The European Investment Bank (EIB) and the United Nations Green Climate Fund (GCF) have signed a climate finance agreement, which will see some €200 million committed to the Global Green Bond Initiative (GGBI) Fund, a new flagship EU financing programme.
The GGBI Fund, which is being managed by Amundi, Europe’s largest asset manager, is targeting a total size of €3 billion, and will aim to mobilise up to €20 billion in private capital for sustainable infrastructure projects in low- and middle-income countries.
Multilateral cooperation
“Our partnership with the Green Climate Fund shows how multilateral cooperation can scale up climate action where it is needed most,” commented EIB Vice-President Ambroise Fayolle. “Together, we are supporting sustainable growth, resilience and better living standards in low- and middle-income countries.”
Initially, the €200 million investment in the GGBI will help to de-risk investments in 10 emerging economies, stimulating country-led sustainability projects in areas such as energy and transport.
“The Global Green Bond Initiative is a landmark partnership with the European Commission and European Investment Bank that will enhance country ownership of national climate action and fill critical gaps in climate financing gaps,” added the Green Climate Fund’s chief investment officer Amer Baig. “The partnership supports GCF’s ambition to be the climate partner of choice for developing countries.”
Global Gateway
The GGBI Fund forms part of the EU’s Global Gateway strategy, which is comprised of three complementary pillars – along with the GGBI Fund, it includes a comprehensive technical assistance programme, under which the EU will share expertise and support issuers in partner countries in designing and issuing both green bonds and projects, and the Green Coupon Subsidy Facility (GCSF), which seeks to reduce borrowing costs for issuers facing particularly prohibitive interest rates.
Valérie Baudson, chief executive of Amundi, said the project demonstrates the ability to build “impactful blended finance investment solutions. The GGBI Fund aims to mobilise public and private capital to finance climate transition in emerging markets – one of the defining challenges of our time.
“Expertise, innovation and collaboration are essential levers to direct capital where it is needed most. We are very proud to be part of this collective initiative.” Read more here.
