IEEFA – Green Bond European Power Generators, June 2024

This report focuses on Europe's electric power generation sector and the increasing use of green bonds among European utilities to support the transition to a more sustainable economy. The growth in green bond issuance is expected to continue due to EU renewable energy targets and the significant investment needed for the net-zero transition. The report evaluates 12 major European power utilities as key green bond issuers and assesses the quality of their green bond instruments. It also discusses the upcoming European Green Bond Standard (EUGBS) and how utilities can better manage transition risks by aligning with this standard. The report highlights the benefits of the EUGBS criteria in clarifying the use of proceeds and emphasizes that European utilities can enhance their reporting capacity at a relatively low cost to improve their commitments and reduce transition risk.