NextGenerationEU for a stronger Europe
NextGenerationEU is a temporary recovery instrument whose goal is to support Europe's recovery from the coronavirus pandemic and help build a greener, more digital and more resilient Europe. To finance NextGenerationEU, the European Commission will raise up to EUR 800 billion on capital markets by end-2026.
This green bond is the first green bond issued under the NextGenerationEU programme. The European Commission intends to issue up to EUR 250 billion worth of green bonds over the coming five years. With its NextGenerationEU green bond programme, the European Commission is likely to become the world's largest green bond issuer, cementing Europe’s position as the leading region for sustainable finance.
In June, LuxSE marked the listing of the first bond issued under the NextGenerationEU recovery instrument, a EUR 20 billion conventional bond that made history for being the largest institutional, single tranche Euro-denominated bond ever issued.
Green and social centre stage
In September, the European Commission put forward its NextGenerationEU Green Bond Framework, which is fully compliant with the International Capital Market Association’s Green Bond Principles and reviewed by a second party opinion provider, Vigeo Eiris, part of Moody's ESG Solutions. Under the framework, the European Commission provides detailed assurance on investing green bond proceeds into the green transition and will provide both best-practices allocation and impact reports to investors.
The NextGenerationEU Green Bond Framework follows adoption of the Social Bond Framework put forward by the European Commission in October 2020. Since then, the European Commission has issued EUR 89.6 billion worth of social bonds under the EU SURE programme, to protect jobs and workers across Europe. The entirety of these social bonds are listed on LuxSE and displayed on LGX, the world’s leading platform for sustainable securities currently encompassing more than 1,100 sustainable bonds raising EUR 570 billion for specific green and social projects and sustainable development across the world.