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Bank That Pioneered Green Bonds Warns EU Plan Needs Sweeteners

  • SEB sees firms turned off by need to align with EU’s taxonomy
  • EU plans its green bond standard to become a ‘gold standard’

A proposed European Union standard for green bonds that’s designed to align investment with the bloc’s climate goals probably will fall flat without additional incentives for issuers, according to the bank that pioneered the instruments.

Christopher Flensborg, head of sustainable finance at Stockholm-based SEB AB, says meeting the requirements set forth in the EU’s rulebook creates additional risks for which companies won’t be compensated. That’ll make sticking with other existing global frameworks more attractive.