EIB backs sustainable finance
The European Investment Bank has issued its pioneering Sustainability Awareness Bond, worth €500 million. High-impact water projects are the first to benefit from the funding.
In accordance with the UN Sustainable Development Goals, the European Investment Bank issued its first Sustainability Awareness Bond. The funding amounting to €500 million will be put towards water quality and infrastructure projects in countries as diverse as Burkina Faso and Germany. “We have selected the water sector as a starting point, as it is a mature sector, with well-defined impact indicators,” said Werner Hoyer, President of the EIB. Other sectors such as health and education are next in line, the EIB said.
Sustainability amd Climate Awareness complement each other
The new Sustainability Awareness Bonds complement the EIB’s Climate Awareness Bonds (CABs), which support renewable energy and energy efficiency projects worldwide. The EIB pioneered the green bond market in 2007. Since then, it has issued more than €23 billion equivalent of CABs, and continues to be one of the largest issuers of green bonds. “The launch of the EIB’s new Sustainability Awareness Bonds today demonstrates the EU Bank’s firm commitment to unlocking finance for high impact projects in sustainable sectors beyond climate,” commented Hoyer. “Sustainability Awareness Bonds build on the global success of green bonds, ensuring the confidence of socially responsible investors through rigorous transparency and market standards.”
Focus on high-impact investments
Sustainability Awareness Bonds will focus on high-impact investments selected on the basis of EIB’s sector and impact definitions, which will enable detailed reporting and transparency. This approach will also contribute to ongoing taxonomy discussions of the European Commission’s Technical Expert Group on Sustainable Finance.