Through a green bond scheme that began in 2017, Östersund has set up a framework for financing sustainable in investments in renewable energy, mobility and energy-efficient housing. Energy efficiency improvements in housing in 2021 have led to 892 MWh/year of energy use avoided.

The Green bonds process: A deep dive into Östersund’s climate objectives

The city of Östersund has set an ambition of becoming climate neutral by 2030. To succeed, the city must increase its renewable energy use and reduce energy consumption by 30% (compared to 2010). Achieving such an ambitious, system-wide energy transition requires coordinated political leadership to inspire all public and private actors. Thus, the city intends to make all its operations climate neutral by 2025 and revise all local regulations to align with its climate programme.

The Climate Strategy introduced the Östersund Green Bonds Scheme in 2017 as an innovative financing tool for investments in climate-smart, ecologically sustainable and energy-efficient projects. The framework has a strong emphasis on transparency, and an obligation to make the investments publicly accessible.

While investors have an opportunity to independently allocate their money to sustainable projects, the city council, and the council-owned companies Jämtkraft and Östersundshem, also issue green bonds to finance projects that meet the requirements set out in the Green Bond Framework developed in 2017: reduction of greenhouse gas emissions; contribution to climate change adaptation; and investment in environmental projects that address issues other than the climate (max. 20%).

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