“Local governments wield significant influence and authority that can drive environmental sustainability within their jurisdictions.”

By Linn Smith

August 6, 2017—–In the late 19th century Gothenburg developed into an industrial city. In 1987 the Minister of the Environment called parts of the city, “hell’s waiting room” which described the environment for the industrial part of the city, dirty and polluted. Chemicals were escaping into the environment and appearing in animals, fish and mother’s milk, increasing cancer risks and lowering the immune system of infants. This was the Gothenburg of yesterday!

From Industrial City to Climate Leader

Today, Gothenburg has transitioned from industrial city to a world climate leader. In 2013, it became one of the first cities in the world to issue Green Bonds. 

Bonds allow the public to invest sums of money. When a person purchases a bond they lend money to the issuer of the bond, in this case, the city of Gothenburg. In return investors are paid a specific interest rate. 

Green bonds are linked to solving our climate change disaster by providing the money necessary for a community to build sustainably. They are earmarked for environmental projects.

Building Sustainably with Green Bonds

Gothenburg offers Green Bonds to the public, which allows the city to borrow money from investors. With this money the city creates climate change projects that allow a transition from a polluted city to one of low carbon emissions and climate-resilient growth. Without the Green Bonds Gothenburg would have struggled with decisions on funding schools and daycare or moving the city toward sustainability.

Projects Funded by Green Bonds

Some of the projects funded by Green Bonds are:

• Large scale production of biogas, providing high efficiency in production and recycling of waste heat for district heating and electricity.
• Electric cars for city and companies, with 100% electric cars in the city fleet.
• Energy efficient traffic lights
• Sustainable housing. These buildings use green electricity. Estimation shows that the sustainable housing built so far will avoid 50-60 tons of Co2
emissions in the atmosphere annually.
• Tree planting. 1710 trees have been planted since the projects funded by Green Bonds started, with a focus on a green cityscape, which effects the
urban air quality and temperatures of nearby buildings.(See https://planetearth5.com/tag/heat-islands/)
• Sustainable transportation. Improvements to the city’s bicycle infrastructure. The city offers 1,000 bikes with 69 stations in the city to leave
your bike. You can pick up a bike, ride it to your destination and drop it off at the nearest station.
• A sustainable airport. All energy at the Gothenburg airport comes from renewable sources. Heat is generated by biomass boilers. There are also
charging stations for electric cars. Take off fees for airplanes are reduced for those with lower emissions of nitrogen oxides and hydrocarbons. 75%
of the airport shuttle buses run on RME, a biofuel made from rapeseed (related to canola oil.)
• The city’s SJ trains run entirely on renewable electricity from wind and hydro power.
• A sustainable port. Gothenburg is a coastal city. Ferries and ships which are docked in Gothenburg are encouraged to connect to an onshore power
supply, which is a source of clean energy. “Providing an onshore power supply for vessels at berth can result in significant environmental gains.
Carbon dioxide emission decrease substantially and emissions of sulphur dioxide and nitric oxide are reduced to a minimum. Onshore connections also
provide a quieter environment and cleaner working conditions.”
• The largest ultrafilter built in Scandinavia. City water is treated by ultrafilter to assure the highest quality of drinking water for its citizens.

Linking Investments to Green Projects

Green Bond investing has led to greater interest by citizens in the environment, plus it creates a link between investments and speeding up green projects. 

Other cities are following suit. Toronto issued Green Bonds to finance a heat, power and cooling solar plant. Johannesburg just issued green bonds to finance green projects that will reduce greenhouse emissions and contribute to a sustainable city.

The California Sustainability Alliance said it well. “Local governments wield significant influence and authority that can drive environmental sustainability within their jurisdictions” and further influence the global greening of our planet!

Gothenburg-Green Bonds

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