‘green’ bonds could reduce CO₂ emissions by 1.2% per year, according to European Commission

Two years after the start of green bond issuances to finance the NextGenerationEU recovery plan (see EUROPE 12810/23), the European Commission has quantified for the first time the climate impact of the measures financed by the proceeds of these bonds, in a report dated Friday 1 December. This impact could amount to a 1.2% reduction in CO₂ emissions per year.

As of August 2023, the programme had raised €44.3 billion in green bonds, an increase of 58% on the €28 billion raised up to October 2022. But the amount of bonds eligible for financing all the projects linked to climate policies in the national recovery and resilience plans reportedly reaches a total of €190.6 billion.

According to the Commission’s report, 44 million tonnes of greenhouse gas emissions could be avoided each year thanks to these investments, representing an annual reduction of 1.2% of the European Union’s total CO₂ emissions.

This result demonstrates “the EU’s unwavering commitment to sustainable finance and the transition towards a greener future”, said Johannes Hahn in a press release. The European Commissioner for Budget also welcomed the relevance of the report for the investors concerned.

Link to the report: https://aeur.eu/f/9ww (Original version in French by Bernard Denuit)