Growing demand for green loans
In 2021, the volume of green loans almost doubled compared to 2020. In Danske Bank, the share of green loans grew from 12 billion Danish kroner in 2020 to 21 billion Danish kroner at the end of 2021. The same goes for Realkredit Danmark, where green loans grew from 9.7 billion Danish kroner in 2020 to 17 billion kroner at the end of 2021.
“We are seeing an increasing demand from our customers, who are particularly using green loans to finance energy-efficient buildings and renewable energy projects. The advantages of a green loan is that they can be slightly cheaper than a standard loan and at the same time, the borrower can demonstrate that their projects are green as they meet our green loan criteria,” says Samu Slotte, Global Head of Sustainable Finance in Danske Bank.Sustainable finance in focus
Sustainable finance is an important focus area for Danske Bank Group, but what is it really? Get an explanation here:
Danske Bank has set a target to secure 300 billion Danish kroner in sustainable financing by 2023. In 2021, Danske Bank Group’s green loans totalled 37,5 billion kroner and thus, the bank now have provided 192 billion Danish kroner in sustainable finance since 2019.
“We are actively supporting our customers to achieve their sustainability ambitions and I expect that the demand for green loans will continue to grow, both on an overall global level, and in Danske Bank and Realkredit Danmark specifically,” says Samu Slotte.
What is a green loan?
A green loan finances or re-finances loans or investments for projects that are earmarked for specific green projects and are in accordance with the categories of Danske Bank's Green Bond Framework