|Author (Corporate)||European Commission|
|Series Details||SWD (2021) 242|
|Content Type||News, Policy-making|
Staff Working Document published by the European Commission on 7 September 2021, setting out an overview of its Green Bond Framework in the framework of NextGenerationEU (NGEU).
NextGenerationEU is an instrument aimed at supporting the European Union's recovery from the COVID-19 (coronavirus) pandemic while encouraging the twin green and digital transitions as envisaged by the European Commission. To finance it, the Commission was authorised to raise up to around €800 billion from the capital markets until the end of 2026. In September 2020, the Commission announced its intention to raise 30% of those funds through the issuance of green bonds and use the proceeds to finance green investments and reforms.
The NGEU Green Bond Framework was drafted in line with the green bond principles of the International Capital Market Association (ICMA). It was also reviewed by a second party opinion provider. The framework is also aligned to a certain extent with the European Green Bond Standard (EUGBS).
The first issuance of NGEU Green Bonds took place on 12 October 2021, raising €12 billion. The 15-year bond was more than 11 times oversubscribed. The proceeds would go on to finance the share of climate-relevant expenditure in the Recovery and Resilience Facility (RRF).
|Subject Categories||Economic and Financial Affairs, Environment|
|Subject Tags||Financial Services, Sustainable Development|
|International Organisations||European Union [EU]|