MEPs have approved a new voluntary standard for the use of the “European Green Bond” label, the first of its kind globally. The standard establishes uniform criteria for issuers seeking to market their bonds as “European green bonds.” It aims to provide investors with confidence in directing their funds towards sustainable technologies and businesses, while also supporting the EU’s transition to climate neutrality. Companies adopting the standard must disclose information about how bond proceeds will be used and demonstrate their commitment to a broader green transition. The regulation also introduces rules for external reviewers of European green bonds to ensure transparency and manage potential conflicts of interest. The standard aligns with the EU’s taxonomy framework, defining environmentally sustainable economic activities. The adoption of this standard is expected to boost the green bond market and contribute to a sustainable economy.
Resource: https://esgnews.com/eu-approves-worlds-first-standard-to-define-green-bonds/