EU-driven government schemes are 'cannibalising' sovereign green bond projects

Decline in global GSS bond issuance

Valeria Martinez
clock • 2 min read

EU-driven schemes are reducing the pool of available projects to be financed by sovereign issuers’ green bond programmes, which poses a risk to European sovereign issuers, a new report has found.

The Green, Social and Sustainability-linked (GSS) bond report by MainStreet Partners showed that EU government programmes, paired with long permission times, are "cannibalising" some green bond projects that would otherwise be financed through sovereign green bonds. The study found that without a greater growth in the number of available green projects, this may lead to a smaller universe of fundable green projects for governments to fund. As a result, governments may find it less necessary to issue its own green bonds to fund these projects, which could lead to a decrease in issuance...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Bonds