European Investment Bank and UN Green Climate Fund Sign First Financing Agreement to Support Climate Action in Developing Countries

European Investment Bank and UN Green Climate Fund Sign First Financing Agreement to Support Climate Action in Developing Countries

(IN BRIEF) The European Investment Bank and the United Nations Green Climate Fund have signed their first financing agreement, enabling the GCF to commit €200 million to the Global Green Bond Initiative Fund. The fund, managed by Amundi, is a flagship programme under the EU’s Global Gateway strategy and aims to reach a target size of €3 billion while mobilising up to €20 billion in private capital for sustainable infrastructure projects in low- and middle-income countries. The initiative is designed to support green bond markets in developing countries by combining investment, technical assistance and measures to reduce borrowing costs for issuers facing high interest rates. The agreement strengthens cooperation between the EIB, GCF, European Commission and Amundi, with a focus on expanding climate finance for sectors such as energy, transport and sustainable infrastructure in emerging economies.

(PRESS RELEASE) Luxembourg, 5-Jun-2026 — /EuropaWire/ — Climate action in emerging markets is set to receive stronger backing through the first financing agreement between the European Investment Bank and the United Nations Green Climate Fund. The agreement enables the Green Climate Fund to invest €200 million in the Global Green Bond Initiative Fund, a major European Union-backed programme designed to expand sustainable finance in low- and middle-income countries.

The Global Green Bond Initiative Fund is a public-private investment vehicle targeting a total size of €3 billion. Managed by Amundi, Europe’s largest asset manager, the fund is intended to help mobilise up to €20 billion in private capital for sustainable infrastructure projects in developing countries.

The agreement marks a significant step in strengthening multilateral climate finance and expanding the role of green bond markets in emerging economies. By supporting green bond issuance and helping reduce investment risks, the initiative aims to channel more capital into climate-related projects in key sectors such as energy, transport and sustainable infrastructure.

EIB Vice-President Ambroise Fayolle said the partnership with the Green Climate Fund demonstrates how international cooperation can increase the scale of climate action in countries where support is most urgently needed. He added that the cooperation will help promote sustainable growth, resilience and improved living standards in low- and middle-income countries.

Amer Baig, Chief Investment Officer ad interim of the Green Climate Fund, said the GCF’s €200 million equity investment will help de-risk investments in 10 emerging economies. He noted that the funding is designed to support country-led green projects delivering climate solutions in critical sectors, including energy and transport. He also described the Global Green Bond Initiative as a landmark partnership with the European Commission and the European Investment Bank that will strengthen country ownership of climate action and help close important climate financing gaps.

Valérie Baudson, Chief Executive Officer of Amundi, said the creation of the Global Green Bond Initiative Fund and the GCF’s first major commitment demonstrate the potential of blended finance investment solutions. She said the fund aims to bring together public and private capital to support the climate transition in emerging markets, describing this as one of the defining challenges of the current era. Baudson added that expertise, innovation and collaboration are essential to directing capital where it is most needed.

The European Investment Bank is an accredited entity of the Green Climate Fund, the world’s largest dedicated multilateral climate fund. The new financing agreement highlights the shared commitment of both organisations to supporting climate action in low- and middle-income countries through multilateral cooperation and innovative financing models.

The Global Green Bond Initiative is one of the flagship initiatives under the European Union’s Global Gateway strategy. It is structured around three complementary pillars. The first is the GGBI Fund, which is designed to mobilise private capital for sustainable investments in developing countries through green bonds. The second is a technical assistance programme that will share European expertise and help issuers in partner countries design and issue green bonds and related projects. The third is the Green Coupon Subsidy Facility, which aims to reduce borrowing costs for issuers facing particularly high interest rates, enabling partner countries to expand their participation in the green bond market and raise capital for climate-focused development.

Global Gateway is the European Union’s strategy for promoting smart, clean and secure connections in digital, energy and transport systems, while also strengthening health, education and research systems worldwide. The strategy supports high-quality investments that meet strong environmental, social and governance standards, with a focus on sustainability, transparency and long-term benefits for partner countries and communities.

The EIB Group is the financing arm of the European Union and is owned by the 27 EU Member States. In 2025, the Group signed €100 billion in new financing and advisory services for more than 870 high-impact projects across priorities including climate action, digitalisation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, global partnerships and the savings and investments union.

EIB Global, the EIB Group’s specialised arm for international partnerships and development finance, plays a central role in supporting Team Europe and the Global Gateway strategy. Through its global presence, EIB Global works with people, companies and institutions to strengthen the impact of international development finance.

The Green Climate Fund supports developing countries by mobilising and delivering climate finance at scale, strengthening institutions and promoting transformative climate action. It serves as the primary operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change and supports implementation of the Paris Agreement. The fund has committed more than USD 19 billion across 134 developing countries through adaptation and mitigation projects.

Amundi is Europe’s leading asset manager and ranks among the world’s top 10 global players. A subsidiary of Crédit Agricole Group and a listed company, Amundi manages close to €2.4 trillion in assets and serves more than 200 million investors. With investment hubs in Paris, London, Dublin, Milan, Tokyo and San Antonio through its strategic partnership with Victory Capital, Amundi combines global investment capabilities with a strong commitment to responsible investment.

EIB Group  

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.

Photos of the EIB Group’s representatives and headquarters, logo files and video B-roll for media use are available here.

EIB Global

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international win-win partnerships and development finance, and a key partner of Team Europe and the Global Gateway strategy. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

About GCF

GCF is the world’s climate fund for developing countries, mobilising and delivering capital at scale, strengthening institutions and supporting transformative change, and bringing together our extensive partnership networks to deliver impact. GCF is mandated as the primary operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and serves the 2015 Paris Agreement. To fulfill its role in supporting global climate ambition, GCF is focused on delivering high-impact climate finance at scale, underpinned by a country-owned approach focused on system-wide change.The fund has over USD 19 billion committed across 134 developing countries through a wide range of adaptation and mitigation projects.

About Amundi

Amundi, the leading European asset manager, ranking among the top 10 global players^[1], offers over 200 million investors a complete range of savings and investment solutions in active and passive management, in listed and private assets. Developed for a range of distributors (banks, wealth managers, financial advisors…) as well as for institutional investors and corporates, this offering is enhanced by services and technology tools covering the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages close to €2.4 trillion of assets^[2]. Its six international investment hubs^[3], its financial and extra-financial research capabilities and its long-standing commitment to responsible investment make Amundi a leading player in the international asset management landscape. Thanks to a strong local presence, particularly in Europe and Asia, Amundi’s clients benefit from the expertise and advice of 5,400 professionals across 34 countries.

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+352 4379 – 83045

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SOURCE: European Investment Bank