The European Union has emerged as one of the world’s largest green bond issuers, according to the 2025 edition of the NextGenerationEU (NGEU) Green Bonds Annual Allocation and Impact Report published on Tuesday. The report confirms that the EU has issued €78.5 billion ($84.5 billion) in NGEU Green Bonds to date, with the financed projects expected to avoid around 14 million tonnes of CO₂ emissions each year.
Under the Recovery and Resilience Facility, Member States are required to allocate at least 37% of their Recovery and Resilience Plans to climate-related investments and reforms, including renewable energy deployment, green infrastructure, biodiversity protection and clean transport. The report notes that the green bonds are helping fund projects across the bloc, giving investors a direct role in supporting EU climate objectives.
Climate-related measures approved under the Recovery and Resilience Facility — valued at €262.8 billion ($283 billion) as of 1 August 2025 — have the potential to cut annual EU greenhouse gas emissions by 53.4 million tonnes, equivalent to 1.5% of the bloc’s total emissions in 2022.
The European Commission plans to continue updating its online dashboard and publishing annual reports to track how NGEU Green Bond proceeds are allocated and the impacts achieved.
The NGEU Green Bond framework, adopted in 2021, aligns with the International Capital Market Association’s Green Bond Principles, ensuring standardised use of proceeds, management and reporting. The 2025 report builds on previous editions, with all data compiled up to 1 August 2025.
