Europe faces a large climate investment gap. This column proposes filling this gap through the joint issuance of European climate bonds. These bonds would be funded by selling greenhouse gas emission allowances via the Emissions Trading System extended to all sectors. Access to the resulting funds would be conditional on countries’ implementation of climate projects. Such European climate bonds would meet the demand for a safe, liquid, and green asset, while accelerating climate investment, increasing EU resilience to sovereign crises, and greening both investors’ portfolios and monetary policy. […]