The European Commission will start issuing green bonds next month to finance the major coronavirus recovery plans of the EU countries. In total, the European Union aims to raise 250 billion euros in the coming years.
The 'EU bills' will be offered exclusively through auctions. The auction program will start on Wednesday. The Commission will hold two auctions per month. The auction program will also be used for bonds in addition to syndications. This will make the EU the largest issuer of green bonds worldwide, said Budget Commissioner Johannes Hahn last week.
According to Hahn, there is significant interest from private investors in green bond loans for the medium and long term. “Eleven EU countries already issue green bonds themselves, and four countries are now planning to as well,” Hahn said in Brussels. The green loans are intended to help achieve the EU's climate goals.
In recent months, the Commission has already issued 45 billion euros of regular bonds. It wants to allocate one third of the approximately 800 billion euros in subsidies and loans to 'green' initiatives, according to the Austrian. Brussels bases this on a list of definitions of economic activities considered sustainable.