Swedavia, the state-owned Swedish airport operator, has secured as green bond worth SEK1BN ($103m) to support its goal of getting its airports to ‘carbon neutrality’ by 2020, the company announced this week.
Swedavia owns, operates, and develops 10 airports across Sweden, and claims to be a world leader in “developing airports with the least possible climate impact”.
It said it will use the cash to deliver “climate-smart” airports, including investing in renewable electricity and electric vehicles for its ground fleet. It also promised to support the development of low-carbon aviation technologies.
By 2025, all fuel used to refuel planes in Swedish airports will need to be at least five per cent fossil-free, under Swedish governent policy.
“We have now secured additional funding for our continued adaptation journey and for our vision of climate-smart airports and the transformation of aviation,” said Jonas Abrahamsson, Swedavia’s president and CEO. “The great investor interest in the loan was thus very gratifying.”
The decision to award a green bond to an airport could prove controversial in some quarters. Green bonds have been criticised for not having consistent and universally agreed framework or labeling system, a situation which has in some cases allowed high carbon projects to procure ‘green’ capital.
However, Swedavia said the loan was issued under its green bond framework published earlier this year, which was subject to an independent external assessment by the Centre for International Climate and Environmental Research (Cicero).
In its assessment, Cicero said it considered the fact that Swedavia’s operations could lead to higher greenhouse gas emissions, but said the company is demonstrating how airports should adapt in the face of climate change.
“Swedavia is on the way to achieving its goal of zero emissions from its own operations in 2020 and contributes to research and development in fossil-free air travel and bio jet fuel,” Cicero noted.
Source Business Green