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The European Parliament new Green Bonds Standard

Image via Lifefinance.com.sg

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.

First of all, it will aim at identifying highly polluting industries that use unjustly the EuGB label. This will happen by make sure that external reviewers of the EuGB  have  less conflicts of interests. The companies that will  not comply with the authorities will be denied from issuing bonds.

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. 

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