Global Green Bond Initiative (GGBI)

The Team Europe Proposal will support partner countries to:

• Mobilise capital from institutional investors to finance - through green bonds - their climate and environmental projects.
• Increase and diversify their access to private capital for an inclusive and sustainable transition in which no one is left behind.
• Develop credible green bond frameworks.

 
The Global Green Bond Initiative will facilitate the flow of private capital from institutional investors into climate and environmental projects in EU partner countries, thereby increasing their access to capital. This initiative announced by President of the European Commission Ursula von der Leyen in June 2023, will provide technical assistance to green bond issuers in emerging markets and developing economies (EMDEs) and by crowding in private investors through a dedicated de-risked fund, which will act as an anchor investor in these economies’ green bonds. The fund's anticipated impact could spur green investments totalling up to €15-20 billion.

Green bonds are debt sold to investors with a commitment to use all the proceeds for green investments. First launched in 2007, they have become globally recognised as a key tool in mobilising capital from private investors for projects with environmental impact, thus helping to finance sustainable development. The GGBI coalition also sees potential in green bonds for developing and strengthening local capital markets in developing countries.
The GGBI intends to combine different types of possible interventions to strengthen the green bond markets so as to deliver maximum impact. Amongst others, the GGBI intends to:

• mobilise private investors through a dedicated public-private fund, which would act as anchor investor acquiring a portion of green bonds issued by private, sovereign, and sub-sovereign entities in EMDEs and attract further investors at transaction level;
• support green bond issuers by providing capacity building and technical assistance at country level. This may include helping partner countries develop credible and interoperable green bond frameworks to identify a pipeline of green projects (including infrastructure projects) and to carry out the issuance ensuring high quality reporting.  

As part of this initiative, the UN’s Green Climate Fund (GCF) is envisaging an equity investment through the GRDP project (Green and Resilience Debt Platform), led by the EIB. The investment by the GCF will be highly beneficial as it will help direct funds into locally issued green bonds.  
In this regard, an Environmental and Social Management Framework (ESMF) was prepared, and is accessible for consultation, both online and at the EU Delegation.