---
title: "EU green bond fund aims to mobilise 20 billion euros"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284012461.md"
description: "The European Union has launched the Global Green Bond Initiative Fund to mobilise up to €20 billion for sustainable infrastructure in low- and middle-income countries. The fund aims to allocate at least 20% of its investments to the least developed countries, using euro-denominated and local currency bonds. Managed by Amundi, the initiative seeks to enhance the euro's role in global finance and attract private capital for climate goals, despite a recent slowdown in the green bond market. EU leaders emphasize the fund's importance in driving sustainable finance and investment in underserved regions."
datetime: "2026-04-24T13:32:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284012461.md)
  - [en](https://longbridge.com/en/news/284012461.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284012461.md)
---

# EU green bond fund aims to mobilise 20 billion euros

The European Union has partnered with financial institutions to launch the Global Green Bond Initiative Fund, aiming to mobilise up to €20 billion ($23.43 billion) in private capital for sustainable infrastructure projects in low- and middle-income countries.

The initiative reflects the EU’s broader push to expand climate-focused financing while supporting economic development in emerging markets.

The bloc confirmed the development on Friday, outlining the structure and objectives of the fund.

## Focus on least developed economies

The EU said the fund would allocate at least 20% of its investments to the world’s least developed countries.

These investments will be made through euro-denominated bonds as well as bonds issued in local currencies within those countries.

The approach is designed to deepen financial access and strengthen domestic capital markets.

Green bonds, which are issued to finance environmentally sustainable projects such as renewable energy, form the backbone of the initiative.

The European Commission stated that the structure of the fund would help create long-term financing channels for projects that contribute to climate and environmental goals.

## Strengthening euro’s global role

The European Commission said the initiative would also support the international standing of the euro.

“This will help strengthen local capital markets and promote the international use of the euro,” the Commission said in a statement.

By encouraging euro-denominated issuances alongside local currency bonds, the EU aims to position its currency more prominently in global sustainable finance markets while supporting financial stability in partner economies.

## Fund management and execution

The Global Green Bond Initiative Fund will be managed by French asset manager Amundi (AMUN.PA).

The involvement of a major European asset manager is expected to support the fund’s operational efficiency and investor outreach.

The EU highlighted that collaboration with financial institutions would play a key role in mobilising private capital at scale.

The structure is intended to attract institutional investors seeking exposure to sustainable assets in emerging markets.

## Europe underscores sustainable finance leadership

European Commission President Ursula von der Leyen emphasised the strategic importance of the initiative.

She said the fund demonstrates Europe’s continued leadership in sustainable finance.

“We will mobilise billions in private investment into our climate and environmental goals,” von der Leyen said.

Her remarks underline the EU’s commitment to aligning financial systems with climate objectives while driving investment into underserved regions.

## The Green bond market faces a recent slowdown

The launch comes at a time when the global green bond market has shown signs of weakness.

A report last year indicated that green bond issuance by governments, banks, and companies declined in 2025 compared to the previous year.

The slowdown was attributed to policy rollbacks on climate initiatives in both the United States and Europe.

Despite this trend, the EU’s new fund signals an effort to reinvigorate investor interest and expand sustainable financing channels.

By targeting both private capital mobilisation and market development, the Global Green Bond Initiative Fund represents a renewed push by Europe to accelerate climate-focused investments globally.

The post EU green bond fund aims to mobilise 20 billion euros appeared first on Invezz

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