MuniFin / Ten years of green bonds: from carving a path to leading the way

MuniFin has offered green finance since 2016. Over the years, we have had the privilege of financing projects that impact the lives of hundreds of thousands of Finns – and supported the unsung champions of sustainability across our customer organisations.

The initial wave of green finance reached Finland through the capital markets around a decade ago. Environmental impact began to feature more prominently in discussions among international investors.

We saw this as an opportunity to reflect on our role. In green finance, investor demand aligned with an avenue for MuniFin to create a broader societal impact. The idea aligned naturally with both our operating environment and core mission: to ensure funding for projects that are vital to the functioning of Finnish society.

Initially we had to actively build the market for green finance; at times, this process felt like pushing a rope. Over the years, however, the climate conversation has gained momentum and green themes have become mainstream. Increasingly, it is our clients who initiate discussions about the environmental impact of their projects and the opportunities offered by green finance. We have moved from mere supply to genuine demand.

The changing world and evolving market have also been reflected in how we have updated the terms of green finance over the years, most recently in August 2025. Projects that qualified as green finance in the early years would no longer meet today’s criteria. Energy efficiency in construction has taken major strides, and a low carbon footprint has become an equally important point of assessment. New project categories have also been introduced, including biodiversity and climate change adaptation.

We have had the opportunity to finance numerous green projects that shape everyday living environments and local urban structures. Projects such as the first tram lines of the City of Tampere, the Western extension of the Helsinki Metro, and the Blominmäki wastewater treatment plant (the most expensive investment in the history of the Helsinki Region Environmental Services Authority) are major pieces of infrastructure that affect the daily lives of hundreds of thousands of people. They form part of the foundation on which Finnish happiness, according to many studies, is built.

In most cases, however, a project’s significance does not stem from its size or visibility alone. Green finance has been a stepping stone for many municipalities to adopt a more ambitious approach to sustainable development. Modest yet locally meaningful projects have gained momentum from the green finance label, the more favourable financing terms it offers, and the chance to stand out among peers as an environmentally conscious actor.

Many cities, municipalities, and non-profit housing developers have boldly embraced the opportunities of green finance, and we are highly grateful for that. Success is something that’s built together and it has been a privilege to share this sustainability journey with our customers.

It has been particularly meaningful to see green finance support professionals who previously worked in relative isolation and faced scepticism within their organisations for advocating sustainability. Financial backing has legitimised their vision and helped embed sustainability in both organisational dialogue and concrete initiatives.

We expect a focus on the physical risks associated with climate change to grow in the years ahead. As extreme weather becomes more frequent, the need for resilient construction also increases in Finland. We finance the country’s national assets – and thus have a responsibility to support their resilience and longevity.

We stand at the beginning of a new decade for green finance. The work continues, together with our customers and partners.

Rami Erkkilä, Senior Specialist, sustainable finance
Rami Erkkilä is responsible for green and social finance products at MuniFin