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The European Union, along with partner financial institutions, has launched the Global Green Bond Initiative Fund to mobilise up to EUR 20 billion (USD 23.43 billion) in private capital for sustainable infrastructure projects across low- and middle-income countries. The fund will prioritise investment in the least developed nations, with at least 20% of allocations directed there through euro-denominated and local currency bonds. Managed by French asset manager Amundi, the initiative aims to support climate-focused projects such as renewable energy while also strengthening local capital markets and expanding the international use of the euro.
The European Union, together with financial institution partners, has set up the Global Green Bond Initiative Fund to attract private investment worth up to EUR 20 billion (USD 23.43 billion) for sustainable infrastructure projects in low- and middle-income countries.
The fund is structured to ensure that at least 20% of investments flow into the world’s least developed countries. Investments will be made through euro-denominated bonds as well as bonds issued in local currencies of the recipient countries, supporting both project funding and domestic financial systems.
Green bonds are typically used by governments, banks, and companies to raise funds for environmentally focused projects, including renewable energy and other climate-related infrastructure. This mechanism has been widely used in sustainable finance markets over recent years, although global issuance had seen a slowdown in 2025 compared with the previous year, partly influenced by policy shifts related to climate action in both the United States and Europe.
The European Commission stated that the initiative is expected to support the development of local capital markets while also contributing to the wider international use of the euro in financial transactions. It further highlighted that the fund is intended to deepen sustainable investment flows into emerging economies.
Management of the Global Green Bond Initiative Fund has been assigned to French asset manager Amundi. The institution will oversee deployment of capital across eligible projects in coordination with participating financial partners.
European Commission President Ursula von der Leyen noted that the initiative reflects Europe’s continued role in sustainable finance. She indicated that the structure is aimed at mobilising large-scale private investment toward climate and environmental objectives, reinforcing the region’s focus on green transition financing.
Source Reuters
5th Jun, 2025
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