The European Union, together with the European Investment Bank (EIB) and partner development finance institutions, has signed the Global Green Bond Initiative (GGBI) Fund. The initiative is designed to mobilise up to €20 billion in private capital for sustainable infrastructure projects in low- and middle-income countries, strengthening global investment in climate and environmental action.
The GGBI Fund forms a key pillar of the broader Global Green Bond Initiative under the EU’s Global Gateway strategy. It aims to unlock around €3 billion in green bonds in partner countries, with investments directed primarily toward first-time issuers such as governments, local authorities, and businesses. At least 20% of funding will be allocated to the least developed countries, while supporting both local currency and euro-denominated bonds to strengthen domestic capital markets and promote the international role of the euro.
EU leaders described the initiative as a major step in sustainable finance and global climate cooperation. The European Commission and EIB emphasised that the fund will help mobilise private investment at scale while aligning economic development with climate goals. It is also intended to support green infrastructure development and strengthen financial systems in partner countries through shared standards and expertise.
The fund is expected to attract around €2 billion from private investors, leveraging approximately €1 billion in public equity contributions. This includes nearly €800 million from a consortium of European development finance institutions led by the EIB, alongside participation from institutions in Spain, Italy, the Netherlands, Germany, and France. Additional support will come through EU guarantees under the European Fund for Sustainable Development Plus, as well as contributions from Luxembourg and the Green Climate Fund.
Managed by Amundi, the fund is part of a wider consortium of European financial institutions working to scale sustainable investment globally. Officials highlighted that the initiative will not only expand access to green finance but also support job creation, energy transition, and long-term economic resilience in partner regions.
The Global Green Bond Initiative is structured around three pillars: the investment fund itself, a technical assistance programme to help countries develop green bond markets, and a subsidy mechanism to reduce borrowing costs for issuers. Together, these tools aim to accelerate sustainable infrastructure financing and strengthen climate-aligned capital markets in developing economies.
Positioned within the EU’s Global Gateway strategy, the initiative reflects Europe’s broader effort to promote high-standard, transparent, and sustainable investment worldwide. It seeks to connect climate action with economic development by building strong green finance ecosystems across partner countries.
