EU Strikes Landmark Deal to Fight Greenwashing in Bond Market
- Talks had stalled at the end of last year over scope of deal
- Market is currently shaped by a mix of voluntary guidelines
This article is for subscribers only.
European Union negotiators reached a deal to establish a green bond standard, giving investors long-awaited clarity that their money is aligned with the region’s climate ambitions.
Companies that use the standard will have to prove that the proceeds from their green bonds are in line with the bloc’s list of environmentally friendly activities, known as the taxonomy. They will, however, get a 15% “flexibility pocket” for activities that aren’t yet covered by the rulebook, according to the terms of the agreement reached by EU lawmakers and member states.