Blog

6 July 2021

EU green bond standard: Europe’s next move to help finance sustainable projects By Vita Ramanauskaité

With the European Green Deal, the European Commission (EC) sets Europe on a path to become climate neutral by 2050. This is in line with the Paris Agreement objectives and reflects the EU’s contribution to the global fight against climate change.

Achieving this objective will require massive investments. Green bonds (GB) are one of the financial instruments that can help channel funds towards environmentally friendly projects. The interest towards green bonds is growing; but the lack of standards and definition of what ‘green’ really means is a source of uncertainties for issuers and investors. How do we ensure green bonds truly finance green projects?

Our publication Building a credible Green Bond market presents the accountancy profession’s views on how to strengthen the confidence in the green bond market. In light of the European Union Green Bond Standard (EU GBS) proposal, we recommend to:

  • establish a mandatory EU GBS to ensure it is consistently applied in the market
  • set up a centralised European accreditation system for external assessment, building on existing national schemes and processes
  • require reporting on green bonds and on actual environmental impact at regular intervals
  • ensure third-party independent assurance is obtained on allocation and environmental reports
  • align the EU GBS with the EU Taxonomy

The EU Green Bond Standard (GBS)

Today the EC released its Renewed Sustainable Finance Strategy and proposal for an EU GBS. A credible, commonly accepted standard will bring value to the market and harmonise how green bonds are issued.

Investors should be able to trust the green bond market. Transparency and standardisation are key to facilitate efficient markets. Ultimately, EU citizens and their future depend on how the EU will design and put into practice its strategy towards climate neutrality. This includes practical implementation of the EU Green Bond Standard.

Related content

EventHow to build a credible green bond market

1 December 2021

Consultation responseEU Taxonomy and Article 8 Delegated Act implementation need clarity

17 November 2021

Consultation responseIASB’s Exposure Draft: Management Commentary and EFRAG’s Draft Comment Letter

15 November 2021

NewsTime to deliver on high quality sustainability reporting

12 November 2021

UpdateSustainability

4 November 2021

PublicationFAQs on sustainability information assurance

3 November 2021

PublicationNon-audit services and auditor’s independence

2 November 2021

Podcast There’s no creation like co-creation: sustainability reporting standards

28 October 2021

EventAccountancy Europe and WBA joint expert meeting on sustainability reporting standards

21 October 2021

EventMembers’ Engagement Day

20 October 2021

EventEarly Warning Europe Day

28 September 2021

NewsReporting Beyond the Financials: Sustainability on the Books

24 September 2021

Consultation responseEC’s proposal of an EU standard for green bonds

22 September 2021

UpdateSustainability

14 September 2021

Consultation responseEFRAG’s consultation paper – due process procedures for EU sustainability reporting standard-setting

14 September 2021

PublicationSustainable tax system: taxes and the environment

31 August 2021

Consultation responseIFRS Foundation’s Exposure Draft: Proposed targeted amendments to the IFRS Foundation constitution to accommodate an...

22 July 2021

NewsCall for dialogue: assessment of SMEs’ post-COVID financial health

19 July 2021

NewsA 360 view on Sustainable Corporate Governance

14 July 2021

Consultation responseIASB’s third agenda consultation, EFRAG’s draft comment letter and own proactive research agenda consultation

13 July 2021

Sign up for our newsletter

* indicates required
Would you like to subscribe to our newsletter?
On which topics would you like to receive news?