Climate finance: GSS+ bonds rally € 186 m since 2023: EU

Sri Lanka’s Green, Social, Sustainability, and Sustainability-Linked (GSS+) bond issuances have rallied € 186 million or Rs. 85 billion since 2023, in part with the financial support of the European Union (EU), the official website to the EU said on Thursday (7), in a statement on the EU-funded Green Recovery Facility.

"As a result, recent GSS+ bond issuances have mobilised approximately Rs. 85 billion (EUR 186 million), financing priority sectors, including renewable energy, energy efficiency, water and coastal resilience, and inclusive social infrastructure. Several of these issuances were oversubscribed, reflecting growing market demand.”

Since 2024, the Sri Lankan Government has maintained that the island nation would need roughly between $ 11.26 billion to $ 12 billion in foreign direct investment to support its transition into 70% renewable energy dependence by 2030. 

According to the National Climate Finance Strategy 2025-2030, the Sri Lankan Government plans to raise $ 11.26 billion through Sovereign Green and Blue Bonds in the next four years to finance renewable energy, biodiversity conservation, and other climate-related projects aligned with its 2050 carbon net-zero target.

This Green bonds progress made under the EU-funded Green Recovery Facility, implemented by Expertise France, is said to have facilitated investment opportunities in sustainable energy, circular economy, climate action, and sustainable finance, in addition to helping the government and businesses identify key actions, while stimulating innovation and unlocking public and private-sector investment, the statement by the EU said.

“Since 2023, this EU-funded support, implemented by Expertise France, has contributed to improving market frameworks, enhancing institutional capacity, and building investor confidence in Sri Lanka’s sustainable finance landscape."

The statement further added: "In line with its Global Gateway strategy, the European Union (EU) is fostering green investment in Sri Lanka, and in this context supports the development of the green bond market to channel private finance into climate‑resilient, sustainable projects.”

The facility statement said that Sri Lanka’s regulatory environment has since been strengthened with the introduction of the GSS Bonds Regulatory Framework in 2025, enhancing its position within international capital markets. 

Source: The morning