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EU’s Gold Standard in Green Will Command Biggest Debt Premiums

  • Bloc’s rulebook requires mandatory impact reporting, reviews
  • Investors will pay up for ethical quality, greater security

Even in the world of green bonds that often command a premium over conventional debt, Europe’s securities are expected to be in a league of their own.

Debt issued under the European Union’s self-proclaimed “gold standard” rulebook unveiled this week is likely to command greater prices than others following different sustainable frameworks, according to NatWest Markets Plc and Nordea Asset Management. The bloc’s rules require mandatory impact reporting and external reviews, extra effort that will mean cheaper borrowing costs as investors pay up for ethical quality.