The European Green Bond Regulation anchors sustainable finance momentum in a period marked by increased geopolitical complexities and economic volatility. Investor demand for sustainable finance instruments continues to show strong resilience, as underscored by the recent Morningstar report showing fixed income funds inflows. In this context, the European Union Green Bond Standard (EU GBS) is contributing to the continuous development of the sustainable capital markets by offering a new standard designed to further improve transparency and comparability, while further elevating the recognition of the green bond market.
The EU GBS introduces a harmonised and regulated framework for issuers who choose to label their green bonds as European Green Bonds (EuGB). While the green bond market to date has largely relied on the voluntary ICMA Green Bond Principles*, the EU GBS sets out formal requirements, including for project eligibility (aligned with the EU Taxonomy), enhanced and standardised pre- and post-issuance disclosures, and regulatory oversight via the European Securities and Markets Authority (ESMA). As a result, the EU GBS represents a significant step toward a more consistent and robust sustainable finance ecosystem.
BNP Paribas has played a leading role in the development of the EuGB market by actively supporting the first four EuGBs issued across the public, corporate, and financial sectors—helping issuers tap into sustainable capital and enabling investors to identify high-quality green investments.
Landmark EU GBS Transactions
Île-de-France Mobilités’ Pioneering Public Sector European Green Bond
As the first public sector issuer under the EU GBS, Île-de-France Mobilités raised €1 billion to fund sustainable passenger transport initiatives, including electric buses and active mobility infrastructure. The transaction attracted strong investor demand, with final orderbook 6 times oversubscribed. BNP Paribas supported the transaction as co-ESG Structuring Bank and joint lead manager.
A2A’s Corporate Market First under EU GBS
Italian utility A2A became the first corporate issuer to adopt the EU GBS, raising €500 million to finance energy transition and circular economy projects. BNP Paribas acted as joint bookrunner. The bond drew strong interest, with €2.2 billion in orders.
ABN AMRO’s Financial Sector Milestone
ABN AMRO became the first financial institution to issue an EU GBS-aligned bond, raising €750 million to support green buildings and renewable energy. BNP Paribas served as joint bookrunner. This issuance underlined the regulation’s framework’s applicability across sectors.
EIB issued first Supranational European Green Bond
The European Investment Bank (EIB) issued its first Climate Awareness Bond aligned with the European Green Bond Standard (‘EuGBS-aligned CAB’), raising €3 billion with outstanding investor demand—generating an orderbook exceeding €40 billion. This was the largest European Green Bond issued to date and the first from a supranational issuer. The related pre-issuance factsheet was the first to be audited with Reasonable Assurance, the highest level of assurance. BNP Paribas acted as joint bookrunner on this flagship transaction, which will be allocated to EIB’s lending activities targeting the objectives referred to in the EU Taxonomy Regulation. The transaction delivers on EIB’s long-standing strategy of gradual alignment with the EU Taxonomy and EuGBS. The size and quality of the orderbook underlined the market’s recognition of EIB’s strategic approach.
Agnes Gourc, Head of Sustainable Capital Markets at BNP Paribas, commented:
“We view the EU GBS as an evolution rather than a revolution. Of course, it moves the market from a best-effort, principles-based approach to a regulated framework grounded in the EU taxonomy. This creates a new level of clarity and accountability that is valuable for the market. However, it is inspired by the ICMA principles and as such is very complementary.”
“As a bank, we are proud to help issuers prepare for and bring to market this new type of green bonds by conducting gap analyses, building internal capacity, and structuring EU taxonomy-aligned instruments that answer investor and regulatory requirements, showcasing once again how green bonds can contribute meaningfully to the energy and environmental transition.”
* BNP Paribas has been an elected member of the Executive Committee of the Principles since 2016