Green loans for commercial property and residential projects

Image of building site with three project managers

Why does it pay to think green?

Green buildings generate lower operational and upgrade costs and a higher willingness to pay among tenants and investors. This can therefore result in a higher value than a corresponding building without the same credentials. By investing in green buildings, operators in the industry will also contribute to the green shift. Green buildings are more attractive to finance for the banks and provide grounds for green loans.

What are green loans?

Green loans must contribute to sustainable development and can be given to projects and investments in buildings with specific green credentials that satisfy DNB’s applicable criteria. A green loan offers better terms than a corresponding loan that is not green.

Our ambition is to contribute a total of NOK 130 billion in green property financing by 2025. This is how we can support the green transformation of the industry.

Green building loans (rehabilitation loans) can also be given based on a minimum of 30% energy improvement in existing buildings. In order to be able to offer a green loan linked to a fully renovated project, the building must meet the above criteria related to certification and energy class.

What are the criteria for obtaining green loans related to property?

A green loan can be given to buildings that have achieved, or are planning to achieve, sustainable qualities related to the operation of buildings or buildings during construction. Green loans are also provided for building measures and improvements. The criteria for green buildings are given based on the age of the building.

The criteria for green buildings are based on the age of the building

Building application registered before 2021

Must achieve one of the following alternatives:

Certification (see below for relevant certifications)
Energy rating A, or alternatively among the 15% most energy-efficient buildings. For buildings over 5,000 sqm, an energy monitoring system (EOS) must also be implemented

Certification

One of the following certifications may be used:

BREEAM New Construction Excellent
BREEAM In Use Excellent
Nordic Swan Ecolabel
LEED Gold
Miljöbyggnad Silver or equivalent (see framework for details)

Building application registered after 2020

Must achieve one of the following options:

Certification (see below for relevant certifications)
Energy use 10% lower than nearly zero-energy buildings. For buildings over 5,000 sqm, a greenhouse gas budget/greenhouse gas account must also be prepared, and airtightness measurements and thermography must be carried out.

Low greenhouse gas emissions

Certification

One of the following certifications may be used:

Commercial buildings: BREEAM New Construction Excellent
Residential buildings: BREEAM NOR Excellent
Nordic Swan Ecolabel
LEED Gold
Miljöbyggnad Silver or equivalent (see the framework for details)

Green loans can also be granted for building refurbishment based on a minimum 30% energy improvement (the investment qualifies for a green loan). To offer a green loan linked to a completed refurbishment project, the building must meet the above criteria for a green building.

Green loans are also granted for individual measures, such as solar panels, additional insulation, window replacement and electric vehicle charging points. For a full overview, please see the green financing framework.

What do I need to do?

Certification and energy labelling are central to our assessment, and documentation of this is crucial in order to get green financing. If you have ambitions about a green project or building, get in touch with your adviser at the bank for an evaluation of the possibilities of green financing. If you don’t have a fixed contact person you can get in touch via the link below, and we’ll assist you further.

BREEAM NOR-certify a new building

BREEAM-NOR is Norway’s foremost environmental certification system for buildings and is managed by Grønn Byggallianse (Norwegian Green Building Council). A BREEAM-NOR certificate documents quality.

BREEAM-NOR – Norwegian Green Building Council

The Nordic Swan Ecolabel

For more information about the Nordic Swan Ecolabel, as a building contractor you can contact Stiftelsen Miljømerking (Ecolabelling Norway) which manages the Nordic Swan Ecolabel in Norway.

About the Nordic Swan Ecolabel