The regulation approved by the European Parliament:
The European Parliament has finally adopted a new standard for the voluntary use of the “green bond” label, the first of its kind in the world.
The regulation establishes uniform rules for bond issuers who wish to use the designation “European Green Bond” or “EuGB” in marketing their securities.
The new rules will enable investors to direct their funds towards sustainable technologies and companies with greater confidence. This should increase interest in this type of financial product and support the EU’s transition to climate neutrality.
Conditions:
All companies that choose to adopt the EuGB label when marketing green bonds will be required to comply with a series of measures, including the disclosure of relevant information on how the proceeds of the bond will be used.
They will also be required to develop a strategy for the company’s green transition and demonstrate how these investments contribute to its achievement.
The standard establishes a framework for monitoring European green bonds with external auditors, who are independent entities responsible for evaluating compliance with the rules.
When will it be effective?
The regulation will come into effect in a few days, following its publication in the Official Journal of the EU.
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