Proposal for a Regulation on European green bonds

Summary:

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.

Further information:

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.

• Primary Source

Commentary and Analysis

Politico, 05/07/2021: EU green bonds won’t meet the bloc’s own high standards https://www.politico.eu/article/eu-green-bonds-wont-meet-the-blocs-own-high-standards/

Reuters: Explainer, 06/07/2021: EU throws weight behind new standard for green bonds https://www.reuters.com/business/sustainable-business/eu-throws-weight-behind-new-standard-green-bonds-2021-07-06/

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News

Euronews, 06/07/2021: EU unveils 'gold standard' sustainable finance strategy to cut greenhouse gas emissions https://www.euronews.com/green/2021/07/06/brussels-unveils-gold-standard-bond-to-boost-private-investment-in-green-transition

Reuters, 06/07/2021: EU launches green bond framework to help it meet climate goals https://www.reuters.com/business/sustainable-business/eu-launches-green-bond-framework-help-it-meet-climate-goals-2021-07-06/

The Irish Times, 06/07/2021: McGuinness says opportunities for Ireland in new EU green bonds standard https://www.irishtimes.com/business/innovation/mcguinness-says-opportunities-for-ireland-in-new-eu-green-bonds-standard-1.4613240

Delano, 07/07/2021: Brussels unveils EU green bond framework https://delano.lu/article/brussels-unveils-eu-green-bond

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Official

EUR-LEX: SWD(2021)181: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:181:FIN

EUR-LEX: SWD(2021)182: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:182:FIN

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 https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3405

European Commission: Questions and Answers: European Green Bonds Regulation (6 July 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_3406

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) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3506

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) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3522

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