Dutch Utility Plans Green Bonds For Offshore Wind Projects
Earlier this month, Dutch transmission system operator TenneT announced the launch of its green bonds programme.
TenneT revealed the launch of a green bonds programme and a green bonds framework to raise funds that will be used to set up transmission capacity for offshore wind energy projects. TenneT will become the first non-financial company in The Netherlands to issue green bonds.
The company seems to be planning a comprehensive green bonds issuance programme that will help it raise billions of Euros over the next few years. TenneT plans to increase its investments in the country’s transmission infrastructure dedicated to offshore wind energy sector to €7 to €9 billion over the next 10 years. By 2019, the company plans to have a transmission capacity of 7 GW operational in the German sector of the North Sea, while by 2023 it hopes to have a transmission capacity of 3.5 GW in the Dutch sector.
While issuance of green bonds has become something of a norm lately, critical issues regarding the use of their proceeds remain. TenneT, however, has taken concrete actions in this regard by issuing a green bonds framework, which shall serve as a benchmark for evaluating the environmental integrity of the investments made from the proceeds of the green bonds. The framework has been prepared in collaboration with oekom research AG, while HSBC Bank will act as Green Sustainability Bond Advisor to the framework.
According to the Climate Bonds Initiative, green bonds worth $10.5 billion have been issued this year until the end of April. This compares to the green bonds issuance of $36.6 billion in 2014.
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