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How does a Green Business Loan work?

  • The entire value chain operates sustainably. The product is based on green funding available on the market, which is earmarked for environmentally friendly projects. 
  • Your company is committed to using the loan for a sustainable project. You must be able to demonstrate the positive impact of the investment on your company’s electricity or water consumption, for example.
  • Green Business Loans can be used to finance investment projects that fall into the categories listed below. Read more under “Project categories”. 

Read more about Nordea’s sustainability work on the Sustainable Finance pages.

When is a Green business loan applicable?

  • If you are planning to make or have made investments that contribute to climate-resilient growth through carbon reduction or the use of renewable energy sources.
Project categories
How Green Business Loans work

Green projects

Categories of eligible green projects
Category
Definition
Renewable energy

Wind, water and solar power.

Production of hydrogen.

Energy efficiency improvementSmart grids and energy storage.
Green buildings

Certified buildings, business premises and flats. 

LEED: Gold level at a minimum

BREEAM: “Excellent” at a minimum

Nordic Swan Ecolabel 

RTS environmental classification: Minimum three stars

Energy efficiency class: A

Pollution prevention

Water purification/wastewater treatment

Waste management

Conversion of waste to energy

Environmentally friendly transportation

Public transport/goods transport

Electric or hydrogen fuel cell vehicles

Sustainable use of natural resourcesSustainable forestry, agriculture and aquaculture

How Green Business Loans work

  1. Define a green project
    The project for which green financing is applied for is defined and verified according to Nordea’s normal credit process. The green project and the funds allocated to it must contribute to the transition to low-carbon and climate-friendly growth.
  2. Internal evaluation
    In order to be classified as green, an investment must meet certain requirements of Nordea green funding framework. This framework is based on ICMA’s (International Capital Market Association) Green Bond Principles.
  3. External evaluation
    An independent third party will ensure that the green projects and the funds allocated to them meet the requirements. For this, we collaborate with ISS ESG.
  4. Reporting
    We request from you a compliance certificate on the costs related to your green project and certification (proof of certification) annually, for example.

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Watch the video

In the video a company called K2A tells you what a green business loan and thereby a green product all the way to the end-customers has meant for them as a company.

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