The European Union has issued over 65 billion euros in NextGenerationEU (NGEU) green bonds, positioning itself as the world's largest issuer of such bonds.

The European Commission aims for 30% of NGEU financing to come from green bonds, with expected investments totaling 264.6 billion euros across sectors like clean transport, clean energy, and energy efficiency.

Eligible investment categories under the NGEU program include clean energy and networks, climate change adaptation, clean transport, energy efficiency, and biodiversity rehabilitation.

At least 37% of the Recovery and Resilience Plans (RRP) expenditures from member states will be dedicated to sustainable investments and reforms, particularly in green infrastructure and renewable energy.

Measures funded by NGEU green bonds are projected to reduce greenhouse gas emissions in the EU by approximately 55 million tons annually.

This reduction equates to 1.5% of total greenhouse gas emissions in the EU, comparable to the emissions from 15 million EU households or the removal of 38 million internal combustion vehicles.

The European Commission's annual report emphasizes that green bond financing will play a crucial role in the ecological transition, reinforcing the EU's leadership in sustainable financing.

Johannes Hahn, the Commissioner for Budget and Administration, highlights that NGEU green bonds provide investors with a unique blend of security, sustainability, and success.

Member states are required to report to the European Commission on climate-relevant measures, which facilitates the issuance of NGEU green bonds for financing these investments.

So far, expenditures funded by NGEU green bonds have primarily focused on energy efficiency (42%), clean transport and infrastructure (34%), and clean energy and networks (8.7%).