European Green Bond Standards

A green bond is a type of fixed-income financial instrument specifically designed to raise capital for projects that have positive environmental or climate-related impacts. Green bonds serve as a pivotal component of green finance, a vital instrument in financing assets crucial for the low-carbon transition. With the European Green Bond Standard, the EU aims to establish a definitive benchmark for green bonds. This voluntary standard utilizes the detailed criteria of the EU taxonomy to define green economic activities, ensuring transparency in line with market best practices. Additionally, it mandates supervision of companies conducting pre- and post-issuance reviews at the European level.