The European Union and partner development finance institutions have signed the Global Green Bond Initiative (GGBI) Fund, a new public-private investment tool to mobilize up to $23 billion (€20 billion) of private capital for sustainable infrastructure projects in low and middle-income countries.
European Commission President Ursula von der Leyen said that, “With the Global Green Bond Initiative Fund, Europe underlines its leadership in sustainable finance. We will mobilize billions in private investment into our climate and environmental goals.
“Together with our partners, we are reshaping how the world funds its future. This is more than finance; it’s a strategic choice to align economic resilience with climate justice – for our planet and for generations to come,” the President added.
The GGBI Fund is one of the three pillars of the Global Green Bond Initiative, a flagship of the European Union’s Global Gateway strategy. It aims to unlock up to $3.5 billion (€3 billion) in green bonds in partner countries and help finance activities that support climate and environmental goals.
Global Gateway is the European Union’s strategy to boost smart, clean, and secure links in digital, energy, and transport, and to strengthen health, education, and research systems worldwide.
The fund will invest exclusively in bonds issued in primary markets, prioritizing first-time issuers like governments, local authorities, and businesses. At least 20 percent of investments will target the world’s least developed countries, with support for bonds in both local currency and euros.
This will help strengthen local capital markets and promote the international use of the euro. As a leading worldwide green bond issuer, the European Union will promote high environmental standards and share best practices with partner countries.
