The euro is the dominant currency for green bond issuance however the EU lacks a consistent set of requirements for the financial instruments.
BRUSSELS– The European Union is thinking about financial incentives to assist spur the growth of the green-bond market, according to an assessment on an EU Green Bond Standard launched Friday.The euro is the dominant currency for green bond issuance however the EU does not have an uniform set of standards for the financial instruments.Advertisement The European Commission is now canvassing public opinion on the details
of an official EU green bond requirement, developed by a skilled group, in an effort to drive more personal cash into green financial investments to fulfill the bloc’s climate objectives.”This assessment is about finding out what the EU and its Member States can do to support and
incentivize the development of a large-scale and high quality green bond market, “stated Commission Executive Vice President Valdis Dombrovskis.The professional group’s basic counts on the EU’s taxonomy, which lists what counts as a green investment.It proposed using
proceeds, or how the cash raised in a bond problem is then invested, ought to be lined up with the taxonomy.Companies releasing green bonds would face obligatory reporting requirements and external verification that the cash is being used for sustainable projects.The Commission also asked participants for their views on financial or alternative rewards for providing companies or investors.The alternatives drifted consist of public guarantee schemes at an EU level or easing green bonds from prudential requirements.It also asked respondents whether existing bonds need to lose the green label if they fall nasty of morphing meanings of what counts as
green. Respondents have up until Oct. 2. Source