Description
Description
The EU Sustainable Finance Advisory Hub – An EU-led Initiative under the Global Gateway
Being a global leader in sustainable finance and green bond issuance, the European Union is launching a far-reaching and transformative initiative to provide high-quality technical assistance to partner countries. This effort aims to support the development of robust sustainable finance frameworks and green bond markets, while driving investments aligned with the objectives of the Global Gateway strategy, the Sustainable Development Goals and the Paris Agreement.
The European Union, in close cooperation with development agencies, multilateral development banks (MDBs), development finance institutions (DFIs) and international organisations, has embarked on a coordinated effort to mobilise EU expertise and resources in support of sustainable finance in low- and middle-income countries.
Through the EU Sustainable Finance Advisory Hub, the EU and its co-funding and implementing partners, support the provision of technical assistance to help partner countries develop sustainable finance frameworks to help cross-border capital flows for sustainable investments.
This is an EU-led Initiative under the Global Gateway, the EU’s strategy to narrowing the global investment gap worldwide.
Key areas of partnership – The 3 Pillars
Harnessing the power of sustainable finance through the Hub's collective experience
The Hub aims to provide support to partner countries along three thematic areas (“Pillars”):
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Pillar 1 Credible Sustainable Finance Frameworks
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Pillar 2 Support for Green Bond Issuances under the Team Europe’s Global Green Bond Initiative (GGBI)
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Pillar 3 Advancing other sustainability-related financial products
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Objectives
The EU Sustainable Finance Advisory Hub aims to scale up and better coordinate technical assistance on sustainable finance in low- and middle-income countries. The Hub aims to provide high-quality technical assistance that supports the development of sustainable finance frameworks and standards. This includes taxonomies, sustainability disclosure requirements, as well as the issuance of green and sustainability bonds, in line with international best practices and building on the EU experience.
Technical assistance for green and sustainability bond issuance will be provided in alignment with the Global Green Bond Initiative (GGBI). The GGBI’s objective is to facilitate the flow of private capital from institutional investors into climate, environmental and sustainable projects in EU partner countries, thereby increasing their access to capital. In addition to technical assistance, the GGBI includes a dedicated de-risked fund, designed to act as an ‘anchor investor’ by purchasing bonds and crowding in private investors. The initiative will also provide targeted subsidies to reduce the cost of capital for eligible issuers, focusing on those facing prohibitive interest rates in the market.
Furthermore, under the EU Sustainable Finance Advisory Hub, the EU is actively participating in and promoting global initiatives to advance sustainable finance. These include the Roadmap for Advancing Interoperability and Comparability of Sustainable Finance Taxonomies, which aims to improve interoperability of taxonomies worldwide, and the Sustainable Finance Taxonomy Mapper, an online tool that will provide a dynamic deep-mapping comparison and benchmarking of multiple sustainable finance taxonomies.
Beneficiaries
The Hub will accompany a variety of stakeholders in low- and middle-income countries in International Partnerships - INTPA, Enlargement - ENEST, and Middle East, North Africa and Gulf - MENA regions.
Pillar 1 target beneficiaries comprise of public sovereign authorities and market authorities responsible for policymaking in the area of sustainable finance or with regulatory capacity.
Pillar 2 target beneficiaries are sovereign, sub-sovereign and corporate entities that aim to issue green, or sustainability bonds aligned with the Global Green Bond Initiative.
Sources of Financing
To date, the total financial allocation of the EU Sustainable Finance Advisory Hub amounts to approximately EUR 77 million, coming or expected to come from the following funding sources:
- European Commission – Neighbourhood, Development and International Cooperation Instrument (NDICI) Global Challenges – Partnerships: EUR 12 million + 15,2 million
- European Commission – Neighbourhood, Development and International Cooperation Instrument (NDICI) – European Fund for Sustainable Development Plus (EFSD+) Technical Assistance: EUR 37.6 million
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Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ): EUR 12 million
Implementing partners
Pillar 1:
- AFD- Agence Française de Développement
- GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit
- UNDP - United Nations Development Programme
- UNEP-FI - United Nations Environment Programme Finance Initiative
Pillar 2: coming soon
Hub Background documents
- The EU Sustainable Finance Advisory Hub (action document)
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Infographic – The Global Green Bond Initiative
Related links