EC adopts framework to issue first green bond in October

NextGenerationEU green bond framework puts EC on track to issue €250bn in green bonds between now and the end of 2026

The European Commission (EC) has this week adopted a new framework to help it prepare to issue its first green bond in October.

The EC said this independently evaluated green bond framework puts it on track for its plans to issue €250bn in green bonds between now and the end of 2026.

Commissioner in charge of budget and administration, Johannes Hahn, said the EU’s plans for issuance will make it the “largest green bond issuer in the world”.

He added: “This is also an expression of our commitment to sustainability and places sustainable finance at the forefront of the EU’s recovery effort.”

See also: – Three things you need to know about green bonds

The NextGenerationEU (NGEU) green bond framework complies with the International Capital Market Association’s principles for green bonds, and has also been reviewed by Vigeo Eiris. It is also aligned with the EU Green Bond standard.

The NGEU green bonds the EC will issue in October will help fund things that are climate-related in the Recovery and Resilience Plan. Each member state has to dedicate at least 37% of their plan to climate-related investments and then report back.

“Judging from the Commission’s experience in the first issuance of social bonds and the growing green bond market, we expect demand for NGEU green bonds to be high,” Hahn said.

The EC also plans to issue around €80bn of long-term bonds this year, to be topped up by tens of billions of euros of short-term EU-bills, which will be available by auction from 15 September.


Natasha Turner

Natasha is global editor at ESG Clarity, part of Mark Allen Financial, and has been a financial journalist for seven years. She has been shortlisted for Story of the Year and Investment Journalist of the...