• Track 03
• SDGs

The Basque Sustainable Bonds is a financing initiative launched by the Basque Government to support projects that contribute to the region’s long-term sustainable development. By connecting territorial priorities with global capital markets, the initiative provides a framework for identifying, financing, and monitoring projects over time.

Since the first issuance in June 2018, the Basque Government has completed nine annual bond issuances, raising €5.7 billion as of early 2026. The bonds put into practice the long-term vision set out in the Bilbao Blueprint, turning strategic priorities into funded investments.

A Governance Framework for Long-Term Planning

The Sustainable Bonds are supported by the fiscal framework established under the Basque Economic Agreement, which gives the region authority to manage, levy, and collect most of its own taxes.

Combined with a governance model based on long-term strategic planning, monitoring systems, stakeholder dialogue, and democratic participation in setting priorities, this framework supports both the region’s long-term development objectives and its ability to provide confidence to investors.

Long-term roadmaps, including Klima 2050, the Industry Plan 2030, and the V Basque Inclusion Plan, extend across multiple electoral cycles, helping maintain continuity in policy commitments. Established in 2025, the Basque Financial Alliance further strengthens this approach by bringing together banks, cooperatives, industry, and institutional investors around shared strategic goals.

Financing Eligible Sustainable Projects

The bonds are issued under a Sustainability Bond Framework aligned with the ICMA Green and Social Bond Principles. The funds raised can only be used for projects already included in the General Budgets of the Basque Government that meet established green or social eligibility criteria.

Projects are selected by a Sustainability Bond Committee, which includes representatives from the departments of Treasury, Environment, Health, Education, and Economic Development. Each department carries out an ex-ante impact evaluation of its proposed projects before they are included.

To support transparency and accountability, the government publishes allocation and impact reports within twelve months of each bond issuance. These reports include indicators such as greenhouse gas emissions avoided and the number of beneficiaries reached, while the overall framework is subject to independent third-party review.

Measuring Impact

The Sustainable Bonds include a system for monitoring their social and environmental impacts over time. Each bond issuance is assessed against a range of indicators, including housing support and scholarships provided to eligible households and students, healthcare assistance for vulnerable population groups, jobs created, greenhouse gas emissions avoided, and participation in environmental education programmes.

Supporting Long-Term Regional Development

The Basque experience illustrates how long-term planning, supported by a strong governance framework, can help attract investment while ensuring that financial resources remain aligned with the region’s development priorities and territorial needs.