Proposal for a Regulation on European green bonds

Author (Corporate)
Series Details COM (2021) 391
Publication Date 06/07/2021
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Legislative initiative tabled by the European Commission on 6 July 2021, establishing a voluntary standard for bonds aimed at financing sustainable investment - the so-called European Green Bond Standard (EUGBS). This is a text with EEA relevance.

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The proposal lays the foundation for a common framework of rules regarding the use of the designation European Green Bond for bonds that pursue environmentally sustainable objectives within the meaning of Regulation (EU) 2020/852. It also sets up a system for registering and supervising companies that act as external reviewers for green bonds aligned with this framework. The designation shall be available to all issuers that meet the requirements of this draft law.

The proposed Regulation aims to better exploit the potential of the Capital Markets Union (CMU) to contribute to meeting the European Union's climate and environmental goals (as set by the European Green Deal). It is aimed at facilitating further development of the market for high-quality green bonds, while minimising disruption to existing green bond markets and reducing the risk of greenwashing.

This draft law was tabled by the European Commission on 6 July 2021 alongside a Communication setting out a new strategy for financing transition to sustainable economy. The Council of the European Union adopted its general approach on 13 April 2022.

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Commentary and Analysis
Politico, 05/07/2021: EU green bonds won’t meet the bloc’s own high standards
Reuters: Explainer, 06/07/2021: EU throws weight behind new standard for green bonds
European Trade Union Institute (ETUI): News, 08/07/2021: The European green bond standard: a good initiative hanging in the balance
Freshfields Bruckhaus Deringer, 12/07/2021: The proposed EU Green Bond Standard - will this transform the market for green bonds?
Bruegel: Blog, 13/07/2021: The EU green bond standard: sensible implementation could define a new asset class
Ashurst: News & Insights, 20/07/2021: European Commission Proposes EU Green Bond Standard Regulation
White & Case: Alert, 23/07/2021: The new EU Green Bond Regulation – Fortune Green or Fortress Green?
S&P Global: Insights, 29/07/2021: Proposed EU standard seeks to bring clarity to ballooning green bond market
Federation of European Securities Exchanges (FESE): Blog, 13/09/2021: FESE Position Paper on the Proposal for a European Green Bond Standard
Nordea: News & Insights, 01/12/2021: ECB calls for mandatory EU Green Bond standard
European Banking Federation (EBF): Position Paper, 08/12/2021: Proposal for a regulation on European Green Bonds: EBF position
European Parliament: Briefing, January 2022: European green bonds: A standard for Europe, open to the world
London School of Economics (LSE): Business Review Blog, 17/01/2022: The European Central Bank’s vision for green bond standards forgoes inclusivity,with%20the%20green%20bond%20market.
Moody's Analytics: Regulatory News, 19/01/2022: ECB Issues Opinions on Green Bonds Standard and CRR Proposals
Linklaters: Sustainable Futures, 26/01/2022: ESMA letter to co-legislators on proposed EU Green Bond Standard
Hertie School: Jacques Delors Centre: Policy Brief, 15/02/2022: Turning green into gold - How to make the European green bond standard fit for purpose
Oxford University: Business Law Blog, 20/04/2022: Towards a European Green Bond Standard: What Is Needed to Be Fit for Purpose

Euronews, 06/07/2021: EU unveils 'gold standard' sustainable finance strategy to cut greenhouse gas emissions
Reuters, 06/07/2021: EU launches green bond framework to help it meet climate goals
The Irish Times, 06/07/2021: McGuinness says opportunities for Ireland in new EU green bonds standard
Delano, 07/07/2021: Brussels unveils EU green bond framework

EUR-LEX: SWD(2021)181: Staff Working Document accompanying the Proposal - Impact Assessment Report
EUR-LEX: SWD(2021)182: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment
European Parliament: Legislative Observatory: Procedure File for Proposal on European green bonds (2021/0191(COD))
European Parliament: Legislative Train Schedule: Establishment of an EU Green Bond Standard
European Commission: European green bond standard
European Commission: Press Release, 06/07/2021: Commission puts forward new strategy to make the EU's financial system more sustainable and proposes new European Green Bond Standard
European Commission: Questions and Answers: European Green Bonds Regulation (6 July 2021)
European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the New Sustainable Finance Strategy and a European Green Bond Standard (6 July 2021)
European Commission: Remarks by Commissioner McGuinness at the press conference on the New Sustainable Finance Strategy and a European Green Bond Standard (6 July 2021)
EUR-LEX: OJ C 27, 19/01/2022: Opinion of the European Central Bankon a proposal for a regulation on European green bonds (CON/2021/30)
Council of the European Union: Press Release, 13/04/2022: Sustainable finance: Council agrees its position on European Green Bonds

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