ABSTRACT
This chapter aims to shed light on the complexity of the development/implementation of green loans. The paper combines a review of the academic literature and policy documents with insights obtained through 11 interviews that were conducted from 2017 to 2021 on green loans at one of the Nordic banks. Searching for the answer to the question When do bank loans become green?, the study suggests a framework emphasizing the impact of the following factors on the development of a green loan concept: the bank's profitability and sustainability goals; green balance sheet; public policy; market mechanisms; needs of the society; and development of science and technology. The chapter contributes to the literature on green finance in its application to the bank loans granted to finance the construction of wind farms in Sweden, the experience which might be of interest to the international community searching to facilitate the uptake of green loans for the development of a climate-resilient society.
