TWh annually to renewable energy generation.

NIB estimates that the loans agreed in 2016 help to reduce CO2 emissions by 280,000 tonnes annually, prorated to NIB’s share of the financing.

The percentage of NIB’s total lending volume allocated to climate change mitigation projects amounted to 22%. NIB also financed projects that will increase CO2 emissions to air from fossil fuels. The added CO2 impact resulted in an increase of 6,000 tonnes of CO2 prorated to NIB’s share of the financing.

CO2* impact of NIB’s financing

Millions of tonnes of C02 per year

CO<sub>2</sub>* impact of NIB’s financing