Green bond issuance featured prominently in the European Commission’s H1 2024 funding programme, with a more than €11 billion issued via NGEU Green Bonds over the semester, bringing the total amount of NGEU Green Bonds to €60 billion. The marked increase of issuance relative to H2 2023 (when the Commission issued €4.7 billion in the form of NGEU Green Bond) came on the back of increased reported green expenditures by Member States, to which green bond proceeds are allocated. Member States’ reported green expenditures now stand at €43 billion, over €15 billion higher than at the end of H2 2023. 

At the same time, the total size of the pool of planned projects eligible for NGEU Green Bond financing grew considerably following the update of the Recovery and Resilience programme in 2023. The most significant change in Member States’ Recovery and Resilience Plans came from the RePowerEU chapter which aims at increasing the focus of planned investments on energy security and diversification. As a result of RePowerEU measures having to adhere to strict criteria in the area of climate, the pool of NGEU Green Bond planned eligible expenditures now stands €266 billion, up from €189 billion in December 2023.

With the implementation of these green investments picking up pace, the Commission will maintain a steady expansion of NGEU Green Bond issuance in H2 2024. Particular focus will be placed on supporting the liquidity of existing lines, with issuance amounts calibrated to reported green expenditures from Member States, avoiding ‘over-issuance' of green bonds that cannot ultimately be matched by demonstrable climate-relevant expenditure. 

Details on NGEU Green Bond issuances, reported green expenditure and the pool of eligible assets can be found in our dedicated Dashboard here.