Green financing

Green financing refers to financing that supports environmentally friendly projects, sustainable development, and climate-friendly solutions. The goal is to direct capital to projects that contribute to a more positive environmental impact.

Reykjavík Energy began issuing green bonds in 2019. In 2021, a green financing framework was established, which set the policy that all financing within the group would be green.

In 2024, the Green Financing Framework was updated in light of the EU Taxonomy Regulation to increase alignment with international standards for sustainable finance.

Green Financing Framework

Reykjavík Energy's Green Financing Framework is based on the policy that all of the Group's financing, whether through bond issuance or other borrowing, will be green. The current framework has received an independent assessment from S&P Global Ratings, which gave it a rating of Dark green and partially assesses it in accordance with the EU Taxonomy.

All financial activities that Reykjavík Energy has defined in accordance with the EU Taxonomy meet the criteria for substantial contribution to climate change mitigation, do no significant harm, and are in line with the minimum safeguards of the Taxonomy Regulation. The financing framework also covers projects directly related to the construction, installation, expansion, and maintenance of fiber optic systems. Such projects are not covered by the current version of the EU Taxonomy, and therefore the framework is assessed as being partially aligned with the Taxonomy Regulation.

The Green Financing Framework also follows the so-called Green Bond Principles, which are guidelines issued by ICMA – the International Capital Market Association. The framework is based on four main pillars:

  • Definition of green project categories
  • Clear selection process for green projects
  • Handling and traceability of funds
  • More regular and transparent reporting to investors

Reykjavík Energy's Green Financing Frameworks

Green bonds

For a long time, Reykjavík Energy and its subsidiaries have been working systematically to reduce the environmental impact of their operations and promote sustainable development. The issuance of a green financing framework and the bonds that fall under it is a clear confirmation of this policy. The goal is to finance or refinance projects that support the responsible and sustainable use of natural resources, including projects that promote carbon sequestration, climate-friendly energy transition, and ecosystem protection.

Reykjavík Energy commits to publishing an annual Green Financing Impact Report, detailing the allocation of funds borrowed under the financing framework. The reports are available here: