Our response to the consultation on the establishment of an EU Green Bond Standard

05 October 2020

Consultation response

Finance Watch welcomes the Commission reaffirmed commitment to establish an EU Green Bond Standard (EU GBS) in line with the objectives of the Green Deal.

We are pleased to contribute to this consultation seeking further input of a technical nature from relevant stakeholders. Our key messages are:

  • We support the Commissions’ intention to put forward a legislative proposal for an EU GBS.
  • EU GBS should be mandatory and introduced into the EU law through a regulation.
  • Bonds issued in the EU should not be permitted to use the notion of an EU Green Bond unless they comply with the EU GBS.
  • Key elements of the framework (e.g. use of proceeds) should be included in a prospectus to make it legally binding. A consideration should be given to putting forward a specific proposal for an EU GBS prospectus.
  • EU green bonds should be forward-looking, financing new green assets and activities rather than re-finance the existing ones.
  • Consider a mandatory verification of the environmental impact report.

More details in our full response (PDF)