In an effort to solidify the European Union’s position as a leading market for sustainable finance, the European Commission has adopted the EU Green Bond Standard (EU GBS). This new standard is anticipated to serve as the ‘gold standard’ for green bonds around the globe.
The Commission’s latest move is part of its Sustainable Finance Action Plan, which aims to promote the growth of sustainable finance and direct capital towards sustainable growth. The adoption of the EU GBS strengthens these objectives, bringing us one step closer to a more sustainable future.
The EU GBS, highly anticipated for its potential, promises a more stringent standard of green investing. With its implementation, the Commission looks towards reinforcing the EU’s position as the leading market for sustainable finance. Its impact on global green bond markets will present considerable changes for both issuers and investors.
Further details on the implications of this new policy can be found here, in an article written by the international law firm Latham & Watkins LLP.