April 24 (Reuters) – The European Union has formed, along with financial institution partners, the Global Green Bond Initiative Fund which aims to mobilise up to 20 billion euros ($23.43 billion) of private capital for sustainable infrastructure projects in low- and middle-income countries.
• The EU said on Friday the fund would target making at least 20% of its investments in the world’s least developed countries, via euro-denominated bonds and those issued in the local currency of such countries.
• Green bonds are sold by issuers to raise funds for projects seen as protecting the environment, such as renewable energy.
• “This will help strengthen local capital markets and promote the international use of the euro,” the European Commission said in a statement.
• The Global Green Bond Initiative Fund will be managed by French asset manager Amundi.
• With the fund, Europe underlines its leadership in sustainable finance, said European Commission President Ursula von der Leyen. “We will mobilise billions in private investment into our climate and environmental goals,” she added.
• A report last year said that the amount of green bonds sold by governments, banks and companies had slumped in 2025 from the previous year, as climate change policies were rolled back in the United States and Europe.
($1 = 0.8536 euros)
(Reporting by Sudip Kar-Gupta; Editing by Kirsten Donovan)
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