Finance
Green and gender bonds to help Iceland ‘live up to its image’, says finance minister
Iceland consistently ranks as the most gender-equal country in the world, according to the World Economic Forum’s Global Gender Gap report. The “land of fire and ice” also has an abundance of renewable energy, with almost 100 per cent of energy consumed by the country coming from renewable sources such as geothermal energy.
But even countries that are in relatively good shape on gender and climate still need to tap the ESG bond markets, as Iceland’s minister of finance and economic affairs, Sigurður Ingi Jóhannsson, told The Banker.
He was visiting the London Stock Exchange on May 31 where he opened the day’s trading to mark the occasion of Iceland’s inaugural green bond valued at €750mn, which it issued back in March under the country’s sustainable financing framework. The green bond attracted a record 280 investors, the biggest interest shown from investors in an Icelandic transaction, according to the Icelandic government.
Green, social and blue bonds can be issued by Iceland’s treasury through the framework, which it published in 2021, and updated last year. Jóhannsson spoke to The Banker about the country’s sustainable financing framework and its plans for future issuances, including a gender bond.
The interview has been edited for clarity and brevity.
Q: Why did Iceland issue its first green bond earlier this year?
A: Iceland has worked on its sustainable financing framework and we have used the last few years to consider the latest news and developments on green bonds and how the market is responding. The sustainable financing framework that we were working on in 2021 was a little bit delayed initially due to a general election in Iceland and the Covid-19 pandemic. So you have to choose when you think is a good time to issue a green bond, and that time for us was now.
Being a very green country, it is also like a statement: We want to live up to our image. We started with a green bond because we aim to be carbon neutral by 2040 and totally get rid of fossil fuels by 2050. The bond will help finance the transition in Iceland.
The final issuance size was nine times what was initially offered — we have never seen anything like that
We have already done a lot in the past few decades — with 84 per cent of energy coming from renewables — but there are still a lot of things to invest in, such as roads, the maritime industry, green buildings and adaptation to climate change. We are looking to get funding on all of these areas within the framework.
The green bond was welcomed by the market; there were over 270 investors taking part such as central banks and official institutes, bank treasuries, insurance companies and other institutional investors, mainly from northern Europe. The final issuance size was nine times what was initially offered — we have never seen anything like that. We also had broader investors than we have had before. It’s a high-quality investor group and the majority tend to hold it to maturity, so there’s actually more demand for it than supply. Proceeds from the bond issuance in March are for finance expenditures from 2024-2026.
From northern Europe’s perspective, the green bond showed that the Icelandic economy is strong and that everything we are doing inside of the sustainability framework is good. The market is looking forward to what we are going to do next.
Q: Does Iceland have plans to issue more bonds, and if so, what type?
A: There won’t be another green bond this year, but we don’t know about the future. We are also exploring gender bonds; that is our next step. Even though we are at the forefront [of gender equality], we want to lead by example. By doing this, we could encourage other countries to do the same.
Gender bonds will clearly help us in co-operation with other countries [such as support for other countries as they look to improve gender equality], but we will also find some interesting projects domestically in Iceland because even though we are at the top in terms of gender, we still do not have total gender equality.
But being at the forefront of gender equality for many years helps us in a positive way to gain more credibility with gender bonds because we have a story to tell about it. We anticipate a lot of investor interest when we issue a gender bond. [Jóhannsson gave no indication as to when a gender bond is likely to be issued.]
Blue bonds are also in our sustainability framework, so they are a possibility for the future. We are quite lucky with the sustainable fisheries policy that we have had for a few decades, which is probably the most efficient in the world, and means our oceans are still quite clean.
Q: What challenges does Iceland face when it comes to the energy transition?
A: The biggest transition challenges we face are in [the] road transport and maritime [industries]. We have done a lot in terms of electrification of cars. Last year, the majority of imported cars were electric cars. The challenge is more in heavier vehicles and maritime transport, even though they have succeeded in replacing the use of fossil fuels, almost by 43 per cent in the last 10 to 15 years.
For heavier vehicles and maritime transport, the biggest challenge is the lack of an alternative energy source: it could be hydrogen or ammonia. We have to invest in these alternative energy sources in Iceland, as well as in other countries producing them, because there will be much more demand in the next decade than we will be able to produce domestically. Green bonds can help fund the production of those energy sources. As a small nation, if we are able to produce hydrogen, for instance, for the maritime industry or for heavy vehicles, even for aeroplanes in the future, we could also export it to other countries.
