The European Commission has unveiled its NextGenerationEU (NGEU) Green Bonds Allocation and Impact Report 2024, detailing the allocation of proceeds from its green bond issuances and their anticipated environmental impacts. The report highlights that investments funded by the program are expected to reduce greenhouse gas (GHG) emissions by an estimated 55 million tons annually across the EU, surpassing last year’s estimate of 44.2 million tons.
Launched in 2021 as part of the EU’s €800 billion recovery initiative, NextGenerationEU aims to promote economic recovery from the COVID-19 pandemic while accelerating the EU’s green and digital transitions. A critical feature of the program is its commitment to green financing, with 30% of the NGEU budget funded through green bonds. Member States are required to allocate at least 37% of their Recovery and Resilience Plans (RRPs) to sustainable projects addressing climate change.
Key Highlights of the Report:
- €65 billion in NGEU Green Bonds issued since October 2021, with eligible investments under categories such as clean energy, transport infrastructure, and climate adaptation.
- Allocation of funds to major sectors:
- Energy efficiency: 42%
- Clean transport & infrastructure: 34%
- Clean energy & network: 8.7%
- A sharp increase in green expenditure eligibility to €265 billion, up from €191 billion in 2023.
The report also emphasizes the environmental benefits of NGEU investments, with clean energy and network projects expected to reduce emissions by 21.8 million tons annually, followed by clean transport and infrastructure at 20.4 million tons.
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