Meer documenten
Questions and answers on NextGenerationEU Green Bonds Annual Allocation and Impact Report
Why is the EU issuing green bonds?
Under NextGenerationEU (NGEU), at least 37% of spending in Member States' Recovery and Resilience Plans (RRPs) is used for sustainable investments and reforms in areas such as green infrastructure and renewable energy. Thanks to the accompanying requirements for Member States to report to the Commission on the implementation of climate-relevant measures, the Commission is able to issue NGEU Green Bonds to finance these investments.
NextGenerationEU Green Bonds issuances:
- Bring a highly rated and liquid green asset to the market, allowing a wide range of investors access to green investments;
- Enable the European Commission to access a wider range of investors;
- Allow investors to diversify their portfolio of green investments with a highly rated liquid asset;
- Further boost the green bond market and serve as an inspiration to other issuers;
- Strengthen the role of the EU and of the euro in the sustainable finance markets.
Where does the Commission stand on its NextGenerationEU Green Bond issuances?
The scale of NGEU Green Bond issuances depends on the green expenditure reported by EU Member States under the NGEU Recovery and Resilience Facility. Based on Member States' Recovery and Resilience Plans as of 1 August 2025, which was the cut-off date for the report, €262.8 billion worth of expenditure would be eligible for financing under the NextGeneration Green Bond programme. This pool of eligible expenditure may change as Member States revise their plans in the context of the end-2026 timeline for the wider NextGenerationEU programme. NGEU Green Bonds are calibrated to actual green expenditure implemented and reported by Member States.
By early December 2025, the European Commission had issued €78.5 billion of NextGenerationEU Green Bonds (in line with the 80€ billion of reported green expenditure from Member States). Subject to the Commission receiving the required reported expenditure from Member States, new NextGenerationEU Green Bond issuances will continue to take place, including during the planned refinancing phase of the NextGenerationEU programme post 2026.
The Commission provides regularly updated information on both issuances and reported expenditure from Member States on its on-line NGEU Green Bond Dashboard.
How does the issuance of NGEU Green Bonds help achieve the EU climate targets such as the 55% reduction by 2030, and climate neutrality by 2050?
The NGEU Green Bonds proceeds help finance climate-relevant investments in Member States' Recovery and Resilience Plans. These plans must be consistent with national energy and climate plans. NGEU Green Bond proceeds hence contribute directly to achieving national climate plans.
In addition, NGEU Green Bonds further bolster the European sustainable finance markets, by further increasing much needed financial flows to green economic activities.
It is estimated that full implementation of all climate-relevant actions under the NGEU programme can reduce greenhouse gas emissions by 53.4 million tons per year, which is equivalent to 1.5% of aggregate EU greenhouse gas emissions in 2022. The realised impact of climate-relevant actions up until 1 August 2025 is estimated at 14.0 million tons of CO₂ per year avoided.
What is the NGEU Green Bond Allocation and Impact report?
The annual NGEU Green Bonds Impact and Allocation report is the primary means for communicating with investors and stakeholders on the use of proceeds and the climate impacts of NGEU Green Bond financed investments.
The 2025 edition of the report constitutes the third comprehensive NGEU Green Bond allocation and impact report.
The report presents:
- An update, on the amount and break-down of each Member State Recovery and Resilience Facility (RRF) expenditure that is eligible to receive financing from NGEU Green Bonds based on approved Recovery and Resilience Plans (RRPs). For the first time, the report also includes an indicative alignment of the NGEU Green Bond Pool to statistical classification of economic activities (NACE) categories;
- The evolution of NGEU Green Bond issuances and how the net proceeds have been allocated;
- An update of the assessed EU Taxonomy alignment of the measures in the NGEU Green Bond Pool and of the allocated proceeds; and
- An update of the expected and realised climate impacts for the quantifiable parts of the expenditures in the NGEU Green Bond Pool.
What impact metrics are you reporting on?
The report shows the climate impacts of measure financed by NGEU Green Bonds proceeds. These climate impacts are quantified through specifically developed methodologies, translating output from financed measures (e.g., MWh of solar panel capacity installed, km of railway upgraded) into GHG emissions avoided presented in tons of CO₂ equivalent per year of emissions avoided.
The Commission thereby aims to present the direct, positive climate impact that can be reached through investments in NGEU green bonds.
What assurance can be given on the robustness of the analysis presented in the NGEU Green Bonds Allocation and Impact report?
The impact methodologies presented in the report rely heavily on methodologies available in academic literature. Information on allocation and realised impacts have also been subject to a limited assurance report by an independent auditor. The report complements information provided by the Commission in its regularly updated NGEU Green Bonds dashboard.
Estimates presented in the report are based on an overall conservative approach. For example, concerning measures related to the financing of both wind and solar renewables, if no precise information about the share of each type was available, the measure was assumed to be a pure solar panel measure, which represented a more conservative approach for climate impacts.
The Commission is committed to providing regular updates on realised climate impacts, with future reports continuing to address methodological constraints, ensuring transparency in reporting.
For More Information
NGEU Green Bond Impact and Allocation report
NextGenerationEU green bond framework
Press release on the NextGenerationEU Green Bonds Annual Allocation and Impact Report