Brussels: The European Union and partner development finance institutions have inaugurated the Global Green Bond Initiative (GGBI) Fund, a new public-private investment mechanism designed to attract up to £20 billion in private capital for sustainable infrastructure projects in low and middle-income countries.
According to Emirates News Agency, European Commission President Ursula von der Leyen emphasized the EU's leadership in sustainable finance during the signing. She stated, "With the Global Green Bond Initiative Fund, Europe underlines its leadership in sustainable finance. We will mobilise 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 GGBI Fund is a key component of the European Union's Global Gateway strategy, focusing on unlocking up to £3 billion in green bonds in partner countries to finance activities that support climate and environmental goals. It is dedicated to investing in bonds issued in primary markets, with a focus on first-time issuers such as governments, local authorities, and businesses.
A significant portion, at least 20%, of the investments will be directed towards the world's least developed countries, supporting bonds in both local currency and euro. This initiative aims to strengthen local capital markets and enhance the international use of the euro. As a global leader in green bond issuance, the EU is committed to promoting high environmental standards and sharing best practices with its partner countries.
