Image via Lifefinance.com.sg
The European parliament has proposed the EU Green Bond Standard.
A stated by MEPs, the EU Green Bond Standard aims at “better regulate the green bond market, improve its supervision, reduce greenwashing, and add clarity when money goes to gas or nuclear”.
This regulation will bring a series of benefits.
The standard will require stronger transparency in allocating proceeds to nuclear energy or fossil gas related activities. Now a statement must appear prominently on the first page of the EuGB Factsheet.
In conclusion, the European Green Bond Standard wants to put an end to greenwashing and finally going towards a more sustainable economy.
The EU has remarked how crucial the Green Bonds are in financing assets needed for the the low carbon transition, and how yet, there is no uniform green bond standard within the EU.
