7 November 2023
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A Guide to the European Green Bond Standard

To The Point

An article providing an overview of the recently adopted European Green Bond Standard including the requirements issuers must comply with to be able to use the standard and how the standard is to be supervised. The article will be useful for issuers, investors and other stakeholders as it discusses the standard and the possible advantages as we transition to net zero.

Green bonds have stolen the limelight in the field of ESG finance. Half a trillion dollars of green bonds were issued in 2022, and the volume of ESG investment products continues to expand. In what may be the largest change to debt capital markets in some years, the adoption of the European Green Bond Standard by the EU now looks to provide a regulatory framework on a previously self-governing asset class.

The standard was first announced as part of the European green deal investment plan in January 2020, as part of the EU's plan to direct financial and capital flows to green investments. The rapid growth in the number of issuances of green bonds has increased demand for standardisation to clamp down on "greenwashing": where a company  conveys false information on the environmental impact of its product or practices.

The European Council has adopted the EU Green Bonds Regulation (the Regulation) on 23 October 2023 and this is expected to take effect at the end of 2024 following publication in the EU's Official Journal.

The EUGB Regulation
Use of proceeds: keep it clean, keep it green
Disclosure Requirements
Reviewers, Supervision and Sanctions
Summary: The Green rush, The Gold standard

To the Point 

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