Green Finance Framework
Preem’s renewable transition is absolutely crucial for our long-term competitiveness, serving as an Enabler for other businesses to achieve their climate goals as well as helping Sweden to achieve its national climate goals.
By switching Preem’s refineries from fossil to renewable feedstocks, we enable viable refinery operations in a sustainable future. To drive the transition, we are constantly looking for new solutions to identify sustainable raw material feedstocks. One focus is to develop renewable raw materials from residual products from the forestry, wood and pulp industries, such as sawdust, tops and branches; in the future also lignin. By investing in renewable fuel production, based on sustainable domestic raw materials, we contribute to Swedish self-sufficiency of low carbon fuels. Preem´s target is to expand the renewable fuel production capacity to 5 million m3 by 2030 which corresponds to the expected total renewable fuel usage in Sweden of the same year.
An amount equivalent to the net proceeds from Preem’s Green Financing Instruments will be used to finance or refinance, in whole or in part, existing and/or future Eligible Green Projects and Assets that meet the Eligibility Criteria as defined below and are financed by Preem through operating and capital expenditure. Operating expenditure might include filters, catalysts, personal on these specific units and renewable feedstock.
Preem intends to allocate an amount equal to the net proceeds raised by the issuance of credit under this framework to eligible green projects and renewable raw materials where financing has taken place up to three year before issuance or if the invested technology is still state of the art and depreciation of initial investment is still on-going.
Green Financing Instruments will not be used to (re-)finance investments that utilise fossil-based raw materials or that are associated with environmentally negative resource extraction.
Eligible projects under this framework have to fall into one of these three categories:
- Eco-efficient and circular technologies and production
- Renewable energy
- Energy efficiency
Each year Preem releases a report on the allocation of funds under the Green Finance Framework and the impacts the use of proceeds have accounted for thus far. Preem will report on the climate impact according to standardized methodologies within the EU and Sweden.
CICERO Shades of Green have rated Preem's Green Finance Framework as Light Green.