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As part of the NextGenerationEU recovery plan, whose three priorities are sustainable development, digital and economic resilience, the European Commission has adopted a framework to make up to €250 billion available for a green bond issue.
This framework assures investors that the funds raised will be allocated to green projects and that the Commission will report on the environmental impact of these projects.
NextGenerationEU’s green bonds follow the principles set out by the International Capital Markets Association (ICMA) as a market standard. It also demonstrates to the investment community how the funds raised will be used for environmental purposes.
In concrete terms, NextGenerationEU’s green bonds will finance the climate spending portion of the recovery plan. Each Member State is required to spend at least 37% of its national recovery and resilience plan on climate-friendly investments and reforms. Member States will therefore have to inform the Commission of their green spending.
https://ec.europa.eu/commission/presscorner/detail/en/ip_21_4565
