The EU drew huge demand on Tuesday for its first “inexperienced bonds”, elevating 12 billion euros ($14 billion) on the planet’s greatest issuance of sustainable debt, the European Fee mentioned.
“This marks the biggest inexperienced bond order e-book ever in world capital markets, and the biggest inexperienced bond ever issued, not simply in Europe however on the planet,” EU funds commissioner Johannes Hahn informed reporters.
The cash raised by the EU fee is to be handed out to member states to be spent on cleaner power, power effectivity and different methods to realize the EU aim of carbon neutrality by 2050.
The so-called inexperienced bond nevertheless got here earlier than the EU has finalised its personal record of what investments ought to be thought-about environmentally pleasant, with international locations very divided on the function of nuclear power.
As a substitute, the EU mentioned it was adhering to the rules of the Worldwide Capital Market Affiliation and different requirements.
The EU sale “attracted huge demand” which augured nicely for world issuance of comparable inexperienced debt, mentioned Johann Ple, of AXA Funding Managers.
“This helps our view that complete inexperienced bond issuance in 2021 ought to double from 2020, reaching 400 billion euros,” he mentioned.
The sale of the 15-year debt was the primary within the EU’s aim of elevating 250 billion euros in sustainable debt by 2026 that may make the European Union the most important emitter of inexperienced debt.
It makes up about one-third of the 800 billion euros agreed by EU member states for Europe’s pandemic restoration plan that depends on shared borrowing by the EU govt.
Plans for the EU to provide you with its personal record of power sources thought-about inexperienced and due to this fact appropriate for sustainable financing — referred to as the funding taxonomy — are at present blocked.
Germany is resisting requires nuclear power to be thought-about an environmentally appropriate funding, reflecting its nationwide anti-nuclear stance.
However 10 EU member states, together with France which largely runs on nuclear energy, on Sunday collectively backed a press release supporting nuclear power, stressing that it has a serious function to play in opposition to world warming.