Bank of Ireland is to enter the green bonds market to finance projects in the areas of renewable energy, green buildings, and clean transport.

The Green Bond Framework follows on from the bank’s Sustainable Finance Fund, introduced last year, which has provided around €600m in loans to home owners and businesses.

The bank says it has reduced the ‘carbon intensity’ of its own operations by 40% since 2011 and has achieved a higher rating from climate sustainability consultancy Sustainalytics.

Chief strategy officer Mark Spain (pictured) stated: “When we became a signatory to the United Nations Principles for Responsible Banking last year, we said that it signified our commitment to play a key part in the global drive for more responsible banking operations.

“Our commitment to supporting a low carbon economy requires funding and the framework ultimately enables us to finance more projects that mitigate climate change by reducing carbon emissions. We will continue to support more customers with their sustainability ambitions, reduce our own carbon footprint and make further progress on this critical agenda.”

In Association with

The bank's green-themed initiatives include:

• Ireland’s first green mortgage interest rate, whereby borrowers receive a discount off fixed rate interest options to finance purchase, construction or renovation of residential buildings with an A-rating, or to achieve an A-rated BER energy performance
• A green home improvement loan, designed to fund energy efficient upgrades — discounted rate for amounts from €2,000 to €65,000
• A green business loan, with discounts for businesses that implement initiatives to reduce their energy costs and carbon footprint
• Finance for renewable energy projects.