EU becomes major Green Bond issuer

This article is brought to you in association with the European Commission.

he EU has become one of the largest issuers of green bonds in the world, according to the 2025 edition of the NextGenerationEU (NGEU) Green Bonds Annual Allocation and Impact Report, published yesterday. It shows that, a total of €78.5 billion worth of NextGenerationEU Green Bonds have been issued to date, which will avoid an estimated 14 million tons of CO₂ per year being released.  

At least 37% of spending in Member States’ Recovery and Resilience Plans (RRPs) is set to be used for sustainable investments and reforms in areas such as green infrastructure and renewable energy. NextGenerationEU Green Bonds reflect the Commission’s commitment to supporting green investments and reforms, while allowing investors and markets to be part of the solution. The bonds finance projects all across the European Union, offering support in areas such as clean and efficient energy, biodiversity, and clean transport.

The full implementation of climate-related projects under the Recovery and Resilience Facility (worth €262.8 billion on 1 August 2025) has the potential to reduce the EU’s greenhouse gas emissions by 53.4 million tons of CO₂ per year. This would be equivalent to 1.5% of the aggregate 2022 EU greenhouse gas emissions.

The Commission will continue to report on the pool of expenditure that can be financed with funds raised from NextGenerationEU Green Bonds through its regularly updated online Dashboard and its annual reports.

Background

NextGenerationEU Green Bond issuances are underpinned by the NGEU Green Bond framework. The framework, adopted in September 2021, is aligned with the Green Bond principles of the International Capital Market Association, ensuring alignment with market standards on the use, management and reporting of proceeds.

The annual NGEU Green Bonds Impact and Allocation report is the primary means for communicating with investors and stakeholders on the use of proceeds and the climate impacts of NGEU Green Bond financed investments.

The 2025 edition of the report builds on previous NGEU Green Bonds Allocation and Impact Reports. The information included in the report is based on a cut-off date of 1 August 2025.