EU continues to be a global leader on sustainable finance

More than three years after the first transaction of the NextGenerationEU (NGEU) Green Bonds, the EU has issued more than €65 billion of NGEU Green Bonds, setting the EU on track to becoming the largest issuer of Green Bonds in the world.

In line with the announcement of President von der Leyen in her State of the Union address of 2020, the European Commission will continue to work towards issuing 30% of the NextGenerationEU financing through Green Bonds.

The European Commission has confirmed that NGEU Green Bonds are expected to enable €264.6 billion of green investments in the nine sectors set out in the NGEU Green Bond Framework, including clean transport, clean energy and energy efficiency, confirming the EU’s leading role in sustainable finance.

The full implementation in the coming years of all measures that can be funded by NGEU Green Bonds will provide a significant contribution to the EU’s green transition, reducing GHG emissions by an estimated 55 million tons per year within the Union. This is 1.5% of all GHG emissions in the EU and equivalent to the combined emissions of 15 million EU households or to replacing 38 million of the EU’s 250 million internal combustion cars with electric vehicles. These are the results of this year’s comprehensive analysis of the expected climate impact of the NextGenerationEU Green Bonds allocation published in today’s annual report.

Green Bonds are also an excellent opportunity for investors being part of the solution: tackling the challenges of our generation and contributing to an environment in which our children can live is the highest return on investment.

The European Commission launched a dedicated Green Bond Dashboard in 2022 to provide full transparency about how the financing raised from NextGenerationEU green bonds is invested. It does so by providing a real-time overview of the measures and related expenditures that receive financing from the green bonds. This data will further reassure investors that the Commission is issuing green bonds in line with the highest standards and best market practices.

Overall, the EU’s presence in the capital markets has increased tenfold in just five years. Today, the EU’s total bonds outstanding have surpassed the half-trillion Euro mark.

In a volatile global environment, liquid and safe collateral EU bonds increase the pool for safe euro-denominated assets and offer an opportunity to diversify risks.

“The full roll-out of investments financed by NGEU Green Bonds is expected to reduce the EU’s greenhouse gas (GHG) emissions by 55 million tonnes per year – equivalent to GHG emitted by 15 million EU households. NGEU Green Bonds provide a unique combination to investors – they are safe, sustainable, and successful!”