IEEFA – Green Bond European Power Generators, June 2024

Europe's leading utilities have a history of issuing green bonds to support their renewable energy projects and transition to cleaner energy sources. The report focuses on 12 key European power generators that have shown a commitment to sustainable financing and are preparing to align with the upcoming European Green Bond Standard (EUGBS). While these utilities have made progress in reporting on their green bond allocations and impacts, there is a need for greater transparency and alignment with the EUGBS to enhance credibility and coherence with their renewable energy strategies. The report highlights the crucial role of the electric power generation sector in Europe's transition to a more sustainable economy and notes that the growth in green bond issuance is expected to continue in line with EU renewable energy targets. The utilities under study are among the largest green bond issuers in the sector and have strong frameworks in place to govern their green bond issuances. By adhering to the EUGBS and improving their reporting capacity, these utilities can demonstrate their commitment to lower transition risks and contribute to the net-zero transition. Moreover, advanced players in the sector are already making significant strides in quantifying their impacts and delivering green assets.