NextGenerationEU Green Bonds investments can reduce EU greenhouse gas emissions by 1.2%

© European Union, 2021, Source: EC - Audiovisual Service© European Union, 2021, Source: EC - Audiovisual Service

The full implementation of NextGenerationEU (NGEU) measures financed by the NGEU Green Bonds can reduce greenhouse gas emissions by 44 million tonnes per annum, equivalent to 1.2% of the EU’s aggregate greenhouse gas emissions. These are the results of the first comprehensive quantification of the expected climate impacts of the NextGenerationEU Green Bonds allocation published today in a special report.

More than two years after the inaugural NGEU Green Bond issuance, the Green Bond programme has brought close to €50 billion of highly rated Green Bonds to the market with the potential to become the world’s largest green bond programme.

The NGEU Green Bonds Allocation and Impact Report shows that NGEU Green Bonds are backed by a significant pool of projects and climate-related investments in the national Recovery and Resilience Plans (RRPs), from clean transport to infrastructure and energy efficiency, eligible for green bond financing with a total volume of €190 billion.

The impact of the implementation of all measurable climate-relevant actions under the RRPs will increase progressively until 2026 and will be maintained well beyond this year for the lifetime of the financed investments under the Recovery and Resilience Facility.

Next Steps

The impact reporting methodologies presented in the report will form the foundation for future annual reports that will track progress in that area.


Under the NGEU instrument at least 37% of spending in Member States’ RRPs will be used for sustainable investments and reforms in areas such as green infrastructure and renewable energy. Proceeds from NGEU Green Bonds are used to finance these investments. The report provides a detailed update on the expenditures to be financed through NGEU Green Bond issuance, and progress with their implementation.

NGEU Green Bond issuances are underpinned by the NGEU Green Bond framework. The framework, adopted in September 2021, is aligned with the Green Bond principles of the International Capital Market Association, ensuring alignment with market standards on the use, management and reporting of proceeds.

The annual NGEU Green Bonds Impact and Allocation report is the principal means for communicating with investors and stakeholders on the use of proceeds and the climate impacts of NGEU Green Bond financed investments.

This edition of the report builds on last year’s NGEU Green Bonds Allocation and Impact Report, published in December 2022 and allows for the very first time for a quantification of the climate impacts of investments financed by the NGEU Green Bond programme. The information included in the report is based on a cut-off date of 1 August 2023. Changes in the national RRPs (e.g., in relation to REPowerEU) that take place after the cut-off date will be reflected in the 2024 NGEU Breen Bond allocation and impact report.