With a view to deploying the new financing needed to meet the Paris Agreement targets in the EU, Amundi and European Investment Bank (EIB) are signing a partnership to launch the Green Credit Continuum investment programme.
The goal is to ensure better access for European companies and green projects to market financing to speed up their energy transition. It aims to raise €1bn within three years, including a €60m initial commitment by the EIB.
The Green Credit Continuum program aims to foster the development of the green debt market beyond the existing green bonds, supporting small-scale green projects, and financing SMEs and mid-caps.
Signed at the Paris Europlace 2019 international financial forum, the agreement between Amundi and the EIB has three components. Firstly, it covers the creation of a diversified fund that will invest in green high yield corporate bonds, green private debt and green securitised debt. In parallel, a scientific committee of green finance experts will be formed to define and promote environmental guidelines for these three markets in line with international best practice and legislation derived from the European Commission action plan on financing sustainable growth. Lastly, a green deal network will be put in place to source deals and projects.
EIB vice-president Ambroise Fayolle said: "When the EIB issued the world's first green bond in 2007 as part of its "Climate" bonds programme, it made a major contribution to the development of this market. However, despite this fast growth, a significant financing gap persists and huge potential is still waiting to be tapped in some green debt segments. Signing this programme with Amundi will help promote sustainable finance in Europe by including new issuers in the green finance market, making them even more aware of environmental issues and environmentally friendly investments."