Over the past decade, Finland has attracted capital to fund public-sector investments that deliver tangible environmental and climate benefits. International investor appetite for sustainable assets remains strong, and this will be decisive in achieving Finland’s climate targets and advancing the green transition.
In 2016, MuniFin became the first Finnish credit institution to offer green finance to its customers for environmentally and climate-beneficial projects. A decade on, sustainable finance now accounts for the majority of MuniFin’s new lending, and the company finances most green projects undertaken by municipalities and affordable social housing organisations.
By the end of 2025, MuniFin’s balance sheet included approximately EUR 9.1 billion in green finance. Funding has been allocated to more than 700 projects, the majority of which relate to sustainable construction. Transport solutions constitute the second-largest category, including major infrastructure projects such as the West Metro in Espoo and tramway developments in Helsinki and Tampere.
“We offer a margin discount for green projects, the level of which is linked to the scope of their environmental impact. This is designed to incentivise customers to pursue increasingly impactful investments”, says Anssi Wright, Sustainable Finance Senior Specialist at MuniFin.
The scaling of sustainable investments relies heavily on inspiring examples. To that end, MuniFin has recognised green finance customers that have set ambitious environmental targets and embedded sustainability across their operations. Joensuu was named a Green Pioneer in 2019 and Kokkola in 2023.
The eligibility criteria for green projects are defined in MuniFin’s Green Bond Framework, most recently updated in 2025.
“The focus of green finance has shifted increasingly towards minimising lifecycle climate and environmental impacts, while also addressing physical climate risks and biodiversity considerations. Climate adaptation and biodiversity were added to the pool of eligible project categories”, Anssi Wright notes.
A pioneer in international capital markets
A decade ago, MuniFin was also the first Finnish issuer of green bonds. Since 2016, the company has issued 13 green bonds, all of which have attracted exceptionally strong investor demand and have been significantly oversubscribed.
In international capital markets, green bonds have broadened MuniFin’s investor base and reinforced its position as a recognised and credible issuer globally.
“From our very first green bond issuances, we observed that demand was comparatively stronger than for our conventional funding programmes”, says Antti Kontio, Head of Funding and Sustainability at MuniFin.
Over the past decade, MuniFin has received several prestigious awards for its green bond programmes. The company has been recognised multiple times as green bond issuer of the year and as a leading SSA sustainable issuer, including at the annual awards ceremonies of Environmental Finance and CMD Portal.
Rising geopolitical tensions and shifts in environmental policy, particularly in the United States, may create the impression that climate considerations are losing momentum. However, the market for green investments continues to expand. Nasdaq’s Nordic sustainable bond market was launched in Stockholm in 2015 and in Helsinki in 2018, and nearly a quarter of all bonds listed across the Nordic and Baltic markets are now classified as sustainable.
“An increasing number of investors are committing exclusively to sustainable assets, and a growing share of institutional investors are participating in sustainable bond issuances. This is partly driven by risk management considerations, but also reflects a genuine commitment to strengthening our resilience in the face of climate change”, says Antti Kontio.