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France Seeks Greater Flexibility for Spending EU Green Bond Cash

  • French presidency of EU floats compromise on green bonds
  • Looser conditions on bloc’s alignment with standards envisaged

France, the world’s top green bond seller, is seeking greater flexibility for spending money from environmental debt, setting up a potential collision with European Union lawmakers trying to make the region’s rules more stringent.

The country, which holds the EU’s rotating presidency, has proposed sellers no longer have to shift their spending mid-way through the term of a bond should the EU’s green rulebook change, according to a document sent to national governments and seen by Bloomberg News. It also wants to allow 20% of proceeds to be spent on activities not yet included within technical screening criteria, up from 15% under current proposals.