Next Generation EU – Green Bond Framework

Author (Corporate)
Series Details SWD (2021) 242
Publication Date 07/09/2021
Content Type ,


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).

Further information:

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).

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Commentary and Analysis
ING Think: Article, 08/09/2021: Rates Spark: Autumn greens
Euronews, 13/09/2021: Green bonds: Can the EU really become the world's largest issuer of climate-conscious finance?
The Economist, 09/10/2021: A wave of green government bonds is flooding markets
ING Think: Article, 12/10/2021: EU: Easing the green bond shortage

Euronews: Next, 07/09/2021: EU Commission plans first recovery green bond in October
Bloomberg, 07/09/2021: EU to Kick Start Its Landmark Green Bond Sales in October
EurActiv, 07/09/2021: Gas excluded from green bond financing under recovery fund
Associated Press, 07/09/2021: EU commission to issue 250 billion euros in green bonds
EUObserver, 08/09/2021: EU green bonds may still finance future gas projects
Reuters, 12/10/2021: EU launches first green bond with record size and demand
Bloomberg, 12/10/2021: EU to Kick Off Green Bond Sales in Largest Offer to Raise €12 Billion
Deutsche Welle, 12/10/2021: EU 'green bonds' get off to a record start

European Commission: Press Release, 07/09/2021: NextGenerationEU: European Commission gearing up for issuing €250 billion of NextGenerationEU green bonds
European Commission: Questions and Answers: NextGenerationEU Green Bond framework and funding plan update (7 September 2021)
European Commission: Remarks by EU-Commissioner Johannes Hahn at the press conference on the NextGenerationEU Green Bonds Framework (7 September 2021)
European Commission: Press Release, 12/10/2021: NextGenerationEU: European Commission successfully issues first green bond to finance the sustainable recovery
European Commission: Questions and Answers: NextGenerationEU first green bond issuance (12 October 2021)
European Commission: Remarks by Commissioner Hahn at the press conference on the issuance of the first NextGenerationEU green bond (12 October 2021)

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