Île-De-France Mobilités Lists First EU Green Bond

Île-de-France Mobilités has made history in sustainable finance by becoming the first public sector issuer to list an EU Green Bond under the newly enforced European Green Bond Standard (EuGB). Euronext Paris announced the inclusion of the €1 billion green mobility bond to officially admit to a significant move for financing the ambitious green mobility projects across the Île-de-France region. The move forms part of ambitious climate plans envisioned for the Europe continent. Such a development brings to limelight the emerging power of responsible investments.

The proceeds of this historic issue will be invested in the process of decarbonizing the massive transportation network within the region that caters to 9.5 million commuters daily. This capital will largely be used in the replacement and upgrading of electric trains, metros, trams, and e-bikes, as well as in the building of sustainable transport infrastructure and other carbon-free mobility projects in the region. It forms part of the overall strategy of having a totally carbon-free transport system by 2030.

Valérie Pécresse, President of the Île-de-France region and chair of Île-de-France Mobilités, said the issuance of the bonds was important: "Revolutionizing transport in Île-de-France has been my top priority.". The transport system has to take the lead in tackling the climate challenge, becoming a benchmark for decarbonized mobility by 2030. It is something that first is the public issuer in launching a €1 billion Green Bond under the EuGB Standard at the same time - it's something great and tangible that speaks of the strength of our vision, she said.

The new EU Green Bond Standard, effective since December 21, 2024, is significant as it provides demanding requirements for the issuance of green bonds. This standard seeks maximum pre- and post-issuance transparency concerning truly sustainable activities so that the money funds these activities genuinely. ESMA plays a crucial role in ensuring compliance within the standards but can now give credibility to this green finance market and help prevent greenwashing.

This standard introduction reflects the commitment of the European Union to the fight against climate change and support for sustainable development through strict financial regulations. Through aligning green investments with the EU Taxonomy, a broad classification system that defines sustainable activities, the standard ensures that investors can rely on the environmental credibility of green bonds. This makes them more confident and invest in larger projects aligned with the climate and energy targets of the EU.

Euronext Paris, hosting this historic listing, has once again confirmed its leadership in sustainable finance. In this case, the role played by the stock exchange in promoting the issuance of green bonds represents a commitment to supporting environmentally responsible financial products and contributing to the broader sustainability agenda.

As one of the pioneer public issuers of an EuGB, embracing this standard makes Île-de-France Mobilités lead the way, proving that, through innovative finance, the Île-de-France region could address climate issues. Transportation significantly contributes to carbon emissions, which means transforming that sector is also essential for accomplishing climate targets.

The issuance of bonds is an important part of the most ambitious transport renewal program that Europe has undertaken, which promises to fully decarbonize a system by 2030. This will be achieved through rolling stock upgrade to electric alternatives, modernization of infrastructure, and expansion of carbon-free mobility options such as e-bikes. The approach is holistic, with the benefits ranging from reduction of emissions to enhancing the quality of public transportation services for millions of commuters.

Such a successful bond issuance would spur other public entities and private companies to do likewise, providing an expedient growth in support of sustainable finance and infrastructure development across Europe. With the EuGB Standard in place, investors now have a clear framework with which to evaluate the environmental impact of their investments, driving towards a greener and more sustainable financial landscape.

As the first to apply the new green bond framework, Île-de-France Mobilités opens up an important path for public sector organizations to use innovative financing mechanisms for pressing climate challenges. This bold step reaffirms the role of sustainable finance in meeting Europe's climate objectives and marks the strength of collaborative work between public entities, financial markets, and regulatory authorities.

The success of this initiative will be a model for other regions and countries to try to decarbonize their transport systems and achieve the global climate targets. With this initiative, Île-de-France Mobilités is taking the lead in adopting the EU Green Bond Standard and will definitely position itself at the forefront of the sustainable transport revolution and be an example to follow for others.