The EU's Gold Standard– the Final EU Green Bond Standard Has Landed but What Does it Mean for the Green Bond Market

Abstract

the eu’s gold standard – the final eu green bond standard has landed but what does it mean for the green bond market? the eu’s gold standard – the final eu green bond standard has landed but what does it mean for the green bond market? the eagerly anticipated agreed eu green bond standard regulation (the “regulation”) has finally been published, 5 years after the standard for environmentally sustainable bonds in europe was first envisaged by the european commission in its 2018 sustainable finance action plan. the regulation looks much more like the original eu commission proposal from 2021 than the more radical proposal put forward by the european parliament in 2022. in summary: • the regulation is a voluntary standard that can be used by issuers of green use of proceeds bonds where the proceeds are fully allocated in accordance with the eu taxonomy regulation1 (the “taxonomy regulation”). • bonds issued in accordance with the regulation can use the label “european green bonds” or “eugb”. • issuers of european green bonds must prepare pre-issuance and post-issuance reports which are subject to a review by an external reviewer. issuers may also obtain an external review of post-allocation impact reports. • a new supervisory regime administered by the european securities and markets authority (“esma”) is established for those external reviewers who issue reports in relation to european green bonds. • national competent authorities are granted supervisory powers to sanction and …

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