EU will be tapping the markets at an unprecedented scale next year and 30 percent of the funds should be raised through green bonds, European Commission President Ursula von der Leyen said at a landmark speech on Wednesday.
The 27 EU capitals agreed in July to borrow 750 billion euros ($891 billion) from public markets starting in 2021. The idea is to use those funds to invest in different sectors across the EU and thus help them to recover from the coronavirus crisis.
“We are world leaders in green finance and the largest issuer of green bonds worldwide,” von der Leyen told lawmakers in Brussels.
“And I can today announce that we will set a target of 30% of NextGenerationEU’s 750 billion euro to be raised through green bonds,” she said.
Green bonds are a financial instrument that are earmarked, specifically, to raise money for projects related to climate change or the environment.