The European Commission will issue green bonds worth up to € 250 billion

The European Commission (EC) will issue so-called green bonds worth up to € 250 billion in the autumn. The amount will represent 30 percent of the total amount allocated to the NextGenerationEU program, which is used to finance the reconstruction of the 27-member block after the crisis caused by the coronavirus pandemic. The commission announced it on Tuesday. "The framework provides investors with confidence in these bonds that funds will be allocated to environmental projects and that the commission will report on their environmental impact," the commission said. It plans to issue the first green bonds in October, depending on market conditions. "The EU's intention to issue up to € 250 billion in green bonds from now until the end of 2026 will make us the world's largest issuer of green bonds," said Johannes Hahn, the European Commissioner responsible for the Union budget. The EU executive estimates that it will raise up to € 800 billion in capital markets by the end of 2026 to finance economic incentives. Member States have agreed on a Union budget and a package of support measures totaling € 1.8 trillion. Under the Europe Green Agreement, the EU has committed itself to reducing global warming emissions by 55 percent by the end of this decade. By 2050, the European bloc should become carbon neutral. In order to receive their share of the Recovery Fund, Member States must allocate at least 37 percent of their national climate plans to climate protection projects. The Commission has also confirmed plans to issue long-term bonds totaling around € 80 billion this year, complemented by "tens of billions of euros in EU short-term vouchers".