The European Investment Bank (EIB) and the United Nations Green Climate Fund (GCF) have signed their first financing agreement to scale up climate action in developing countries. The partnership is designed to mobilise private investment and expand funding for sustainable infrastructure through a new EU-backed initiative.
Under the agreement, the GCF will commit €200 million to the Global Green Bond Initiative (GGBI), a flagship programme of the European Union’s Global Gateway strategy. The initiative aims to support climate-related investments in low- and middle-income countries by expanding access to green bond financing.
The Global Green Bond Initiative Fund has a target size of €3 billion and will be managed by Amundi, a major European asset manager. It is expected to mobilise up to €20 billion in private capital for sustainable infrastructure projects across emerging markets, helping scale up investment in energy, transport and other climate-related sectors.
Officials involved in the agreement highlighted that the partnership is designed to reduce investment risk and encourage greater participation from private investors. By combining public funding with private capital, the initiative seeks to address financing gaps that limit the pace of climate action in developing economies.
The programme is structured around three key components: a green bond investment fund, technical assistance to help countries develop and issue green bonds, and a coupon subsidy mechanism to reduce borrowing costs for high-risk issuers. These tools are intended to make climate finance more accessible and affordable for developing countries.
The EIB, acting as an accredited entity of the GCF, described the agreement as an important step in strengthening multilateral cooperation on climate finance. The partnership reflects broader efforts under the EU’s Global Gateway strategy to support sustainable infrastructure and promote long-term economic resilience in partner countries.
The Green Climate Fund, the world’s largest multilateral climate fund dedicated to developing countries, currently supports projects across more than 130 countries. The new initiative is expected to expand its ability to deliver large-scale climate investments aligned with the Paris Agreement.
The collaboration between the EIB, GCF and private-sector partners marks a significant move toward scaling blended finance solutions that aim to unlock capital for climate transition projects worldwide.