We are on track to achieve carbon neutrality by 2040, but investment in the next few years is critical, and not only investments by the government, but also by municipalities and companies. I cannot not say with 100 per cent certainty that we will succeed. But without this goal, we will certainly not get there.
Developing the sustainability framework was also about gaining the verification and certification that what we are doing meets expectations, and that the policies we are working on, both environmentally and economically, point in the same direction. We are on a clear path to invest more in the green and just transition, which is where a gender bond could help.
Finance
German finance minister wants to scrap spousal tax splitting
Last weekend, several thousand people took to the streets in Munich to demonstrate against abortion and assisted suicide. One speaker made an extremely dramatic plea against what he called the “culture of death” that has allegedly taken hold in Germany. One sign of this, the speaker argued, was that the government is planning to abolish a regulation known as “spousal tax splitting.”
Is tax law really relevant to deep philosophical debates on the sanctity of life? It is even a matter of life and death at all? Surely we needn’t go that far? In any case, the intense political uproar surrounding the new debate on whether to abolish spousal tax splitting is notable, even by today’s standards of populist outrage.
An advantage for couples with widely divergent incomes
The row was sparked by Germany’s vice chancellor and finance minister, Lars Klingbeil, of the center-left Social Democratic Party (SPD), who said he wanted to abolish and replace the joint taxation of spouses’ income, a system that has been in place since 1958.
How exactly does spousal tax splitting work? In Germany, married couples (and since 2013, couples in civil partnerships), can choose to have their income assessed jointly by the tax authorities.
It means that the taxable income for both spouses together is halved – as if both partners had each earned an equal half of the income. Their tax liability is then determined by simply doubling the income tax due on one half.
As people who earn more pay higher taxes in Germany, this system benefits couples where one partner (and often this is still the man) earns significantly more than the other (in practice often the woman).
Costs of up to €25 billion per year
If for example one partner earns €60,000 ($70,512) a year and the other partner earns nothing, the couple will be taxed as if they earned €30,000 each. In this example, the couple would save nearly €5,800 in taxes per year compared to the amount they would owe if both partners filed their taxes separately. According to the Finance Ministry, spousal tax splitting costs the government a total of up to €25 billion annually.
Some critics have long viewed splitting as a tool to keep women out of the labor market, because the more a woman earns, the larger her tax burden becomes. Klingbeil seems to agree, arguing on ARD television in late March that the system was “out of step with the times.” The spousal splitting system reflects “a view of women and families that is completely at odds with my own,” he said.
Chancellor Merz said to be in favor of splitting
On Monday of this week, Klingbeil got some surprising support on this from Johannes Winkel, head of the youth wing of the conservative Christian Democratic Union (CDU).
“Given the demographic reality, the government should create incentives to ensure that both partners in a relationship are employed,” Winkel told the Funke Media Group. “In the future, tax relief should primarily be granted to married couples when they are facing hardships related to raising children.”
But the chancellor is a vocal skeptic of the proposal. “I am not convinced by the claim that joint filing for married couples discourages women from working,” Friedrich Merz said at a conference organized by the Frankfurter Allgemeine Zeitung newspaper. “Marriage is a relationship based on shared income and mutual support. And in a marriage, income must be treated as a joint income for tax purposes, not separately.”
Klingbeil’s alternative plan
At around 74%, the labor force participation rate for women in Germany is one of the highest in Europe, but half of them work part-time.
Klingbeil’s idea is to replace the existing system with a more flexible approach: Both partners would be able to distribute tax-free income among themselves in such a way that it minimizes their tax liability. This would allow the couple to continue enjoying a tax advantage, albeit not to the same extent as before. And whether one partner earns more than the other would become less important.
However, it remains to be seen whether Klingbeil will be able to push through his proposal. Aside from Germany, similar regulations offering tax benefits to couples exist in Poland, Luxembourg, Portugal and France.
This article was originally written in German.
Finance
Departing inspector general targets Council Office of Financial Analysis
The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.
Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.
In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.
But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”
“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.
Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.
Jim Vondruska/Jim Vondruska/For the Sun-Times
But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”
The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .
Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”
The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.
“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.
The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.
The office was created in 2014 to provide Council members with expert advice on fiscal issues.
For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.
Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.
Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.
The office was further required to produce activity reports quarterly, not just annually.
Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.
Two years ago, a bizarre standoff developed in the office.
Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.
The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.
“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.
Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.
Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.
Finance
Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant
Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments.
“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.”
In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.
After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.
“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.”
Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.
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