Impact and Allocation Report on Green and Sustainable Financing published
The Government of Iceland has published its 2025 Impact and Allocation Report, detailing the allocation of proceeds from the country’s green and gender bond issuances and the associated environmental and social benefits.
The report outlines how proceeds from Iceland’s EUR-denominated Green Bond, issued in March 2024, and Gender Bond, issued in June 2024, were allocated to eligible government expenditure. The allocations are consistent with the criteria set out in Iceland’s Sovereign Sustainable Financing Framework, published by the Ministry of Finance and Economic Affairs in April 2023. The report also highlights the positive environmental and social impacts associated with the financed expenditure. Allocation reports will be published annually until the proceeds are fully allocated. The first report was published last year.
In 2025, a total of EUR 331,2 million was allocated to finance eligible government expenditure across 12 categories. This represents the part of the EUR 800 million raised through the two bond issuances, comprising EUR 750 million from the Green Bond and EUR 50 million from the Gender Bond.
The 12 categories are: G1: Clean transportation, G2: Renewable Energy, G3: Green buildings, G4: Management of living natural resources & land-use, G5: Circular economy and emission reduction, G6: Climate change adaptation, G7: Information and communication, B2: Pollution prevention and control, B3: Management of living natural resources, B4: Sustainable water and wastewater management, W2: Essential social services and decent living standards for women in a vulnerable position and W3: Reduce and redistribute the burden of unpaid care and domestic work.