Updated: October 2019
The Green Bond Standard should be fully aligned with the taxonomy and the requirements under the Regulation
on disclosures relating to sustainable investments and sustainability risks, as well as other applicable
legislation. Furthermore, any encouragement or incentives should not induce distortive effects on the market,
which would ultimately weaken the credibility of the EU green bond standard. Particular attention should be
taken to avoid disruptions to existing, well-functional markets for green bonds. The EU Green Bond Standard
could be a useful reference in the loan market,
harmonising concepts and definitions. Green bonds
issued before the EU Green Bond Standard
should benefit from a form of grandfathering in
order to avoid disruption on the market.
The EU Commission initiative is most welcome.
However, it must be ensured that the EU Green
Bond Standard is a functional tool – like the
taxonomy – ensuring comparability, uniformly
applicable without discrepancies or distortive
effects. The expected timeframes for the application
of the EU Green Bond Standard, on one hand,
and of the taxonomy on the other, may therefore
In this context, initial flexibility would be welcome,
but universal applicability, functionality and
comparability in particular should be ensured.
There should not be differences in terms of overall
applicability and usability of the standard between
different sectors. Otherwise, the standard will
effectively steer investment into certain assets,
while failing to have a larger impact on the market
as a whole.
In May 2018, the Commission announced – as one important part of its Action Plan on Sustainable Finance –
the development of an EU Green Bond Standard. Green bonds are necessary to foster the financing of green
or sustainable projects. To enable a level-playing field for all issuers and investors, the EU Green Bond Standard
should enhance transparency, consistency and comparability of EU green bonds. The Commission also plans
to adopt a delegated act on the content of the prospectus for green bond issuances. This should create new
opportunities for responsible investors (private and institutional) and help avoiding “greenwashing”.