The purpose of the inquiry, which was led by former AP4 CEO Mats Andersson, was “to identify ways to promote the market for green bonds”. SSFC, which was one of the referral bodies, broadly supports the main conclusion of the inquiry to issue a sovereign green bond in Sweden, modelled on the recent successful issuance in France.
France and Sweden have already taken concrete actions in the field of sustainable finance and initiated collaborative efforts, through the involvement of both private and public stakeholders. Green finance is one of the four key areas identified in the French-Swedish strategic partnership for innovation and green solutions signed on 17 November 2017 by the Swedish Prime Minister Stefan Löfven and the President of the French Republic Emmanuel Macron.
Recently, to honor this French- Swedish partnership, a high-level conference on the development of green finance was co-organized by Crédit Agricole CIB and SEB in Stockholm, with the support of the Regional Economic Department of the French Embassy in Sweden. This event highlighted the need for joint action and collaborative approach to sustainable finance, including shared learning and experiences.
Although Sweden has limited borrowing requirements making the presumptive bond small, while the formal additionality would be limited due to the Budget Act, a Swedish sovereign bond would give a positive signal on the national as well as the international stage and represent a good follow up to the France issuance. Additionally, important learning benefits would emerge from the process of issuing the bond.